Employer Insights January/February 2008
President’s Message
We’re Moving January 28!
MEA King of Prussia Training Center The Atrium 234 Mall Blvd., Ste. 200 King of Prussia, PA 19406
Upcoming Events New Public Seminars American English Pronunciation 1/9 thru - PA (8 sessions) 2/27 Business Communication for 1/11 thru Multinational Professionals - PA 1/25 (3 sessions) Successful Business Writing: An ESL Workshop (Two days) – PA
1/22 & 1/29
Access 2007: New Features - PA
2/8
Excel 2007: New Features - PA
2/8
PowerPoint 2007: New Features - PA
2/27
Word 2007: New Features - PA
2/27
Total Rewards Program- PA
1/22
Paid Time Off Plans - PA
2/13
Conflict Management - NJ
1/31
Briefings NJ Wage and Hour – NJ 401 (k) Plan Briefing– PA NJ FMLA/ADA/Workers’ Comp – NJ PA FMLA/ADA/Workers’ Comp – PA Recruiting Tips Lunch-n-Learn – PA
1/10 1/17 1/23 2/7 2/28
MEA Finds a New Home in King of Prussia
After 40 years on Trooper Road, MEA’s headquarters, training center to relocate to the Atrium building When MEA employees enter their new offices in the Atrium in King of Prussia on January 28th, it will mark the beginning of a new chapter in our extraordinary 104 year history. We’ll say goodbye to an old friend on Trooper Road and hello to new and exciting office and training space in the heart of a vibrant business community in King of Prussia. When the move is completed later this month, MEA will occupy a 7,000 square foot customized space on the third level of the Atrium building on Mall Boulevard. As part of this move, we’ll end our forty year run of building ownership and become a tenant of Kravco Simon Corporation, the same organization that owns and operates the King of Prussia Mall. Our move comes in conjunction with a three-year strategic plan that commenced in late 2006 which included the evaluation of a number of decision points related to the Trooper Road facility and our space needs. Among them were the age of the building and member feedback regarding accessibility of our location in traveling to and from our seminars and events. The committee’s view was that, among other things, traffic conditions would continue to pose challenges for MEA members commuting from outside the region, particularly along the Route 422 corridor. We also recognized that we have evolved over the past forty years
Jim Devine, President & CEO jdevine@MEAinfo.org
relative to our space needs. Like any dynamic business we had to evaluate refurbishing and changing the layout of our existing space vs. finding a new space to better accommodate our needs. Geis Realty did a marvelous job through its agent Dave Morris to find a buyer and locate new space for us quickly. It was nothing short of amazing that a buyer presented itself when it did and precluded the need for us to ever put the building on the open market. As to our new space, the story is equally as remarkable. Dave’s fortuitous meeting at a local grocery store with an old real estate colleague identified the Atrium as a potential space for us. Previously, we had investigated space in Oaks, Plymouth Meeting and Berwyn, however, after extensive analysis of member and employee zip codes and area rents, we determined that King of Prussia offered the most value and centralized accessibility. Our employees are excited about please turn to page 6
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Membership
Welcome New MEA Members! USSC LLC – Exton, PA - Manufacturer of mass transit seating Orthovita Inc. – Malvern, PA - Developer & distributor novel, high-tech, synthetic-based biomaterial products Publishers Circulation Fulfillment Inc. – Towson, MD - Newspaper circulation Greater Philadelphia Urban Affairs Coalition – Philadelphia, PA - Non-profit community based organization What’s the Big Deal Inc. – Eagleville, PA - Internet and retail vitamins and health foods IT Evolution Inc. - Camden, NJ - IT Consulting
Surveys, Surveys, Surveys!
Days of Caring
“Days of Caring” the annual United Way Campaign designed to make a difference, was a day MEA employees will not forget. On September 19, 2007, MEA employee volunteers planted, painted and helped, along with volunteers from other companies, to spruce up the Pathway School. The volunteers performed tasks that might otherwise be put off, and on this day of giving, the MEA bunch met the challenge.
MEA On The Move
Chris Whaumbush, Manager, Membership Development and Joanne Powell, Manager, Membership & Marketing Administration attended the 8th annual Delaware SHRM State conference held October 9-10, 2007 at the Chase Center in Wilmington. The theme of this year’s conference was “Pathway to Performance: Motivating and Rewarding People to Succeed.”
Look for participation information within the next few weeks for the 2008 MEA Regional Compensation & Benefits Survey. The deadline for participation will be April 15, 2008.
Chris and Joanne also attended the Delaware Valley HR Partnership 2007 Annual Summit on October 15, 2007 held at the Philadelphia Marriott. This was a joint conference of the Philadelphia SHRM Chapter and the Greater Valley Forge HR Association. The theme of the conference was “The Business of You!” - How to Achieve Amazing Results.
