October 2013 MSEC Bulletin by MSEC

OCTOBER 2013

EMPLOYMENT LAW

SURVEYS

HUMAN RESOURCES

TRAINING

Part XIV: Focus on Benefits Data and Employee Communications Page 1 Focus on Benefits Data and Employee Communications Page 2 Federal Contractors Prepare for Monumental Affirmative Action Changes Page 3 You Asked: How Should Employers Address Domestic Violence at Work? Goals: What Gives Goals Momentum? Page 4 Public Employers: Benefits and Burdens of Termination Hearings What Makes Employees Unhappy? Page 5 Using a Pre-Termination Checklist Page 6 Survey News Page 7 Economic Perspective

Peggy Hoyt-Hoch, Employment Law Services More than 640 organizations from Arizona, Colorado, and Wyoming participated in MSEC’s first Health Care Reform Survey. Of those, 639 currently offer employee health benefits. More than 400 of the organizations surveyed said they have a “good” or “excellent” understanding of most health care reform requirements. However, fewer than half have conducted a cost analysis. Of those who have analyzed costs, 86 percent see costs increasing with approximately one quarter projecting increases of more than 10 percent. The majority of organizations—70 percent— indicate that they plan to communicate to employees about health care reform during open enrollment. While open enrollment is a good time to communicate benefit information to employees, MSEC suggests breaking from that tradition to transition benefit communications into a year-round activity focusing on health care, wellness, and decision-making tools. Employers should invest in a broad-based, strategic plan for a comprehensive benefits education and communication campaign to help employees understand the changes, reach a comfortable level of knowledge, and learn to use various resources. As developments occur over the next three to five years, employee communications will be the foundation upon which employees will need to depend. Here are some considerations as you develop your benefits education and communication campaign:

1. Define Terms. When was the last time you ensured that your employees understood the differences between deductibles, co-insurance, co-pays, and out-of-pocket maximums, as well as pre- and post-tax employee contributions to a plan? Make a glossary available to them. 2. Communicate Wellness. Most of us are aware of the need to eat healthy foods, exercise, manage stress, and avoid smoking. Instead of educating employees on what they already know, employers should design employee motivators and incentives to get folks moving and share various health and wellness options for them and their families, such as online tools and provider report cards. 3. Maintain a Business Focus. Ensure that your benefits communications strategies support your vision, mission, and goals and directly align with your human resources and benefits strategies. Generally, employers are shifting their communications strategies to educate employees on their available options, as well as the price and value of each. Customize the incentives to the specific needs and interests of your workforce. Focus on fun, competition, and novelty. 4. Vary Communications. Think of creative ways to reach employees that differ from how you’ve communicated in the past. Start with a unifying theme for benefits communications. Consider supplementing intranet, email, and mail communications with in-person visits, focus groups, brown-bag gatherings, etc. Mix up the methods, but keep the strategic theme clear and consistent. Continued on page 2

Denver 303.839.5177 Scottsdale 602.955.7558 Colorado Springs 719.667.0677 Fort Collins 970.223.4107 Fax 303.861.4403 Toll Free 800.884.1328

Federal Contractors Prepare for Monumental Affirmative Action Changes Melinda Sanders, Affirmative Action Planning Services Federal contractors must prepare for monumental changes in affirmative action planning. New regulations for veterans and qualified individuals with disabilities become effective 180 days after publication. As of this writing, that is likely to be mid-March 2014. The regulations require contractors to invite applicants to voluntarily self-identify as protected veterans or individuals with disabilities. This information has never been solicited from applicants. Contractors will be able to invite applicants to do this new self-identification at the same time they ask for race and gender self-identification. The Office of Federal Contract Compliance Programs (OFCCP) will prepare a form that contractors will be required to use for this purpose. Contractors must prepare their Human Resource Information Systems and Applicant Tracking Systems to capture pre-offer self-identification data. Within the first year of the effective date of the regulations, and at fiveyear intervals thereafter, contractors will be required to invite their employees to voluntarily inform them whether they believe they are individuals with

disabilities. At least once during the intervening years, contractors must remind employees that they may voluntarily update their disability status. Contractors must be prepared to address any issues that may arise under the Americans with Disabilities Act (ADA) with this self-disclosure. The regulations encourage, but do not require, contractors to engage the individual identifying as disabled in discussions about reasonable accommodation. Contractors should post on their HR webpage or online application portal a notice to job applicants who may need a reasonable accommodation to perform the functions of the job that they are entitled to one under the ADA. Contractors must set an annual hiring benchmark for veterans based either on the national percentage of 8 percent or using a more specific, five-factor analysis incorporating data supplied by the OFCCP and factors unique to the contractor. The benchmark is a tool to measure the contractorâ&#x20AC;&#x2122;s progress in employing protected veterans.

Contractors must work toward attaining a utilization goal of 7 percent employment of qualified individuals with disabilities for each job group in their workforces. Contractors with fewer than 100 employees can use a 7-percent goal for their entire workforce. Contractors must complete annual self-assessments of their outreach and recruitment efforts by looking at current and two previous years of data. These records must be maintained for three years. This enables contractors to better determine the effectiveness of their recruitment and outreach activities over time. Affirmative Action Plans (AAPs) are not always completed according to schedule. Federal contractors scheduled to produce their AAPs before the effective date of the new regulations, but who do not have their written AAPs in place on the effective date, are expected to follow the new regulations. Myriad other new requirements await federal contractors. To prepare, MSEC will offer a half-day class in January 2014.

