May 2007 by MEAinfo

Employer Insights May/June 2007

Highlights of this issue

A Better Way to Find Top Talent

Member Case Study, 3 EAP Corner, 5 Hotline Q & A, 8 Leader to Leader, 12 From Beyond the Region, 13 Legal Brief, 14 Industry Focus, 15

Realizing the Old Process is No Longer the Best Method

Upcoming Events Peer Group Roundtables Training & Development Human Resources Senior Human Resources

President’s Message

5/04 5/18 6/14

I’ve had a good run with my current dry cleaner over the past three years or so. Thankfully, aside from a few minor incidents I’ve really had no reason to move my business elsewhere. However, like most of us I’ve had issues in the past with other proprietors, particularly my last one. I’ll be the first to admit that although I wasn’t happy with broken buttons on my shirts, lost garments and missed delivery dates, I continued to use them. Almost inexplicably I’d return, week after week, only to come away with the same, flat experience. Yet, despite my growing dissatisfaction — and my wife’s urging to make a switch — I’d continue to go

Public Seminars

back, point out concerns and hope the situation would improve. Why did I perpetuate a bad situation as long as I did? Convenience, location and low prices would generally keep me coming back. Although, on closer analysis, it was more likely that I had fallen into a routine that I was comfortable with and that I wanted to work. When I finally took the time to evaluate the cost effectiveness of my approach, including the value of my time and the expense of replacing lost or damaged clothing, I admitted my failed strategy and moved on to what is now a much better solution. We all go through this with just about any task or service we entrust to others. Whether it is dry cleaning or anything else we must deal with at home or at work, admitting that a process isn’t working can be difficult. Sometimes it seems easier to stay the course, particularly when other options are not apparent, or there’s a perception hurdle to get past. It is even more so when, as with a service like dry cleaning, we don’t feel that the decision at hand rises to a level of strategic importance.

Please see page 5

COBRA Administration Workshop

Jim Devine, President & CEO jdevine@MEAinfo.org

6/12

Services The “Rightpath” 401k Plan, 7 HRAnswersNOW 8 Background Check, 9 Reference Check, 9 Drug & Alcohol Testing, 9

please turn to page 6

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Membership

MEA Adds Expertise MEA welcomes Carol-Anne Minski as Manager of Organizational Solutions. Working with MEA members and clients to assess their needs, learn about their problems and brainstorm solutions, Carol-Anne will be managing onsite organizational development projects and training programs. She has 17 years of publicand private-sector experience in strategic planning, design and delivery of peak performance training programs that achieve company goals to increase the bottom line. Carol-Anne most recently coordinated the business and information technology internship programs as Associate Director of the Career Development Center at Penn State Abington. She has an MBA from Philadelphia University and an MA from Arcadia University. She is a member of the 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.

New Members Brightfields Inc. - Wilmington, DE - Environmental consulting and remediation Odyssey Capital - Wayne, PA - Private equity firm Gray Consulting Inc. - Phila., PA - Meeting planning and incentive programs ISA Consulting - Blue Bell, PA - Computer consulting services Ametek Pittman - Harleysville, PA - Manufacturer of electric motors, emulsions, speed changers, drive and gears, relays and industrial controls Produce Marketing Association Inc. - Newark, DE - Not-for-profit trade association serving the entire produce and floral supply chains Unique Indoor Comfort - King of Prussia, PA - HVAC installation & service

“This position brings together all of my previous experiences of working with employers to help employees with their educational plans; developing marketing strategies to recruit and Chris Whaumbush joins the ranks retain students; and collaborating of MEA as Manager of Membership with instructors and employers Development. She will be instrumental on programs for training,” she said. in growing the membership and “Growing the membership at MEA expanding the scope of services will be an exciting opportunity. I currently being provided to member will be exploring new venues to and non-member organizations. create awareness. There are so many Chris brings more than 20 years companies out there that can benefit of experience in adult education, from MEA’s membership and services. recruiting and program development The possibilities are endless!” to MEA. Membership Facts & Figures: If your manufacturing company has been negatively affected by off-shore competition, you may qualify for financial assistance from a U.S. Government Trade Adjustment Assistance Center (TAAC). MEA sponsors the MidAtlantic Trade Adjustment Assistance Center, which covers the five-state area of PA, DE, WV, VA, MD. Since 1974, MATAAC has helped thousands of U.S. manufacturers strengthen and solidify their competitive positions and prosper in the global marketplace. For more information, please go to the MATAAC Web site www.mataac.org. 2

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Membership

Surveys, Surveys, Surveys! The 2007 National Executive Compensation Survey is available in May. The 2007 MEA Regional Surveys are available in June. Preorder at www.meainfo.org/ Employers’ Surveys or contact research@meainfo.org.

Member Case Study

Providing Total Solutions Management for Nonprofit Organizations For Fernley & Fernley, Inc., association management is all in the family. The Philadelphia-based company, which manages more than 25 professional trade associations and societies, was founded in 1886 by hardware store owner T. James Fernley after he got together with others in the same business and formed a hardware association. Today, the growth-oriented, total-solutions management company is in the hands of the family’s fourth generation, great grandson G.A. Taylor Fernley, who serves as president and CEO. Fernley & Fernley provides its clients with management expertise in meeting and trade show planning and promotion, accounting and budget planning services, membership recruitment and retention, database management, strategic planning and marketing and communications strategies. “People are coming to us as a preferred service provider,” he said. The company was recently awarded the contract to manage its own industry trade association — Association Management Company Institute (AMCi), a group of 160 association management companies from around the country. The contract comes on the heels of an acquisition Fernley & Fernley made in 2006. “We purchased a healthcare focused association management company last year, and we’re looking to grow that side of our company,” Fernley said. “We’re also developing strategic alliances with allied partners.” MEA is among those partners. “MEA was instrumental in the hiring of our new HR person, and she’s wonderful,” Fernley said. “We’re looking for ways we can help MEA grow their organization as well.” www.MEAinfo.org