Membership Facts & Figures MEA’s 2007 Wage & Salary Survey Report published this past summer indicated that hiring was down in manufacturing, but pay rose 2.5 percent, more than the 0.5 percent increase from 2005 to 2006. Lower-level welders saw big hikes, up 22 percent, as did midlevel machinists, up 20 percent to $18.14 an hour. Novice machine tool operators lost ground, with pay declining nearly 25 percent to $10.78 an hour. 2
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Membership
Member Case Study
Superior Tube Company, Inc. Nuclear medicine, surgical instruments, heart valves, and airplanes: what do they have in common? The answer is precision tubing from Superior Tube Company, Inc. (STC). Superior Tube Company, Inc. is a manufacturer of small diameter close tolerance specialty tubing that has produced items in hundreds of alloys in both seamless and weldrwan® grades. Superior Tube Company, Inc. founded in1934, is not a popular brand name but its products are in some of the world’s most visible and important products. STC tubes are used in America’s space program, in the country’s defense industries from fighter jets to submarines, and in a host of life-saving medical devices including heart pacemakers and arterial stents. STC is certified by the National Aerospace and Defense Contractors Association and has the ISO 9001 certification for Quality Management process management. With a 30-year manufacturing background, the company’s President and CEO, Anthony J. Jost understands how critical it is to provide tubing of unparalleled quality and matchless precision. Superior Tube is continuously improving quality by measuring all areas, and as goals are reached performance is rewarded. Operational excellence is defined in 5 components: Housekeeping (being organized), Safety, Quality, Service and Performance (productivity at a competitive cost). Mr. Jost’s vision is to be the “absolute leader in the world wide small diameter close tolerance metal tube market.” In order to accomplish his company’s goals, Tony believes that process quality control and employee involvement is of utmost importance. Given technology changes and today’s lean environment Mr. Jost said: “Training is critical to keep the workforce capable to identify and deal with the constraints that the business has to overcome.” Recently, STC has partnered with MEA to update employee skills that will be needed for the workplace of the future. In summer 2007, over 200 employees participated in computer training at MEA’s location in Valley Forge. Recently, all employees completed a course in “Effective Communications” with MEA facilitator Larry Cox (pictured above) at Superior Tube’s Collegeville location. The MEA training plan was developed in conjunction with Megan Nyzio, PHR, Human Resources Manager. Employee and supervisory training will continue through next year. “Training is a catalyst to improving the skills and abilities of our experienced workforce,” says Anthony J. Jost.
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Employee Benefits
Investment Policy Statements for your 401(k) Plan Contributed by: The Standard
An Investment Policy Statement (IPS) is a guide for fiduciaries in making investment decisions. It is not required by ERISA, but it is good protection for plan fiduciaries – and its absence may weigh against them in certain circumstances. Therefore, The Standard recommends that every plan adopt an IPS, follow it and document that it is being followed. Many defined contribution plans comply, or attempt to comply, with ERISA section 404(c). Compliance with this provision and its related regulations relieves fiduciaries of responsibility for the investment decisions of plan participants. But fiduciaries retain responsibility for selecting and monitoring investment options offered to participants and are held to the standard of a prudent expert. Without guidelines, selecting investment choices from among the growing universe of choices is a haphazard activity.
NEW BRIEFING No Charge to Members
That’s why a good investment policy describing how investment options will be chosen and monitored is important. Regardless of actual investment returns, fiduciaries can fulfill their ERISA obligations by adopting and following a sound process. Developing an IPS When it comes to developing an Investment Policy Statement, keep in mind that you’re required to follow the document you create – or to amend it every time you make a decision that falls outside the rules you’ve established. In the long run, it’s easier to write an IPS in broad terms rather than create one that is highly specific. For example, if you mention specific investment options, you will be required to maintain those options or to amend your IPS if they are not available. Similarly, identifying a specific asset class requires you to always have an option available in that asset class or to amend the IPS.
An IPS establishes a framework for making investment decisions and managing fiduciary risk. It may include: • The plan’s purpose, • Plan investment goals, • Intent to comply with ERISA sec. 404(c), • Appropriate asset classes, • Criteria for selection, monitoring and terminating investment options, • Special provisions and restrictions, • Participant communications, including information about investments. If you’d like more information on developing an IPS, please give the MEA Employee Benefits Services Team a call at 800-662-6238. They can send you a complete copy of The Standard’s publication, Investment Policy Statements: A Guide to Developing a Statement for Your Plan.
Evaluating the Effectiveness of Your Company’s 401(k) Plan Thursday, January 17, 2008 • 9am-11am MEA Valley Forge Training Center Do you understand the key issues surrounding your 401(k) plan? This briefing is being offered at no charge exclusively to MEA members and will cover: • How to control and negotiate fees with providers • Uncovering the costs of your current plan • Today’s fiduciary liability issues • The importance of investment advice and how to provide it to your employees • Open architecture plans • How to evaluate plan investment alternatives • Investment policy statements • Plan design, technology and operational issues • A brief summary of the MEA “Mainspring” 401(k) Multiple Employer Plan Don’t miss out on this great “Members Only” event. Register today at registration@meainfo.org or through our website at www.meainfo.org.
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Employee Benefits
COBRA: Compliance or Confusion? MEA receives several calls a week regarding COBRA compliance and we know it is an area that can cause great confusion for those who have to administer their company’s program. Test your knowledge by determining if each statement below is compliant with the requirements of COBRA or if it’s potentially non-compliant:
EAP Corner I am a new supervisor, and employees have begun coming to me with their need to talk about emotional work issues. They require a good listener. The issues include concerns about downsizing, performance, co-worker conflicts, angry customers and more. How can I be a good listener?
