Stress at Home Spills Over to the Workplace
We've heard a great deal lately about the gas prices, the economy, sub-prime mortgages and the like - all bad. I suspect we've also seen the level of stress at work increase as employees carry over the stress from their personal lives into the workplace. As gas nears $4.00/gallon here in New York, everyone is beginning to tabulate the cost of going everywhere - $10.00 round trip to work, $5.00 to the mall, etc. Doesn't appear to be much relief in sight in the near future. So, hold onto your hats as things unravel a bit at work!
Worker's Bring Economic Stress into the Office
Super Bowl Monday "Flu" - 1.5 Million to Call in Sick
I recently received a media inquiry regarding Super Bowl Monday which I blogged about last year. The premise is that there will be a loss of productivity as a result of what I'll call "Super Bowl Flu." So this year I decided to do a little research and found that there actually was a survey conducted this year and the conclusion of the survey is that "an estimated 1.5 million U.S. adults may call in sick to work the day after the Super Bowl."
To make matters even more interesting, it is estimated that use of technoloy bandwith will surge as employees (well, at least those that actually go to work) look for game related coverage on the web.
So the next study should be this: Let's calculate all of the people who will talk about the game on Monday, all of those who will surf the net to look for web coverage and those who will call in sick. Then will add a calculation for lost productivity for discussions, football pools and the like which will take place prior to the game and tally that all up. Gee, with all this loss of productivity - why don't just make it a Federal Holiday?!
Posted By Diane Pfadenhauer In Trends | Permalink
Thanks to Technology, Workplace Gossip Flourishes
Years ago, the water cooler or the company break room/cafeteria was the place their employees got their information - typically in the form of gossip. Now, with the proliferation of technology in the workplace - through instant messaging, PDA's cell phones, email, etc. - workplace gossip has the capability of traveling more furiously and faster. This article claims that employees get their dirt from:
- the office break room (36%),
- at a co-worker's desk, workstation or office (33%),
- through e-mail or instant messaging (10%).
- only 1% of employees say they head to the water cooler to learn what's really going on.
Small Firms Tend to Underuse HR
This survey shows a troubling statistic among small and midsized businesses - that they tend to underutilize HR departments. Specifically:
- smaller companies consider their HR departments as a separate arm of their business rather than integrating the functions into their day-to-day operations.
- while survey respondents said finding and recruiting talent was their biggest HR challenge, less than 33 percent employed a HR director.
- Among other findings, less than 10 percent of respondents listed training, performance management and compensation planning as their biggest HR challenges, and no respondents cited HR compliance as an area for improvement.
- finding and retaining people was a top concern, while employee management, coaching and leadership development were critical.
77% of Americans Hate Their Jobs
A recent Gallup survey concluded that 77% of Americans hate their jobs. According to
Time, a relatively new book discusses the 3 signs of a miserable job. I haven't read the book , but the summary provided by Time provides an interesting discussion a a few good points. Specifically, the three signs are:
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Anonymity - when employees realize their manager has little interest in them a human being.
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Irrelevance - when employees can’t see how their job makes a difference in the lives of others.
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Immeasurement - the inability of employees to assess for themselves their contribution or success. Therefore, they must rely on the subjective opinions of others, usually their managers, to gauge their progress or contribution.
Jobs With the Highest Percentage of Drug Use
With some recent talk of claims that many employees use drugs, I recently stumbled upon a list of the occupations with the highest rate of drug use. A study by the Substance Abuse and Mental Health Administration (SAMHSA), which looked at current drug use among 21 major occupational groups from 2002 through 2004, found that an annual average of approximately 9.4 million current illicit drug users and 10.1 million heavy alcohol users were employed full-time during that period.
The groups with the highest percentage of drug use among full time workers: The groups with the lowest prevalence of current drug use among full-time workers were:
So if you're not doing drug testing now, it might be something to think about.
Workaholism, the New Addiction
A recent article in USA Today notes that more and more Americans have turned to self-help groups to deal with their addiction to work. The article cites the adverse effects of over-work: poor health, destruction of friendships, the harm to spouses or children. In addition, research shows a growing number of these extreme workers, driven to long hours on the job because of new technology, globalization and today's intensified business pressures. Some statistics cited:
- A study in the December issue of Harvard Business Review provided new information on the rise in workaholics: Of extreme job holders, 48% say they are working an average of 16.6 more hours per week than they did five years ago.
- About 60% of high-earning individuals work more than 50 hours a week; 35%, more than 60 hours; and 10%, more than 80 hours. Add a typical one-hour commute, and a 60-hour week means leaving home at 7 a.m. and returning at 9 p.m. five days a week. Using the definition of extreme worker, the researchers found about 20% of high earners surveyed have extreme jobs.
- Extreme workers are defined in part as working 60 hours or more a week and have characteristics such as an unpredictable work flow, fast-paced work under a tight deadline, responsibility for profit and loss, a large number of subordinates and a lot of travel.
Working Under the Influence of Alcohol
According to a research study by the University of Buffalo, approximately 15% of the workforce is working under the influence of alcohol on the job.
The Research Institute on Addictions has studied addictions since 1970 and a research center of the University at Buffalo since 1999.
Those interviewed were asked:
- how often during the previous year they drank alcohol within two hours of reporting to work and how oftern they drank during the workday, worked under the influence or worked with a hangover
Based on those responses, the study estimates that:
- 2.3 million workers (1.8 percent of the workforce) have consumed alcohol at least once before coming to work
- 8.9 million workers (7.1 percent of the workforce) have drank alcohol at least once during the workday.
- 2.1 million workers (1.7 percent of the workforce) worked under the influence of alcohol
- 11.6 million workers (9.2 percent of the workforce) worked with a hangover
Some additional findings:
- workplace alcohol use and impairment was more prevalent among men compared to women.
- working under the influence of alcohol or with a hangover was more prevalent among younger workers compared to older workers and among unmarried workers compared to married workers.
- among the broad occupation groups showing the highest rates of workplace alcohol use and impairment were the management occupations, sales occupations, arts/entertainment/sports/media occupations, food preparation and serving occupations, and building and grounds maintenance occupations.
