Volume 2 : Issue 8 TM
www.HRprosMemphis.com
Preview of
2012 TN SHRM Conference
& Exposition
Cultural Values in
a Reform World
MS Workers Comp
Overhauled Do Employees
QUIT Because of Pay
?
EEOC’s
Beauty Bias 8 KEYS
to Strategic
HR Leaership
Greg Eller
Director of HR at CBU
MBGH 4th Annual Conference on Healthcare & Benefits
HR Professionals in HIGHER
Education
Bringing Human Resources & Management Expertise to You
REDUCE UNEMPLOYMENT COSTS UP TO
40% www.HRprosMemphis.com Editor
Cynthia Y. Thompson, MBA, SPHR Publisher
The Thompson HR Firm HR Consulting and Employee Development Art Direction
Park Avenue Design Contributing Writers
David Allen, PhD Grant Boucek Craig A. Cowart John Doran Joy Doss Voss Graham Joseph Ochipinti Jerold Ramos Julieanna Walker Board of Advisors
Austin Baker Jonathan C. Hancock Ross Harris, CFO, CFA Diane M. Heyman, SPHR John E. Megley III, PhD Terri Murphy Susan Nieman Robert Pipkin Michael R. Ryan, PhD
Features 4 Letter from the Editor 5 Profile: Greg Eller 6 HR Professionals in Higher Education 7 Top Educational Programs for HR Professionals 16 Managing Employee Turnover 26 Cultural Values in a Reform World 28 GreenTech Automotive Creates Jobs in Mississippi 34 New Feature! HR Pros News – Promotions & Achievements
Departments 14 Benefits: 401(k) Changes Will Help Employers Understand Their Company Retirement Plans 19 EEOC: It’s a Beautiful World – Does the EEOC Think It’s Too Beautiful? 22 HR Scene and Events Calendar 24 MBGH 4th Annual Conference on Healthcare and Benefits 30 How to Minimize Your Unemployment Costs 32 Leadership: 8 Keys to HR Leadership 33 MS Workers Comp Overhauled
WEBextras
JOIN Today
EXCLUSIVEACCESS HTTP://HRPROSMEMPHIS.COM/ EXCLUSIVES/
Book Look: The Power of Communication by Helio Fred Garcia The State of Tennessee Three Pillars of HR Training Top 10 Reasons to Hire Veterans by Jerold Ramos
Columns 11 SHRM-Memphis Bulletin 12 SHRM-Memphis Who’s Who? 29 HR Happenings!
Industry News 13 2012 TN SHRM Conference & Exposition 21 TPMA Memberhip Meeting 29 TN SHRM State Council Salary Survey 35 Strategic Leadership for HR Executives
Next Issue First Anniversary Issue Highlights 2012 TN SHRM Conference & Exposition 3
a note from the Editor
T
The 2012 TN SHRM Conference & Exposition if right around the corner! Don’t miss the great preview of all the events on Page 13. I am looking forward to seeing everyone there!
Our focus this month is HR professionals in higher education. You will meet Greg Eller, the new Director of HR for Christian Brothers University, who is on the cover. I enjoyed having Greg as my guest for the July SHRM-Memphis meeting. We were privileged to hear Dr. David Allen’s presentation on “Turnover Myths.” In case you missed the meeting, you can read all about it in this issue. We can’t wait to bring you a review of his new book, Managing Employee Turnover: Dispelling Myths and Fostering Evidence-Based Retention Strategies, which he co-authored with Dr. Phil Bryant, Asst. Professor at Columbus State University. It will be published in October. We are excited to be among the first to publish the news! Continuing our focus on HR professionals in education, we are honored to have John Carbonell, Director of HR for Union University; Margaret Ridings, Faculty Coordinator at Webster University Memphis; Maria Alam, AVP | Chief Human Resources Director at the University of Memphis; and Claire Shapiro, Director of HR at Rhodes College, share a little about their prestigious careers in higher education with us. You will also learn about some of the top educational programs for HR professionals that their universities have to offer. Last month Cristie Travis, CEO of Memphis Business Group on Health, provided an analysis of the long awaited ruling from the Supreme Court on Healthcare Reform. This month we have a preview of the upcoming 4th Annual MBGH Conference that will be held September 6 at the University of Memphis Holiday Inn. Be sure and read about the line up of top-notch speakers that will be there to discuss navigating your way to effective health benefits in these changing times. The conference is open to the public. As always, we will be bringing you exciting coverage of every HR event in the Mid-South on Twitter at @cythomps and on our Facebook page for HR Professionals of Greater
WEBextras
Register today for the 2012 Tennessee SHRM Conference and Exposition.
Memphis. Remember the Twitter hashtag for the 2012 TN SHRM Conference & Exposition is #TNSHRMConf. Please join me for all the fun @cythomps on Twitter and Like us on Facebook!
WWW.TNSHRMCONF.ORG
Cynthia Y. Thompson | Editor Cynthia@HRprosMemphis.com
Sign up for our RSS News Feed to receive up to the minute HR Alerts on changing legislation affecting our workforce. www.hrprosMemphis.com.
4
on the cover
Gregory w. Eller Gregory W. Eller Director of Human Resources Christian Brothers University
In his new position as Director of Human Resources at Christian Brothers University, Greg is responsible for the smooth operation of the University’s Human Resources department. He provides consultation to management on strategic staffing plans, compensation, benefits, training and development, budget, and faculty/staff relations. Greg has a leadership role in developing a culture that enables faculty and staff to perform in accordance to the objectives of the University. Greg earned a BA in Business Administration and a BA in Industrial Psychology (1979) from the University of North Carolina – Charlotte and was selected as a member of UNCC’s Student Honors Society for both degrees.
As an accomplished HR professional, Greg brings to CBU over 20 years of vast experience in employee relations, labor relations, recruitment, and training. He began his career streamlining the hiring and training processes with the American Red Cross as Associate Director of Personnel in Charlotte, NC, before working with Eckerd Drug Company as Division Personnel Representative. Subsequently, Greg worked in the hotel and glass industries where he was responsible for developing numerous human resources programs, systems, and policies. Most notably, he served as the Director of Human Resources for Hilton Hotels Corporation in Beverly Hills, CA, and Director of Human Resources and Corporate Director of Purchasing for Vitro America, LLC. When Vitro America, LLC was sold in bankruptcy and three companies resulted from this sale, Greg was chosen as Director of Human Resources for ACI Glass Products, LLC, one of the three newly created companies. Most recently, due to his abilities in negotiation and company-wide risk management, Greg was chosen as a consultant with Mukki, LLC, the bankruptcy estate for Vitro America, LLC. Greg has been active in national and regional associations including the National Advisory Board of Diversified Investment Advisers, Greater Memphis Employer’s Benefit Council, and Flat Glass Logistics Council where he served as Vice-Chairperson just to name a few.
5
HR Professionals in
HIGHER education
Maria Alam, MS.ED
John W. Carbonell, SPHR
AVP/Chief Human Resources Officer The University of Memphis
Associate Vice President for Human Resources Union University
Maria Alam is AVP/Chief Human Resources Officer for the University of Memphis and has been in the HR profession in public and private higher education for over 25 years. She previously held HR leadership roles at The George Washington University and Florida International University where she was recognized for her drive in promoting service excellence initiatives.
John has been in human resources management for over 15 years, in both the public and private sector. He has been with Union University for six years. John was previously the Director of Human Resources for the Florida Institute of CPAs in Tallahassee Florida and for the Family Research Council in Washington, D.C.
Ms. Alam holds a Bachelor’s and Master’s degree in HR Management/Development and is actively involved in various professional organizations including the Society for Human Resource Management Memphis chapter where she is currently a member of the SHRM-Memphis Executive Roundtable and the College and University Professional Association for Human Resources (CUPA-HR) where she has been recognized for Excellence in Human Resource Management & Practices. She is also acknowledged in the Cambridge Who’s Who Registry of Executives & Professionals as an individual of distinction who is influential within the HR industry.
John has an MBA from Union and completed his undergraduate degree Florida State University. He is currently working on his doctorate at Union. He is a certified as a Senior Professional in Human Resources (SPHR) by the Human Resource Certification Institute (HRCI). John is currently the 2011-12 President of West Tennessee Society of Human Resource Management (WTSHRM). His previous positions with WTSHRM include Vice President and Membership Chair. John was the 2006 President of the Big Bend SHRM Chapter in Florida and is a SHRM national member.
Margaret Ridings, IPMA-CP Faculty Coordinator at Webster University Margaret Ridings is the faculty coordinator and an adjunct professor for Webster University Memphis. She has been with Webster for ten years. Margaret also instructs courses for the Masters in Human Resources program and in the Masters in Management program. In 1990, Margaret became the first Director of Personnel for the City of Millington under Mayor George Harvell, Jr. She retired from this position in 2005. Margaret began teaching part-time at Webster in 2002 and eventually became the Faculty Coordinator. Margaret was formerly active in SHRM and became a member of the International Public Management Association and participated in the Tennessee chapter while working for the City of Millington. She holds a Certified Professional designation (IPMACP). Margaret served on the Board of Directors and held various positions including Vice President and Secretary. In 2005 she was awarded the Personnel Achievement Award, and in 2007 she was awarded a Lifetime Membership.
Claire Shapiro, MBA Director of HR at Rhodes College Claire Shapiro has been with Rhodes College for 18 years. She provides strategic direction for human resources operations at the college including compensation, health and retirement benefits, employee relations, organizational consulting, recruitment, HRIS, and employee wellness. She received both her B.S. in finance and her M.B.A. from Louisiana State University. She worked in the banking and healthcare industries prior to joining Rhodes College. Shapiro has been the President of the Memphis Business Group on Health for the past 7 years and is currently working on her C.C.P. designation. Claire is a member of SHRM and the SHRM-Memphis Executive Roundtable. 6
Top
Educational Programs for HR Professionals
Union University Germantown
In the constantly changing world of business, the Master of Business Administration degree provides graduate degree level competency in managing and leading organizations. Union University's MBA degree integrates relevant, top-tier academics with Christian faith in a way that effectively impacts business ethics and organizational decision-making. Union has developed a unique cohort format for working individuals to provide the best educational experience. The MBA program is designed to prepare its students for dynamic business environments through excellence in teaching and personal attention. Scholarly research enhances students' education through the diverse intellectual perspectives of the faculty. Union University's McAfee School of Business Administration faculty have been published 65 times in top research journals over the past five years. The Union University MBA degree program is also distinctive
for its intensive use of case study experience. This opportunity provides students with concrete organization experience and analysis. Various MBA classes have developed strategic plans for local non-profit organizations, such as the Friends of the Pink Palace in Memphis, the Millington Civic Center, United Cerebral Palsy of Memphis, Youth Visions, and others. "If we are Christ-centered, if we are excellence-driven and peoplefocused, these are projects that have value," Steve Arendall, Ph.D., professor of management and director of the MBA program in Germantown, said. "It gives our students experience in a real-world setting." "These tend to be significant projects," Arendall said. "This is about making strategy for the organization, making suggestions for top management. It's not nickel and dime stuff." For more information, contact Renee Victory at rvictory@uu.edu, http://www.uu.edu/mba.
UNION MBA Top tier academics. Real world experience. Making a difference.