1. I can hand COBRA election notices to employees on their last day of employment. 2. Our policy manual/handbook contains the general COBRA notice, so that is sufficient. 3. Our employee dropped his spouse at open enrollment so I didn’t question it as a COBRA event. 4. We don’t need to offer COBRA coverage on our Flexible Spending Accounts. 5. We are a small employer with 18 full-time and 5 part-time employees so we don’t have to comply with COBRA. 6. An ex-employee elected COBRA and paid the premiums for January and February, 2007. Payment is due the first of the month and it’s now March 15th. Since we haven’t received his premium, we are terminating his coverage. 7. An ex-employee declined coverage, but her spouse elected and has been paying premiums. Since the ex-employee waived coverage, there is no way she can come back on our plan through COBRA. Because MEA is committed to bringing quality education to our members through training and organizational development, we are holding our next COBRA Administration Workshop on February 20, 2008 from 9:00 am to 1:00 pm. MEA King of Prussia Training Center, The Atrium, 234 Mall Blvd., Ste. 200, King of Prussia, PA. Member: $150 Non-Member: $210 If you’d like more information on the workshop, please give the Benefits Department a call at 800-662-6238 or refer to our Web site.
The “active listening model” will help you demonstrate empathy with your employees in job-related discussions. Start by inviting an employee to sit down in your office. Make the person comfortable, and demonstrate that you are glad he or she came by to talk. Let the employee talk about the issues or concerns. The more you talk, the less your employee will talk, so be careful about jumping in too quickly. When responding, don’t say, “I know how you feel.” Instead say, “It sounds like you were really frightened by that customer’s tone of voice.” Paraphrase what was said so your employee feels heard. Ask questions using “who,” “what,” “where,” and “how.” These four words elicit additional information, and your employee is less likely to forget something important in his or her story. Remember, this is not psychological counseling. These are practical listening skills for improving any relationship. A good EAP will also act as an “MAP” (Management Assistance Plan); MEA’s EAP, through Care Plus Solutions, offers this level of assistance. To learn more about implementing an EAP at your company, please contact the MEA Benefits Department at 800-662-6238 or send an email to benefits@meainfo.org.
P.S. The statements above should have all been answered “potentially non-compliant”. Why not let MEA replace the confusion with confident compliance; register today! For Your Benefit: Now that open enrollment has been completed and your 2008 benefits program is in place, don’t forget to check your invoices over the next two to three months to make sure plan design and enrollment changes are reflected correctly. It is not uncommon for changes to be missed since this is the busiest time of year for health insurance carriers. www.MEAinfo.org
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President’s Message MEA’s New Home continued from page 1
the move and are eager to welcome our members and guests to our new location which includes two large training rooms for our seminars, briefings and other events as well as office space for 25 employees. There is also, as the name of the building suggests, a lovely atrium lobby space with gardens and music playing throughout the day. We expect that members and employees will find it to be a relaxing environment for break time. And of course, the King of Prussia Mall being in walking distance should be a convenient stopover point
for visitors. A member/guest reception is being planned for March/April. Please watch for an invitation soon. We hope you’ll join us for the reception and visit MEA often in our proud new space. We’re easy to find now, just look for our logo on the Atrium façade. — Jim Devine MEA King of Prussia Training Center The Atrium 234 Mall Blvd., Ste. 200 King of Prussia, PA 19406
According to Montgomery County deed records, MEA’s predecessor company, the Manufacturer’s Association of the Delaware Valley purchased the 945 S. Trooper Road property in January 1968. The property, which has not changed in size or exterior construction since its purchase date, consists of a 10,044 square foot, single story building on 1.418 acres at the corner of Van Buren Avenue and Trooper Road in Lower Providence Township.
Getting to Know the Staff at MEA Kathy Muscarella, Sr. Human Resources Consultant Kathy Muscarella joined MEA in October 2007 as a Sr. Human Resources Consultant in the HR Services Department. Kathy is primarily responsible for heading up the Recruitment Desk, providing diverse recruiting services to MEA members. In addition to her recruiting role, she provides consulting, project management, and training services to organizations in the areas of Employment, Employee Relations, and general Human Resources services.
Kathy brings over 17 years of human resources experience in generalist, specialist, and management roles. She has held positions in both staff and consulting roles, with clients ranging from start-ups to largescale organizations in a variety of industries including technical services, manufacturing, food service, healthcare and professional services. Kathy graduated Cum Laude from Temple University with a Bachelor of Business Administration Degree in Human Resources.
Melissa Maurer brought her positive attitude and benefits expertise to MEA in August of 2006, joining the MEA Team in the Employee Benefits Department as an Account Executive. As an active participant in the revamping and upgrading of the Benefits Department Melissa expanded the services offered by the department and worked extensively to heighten the level of service provided to members.
Melissa brings over 25 years experience in the health insurance field to MEA and has worked on the provider, broker, carrier, and employer sides of the industry. Her client groups have varied in size, from 2 to 5,000 with a diverse group of businesses. Melissa organizes monthly events at MEA with students from The Pathway School and has served on several Board of Directors, including the Bucks County Association of Insurance and Financial Advisors. please turn to page 16
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Human Resources
HRAnswersNOW
Hotline Q&A
® Q
Our county requires us to deduct an EMS (Emergency Medical Services) tax of $52.00 per employee per year. One of our employees stated that he is exempt from paying the tax because he is a veteran. Are there any employees who are exempt from paying the EMS tax?