- workers on the evening shift and night shift and those working a nonstandard shift involving irregular or flexible work hours were more likely to report drinking before coming to work compared to workers on a regular day shift. Those working a nonstandard shift were also more likely to use alcohol during the workday and report being at work under the influence of alcohol.
March Madness and the Workplace
We are now in the throes of March Madness, where the final 64 teams in College basketball play throughout the next few weeks until only one emerges at the top of the heap. While flipping through the latest edition of Time Magazine a few interesting statistics were quoted:
- According to the FBI, the amount wagered on the NCAA men's basketball tournament this year will be $2.5 Billion.
- The estimated loss of productivity in the workplace for American employers will be $1.2 million.
Take a look. Posted By Diane Pfadenhauer In Policies & Procedures , Trends | Permalink
Title Inflation, Grade Inflation, What's Next?
Patricia Kitchen highlights a recent review of job listings that she conducted and noted the startling number of "Chiefs." Seems that we are experiencing a bit of title inflation here. It used to be that there was one Chief, the CEO. Now everyone has to be a president or a chief. Seems that vice president just won't do. According to some of the comments in the Newsday article she authored, the the title of Chief signifies either that the position is important or that the buck stops with the chief - i.e. more accountability.
This all seems ridiculously absurd to me. Kind of reminds me of one of my corporate jobs when one of my fellow "VP's" was complaining that his office did not have the same number of ceiling tiles as a colleague. I once had a job interview at a relatively small employer where everyone who ran a department was called a President.
In academia, we complain about grade inflation, that all of the students want an "A" and that we are diminishing the quality of education. Aren't we doing the same here? Remember the saying about Vice Presidents in banks? Why do we need fancy titles to make us accountable? Isn't it really just to stroke our egos?
I just can't wait until Patricia comes up with the list of Assistant Chiefs, the Associate Chiefs, oh, and then there will be the Senior Chiefs!
Posted By Diane Pfadenhauer In Trends | Permalink
Skin Color Affects Hiring
According to a recent article in USA Today, skin color can affect salaries. According to the article a Vanderbilt University professor studied a government survey of 2,084 legal immigrants to the United States from around the world and found that those with the lightest skin earned an average of 8% to 15% more than similar immigrants with much darker skin. Additional findings include:
- being one shade lighter has about the same effect as having an additional year of education.
- taller immigrants earn more than shorter ones, with an extra inch of height associated with a 1% increase in income
- the skin-color advantage was not due to preferential treatment for light-skinned people in their country of origin. The bias occurs in the U.S.
U.S. - Not so Family Friendly
According to a study by Harvard University and McGill University, the United States lags many other countries when it comes to family friendly polcies in its workplaces such as maternity leave, paid sick days and support for breast-feeding. In addition:
"workplace policies for families in the United States are weaker than those of all high-income countries and many middle- and low-income countries. Notably, it says the U.S. is one of only five countries out of 173 in the survey that does not guarantee some form of paid maternity leave"
Some of the findings also include:
· Unlike the U.S., fathers are granted paid paternity leave or paid parental leave in 65 countries, including 31 offering at least 14 weeks of paid leave.
·At least 107 countries protect working women's right to breast-feed
·At least 145 countries provide paid sick days, with 127 providing a week or more annually.
Sadly, we will most likely resort to legislation instead of innovative policies and procedures in order to accomplish the same results. Posted By Diane Pfadenhauer In Trends | Permalink
Walmart's Flexible Work Schedules
No, it's not what you're thinking. WalMart hasn't become employee-friendly. According to the WSJ, Walmart "...using a new computerized scheduling system, will start moving many of its 1.3 million workers from predictable shifts to a system based on the number of customers in stores at any given time. The move promises greater productivity and customer satisfaction for the huge retailer but could be a major headache for employees."
This concept, sometimes called "labor optimization" is an attempt by companies to use sophisticated software to efficiently plan their schedules so that they can be adequately staffed when customers need them, and not over-staffed when there are few customers around. One company that uses this method is Radio Shack - remember them - they're the ones that fired 400 employees via email.
While it may be good for the company, skimping here and saving a few dollars there, it is not likely to be beneficial to employees. Employees may not know their schedules until the last minute, may be sent home early without advance notice, may have overtime reduced and miss the opportunity to plan time with their families.
Sounds great, but has anyone thought about the possible increased recruiting and retention expenses that companies will incur as they try to lure people into these unstable jobs? Also, what about productivity? Will it make firms more productive, or will employees resent the whole system?
Mileage Reimbursement Rates for 2007
The IRS recently announced the mileage reimbursement rates for 2007. Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
- 48.5 cents per mile for business miles driven;
- 20 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service to a charitable organization.
Thanks to the folks at Shaw Valenza for reminding me of this. Posted By Diane Pfadenhauer In Policies & Procedures , Trends | Permalink
2007 Benefit Plan Limits
The IRS recently announced the 2007 benefit plan contribution/benefit limits for 2007. Here they are:
| Contribution/Limit: | 2006 Limit | 2007 Limit |
| 401(k)/403(b) Contributions* | $15,000 | $15,500 |
| 457(b) Limit | $15,000 | $15,500 |
| Catch-up Contributions | $5,000 | $5,000 |
| Compensation Limit** | $220,000 | $225,000 |
| Highly Compensated Employees** | $100,000 | $100,000 |
| Key Employee Officer Compensation** | $140,000 | $145,000 |
| Maximum Annual Benefit - Defined Benefit Plan** | $175,000 | $180,000 |
| Maximum Annual Contribution - Defined Contribution Plans** | $44,000 | $45,000 |
| ESOP Limits- Dollar limit for determining lengthening of 5-year period* | $175,000 | $180,000 |
| ESOP Limits - Dollar amount for determining max. amount subject to 5-year distribution* | $885,000 | $915,000 |
| Maximum SIMPLE contribution | $10,000 | $10,500 |
| FICA Wage Base *** | $94,200 | $97,500 |
*Calendar year limitation
**For plan years beginning in the calendar year. The compensation limit and key employee officer compensation also apply for purposes of Code Section 409A.
