Employer Insights May/June 2008
President’s Message
Our New Address
Finding the Right Balance in Communicating with Our Members Lessons learned from a LinkedIn seminar Revelations from MEA’s strategic marketing study
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Upcoming Events Briefings HSAs, HRAs, & FSAs - What are the differences & what’s right for your company? - PA
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Section 125/Cafeteria Plans 10 Top Compliance Pitfalls - PA
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Peer Group Roundtables HR & Benefits - PA
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Training & Development
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HR & Benefits – SNJ
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I recently attended a seminar on LinkedIn, an online networking and contact management solution that has emerged in recent years as an industry standard. You may have received emails from LinkedIn members from time to time entitled “Good to find you on LinkedIn” or “Invitation to connect on LinkedIn.” Until I learned more about the benefits of LinkedIn, I was reluctant to respond, and thought that perhaps by doing so my name would be placed in the email equivalent of a telemarketing directory and I’d suddenly be inundated with email traffic. Not only did I find out my perception was inaccurate, I realized the potential of this powerful tool and how MEA might benefit from my being more receptive to investigating LinkedIn.
Jim Devine, President & CEO jdevine@MEAinfo.org
The fact is that we are all inundated with email and other communications every day. It seems that everyone is trying to get our attention through either our inbox or our mailbox. Unfortunately the important messages with underlying benefits such as with LinkedIn are by far the exception rather than the rule. We’re more likely to see email messages from someone pitching “Diplomas without exams,” or Rolex watches, or Cialis than we are a message that is truly relevant and offers a solution to our specific needs. My point is that any communications channel to which we oversubscribe ourselves can lose its intended purpose or diminish in value from a return on investment standpoint, whether email-based or otherwise. Capital One credit card applications are an example. I receive about two of these per week. Sure, by now I know its name very well, however I have become so numb to its communications I have no interest in opening their mail or applying for one of its cards. Any organization that needs to connect with its customers and prospects has a tremendous challenge in getting and holding the attention of the individuals on the receiving end of their communication. We, as a target please turn to page 2
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President’s Message Finding the Right Balance... continued from page 1
audience for the many senders of marketing and informational communications, have an equal and perhaps greater challenge to separate the “gems” from the junk, so to speak. MEA is no different than any business in our community in the respect that our future depends on how well we are able to make a meaningful connection with you to deliver the vital information you expect from us as members. Email and other channels of communication, as crowded as they may be, are absolutely essential tools of our trade in making that connection. However, being receivers of volumes of email and collateral ourselves, we are sensitive to the perceptions that can develop when communications miss their mark or are not appropriately balanced. Therefore, as part of our strategic planning effort we undertook an initiative to gain a better understanding of how you view MEA as a service provider and how to most cost-effectively deploy the channels of communication available to us to ensure that clear, well-balanced communications are reaching you.
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of the services MEA provides, however none are aware of any organizations that provide the entire range and quality of services MEA provides – a one-stopshop resource Our broad service offering has created challenges in delivering consistent, clear messages to our members and consequently, some members are not aware of MEA’s full portfolio of services Members rely on our email communications primarily to be made aware of time-sensitive information, such as training program dates, survey deadlines and compliance-related information Members understand the need for the level of email messaging MEA delivers, however MEA emails read most often tend to be trainingrelated messages and our Workplace Advisor e-newsletter, with other topics more likely to be passed over Members prefer electronic communications vs. print for most of the messages MEA delivers, with the following exceptions: MEA’s training catalog and our Employer Insights newsletter
Earlier this year we enlisted the services of Alvaré Associates to assist us with this important project. Anita Alvaré, Principal, and Gordon Benelli, Research Consultant, prepared an in-depth report containing feedback from a select group of organizations including members, former members, prospects and peer associations. Alvaré conducted a qualitative phone survey and analyzed relevant MEA data to produce a strategic analysis of MEA’s marketing plan and suggestions for a tactical plan moving forward.
As a result of our assessment we now understand that you would value a better balance between advertisements for our programs and services, and informational messages. We also understand that although you rely on email as the primary means of communication with MEA, you would appreciate receiving fewer email messages from us. Print mail, including fax-blasts and collateral are not as important to you in your day-to-day work routine and, therefore not as relied-upon as electronic communications.
There were a number of revelations from the study, including: • Members are aware of service providers that provide one or more
We now realize that we must do a better job of filtering communications to you to ensure that our messages are more targeted to the services you most frequently rely on MEA
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to provide. We are committed to refining our approach, with our aim being to provide less-frequent, more meaningful messages. We want you to receive our messages, however most importantly, we want you to hear what we have to say to ensure you get the most out of your membership. Special thanks to Alvaré Associates for their guidance and expertise in completing the study. Very special thanks to our members that participated in the study. Your contributions are invaluable. For more information on Alvaré Associates please visit their website www.alvare.com, or contact Anita Alvaré at anita@alvare.com.
Membership
Member Case Study
Advent Design Corporation by Beth Ann Mazza, MEA Membership Ambassador Advent Design Corporation provides manufacturing and engineering services and products to companies helping them reduce costs and improve operations. Advent’s solutions for its customers can include: planning and productivity consulting; manufacturing automation; product design and development, and contract manufacturing and packaging. As stated in its company vision, “Advent Design Corporation will be the best known engineering and manufacturing company in the midAtlantic region. Advent Design will be known for our loyalty and commitment to every customer and for continuously improving our performance.” The mission of Advent Design is to assist manufacturers in becoming more competitive in a global economy by reducing costs through the implementation of world class manufacturing principles and advanced technologies. Its business plan is updated four times a year to stay focused on its mission. Advent’s history is just as interesting as its present. In 1984, two Massachusetts Institute of Technology (MIT) graduates, Tom Lawton and Bill Chesterson, decided to start their own company that would service small to midsize manufacturers. While at MIT, their relationship had solidified as they worked together on a project to break the human-powered land speed record. They started the company in a little rented house in the Boston area with just a handful of people, and in January of 1986 moved the company to the Philadelphia area and leased 2,500 square feet of industrial space in a historic mill in Bristol, PA. “The Boston and Philadelphia areas were not random site selections,” said Tom Lawton, President. “They are the two largest areas of small manufacturers leftover from the industrial revolution. We wanted to be close to our customers.” Today, Advent Design Corporation is still located in Bristol, PA in the same historic mill, but has renovated and grown into over 150,000 square feet of the old mill and currently employs over 100 engineers, project managers, technicians, machinists and production specialists. The two MIT grads, Lawton, Owner & President, and Chesterson, Owner & CEO, are still an integral part of the everyday processes. Over the years, Advent Design has received a multitude of awards. In 2007, it received two very prestigious awards to further mark its measures of success. Advent was ranked as one of the 2007 top 100 fastest-growing, privatelyheld businesses in the Philadelphia region by the Philadelphia 100, a joint project of the Wharton Small Business Development Center, the Entrepreneur Forum of Greater Philadelphia, and the Philadelphia Business Journal. Philadelphia 100 rankings are based on verifiable revenue growth. The second award, the Keystone Alliance for Performance Excellence (KAPE) honors high-performing Pennsylvania organizations. Advent was one of five to receive this award throughout the entire Commonwealth of Pennsylvania. “There’s a lot more that we want to do for manufacturing,’ stated Lawton and added, “You are never defeated until you give up!” MEA and Advent Design are working together to offer Lean manufacturing-related courses and services that will provide bottom-line results for organizations in manufacturing, as well as in other industries.