A
The EMS tax is required of all employees with the exceptions of clergy and active duty military personnel. Veterans are not exempt from paying the tax. According to the ordinance, “The following activities, employment, and jobs will generally not be considered occupations under 72 Pa.C.S.A. § 5453.201(b), and as defined in the ordinance and/ or resolution: a. Active service in the armed forces (Soldiers’ and Sailors’ Civil Relief Act); b. Members of the religious clergy; c. Involuntary employment imposed by law; and d. Isolated employment that does not constitute a substantial exercise of the privilege of engaging in an occupation. Isolated\ employment means any employment that is so inconsequential or trivial that to levy a tax on the occupation would be confiscatory. Some examples include occupations performed by itinerants, election boards and traveling entertainers.
A new internet resource that’s included in your MEA membership at no additional charge HRAnswersNOW - the perfect companion to the MEA Hotline! Whether you manage an HR department or you are the sole HR person in your organization, HRAnswersNOW is a valuable, easy-to-use resource that provides expert guidance on a variety of workplace-related issues. If you prefer to research issues on your own, HRAnswersNOW is the ideal solution for you to use in connection with the Hotline. MEA’s Hotline specialists use the same tool and can help guide you to an answer while consulting with you on practical solutions to your issues. HRAnswersNOW, offered to MEA members through a partnership with Commerce Clearing House, (CCH) includes a wealth of information to help you manage your workplace issues more effectively. • Topic-specific employment law summaries & explanations • Summary of employment laws for all 50 states • Federal laws and regulations – full text and summaries • CCH explanations – practical HR guidance • HR Quick Links – fast access to a variety of HR tools • HR Trend Reports Designed by HR Professionals, for HR Professionals – Topics are presented in a straightforward question-and-answer style and arranged in general categories that mirror the actual administrative areas of common office environments. Access HRAnswersNOW through the MEA website at www.meainfo.org. Click on the HRAnswersNOW link on the upper left hand side of the home page and enter your member email address and password. Look for the HRAnswersNOW logo in the middle of the Links & Forms page.
For more information, contact the Human Resources Department at (800) 662-6238 or hrservices@meainfo.org.
HR Policy Pointer: The Immigration and Nationality Act mandates the completion of I-9s. One of the acceptable documents to complete the I-9 form is a permanent resident card. Did you know that even if the card expires, you are not required or permitted to go back to the employee to get a copy of their updated permanent resident card? According to the U.S. Citizenship and Immigration Services website, “The terms, Resident Alien Card, Permanent Resident Card, Alien Registration Receipt Card, and Form I-551 all refer to documentation issued to an alien who has been granted permanent residence in the U.S.. Once granted, this status is permanent. However, the document that an alien carries as proof of this status may expire…When these cards expire, the alien cardholders must obtain new cards. An expired card cannot be used to satisfy Form I-9 requirements for new employment. Expiration dates do not affect current employment, since employers are neither required nor permitted to re-verify the employment authorization of aliens who have presented one of these cards to satisfy I-9 requirements (this is true for conditional residents as well as permanent residents). Note: Even if unexpired, “green cards” must appear genuine and establish identity of the cardholder.” For more information about I-9s visit: http://www.uscis.gov/
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For more information: http://www. hab-inc.com/content/emstrules.htm MEA Hotline: (800) 662-6238
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Human Resources
A Powerful Strategy To Retain Top Performers: Communicating The Total Cost Of Benefits Carrie Theisen, MEA Senior HR Consultant
Communication of the total cost of benefits programs (total rewards), rather than the actual richness of benefits programs, is the key to employee benefits satisfaction. Watson Wyatt’s WorkUSAŽ 2004 study studied the satisfaction level of employees regarding the benefits programs provided by their employers. The study compared the benefit satisfaction levels of employees who work at organizations with rich benefit programs compared to the benefit satisfaction levels of employees who work at organizations with less rich programs. Interestingly, the study showed a 22% employee
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satisfaction level for those who work at organizations with rich overall benefits but poor benefits communication strategies, compared to a high 76% employee benefits satisfaction level at companies who effectively communicate the value of less generous benefits. Employee satisfaction is correlated with employee retention, and both satisfaction and retention increase when total rewards are communicated. The study also linked higher employee turnover with poor benefits communication strategies. Watson
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Wyatt also found that the turnover rate of top-performing employees is 17% at companies who offer a rich benefits package but do not communicate it effectively. In contrast, the turnover rate for top performers is just 12% at companies who offer a less generous benefits package but effectively communicate its total value to employees. The results of the study correspond with actual experience of organizations who communicate the total cost of employee benefits through annual Total Rewards
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Human HumanResources Resources
A Powerful Strategy... continued from page 8
Statements. Companies find that employees are pleasantly surprised when they receive data indicating the total cost of their benefits programs, and respond positively. Total Rewards Statements are a cost-eective tool to communicate the total cost of benefits to employees. The best statements are bright and colorful; full of graphics and pictures. The statements should be personalized for each employee so that employees have a better understanding and appreciation of their specific benefits and compensation provided by the company. This can help improve morale, lead to lower turnover and
develop appreciation for the high costs of benefits. Statements typically include a summary of the benefits provided, an outline of the annual costs and a graphic display of the various components of an employee’s total rewards. Total Rewards Statements are a cost-effective vehicle to ensure that employees understand the value of the benefits provided, raise benefits satisfaction levels, and lower turnover. MEA is excited to announce that we now offer colorful Total Reward Statements for our members at a nominal price. We can prepare a 2 page (refer to sample on pages 8-9) or a 4 page style booklet. For more information about Total Rewards statements, contact Carrie Theisen at (800) 662-6238.