***Calendar year limitation for FICA withholding purposes and for plan years beginning in the calendar year for retirement plan purposes.
Posted By Diane Pfadenhauer In Compensation & Benefits , Trends | Permalink
Workplace Violence Statistics from the BLS
The US Department of Labor's Bureau of Labor Statistics recently issued the results of a survey revealing the prevalence of workplace violence. The survey results available here, reveal several interesting statistics including:
- The prevalence of and various types of security organization have in place
- The specifics on the existence of and types of policies in place
In addition, follow these link to various governmental resources on violence prevention:
- The Centers for Disease Control's Risk Factors & Prevention Strategies on Violence in the Workplace
- the DOL's resources on violence prevention in the workplace.
- The DOL's website page on Workplace Violence
Posted By Diane Pfadenhauer In Trends | Permalink
The "Germiest" Jobs
Now that the paranoid in our offices are preparing to avoid colds this winter, this survey of the dirtiest jobs should be of interest. No, it's not the list from the television show we hear about. This list is apparently from a survey of germs sponsored by the Clorox Company. And since it's the Friday after Thanksgiving and time for some lighter fare, this should keep you looking for the Purell. From most germiest to least, here is the list, going from careers with the most to least germs on workspace surfaces:
1. Teacher
2. Accountant
3. Banker
4. Radio DJ
5. Doctor
6. Television producer
7. Consultant
8. Publicist
9. Lawyer
And where do all of those germs hang out? Phones, desks, computer keyboards, and computer "mice."
Thanks to Whatnot at Work for making us want to go wash our hands.
Posted By Diane Pfadenhauer In Trends | Permalink
2007 Benefit Planning
Health care costs increases for 2007 are predicted to be the lowest in years. According to Hewitt Associates, most health care plans should see an average cost increase of 7.7% in 2007. Despite this seemingly modest increase, it still outpaces inflation and employee salary increases. For example,
In 2007, Hewitt projects, salaried employees can expect a base salary increase of 3.7 percent.1 Therefore, an employee making $40,000 today who receives the average salary increase ($1,480) will use 16 percent of that salary increase to pay for the increase in health care costs next year.
A few metropolitan areas, however, will continue to see double-digit increases. These include San Antonio (13.1 percent), St. Louis (13 percent), Hartford (12.8 percent), Milwaukee (11.4 percent), Cleveland/Akron (10 percent) and San Francisco (10.5 percent). In addition, Hewitt expects the following increases by plan type:
- 7.0 percent for preferred provider organization (PPO) plans
- 8.0 percent for health maintenance organization (HMO) plans
- 9.0 percent for point-of-service (POS) and indemnity plans.
Scary to think that this is actually good news.
Posted By Diane Pfadenhauer In Compensation & Benefits , Trends | Permalink
Time to Polish That Resume
Statistically speaking, the months with the most layoffs are October, December and January. "Over the past 10 years, 9.7 million jobs were cut, 38 percent of which were announced in the last four months of the year." While there are doomsayers and optimists on both sides of the issue, I've seen organizations and industries, where they have moved very slowly in the summer months, jump right in to the fall months. Companies that have to suddenly figure out how to make their numbers by the end of the 4th quarter, companies that are over budget and looking to save here and there - all of this adds up to more job transitions. Add to that the likelihood that job seekers, who typically view the summer as dreadfully quiet, are likely to approach the fall with renewed vigor. My guess is that recruiters will be doing a lot of work, and outplacement firms will be doing their share as well.
Perils of the Graveyard Shift
The number of workers working the graveyard shift - between midnight and 8:00 am - is on the rise. The next time you run off to work in the morning to pick up that bagel, remember the person who was up all night so that you could have your morning meal. While many work the graveyard shift out of convenience, such as to accommodate family needs, it is not without its challenges. According to this Newsday article, the graveyard shift is often not as easy as we day workers might conclude:
- The divorce rate for night-shift workers is as much as six times higher than the rest of the population.
- Late shift work often leaves children without chaperones as children are often unsupervised by a sleeping parent.
- Even if night workers do get sufficient sleep, their sleep is of less quality than those of us who sleep at night. Because of our natural circadian rhythms, our body expects to sleep at night. When we reverse it, we may sleep, but not as deeply.
- Sleep apnea is twice as prevalent among night shift workers than the general population
- Night workers are 20% more likely to suffer a severe accident at work.
- 24 hours of sleep deprivation is equivalent to a blood alcohol level of .10.
- Some studies show a higher rate of cancer, heart disease, and gastrointestinal disorders.
Employer Sponsored Elder Care Benefits On the Rise
More and more employers are recognizing the need to deal effectively with our aging population by offering elder care benefits to their employees. According to one survey, caregiving issues cost employers $34 billion dollars annually in lost productivity. Some other interesting statistics:
- By 2020, one in three U.S. households is expected to be involved in caring for elderly or disabled relatives, up from one in four today
- About a quarter of all companies currently provide some basic elder-care benefits, mainly referrals that help employees find caregivers and legal services
- Some companies are adding such benefits even as they cut back in other areas, especially health-care coverage, where costs are soaring. Why? Because they are cost effective.
- leave sharing programs
- allowing employees to add an adult relative to the employer's health plan, such as an elderly parent
- state disability programs, such as in California, that allow for partially paid family leave
- emergency elder care services
Technology Addiction - Yet Another Reason to Sue?
Rutgers University recent issued a press release quoting a Rutgers prof who notes that:
"...the fast and relentless pace of technology-enhanced work environments creates a source of stimulation that may become addictive. While addiction to work has been a widespread phenomenon for some time, ...employers may face legal liability for these addictions."
In addition:
"...if an employer manipulates an individual’s propensity toward workaholism or technology addiction for the employer’s benefit, the legal perspective shifts. When professional advancement (or even survival) seems to depend on 24/7 connectivity, it becomes increasingly difficult to distinguish between choice and manipulation.”