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Membership
MEA On The Move
Carrie Theisen, Senior HR Consultant, presented Integration of Total Compensation Strategies in the Current Economy at the Tri County Area Chamber of Commerce on February 26. The program provided a review of the current market conditions and an understanding of how organizations are changing their rewards programs in response to changes in the market. Beth Ann Mazza, Membership Ambassador, attended the Montgomery County Commissioners Luncheon sponsored by the Schuylkill Alliance Chamber of Commerce and PECO on February 27 at the Four Seasons in Norristown, PA. Nancy DuBoise, Employment Attorney,
attended the Western States Employers Association 2008 Labor and Employment Law Conference in California, March 5 -7. The agenda presented to this gathering of employer association lawyers addressed issues facing associations that involve: collective bargaining; National Labor Relations Act; FMLA; Employment Practices Liability Insurance and handbook policies such as email policies. Jim Devine, President & CEO, attended Business at Daybreak at The Union League on March 5 in Philadelphia, PA. Ed Callahan, CoFounder of Momentum Technology Partners, LLC, showed attendees how to maximize LinkedIn, an online network of 17 million professionals that helps professionals promote themselves, sell their products/services, and help run businesses or facilitate job searches.
Welcome New MEA Members! Avid Radio Pharmaceutical Inc. - Philadelphia, PA – Molecular imaging company Synergis Technologies Inc. – Quakertown, PA – Software development, sales & value-added services ISA Consulting – Blue Bell, PA – Computer consulting services Fairmount Automation Inc. – Newtown Square, PA – Designer and manufacturer of electronic controls GB Collects – West Berlin, NJ – Commercial collection services Laboratory Testing Inc. – Hatfield, PA – Materials testing laboratory Veltri, Inc. Levittown, PA – DOT trucking company, hauling mail for USPS Powell Trachtman Logan Carrle & Lombardo PC – King of Prussia, PA – Law firm Electro-Steam Generators – Rancocas, NJ – Manufacturer of steam generators Montgomery County Industrial Development Corporation (MCIDC) – East Norriton, PA - economic assistance and development ResiliEnt Business Solutions LLC - Alpharetta, GA - IT professional services and consulting Genji Inc. - Philadelphia, PA - Japanese cuisine company HostMySite.com - Newark, DE - Internet/ISP services
Surveys, Surveys, Surveys! The 2008 Regional Wage, Salary and Health Benefits Survey Reports will be available in late May. MEA provides data for over 300 benchmark positions in the Southeastern Pennsylvania, New Jersey and Delaware region. These 300 positions are divided among 4 separate wage and salary surveys (Supervisory & Management, Administration & Office Support, Production, Maintenance & Service and Engineering, Scientific, Technical & Information Services). All of the surveys feature summary information of actual pay rates for each surveyed position plus breakouts for size of company and for sub-regional labor market areas.
For more information, contact Kay Dutton at kdutton@meainfo.org or 800-662-6238 ext.7627
Membership Facts & Figures According to the recently released National Sales Compensation and Practices Survey, most surveyed employers (77%) reimburse sales personnel the standard IRS mileage allowance (48.5 cents a mile at the time the survey was conducted) for business use of their own vehicles. Just 1% had a reimbursement rate greater than the IRS standard rate, and 18% had reimbursements of 36 to 48 cents a mile. This survey provides data on 21 sales-related positions from customer service to executive. The data is based on information submitted by 735 U.S. firms in a wide variety of industries. The report includes data on base pay, variable pay, total compensation and pay strategies 4
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Employee Benefits
Guidance on Wellness Program Compliance By Janie Oehlert, MEA Manager of Employee Benefits
On February 14, 2008, the Employee Benefits Security Administration (EBSA) released Field Assistance Bulletin 2008-02 in response to employers’ questions regarding the Wellness Program component of the final HIPAA regulations. EBSA included a checklist to help employers determine if their wellness programs are required to comply with the final regulations. We’ve included the checklist below for your use: Wellness Program Checklist Use the following questions to help determine whether the plan offers a program of health promotion or disease prevention that is required to comply with the Department’s final wellness program regulations and, if so, whether the program is in compliance with the regulations. A. Insert the first day of the current plan year: _____________. Is the date after July 1, 2007? The wellness program final rules are applicable for plan years beginning on or after July 1, 2007.
Yes
No
B. Does the plan have a wellness program? A wide range of wellness programs exist to promote health and prevent disease. However, these programs are not always labeled “wellness programs.” Examples include: a program that reduces individual’s cost-sharing for complying with a preventive care plan; a diagnostic testing program for health problems; and rewards for attending educational classes, following healthy lifestyle recommendations, or meeting certain biometric targets (such as weight, cholesterol, nicotine use, or blood pressure targets).
Yes
No
Yes
No
Yes
No
Tip: Ignore the labels – wellness programs can be called many things. Other common names include: disease management programs, smoking cessation programs, and case management programs. C. Is the wellness program part of a group health plan? The wellness program is only subject to Part 7 of ERISA if it is part of a group health plan. If the employer operates the wellness program as an employment policy separate from the group health plan, the program may be covered by other laws, but it is not subject to the group health plan rules discussed here. Example: An employer institutes a policy that any employee who smokes will be fired. Here, the plan is not acting, so the wellness program rules do not apply. (But see 29 CFR 2590.702, which clarifies that compliance with the HIPAA nondiscrimination rules, including the wellness program rules, is not determinative of compliance with any other provision of ERISA or any other State or Federal law, such as the Americans with Disabilities Act.) D. Does the program discriminate based on a health factor? A plan discriminates based on a health factor if it requires an individual to meet a standard related to a health factor in order to obtain a reward. A reward can be in the form of a discount or rebate of a premium or contribution, a waiver of all or part of a cost-sharing mechanism (such as deductibles, copayments, or coinsurance), the absence of a surcharge, or the value of a benefit that would otherwise not be provided under the plan. Example 1: Plan participants who have a cholesterol level under 200 will receive a premium reduction of 20%. In this Example 1, the plan requires individuals to meet a standard related to a health factor in order to obtain a reward. Example 2: A plan requires all eligible employees to complete a health risk assessment to enroll in the plan. Employee answers are fed into a computer that identifies risk factors and sends educational information to the employee’s home address. In this Example 2, the requirement to complete the assessment does not, itself, discriminate based on a health factor. However, if the plan used individuals’ specific health information to discriminate in individual eligibility, benefits, or premiums, there would be discrimination based on a health factor. If you answered “No” to any of the above questions, stop. The plan does not maintain a program subject to the group health plan wellness program rules.