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Training & Development
Soft vs. Hard Skills: Will The Real Workplace Skills Please Stand Up? By Clara Console, MEA Director of Membership, Training and Marketing
If someone were to ask you, “what are the best skills to have, in general, to be successful”? How would you answer that question? Would you answer that a person needs technical skills, or would you answer that a person needs people skills? I would answer that question by saying that a person should have a healthy combination of the two. In fact, research conducted with Fortune 500 CEOs by the Stanford Research Institute International and the Carnegie Mellon Foundation, found that 75 percent of long-term job success depends on people skills, while only 25 percent depends on technical knowledge. Ultimately, most people will need to deal with customers, colleagues, bosses, managers and subordinates in their jobs and therefore, soft skills are essential to becoming successful at most jobs. Some of the top 60 soft skills (www.workforce.com), include: Math, Safety, Courtesy, Honesty, Grammar, Reliability, Flexibility, Team Skills, Eye contact, Cooperation, and Adaptability. Unfortunately for those of us involved in training, “soft skills” have never received the kind of respect they
deserve. Maybe it’s just semantics, but the word “soft” does nothing to support the immense power that these skills actually have. At MEA we believe that investing in your employees’ soft skills will affect their employers’ bottom lines. Whether they are working with customers and effectively communicating the value of a product, or they are team leaders who need to make their teams more productive, these employees will need to have good people skills. Other skills that have been found to be critical for making good employees include positive work ethic, good attitude, and desire to learn and be trained. The question is: are organizations willing to invest in training their employees on these “soft skills?” Can training managers make good business cases for investing in this type of training? For HR and Training managers, it will be important to be able to speak in business terms when requesting funds for “soft skills” training. You will need to make a financial case that by investing in this type of training, the organization will ultimately have more productive employees, and therefore affect the bottom line. Understanding
how to make that case is critical. HR and Training managers will need to use their “soft skills” to get the hard dollars!
Tips of the Trade: With talent shortages poised to hinder many industries, companies need to take talent management by the reins and ensure competencies and skills held by workers in the firm continue to expand. Managers play an integral role in talent management because they can provide the support system, resources, and guidance workers need to enhance their work experiences. First, managers must energize their employees, making sure workers have goals to achieve, and those goals should empower workers to take on further responsibility. Secondly, managers need to become the cheerleading section for their workers, providing them with helpful feedback and encouragement. This supportive atmosphere will enable workers to communicate openly with managers about mistakes or procedures they think should be changed. Good managers guide and channel their employee’s talents, letting them know it is okay to make mistakes. Finally, experts stress that the most successful managers value effective, one-on-one communication. From ASTD The Buzz, Having Talent Isn’t Enough, You Must Leverage It Bizjournals (10/08/07); Nelson, Bob 10
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Training & Development Announcing a new service for MEA Members Only: MEA Online Learning Center – e-learning courses and lending library
MEA has always been a trusted resource for its members’ training needs. MEA has partnered with Business Training Library (BTL) to offer online training courses and a Video and DVD lending library to MEA members. If you are considering making online courses available to your employees and don’t know which vendor to choose, MEA has done the work for you! Other Employer Associations across the USA have been using BTL for many years. MEA’s members can now offer their employees access to many courses at affordable rates. This service offers 2000+ world-class online courses using a state-of-the-art learning management system, as well as many
MEA Online Learning Center
videos and DVDs. As the organization’s contact, you can customize your organization’s learning site, select courses, and track all learning activities from web-based courses to your classroom courses. Visit MEA’s home page on the website at www.meainfo.org and look for the link to MEA’s Online Learning Center, or call the MEA Training and Organizational Solutions Department at 800-662-6238.
Training and Development Roundtable
MEMB E ONLY!RS
February 22, 2008 • 9:00am to 11:30am
MEA King of Prussia Training Center, The Atrium 234 Mall Blvd., Ste. 200, King of Prussia, PA
Highlights from September’s meeting: • Discussed challenges faced by each organization - members provided possible solutions • Training vs. Organizational Development Solutions – which challenges could be solved by training versus an OD approach • Online learning – introduced MEA’s Online Learning Center to members MEA Roundtables, a service to Members, are intended to give the members’ staff opportunities for professional exchange with their peers. The Roundtables are an exclusive peer forum for discussing questions and issues related to a professional
field and for drawing on the combined business experience of peers. The meetings also contribute to the participants’ professional development through the peer interactions. MEA’s role is to create and maintain this professional environment for sharing and networking while sparing participants and their companies the burden of having to spend their time and effort organizing and facilitating this process. MEA is the catalyst for the formation of the Roundtables and the sharing of information. MEA staff members facilitate the meetings and provide administrative and marketing support.