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Benefits

Plan Sponsors’ Guide to ERISA 404(c) By: The Standard

For sponsors of retirement plans in which participants are allowed to direct their own investments, Section 404(c) of the Employee Retirement Security Act of 1974 (“ERISA”) can provide a welcome measure of protection. By meeting all of the requirements of Section 404(c) and related regulations, plan sponsors may be relieved from fiduciary responsibility for the asset allocation decisions made by plan participants. In general, a Section 404(c) plan’s fiduciaries are not liable for losses that result from plan participants’ exercise of control over the assets in their retirement plan accounts. While compliance with Section 404(c) is optional, plan sponsors who allow participants to have control over the investment of their retirement plan accounts, but who choose not to comply with the regulations under Section 404(c), should consider the implications of that decision very carefully. In such plans, the plan sponsor may be liable for the results of the plan participants’ investment decisions, even though the plan sponsor exercises absolutely no control over their decisions.

investment decisions. That information must include: • A statement that the plan intends to satisfy the requirements of Section 404(c) describing the effect of complying with Section 404(c); • A description of each investment option including its investment objective(s) and risk and return characteristics, along with the names of the investment managers, if any; • A description of when and how participants may give instructions relating to investments, transfers, and voting and tender rights, if applicable; • Information about transaction fees and expenses; and • The name, address and phone number of the fiduciary and designated representatives, if any, who can provide this information.

1. The stock must be publicly traded on a national exchange or other recognized market; 2. The stock must be traded with sufficient frequency and volume to assure that participant instructions can be executed promptly and efficiently; 3. The same information provided to shareholders generally is also provided to participants who elect this investment option; 4. Voting, tender and similar rights are passed through to participants; 5. A procedure is established and implemented and a fiduciary designated to maintain the confidentiality of information about participants’ purchase, sale and holding of employer stock and the exercise of voting and other rights; and 6. An independent fiduciary is appointed, if necessary, to ensure that participants are not subject to undue influence with respect to the exercise of shareholder rights.

The plan must supply additional information upon request to plan participants, such as: • A current prospectus, if applicable, Fiduciary Responsibilities While a fiduciary in a 404(c) plan for the investment options the please turn to page 7 plan offers; 404(c) Basic Requirements • The annual operating expenses of For your plan to comply with Section each of the investment options; and 404(c), at minimum it must: • Past and current performance 1. Offer at least three different, information, net of expenses for internally diversified investment each investment option and options that have materially different current value of units or shares. risk and return characteristics; 2. Permit plan participants to transfer Employer Stock their assets among the options as Special requirements apply to investments frequently as appropriate given the in employer stock. ERISA limits the amount of stock that can be held by certain market volatility of the options; 3. Provide plan participants with the retirement plans. In addition, the following conditions are imposed by the Section opportunity to obtain sufficient 404(c) regulations: information to make informed 4

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Benefits

EAP Corner

COBRA: Compliance or Confusion? MEA receives several calls a week regarding COBRA compliance. 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 is potentially non-compliant: 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 now offering a COBRA Administration Workshop which will be held at our Valley Forge Conference Center on June 12, 2007 from 9:00 am to 1:00 pm. 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.

There is much pessimism in the news regarding how employees feel about their jobs and their employers. Even I feel it. I am only one supervisor, but what can I do to promote a positive attitude at work? Although increasing work and economic stress, along with loss of loyalty to the employer, is often reported, the news is not all bad. Research shows that a majority of employees do feel engaged in their work, although more so in smaller companies. This sentiment may result from feeling that they have more control over their work. So, the more you can help employees feel a sense of control or ownership over their work, the better off they will be. Many companies wonder what managers or supervisors can do to improve their workers’ attitudes. Less frequently asked is what they can stop doing. A Harris Interactive poll in late 2004 showed that only 63% of supervisors and managers cared about the fate of their employer. Unless a supervisor cares about the employer, it will be difficult to influence morale in subordinates. Examine your speech and determine whether you periodically demonstrate an unhelpful attitude that contributes to the problem you are trying to solve. If you are exhibiting a continuous negative attitude, you should head for the EAP. They can help you.

P.S. The statements above should all have been answered “potentially non-compliant.” Why not let MEA replace the confusion with confident compliance? Register today!

For Your Benefit: Generic drugs are required by the FDA to be the same as brand name drugs in dosage, safety, strength, quality, the way they work, the way they should be taken, and the way they should be used. Generics are typically 30-80% less expensive than brands. If you have employees who are adamant about brand drugs, encourage them to view the FDA Web site at http://www.fda.gov/cder and click on Consumer Education. www.MEAinfo.org

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President’s Message A Better Way to Find Top Talent

Yet, despite the failings of this approach, business leaders return continued from page 1 to it time and again when vacancies The recruiting process in small- to mid- need to be filled. They themselves sized companies can often fall into a may perceive that the system is similar pattern or practice of staying working as well as it should under the with an approach despite its delivery circumstances and therefore may be of questionable results. Commonly, determined to stay the course. There within smaller organizations, a may be comfort in the routine or with person is tasked with recruiting the other capabilities of the individual responsibility on an as-needed basis. designated to fill open positions. There It may be someone who has primarily may be unfamiliarity with available administrative-level responsibilities, alternatives, or a perception that they such as a receptionist or a designated are too costly. office manager. Or, it may be a manager under whom a vacancy Many leaders may feel that finding a has occurred. When a hiring need new employee shouldn’t be a difficult develops within the organization, the or complex process that rises to the wheels are set in motion to fill the level of strategic importance and vacancy, and the individual who was therefore aren’t willing to invest in likely fully allocated before the hiring better practices. They may believe need developed now is charged with that they can acquire the best talent a new, potentially time-consuming with a minimum of effort using the and unfamiliar task. Internet and that there’s no need to change policy or procedures This approach is prone to a number or even the capabilities of staff. A of potential problems, not the least recent Careerbuilder.com survey of which is delays in executing the reported that close to 40 percent of process. There are several practical respondents typically receive more reasons why weeks may go by before than 50 resumes for each open the now-part-time recruiter pulls position. Approximately one-third everything together and posts an of those respondents receive over ad for the opening: He or she may 100 resumes per posting. So finding lack a complete understanding of people via the Internet who need a the role and may not have a job job is apparently rather easy. However, description to work from; or, there finding people who have the right may be uncertainty about where skills and abilities for your specific to post the ad, in the local paper or needs may be a different story. on the Internet; it may be difficult to determine under which category You may be experiencing marginal the job should be posted to ensure results with your current recruiting the right candidates will read the ad, process and yet repeating it despite or the actual wording of the ad may your own growing dissatisfaction and present decisions relative to cost vs. the urgings of others around you to word count. On the other hand, it make improvements. Your loyalty to could very well be that delays have process may be, in fact, the prolonging developed even before the above of a decision. So before you go back scenarios have played out simply to your routine and hand your next because the designee is swamped opening to your designated in-house with other work and is having recruiter, ask yourself the following difficulty with time management. questions: How long do your typical 6