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Employee Benefits Guidance on Wellness Program Compliance continued from page 5
E. If the program discriminates based on a health factor, is the program saved by the benign discrimination provisions? The Department’s regulations at 29 CFR 2590.702(g) permit discrimination in favor of an individual based on a health factor.
Yes
No
Yes
No
2. Is the plan reasonably designed to promote health or prevent disease? (29 CFR 2590.702(f)(2)(ii)) The program must be reasonably designed to promote health or prevent disease. The program should have a reasonable chance of improving the health of or preventing disease in participating individuals, not be overly burdensome, not be a subterfuge for discriminating based on a health factor, and not be highly suspect in the method chosen to promote health or prevent disease.
Yes
No
3. Are individuals who are eligible to participate given a chance to qualify at least once per year? (29 CFR 2590.702(f)(2)(iii))
Yes
No
Yes
No
Example: Plan grants participants who have diabetes a waiver of the plan’s annual deductible if they enroll in a disease management program that consists of attending educational classes and following their doctor’s recommendations regarding exercise and medication. This is benign discrimination because the program is offering a reward to individuals based on an adverse health factor. Tip: The benign discrimination exception is not available if the plan asks diabetics to meet a standard related to a health factor (such as maintaining a certain BMI) in order to get a reward. In this case, an intervening discrimination is introduced and the plan cannot rely solely on the benign discrimination exception. If you answered “Yes” to the previous question, stop. There are no violations of the wellness program rules. If you answered “No” to the previous question, the wellness program must meet the following 5 criteria. F. Compliance Criteria 1. Is the amount of the reward offered under the plan limited to 20% of the applicable cost of coverage? (29 CFR 2590.702(f)(2)(i)) Keep in mind these considerations when analyzing the reward amount: Who is eligible to participate in the wellness program? If only employees are eligible to participate, the amount of the reward must not exceed 20% of the cost of employee-only coverage under the plan. If employees and any class of dependents are eligible to participate, the reward must not exceed 20% of the cost of coverage in which an employee and any dependents are enrolled. Does the plan have more than one wellness program? The 20% limitation on the amount of the reward applies to all of a plan’s wellness programs that require individuals to meet a standard related to a health factor. Example: If the plan has two wellness programs with standards related to a health factor, a 20% reward for meeting a body mass index target and a 10% reward for meeting a cholesterol target, it must decrease the total reward available from 30% to 20%. However, if instead, the program offered a 10% reward for meeting a body mass index target, a 10% reward for meeting a cholesterol target, and a 10% reward for completing a health risk assessment (regardless of any individual’s specific health information), the rewards do not need to be adjusted because the 10% reward for completing the health risk assessment does not require individuals to meet a standard related to a health factor.
4. Is the reward available to all similarly situated individuals? Does the program offer a reasonable alternative standard? (29 CFR 2590.702(f)(2)(iv))
The wellness program rules require that the reward be available to all similarly situated individuals. A component of meeting this criterion is that the program must have a reasonable alternative standard (or waiver of the otherwise applicable standard) for obtaining the reward for any individual for whom, for that period: • It is unreasonably difficult due to a medical condition to satisfy the otherwise applicable standard; or • It is medically inadvisable to attempt to satisfy the otherwise applicable standard.
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Employee Benefits Guidance on Wellness Program Compliance
EAP Corner
continued from page 6
It is permissible for the plan or issuer to seek verification, such as a statement from the individual’s physician, that a health factor makes it unreasonably difficult or medically inadvisable for the individual to satisfy or attempt to satisfy the otherwise applicable standard. 5. Does the plan disclose the availability of a reasonable alternative in all plan materials describing the program? (29 CFR 2590.702(f)(2)(v)) The plan or issuer must disclose the availability of a reasonable alternative standard in all plan materials describing the program. If plan materials merely mention that the program is available, without describing its terms, this disclosure is not required.
Yes
No
My employee tends to be stubborn and unable to see others’ points of view. She is too blunt; for example, she’ll say “You’re wrong!” rather than “I believe that….” She talks down to others. I correct her, but any changes don’t last. I think she is insecure. Would counseling help? Your employee has a habit of communicating with others that is difficult to change, but it’s doable. There could be many reasons for her communication style, but your focus should be on correcting it, not guessing its cause. You need more leverage than simply fussing at her in return for short-term corrections. Consider holding her accountable by incorporating change in her performance reviews. Meet several times during the year to reinforce progress. Using this planned approach is important. Other leverage may include a corrective letter to create an impression and provide motivation for change. A supervisor referral to the EAP is also appropriate. EAP sessions would help her improve faster, would reinforce progress, and would make those changes last.
Tip: The disclosure does not have to say what the reasonable alternative standard is in advance. The plan can individually tailor the standard for each individual, on a case-by-case basis. The following sample language can be used to satisfy this requirement: “If it is unreasonably difficult due to a medical condition for you to achieve the standards for the reward under this program, call us at [insert telephone number] and we will work with you to develop another way to qualify for the reward.” If you answered “Yes” to all of the 5 questions on wellness program criteria, there are no violations of the HIPAA wellness program rules. If you answered “No” to any of the 5 questions on wellness program criteria, the plan has a wellness program compliance issue. Specifically, Violation of the general benefit discrimination rule (29 CFR 2590.702(b)(2)(i)) – If the wellness program varies benefits, including cost-sharing mechanisms (such as deductible, copayment, or coinsurance) based on whether an individual meets a standard related to a health factor and the program does not satisfy the requirements of 29 CFR 2590.702(f ), the plan is impermissibly discriminating in benefits based on a health factor. The wellness program exception at 29 CFR 2590.702(b)(2)(ii) is not satisfied and the plan is in violation of 29 CFR 2590.702(b)(2)(i).
To learn more about implementing an EAP at your company, please contact the MEA Employee Benefits Department at 800-662-6238 or send an email to benefits@meainfo.org.
Violation of general premium discrimination rule (29 CFR 2590.702(c)(1)) – If the wellness program varies the amount of premium or contribution it requires similarly situated individuals to pay based on whether an individual meets a standard related to a health factor and the program does not satisfy the requirements of 29 CFR 2590.702(f ), the plan is impermissibly discriminating in premiums based on a health factor. The wellness program exception at 29 CFR 2590.702(c)(3) is not satisfied and the plan is in violation of 29 CFR 2590.702(c)(1).
For an official copy of the Field Service Bulletin 2008-02 and checklist, go to http://www.dol.gov/ebsa/regs/fab2008-2.html. If you’d like to implement a wellness program, but aren’t sure where to start, don’t hesitate to contact the MEA Employee Benefits Team at 800-662-6238 or benefits@meainfo.org. Our experts would welcome the opportunity to assist you.