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Call Susan Zoll, Manager of Training Operations and Marketing at 800-662-6238 to ask for your guest seat to the next T&D Roundtable
Peer Group Roundtables Chief Executive Officer
1/16
Employee Benefits
1/24
Health & Safety
2/5
Human Resources - PA
2/12
Training & Development
2/22
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Leader to Leader
A Super Worker Does Not Always a Supervisor Make Jim Devine, MEA President & CEO
Let’s say you have a superstar employee (we’ll call her Pat) that you can’t live without and feel you need to promote to perhaps elevate her pay and ensure her continued engagement and development. You may be under the impression that Pat’s stellar performance in an individual contributor’s role qualifies her for advancement into a supervisory position. However, without careful forethought, the move could backfire for you, and for Pat, if not handled properly. Following are four potential scenarios to consider including questions you should answer before promoting Pat and common traps to avoid in the process: Promotion over peers Will the promotion create a situation involving Pat managing former departmental peers? If so, the side-by-side relationships that previously existed for Pat will change dramatically. You’ll need to stay
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close to the situation and intervene early on to ensure Pat’s former peers know that she is supported. Always speak supportively of Pat. Always! Pat’s former peers, and now direct reports, may resent the move and may attempt to keep themselves in direct contact with you. They may be testing your resolve for supporting Pat to see if there are any cracks in the armor so to speak.
of the relevant issues up front as part of her decision to take on the new position. Your dialogue with Pat as it relates to the difficult employee may now need to take on a different tone than in the past to ensure the difficult employee is either managed up or out – and Pat is adequately prepared to handle it.
Perception of peer supervisors You shouldn’t shy away from Difficult employee to manage promoting Pat because of a Will the promotion involve Pat taking perception you may have developed on the management of a difficult about Pat’s acceptance by peer employee? Is that employee someone supervisors. However, obtaining their you previously managed directly? If feedback and gaining their buy-in up so, and you think you can make your front may make life easier for Pat in problem go away by putting someone her new role. Having Pat successfully else in between, think again. Without complete a visible assignment prior experience and/or proper right away will demonstrate her training, Pat’s shortcomings and lack of ability to get the job done and may experience as a rookie supervisor may help to erase doubt and accelerate put you right back into the middle of acceptance by her new peers. the situation with elevated emotions to boot. Pat needs to be made aware Creation of indirect reporting relationships It bears mentioning separately that similar to the issue of promoting Pat over her peers is the potential challenge of working with your former direct reports in an indirect reporting relationship. This is something you need to deal with effectively for your own success in transitioning as much as Pat needs you to handle it for her success as well. Gaining the team’s respect for Pat and retaining it for yourself in the process is essential. Much of this is up to you in changing your behavior and delegating through the Pats of the world to complete work assignments. Avoiding the temptation of continuing to give direction to those who previously reported to you will be empowering and build confidence in your new supervisor. www.MEAinfo.org
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From Beyond the Region
The Best and the Worst
Kenny L. Colbert, President, The Employers’ Association I met a gentleman over the holidays who owns a small business in our area. Our conversation drifted towards the subject of employees and their performance. He told me about a very unique practice in his business. Every two years or so, he meets with his small administrative/managerial team and they conduct a peer review process using predetermined criteria that he has established. At the end of the process, he knows which employee ranks as his top performer and whose performance has been least effective—all based upon peer reviews. He then initiates action to remove the low performer from the workforce. This may take place immediately or it may be a process that takes several months. When I asked him why he adopted such a radical approach to running a business, his reply was, “You can always find someone better than your worst employee.”
While I have very mixed emotions about his performance review process, it does give him some indication of his best and worst performers. In addition, I do have to give him credit—he is willing to make a bold move to eliminate his worst performer—even if the employee is a “satisfactory” employee. He feels he can do better! This business owner spends several hours per week informally meeting people— always “scouting” for potential employees for his company. That is a trait I admire—a businessperson who is constantly seeking new talent to enhance his operations. This owner’s approach is quite radical, but it should cause you to consider a number of questions: Do you know who your best performer is? Your worst performer? What are you doing to enhance the skills of your worst performer? Or, what are you doing to
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replace him / her? Are you always on the lookout for new talent to bring into your organization— even if you have no current or projected openings? Your people can differentiate you from your competition. Do you have the best team in place? Think about it. Kenny L. Colbert President The Employers’ Association Charlotte, NC MEA is part of the Employer Association Group (EAG), which consists of 66 employer associations across the country. If your company has an office in another region and you’d like to see an article from the region, please contact Joanne Powell at jpowell@meainfo.org.
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Legal Brief Jury Awards $11.6 Million in Punitive Damages in Sexual Harassment Case Involving the New York Knicks Nancy DuBoise, MEA Employment Attorney On October 2, 2007, a New York jury handed down a verdict in a sexual harassment case against Madison Square Garden (which owns the New York Knicks), its Chairman James Dolan and Coach Isiah Thomas. The case is probably most educational for demonstrating to employers what they should not do when faced with an employee complaint of sexual harassment, and just how damaging mistakes such as those made by MSG can be. Ms. Anucha Browne Sanders was hired by the Knicks in November 2000 as its Vice President of Marketing. Isiah Thomas was hired by the team in December 2002 as (initially) President of Basketball Operations, and later became the coach. Browne Sanders and Thomas had differences in management style and philosophy, and had an uneasy working relationship. In the lawsuit she ultimately brought after being terminated, Browne Sanders alleged that Thomas sexually harassed her over a two-year period. His harassment consisted of using profanity and repeatedly calling her a “bitch.” At a December 2005 basketball game, Thomas tried to kiss her. When Browne Sanders recoiled at the unwelcome attempted kiss, Thomas asked “No love today?” In June 2005, Browne Sanders raised questions about alleged sexual harassment of other female employees by Knicks personnel. Her concerns led to MSG beginning an internal investigation in December 2005. Why MSG waited six months before beginning an internal investigation is not clear. In any event, by then Browne Sanders had started her own investigation, and asked some of her staff to document incidents of sexual harassment they had witnessed at work.