GERMANTOWN 901.312.1920 uu.edu/mba EXCELLENCE-DRIVEN
|
CHRIST-CENTERED
|
PEOPLE-FOCUSED
|
FUTURE-DIRECTED 7
H HRCP | Human Resources Certification Program
R
C
P
Human Resource Certification Preparation
The HRCP Program is a comprehensive set of study materials designed to help individuals prepare for the PHR/SPHR certification exams and consists of six units (one covering each area tested on the exam); a set of flash cards (600+ terms and definitions); and access to online practice exams (800+ questions). The authors of the HRCP Program, David J. Cherrington, DBA, SPHR and Laura Z. Middleton, SPHR, both teach human resource management courses at Brigham Young University. Dr. Cherrington served on the HR Certification Institute Board of Directors from 1989 to 1995. During his time on the board, he was the National Director of Codification and Research and the National Director of Exam Development. As the Director of Codification and Research, Dr. Cherrington conducted an extensive study to define and expand the HR Body of Knowledge on which the PHR/SPHR exams are based. Laura Middleton assisted with the codification study; the two thoroughly researched human resource management laws, practices, policies, trends, and literature. They also conducted an extensive survey of certified human resource professionals to determine the relative importance of the various human resource topics. In his role as the National Director of Exam Development, Dr. Cherrington reviewed and improved items in HRCI’s test bank. He also conducted item-writing and review workshops with certified human resource professionals who had volunteered to assist in writing and/or reviewing items for the PHR/SPHR exams.
HRCP Program PHR/SPHR Study Materials
Affordable Comprehensive Up-to-date Guaranteed
The HRCP Program is backed with a “You PASS or Your Money BACK” guarantee for those who qualify.
Webster University Memphis
Webster University, a worldwide institution, ensures high quality learning experiences that transform students for global citizenship and individual excellence. The Memphis NSA Campus is located in Millington, Tennessee aboard the Navy Base. Four Masters Degree Programs are offered: Master in Business Administration, Master of Arts in Human Resources Management, Master of Arts in Information Technology Management and a Masters of Arts in Management and Leadership. The classes are one night a week and registration is open to all military, civilians and veterans.
8
ORDER NOW! Use Discount Code HRPROS for $25 off Complete HRCP Program www.hrcp.com 801-343-3699
Recognized for outstanding contributions to military education around the world Council of College Military Education
Webster University holds Specialized Accreditations in Business and Management programs which are accredited by the Accreditation Council for Business Schools and Programs (ACBSP). Webster University is accredited by The Higher Learning Commission and is a member of the North Central Association, 312-263-0456, www. ncahlc.org. Webster University is authorized for operation as a post secondary educational institution by the Tennessee Higher Education Commission (THEC). For more information, please contact Memphis@webster.edu. http://www.webster.edu/Memphis.
University of Memphis
For nearly 30 years, Webster University has been an Academic leader with the military. With facilities at 55 bases and military installations coast to coast, Webster offers unparalleled opportunities to pursue a highly respected graduate program to advance your career.
One of the top Midwest Universities for Master’s Degree Programs • Master of Business Administration (MBA) • MA in Human Resource Management • MA in Information Technology Management • MA in Management and Leadership
Navy College Office | 5722 Integrity Drive NSA Mid South | Building S-241 | 901-873-1531 E-mail: memphis@webster.edu www.webster.edu/Memphis
The Department of Management in the Fogelman College of Business and Economics at the University of Memphis offers AACSB-accredited training in human resource (HR) management and organizational behavior. The following faculty have an expertise in these areas: Drs. David Allen, Rabi Bhagat, Carol Danehower, Coy Jones, Chuck Pierce, Bob Renn, and Bob Taylor. They offer undergraduate courses on HR topics such as introduction to human resource management, compensation & performance appraisal, employee relations, staffing organizations, and employee training & development. The University of Memphis offers MBA and executive MBA courses on topics such as managing human resources and strategic human capital management. They also offer a doctoral research seminar on human resource management. In addition, they have a student chapter of the Society for Human Resource Management (SHRM). Finally, they are in the process of developing an undergraduate certificate in HR management. For more information, please contact Dr. Chuck Pierce, Chair of the Dept of Management (capierce@memphis.edu; http://www.memphis.edu/management).
9
HR Professionals of Greater Memphis, Please join the SHRM-Memphis Chapter Board of Directors (BoD) in welcoming James Miller, SPHR, as the new 2012 President-Elect! The previous President-Elect, John Wallace, resigned upon learning his wife, Sandi, had a once in a life time opportunity to retire early. In less than one month, they sold their Memphis home and moved to Mexico. The BoD unanimously elected James to the position at the July meeting. We are grateful and happy for John and Sandi's wonderful news and pleased to have James in his new role. James currently serves as the Director of HR for Lakeside Behavior Health System. Meanwhile, have you heard about tnAchieves? It is a last dollar scholarship and mentoring program designed to provide an opportunity for Tennessee public high school graduates to receive up to $3,000 annually for community college tuition. The program has three unique components: • Volunteers donate funds to provide a college education for students who would otherwise lack the opportunity. • Volunteers mentor students to eliminate the barriers associated with college access and success. • Students (Scholars) volunteer their time and energy by giving back to the community eight hours of community service per semester they receive funding. Since 2008, volunteers, like yourselves, mentored over 34,000 students across the state of Tennessee allowing those students to attend community college at no cost. The program is incredibly effective and lines up perfectly with the goals of Memphis Talent Dividend. But do not take my word for it, see the stats for yourselves and volunteer at: https://www.tnachieves.org/ tnachieves-stats. Lastly, the "Garden to Kitchen" program of the Boys and Girls Club Technical Training Center (TTC) catered the July SHRM-Memphis board meeting. They served seasonal favorites, like watermelon and peach pico de gallo, black bean and spicy roasted red pepper humus with Pita chips and bread. The menu contained lemon basil and vegan breads with strawberry basil and margarita cupcakes for dessert. The culinary program is one of three programs highly sought after in the Memphis area; the other two programs being logistics and automotive. The TTC is the only Club in the United States that offers the breadth of services it does. The TTC has a 100% placement rate for their graduates. Students are not recommended for employment by the TTC, unless all of their instructors recommend them for work. All students have a history of longevity, good attendance, punctuality and must pass background and drug tests. Visit the TTC goals and read about the soft skills curriculum also taught to students who graduate (http://www.bgcm.org/technicaltrainingcenter). Keep these students in mind for future employees and call Tiffanie Grier, Career Placement Director, for placement and/or a tour of the facility at 901-774-3074. As always, thank you for the opportunity to serve HR Professionals of the Greater Memphis area. Please contact me for volunteer work, HR opportunities or items of interest. The 2012 TN State Conference is just around the corner, REGISTER NOW at http://www.tnshrmconf.com/.
Julieanna Walker, PHR
21 SHRM-Memphis Upcoming Events
August 14 SHRM-Memphis
4:00 PM to 5:00 PM
Fueling the Talent Engine: Finding and Keeping High Performers Facilitated by Jon Veazey Law Office of Ford & Harrison 795 Ridge Lake Blvd Cost $15 for SHRM members $30 for non-members Approved for one HRCI Strategic Credit www.shrm-memphis.org
August 21 SHRM-Memphis
11:30 AM to 1:00 PM
The Business Case: Why Diversity and Inclusion Are Good for Business Speaker: Eric Peterson Manager, Diversity & Inclusion Initiatives, The Society for Human Resource Management Holiday Inn at the University of Memphis www.shrm-memphis.org
August 28 SHRM-Memphis
7:30 AM to 9:00 AM
Ethics CEG Breakfast Meeting Location: TreeTops Café at IP Topic: You’ve Got a Code…Now What? Training Your Employees Speakers: Nicole Walthour, Esq., Chief Counsel, HR and Global Policy Management at IP and Melissa Paul, Securities and Corporate Law at FedEx Corporation Cost $5.00 plus the cost of your breakfast RSVP to Cynthia@hrprosmemphis.com
2012 SHRM-Memphis President 901-603-1423 11
SHRM
MEMPHIS
WHO’S who
SHRM-Memphis
WHO’S who?
Getting to know your Board
Every issue we spotlight Board members, chairpersons and prominent leaders in the HR and business community.
Barbara Knight
Workforce Development Chair Barbara Knight is the Workforce Development Chair for SHRM-Memphis. She is responsible for coordinating and leading the Workforce Development Roundtable Discussions. Barbara is responsible for bringing together Workforce Agencies such as WIN and other Community-Based Organizations (CBOs) and Training Providers such as Seedco, Southwest TN Community College, Memphis Bioworks, and YWCA with local employers to discuss ways they can more closely match their training programs to the needs of the employers. These grass root discussions allow the employers and workforce development agencies to exchange ideas on how to close the gap between what employers are looking for when hiring new employees and how the workforce development agencies are preparing the workforce to meet the demand of these jobs. Barbara is currently the Vice-Chair of the Local Workforce Investment (WIN) Board where she serves as the Chair of the Performance and Accountability Committee. She formerly served on the Board of Directors for The National Association for Women Business Owners (NAWBO). Knight is owner of Right Resource Management Group, an HR Training, Staffing and Consulting Firm, certified as a woman-owned business by The National Women’s Business Enterprise Council (WBENC-South). She is a certified trainer of Employment Learning Innovation (ELI) Civil Treatment for Managers and Employees, certified INSIGHTS facilitator, and certified by Achieve Global in Leadership and Customer Service training. Barbara holds a Bachelor’s Degree in Business Administration from Belhaven University. She has two sons and six grandchildren and is active in the ministry at Anointed Temple of Praise (ATOP) Outreach Ministries.
Bring Yo ur Busines Cards & s Enter to Win the New iP ad! During the 2012 Tennessee SHRM Conference & Expo, join The Centre Group for a wine & cheese welcome reception immediately prior to the SHRM Social, just steps from One Commerce Square. Union Ave.
Barbaro Alley
Art Under A Hot Tin Roof Gayoso Ave.
RSVP to: 901.683.4320 | info@thecentregroup.com | www.thecentregroup.com 12
Main St.
Art Under a Hot Tin Roof 117 South Main Street Memphis, TN 38103
4:45-6:15pm
Front St.
Thursday, September 13th
One Commerce Sq.
in
f
Get ready for a
Rockin’ Good Time in Memphis By tisch McDaniel
as you Find
P
the Music in You!
ut on your blue suede shoes and come do some walkin’ in Memphis for the 2012 Tennessee SHRM Conference & Exposition, hosted by the SHRM-Memphis chapter. The conference will be held at the Memphis Cook Convention Center, adjacent to the Marriott hotel, located near ‘ole man River’ – you know, the mighty Mississippi!
With the conference app you will be able to create your own customized agenda, follow the speakers—all 41 of them – take/upload pictures, find your favorite exhibitors, download speaker’s slides and exhibitor’s product/service information, and chat with everyone at the conference. You can download the app now from your favorite app store and start getting connected. Now that’s exciting!
This year attendees will learn how to give presentations [literally], participate in an exercise boot camp [no joking], throw fish like at the Seattle Fish Market with Harry The Fish Guy! [well, maybe not literally], learn about employee engagement [what?—engaged employees!], have their creative juices flow through song [yeah!], spend time with the attorneys learning all they need to know, plus have access to best-selling authors, senior level HR professionals, and industry experts!! While this all sounds like a whole-lotta fun, we know it’s critical for the HR Professional in today’s business environment to be a truly engaged business partner. That’s what this conference is all about—education, learning and advancing the HR profession.