How nice, another reason to sue....
Posted By Diane Pfadenhauer In Employment Law , Miscellaneous , Trends | Permalink
America's Most Dangerous Jobs
The Bureau of Labor Statistics publishes an annual survey of workplace deaths. The results of which reveal the most dangerous jobs - some of which will likely surprise you. The report, which excludes combat deaths, includes data on fatal work-related injuries by industry, gender, age and, especially, by occupation. According to the survey, the following were the most dangerous jobs with the corresponding death rate per 100,000 workers.
1. Fishers and fishing workers = 118.4
2. Logging workers = 92.9
3. Aircraft pilots = 66.9
4. Structural iron and steel workers = 55.6
5. Refuse and recyclable material collectors = 43.8
6. Farmers and ranchers = 41.1
7. Electrical power line installers/repairers = 32.7
8. Driver/sales workers and truck drivers = 29.1
9. Miscellaneous agricultural workers = 23.2
10. Construction laborers = 22.7
SHRM's Top 10 Human Resources Trends and a Few of My Own
The Society of Human Resources Management recently issued its Workplace Forecast for 2006. The report is published every 2 years by the society and represents the results of a survey of human resources professionals on such issues as demographics, economics, employment, international affairs, politics, society and science and technology. According to the survey, three major themes underlie the majority of the top trends:
- Rising health care costs
- Implication of increased global competitiveness
- Demographic changes (aging workforce and retirement of baby boom generation)
- Rising health care costs.
- Increased use of outsourcing (offshoring) of jobs to other countries.
- Threat of increased health care/medical costs on the economic competitiveness of the United States.
- Increased demand for work/life balance.
- Retirement of large numbers of baby boomers (those born between 1945 and 1964) around the same time.
- New attitudes toward aging and retirement as baby boomers reach retirement age.
- Rise in the number of individuals and families without health insurance.
- Increase in identity theft.
- Work intensification as employers try to increase productivity with fewer employees.
- Vulnerability of technology to attack or disaster.
- The economy here in the US. Our national debt is the biggest it has ever been, our all-voluntary military is over-committed around the world, and interest rates and energy costs continue to rise.
- Global issues - although Hezbollah and Israel were not bombing each other when the survey was taken, I think that continuing global conflict will have a significant impact on the workplace. The potential for terrorism to increase rather than decrease is real. Every good HR professional knows that animosity among groups often spills into the workplace. HR professionals will be confronted with the very real challenge of resolving these issues. Regarding the vulnerability of technology to attack or disaster, I'd be worried about the people too!
- The cost of energy - Its effect on commuting, the willingness of employees to commute long distances, and the demand by employees for flexibility. Skyrocketing energy costs have the potential to radically change the way we work and do business in this country.
- Last, but certainly not least - how will HR professional help their organizations remain competitive with these seismic transformations?
Part Time and/or Flexible Work Hours - A Growing Trend or Thing of the Past?
Newsday had an interesting article discussing the continuing firestorm surrounding the Nassau County District Attorney's recent mandate that all part time employees either beging working full time or resign. For those of you who have not been following this story, Kathleen Rice, Nassau's recently elected D.A. issued this mandate fairly recently claiming that since criminals don't work part time, her ADA's shouldn't either. She's been taking quite a few pot shots because of this. As a single person with no children, she's been accused of not appreciating the issues concerning working mothers. She also made the decision to change this long standing policy of her predecessor which permitted part time work - a policy that for all intents and purposes seemed to work.
I spoke to Carrie Mason-Draffen at Newsday last week who was writing an article on the subject and shared my views (some of which she kindly quoted at the end of the article). Seems to me that many law firms have adapted quite nicely to the concept of employees working part time. In fact, the article discusses one law firm here on Long Island that recegnizes many of the benefits. Bottom line - flexibility is something that employers will need to provide more of not less!
Posted By Diane Pfadenhauer In Policies & Procedures , Trends | Permalink
Summer R&R - Maybe Not
Many Americans will not be taking all of the vacation they are entitled to this year. According to a recent survey, about 43% of respondents said they would not be taking all of their vacation. 6 percent expect to use none; 20 percent expect to use fewer than half of their eligible days; and 28 percent expect to use more than half of their vacation days. While this survey is noted as being "unscientific," a few other articles support the findings. According to the results from the sixth annual "Vacation Deprivation" survey by Expedia.com, U.S. workers expect to abandon an average of four accrued vacation days in 2006, up from three in 2005.
Posted By Diane Pfadenhauer In Trends | Permalink
Say Goodbye to Retiree Health Benefits
The results of a survey of Fortune 500 companies by the consulting firm, Watson Wyatt, tells us that there is a growing trend for Fortune 500 companies to reduce or eliminate retiree health benefits. According to the survey:
- Ninety-five percent of the mostly Fortune 500 companies polled expect to further restrict their retiree health plans over the next five years, and 14% plan to stop providing coverage entirely.
- About a third of U.S. employers offered current workers retiree coverage in 2005, down from about two-thirds in 1988, according to a recent study by the non-profit Kaiser Family Foundation.
- According to Standard & Poor's, plans for retiree benefits at S&P 500 companies, excluding pensions, were underfunded by $321 billion, meaning promises to retirees are only 22% funded.
Ouch!
When Will the Cost of Family Health Coverage be More Than Your Salary?
Everyone thinks about the cost of health care in the United States and wonders if the increases will ever taper off. Joe Paduda over at Managed Care Matters has this post which was an eye opener for me. While, yes, I know health care is expensive and I understand compounding, but the thought of paying over $20,000 a year for family health coverage in a few years was eye-opening. I include his thought provoking comments here:
With family premiums (HMO and other plan types) hovering at the $11,000 mark, and rates increasing by, say, 7% per year, we'll have health insurance costs of $20,000 per family in ten years.