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On January 19, 2006, MSG completed its investigation without being able to confirm the allegations made by Browne Sanders, and recommended that Browne Sanders be terminated, and that Thomas receive sensitivity training. Wasting no time, Dolan terminated Browne Sanders that day. Within a week of being terminated from her $260,000-a-year position, Browne Sanders filed a lawsuit in federal court in New York. Her lawsuit alleged sexual harassment and retaliation in violation of the federal, state and city laws. She named as defendants MSG, as well as Dolan and Thomas individually. While individuals cannot be liable for violations of the federal law, they can be held liable under New York State law for “aiding and abetting” acts of discrimination and under New York City law for retaliatory termination. At his deposition before trial, Dolan testified repeatedly that it was not Browne Sanders’ job performance alone but her conduct during the internal investigation into her allegations of sexual harassment that were the basis for his decision to terminate her. Specifically, the fact that she asked other employees to produce evidence of sexual harassment in support of her claims was considered by Dolan to be interference with the internal investigation. Dolan’s testimony was particularly damning for MSG not only because it was inconsistent with what MSG had asserted all along was the sole reason for the termination (i.e. poor performance), but also because it allowed the jury to conclude that Dolan acted, at least in part, in retaliation against Browne Sanders for her protected activity--making a complaint of sexual harassment.
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At the end of a nearly month-long trial, the jury awarded punitive damages. MSG was ordered to pay $6 million for creating a hostile work environment, plus $2.6 million for retaliation. Dolan was ordered to pay $3 million for retaliation. While Thomas was found liable for aiding and abetting, he was not ordered to pay any punitive damages. The Court is likely to render its decision on the issue of compensatory damages, such as back pay and front pay, within a month of the jury verdict. Thus the bill for MSG can only go up from here. In my judgment, MSG made a number of critical errors in its handling of Browne Sanders’ complaint. First, the conduct alleged to have been committed by Thomas and others should have sent a message to the employer that sexual harassment training (or re-training) of its employees was absolutely necessary. Second, MSG should have taken steps to promptly and thoroughly investigate the complaint, and to remedy any harassment. Third, and most importantly, the decision to terminate an employee who complained of sexual harassment–and to carry out that decision so close in time to the internal investigation– smacks of retaliation. Even if the employer’s motive was not actually retaliatory, the timing of the termination appeared to be retaliatory, and that proved to be enough for the jury. If you have training needs in this area, or need guidance in conducting internal investigations into harassment, contact MEA. We can assist you and your management team in understanding and minimizing your legal risk.
Industry Focus: Eye on Manufacturing
NAM to China: Follow the Rules The “Made in China” label could represent a danger to U.S. consumers. Certain imported products may not be as safe as you think. On July 18, NAM Senior Vice President of Policy and Government Relations Jay Timmons told Congress the safety of Chinese imports is of the utmost concern to America’s manufacturers and consumers. In testimony before the Senate Commerce Committee, Timmons pointed to reports of contaminated pet food, fake pharmaceuticals, toys and jewelry with dangerous levels of lead, poisoned fish and other unsafe products as representing a serious problem. Among the examples he offered, Timmons highlighted the experience of Square D Company of Palatine, Ill. This NAM-member company’s reputation suffered when counterfeit circuit breakers manufactured in China were distributed in the United States under the forged logo of Square D. Made with inferior materials, these circuit breakers have failed to trip, allowing dangerous voltage to burn internal electrical wires, sparking house fires and other hazards. With China posed to become the world’s secondlargest exporter—surpassing the United States—it has a responsibility to ensure the safety of its products. The NAM advocates strong action by the U. S. to achieve this end, including expanding efforts to ensure the quality of imports and addressing the resources provided to agencies such as the Consumer Product Safety Commission, the Food and Drug Administration and the
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Food Safety Inspection Service. In addition, China must make broader use of internationally recognized quality certification programs, including permitting U.S. testing and certification providers to operate in China. China must learn to “follow the rules” of international trade, just as the United States and many of our trading partners have been doing for years. To maintain a strong relationship, it is imperative that China recognizes our concerns are based on public safety and protection of intellectual property –not protectionism. American manufactured goods are safer today than ever before. The NAM is committed to doing our part to ensure that reputation and reality remain true in the global marketplace.
The National Association of Manufacturers is the nation’s largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM’s award-winning web site at www.nam. org for more information about manufacturing and the economy.