For Your Benefit: On February 20th, the Supreme Court cleared the way for 401(k) plan participants to sue their employers to recover losses of their plan assets which are a result of the plan administrator’s breach of fiduciary duty. This ruling emphasizes the need for plan administrators to dot their I’s and cross their T’s when administering their 401(k) plans. The case is LaRue vs. DeWolff, Boberg & Associates, Inc. www.MEAinfo.org
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Human Resources
Dating in the Workplace – What’s A Company To Do?
By Carrie Theisen, SPHR, MEA Senior HR Consultant
Office romance has become a hot topic these days. Recent studies have shown that inter-office dating is increasing; approximately 10 million office romances develop annually in the United States. For many people, the office is the easiest place to meet that special someone. After all, people are working longer hours, the percentage of women in the workforce is increasing, and work has become a social network. People who work together have something in common, which makes the first date much easier. On the
other hand, office romances can be a distraction causing productivity issues and complications. Plus, the prevalence of sexual harassment lawsuits makes many HR professionals nervous as they contemplate the issue of employee dating.
situation for those employees and the people who work with them.
Even with these potential pitfalls, most employees are optimistic about office relationships. Fifty-five percent of HR There are several issues to consider, both professionals responding to the Society for the employee considering dating for Human Resource Management a co-worker and for the organization (SHRM) 2006 Workplace Romance Survey contemplating the situation. First, it stated that marriage was the likely is important to remember that office outcome of the office romances they romances are not illegal. There are have encountered. Attitudes about no federal or state laws that prohibit dating in the workplace are changing, employee dating. with more and more people becoming However, inter-office accepting of the idea. relationships can cause other problems. They Should your organization have a can be distracting to the formal policy on office dating? employees involved and SHRM’s 2006 Workplace Romance Survey to others around them. found that more than 70% of employers When two co-workers do not have a formal policy prohibiting date, the office grapevine office dating. According to SHRM’s is active and rumors start survey research specialist, Michael Parks, to fly, which can lead to “creating an office dating policy can be productivity issues. If ‘touchy,’ and this might be the reason the dating relationship that most organizations do not have ends on a sour note, the such policies.” employees involved still have to work together, please turn to page 10 creating an uncomfortable
HR Policy Pointer:
Is your organization planning on hiring students this summer? If so, it’s important to make sure you’re in compliance with Child Labor Laws. In Pennsylvania, the law covers three age groups — less than 14 years of age, 14- and 15- year-olds, and 16- and 17-year-olds. Children under age 14 may not be employed or permitted to work in any occupation, except for: family farm work; domestic service, such as lawn or house chores; caddies; newspaper carriers; and juvenile entertainment performers with special permits. During the summer, 14- and 15-year-olds may work only between 7 a.m. and 10 p.m. for a maximum of eight hours a day, or 44 hours per week. Exceptions include newspaper delivery, caddying and some farm work. In addition, they are required to have a vacation certificate for each job. Children aged 16 and 17 may work a maximum of eight hours a day, or 44 hours per week during summer vacation with no night work limits. They are required to have transferable work permits to be used if they change jobs. Anyone 18 years or older is not subject to the Child Labor Law. In addition, a 17-year-old who has graduated or withdrawn from high school is treated as an 18-year-old and not subject to the state’s law. However, the Federal Fair Labor Standards Act (FSLA) may apply. Minors may not work more than six days a week and must be allowed a 30-minute meal period on or before five consecutive hours of work. With few exceptions, full-or part-time minors must be paid at least minimum wage, which is currently $7.15 per hour. Child Labor Laws in New Jersey and Delaware are very similar. If you have specific questions, call the MEA Hotline at 800-662-6238.
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Human Resources Designing and Implementing Bonus and Incentive Plans According to the WorldatWork 2007 Salary Budget Survey, 80% of organizations now use some form of variable pay to motivate and retain employees. Organizations have found that an effective incentive plan can lead to: • increased productivity • improved financial results • enhanced employee commitment Are you considering implementing a cash or non-cash incentive plan? MEA’s Compensation Consultants can help to determine the viability of introducing a plan in addition to assisting you with the plan design and implementation/ communication phases. Do you currently have an incentive plan in place that needs to be reevaluated? Some of the most common reasons why plans need revisiting are: • changes in your business strategy • plan has not generated any payouts • plan perceived by employees as an entitlement • issues of fairness over plan eligibility requirements MEA can also assist you with the reevaluation process to determine the appropriate elements to change and how to measure future plan success. For more information, contact Carrie Theisen, SPHR, MEA Senior H.R. Consultant at (800) 662-6238.
MEA’s Hotline Q & A Q
If our company publishes in our Employee Information Guide that we do not pay for unapproved overtime, is that upheld by the DOL? For example, if employees clock in prior to the start of their shifts, and we publish in our handbook that we do not pay for clock-in time prior to shift start unless previously approved for overtime, are we okay not paying the overtime?
A
No, unfortunately if the employee works, you must pay the time, whether or not it’s approved. The FLSA says that you must pay for work if you know or should have known the employee is working. That means that if you don’t want to pay them, you must find a way to keep them from clocking in and moving to their work area. Overtime is an even bigger issue. If you don’t want to pay for overtime, you have to physically stop employees from working and have them clock out. Just saying that you won’t pay for unapproved overtime won’t do it - if the employee works overtime, you must pay time and a half for the time. The DOL words this as employers who “require or permit an employee to work overtime.” The DOL tends to specifically look for this type of thing during an audit, and they are very sensitive to this particular issue. MEA Hotline: (800) 662-6238 www.MEAinfo.org
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Human Resources Dating in the Workplace continued from page 8
Although most organizations do not have a formal office dating policy, SHRM’s survey showed that 80% of HR professionals feel that manager/ subordinate dating should be off limits, primarily because it exposes the organization to sexual harassment lawsuits. Manager/subordinate dating – Potential sexual harassment? Organizations face a number of issues when a manager dates a subordinate. Other employees may perceive preferential treatment on the part of the manager, even if he/she is careful to avoid any appearance of favoritism. Companies face the biggest liability when a manager dates a subordinate and the relationship ends badly. If the subordinate accuses the manager of demanding sexual favors in return for better work or a wage increase, it becomes a “he-said, she-said” situation
that puts the organization at risk. In the worst case scenario which ends in a lawsuit, the company faces potential financial liability if a case of quid-pro-quo (“this for that”) sexual harassment is proven. What is sexual harassment? The EEOC defines sexual harassment as “unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature… when submission to or rejection of this conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance or creates an intimidating, hostile or offensive work environment.”
handled. Employees should be regularly trained on the harassment policy. The issue of office romance is complicated. Management must keep a close eye on dating that threatens office morale or productivity, or that can expose the company to liability. Generally, sexual relationships between managers and direct subordinates should be discouraged, if not prohibited. At the same time, employees should also be aware that it is permissible to ask a co-worker out on a date. As office social networks continue to expand, this is sure to be an issue for years to come.