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recruitment cycles last? Have you had to re-post ads to find a better batch of candidates? How many candidates do you typically reject before finding the right one? Have you felt great about new hires or have you felt as though you may be settling or compromising? Is there visible dissatisfaction or frustration that develops in your office when a recruiting need arises? Is there a hidden cost involved in your recruitment process, which you need to address? The course of action you choose for finding each and every new employee is arguably the most critical process you face in building a high-performing workforce. Having a complete, costeffective process in place that you can consistently rely on to deliver the best possible candidates is crucial to ensure your organization is given every opportunity to succeed in the war for top talent. MEA’s recruitment desk is available to assist members in finding candidates that meet your organization’s specific requirements. We partner with you throughout the process beginning with a needs assessment to ensure that the ad posted is targeted to attract the best available candidates. From job description through candidate screening to offer letter, our service is designed to be a complete outsourcing of the recruitment function. We offer competitive rates and will work within any budgetary constraints you may have. Please contact Maureen Gutkowski for a complementary consultation. 610-666-7330 ext. 125, mgutkowski@meainfo.org — Jim Devine

Benefits Plan Sponsors’ Guide to ERISA 404(c) continued from page 4

may be relieved of liability for the actual investment decisions of participants, the fiduciary retains important responsibilities: • The plan’s investment options must be prudently selected. • The investment options must be monitored to ensure that they continue to be prudent and meet the diverse needs of the plan’s participants on an ongoing basis. • Plan sponsors must periodically review the operations of the plan to ensure that the frequency with which plan participants can change their investments continues to be appropriate given the volatility of the investment options. • Plan sponsors also need to ensure that plan participants have been provided with sufficient disclosure concerning the plan’s investment options on an ongoing basis.

In such cases, the plan fiduciary is not protected by Section 404(c). The most conservative investment option may not always be the best choice. The plan fiduciary should consider the overall investment needs of plan participants before selecting a default investment option for the plan.

Benefits for Participants When a plan sponsor agrees to comply with Section 404(c), participants benefit. They know that they will have access to both effective tools and the information that they need to succeed in managing their own investments (or to implement advice from their financial adviser). They can count on their employer to provide: • A broad and diverse range of investment options; • Frequent opportunities to alter the manner in which their account is invested; A plan sponsor may be forced to direct • Educational opportunities that an investment if a plan participant provide the information they need fails to make an investment selection. to make informed decisions.

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MEA is excited to announce we have partnered with The Standard to offer the MEA “Rightpath” 401k Plan to our members. Whether you already have a 401k plan in place or thought you couldn’t afford to offer one, MEA’s plan could be a perfect fit for your company. The MEA “Rightpath” 401k Plan is a Multiple Employer Trust that offers: • low administrative and investment costs, • no broker or agent commissions, • award winning record keeping services, • unparalleled advice alternatives and • leading edge Internet technology for both participants and plan sponsors. Give the MEA Benefits Department a call today to find out more.

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Human Resources

Must a Company Provide FMLA Leave for Medical Checkups? Maureen H. Gutkowski, SPHR / MEA HR Consultant mgutkowski@meainfo.org

Have you ever questioned whether an employee is eligible to use FMLA to have a mammogram, have their blood sugar checked or have their asthma evaluated? Well, you are not alone! According to the Wage and Hour Division of the Department of Labor, the answer is — “It depends.” It depends on the severity of the condition and the certification provided by the employee’s physician. “As needed” is not enough of an explanation; the certification must be specific.

use FMLA for testing. However, if the employee’s blood sugar spikes, he or she may need more than standard care and would be eligible for FMLA. Diabetes is not necessarily life-threatening, but it is a chronic condition. In the event an employee’s blood sugar spikes, the physician’s certification may say Mr./Ms. Jones needs three appointments in the next thirty days to monitor blood sugar levels. This is an example of a specific certification.

Asthma is another severity issue. If the employee suffers from asthma, he If the employee is a breast cancer or she may grow out of it for a time survivor, she (or he) is eligible to but would still be considered prone use FMLA to take time off for a to the disease. If an employee has mammogram. Cancer is a serious no symptoms and goes for routine health condition that may recur evaluation, he or she is not eligible and mammograms are part of for FMLA. If the disease flares up and the ongoing evaluation process. the employee needs specific testing Individuals are considered to be prone or care, he or she is eligible for FMLA. to the disease no matter how long Again, the physician’s certification they are cancer-free. must be specific. Diabetes is a severity issue. If the employee suffers from diabetes and the diabetes is under control, standard care may be all that is necessary and the employee is not eligible to

Wage and Hour says it is absolutely acceptable for a company to work with an employee’s physician so the employee misses as little time away from work as possible.