Let’s not forget that for your time spent away from work you will also receive HRCI credit…there will be strategic and general credit issued depending upon what sessions you attend. What’s also impressive is that this year’s conference will have such a large number of concurrent speakers who are best-selling authors! Their books will be available for you to purchase in the on-site SHRM traveling book store, and you can also get them autographed! Don’t worry about the books by the keynote speakers, because we have a surprise for you—but we can’t tell you—you have to come to the conference to find out!
2012 Tennessee SHRM Conference & Exposition
Memphis, TN • September 12 -14, 2012
New for this year, conference attendees will have access to a smart phone app called Truexpo to download on their Androids, iPads and iPhones. Everything you need to know about the conference will be at your fingertips.
We can’t wait to see you in Memphis for Networking, Learning, Food, Music, Fun and …BOOTCAMP! Register today at www.tnshrmconf.com Don’t forget to bring your blue suede [workout] shoes!
13
401(k) Changes
Will Help Employers Better Understand Their Company Retirement Plans Beginning this year, sweeping new rules from the U.S. Department of Labor (DOL) require 401(k) plan providers to make new fee disclosures. In an interview, Grant M. Boucek, AIF,® Corporate Retirement Plans for First Tennessee Advisory Services, Inc., discussed what this means for companies sponsoring these plans.
Q: What’s the purpose of the new rules? A: To empower 401(k) plan sponsors and participants with information so they
clearly understand the total costs associated with the plan and the investments within them. Participants and sponsors are often unaware of or have difficulty understanding the amounts of direct and indirect fees. As a result of the new disclosures, employers now have the ability to peel back the onion so to speak. With this new transparency of fees, plan sponsors have information they need to make prudent decisions on behalf of participating employees. As a result, their employees can make more educated investment choices.
Q: What are some of the key responsibilities of plan sponsors under the new rules? A: Plan
sponsors are required to act prudently in assuring all plan fees are reasonable for the services provided. Because of this fiduciary obligation to the plan and its participants, the employer should understand how the new disclosures can help determine if their plan fees are reasonable. This new legislation requires providers to disclose specific costs of the various plan components while highlighting any direct and indirect fees for services. The employer can better understand their plan expenses and be able to compare or benchmark them to other plans of similar size and demographics.
The new rules also require plan consultants to disclose — and sponsors to determine — whether they are providing services to the plan as an ERISA fiduciary. Being a fiduciary is a legal/regulatory status meaning one has a duty of care to serve in the client’s best interests; a fiduciary duty offers the highest standard of care and accountability.
Q: Do the DOL rules prohibit sponsors from engaging plan consultants who aren’t fiduciaries?
Q: What are the consequences for sponsors who fail to comply with the new rules? A: The
DOL is expected to increase audits to assure compliance. Further, a service provider arrangement which doesn’t comply with the new rules could be deemed a prohibited transaction – a breach of fiduciary duty that could result in monetary penalties in the form of an excise tax. Plan sponsors should work with their advisors to develop protocols in order to comply with the new rules
Q: How are employees reacting to the new fee disclosures? A: Many
employees are experiencing a “wow” moment, as in: “Wow! I had no idea the plan or my investments were costing me this much.” Until now, participants haven’t received explicit disclosures about plan expenses, which are paid largely out of their accounts, and investment companies haven’t been required to itemize these fees. Instead, account statements reported investment returns net of fees. The new disclosures break down these fees and actual investment returns, displaying them in tables on participants’ quarterly statements. To determine if these fees are reasonable for the services provided, employers should have a qualified consultant perform a plan benchmarking review.
A: No. But a non-fiduciary generally will provide only limited guidance to a Plan sponsor concerning plan investment options. Plan sponsors may want to consider hiring independent consultants to serve in a fiduciary capacity and provide analysis and recommendations for plan investment options.
14
Contact Grant Boucek at 901-681-2403 or email him at gboucek@ftb.com. www.firsttennessee.com
CORPORATE RETIREMENT PLAN CLARITY YOU CAN COUNT ON With a maze of fiduciary compliance concerns, corporate retirement plans can be complex to implement without experienced guidance. At First Tennessee Advisory Services, Inc., our senior adviser, Grant Boucek, has advised business owners, boards, and trustees on more than 300 retirement plans. He brings a consultative approach to advising companies on 401(k), profit sharing, and defined benefit plans, with a focus on investment and fee analysis, and participant education. If your business could benefit from Grant’s experience, give him a call today.
GRANT M. BOUCEk, AIF
®
Investment Adviser Representative Corporate Retirement Planning First Tennessee Advisory Services, Inc. Phone: 901-681-2403 Fax: 901-579-6542 gboucek@ftb.com
Investments: Not A Deposit Not Guaranteed By The Bank Or Its Affiliates
Not FDIC Insured
Not Insured By Any Federal Government Agency
May Go Down In Value
First Tennessee Advisory Services, Inc. (FTAS) and First Tennessee Brokerage, Inc. (FTBR) are wholly owned subsidiaries of First Tennessee Bank National Association. ©2012 First Tennessee Bank National Association. www.firsttennessee.com
Do Most Employees Quit Because of
E
Pay?
By David Allen, PhD
Distinguished Professor of Management, Fogelman College of Business and Economics, University of Memphis mployee turnover remains a critical organizational concern, and is likely to become increasingly important. Even with the down economy, retention among high performers has become more difficult due to budget constraints that limit bonus and incentive pay. The Corporate Leadership Council reported in 2010 that 27% of employees considered “high potential” intended to leave their current organization, up from 10% in 2006. This suggests that while the economic downturn may have temporarily abated the talent crunch, competition for top talent remains fierce. Furthermore, as soon as labor markets become more favorable for employees there is likely to be substantial “pent-up” turnover. How can managers and HR professionals use data and evidence to effectively manage employee turnover and retention? Despite the importance of successfully managing turnover, many retention efforts are based on misleading or incomplete data, generic best practices that don’t translate, or managerial gut instinct at odds with research evidence. In previous research and in a forthcoming book, I (along with my colleague Dr. Phil Bryant) take an evidencebased management approach in which we synthesize volumes of academic research on employee turnover into a practical guide to managing retention. Evidence-based management refers to translating knowledge and principles based on the best available scientific evidence into organization practice, enabling managers to make decisions informed by social science and organizational research. A key component of evidence-based management is the integration of research evidence (the science) with experience (the 16
art). Applying research evidence without experience can lead to neglecting important practical realities or the context in which the evidence is being applied. Relying on experience without considering research evidence can lead to neglecting new developments and changing conditions while relying too heavily on a narrow set of experiences that may not apply in new and dynamic situations. Most HR professionals get plenty of opportunities to develop experience. However, it is more challenging for busy professionals to stay current with research evidence. Employee turnover is one such challenge. There have been thousands of research studies conducted investigating how and why employees make voluntary turnover decisions. However, many managers do not have the time or inclination to read and digest all of this research evidence, and find themselves relying on conventional wisdom or mimicking practices from other organizations. To help busy HR professionals, we developed a systematic review of turnover research to dispel common turnover myths and aid in the development of evidencebased retention strategies. One common turnover misconception is that most people quit because of pay.
Kernel of Truth When we ask managers, executives, HR professionals, and students why people quit jobs, pay is almost invariably the first or second reason provided. It is true that some people quit because they are unhappy with their pay, and that people often quit in order to take
higher paying jobs elsewhere. However, the bulk of the research evidence suggests that pay may not be nearly as important as many managers believe. Further, many employee who say they are leaving to take a higher paying job with another organization would never have been looking for that job in the first place unless something drove them to look for an alternative.
What the Research Says We reviewed the most up-to-date research summarizing the results of hundreds of peer-reviewed studies of predictors of individual turnover decisions. Out of 41 predictors, level of pay was tied for the 30th strongest relationship with turnover. Maybe it is not the level of pay that matters. After all, some people might be quite happy and satisfied with relatively modest pay. Others might be very dissatisfied even with very high pay, especially if the person working near you doing the same job makes more. Evaluations of pay are probably relative. Surely, then, how satisfied or dissatisfied I am with my pay should be a better predictor of turnover? The research suggests otherwise. Out of 41 predictors, pay satisfaction showed the 35th strongest relationship with turnover. Conclusion: despite the widespread belief that pay is an important driver of turnover, pay level and pay satisfaction are relatively weak predictors of individual turnover decisions. So, what are stronger predictors of who is likely to quit? The studies cited above suggest three primary categories of predictors that are more strongly related to turnover: the withdrawal process, notably turnover intentions, individual mobility, and job search; key job attitudes, specifically job satisfaction and organizational commitment; and the work environment, particularly leadership, work design, and relationships with others.
Evidence-Based Management Implications
quit. Organizations should train managers on the importance of providing clear role expectations, design organizational processes to minimize role conflict, and develop and communicate career paths, especially to highly valued employees. • Individuals linked by positive relationships with others in the organization are less likely to quit. Organizations and managers should work to foster positive relationships among co-workers, provide opportunities for interaction, and help newcomers form and develop relationships.
Final Thought It should be good news that pay is not the most important driver of turnover. Revamping compensation systems, paying considerably above market, and throwing money at valuable employees can be complicated and expensive. Many of the recommendations provided here are less expensive to implement, more likely to have a positive impact, and thus, likely to provide a greater return on investment. If you’d like more information, check out our forthcoming book at www.businessexpertpress.com, or contact me at dallen@memphis.edu.
MANAGING EMPLOYEE TURNOVER: Dispelling Myths and Fostering Evidence-Based Retention Strategies By David Allen and Phil Bryant Publication Date: Oct 2012
Based On Award-winning Research:
Extensive research evidence on individual turnover decisions suggests several key points for savvy managers to keep in mind.
2011 Outstanding Practitioner Publication Award, OB Division of the Academy of Management
• Pay level and pay satisfaction are relatively weak predictors of individual turnover decisions. • Indicators of the withdrawal process are the strongest predictors of individual turnover decisions. Organizations should measure and manage employee mobility, job search, and turnover intentions. • Job satisfaction and organizational commitment are key attitudes that are consistent predictors of individual turnover decisions. Organizations should measure and manage both satisfaction and commitment. There is extensive research evidence available for the savvy evidence-based manager on the drivers of these attitudes. • When measuring attitudes and withdrawal, organizations should use well-developed measures with validation evidence, assess more frequently than annually, and link individual responses to individual behaviors and outcomes. • The nature of the relationship with one’s immediate supervisor is a consistent predictor of individual turnover decisions. Organizations should provide leadership training to all supervisors and managers, and hold leaders accountable for retention. • Individuals with clear role expectations, minimal role conflict, and opportunities for growth and advancement are less likely to
2010 Outstanding Article Award, Academy of Management Perspectives When the job market improves, many employees who have had few options will be looking for new alternatives. Employee turnover can be expensive, disruptive, and damaging to organizational success. Despite the importance of successfully managing turnover, many retention management efforts are based on misleading or incomplete data, generic best practices that don't translate, or managerial gut instinct at odds with research evidence. This book culminates volumes of academic research on employee turnover into a practical guide to managing retention. Turnover fictions are dispelled and replaced by research-based facts. Keys to diagnosing and managing employee turnover are presented such that readers can effectively manage employee retention today! These ideas are invaluable to audiences from CEOs who care about the impact of turnover on the organization’s bottom line to the Managers who suffer the most when their best talent leaves; from Human Resource Professionals whose career success may depend on effectively managing turnover to students mastering new knowledge and skill sets. 17
Fisher & Phillips Value
Many law firms today talk about value as if it’s a new concept. At Fisher & Phillips LLP, we were committed to providing value to our clients long before it became a fashionable topic of conversation. Our commitment to value dates back to the founding of the firm nearly 70 years ago. So how do we provide this value?