MEA offers assistance for organizations dealing with these issues. Our Senior HR Consultants can provide assistance To protect themselves against sexual harassment claims, organizations should and sample policies through the MEA have a formal harassment policy in their Hotline. In addition, MEA offers training on harassment and other handbooks. A good policy will explain sexual harassment, address the fact that issues. For more information, contact us at 800-662-6238. the organization has zero tolerance for harassment of any type, and address how sexual harassment claims are
MEA’s Recruitment Desk If you are like many MEA members, you prefer to outsource the early stages of the employment process. You know how time-consuming the process is and how it can easily become sidetracked by other organizational priorities. You may prefer to leave recruitment to the experts and focus your time and effort on the final decision process. Rely on MEA for support in all aspects of the employment process, including: • Background & Reference Checking • Sourcing • Placement • Interviewing • Pre-Employment Testing and Assessments For more information regarding MEA’s Recruitment • Drug Screening Desk, please call MEA HR Services at 800-662-6238 • Skill Testing and ask for Kathy Muscarella. • Personality Assessments MEA’s Recruitment Desk offers services that cover all types of exempt and non-exempt positions, including executive and HR recruitment. Our professionals can tailor a plan to suit your needs and preferences. We are cost effective - billing for actual project time and costs rather than by percentage of salary. Our members : • are highly satisfied with our service • benefit from our knowledge of multiple recruitment sources that produce quality applicants. • know that MEA’s knowledge of regional compensation data helps them negotiate competitive hiring packages with applicants. • appreciate MEA’s consistent communication and coaching during the recruiting process.
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Training & Development Human Resources
Blended Learning – A Training Solution that Meets Various Needs By Clara Console, MEA Director of Membership, Training and Marketing
George Smith, an employee at XYZ, Inc. who was recently promoted to Supervisor, has just completed an on-line course titled “The Basics of Supervision.” He is scheduled to attend an instructor-led training program on March 27 called “Laws Every Supervisor Needs to Know.” On Fridays, a “coach” comes in to meet with new Supervisors, including George, to discuss current issues related to their new responsibilities. More and more organizations are using what is known in the training world as “blended learning” or “blended e-learning” – where different learning methods and programs are used to train employees. Although many believe that traditional instructor-led training is still the best solution for the majority of employees, blended learning has taken hold in many organizations. In many cases, the challenges of the workplace include addressing how to implement training programs – where employees are scattered globally, schedules do not permit for a centralized program, or when learning styles vary throughout multiple generations within the same organization. Blended learning not only offers a solution to the scheduling problem, but it offers a layering effect to training that allows the learner to grasp the learning, giving the individual a better chance of retaining the information. Administering a blended learning approach may seem complicated at first, but if the organization has several resources available, the process becomes easier. The different approaches that are available include: Synchronous/Online Training – this approach delivers training in a realtime, virtual classroom, such as web
broadcasts. Virtual classes call for shorter, more frequent training sessions that fit better into a learner’s schedule, since there is no travel time required. This type of learning allows face-toface interaction between the instructor and the learner. Another example of synchronous online training is the use of online chat groups.
Asynchronous/Online Training – this approach makes web-based or e-learning lessons available to learners at their own convenience- anytime - anyplace. A learner can easily fit an e-learning lesson into his or her work schedule to be taken as soon as it is needed. In addition, these lessons can be revisited at any time. Another example of asynchronous online training is an online discussion group – where participants can add their comments at any time. Synchronous/Offline Training – this is a traditional instructor-led classroom approach that allows learners and instructor to work face-to-face with each other, as well as with other learners. This approach is needed when interaction is at the core of the training objectives. Face-to-face coaching is another example of this type of offline training.
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Asynchronous/Offline Training – this approach uses other training materials, such as printed workbooks, reading materials, information on videos, or CD-ROM. This training resource is great for “homework” or “desk” assignments and is used to enhance other training. Asynchronous/ offline training can occur at home or in the workplace. Using a combination of these approaches can produce the best results. In addition, when the elearning (online courses via the web) component of the training is delivered through a Learning Management System (LMS) that is customized and configured to the organization’s needs, then an affordable mechanism tracks and monitors training results and can measure Return on Investment (ROI). Many organizations throughout the world are using blended learning to support their workforces’ training needs. No longer can they rely on instructor-led training to meet all of their needs. MEA is no different. Our association recently completed the research to find a cost-effective and widely used elearning provider. The results led MEA to partner with the Business Training Library (BTL) to provide e-learning, as well as a lending library of videos and CDs. Members can now plan their blended learning experiences through MEA by using a variety of training approaches offered through BTL. For more information on MEA’s Business Training Library (BTL), visit the homepage of our website at www. meainfo.org and click on the Online Learning Center at the bottom of the page or call Carol-Anne Minski, MEA Manager of Organizational Solutions at 800-662-6238.
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Training & DevelopmentHuman Resources For Our Manufacturers:
The Keys to a Continually Improving Workplace By Jeff Hartman - Advent Design Corporation, MEA Member
The most difficult step in any Lean-Six Sigma implementation is sustaining the changes that were made during a Kaizen event or as part of a Continuous Improvement effort. Sustain efforts in a Lean environment are typified in 5S (Sort, Set in Order, Shine, Standardize, and Sustain) workplace organization Kaizen events. Results of 5S events are typically sustained by posting before and after pictures of the work area, workplace check lists, area audits, and the use of recognition and rewards. A more challenging issue is the effort to sustain the implemented result of the Kaizen event related to work cells, kanban replenishment systems, standardized work, setup reduction practices, Six Sigma initiatives and overall Continuous Improvement efforts. I have found the key to sustaining all of these efforts is the effective use of performance metrics at a minimum of three distinct levels in the organization (1) the manufacturing floor, (2) the supervisory management level and (3) the executive level. I have worked in companies that are capable of slicing and dicing performance data via the computer system in a multitude of ways, that want to graph and track every employee movement, and of course, those that attach financial
measurements to manufacturing floor activities. The guidelines for the effective use of metrics are to Keep it Simple (KIS) and to address all three levels of an organization. (1) Keeping it Simple on the manufacturing floor at the operational level means a minimum of three measurements: Quality, Productivity and Service. On the Manufacturing floor I prefer not to have an overwhelming amount of computer generated data – quite simply I want my operators or technicians to periodically (hour, half day, shift basis) quantify and then plot their own performance at or near their workstations. Quality can simply be the number of units passing an internal quality test expressed as a percentage of the total units produced (i.e. 91 good units out of 105 produced equates to an 86.6% Quality level). Productivity is equally as simple: units produced per labor hour, i.e. a work cell with three employees consumes 24 hours of labor in a shift and produces 300 good units equates to 12.5 units produced per labor hour. The definition for service in my experience is “product delivered when the customer requires it.” If the combined demand for the day is 500 orders and 475 are actually shipped,
then the service level is 95%. These are simple straight forward and easy to understand performance measurements used to establish baseline performance on the shop floor. These measurements can then be shared with other employees via a bulletin board or other visual methods. Positive results can be used in employee recognition programs; to encourage improvement through change; and to track, explain and justify Continuous Improvement activities on the floor. (2) At the supervisory management level the number of metrics monitored please turn to page 19
Tips of the Trade: How to Survive Making a Presentation Your boss just told you that you have to present the results of your research to the employees in your company. Yikes!! You can already foresee the shaking of your knees, the sweaty palms... It’s not the end of the world, and YOU ARE NOT going to die! For those of us who fear making presentations in front of people, remember these key points: 1) Know your stuff. 2) Write an outline before you attack your presentation – focus on the most important points – remember, your audience needs to be awake to hear your presentation! 3) Use the PowerPoint software to support your presentation, not to over take it. Be cautious not to overload each slide with too many words – keep it simple! and 4) Practice, practice and practice some more. Good luck and break a leg! (only kidding) 12
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Leader to Leader
Trust, Pride & Camaraderie:
Fortune’s 100 Best Places to Work Survey Reveals What Employees Value Most By Jim Devine, MEA President & CEO incredible positive energy, and with that energy comes greater potential for developing your business.