Hotline Q & A Q

As an employer, we conduct pre-employment screening/testing on all candidates during the interview process. When the candidate is not offered the position, they request the results. Are we obligated to provide them the results of the screening/test? No. There is no law that requires an employer to provide a candidate with the outcome of their pre-employment screening results. Since the preemployment testing/screening is purchased and paid for by the employer, it remains the property of the employer. www.MEAinfo.org

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Announcing HRAnswersNOW Beginning June 1st A new Internet resource will be 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 company, 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 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 as of June 1, 2007 through a partnership with Commerce Clearing House, includes a wealth of information to help you more effectively manage your workplace issues. Resources include: • 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. Look for more information from MEA through email and our Web site as we begin rolling out this very exciting benefit to MEA members. In the meantime please feel free to call our Hotline at 610-666-7330 or email hrservices@meainfo.org for more details.

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Summer Hires

Human Resources

Paula Gill, SPHR, Director, Human Resources Services pgill@meainfo.org Are you thinking of hiring young but are prohibited from working in people this summer? Are you certain hazardous occupations familiar with what the law has to say such as: 1. transportation about employing adolescents and teenagers? Many employers don’t 2. construction know that the federal law limits the 3. mining hours that people under 18 can 4. operating power-driven machines work, and the types of work that (lawn mowers and trimmers) they can do. The Fair Labor Standards Act (FLSA) limits when and under 5. maintenance or repair what conditions employers can hire of equipment individuals under the age of 18. Here 6. working in boiler rooms is a summary that you may find useful: In addition, the law restricts how many hours they can work. During Minors who are 14 or 15 can work school vacations, they may work a in some retail service industry jobs,

maximum of 8 hours a day and up to 40 hours per week, but they cannot work before 7:00 a.m. or after 7:00 p.m. (9:00 p.m. in the summer). The law does not restrict the number of hours 16 or 17 year old minors can work, but they also cannot be employed in hazardous jobs such as: 1. logging 2. operating elevators 3. operating power-driven meat processing, bakery, or paper product machinery 4. driving motor vehicles on public roads 5. roofing 6. excavation please turn to page 19

Diploma Bologna & Other Stories: Do you Know if your Job Candidates and Employees are Telling the Truth?

MEA can support successful hiring and employee retention with:

• Background Checks • Drug & Alcohol Testing • Reference Checks

Depend on MEA …for the well-being of your employees and your organization!

HR Policy Pointer Do you title your policy on Harassment “Sexual Harassment?” Over the years, the definition of harassment has evolved to cover all forms of protected classes as identified by the EEOC. We recommend renaming your “Sexual Harassment” policy “Harassment.” The definition of sexual harassment stays embedded in the policy, along with a statement that the policy applies to all forms of harassment as defined by the EEOC. www.MEAinfo.org

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Training & Development

Creating Employee Fit Provides Benefits English as a Second Language Training at Work Judy West, President, English That Works, Inc. For individuals who speak English as their second language, the ability to fit in is often crucial to their job success. For their employers, this ability is often the difference between employees performing a job and employees whose communication skills get the job done. Depending upon which dictionary you consult, “fit” could mean : to be the right size and shape for someone/something; to be accepted by other people in the group; to be appropriate or good enough for something; to be suitable; to conform correctly; to be in harmony or accord; to put into a condition of readiness. I define “fit” as a way to more fully participate in the workplace and to understand and be understood by management, colleagues, and clients.

At all levels of an organization, from entry to executive, and in all types of organizations, the ability to communicate clearly and effectively is a must-have skill. It affects how we present our ideas, demonstrate understanding, report problems, gain cooperation, negotiate an outcome, work safely, participate in meetings, get promoted, and function as a member of a team. Communicating well is difficult. Imagine how hard it is in a second language where one may not have the words he/she needs, may have an unfamiliar accent, may not know the accepted ways to communicate in a given situation, or may come from a culture with different rules about who communicates with whom, how, and when.

From basic English survival skills and job-focused communication skills to higher level speaking, listening, writing, and cultural awareness skills, group training and individualized coaching, supported and encouraged by management, can address workplace communication issues, create a better fit for multinational employees, and provide benefits for their employers. Although it is often difficult to measure if training alone has a significant impact on employee performance, and very little has been written on the return on investment of language skills training, examining participant initiative please turn to page 11

Training Management Certificate Program Benefits Pacor Inc. Pacor, Inc. is a leading East Coast fabricator of thermal and acoustical insulation products for OEM markets, a manufacturer of custom-made, removable insulation covers, and a plastic injection molder. The company services many industries, including HVAC, Rail Car, Lighting, Appliances and Power Generation. Mike Dodson is the IT Director of Pacor, Inc. and has been a Pacor associate for the past 9 years. He began training at MEA last June and has successfully completed both the Supervisory Certificate Program and the Training Management Certificate Program. “I enjoyed the interaction and diverse workplace experiences of others in the classroom. The trainers did 10

an excellent job of providing ‘real world’ examples and presenting pertinent information,” he said. “Participants return to the workplace with new knowledge that they can immediately use. The real power of the program comes from sharing that information among coworkers and other management personnel. I would strongly recommend MEA training programs to any company that wants to remain competitive in this global environment.” Pacor has been a member of MEA for the past seven years. The company realizes the importance of teamwork, leadership and interpersonal skills in the workplace. It has utilized MEA training and services at several of its locations in order to improve managerial skills

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and overall communication within the company. The company Mission Statement defines Pacor as having a “…Commitment to growth and profitability through superior quality, supported by innovation and constant improvement...” To this end, MEA has provided valuable insights and positive learning solutions. Look to Pacor for all of your insulation fabrication needs: Look to MEA for quality instruction and professional development.