The 7% increase quoted is a wildly optimistic figure, as rates have increased at least 9% each year for the last five years. And, with the number of people without insurance increasing every year, further adding to cost-shifting to insureds; tighter eligibility requirements for Medicaid; and increased employee cost-sharing the middle class (read - voters) will be increasingly demanding action - and if the next presidential election does not have health care as a top theme, it will only be because of a horrendous natural or man-made disaster. Although one could reasonably consider the US health care system a man-made disaster, I'm thinking more on the order of foreign policy. What does this mean for you? More pain before our elected officials get their collective act together.
Joe makes a good point. This is a death spiral/perfect storm for our health system. Sometimes our leaders would have us think that social issues, with little economic consequence, are the most important issues facing the nation. The reality is that we all have differing opinions on many of those issues, but they should not cloud the reality that we have significant issues, such as health care, to face as a nation.
Corporate Blogging Trends
According to Jupiter Research, approximately 70% of large companies will have deployed corporate blogs by the end of 2006. So, even if you are not working for a "large" company, with that kind of proliferation, how many of you have a policy that addresses blogging?
Thanks to Micro Persuasion for the tip.
World Cup Soccer and the Workplace
While at lunch with my brother today, I got a lesson on the importance of the World Cup Soccer. Approximately 80% of the world's population will watch the games (WOW!) and this event is viewed as the largest sporting event int he world. Then I started thinking about worker productivity during the World Cup. Seems that the games will likely cost U.S. employers 10 minutes per day per worker for the 21 days of the tournament or about $122 million. While that seems like a lot of money, in other countries the numbers are far greater.
According to this article:
- One in ten employees in the UK will apply for sick leave.
- The World Cup will cost the British economy about $7.36 billion in productivity
- In Brazil, banks close and cities virtually shut down during big games by the Brazilian team
- In Italy, "...It shuts down completely...Everyone goes to bars or friends houses. Those that remain at work will still take off the two hours or so needed to watch the game on a television there."
How Private is Your Online Life
The New York Times recently reported on a growing trend for recruiters and companies to conduct an online search of candidates prior to hiring. According to the article:
"Many companies that recruit on college campuses have been using search engines like Google and Yahoo to conduct background checks on seniors looking for their first job. But now, college career counselors and other experts say, some recruiters are looking up applicants on social networking sites like Facebook, MySpace, Xanga and Friendster, where college students often post risqué or teasing photographs and provocative comments about drinking, recreational drug use and sexual exploits in what some mistakenly believe is relative privacy."
And we thought that we had to warn people about tattoos and body piercings. As lives become more and more public with details being disclosed by individuals on the internet onto these networking sites, undoubtedly there ends up being a conflict between what an employer may view as poor judgment and an applicant, such as a recent college graduate, viewing as just fun. When was the last time you Googled yourself?
Posted By Diane Pfadenhauer In Staffing, Recruitment, Selection , Trends | Permalink
Fourth of July Holiday Practices
This is one of those years when companies have to consider their options when planning the Fourth of July Holiday. Since the holiday falls on a Tuesday this year, some employers will be giving Monday and Tuesday off, while others will be giving only Tuesday off. This survey from my buddies at HRNY (the SHRM Chapter in New York City) shows that:
- 45.9 percent of respondents will give both Monday and Tuesday off
- 54.1 percent of respondents will be giving just Tuesday off
So, let me guess how many people required to work on Monday will really be working hard.....
The results of the HRNY Fourth of July Holiday Survey can also be found on their website.
Posted By Diane Pfadenhauer In Compensation & Benefits , Policies & Procedures , Trends | Permalink
Don't Think "It Can't Happen Here"
There has been a fair amount of press lately on things getting out of hand in the workplace and in sports. Recent coverage of the employee spanking at a training session and coverage of the Duke lacrosse scandal are only the tip of the iceberg. This story of yet another office prank which went a bit too far suggests that without the proper oversight, this kind of thing can happen anywhere, despite the belief by many that "it can't happen here." In addition, with all of the focus on Duke, this site (not for the faint of heart) shows that questionable behavior occurs in more places than you think.
As we conduct workplace investigations at my firm, we periodically find that the corporation has no idea that inappropriate behavior was occurring. The reality, however, is that remote locations, without proper oversight can develop cultures and mores of their own, some of which are not the type that the organization will want portrayed on the front page of the newspaper.
We all certainly did foolish things as kids in college. However, when this apparent lack of judgment spills over into the workplace, we often wonder what happened. The truth is that it is all around us and now is the time to start thinking about it and doing something before your firm ends up on the front page of the newspaper with people saying "what were they thinking?"
Posted By Diane Pfadenhauer In Policies & Procedures , Trends | Permalink
Health Benefits Planning: Now This Makes Sense
Some companies have begun to eliminate or reduce co-payments for prescriptions drugs for chronic ailments in their health plans. According to this article in the Boston Globe:
"Right now, this country's number-one approach to the high cost of healthcare is to make employees pay more... but cost sharing is a blunt instrument and the evidence actually shows that if you make people with chronic illnesses pay more, they stop buying the lifesaving things they need and companies wind up paying more."
In addition:
"Concerned about escalating health insurance premiums, Marriott International Inc. began eliminating co-payments on generic drugs for workers with chronic conditions such as asthma, diabetes, and heart disease last year. The benefit, for 75,000 US employees and their dependents, includes a 50 percent cut in co-payments for brand-name drugs."
It is not uncommon for someone who is fully insured with a chronic condition to take a half a dozen prescriptions. At $20 each and a spouse and children, all of these prescriptions add up. When money is tight, people are less likely to fill a prescription. Thankfully, at least some companies understand that a few bottles of statins cost far less than a quadruple bypass.
Posted By Diane Pfadenhauer In Compensation & Benefits , Trends | Permalink
Gas Prices and Telecommuting
The recent spike in gasoline prices and the prediction that prices will either remain this high for some time or even increase as the summer approaches has fueled an increase in telecommuting. Tonight, I filled up my tank for a trip tomorrow at $3.19 for regular unleaded. It was only $3.04 a week ago when I last filled up. The Christian Science Monitor has a comprehensive article discussing this trend toward telecommuting. According to the article, there are 26 million Americans that work from home at least one day per month. That notwithstanding, there still seems to be resistance based on the premise that the boss needs to be looking over employees' shoulders lest they goof off.