Google again topped Fortune’s list of best places to work in its 2008 survey conducted by the Great Place to Work Institute. Although the Fortune magazine article focused on the many perks and unique benefits that the top companies offer employees, its website revealed cultural values as the primary driver of the rankings. As leaders of small to mid-sized organizations, we may perceive that we lack the resources to compete with the likes of Google, Wegman’s Food Markets and Starbucks, three of the top ten companies on the list. Limiting our thinking to costly fringe benefits such as in-office cafeterias, swimming pools, gyms and doggie day care, to name a few, would naturally lead us to that conclusion. However, the data behind the results indicates that while high-end perks are influential in attracting and retaining top employees, organizational leadership has a greater impact. A culture that fosters trust, pride and camaraderie is, according to the Great Places to Work Institute, what counts most with employees in determining whether, and to what degree, a company is a great place to work. Traditional benefits that may make up a baseline set of expectations are critically important as well. However, these are at the core
of the remuneration package that may be balanced with workplace culture as part of an individual’s decision whether to join or leave your organization, and perhaps most importantly to what degree they are engaged in their work as a current employee. There are tough decisions leaders need to make about where to invest resources to elevate employee morale and productivity. According to the 100 Best survey, clearly those of us who invest in the development of our employees and adopt a values-based approach in leading our organizations are benefiting both from a workplace environment standpoint, as well as in bottom-line results. Research results support the notion that the 100 Best have consistently outperformed the major US stock indices over the past 10 years since the survey’s inception. There are other benefits in cultivating a more positive work environment and becoming a better place to work: increased customer satisfaction, decreased employee turnover and more qualified applicants. For one thing, it is simply a more enjoyable experience to work with people who enjoy their work and the people with whom they work. Improving your work environment and developing a best place to work culture creates www.MEAinfo.org
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Where to start As leaders, we need to start by looking at our own values first. Developing a best place to work culture starts at the top, and buy-in from key staff members will occur more rapidly if the values we embrace are aligned with how we are viewed by those who work closely with us. DISC profiling and/or Myers’ Briggs leadership assessment tools are ideal for this purpose and may identify blind spots and gaps in our style. From this starting point you have several options in rolling-out a cultural change initiative, and which steps you take and in which order you proceed will depend on where your organization’s culture operates today vs. your desired state. Here are a few examples of actions to consider: • Develop workplace core values collaboratively with your employees aligned with your mission and vision - begin to engrain adopted values into your culture • Survey your employees for their opinions and identify where improvement is needed – communicate a plan of action to staff • Assess your rewards and recognition scheme versus industry benchmarks and identify areas where rebalancing or redeveloping programs are needed MEA assists our members in profiling leadership, assessing workplace culture and developing organizational change strategy. If you’ve thought about moving forward in assessing your workplace and have question, please contact me directly. I’d be delighted to assist you.
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From Beyond the Region
Summer Internships – Employer Concerns by Sally Weldin, Senior Human Resources Specialist Every year, interns from colleges and universities gain real world experience through business and academic alliances. If you consider using an intern directly from a college or university program, it’s important to understand what role the employer plays in the work experience and what’s expected of both the intern and the employer. Organizations are often puzzled about how to treat interns with regard to payment and whether they are really employees. If the college or university intern program has not addressed this specifically, then employers should look to the Department of Labor for guidance.
the activities of the intern (and on occasion the organization’s operations may actually be impeded by the intern);
the school as educationally relevant?
5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
5. Will the student perform work that other employees also perform, with the student doing the work for the purpose of learning and not necessarily performing a task for the employer?
6. The organization and the intern both understand that he or she is not entitled to wages for the period of the internship.
6. Is the student working and providing benefit to you less than 50% of the time and/or is the student in a shadowing/learning mode?
The Department of Labor also considers 7. Will you provide an opportunity for whether the student receives college the individual to learn a skill, process credit for the internship. If the benefits or other business function or operate of the relationship flow primarily to equipment? the intern, and if there is a sufficient 8. Is there educational value to the relationship between the work and work performed, that is, is it related to The Department of Labor created a six- the intern’s education, the likelihood the courses the student is taking is that the intern will not be part “safe harbor” for employees who in school? use interns. If your organization meets considered an employee. 9. Is the individual supervised by one all six parts or requirements, then the An organization considering an of your staff members? intern is not considered an employee unpaid internship program should be and is not subject to the Fair Labor able to answer “yes” to at least half of 10. Is it clear that a job is not Standards Act (FLSA), which regulates these questions: guaranteed upon completion of the wage payment. In order to qualify for 1. Is the work that you are offering an training or completion of the person’s the safe harbor: integral part of the student’s course schooling? 1. The internship must be similar of study? (Reference source: Wage and Hour to what would be given in a 2. Will the student receive credit for Opinion Letter FLSA 2004-5NA vocational school or academic the work or is the internship required 5/17/2004) educational instruction; for graduation? 2. The internship must be for the 3. Does the student have to prepare benefit of the intern; a report of his or her experience and 3. The intern must not displace submit it to a faculty supervisor? regular employees, but work under 4. Have you received a letter or some their close supervision; other form of written communication 1400 Opus Place, Suite 500 4. The organization must derive from the school stating that the Downers Grove, Illinois 60515 no immediate advantage from internship is approved/ sponsored by 800-448-4584 www.hrsource.org 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 more information about this network, please contact Joanne Powell at jpowell@meainfo.org.