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Training & Development Creating Employee Fit

for competent job performance transportation, and stigma and promotion • Offer one-on-one coaching for and considering comparative data • More accurate pronunciation employees whose positions provides some information on training require highly developed • Clearer, more focused investment benefits. communication and cultural written documents awareness skills After clearly defined and designed • Fewer complaints/increased • Mentor employees to help them language training is delivered, customer satisfaction understand workplace culture and employers are likely to see the • Heightened self confidence expectations and what is needed following results/changes: and awareness for advancement • Greater participation on work • Enhanced company image through teams and in meetings demonstrated commitment to Individuals who strengthen their • Demonstrated willingness to take employee development communication skills achieve communicative risks (e.g. start a better fit in their company or conversations, make presentations, To gain the benefits listed above, organization. They are more able to assume leadership) here are some recommendations meet their performance objectives, for organizations considering participate more effectively, interact • Heightened client/co-worker workplace training: more assertively, and become more satisfaction with interactions professionally visible and credible. This and relationships • Provide short language helps them do their jobs better and improvement and cultural and • Increased incidences of asking for increases the competitiveness of the interpersonal awareness courses clarification when something with clearly stated, achievable goals organizations that employ them. is unclear • Demonstrate commitment • Less time required to do a to language improvement by communicative task like providing supporting employees and information (hours saved x salary) providing opportunities to use • Decreased time spent by newly acquired skills supervisors providing assistance • Learn more about employees’ (hours saved x salary) cultures to promote greater • Lower incidence of misunderstanding understanding and insight into due to oral or written skills and employee behaviors cultural differences • Address potential barriers to • Greater ability to perform training including scheduling, the increasingly demanding supervisor support, childcare, communicative tasks required continued from page 10

Tips of the Trade So much of management training is focused on how to manage other people, how to juggle multiple tasks, how to manage projects or how to be productive in a lean environment. Although it is “taught” in our training rooms to give praise, how many managers forget to praise the already motivated and productive employees? We hear of so many managers that do great work, but the one thing they lament is that their manager does not give praise and feedback. It’s almost as though the boss assumes that that person doesn’t need the praise. On the other hand, what do managers have to lose? Give praise to ALL who deserve it! www.MEAinfo.org

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Leader to Leader

Handling Board Amnesia Effectively

Empathize with the Challenges of Intermittent Involvement In the Prologue of his1989 novel Clear and Present Danger, Tom Clancy introduces readers to no less than 10 characters: The President, code named “Wrangler;” Vice Admiral James Cutter, code named “Lumberjack;” Special Agent Connor; and Daga, the bodyguard. Other characters named Ritter, Ramón, Jesús, Sergeant Chavez, Ernie and Red Wegener round out the initial cast. Clancy sets up his story with a number of complex situations, including threats to national security, an Oval Office briefing, the death of a Saudi king and drug-running, multi-million dollar yachts. As with any Clancy novel, the pages are laced with technical jargon: UH-60A Blackhawk helicopters, A6-E Intruders, A4 Skyhawks, Advanced Tactical Aircraft and a Standard LGB Guidance Pack. If your reading habits are like mine, you may put a novel down for days, or even weeks, before picking it back up. It’s not difficult, particularly with a Clancy novel, to forget much of what you read in a prior chapter. I’m constantly re-reading and referring back to previous pages to refresh my memory and keep up with the story line. I admit my reading habits are less than exemplary. For me getting through any novel, let alone those of the epic magnitude of Clancy’s can be a challenge, not to mention a bit frustrating at times. However, I am interested in the way I’ve been able to parlay my shortcomings with reading into more effectively working with Boards of Directors, and to being a better board member myself. Imagine the challenge of dealing with strategic issues intermittently;

a month, perhaps a quarter at a time. Not unlike the expectation of remembering everything from a past chapter of a Clancy novel and simply plowing ahead, it is unrealistic. When it’s nothing more than a book the consequences are relatively mild and you simply may not gain the full enjoyment or appreciation of the entire story. The stakes are obviously significantly higher in dealing with the board-level, strategic issues of your company.

time and taking your board members back “a chapter or two” in essence, may move your issues forward more effectively and efficiently. Without these refreshers, your agenda may be torpedoed or taken off of your intended path by a frustrated board member who is trying to keep-up, or who may have missed a prior meeting.

There are surely responsibilities inherent in being an informed board member. Taking the initiative to learn about the key, strategic issues facing Even the best, most dedicated board the organization is high among members will not retain much of what them. However, recognizing the was discussed in prior meetings or realities of the board experience and reviewed in other communications. empathizing with a board member’s Without more, a cursory review of own situation may better serve you minutes adds limited value in terms of and your organization and enhance an informed perspective on relevant the opportunity for your board to issues. Recognizing this ahead of make more meaningful contributions. please turn to page 19

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From Beyond the Region Implementing Internal Job Posting Programs by Eric Van Cleven, CCP, SPHR, Director of Compensation and Strategic HR Services I want to implement a formal internal posting program for open positions in my organization. What should I be concerned about?

special preference or consideration and that the organization reserves the right to look outside the organization for potential candidates.

Unfair or inconsistent internal posting programs can negatively impact employee morale and lead to claims of favoritism or discrimination. Internal recruitment also can create friction among managers, who might resent losing a good employee to another department and having to recruit, interview and train a replacement. Some hiring managers might resent the restrictions imposed by an internal job posting program. Policies that require interviewing all internal candidates before advertising externally can create delays in filling vacancies, while programs that give preference to any qualified internal candidate can limit a manager’s hiring discretion.

What should an internal job posting program include?

How can I minimize these issues in my organization?

When developing a program, it must address the following issues: which jobs will be posted, how and who will post the job vacancies, posting deadlines, who can apply for posted positions, how employees should apply for posted positions and how hiring managers should handle internal applications. Unionized organizations should be aware of relevant union contract provisions when designing a job posting program. These provisions often give preference to senior employees or limit management’s right to seek external candidates. What other tips do you have?