Atlanta Boston Charlotte Chicago Cleveland Columbia Dallas
We do only one thing: Represent employers in labor and employment matters. You benefit from our deep and broad expertise in the area of the law we know best, rather than our trying to be all things to a client. Our attorneys will treat your legal problems as business problems, and we will help you avoid legal disputes. We are responsive, we respect our clients’ time, we are economical, and we reward our associates for quality work, not just for billable hours. We are national and local, with attorneys in 27 offices around the U.S. For more on the Fisher & www.laborlawyers.com/value.
Phillips
Value
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to
Denver Fort Lauderdale Houston Irvine Kansas City Las Vegas Los Angeles Louisville
Memphis Renaissance Center 1715 Aaron Brenner Drive Suite 312 Memphis, TN 38120 phone: (901) 526-0431 toll free: (866) 424-2168 fax: (901) 526-8183
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E E O C
It’s a Beautiful World -
Does the EEOC Think It’s
By Craig A. Cowart
Too Beautiful?
If you are in Massachusetts, stop by one of the many locations of Marylou’s Coffee for a nice cup of coffee. While you are there, take a look around and decide if there are just too many attractive employees in the place. Based on a recent investigation initiated by the Equal Employment Opportunity Commission, someone at the EEOC apparently thought so. Without receiving a complaint from a rejected applicant or a fired employee, the EEOC launched an investigation of Marylou’s Coffee for its practice of hiring young attractive women to serve coffee. According to the director of the EEOC’s Boston office, the “Commission-initiated investigation” was started without a complaint from anyone because “it’s possible that applicants or employees might not know that they have been discriminated against.” Beyond the issue of the EEOC spending agency resources to conduct an investigation where there has been no complaint, the EEOC’s action raises a number of troubling questions. Is the EEOC trying to establish that it is illegal for an employer to prefer attractive employees over unattractive ones? Assuming an employer is not discriminating against applicants on the basis of protected categories like age or race, may an employer hire only good-looking employees? If appearance became a protected category, how would it be enforced?
How About the ADA?
“... may an employer hire only good-looking employees?”
Some proponents of making discrimination against the unattractive illegal contend that such claims should be covered under the Americans with Disabilities Act. However, while the ADA’s definition of “impairment” includes cosmetic disfigurements, it does not include ordinary physical characteristics such as height, weight, eye color, and hair color. According to the EEOC, morbid obesity (defined as weight that is 100% in excess of the body norm) and obesity that results from some physiological disorder such as a thyroid condition qualify as impairments. However, merely being overweight or unattractive will not likely trigger ADA coverage. Simply being homely does not qualify as a disability under the ADA.
So Is It Sex Discrimination?
Another theory is that appearance discrimination is a form of sex discrimination. During the 1970s and 1980s, a number of cases involving airline flight attendants struck down that only sexy young women could fill those jobs. However, attempts to rely on such cases to support an argument that appearance discrimination is a form of sex discrimination ignore the context out of which those cases arose. The airline flight attendant cases involved employers that refused to hire men for those positions. The issue in those cases was whether the complete exclusion of men from flight attendant jobs was permissible – not whether an employer could prefer attractive employees over unattractive ones (regardless of gender) without committing unlawful sex discrimination. 19
Similarly, there were cases during the same time period that struck down weight limits for flight attendants. However, those cases did not hold that an airline cannot require flight attendants to meet weight standards, or that a preference for non-obese employees was unlawful. Instead, those cases held only that the airlines cannot apply weight standards to females but not to males, or apply a more stringent standard to females than to males. In sum, those attempting to characterize appearance discrimination as a form of sex discrimination often rely on cases that do not actually support their position. While there have been lines of sex discrimination cases involving the hiring of young attractive women, the context of those cases involved the exclusion of men or discriminatory treatment as compared with men. Such cases did not decide that preferring attractive employees was illegal.
Academics Say Make it Illegal Anyway
Several academics recently have advocated that discrimination based on appearance should be illegal. For example, in a 2011 New York Times article, University of Texas economics professor David Hamermesh argued that ugliness could be protected by “small extensions” of the ADA. “We could even have affirmative-action programs for the ugly,” he proposed. In fact, there are a handful of jurisdictions with laws prohibiting employment discrimination based on appearance. The District of Columbia’s anti-discrimination law includes “personal appearance” as a protected category. Santa Cruz, California has an ordinance prohibiting discrimination based on “physical characteristics.” Michigan’s anti-discrimination statute includes height and weight as protected categories, as does a San Francisco ordinance. While no other U.S. jurisdiction has a law directly addressing employment discrimination based on appearance, there are advocates of a nationwide ban on appearance discrimination.
But How Would That Work?
The perception of beauty is subjective. How can a law be drafted to address such a subjective subject in the real world? Who will qualify as unattractive enough to sue? Imagine this argument in court: Employer: “She’s not homely enough to qualify for protection under the law.” Rejected Applicant Turned Plaintiff: “I’m plenty ugly enough!” So, who decides? Will the EEOC establish regulations for a national standard of unattractiveness? Will it instead be left to judges and juries to decide who is unattractive enough to be protected by the law? What about the effect of “lookism” lawsuits on the workplace? Will homeliness become criteria for hiring goals under affirmative action plans? Will attractive job applicants attempt to downplay their good looks so as not to be rejected by employers fearful of lawsuits? Will employees who sense they are about to be terminated let their appearance decline so that they will fit within the law’s protection when they are fired? 20
What’s To Come?
As the above questions demonstrate, extending the laws against discrimination to cover bias against the unattractive would seem neither feasible nor wise. However, it remains to be seen whether the EEOC or some state legislatures might try it nonetheless. Perhaps the issue was best summed up by a federal judge in Nevada. In rejecting a beauty-bias lawsuit, the judge noted that the court could not “discern a standard by which a jury would determine Defendant’s notion of attractiveness. It hardly needs to be said that beauty is in the eye of the beholder.” The “real world” problems of trying to make something as subjective as unattractiveness the basis for claiming discrimination may well prevent widespread laws on the topic. However, the investigation launched by the EEOC on its own initiative certainly indicates that there may be proponents of making discrimination against the unattractive the law of the land. Regardless of whether a widespread ban on appearance discrimination is likely, do not be surprised if you hear of more investigations like the one the EEOC launched involving the coffee shops in Maryland.
Craig A. Cowart Partner, Fisher & Phillips, LLP ccowart@laborlawyers.com www.laborlawyers.com
Tennessee Personnel Management Meeting The TPMA held its membership meeting on July 20 at the Hilton-Memphis. TPMA is the Tennessee Chapter of the International Public Management Association for Human Resources. Members represent city and county governments, school boards, public utilities, state agencies, elected officials and other public personnel administrators. TPMA strives to create and cultivate an environment that enhances and supports public sector HR professional development and standards in Tennessee. The chapter goals are separated into three categories – professional development and training; networking opportunities; and development of a marketing, communications and recruitment plan. For more information, contact www.tnipma.org. The International Public Management Association for Human Resources (IPMA-HR) is a non-profit, educational organization established for the purpose of fostering and developing sound policies and practices in public human resource administration. The organization’s goal is to provide information and assistance to help HR professionals increase their job performance and overall agency function by providing cost effective products, services and educational opportunities. IPMA-HR is an organization that represents the interests of over 7500 human resource professionals at the federal, state and local levels of government. Members consist of all levels of public sector HR professionals. The Three Pillars of Human Resources Certificate Training program was introduced in April 2012 at the TPMA Annual Conference. It provides basic education directed toward entry-level human resources staff in the public sector and could be a stepping-stone to further education or the attainment of certifications. The goal of the initiative is to enable public sector human resources staff to share basic competencies within the field of human resources as determined by the Tennessee Personnel Management Association and the Tennessee Department of Human Resources. The certificate training includes essential competencies, pre- and post-testing, defined educational components, recognition levels and a structured, sustainable implementation process.
Pillar 1 – The Role of Human Resources in the Public Sector Pillar 2 – Legal Issues in Human Resources Pillar 3 – Human Resources Administration Upon completion of each module, recognition will be provided by the Tennessee Department of Human Resources. Upon completion of all three modules, participants will receive recognition from the Tennessee Personnel Management Association (TPMA) acknowledging the entire Three Pillars of Human Resources program. Modules may be taken in any order.
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3 1 Rebecca R. Hunter, CPA, SPHR, is Commissioner of the State of Tennessee Department of Human Resources 2 Trish Pulley, M.A., SPHR, is Director of Strategic Learning Solutions for the State of Tennessee Department of Human Resources 3 Richard Stokes, PHR, IPMA-CP, is Executive Director TN Chapter IPMA-HR, and was the keynote speaker. The topic was “Working Together to Influence Organizational Employment Decisions.” 4 Casta Brice, PHR, is HR Director for the City of Tullahoma 5 Paula Taylor, Office Manager for the Knox County Sheriff’s Department 6 Recipients of The Three Pillars Of Human Resources Training Certificate (Back Row L-R) Richard Stokes, Dale Jackson, Rebecca Hunter, and Peter Voss (Front Row L-R) Ruth Akers and Diane Minton
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WEBextras
To get a PDF of the Three Pillars of Human Resources Certificate Training, go to HTTP://HRPROSMEMPHIS.COM/ EXCLUSIVES
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1 Sean King, JD, CPA, Principal, Sage View Advisory Group in Knoxville, was the speaker for the July meeting of the Greater Memphis Employee Benefits Council. 2 James Miller, Director of HR at Lakeside Behavioral Health Center is the new President-Elect for SHRMMemphis. 3 Jerry “Bud” Milligan, MBA, Financial Advisor with Waddell & Reed Financial Advisors, spoke on “Employer Sponsored Financial Education Programs” at the SHRM-Memphis Comp & Benefits CEG Meeting on July 26 at the Crescent Club. 4 Tanja Thompson presented “Is Your Handbook Legal? - Handbook Scrutiny by Today’s NLRB” at the HR Bytes Luncheon at Littler co-sponsored by the L & P Breakfast Club on July 19. 5 James Stock with Jackson Lewis presented “New Developments in Religious Discrimination and Accommodation” on July 11. 6 Students from local high schools were guests of the Better Business Bureau Legal Programs Series on July 18. 7 Kevin Gallagher, Graduate Assistant, Office of Academic Internships, was a speaker at the “Millennial Talent in the Workforce” presentation at the University of Memphis on July 18.