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Legal Brief Can an Employer “Dock” an Exempt Employee’s Pay for a One-Day Plant Shutdown? By Nancy DuBoise, MEA Employment Attorney
Earlier this year, before this publication went to press, the Human Resources Manager of a member company called and asked the following question: “Is it permissible under the Fair Labor Standards Act (FLSA) for an employer to dock an exempt employee’s salary in the amount of one full day’s pay if the Company is closed for an entire day?” My answer was that this was a violation of the “no docking” rule, and thus was impermissible under the FLSA. More detail regarding the underlying circumstances, as well as the legal reasoning supporting my conclusion, is provided below. The Company had decided, and announced to all employees, in early 2007 that it would be closed for business on Monday, December 24, 2007 for Christmas Eve and on Tuesday, December 25 for Christmas Day. The Company told employees that Christmas Day would be a paid holiday for all employees, but that Christmas Eve would be a day off with pay only for those employees who used accrued paid leave (paid time off, or PTO) to cover the day. All employees who had one or more days left in their PTO bank as of December 24 were charged one PTO day and were paid for the day. Any employee, whether exempt or non-exempt, who did not have a PTO day left in his or her bank would have the day off, but would not be paid for it.
to Human Resources about the deductions in his paycheck. It was those emails from the disgruntled employee that prompted the HR Manager to call me seeking advice. It is clear that with respect to non-exempt employees, the FLSA requires only that they be paid for hours worked. In contrast, exempt employees must ordinarily be paid their regular weekly salary without regard to number of hours worked unless an exception to the “no docking” rule applies, such as an absence of one or more full days for personal leave, leave under the Family & Medical Leave Act (FMLA), or leave taken for sickness or disability pursuant to a bona fide leave policy or practice which provides paid time off for sickness or disability. Nor does this rule prohibit the docking of an exempt employee’s pay once he/she has run out of PTO and is absent for an entire day due to sickness or need to take care of personal business. The FLSA does not, however, permit docking under the circumstances presented in this case. The difference in the present case is that the closure
of the Company on December 24 was due to reasons “occasioned by the employer or the operating requirements of the business.” 29 C.F.R. §541.602(a). When it is the employer, and not the employee, who decides that there will be no work available for the employees on a given day—whether the plant shutdown is due to business slowdown, inclement weather, or the like--the FLSA requires that the exempt employee be paid for the day. What is ironic about the result here is that the exempt employees at our member company who ignored the directive to reserve one PTO day to be used for December 24 were paid for the day. Those exempt employees who complied with the directive had to use one of their PTO days in order to get paid for the day. While this is a seemingly irrational result, it is the result that the FLSA requires. Consider this case study before finalizing your holiday schedule for next year. As always, feel free to call me at MEA (800-662-6238) with any questions you may have regarding the FLSA, or any other employment law issue.
Prior to December 24, 2007, several exempt employees had exhausted all of their PTO for the year. Consequently, all of those employees were docked one day’s pay. One of the affected exempt employees, after doing some research on the Department of Labor’s web site, complained in a series of emails www.MEAinfo.org
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Industry Focus: Eye on Manufacturing Immigration Reform: Update High-Skill Visa Programs Manufacturers, who must compete on a global scale, are significantly affected by the lack of high quality, skilled workers. Legal, employment-based immigration has allowed small numbers of highly skilled, international personnel to put their talent to work for American manufacturers in researching, developing and introducing new products and services that have helped sustain our ability to remain competitive in a global market. America has always prospered by welcoming the best and brightest from around the world. In the last 15 years, foreign nationals have started 25 percent of U.S. venture-backed public companies, accounting for more than $500 billion in market capitalization and adding significant value to the American economy. Highly educated foreign-born professionals are one of America’s greatest competitive advantages, and we must not shut the door on these talented minds. Adopting a legal immigration system that better reflects market demands and provides the flexibility needed to respond to specialized skill needs is vital to maintaining manufacturers’ ability to fuel economic growth. While we work to address the long-term goal of improving overall educational quality, manufacturers need immediate, short-term solutions to obtain the skilled workers necessary to compete in our global market. Immediate efforts must be made to expand and modernize the current employment based (EB) and H-1B visa programs to ensure that talented international workers remain in the United States.
How Congress Can Help: Update the EB green card cap and exempt key categories of professionals, create certain exemptions from both EB
immigrant visa and H-1B caps and increase H-1B caps. Create a new student visa category that allows U.S. science, technology, engineering and math degree holders who have a job offer to transition directly from student visa to green card.
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.
Environmental and Safety Compliance Deadlines
May - June 2008 *May 10, 2008 – NESHAP Compliance Date for 40 CFR 63, Subpart FFFF - Miscellaneous Organic Chemical Production and Processes (MON): For an affected source, you must comply with the requirements of 40 CFR 63, Subpart FFFF no later then May 10, 2008. May 15, 2008 – Deadlines for Electronic Submittal of NJ Air Emission Inventory N.J.A.C.7:27-21.4. 16
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June 30, 2008 – Pursuant to Title 49 CFR Part 107, Subpart G (107.601 – 107.620), certain offerors and 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. Registrations are available for one-, two-, and three-year periods, starting July 1 and ending June 30, 49 CFR 107.608. www.MEAinfo.org
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MEA partners with Compliance Management International (CMI) to provide cost-effective and efficient means for managing environmental, health and safety issues. *Indicates item is new for 2008
Workplace Whiteboard Where do American Manufacturers Invest? Over 80% is Invested Right Here in America.
240 200 160 120 80 40 0 93
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FOREIGN
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DOMESTIC
SOURCE: U.S. Department of Commerce: Census Bureau Annual Capital Expenditure Reports, BEA Foreign Direct Investment Reports, and BEA Gross Domestic Product data.
Getting to Know the Staff at MEA
Julie Baker has been an employee of MEA for 9 years working as the Benefits Administrator for the Employee Benefits Services Department. Julie has earned the nickname “Mrs. Colombo,” for the way she investigates and resolves MEA members’ health insurance claim issues. When Julie is not pursuing claims and billing issues for our members, she is an active member of MEA’s Social Committee and a regular contributor to MEA’s monthly Pathway School student outreach activities.
Lydia Roddy, PHR, MEA’s HR Operations Specialist has been in the Human Resources Services department since 2006. Lydia manages the Background and Reference Checking Services and is involved in many of the administrative functions of the HR services department. Lydia graduated with a B.A. from Chestnut Hill College and received her Professional Human Resource Certification from HRCI in February. www.MEAinfo.org
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Surveys & Publications GUIDES
SURVEY REPORTS Regional
ADA Guide Members: $30.00; Non-Members: $40.00; S/H: $10.00
2008 Employers’ Guide to Employee Relations Laws and Regulations NEW Three states (PA, NJ & DE) plus federal laws and regulations in one guide.
FORM
AT!