Some organizations post all job openings; however, many exclude An organization must post executive positions, positions mandatory, minimum credentials, requiring specialized skill sets or knowledge and skills. Exceptions positions where a manager may should not be made for any internal want to reward a qualified employee candidate that does not meet these with a promotion. One person minimums. There will be pressure to make exceptions, especially for those should be responsible for posting all positions. Positions can be posted employees that are well liked in an in ways that are administratively organization or have considerable feasible for the employer and visible seniority. Your internal posting program should be combined with an to all employees, including those external recruiting effort that attempts with known disabilities. Posting can include employee bulletin to attract minority and female boards, an organization’s intranet, an populations if workforce makeup internal job hotline, memos or e-mail is a concern. Managers should be messages to employees. Deadlines given adequate time and notice before losing an employee to another must be consistent and should allow employees adequate time to department. Policies concerning apply, but avoid lengthy delays in internal job posting should state that filling a position. Most organizations internal applicants will not be given www.MEAinfo.org

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allow any employee that meets the minimum qualifications to apply for a job. Postings should include key job duties, reporting relationships, overtime, weekend or night-shift work, travel, hazardous working conditions, minimum qualifications, restrictions on who can apply for the position, contacts for additional information and a deadline. Organizations usually require employees to submit a form or letter indicating their interest in the position and granting permission for the hiring manager to review their personnel records. Some organizations will not interview any employee that has an active disciplinary warning. It is recommended that employees not interviewed are personally advised and coached on what the employee can do to prepare for future opportunities within the organization. These casual discussions can eliminate the time and expense of processing applications, testing candidates and conducting interviews with employees who are not qualified for a position. Copyright © 2007 The Management Association of Illinois. All Rights Reserved.

The Management Association of Illinois 1400 Opus Place, Suite 500 | Downers Grove, Illinois 60515 (630) 963-7600 | (630) 963-2800 (fax) www.hrsource.org | info@hrsource.org

Legal Brief Getting Sued Twice for the Same Injury It Does Not Have to Happen to You agreements to be enforceable. First, these agreements cannot cause harm to the public generally and cannot be so one-sided in favor of the company. Second, these agreements must be written in clear and unmistakable terms. Third, these agreements cannot limit in any way the employee’s right to workers’ compensation. The company ultimately has to prove in Court that the exculpatory agreement meets these standards. If the employment…. [I]n recognition company is unable to satisfy any one When an employee is injured at the of the fact that any work related client’s location, he or she can sue the of these standards, a court will not injuries which might be sustained enforce the exculpatory agreement. company for workers’ compensation by me are covered by state Workers’ benefits and the client for negligence. Compensation statutes, and to avoid The company may have agreed to pay Obviously, with an enforceable the circumvention of such state agreement in place the company for the defense of that negligence statutes which may result from suits case and any judgment or settlement or its client can save a substantial against the customers or clients of amount of time and money and the that may result. This leaves the [company] based on the same injury company can garner some critical company responsible for both or injuries, and to the extent permitted good will from the client. To improve the workers’ compensation and by law, I HEREBY WAIVE AND FOREVER negligence cases. Defending against, the chances of enforcement, these RELEASE ANY RIGHTS I MIGHT HAVE agreements should: and ultimately paying for, both of to make claims or bring suit against these cases is expensive. - explicitly exclude any impact on any client or customer of [company] workers’ compensation claims; for damages based upon injuries A company can eliminate or reduce which are covered under such be contained in a conspicuous the likelihood of this dual claim Workers’ Compensation statutes part of the document and set off dilemma by asking its employees (emphasis in original). from the rest of the document to waive their right to sue its clients. by highlighting the text or be a This is accomplished by having This language may not automatically separate document altogether; the employee sign an exculpatory work for your company given the - clearly state that the employee is agreement as a condition of nuances in the laws of different surrendering any and all rights, employment. This agreement can be a states and the uniqueness of each including negligence claims, to part of the employment application or situation. Nevertheless, by exercising sue the company’s clients. a term in an employment agreement. these precautions, the exculpatory These agreements, if done properly, agreement should be enforceable or The following provision, contained can eliminate the negligence lawsuit at least provide the company or the within an employment application that the company or its client must client with leverage in negotiating a defend against, because the employer signed by the employee, has been favorable settlement. upheld as enforceable by courts in has waived those claims. –Gino J. Benedetti, Esq. Massachusetts and Arkansas: Dilworth Paxson LLP Making this work requires some 1735 Market Street In consideration of any offer of careful planning because courts 3200 Mellon Bank Center Philadelphia, PA 19103 frown upon exculpatory agreements. employment by [company], I hereby (215) 575-7127 acknowledge, understand and agree Consequently, there are some gbenedetti@dilworthlaw.com exacting standards to satisfy for these that the following will constitute terms and conditions of any such Do your company’s employees work at a client’s location? Did you know that these employees can sue your company and your client for injuries that they sustain on your client’s property? Did your company agree to protect and defend its clients against these employee suits? If so, your company can, in effect, be sued twice by the same employee for the same injury.

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Industry Focus: Eye on Manufacturing

NAM Survey Shows FMLA Ambiguity and Misuse Need Correction Some on Capitol Hill, such as presidential candidate Sen. Chris Dodd, want to vastly expand the Family and Medical Leave Act (FMLA) to cover more companies and more workers. The NAM, in comments filed with the Department of Labor in February, said, “Not so fast.” A new survey of 400 NAM members of all sizes, who represent 900,000 employees, illustrates that while manufactures are ahead of the curve on providing leave, FMLA needs reform. We are hopeful that the DOL, after receiving comments from the NAM and many of our member companies, will improve the existing FMLA regulations. The goal is to ensure that FMLA works as it was intended when it was enacted in 1993, to clarify employers’ responsibilities and eliminate abuses. The NAM commented on problem areas, including the definition of serious health conditions, issues with medical certification and the misuse of intermittent leave. NAM policy specialist Jason Straczewski added, “Overwhelmingly, our members are stressing the confusing, conflicting and burdensome regulatory regimen of the FMLA as a hindrance to their ability to be competitive and provide employees with good benefits and security in the workplace.” Manufacturers do not take issue with the law’s intent. But no system

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of benefits can survive if its cost outweighs its value. The NAM is approaching that point with the FMLA. As interpreted by the DOL, the FMLA has become the single largest source of uncontrolled absences and related costs: missed deadlines, late shipments, lost business, temporary help and overworked staff. “It is not too much to say that the FMLA has had the unintended consequence of creating an epidemic of absences and has profoundly undermined what had been America’s secret weapon in global economic battles: the work ethic and productivity of the workforce,” the NAM stated. Survey findings: • Virtually all of the respondents indicated that most of their employees are eligible for FMLA leave. • Nearly 30 percent of manufacturers offer paid maternity leave. • Sixty-five percent of the requests received for intermittent leave were made either on the day of the leave, after the leave was taken or without any notice – causing significant administration issues for employers. • A majority of our members have absorbed significant operating costs due to intermittent leave in the form of lost productivity and missed deadlines. Source: National Association of Manufacturers based on U.S. Government data. For more information, contact Bill Canis, NAM Manufacturing Institute, (202) 637-3109 or bcanis@nam.org.