On the one hand, employees who are not in the office may miss the opportunity for impromptu meetings and chatter, but on the other hand they need not spend countless hours in the car in traffic. What do commuters do in the car while they're commuting? Talk on their cell phones, read their email - all things we know are inherently dangerous, but because we feel compelled to be available 24/7, traffic is perceived as wasted time and we respond by multi-tasking.
The article also offers these tips to handle requests for telecommuting and those considering requesting the option of telecommuting:
For Employees: Ask yourself: Do I have the self-discipline necessary to work at home with minimal supervision? Am I well organized? Does my job lend itself to telecommuting?
- If the answers are yes, prepare a written proposal for your manager. Outline specifically how the plan will work and how it will benefit the company.
- Indicate that it is often possible to be more productive at home, where there may be fewer interruptions than in the office.
- Assure your manager that you will be available for conference calls and meetings by phone.
- Suggest a trial period. If it doesn't work out, the arrangement will end.
- Be sure you have adequate technology at home, as well as appropriate work space. The kitchen table won't do.
For Managers: Weigh the pros and cons of telecommuting by asking:
- Does this employee have the right temperament to work alone?
- Am I willing to be open-minded and give the arrangement a chance to succeed?
- How will I keep in touch with telecommuters?
All of this will be much easier when we stop judging most of our employees by face time and focus on deliverable, measurable results.
Posted By Diane Pfadenhauer In Policies & Procedures , Trends | Permalink
Finally, a National Pandemic Flu Plan
The White House issued today a national plan to respond to a flu pandemic. For those interested in the details, here is the link to the Pandemic Influenza Implementation Plan. For those looking for the quick details as they apply to the workplace, here they are:
- It is estimated that up to 40% of the workforce could be out of work at one time - imagine the effect on productivity and the impact on your experience in your health plan.
- In order to prevent transmission in the workplace, the report suggests:
1) Advising those who are infected to stay home or do the normal things that are suggested with regard to avoiding colds - washing hands, covering nose and mouth when sneezing, etc.
2) People around individuals with influenza-like symptoms should maintain separation of at least 3 feet from that individual
3) Develop policies for isolating and excusing employees who become ill at work; allowing unscheduled leave for employees with ill household members; restricting business-related travel where appropriate; and establish return to work gudelines.
While these are fine recommendations, we all know that the burden will fall on the shoulders of human resources who will be asked to play germ police. So, now is the time to be putting your plan into place.
Posted By Diane Pfadenhauer In Trends | Permalink
The End of the Typical Workday
According to the WSJ today (registration required), evenings and weekends are becoming a growing part of workers' schedules. Interestingly, and according to the article, only about 30% of American workers have a typical 40 hour, Monday through Friday, 9 - 5 kind of job. I often wondered when I would take a day off from my corporate job what all those people were doing in the stores, thinking "don't they have to work?!" Now that I am a full time college professor and have my own firm, my hours are much more flexible. Unfortunately, the definition of flexible often means working all the time. However, I occasionally get to sneak away to handle mundane chores and/or errands during the weekday when lines are short and parking lots are empty.
I was having a conversation with a high level HR professional colleague a while back. He was describing to me his new boss. While he routinely makes himself available 24/7 if needed, his boss is still living in the dark ages, going so far as to keep a secret calendar indicating days that she suspects he has not "put in a full day." So when are we going to stop measuring productivity by face time and start measuring results? It's people like this (a VERY high level HR exec.) who give HR folks a bad name!
Posted By Diane Pfadenhauer In Trends | Permalink
Love is Bliss - But Only With Health Insurance
Yesterday's Wall Street Journal print edition published an interesting story on its front cover - the role of health insurance in online dating. According to the Journal:
"Health insurance is expensive, complex and bureaucratic. These days, it's also sexy. Right up there with washboard abs, a steady job and a fun-loving personality..."
"Those who have it sometimes flaunt it as an asset, a sign to potential mates that they are serious, professional and grounded. Others troll for partners with blue-chip policies because they need coverage themselves, or want evidence -- short of asking for a credit report -- that a prospect isn't a slacker."
It's a sad commentary that we used to take the existence of health insurance for granted. Although the article is seemingly comical, I think is demonstrates the sad truth that fewer and fewer can be complacent about their health insurance coverage. Posted By Diane Pfadenhauer In Trends | Permalink
Time Off Policies Undergoing Change
Employers have begun to rethink their time off policies and the trend is away from specific days off for specific reasons and toward more of a universal time bank. Under the universal time back theory, employees are given a set number of days to use for any reason they wish. They no longer need to classify the time as vacation, sick or personal.
This article goes on to suggest that more employers should be looking at policies in connection with disasters and disruptions, noting that most companies have no policies on this subject. That notwithstanding, in the face of disasters many companies are very generous, continuing pay as long as they can.
One of the big problems here is the seemingly inflexibility of our nation's wage and hour laws. If we dock an exempt employee who works at any point during the week, the Department of Labor will have a fit!
Posted By Diane Pfadenhauer In Compensation & Benefits , Policies & Procedures , Trends | Permalink
Auto Industry Benefit Changes
The automobile industry is finally waking up and adopting contribution schemes that most of us in the private sector have become familiar with over the years. Specifically:
-Chrysler will require contributions to health insurance on a sliding scale based upon income - "Top Chrysler executives, on average, will pay about $1,500 more per year for health insurance in 2007. Midlevel managers will pay about $450. Administrative employees will not pay anything additional in 2007, although their costs could go up in later years."
-Ford will now require employees who wish to cover their spouses to contribute more ($110/month) if their spouse is able to obtain coverage elsewhere. They are managing this on the honor system right now.
-According to a study done for Chrysler, Mercer Consulting noted that 19% of Fortune 500 companies use a sliding salary scale to determine health care contributions.
While the article quotes auto industry leaders as viewing themselves as "innovative," it seems to me that other industries and companies have been implementing these types of contribution systems for years.