Administrative and Office Support
Members: $295.00; Non-Members: $585.00; S/H: $10.00
Information Services
Members: $295.00; Non-Members: $585.00; S/H: $10.00
Engineering, Scientific and Technical
Members: $100.00; Non-Members: $135.00; S/H: $10.00 Purchase of three or more guides: Members: $80.00 each; Non-Members: $100.00 each; S/H: $10.00
Members: $295.00; Non-Members: $585.00; S/H: $10.00
Supervisory and Management
Members: $295.00; Non-Members: $585.00; S/H: $10.00
Family & Medical Leave Act (FMLA) Handbook & Pads
Pay Structures
Members: $170.00; Non-Members: $275.00; S/H: $10.00
• Sample policies: expanded definitions; • FMLA interactions with WC and ADA (includes three sets of pads)
Health Benefits
Members: $210.00; Non-Members: $310.00; S/H: $10.00
Members: $70.00; Non-Members: $110.00; S/H: $10.00
Salary Planning Guide
FMLA Pads Only (Set of Three)
Members: $70.00; Non-Members: $135.00; S/H: $10.00
1) Leave Request; 2) Physician’s Certification; and 3) Employer’s Response to Requested Leave
HR Policies, Practices and Benefits
Members: $360.00; Non-Members: $660.00; S/H: $10.00
Members: $40.00; Non-Members: $55.00; S/H: $10.00
Production, Maintenance & Service
Violence Goes to the Workplace: An Employer’s Guide
Members: $295.00; Non-Members: $585.00; S/H: $10.00
Members: $45.00; Non-Members: $60.00; S/H: $10.00
National
HIPAA Guide
National Executive Compensation
Members: $130.00; Non-Members: $180.00; S/H: $10.00
Members: $295.00; Non-Members: $460.00; S/H: $10.00
National Wage and Salary
Members: $160.00; Non-Members: $285.00; S/H: $10.00
POSTERS
National Pay Trends
Members: $70.00; Non-Members: $135.00; S/H: $10.00
Newly Updated, Laminated Federal 7-in-1; Pennsylvania 7-in-1
National Policies & Benefits
Members: $360.00; Non-Members: $660.00; S/H: $10.00
Meets minimum posting requirements. Avoids cluttered bulletin boards. • 1-10 - Federal-PA Members: $12.00 ea.; Non-Members: $17.00 ea.; S/H: $10 • 11-24 - Federal-PA Members: $10.00 ea.; Non-Members: $14.00 ea.; S/H: $10 • 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
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National Sales Compensation and Practices Members: $235.00; Non-Members: $445.00; S/H:$10.00
National IT and Engineering
Members: $325.00; Non-Members: $640.00; S/H:$10.00 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 x115 or email research@MEAinfo.org.
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Board Members & MEA Staff MEA BOARD OF DIRECTORS - 2008
CHAIRMAN
Ronald G. Allen, Chairman & CEO American Foodservice
MEA STAFF DIRECTORY Baehrle, Judy Senior HR Consultant
610-666-7330
TREASURER
Baker, Julie
Benefits Administrator
610-994-7623
SECRETARY
Console, Clara Custer, Wendy
Director, Membership, Organizational Solutions & Marketing
610-994-7624
Accounting Administrator
610-994-7625
Devine, Jim
President & CEO
610-666-7330
DuBoise, Nancy
Employment Attorney
610-666-7330
Dutton, Kay
Research Specialist
610-994-7627
Henderson, Kelly Training Administrator
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Kelly, Carol
Receptionist
610-666-7330
Maurer, Melissa
Account Executive, Employee Benefits Services
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Mazza, Beth Ann Membership Ambassador
610-994-7631
McGuire, Shawn Manager, Finance & Administration
610-994-7632
Minski, Carol-Anne Manager of Organizational Solutions
610-994-7633
Muscarella, Kathy Senior HR Consultant
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Oehlert, Janie
Manager, Employee Benefits Services
610-994-7635
Powell, Joanne Roddy, Lydia
Manager, Membership & Marketing Administration
610-994-7636
HR Operations Specialist
610-994-7637
Theisen, Carrie
Senior HR Consultant
610-666-7330
Zoll, Susan Manager, Training Operations & Marketing HOTLINE
610-994-7639
David Bailey, CFO, Speakman Company Joseph Gallagher President, Gallagher Fluid Seals, Inc.
DIRECTORS
Wilbert Abele President, Henry Troemner, LLC Terry D’Alessandro, Exec VP, Market CEO, Sovereign Bank G.A. Taylor Fernley, CEO/President, Fernley & Fernley Lewis W. Hull Chairman, Hull VacPump Corporation Nissen Isakov, President, LCR Electronics Henry Justi Chairman/CEO, Justi Group, Inc. Edward J. Kelleher President, Kelleher Associates, Inc. Jeffrey McFadden, GM & COO The Union League of Philadelphia Chuck Polin President, Training Resource Group Walter Reimann President, The Fredericks Company Richard Silliman President, Penn Chesapeake Advisors, Inc.
PRESIDENT & CEO
610-666-7330
James F. Devine
The Keys... continued from page 12
increases and are directly related to the primary metrics monitored at the floor level. The sophistication of information-gathering evolves, and the use of the information broadens dramatically – the “rubber meets the road” at this level. ‘Quality measurements’ might include reasons for a unit failing, i.e. defective parts, defective processing equipment, poor work practices or a simple lack of execution by the employee completing the work. ‘Productivity measurements’ might include a piece of equipment that cannot hold tolerance at a prescribed speed, downtime due to production issues (changeovers, absenteeism, etc), or lack of trained employees. Service measurements at this level include lack of parts (either internally or externally based), defective parts or lead-time. ‘Measurements’ at this level
are company specific and are easily viewed in a histogram format and readily lend themselves to a Continuous Improvement work environment. (3) ‘Measuring performance’ at the executive management level is a much more difficult in my experience. At this level the production metrics and the financial metric relationships are married together to depict the overall health of the company. Quality information from the floor will relate to a Cost of Quality, productivity at the floor level can relate directly to Cost of Goods sold and inventory levels (Raw, WIP, and Finished). The ability to service customers ties to sales information and will translate to repeat business, and improved customer relationships. In a nutshell, management at this level must be able to translate floor metrics to the financial statements and be able to explain these to all levels www.MEAinfo.org
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of the organization. The company executives are critical to the ground level success of all continuously improving organizations and at the bare minimum they: set the overall direction of the company, provide the resources for employees to complete their day to day tasks, and reward excellent performance at all levels of the organization. Continuously improving workplaces are constantly changing environments and the success of these efforts are rooted in understanding the baseline performance, theorizing a change/ improvement, instituting the change/ improvement and then measuring the baseline performance via metrics. Understanding and institutionalizing the use of effective metrics at all levels of the organization is one of the most critical success factors to sustaining and improving the workplace.
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Highlights of 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, Controllers and CFO’s