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August 2 NWMS SHRM 11:30 AM to 1:00 PM
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1 (L – R) Tanja Thompson and Lisa Leach with Littler presented “Employers and Employees on the Web – Have We all Gone Too Far?” at the Better Business Bureau Legal Programs Series on July 18. 2 Justin Lawhead, Associate Dean of Student Leadership and Involvement with the University of Memphis, was a speaker at the “Millennial Talent in the Workforce” presentation on July 18. 3 David Allen, PhD., SPHR, spoke on “Turnover Myths and Evidenced-Based Employee Retention” at the SHRM-Memphis luncheon meeting on July 17. 4 Terry McAuliffe, Chairman of GreenTech Automotive; former Mississippi governor, Haley Barbour; and former president, Bill Clinton, were on hand to celebrate the unveiling of the all-electric MyCar in Horn Lake, MS on July 6. 5 Bruce Meisterman, MBQ Magazine; and Nancy Crawford, Better Business Bureau of the Mid-South were at a recent Memphis Chamber Small Business Mixer. 6 Dylan King, attorney with Ford & Harrison was a speaker at their recent half-day seminar on “Wage and Hour Issues-Big Risks and How to Avoid Them.” 7 HR professionals at the “Millennial Talent in the Workforce” presentation at the University of Memphis on July 18.
Speaker: J eff Weintraub, Managing Partner, Memphis office of Fisher & Phillips Topic: H ow to Defend an Unemployment Claim Baptist Memorial Hospital DeSoto www.nwms.shrm.org
August 14 NEA SHRM 8:45 AM to 3:00 PM August Meeting & Seminar Speaker: R ick Roderick, attorney with Cross, Gunter, Witherspoon, Galchus Topic: Frontline Supervisor Training ASU Cooper Alumni Center www.neashrm.org
August 21 SHRM-Memphis 11:30 AM to 1:00 PM Speaker: E ric Peterson, Manager, Diversity & Inclusion Initiatives (SHRM) Topic: T he Business Case: Why Diversity & Inclusion are Good for Business Holiday Inn at the University of Memphis www.shrm-memphis.org
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August 21 WT SHRM 11:30 AM to 1:00 PM August Chapter Meeting Carl S. Grant Event Center – Union University Jackson, TN 38305 www.wtshrm.org
August 21 Volunteer SHRM 11:30 AM to 1:00 PM August Meeting and Membership Drive Organizer: WEOC Location: TBA
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Dyersburg, TN 38024 www.volunteershrm.org
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S IT EF EN B
MBGH Presents Its 4th Annual Conference on Healthcare and Benefits: You Can Get There From Here – Navigating Your Way To Effective Health Benefits in Changing Times.
Cristie Upshaw Travis, CEO of MBGH (Clockwise starting from lower left corner) Lisa Chapman-Smith,
by Joy Doss
H
ealthcare continues to be a hot-button issue at every level, impacting the livelihood of businesses and their employees. Even though the Supreme Court has upheld the constitutionality of health reform, there is still a lot of uncertainty in the air. Many are hopeful that there is the potential for some relief, whether it’s a reduction on the rolls of the uninsured or easing the burden on smaller businesses.
Mission of Memphis Business Group on Health
Memphis Business Group on Health (MBGH), under the leadership of CEO Cristie Upshaw Travis, has been on the front lines of the healthcare battle for the last 27 years, advocating for employers and working with health benefit professionals within Memphis-based companies. The core of the mission is two-fold: to help companies align their health benefits with the desired outcome for employee health and to help companies make value-based purchasing decisions by driving performance and cost measurement visibility for hospitals and physicians. Travis asserts that a combination of forward thinking and thoughtful planning will create win-win situations in the long term. “If we can be a part of the solution, then we’ve done our job. That simple goal is at the heart of every move we make, and every program we design or participate in.” Travis understands that with the average person spending more waking hours at work than at home, it is prudent to consider healthy alternatives and exercise options in the workplace. She vigorously promotes this to her member organizations. She also works in tandem with organizations that share the MBGH’s goal of promoting healthier living behaviors and choices.
Let’s CHANGE
MBGH has partnered with Let’s CHANGE, an initiative of the Healthy Memphis Common Table and the Shelby County Health Department, to push for small, good sense modifications like providing healthy snacks in vending machines, creating exercise groups with co-workers, and constructing walking trails at the larger workplace campuses. “Oftentimes in the workplace, change has a trickle-down effect. If the leadership grasps the concept and leads by example, then we stand a better chance of affecting a noticeable change throughout the company,” Travis remarks. She also believes that people can make the time to create healthy balance in their busy lives. “If we can find 30 minutes or more during the day to dawdle on Facebook or shop online, we can find at least 20 minutes to take a walk. This is particularly true for those who work downtown and are in walking distance of various establishments and green areas. It’s a very pedestrian-friendly area. As a society, we’ve just become way too sedentary.” The organization counts among its members some of the city’s largest entities, including FedEx Express, Rhodes College, Shelby County government, the City of Memphis, First Horizon, Smith & Nephew and Buckman. “MBGH repre24
Ann Albright, Gary Shorb, Jason Little, David Archer, John Santa, Clayton Nichols. (not pictured) Bryan Jordan.
sents, in effect, 300,000 covered lives in the Memphis metropolitan area and this state through our member employers. Therefore, we don’t take our responsibility lightly. We are dedicated to working with the members in our network to ensure the delivery of the best solutions and best practices. We have the power to jointly affect so many lives and so many families in a positive way.”
4TH Annual MBGH Conference is September 6
On September 6, MBGH will host its 4th annual conference at the Holiday Inn, University of Memphis. The conference is an assembly of employers, healthcare professionals, and advocates in the region. Recognized regional and national speakers will share their insights and recommendations as health and health benefit subject matter experts. Each year the conference tackles a hot topic for area companies – from the national Affordable Care Act to creating wellness programs that actually drive change to reducing health and wellness apathy among employees. Travis adds, “Our number one priority is to help companies procure and provide the best benefits for them and their employees. They save money and their employees get a benefits package that is actually beneficial and promotes good health.”
Bryan Jordan is Keynote Speaker
This year’s conference theme is You Can Get There From Here: Navigating Your Way To Effective Health Benefits in Changing Times. There is a full day of activities and information sharing, all focused on giving companies tools to ensure they have effective health benefit programs. All of the experts agree that leadership from the top is essential for an organization to embrace employee health and wellness as a corporate strategy. The conference is punctuated by keynote speaker Bryan Jordan, Chairman, President and CEO of First Horizon National Corporation. First Horizon has been named on multiple occasions to Fortune’s list of the 100 Best Companies to Work For, due in large part to their employee-focused culture, which includes a strong benefits package and employee programs (such as wellness), making Jordan a sought after speaker for the CEOs and HR leaders attending the conference. Travis says, “The conference has become an important extension of our organization’s work. On average, we’ve had 150 in attendance yearly for an open exchange of thoughts and ideas. With the state of healthcare provision in flux, these types of conversations are even more necessary than before!”
John Santa with Consumer Reports Will Discuss its Choosing Wisely Campaign
Effective health benefit programs cover and pay for health services that contribute to the overall health or health improvement of their employees. But not all health services make those contributions. John Santa, with Consumer
Reports, will discuss the findings resulting from reports by nine physician specialty groups that each outline five tests and procedures that may be overused or unnecessary within their specialty. The publication has launched its Choosing Wisely campaign, which is designed to produce a more educated end-user and to create a conversation between employees and their physicians about whether or not a test or procedure is really needed. He will discuss a variety of tools available to the general public offering valid input on the relevancy of certain tests, selecting the best and most affordable testing facility, and making the most of their visits. MBGH will be partnering with Consumer Reports to disseminate this information broadly throughout Memphis and will work specifically with members to educate their employees and to develop benefit strategies that incorporate this information.
Clayton Nicholas, VP of Change Healthcare, Discusses How To Use Price Transparency Tools
As more employers offer high-deductible health plans with HSAs, and as more employees enroll in these plans, tools that help employees make decisions on where to go for care become very important. Clayton Nicholas, the Vice President of Change Healthcare, will discuss how using a price transparency tool allows companies and their employees to save on their healthcare investment while still receiving high-quality products and services. “When employees are on the hook for paying the full rate, not just a co-pay, the service’s price becomes critical to them. They need a way to quickly identify the most cost-effective places to seek care. There really isn’t any other way, short of calling all the network providers themselves for employees to get this information other than using these types of tools.”
Ann Albright with CDC and Lisa Chapman-Smith with United Healthcare Discuss Diabetes Prevention
“One of the questions employers ask me all the time is ‘which worksite wellness program has the best results for helping employees manage their health and not develop diabetes?’ I’m excited that we will highlight the Diabetes Prevention Program, developed by the Centers for Disease Control and Prevention, which has been proven to be an effective approach.” Ann Albright (Director, Division of Diabetes Translation for the CDC) and Lisa Chapman-Smith (Senior Vice President, Diabetes Prevention and Control Alliance for United Healthcare) will share valuable insights into the Diabetes Prevention Program for “pre-diabetics.”
Archer, Little, and Shorb Discuss the Changing Role of Hospitals The conference concludes with a panel of leaders from “the big three” in the city – David Archer, CEO- Memphis Market, St. Francis Healthcare; Jason Little, Executive Vice President and Chief Operating Officer, Baptist Memorial Healthcare Corporation; and Gary Shorb, CEO, Methodist Healthcare. They will discuss the changing role of hospitals and how it will impact health benefits. “The wonderful thing about this panel is that they are not simply symbolic leaders but thought leaders as well. We are fortunate to be able to benefit from the breadth and depth of experience these panelists bring to the table. You really cannot assign a value to that,” Travis concludes. For more information on Memphis Business Group on Health or the annual conference, visit www.memphisbusinessgroup.org.
Joy Doss is Senior PR/Events Strategist with RedRover Company. Contact her at joy@redrovercompany.com.
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Cultural es Valnu a
d l r o W m r o f Re i
By Joe Ochipinti
We
experience tough decisions each and every day and rely on our morals and knowledge in making those decisions. If you as an organization want to get the most value from these decisions, you need to have a strong moral compass or cultural values. Here is an inside look at the framework that UnitedHealthcare used in creating its core values, what those values mean, how they use them and how they have created a culture shift in their organization and industry.
What are cultural values and why do they matter so much? At the 2012 MSSHRM conference I spoke about cultural values and how we at UnitedHealthcare leverage our unique cultural values daily in an ever-changing insurance industry. These values dictate how we operate and guide not just what we do but how we view the world and problem-solve to make it better. They are the guiding principles you work by, make decisions according to, and look to when change is rampant around you. It is what sets the tone in your organization and what helps you stay your course when external forces are working to distract you and take you in the wrong direction. When there is an uncertain world, environment and future, the best approach to ensuring longevity for your industry, company, or personal success is to build a core set of values that can help your employees make the right decisions. l believe UnitedHealthcare (UHC) has done just that in recent years. Specifically, it is our commitment to the industry to continue to develop lower cost and affordable benefit plans for employers and their employees. At UnitedHealthcare, we remain committed to providing affordable health care coverage to employers. For example, consumer-driven plans attached to savings accounts remain an attractive way for employers to keep premiums affordable and engage their employees. At UnitedHealthcare, we also offer programs that provide our members with information on their overall health so that they can make the most informed decisions about their health care – more information leads to informed decisions resulting in better outcomes and a healthier lifestyle overall. In an environment 26
where the nation continues to feel impact from the economy, with high unemployment rates, and the healthcare industry landscape in a state of constant redefinition, it remains critical to the employees of UnitedHealthcare that we “Be Here Now” for the clients and members we serve.