Posted By Diane Pfadenhauer In Compensation & Benefits , Trends | Permalink
The Impact of Meth in the Workplace
After suffering with a miserable cold for several days I had run out of Sudafed. I went to my local drug store only to find that all of the Sudafed and generic knock-offs were behind the pharmacy counter, to be dispensed by the pharmacist. The reason? Meth. Seems that Sudafed and the like are used to make Methamphetamine - a highly addictive drug (called the "poor man's cocaine" by some). When I scroll through the channels on my television looking for something to watch, occasionally I have heard mention of the problem. Chalking it up to media hype, I often ignored the stories. After encountering the Sudafed police in the drug store the other day, however, I thought differently. This article discusses the impact of Meth on our society and the workplace. Note the following (some of which is attributable to a study at the University of Arkansas):
¬?each Meth user costs an employer an average of $47,500 annually
¬?the study examined the six major categories of cost Meth users impose on employers: Increased absenteeism, lost productivity, increased turnover, increased employee theft, increased worker compensation claims and increased healthcare premium costs
¬?Meth use has increased among U.S. workers by 86 percent over the past five years
¬?Meth addicts often bankroll their habits via credit card fraud, forgeries, commercial burglaries and robberies, and shoplifting cold medicines and other products used to cook the addictive chemical stimulant
According to the experts, users exhibit erratic and sometimes violent behavior as a result of staying awake for days on end. Imagine the impact we could have if we could, at a minimum, reduce the number of employees resorting to this dangerous drug - on our society and on our companies.
Posted By Diane Pfadenhauer In Trends | Permalink
Light Up and Pay More for Health Insurance
"Meijer, Gannett, American Financial, Pepsi and General Mills are among the companies already charging or planning to charge smokers higher premiums. The amounts range from about $20 to $50 a month. "And, according to Hewitt Associates, the trend has become so popular that it will begin tracking it in its annual benefits survey! Some interesting smoking-related statistics:
- a general benefits survey of 950 U.S.-based employers last year showed that at least 41% used some form of financial incentives or penalties in their health care plans.
- at least 8% to 10% of the businesses probably aimed some of the incentives or penalties at smokers.
- The Centers for Disease Control and Prevention estimates $92 billion in lost wages annually in the United States from smokers who die prematurely. In addition, the economic cost of smoking includes $75.5 billion per year in direct health care costs.
What to Do About Employees Who Lose Their ID Badges
Mac over at the Employment Law Bulletin has an interesting post about a company requiring employees who want access to a certain data center to allow a human implantable microchip to be implanted into their triceps. Yup, it's true. Now, I'm thinking about animals that could have been saved after the hurricanes in the Gulf region last summer, but employees??!! This opens the door to a whole host of issues, none of which I like. Now all the HR folks out there worrying about employees who lose their ID badges (and what to charge them for their carelessness) will be signing up for human implants!
Posted By Diane Pfadenhauer In Trends 1 Comments | Permalink
First Grader in the Hot Seat for Sexual Harassment at School
According to this article, a first grader at a Boston area elementary school has been suspended for sexual harassment. "...after he put two fingers inside a classmate's waistband, school officials told his mother, Berthena Dorinvil. The boy told her he only touched the girl's shirt after the girl touched him." Experts say only in rare, troubling cases can children that young truly sexually harass one another. Why? Because according to the experts, they don't understand what it is.
Posted By Diane Pfadenhauer In Trends , Weird News | Permalink
Public Pensions Rise While Private Pensions Fall
There has been a great deal of discussion of late regarding the trend in the private sector to scale back on pension and retirement offerings. This article discusses the opposite trend occurring in the public sector - an trend upward in pension and retirement benefits for public sector employees. According to the article:
- A December study of 85 big public pensions in all 50 states — covering three-fourths of public employees nationwide — found that governments continued to enhance benefit formulas, ease early retirement and improve other benefits from 2000 through 2004 despite states' financial problems. The increases were enacted on top of even larger benefit changes approved from 1996 to 2000. The study, conducted by the Wisconsin Legislature, is one of the most comprehensive on the issue.
- Average annual benefits for retired state and local workers grew 37% to $19,875 from 2000 to 2004, the most recent data available, according to the Census Bureau. The rising payments reflect the early retirement of baby boomers, who started to qualify for full benefits in 2001, at age 55, under most government pensions.
At the same time, "the portion of the private workforce enrolled in plans that pay monthly benefits for life has fallen from 39% in 1980 to 18% in 2004, according to the Employee Benefit Research Institute."
Seems to me that our elected representatives may be giving away the store, rather than dealing with reducing costs now. It's easier to give away something that will come due when you are not around to be responsible for it. On the other hand, private sector employees will continue to feel the consequences of reduced private sector retirement benefits as their tax dollars fund these lucrative public sector benefits.
Posted By Diane Pfadenhauer In Compensation & Benefits , Retirement , Trends 1 Comments | Permalink
Only in New York...
At about the time we learned that the transit workers had rejected their proposed contract by a mere 7 votes, the news that Wall Street bonuses set a new record of $21.5 billion for 2005 appeared. What a contrast.
Posted By Diane Pfadenhauer In Compensation & Benefits , Miscellaneous , Trends | Permalink
CEO Pay Rises 12% in 2005
The Christian Science Monitor published an article recently concerning the SEC's desire to promote more disclosure of CEO pay. The article begins with a host of extravagant perks available to CEO's. The bottom line, however, is that
"Such revelations of CEO compensation - a few among dozens of similar examples - have helped spur a drive to make corporate pay more transparent. [The SEC] is expected to require companies to provide more details about how they pay top honchos, including pumped-up pensions and weekend family picnics on Nantucket via the company jet....As a result, shareholders, watchdog groups, and publications such as Business Week should find it easier to tabulate a CEO's total compensation. And companies may also now have to give more details about what departing executives...will make once they leave."
From the perspective of employee engagement and communication, organizations need to be cognizant of the perception that these seemingly excessive perks and compensation packages can make. Employees who will average a 3.5% raise this year and pay more for their benefits do not want to hear about their bosses getting 12% increases and perks that are unrelated to performance.