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MEA Workplace Whiteboard HR’s Role Throughout a Typical Organization’s Life Cycle

Success

HR may be informally structured and viewed as less strategic during this phase - emphasis is typically focused on recruitment, compliance and policy/ program development

Phase I Formative “find the formula”

HR may be involved outside of normal scope to partner with leadership in reinventing the company; may assist with and itself be subject to RIFs, restructuring and outsourcing; may be involved with merger/acquisition due diligence

Phase III Collaborative “reinvent the formula”

Phase II Normative “work the formula”

HR is more developed and may rise to strategic partnering - typically focused on organizational design, employee development, performance management, total rewards analysis, employee relations and policy/program development & compliance

Time

Environmental & Safety Compliance Deadlines May – June 2007 *May 10, 2007 – NESHAP 40 CFR 63, Subpart HHHHH – Miscellaneous Coating Manufacturing: For an existing affected source, at least 150 days after the compliance date, but no later than May 10, 2007, you must submit a Notification of Compliance Status Report (NOCS). 40 CFR 63.8075 (d)

days after the compliance date, but no later than May 26, 2007, you must submit a Notification of Compliance Status Report (NOCS). 40 CFR 63.3110

*June 15, 2007 – NESHAP Compliance Date for 40 CFR 63, Subpart ZZZZ Reciprocating Internal Combustion Engines: For an affected May 15, 2007 – Deadline for source, you must comply with the Electronic Submittal of NJ Air Emission requirements of 40 CFR 63, Subpart Inventory N.J.A.C 7:27-21.4. ZZZZ no later than June 15, 2007. 40 CFR 63.6595 *May 26, 2007 – NESHAP 40 CFR 63, Subpart llll Surface Coating of June 30, 2007 – Pursuant to Title Automobiles & Light Duty Trucks: For 49 CFR Part 107, Subpart G (107.601 an existing affected source, at least 30 – 107-620), certain offerors and 16

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transporters of hazardous materials, including hazardous waste, are required to file an annual registration statement with the U.S. Department of Transportation and to pay a fee. 49 CFR 107.608 *Indicates item is new for 2007 MEA partners with Compliance Management International to provide cost-effective and efficient means for managing environmental, health and safety issues.

June 2007 Seminars & Events MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

1 VF denotes seminars held at Valley Forge, PA, Training Facility. NJ denotes seminars held at Atrium II Executive Suites, Mt. Laurel, NJ, Training Facility.

5 • Coaching Skills for Managers & Supervisors VF

6 • Immigration: Struggles Employers Face in Today’s Changing World NJ • Supervision Basics NJ • Planning, Developing & Managing Your Organization’s Training (PDM) VF • Root Cause Accident Investigation VF

12 • Successful Communication NJ • Forklift Train-the-Trainer (Day 1) VF • Compensation Plan Design VF

13 • Getting Your Message Across! VF • Forklift Train-the-Trainer (Day 2) VF

• Professional Telephone Skills VF • Essentials of Human Resources Roles & Responsibilities NJ • Avoiding Harassment in the Workplace – Employee Module VF

• Avoiding Harassment in the Workplace – Supervisor Manager Module VF • Senior Human Resources – Southern New Jersey NJ

• COBRA Administration Workshop VF

• Managing People through Motivation VF

• Juggling Multiple Priorities NJ

• Adult, Child & Infant CPR with AED VF

• DOT HazMat Management VF

• First Aid & Bloodborne Pathogen Training for Emergency Responders VF

• Effective Employees Relations, Recognition, & Evaluations VF

26 • How to Conduct an Effective Internal Investigation VF

21 • Handling Difficult People VF

22 • Forklift Operator Certification VF

• Leadership Skills for Today’s Workforce VF • Safety Committee: Implementation & Continuation VF

Registration Information: For seminar descriptions, times and fees, please refer to the current MEA Training Catalog or call the Training Department at (800) 662-6238. To register for any program, please visit our Web site, www.MEAinfo.org, or call the Association at the number above. You may also e-mail your registration to registration@MEAinfo.org Cancellation Information: Refunds are available for cancellations received in our office five working days prior to the start of the program. No refunds are available for cancellations received later than five working days before the program. Alternate registrants will be accepted at no additional charge.

Surveys & Publications GUIDES

SURVEY REPORTS Regional

ADA Guide Members: $25.00; Non-Members: $35.00; S/H: $10.00

Administrative and Office Support

Affirmative Action Plan Guide

Members: $80.00; Non-Members: $100.00; S/H: $10.00

Employer’s Guide to Employee Relations Laws and Regulations • Federal & Pennsylvania • Federal & New Jersey • Federal & Delaware

Members: $285.00; Non-Members: $575.00; S/H: $10.00

Information Services

Members: $285.00; Non-Members: $575.00; S/H: $10.00

Engineering, Scientific and Technical

Members: $285.00; Non-Members: $575.00; S/H: $10.00

Supervisory and Management

Members: $95.00; Non-Members: $130.00; S/H: $10.00 Purchase of three or more guides: Members: $75.00 each; Non-Members: $95.00 each; S/H: $10.00