You mention being here now, can you provide more insight on how that helps your members? “Be Here Now” are three simple words individually, but together express a way of living that most individuals do not practice – namely being present in the moment. How often are you thinking about work when you are at home with your family? When you are on a conference call, are you answering emails and multi-tasking? To utilize a set of values successfully, you must first establish a core belief that you will adhere to in most situations. Be here now for that person you are talking with over the phone or the member you are servicing. Doing so will help establish engagement and trust among your clients and members. Please consider that each of us possesses certain characteristics based on when we were born. If you were born before 1960 you are considered a baby boomer, before 1975 but after 1960 you are generation X, and born after 1975 you’re considered Generation Y. Each of these generations has their own characteristics, and has experienced different economies and international events, creating different beliefs and ways of viewing the world. When you have an organization like UnitedHealthcare that reaches out to over 70 million members that come from these different generations and hold a variety of beliefs, you need to provide them with the appropriate tools, services and support they need to live healthier. At UnitedHealthcare our Mission is to help people live healthier lives. This mission allows employees of UnitedHealthcare the ability to understand their role, which is to make healthcare work for everyone. To create consistent definition of whom we are as an enterprise – our own unique identity – UnitedHealth Group leadership has defined: • the behaviors… “Be Here Now” • t he mission….. “Help people live Healthier Lives”
This is the foundation for how we go about leveraging our values on a daily basis to make healthcare work for everyone and provide the appropriate tools, service and support to those we serve.
Now that the Supreme Court has provided it’s ruling to the Affordable Health Care Act, how do you expect MS small businesses to react? There still may be a "wait and see" attitude, but I expect they will begin assessing options to make decisions on health care plans for their employees. Though in the last year, we have not seen any major shifts in small business employers’ thinking with regard to health care coverage for their employees, they remain interested in offering health coverage to attract and retain employees, but it must be affordable. At UnitedHealthcare we have plan offerings, such as the MS Select Portfolio, that enable the small business employer to provide a plan that offers choice at an affordable price. These plans enable the employer to determine deductible limits, copays and secondary benefits, while offering the employee the full use of our network which includes 650,000 physicians and care professionals and 5,000 hospitals nationwide.
Are businesses in MS dropping or adding health care coverage benefits? We have not seen any signs of employers dropping coverage; rather we have seen our membership grow in the small business space in the State of Mississippi. Employers do however continue to be focused on price and value. The emergence of exchanges in 2014 will be a better measure of what small business employers will do, but for now they prefer to continue to offer health coverage to employees in order to compete for the best and the brightest staff.
What cultural suggestions would you provide to Human Resources departments? Well let me start with Integrity, Compassion, Relationships, Innovation & Performance; these are UnitedHealthcare’s five core values. They allow UHC employees the ability to align their personal behaviors and beliefs with how they live the UHC mission. If your organization does not have a mission, create one as the first step toward defining and creating your company’s values. If you already have a mission, then you are able to get started. Begin with a behavior that is critical to your business and one you expect from your staff and employees. Once that is defined, ensure that behavior supports your mission. If it doesn’t, you may want to tweak your mission, or modify the role and behavior you expect from your employees. Finally, outline a set of common values that all Generations, not just your own, can embrace and use as a belief system in living your company’s mission. Be the catalyst that begins this process. Leadership happens at all levels. You don’t have to be the CEO to begin this process. Just think like one.
You Don’t Need Training Wheels. That’s What We’re For. We know HR can be tricky. That’s why Cross, Gunter, Witherspoon & Galchus, P.C. offers employment law training programs specially designed for employers and HR professionals to help you avoid bumps in the road. CGWG’s programs address the most common workplace issues: Employee Leave – ADA, FMLA and Workers’ Compensation Social Media Use in the Workplace Harassment and Retaliation Documentation, Discipline and Termination National Labor Relations Board Updates Fair Labor Standards Act Discrimination Interviewing and Hiring Performance Evaluations I-9s and Employment-related Immigration Health Care Reform
Training programs can also be customized to meet your specific needs. Visit CGWG.com or email info@cgwg.com to learn more or to schedule training.
Joseph Ochipinti Chief Marketing/Sales Officer UnitedHealthcare joseph_ochipinti@uhc.com www.uhc.com
CGWG is an HRCI Approved Provider.
Little Rock
Fort Smith
Northwest Arkansas 27
GreenTech Automotive
Creates New Jobs in Mississippi
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1 Former President Bill Clinton spoke at the unveiling of MyCar. 2 Gov. Haley Barbour helped bring GTA to Mississippi. 3 Terry McAuliffe, Chairman of GTA. 4 Mike McCarthy, GTA Director of HR, and Teri Stanton, HR Generalist with GTA.
On
July 6 in Horn Lake, MS GreenTech Automotive unveiled its environmentally friendly, energyefficient vehicle, MyCar. It’s a two-seat all-electric vehicle that produces zero emissions and provides a range of up to 115 miles. Former President Bill Clinton and former Mississippi Gov. Haley Barbour were on hand to help celebrate GTA’s relocation to the U.S. The company is expected to create 426 new jobs and support about 7,400 more. GreenTech Automotive purchased Hong Kong-based EuAuto in 2010 and relocated the company’s operations and manufacturing to the U.S. They leased a shuttered factory in Horn Lake during the construction of its permanent 300,000-square-foot facility in Tunica. Former chairman of the Democratic National Committee, Terry McAuliffe is the chairman of GreenTech. As of July, GTA has more than 840 employees enterprise-wide, and they are on track to employ more than 900 more by the end of 2012. Mike McCarthy, Director of HR for GTA and Teri Stanton, HR Generalist were on hand for the celebration. Mike has been with GTA for five months. His office is currently in McLean, VA. Prior to joining GreenTech, Mike founded the Networked Expert Workforce which is an organization dedicated to assisting organizations grow and solve business issues more effectively and efficiently by collaborating with a broad field of workplace expertise. As Human Resources Director, he provided direction and human resources leadership to key operating executives for a $2.3B global supply chain consisting of six locations with employees in the United States, Canada, Ireland, and the United Kingdom, in addition to providing human resources leadership
for corporate legal and compliance and risk departments for Shire Pharmaceuticals. At Eaton Corporation, he directed their Aerospace Electrical Sensing and Controls Division human resources function, which consisted of six U.S. manufacturing facilities with shared human resource responsibilities for shared campuses in Reynosa & Tijuana, Mexico. As of July there were 67 employees in the northern Mississippi sites (Tunica/Horn Lake) and eight employees in the McLean, Virginia office. Our northern Mississippi and China sites are manufacturing facilities while our McLean office is the corporate headquarters. Mike said since the electric vehicle is relatively new, the challenge will be to find the talent that is passionate and capable of making “affordable green” happen. Mike is very excited about making a difference with our planet, economy, and overall social responsibility with a fantastic group of special people around the world. He is also excited about partnering with Teri Stanton, an experienced HR professional who brings much to the table. Teri will celebrate her second anniversary with GTA in September. Prior to joining GTA, Teri was Plant HR for Cargill Corn Milling in Memphis for five years. She relocated here from Atlanta, where she was HR Generalist for Printpack Inc. Teri currently travels between Tunica and Horn Lake as needed. In July GTA had about a dozen open positions posted. Among them were assembly tech, automotive design engineer, battery process engineer, cost accountant, quality technician, to name a few. Visit their website at http://greentechforamerica.com/en/.
5 5 MyCar. 6 BBQ Luncheon at GreenTech Automotive. 28
6
Tennessee SHRM State Council and the Tennessee Chamber of Commerce and Industry, encourage you to take advantage of this valuable opportunity.
The 2012 - 2013 State of Tennessee Salary, Wage & Benefits Survey is
Now Open!
It’s time to participate in the 2012 - 2013 State of Tennessee Salary, Wage & Benefits Survey! There are some signs that the economy is in recovery. What does that mean for your company? What is your competition doing about it? Accurate and timely local information is critical. You can get the information you need for free if you participate in our surveys. Follow these simple steps! 1. Go to www.SalarySurveyOnline.com and log in using the following: If you are a New Registrant: Use Your Chapter’s Generic Codes Below to access the online questionnaire and then create your own ID & Password: a. Login Name: TNSC b. Password: 20121796 If you are a Previous Registrant: Follow instructions emailed to you by SalarySurveyOnline.com 2. Enter your company's data anytime during the month of August 2012. Data reported should be as of June 2012. Be sure to complete all three sections of the questionnaire - demographics, benefits and salary - on/before August 31, 2012 to be considered a participant. No late submissions can be permitted or accepted. 3. You will be sent an email letting you know when the survey results are ready for use in mid September 2012. If you have ordered the online format, simply go to www.SalarySurveyOnline.com, click Login, using the ID and Password you created to access the survey results. The online results will be available 24/7 for at least eighteen months after the survey is published. Other formats, if purchased, will be emailed/mailed as applicable. As a participant, you pay NOTHING for access to your online local results but you do have to place an online order to get the survey results into your account. Participants are led to this step while processing the final data check in the system. And don't forget that your chapter also benefits from survey participation. Once chapter members enter their salary data and the results are available, you can promote the survey to area businesses. Anyone can purchase the salary survey so provide them the web address and the chapters' special referral code: 88-1796 to enter when they make their purchase. Have more questions? Contact the SalarySurveyOnline.com Team toll-free at 800.288.6044 or email CustomerService@SalarySurveyOnline.com.