Posted By Diane Pfadenhauer In Compensation & Benefits , Trends | Permalink
More on Big Brother
As a follow up to my previous post on NYC monitoring blood sugar levels of diabetics, Julie Ferguson at the Workers Comp Insider discusses companies using carrot and stick approaches to "encourage" employee wellness. Citing a recent article in Forbes, she notes how several companies have begun to implement requirements including requiring annual wellness assessments (or requiring employees to pay the highest contribution levels), smoker surcharges, and mandating physical exams for employees. In addition "at least four states -- Alabama, Georgia, Kentucky and West Virginia -- now charge higher premiums to state employees who smoke and lower premiums to non-smokers, according to the National Conference of State Legislatures."
It will be interesting to see if this trend continues. While it is important for employers to control spiraling health care costs, at what point will employers cross the line and penalize employees for conditions which result from a genetic predisposition as opposed to a condition or disease which resulted solely from lifestyle choices? It will get really interesting...
Posted By Diane Pfadenhauer In Compensation & Benefits , Trends | Permalink
January Blues
The most depressing day of the year is "officially" today, January 24th according to a recent post on The T&D Blog, citing research from Cardiff University. Seems that bad weather, all of that holiday debt, failed New Year's resolutions and the like lead to the doldrums, which peak on January 24th. All of this can lead to an increase in employee absenteeism. Notwithstanding the fact that it was about 60 degrees here in NY this weekend, I suppose that by about this time, we've fallen off of our diet and exercise plans, and the credit card bills have arrived. Look at it this way, there are only about eight and a half weeks until spring!
Posted By Diane Pfadenhauer In Trends 1 Comments | Permalink
Big Brother is Watching...
A recent article in the Washington Post informs us that New York City has begun to require testing laboratories to report the blood sugar levels of all patients whose blood is submitted for testing in order to track the prevalence of diabetes in the city.
"...the New York effort marks the first time any government has required routine reporting of laboratory test results for a major chronic, noninfectious disease so that government officials can scrutinize how well doctors and patients are treating it."
The problem here is that on the one hand we have laws in New York to protect lawful off-duty activity. Now we have the city of New York tracking blood sugar levels. Will they be knocking on the door next to remind us to exercise and watch our consumption of processed flour? And, what will happen with all of this data? Yes diabetes is an awful disease, but I suspect there are other ways to educate the public and eradicate these conditions in our population.
Thanks to Johannes Schenk of Schenk & Associates for bringing this to our attention.
Posted By Diane Pfadenhauer In Trends | Permalink
Martin Luther King Holiday Practices
Almost one third of businesses will recognize Martin Luther King Day as a paid holiday on Monday, January 16th. According to this survey, this continues the trend where more and more employers are choosing to recognize this holiday.
Posted By Diane Pfadenhauer In Policies & Procedures , Trends | Permalink
IBM Continues Trend of Freezing Pensions
IBM just recently announced that it will freeze is defined benefit pension plan as of 2008 for all of its existing employees. IBM follows in a continuing trend by other seemingly healthy employers who have chosen to freeze their existing pension plans and focus on their 401(k) plans. These include NCR, Circuit City (in 2004), Hewlett Packard and Verizon (2005) and now IBM in 2006. According to this article, quoting research by Watson Wyatt, 89% of Fortune 100 companies offered traditional defined benefit plans in 1985. By 2001, however, that number had fallen to just over 50% by 2004.
I suspect we'll likely see this trend continue. As a result, there will be more pressure on HR professionals to provide greater educational resources to employees as they assume more of the risks associated with planning for their own retirements.
Posted By Diane Pfadenhauer In Compensation & Benefits , Retirement , Trends | Permalink
Pfadenhauer's List of Top Workplace Events of 2005
There have been a few blog postings of late referring to events of the last year which are worthy of note. In that same theme, I decided to create my own list. Here is Diane's list of some of the more notable workplace happenings, trends and events of 2005 (OK, there's 29 of them, which has no rhyme or reason other than that's what came to me....). One more caveat - they're not in any particular order...
- The passing of management guru Peter Drucker
- The Supreme Court (finally) recognizes the disparate impact theory of discrimination under the Age Discrimination in Employment Act
- Katrina, Rita and Wilma
- Continued Erosion of Pension Benefits
- The NYC Transit Strike Settlement - Opening the door for union employee contributions to health insurance in the public sector
- The School District Scandals on Long Island - Roslyn, et. al., which opened the door to voter outcry and call for greater accountability
- Elliot Spitzer and his quest against insurance companies (among others) - resulting in, presumably, greater objectivity in the quoting of insurance premiums
- New COBRA regulations fully in effect (boring, yes, but most aren't thinking about it)
- New rules for nonqualified deferred compensation plans
- Expensing of stock options...
- This Blog won Best Recruiting Law Blog sponsored by Jobster and Recruiting.com
- New USERRA Regulations and poster
- Gas prices this past Fall - rethinking telecommuting
- The OFCCP finally decides what an applicant is!
- New York Security and Notification Act
- Family coverage for healthcare tops $11,000 annually
- Medicare Part D and trying to figure out what creditable coverage is...
- Social Security turns 70
- Mass defection of the Teamsters, SEIU and others from the AFL-CIO
- New I-9 Form Issued
- The Zubulake verdict after landmark rulings on what seemed to be a gazillion motions
- The Roth 401k
- California's Sexual Harassment Training Requirements for Managers by 12/31
- Baby Boomers are now protected by the ADEA
- SHRM finally woke up and set up RSS feeds for its website - too bad you have to have a password to access all that good information...
- Changes to Section 125 Plan "Use It or Lose It Rules"
- The new EEO-1 Form
- Changes to the New York City Human Rights Law
- New 401k Automatic Rollover Rules
Happy New Year everyone!
Posted By Diane Pfadenhauer In Miscellaneous , Trends | Permalink
Flexible Work Schedules Positively Impact the Bottom Line
Often those requesting flexible work schedules are labled as loafers more interest