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Getting to Know the Staff at MEA (continued from page 6) to increase the bottom line. CarolAnne developed a consulting and training firm that specialized in change management. She worked extensively in both the public and private sectors where she provided workplace skills development and custom designed programs for companies such as AT&T, Bell Atlantic, and the JEVS Center for Career Services, Chestnut Hill Hospital, Chilton Company, PECO, Seagate Associates, Scott Paper Company, and U.S. Healthcare. Ms. Minski began her career in Carol-Anne Minski, Manager of the pharmaceutical industry, Organizational Solutions, manages managing several marketing research and oversees on-site organizational departments. While with Rhonedevelopment projects and training Poulenc Rorer, she developed a new programs at MEA. Her background market research division, recruited includes 17 years experience in and hired staff , and implemented new strategic planning, design and training programs for the division. Prior delivery of peak performance training to joining MEA, Carol-Anne worked for programs that achieve company goals the Pennsylvania State University. Most
Beth Ann Mazza, Membership Ambassador, joined MEA’s Membership department in October 2007. As Membership Ambassador, Mazza represents the Association through on-going communications to member organizations and develops and manages member events designed to increase member 16
networking and membership value. She acts as a liaison for members and makes sure their workplace needs are met with accurate information and exceptional service. “It is critical that members maximize their membership at MEA so that they may focus on their core competencies and achieve their business goals,” Mazza stated. Beth Ann will also assist with marketing and public relations in order to update and inform the members and the business sector about MEA. “I am really looking forward to telling our story,” Mazza said. “We have so much to offer the business community. I love to meet new people, build relationships and see their successes!” Mazza stated, “I know in this position I am going to have the opportunity to see a lot of success.” Beth Ann’s professional experience includes over 15 years of public www.MEAinfo.org
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recently, Ms. Minski coordinated the business and information technology internship programs as Associate Director of the Career Development Center at Penn State Abington. Carol-Anne has an MBA from the Philadelphia University and an MA from Arcadia University. She is a member of Greater Valley Forge Human Resource Association, is listed in Who’s Who of Women Executives, and serves on the Leadership Advisory Board for the Eastern Montgomery Chamber of Commerce.
relations, sales, marketing and advertising experience in the private, public, government and non-profit sectors. Some of her past experiences include being a reporter for a local newspaper; activities and communication coordinator for an insurance company; deputy director of Emergency Medical Services for Montgomery County, PA and being an account executive for a biweekly, allied health magazine; a direct mail company and a direct mail newspaper. Beth Ann graduated from Cabrini College in Radnor, PA with a Bachelor of Arts Degree in English and Communications. She lives in the Valley Forge area with her husband, 3 sons and a very large chocolate lab.
MEA Workplace Whiteboard Service Success Loop
Customer Satisfaction and Retention
Business Success
Leadership
Customer Loyalty
Customer Satisfaction
Development Dimensions International
(Heskett et al. 1994.) When employees are more satisfied and committed, they tend to have more satisfied and committed customers.
January – June 2008 Training and Services Catalog is Now Available!
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Attention CPAs – MEA Now Provides CPE Credits The MidAtlantic Employers’ Association has been approved as a registered sponsor on the National Registry of CPE Sponsors. The National Registry of CPE Sponsors is a program offered by the National Association of State Boards of Accountancy (NASBA) to recognize CPE program sponsors who provide continuing professional education (CPE) programs in accordance with nationally recognized standards. Check out MEA’s January-June 2008 Training and Services Catalog for courses that have been approved for CPE credits, or visit our website at www.meainfo.org. If you have any questions, please call MEA’s Training and Organizational Solutions department at 800-662-6238.
a b le Avail ! NOW
2008 Employers’ Guide to Federal & State Employee Relations Laws and Regulations Answers to critical questions at your fingertips – Order today!
Announcing a New Format this year – Pennsylvania, New Jersey, Delaware plus Federal laws and regulations all in one book! Benefits include: All-in-one stop for Federal and State legal questions Easy to understand legal interpretations that go beyond the statute A host of valued-added features – legislative directories, compliance forms, etc. Comparison chart for quick reference Discount available to annual subscribers MEA Members: $95 each (3 or more guides - $75 each) - Non-Members*: $130 each (3 or more guides - $95 each) + Shipping & Handling: $10.00 + Sales Tax (PA & NJ) *All Non-Member orders must be accompanied by payment: include credit card information or check. For more information, or to purchase your copy of the “All in One” 2008 Employers' Guide to Federal and State Laws, contact Kay Dutton of MEA’s Research & Publications department at (800) 662-6238 or email research@MEAinfo.org.
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Surveys & Publications GUIDES
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Highlights of 2007 • HRAnswersNOW – Providing MEA members with expert guidance that’s easy to use, from Commerce Clearing House (see page 7) • Cafeteria Plan Administration Services • COBRA Administration Services • Sales and Sales Management Certificate Programs • Workplace Advisor – a monthly electronic HR compliance update • Strategic Level HRCI recertification courses • MEA Employment Attorney on Staff – Nancy DuBoise • MEA HR Recruiting Specialist on Staff – Kathy Muscarella • MEA Compensation and Benefits Specialist on Staff - Carrie Theisen
New for 2008 • All in One 2008 Employers’ Guide – PA, NJ and DE • Members Only Online Courses and Lending Library • MEA “Mainspring” 401k Plan • Supervisory Certificate Program – Level 2 • Courses for Multinational Professionals • Continuing Professional Education (CPE) Credits for Accountants • MEA Membership Ambassador on Staff – Beth Ann Mazza