HAPPENINGS August 14
August 22
Better Business Bureau Legal Program Series 11:30 AM Lunch provided Topic: Tennessee Employment Law Update Speaker: Whitney Harmon, Esq., Baker Donelson www.memphis.bbb.org
Talk Shoppe 9 AM – 10 AM Speakers: Cynthia Y. Thompson, MBA, SPHR & James Posner, PhD Topic: The Benefits of Outsourcing the HR Function Continental Breakfast Provided Better Business Bureau 3693 Tyndale Contact jo.garner@comcast.net www.talkshoppe.biz
August 14 ASTD-Memphis 11:30 AM – 1:00 PM The Holiday Inn – University of Memphis Topic: So What’s next for You? Speaker: Becky Atkeinson, Staff Director, Executive Development/HR Initiatives at Fed Ex www.astdmemphis.org
August 16 Baker Donelson Breakfast Briefing 8:00 AM – 9:30 AM 165 Madison Ave. Topic: What’s New at the EEOC Speaker: Brent E. Siler RSVP@bakerdonelson.com
August 16 WT Society for Healthcare Human Resources Association Seminar Hamilton Eye Institute – 930 Madison Ave, Memphis 8:00 AM – 3:00 PM Luncheon Speaker Cynthia Y. Thompson, Topic: What Your CEO Expects HR to Know HRCI Strategic Credit RSVP to stacey.schwarzmann@stjude.org
September 12 Memphis Breakfast Series 2012 Jackson Lewis LLP The Crescent Club 7:30 AM Topic: Unemployment Claims: How Should the Company Respond? www.jacksonlewis.com
October 11 Strategic Leadership for HR Executives The Crescent Club 3:00 PM to 5:30 PM Wine & Cheese Reception following Registration begins September 1st www.hrprosmemphis.com
(L-R) Jon Veazey, Nicole Veternik, and Julieanna Walker planning the August 14 SHRM presentation, “Fueling the Talent Engine: Finding and Keeping High Performers” that will be held at the Law Office of Ford & Harrison at 795 Ridge Lake Blvd. 29
How to Minimize Your Unemployment Costs By John Doren
There have been many articles written and/or discussions regarding the increasing cost of unemployment claims for both the not-for-profit and for-profit employers. But beyond describing the need for properly documenting each employee’s performance, there has been very little written regarding what else can be done to minimize this cost. Properly documenting procedures and an employee’s record are an important part of defeating illegitimate unemployment claims, but what is needed even more is raising and maintaining management’s expectations regarding unemployment. All too often management elects to budget insufficient resources to properly control and account for unemployment claims. Management must be made aware of the potential savings that can be achieved through more aggressively defending unemployment claims. It is more profitable to minimize the cost of claims being lost needlessly, versus savings achieved by minimizing the cost of defending a claim. According to the Department of Labor (DOL), the national average cost of a claim is roughly $7,703. The importance of controlling and accounting for all claims cannot be overstated. Many times claims are not responded to timely by a hiring location; therefore, some claims will be classified as non-protestable due to timeliness. In addition, hiring locations will sometimes “elect not to appeal” a claim, without considering its cost. By working persistently and one-onone with each hiring location, and within management guidelines, this process will not only reduce the number of non-protestable claims, it will also reinforce the cost of those where a “election not to appeal” is being made “ Once management’s expectations are raised they must be strengthened through the use concise monthly reports which will keep them focused on the downward curve of the cost of claims being lost. When a claim is ruled favorable, the employer will receive a “non-charge” notice. This is followed by a monthly or quarterly benefit charge statement which list all of the claims charged against an employer’s account for that specific period. Employers must routinely audit these benefit charge statements for errors. Even though the employer received a favorable decision on a specific claim, payments may still have been applied against its account. According to the DOL, the average error rate for the benefit charge statements is 12.16%. Auditing and protesting erroneous charges is another way of reducing unemployment cost; this process is especially true for internally managed programs. It can be said that employers will achieve a significant reduction in their unemployment cost by: • raising management expectations as to cost savings; • controlling, preparing for, defending and accounting each unemployment claim, while working within management’s guidelines; • issuing timely, concise and easy to understand monthly management reports; conducting quarterly benefit charge statement audits, In most cases, an employer will reduce unemployment cost by: • 20% to 30% for the not-for-profit employers, and • 30% to 40% for the for-profit employers. . As an example, one employer with just 3,000 employees used the above approach and reduced their annual unemployment cost by $200,000. Background Prior to the recession, the national: • Unemployment rate was 4.4% versus 8.2% today, • Average length of unemployment was 18.3 weeks versus 42 weeks today, • Average cost of benefits paid was $5,035 versus $7,703 today. (In most cases, extended benefits beyond 26 weeks is paid for by the federal government) • Average taxable wage base was $13,742 versus $16,307 today, and 30
• State unemployment trust fund solvency rate was 100%, today over half of the states are considered insolvent. ($48 billion needed to be borrowed in order to maintain unemployment benefits at the then current levels. This borrowing will be repaid by increasing taxes on the for-profit employers.) There are two types of employers: not-forprofit and the for-profit employers. Defending unemployment claims is the same for the not-for profit as the for-profit employer. In both cases the state pays out unemployment benefits to terminated employees and then charges such payment back to the employer. How that cost is assessed to each type of employer is where the difference lies. The not-for-profit employers are considered a reimbursable employers, whereby they repay the state trust fund for legitimate unemployment claims as they are incurred. They do not participate (like the for-profit employers) in a pool with other employers. Because of this, they avoid paying for unrelated claims or any underfunding of the state’s unemployment trust fund. The for-profit employers are charged a tax in order repay the state trust fund for legitimate unemployment claims. These employers are placed into a pool with all other for-profit companies, in their respective states. They are taxed (first) based on their own unemployment experience. They also must share, with others in the pool, all other cost of their state unemployment trust fund. The employer’s (basic) tax rate is determined by dividing the total cost of their claims paid during the prior three years by their total taxable unemployment wages for the same period. This tax rate is further adjusted for other cost the trust fund may have incurred, (i.e. the inability of other pool members to pay their share and for funding any of the state’s past, present and future needs.) The current recession has depleted many state unemployment trust funds. In order to re-establish those funds, states are applying surtaxes or increasing the unemployment taxable wage base. (Depending on the state, the unemployment wage base ranges from $7,000 to $34,300.) Therefore, for-profit employers will continue to see a surtax added to its basic tax rate and/or an increase in the states taxable unemployment wage base until the trust funds have sufficient resources available to meet the needs of another recession.
A for-profit employer cannot control what a state may add to its basic tax rate. Nor can they control any increases to the state’s unemployment taxable wage base. However, by minimizing its basic tax rate, it will minimize the impact of a surtax or an increase in the unemployment taxable wage base. What is the cost of an unemployment claim? According to the DOL, prior to the recession, the average length of time an employee remained unemployed was 18.3 weeks and the cost to employers was roughly $5,035, per claim. Today, the average time a person remains unemployed is 42 weeks. However, since the employer is (usually) only responsible for the first 26 weeks, the current cost to the employer is roughly $7,703, per claim. (Based on every 100 claims lost, for-profit and not-for-profit companies would lose $770,300.) An employer may think that because the unemployment rate has decreased from 10.5% to 8.2% that there should be an improvement in their overall unemployment cost. However, until the average length of time an employee remains unemployed drops below 26 weeks, employers will see little decrease in the cost of $7,703, per claim. Benefit Charge Errors & Improper Payments The DOL issued a report dated June 2012, regarding “Benefit Charge Error / Improper Payment” by state. The report’s conclusion was that employees at the state unemployment agencies incorrectly payed benefit to a claimant an average of 12.16%, of the time. According to the DOL these errors are attributed to the agent (39%), the claimant (33%), a combination of the agent/claimant (18%), and others (10%).
Assuming a state pays $500,000 in unemployment claims on behalf of an employer, then on average $60,800 ($500,000 X 12.16%) would be paid in error. These errors can be caught by auditing the (monthly / quarterly) benefit charges statement issued by the state to determine the appropriateness of the charge. These errors must be caught an immediately protested. What constitutes a pro-active unemployment cost control program? 1. Raising and maintaining management’s expectations. 2. Establish proper control and accountability over all claims. 3. Strive to win each unemployment claim at the initial level. 4. Accept only layoffs, union lock outs, casual labor, as being non-protestable. 5. Understand the cost of making an election not to appeal a claim. 6. Monitor benefit charge statements and appeal any erroneous charges immediately (and monitor the charge until the appropriate credit is issued). 7. Most importantly, after raising management’s expectation, keep them focused on the downward curve of cost of claim. Employers who have successfully followed these steps have seen their unemployment costs decrease by 20%-40%.
John Doran CEO, UC Alternative john.doran@ucalternative.com www.ucalternative.com
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IP SH ER D A LE
Eight Keys
to Strategic
HR
Leadership By Voss Graham
Every Human Resource Professional I know wants either more respect or a seat at the Executive Conference Table. If this is true, then why aren’t more Human Resources Professionals getting the respect they deserve and desire. Likewise, when I talk to both C-Level Executives and Middle Management Executives I hear a similar tone regarding the respect level towards the HR teams. These Executives want their Human Resources Professional to be more Strategic in their thinking and take an active Leadership position in acquiring and developing the talent needed for the future success of their organization. The Good news from this research is the overall goal for both Executives and Human Resource Professionals are the same – get to the Executive Conference Table while taking a clear strategic leadership approach for the Talent Management side of the business. The question is now what steps must a Human Resource Professional execute to get the respect they desire and deserve in this critical success position. Ultimately, you earn it by being a proactive leader by enhancing the overall performance and productivity of the organization. Your expertise comes from using the selection and development resources processes for now and the future. Here are the eight keys to moving to into a Strategic HR Leadership position… 1. Position the HR Team Sounds like a marketing function, yet it is your job. Begin to think and act like a Strategic Leader by using ROI in your discussions, measure things related to productivity and report the progress of key indicators of performance. An example would be to calculate productivity numbers like dividing a division or company sales by payroll or number of employees. This will provide a measureable number to track regarding industry trends, standards, and the quality of management policies upon performance. Also, track the trends and be prepared to explain changes. 2. Discover Patterns & Change Opportunities Anticipate more and react less. One of the major complaints I hear from executives is their HR team reacts to people issues rather than proactively develop ideas, standards, or improvements for the organization. Detect breaks in continuity - think and talk about Business models; network with others to learn new ideas about your profession. And, most importantly, Beware of Biases! Bias can include 32
simple misunderstandings as to the purpose of a project needed to improve the performance of a specific team or key individual. Remaining true to the Status Quo shows a lack of leadership skills. Leaders are constantly thinking about how to improve their area of responsibility and you should also. 3. Guide Communication and Culture Help to create your culture. One of the major mistakes I see in corporations is a lack of attention for the development of a specific corporate culture. Too many HR Professionals allow the culture to set itself, which is a major mistake. As the leader of the Human Resource Group, one of your critical jobs is to assist in the creation and nurturing of a preferred culture. Think high energy and high performance culture to guide your success. Use communication to exchange information, deal with conflicts in an open and honest manner, learn to trade off issues for the good of the whole, and make better decisions for the good of the organization rather than maintaining the status quo. It is your social system (which will be discussed in point 8) so make it more formalized. 4. Match Jobs and People Many companies look like a pile of jig-saw puzzle pieces rather than a work of art. It is your leadership responsibility to find the talent for current AND future needs. Find the people whose strengths match the traits needed for the job or position to produce superior performance. Systemize the selection process and use some objective data as part of the process. Many organizations only use subjective processes without the insurance of objective validation. You want to be sure you have a high performer in your interview. Know the non-negotiable criteria of each job or position. Deal with poor performers quickly and decisively. If you don’t others will see you and the line manager as weak since you are choosing not to deal with a poor performer – therefore it is okay to be a poor performer too! Be careful and manage your reputation at all times. If you are uncertain about a Job Matching System, please email me voss@inneractiveconsulting.com and I will send you a white paper – “Selecting Superior Performers Safely Under the Law.” This white paper covers the importance of matching job traits and talent traits. Thus, creating a higher energy work environment for your organization. 5. Influencing Other Leaders This is your responsibility rather than theirs. Your issue is to mold these high-energy, high-powered, and sometimes high ego people into a working functional team with the HR Team. This is necessary for you to synchronize both your efforts and their efforts to propel your company forward. Learning to gain rapport with all the different types of executives and managers is important to you and others. Being able to speak their language with authority and authenticity helps you gain the rapport necessary to speak candidly and openly about issues or concerns. Robust dialogue is a necessary communication technique with the outcome being greater respect for each other since issues are discussed openly and usually leading to a synergist solution to the issue. 6. Developing Goals with Purpose This is not about doing the things just because they were done a certain way in the past. Goals are about the future. However, your goals should be constructed with a strong over-riding purpose in mind. What is the Purpose of your HR team? Think bigger than the walls in the office: in fact, in this global environment we live in today you need to apply "global" to your thinking. Also, in establishing your goals you want to add Quantifiable Goals that drive a RESULT.