Members: $285.00; Non-Members: $575.00; S/H: $10.00

Family & Medical Leave Act (FMLA) Handbook & Pads

Health Benefits

Pay Structures

Members: $160.00; Non-Members: $265.00; S/H: $10.00 Members: $200.00; Non-Members: $300.00; S/H: $10.00

• Sample policies: expanded definitions; • FMLA interactions with WC and ADA (includes three sets of pads)

Salary Planning Guide

Members: $60.00; Non-Members: $125.00; S/H: $10.00

Personnel Policies, Practices and Benefits

Members: $65.00; Non-Members: $105.00; S/H: $10.00

Members: $350.00; Non-Members: $650.00; S/H: $10.00

FMLA Pads Only (Set of Three)

1) Leave Request; 2) Physician’s Certification; and 3) Employer’s Response to Requested Leave

National

Members: $35.00; Non-Members: $50.00; S/H: $10.00

National Executive Compensation

Violence Goes to the Workplace: An Employer’s Guide

Members: $285.00; Non-Members: $450.00; S/H: $10.00

National Wage and Salary

Members: $40.00; Non-Members: $55.00; S/H: $10.00

Members: $150.00; Non-Members: $275.00; S/H: $10.00

HIPAA Guide

National Pay Trends

Members: $125.00; Non-Members: $175.00; S/H: $10.00

Members: $60.00; Non-Members: $125.00; S/H: $10.00

POSTERS

National Policies & Benefits

Members: $350.00; Non-Members: $650.00; S/H: $10.00

Federal 7-in-1; Pennsylvania 7-in-1

National Sales Compensations and Practices

Meets all posting requirements. Avoids cluttered bulletin boards. • 1-10 - Federal-PA Members: $12.00 ea.; Non-Members: $17.00 ea.; S/H: $10

Members: $225.00; Non-Members: $435.00; S/H:$10.00

National IT and Engineering

Members: $315.00; Non-Members: $630.00; S/H:$10.00

• 11-24 - Federal-PA Members: $10.00 ea.; Non-Members: $14.00 ea.; S/H: $10

Survey prices quoted are for pdf format. For a printed copy, there is an additional charge. For additional information, please contact Kay Dutton, Research & Publications Department, at (800) 662-6238 x.115 or email research@MEAinfo.org.

• 25-50 - Federal-PA Members: $9.00 ea.; Non-Members: $12.00 ea.; S/H: $10 • 50+ - Federal-PA Members: $8.00 ea.; Non-Members: $10.00 ea.; S/H: $10 Lamination - $4.00 per poster

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research@MEAinfo.org

Summer Hires continued from page 9

The employer must post a summary of the Child Labor Act, a schedule of the hours each minor will work each day of the week, total hours for each week, beginning and end of meal periods, starting and stopping times.

If you intend to hire young people, you can ensure that you do not unintentionally violate child labor laws by asking for working papers. Here is a guide of what is required for Delaware PA, NJ and DE. All minors need working papers, also known as Employment Certificates. Pennsylvania All minors need working papers, also The employer has the duty to make sure they receive them, and the known as Employment Certificates. minor has the responsibility to The employer has the duty to make apply for them. The employer must sure the minor receives them, and verify the age of the minor by birth the minor has the responsibility to apply for them. They are issued from certificate, baptismal certificate, school record, passport, driver’s the student’s school and must be license, or oﬃcial government maintained on file then returned to document. It is distinct from an the student at the end employment certificate. of employment. Minors may also present a transferable work permit, which is issued to the minor and stays in the minor’s possession. It is valid for the entire period that the minor is eligible to work and is under 18. The employer must document it in employment files and inform the school within 5 days of the hire.

You can find more information on specific parameters of the Child Labor laws in your copy of the MEA Employers’ Guide to Employee Relations or by calling the Hotline at 800-662-6238.

The employer must also post a summary of the sections of the Child Labor Law that relate to the hours minors are allowed to work, a list of minors employed and a schedule of the hours they work. New Jersey All minors need working papers, also known as Employment Certificates. The employer has the duty to make sure they receive them, and the minors have the responsibility to apply for them. They are issued from the student’s school and must be maintained on file and returned to the student at the end of employment. The employer must give the minor a signed statement stating that they wish to hire the student, describe the duties, hours and pay. www.MEAinfo.org

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Handling Board Amnesia Effectively continued from page 12

Leadership Tip: Often several weeks or months can pass between board meetings or other individual board member or committee-level interaction. Your perspective as the leader of your organization, frequently and regularly immersed in the day-to-day, will no doubt be quite different from that of your typical board member. Following are a few ideas that may add value to your interaction with your board members and enhance the board experience for all involved. • Work from an action plan in updating the board on initiatives – reminding them of action items “accomplished” and “to be accomplished.” Keep this brief, yet informative. • Prepare a board book for every meeting. Include a table of contents and tabbed sections to ensure the flow of the meeting remains on course. Include a summary of significant business initiatives such as new contracts, capital improvements, organizational changes, etc. • Keep your own notes of board meeting discussions, particularly related to what you anticipate may be future decision points. Before any votes are taken in subsequent meetings, use your notes in conjunction with recorded minutes to add needed perspective, particularly where you feel that a board member’s recollection is off, or that his or her position has changed. • Make regular calls to your board members or visit with them to keep them informed and up to date on key issues. If you are avoiding such discussion thinking it may lead to ad-hoc posturing or questioning by certain board members, consider that even your toughest board member may appreciate such contact enough to make things less onerous at your next meeting. — Jim Devine 19

NONPROFIT ORG U.S. Postage

MEA Management Development Institute

PAID Royersford, PA Permit No. 570

945 South Trooper Road P.O. Box 770 Valley Forge, PA 19482-0770

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FAX 610-666-7866

New in 2007 Announcing HRAnswersNOW — Providing MEA members with expert guidance that’s easy to use, from Commerce Clearing House beginning June 1. (See page 7 for more details.) Cafeteria Plan Administration Services COBRA Administration Workshop Cafeteria Plan Administration Workshop