7. Pinpointing Priorities Priorities are the pathway to accomplishing the goals - with purpose - you established in point six. Your challenge in this step is to rise above the daily chaos and work with purpose. People talk about multitasking like it is a badge of honor. Multitasking every minute of everyday is the sign of all highly UN-productive person. Stop kidding yourself and set 3 to 5 high priority projects to complete. Set deadlines for their completion. Again, discipline yourself like a leader and keep your projects prioritized with a limited number - three to five is ideal; seven is the maximum; above seven is just for show. Clarity and Focus are the sure signs of a True Leader today. 8. Prepare for Social Issues The greatest leadership and management guru of all time - Peter Drucker - forecasted in 1995 that Social Issues would be the next big issue for leaders. And, as always, he was correct. Social issues are just that they impact the quality of lifestyle of people. It involves health, the environment, family, immigration, and the big one - Ethics. The most popular vehicle for spreading of current feelings about the social issues is the internet and the social media outlets which have grown to meet the desires and needs of the public. There are four rules of engagement in dealing with social issues. 1. Nothing is off limits – no sacred cows any more and everything is discussed. 2. Everything is Transparent – full disclosure is best 3. Laws come too late (or make the issue worst) 4. Government can be an ally or an enemy - your call Your responsibility in the world of social issues is simple - distinguish what is legitimate in your environment. However, to win in the social medial you need to be proactive, use robust dialogue, and avoid becoming defensive. There you have the critical eight keys or steps to becoming a Strategic HR Leader for today’s high performance organizations. Review these keys often as a checklist for your leadership success. Discuss these points with your HR team. And, I will see you at the Executive Conference Table soon.
Voss Graham Sr. Business Advisor / CEO InnerActive Consulting Group, Inc. voss@inneractiveconsulting.com www.inneractiveconsulting.com
Overhaul of The Mississippi Workers’ Compensation System On May 14, 2012, Mississippi Governor Phil Bryant signed into law Senate Bill (S.B.) 2576, initiating huge changes to Mississippi's workers' compensation system and overturning the court precedent that presumed the compensability of a claim should favor injured workers.
• NEW LAW • Mississippi (S.B.) 2576
New Neutral Compensation Presumption Favors Employer Effective July 1, 2012, the new law now states, "notwithstanding any common law or case law to the contrary, this chapter shall not be presumed to favor one party over another and shall not be liberally construed in order to fulfill any beneficent purposes." Mississippi's Workers' Compensation Law has been amended. The new primary purpose is "to pay timely temporary and permanent disability benefits to every worker who legitimately suffers a work-related injury or occupational disease arising out of and in the course of his employment, to pay reasonable and necessary medical expenses resulting from the work-related injury or occupational disease, and to encourage the return to work of the worker."
Burden of Proof Shifts to Employee The new "neutral" compensation presumption favors the employer. For example, on a claim in which no benefits have been paid, the injured worker must now file medical records to support the claim when filing a petition. If an employee is treated by a physician for six months or longer or if the employee has surgery performed by a physician, that physician is deemed the employee's selected physician. The new law expands apportionment for preexisting conditions and limits attorneys' fees.
New Provision for Alcohol and Drug Tests Mississippi employers should take advantage of the new provision allowing them to require alcohol and drug tests "in the event that the employee sustains an injury at work or asserts a work-related injury." Under the new Mississippi workers' compensation system, no benefits are due if the use of illegal drugs, the use of a valid prescription medication "taken contrary to the prescriber's instructions and/or contrary to label warnings" or intoxication from alcohol proximately caused the employee's injury. A positive test or a refusal to take the test creates a presumption that the use of the drug, medication and/or alcohol likely caused the employee's injury and that the employee is not entitled to benefits. The burden then shifts to the employee to prove that the illegal drug, medication or alcohol was not a "contributing cause" of the accident that caused the injury. This is a high burden for the employee.
Increased Monetary Awards Favor Employee There are some provisions that favor the injured worker. For example, the maximum award for facial or head disfigurement has been raised from $2,000 to $5,000. The immediate lump-sum death benefit has been increased from $250 to $1,000, and reasonable funeral expenses have increased from $2,000 to $5,000.
New Posting Required The new law requires the Mississippi Workers' Compensation Commission to draft a written statement that details the changes made to the workers' compensation system. Within ten days of the Commission issuing the statement, all employers must post the Commission's statement in the workplace adjacent to other notices for which posting is required by law. The workers' compensation system was created to provide injured workers with a fast and efficient way to gain compensation from their employers for work-related injuries without having to first sue the employer. In fact, the workers' compensation system is the exclusive remedy for workplace injuries (with certain limited exceptions). The judicial presumption in favor of compensation under the workers' compensation system was a trade-off for workers. However, that presumption is now obsolete. Lt. Governor Tate Reeves applauded the vote for the new bill, saying the bill is fair to employers and employees. "That we insure that the playing field is level for the employer and employee. In the event of a legitimate claim than the workers comp carrier must pay. But we also have to have a level playing field so the employers can protect themselves when that is not the case," Reeves said. 33
NEWS ARI SAUER ELECTED TO SERVE AS CHAPTER CHAIR OF THE MID SOUTH CHAPTER OF THE AMERICAN IMMIGRATION LAWYERS ASSOCIATION Ari Sauer, immigration law attorney in the Memphis office of Siskind Susser, has been elected to serve as Chapter Chair of the Mid South Chapter of the American Immigration Lawyers Association (AILA). The Mid South Chapter of AILA consists of more than 300 immigration attorneys in Tennessee, Kentucky, Arkansas, Mississippi and Louisiana. AILA is the national association of over 11,000 attorneys and law professors who practice and teach immigration law. AILA was established to promote justice, advocate for fair and reasonable immigration law and policy, advance the quality of immigration and nationality law and practice, and enhance the professional development of its members. Sauer has served on the executive board of AILA’s Mid South Chapter since 2008. He has also served as the National Chair for AILA’s New Member Division (previously known as the Young Lawyers Division). Sauer has focused his practice exclusively on immigration and nationality law since 2002, serving the immigration needs of individuals and employers by obtaining visas, permanent residence and citizenship for executives, employees and their families. He also advises businesses on immigration compliance issues. Sauer’s clients include multinational corporations, high tech companies, research facilities, hospitals, universities, and a wide variety of small businesses. Sauer is a frequent presenter on immigration law. Sauer received his Bachelor of Science degree in Business Management from Sy Syms School of Business at Yeshiva University, in New York, and his Juris Doctorate degree from Yeshiva University’s Benjamin N. Cardozo School of Law. For more information on Ari Sauer, see his online bio. 34
SHIRLEY BUTLER HEADS UP HR AT CUMMINS MID-SOUTH, LLC Shirley Butler joined Cummins Mid-South, LLC in January 2012 as Vice-President of Human Resources which includes human resources, training, safety, career development, and recruiting and benefits administration. Shirley is a native Memphian and has over 25 years work experience in the human resources field with positions held at Manpower, First Tennessee Bank and leadership roles in her 19 years with ServiceMaster in TruGreen, American Home Shield, ServiceMaster Clean, Merry Maids and AmeriSpec divisions. Shirley received her Bachelor’s degree from Christian Brothers University in Marketing/Management. In 2004, Shirley was awarded her PHR Certification and has served as a past board member of SHRM Memphis. She was a graduate of the Leadership Memphis class of 2008, has received additional certifications from the University of Michigan in Labor Contract Negotiations, Positive Management Leadership (PML) in Atlanta and is a Six Sigma Green Belt and served as a Six Sigma Project Sponsor. Pamela B. Martin Receives CCP Certification Pamela B. Martin, Compensation Advisor for ServiceMaster Company has received certification as a Certified Compensation Professional from the WorldatWork. Pamela has been with ServiceMaster for 4 years and has worked in the compensation area of Human Resources for 5 years. Prior to moving to Compensation, Pamela was an HR Generalist. Pamela received her Bachelors Degree in Business Administration and Human Resource Management at the University of TN at Martin. She received her Masters Degree in Human Resource Management from Central Michigan University. Pamela is a member of the Mid-South Compensation Association.
Jackson Lewis LLP is pleased to announce the firm was included in MultiCultural Law magazine’s 2012 nationwide listing for the
“Top 100 Law Firms for Diversity” With over 700 attorneys practicing in 49 locations nationwide, Jackson Lewis provides creative and strategic solutions to employers in every aspect of employment, labor, benefits and immigration law. Our firm has one of the most active employment litigation practices in the U.S., including a current caseload of over 5000 litigation matters and 300+ class actions. To learn more about our services, please visit us online at www.jacksonlewis.com.
999 Shady Grove Road, Suite 110 • Memphis, TN 38120 (901) 462-2600 • James.Mulroy@jacksonlewis.com
HR PROFESSIONALS QUARTERLY SEMINARS
HR
STRATEGIC
LEADERSHIP for HR Executives
In partnership with SHRM-Memphis announces thewith 3Rd of 4 quarterly HR Seminars for 2012. In Partnership SHRM-Memphis Announces the 1st of 4 Quarterly HR Seminars for 2012
Whatyou youreally really need know to position What need to to know to prepare for yourself Strategic HR on Leader for your health careasreform’ s impact employer sponsored health organization inplans. 2012. • S trategies and Latest Trends in Wellness and How They Affect • Learn about a new tool that will help you determine whether to use the State Health Care Exchange or Your Health Plan
continue with your current plan.
• Learn what plan sponsors need to know about 408(b)(2) disclosures & fee disclosures to participants in 2012. • The Supreme Court and Health Care Reform: Where Do We Stand? • Learn about the new social media screening tool that provides a comprehensive candidate profile compliant with FCRA, Title VII, and state laws.
The keynote speaker will be Bob Radecki, President of Benefit Comply, LLC, a health and welfare plan compliance consulting firm located in Minneapolis, MN. Bob has been the featured speaker at dozens health reform seminars and webinars, Speakers Jennifer nationwide attended by overinclude 5000 employers Kiesewetter with Kiesewetter and was featured speaker at the Minnesota Law Firm, LisaConference. May with Data Facts, SHRM 2010 Annual
and Cynthia Y. Thompson,
Editorspeakers | Publisher of HR Professionals Additional are Jennifer Kiesewetter Magazine and of May with with Kiesewetter Law Principal Firm and Lisa Data The Facts, Inc. Thompson HR Firm LLC.
• Status of Health Care Exchanges
• Strategies to Decrease Compensation Expense
• How will different potential Supreme Court decisions affect health reform’s impact on employer plans? • How to Set Up a Common Review for Your Company • Details on the significant 2014 health reform provisions • How to calculate potential employer penalties • EFFECTIVE USE of Lump Sum Payments • How will Medicaid expansion affect my employer health plan? • Turnover as a Compensation Strategy • What is the real cost of dropping employer sponsored coverage? • How and when will employees qualify for a subsidy to purchase individual insurance?
Join us Thursday, October 11th
at theusCrescent Club from 3:00 Join Thursday, February 16th PM to 5:30 PM.
at the Crescent Club from 3:30 PM to 5:30 PM Wine and cheese reception to follow. Meet the speakers and get answers to your questions!
To register, RSVP to Cynthia@HRprosMemphis.com To register, RSVP to Cost: $45 for SHRM members Cynthia@HRprosMemphis.com and $50 for non-SHRM members. Cost: $45 for SHRM members and Pre-registration is required. You may $50 for non-SHRM members. pay by check or credit card. Pre-registration is required. You may pay by check or credit card. HRCI CREDIT PENDING
This program has been approved by HRCI for 2 recertification credit hours.
Wine and cheese reception to follow. You will have the opportunity to get answers to your questions from the presenters.
35
Smart Screening.You Smart Hiring. Information Trust.