Continued from page 1

5. Send Required Notices. Send the Exchange Notice to all employees before October 1, 2013. Watch for other forthcoming employer-required communications. 6. Inform of Tax Consequences. While employers are not required to educate employees about their individual responsibilities under health care reform, we recommend that at a minimum you advise employees that failure to enroll in a plan, beginning generally on January 1, 2014, may trigger a tax penalty for them and their family members. 7. Be Direct and Honest. There is typically good and bad news in any benefits communication. With health care reform, focus on the good news, but do not fail to educate employees as to any not-so-good news, as well. This becomes particularly important in preparing for 2014, as it will be individual employees and perhaps their families who must be fully

The Bulletin

aware of the financial consequences (i.e., tax penalties) of not electing health care coverage. 8. Ensure Clear Communications. Prepare educational and resource materials that are clear, precise, and simple. Read drafts as though you were an employee and imagine their responses. If the information could be confusing or overwhelming, b reak it down into smaller pieces. 9. Anticipate Questions. Respond to anticipated employee questions in your communications plan. This may reduce the number of emails and calls from employees. Offer other selfservice resources, including those from your insurance and medical providers, for employees and their families interested in further exploring topics you address in communications.

October 2013

MSEC.org

How Should Employers Address Domestic Violence at Work? Tina Harkness, Membership Development Domestic violence is a serious public health problem affecting millions. The statistics are grim. Every day, three women in the U.S. are murdered by a current or former intimate partner and nearly one-third of American women report being physically or sexually abused by a husband or boyfriend at some point in their lives. Domestic violence doesn’t stop when victims go to work. It follows them, sometimes quite literally, resulting in violent workplace encounters, stalking, and threatening phone calls. It also affects work in the form of absenteeism, lost productivity, and other work interruptions for victims. One study found that 74 percent of employed battered women were harassed by their partner while at work. Domestic violence also affects an employer’s bottom line. The annual cost of lost productivity due to domestic violence has been estimated at $727.8 million and over 7.9 million workdays. Since chances are high that you employ someone affected by domestic violence, what should you do? Address Domestic Violence in Your Handbook. Often antiviolence policies are focused only on violence between co-workers or from customers. Publicize Resources. Let employees know what resources are available to them and who they can contact for information and assistance. Contact your Employee Assistance Program (EAP) or local domestic violence assistance organizations to

give presentations or provide written materials that can be made available to employees. Recognize the Signs. Most supervisory training discourages delving into employees’ personal lives. Domestic violence situations generally do not resolve themselves on their own. Supervisors trained to recognize the signs of domestic violence may be able to intervene and refer employees to resources that can prevent the violence from escalating. Keep an Open Door. Foster an environment where employees feel comfortable bringing their concerns forward. Supervisors and HR should be visible, available, and approachable by employees. Fulfill Your Legal Obligations. Employers have legal and ethical obligations to provide safe workplaces. Seek law enforcement and legal counsel’s assistance if you become aware of a threat. And be aware that you may be required to provide leave to victims for legal, housing, and medical care purposes under state law or the Family and Medical Leave Act. Recognize Your Limits. Domestic violence is not a problem employers should attempt to solve. Employers should not promise to protect employees from further harm. Rather, the employer’s role is to refer employees to appropriate resources, be that law enforcement, domestic violence assistance programs, medical care, or all of the above and to facilitate employees’ receiving assistance through time off, flexible scheduling, and the like.

Goals: What Gives Goals Momentum? Kathleen Hart, Human Resource Services With 2014 just around the corner, now is the time to create goals that stay alive and energize employees. To create goals with this kind of momentum, two key factors need to be addressed: (1) how the organization approaches goal setting and (2) what needs to be included in the action plan. First, how to approach goal setting: Ensure Goals are Crucial. What are the key targets that have to happen for the organization to succeed? How strong of a tie do these key targets have to your organization’s mission and vision? When organizations have too many goals, it is hard to convey what is really important and where you want employees to focus their energy. The more focused the goals, the more focused the energy throughout the organization toward a common purpose. Make the Connection. How aligned are employees’ goals to department goals and to the organization’s goals? For goals to

The Bulletin

be meaningful, employees need to see how their goal makes a difference to the organization and that they play a significant part. Paint a Picture. How can the goals be visualized and engage the imagination of employees? CEO Brian Scudamore of the waste removal company 1-800-Got Junk built a vision wall with a sign “Can You Imagine?” This synergistic process led the company to amazing goal achievement. Second, develop a well-thought-out action plan. While energy can be high when setting goals, an action plan gives the goal “legs” to keep climbing the mountain one step at a time. Both the employee and manager need to be involved in developing an action plan with doable steps and key check-in points. Action Steps. What steps need to be taken to accomplish the goal?

Octobber 2013

Continued on page 5 MSEC.org

Human Resources

Benefits and Burdens of Termination Hearings Lorrie Ray, Membership Development In the public sector, having a pre- and post-termination hearing process is neither atypical nor required. The fact that both statements are true raises questions about the value of having such a process. Public sector employers should understand that if they make promises of future employment, either deliberately or accidentally, those promises can create due process rights in employment. Due process rights create the need for pre- and post-termination hearing processes. It is also true that public sector employers may choose to have pre- and post-termination hearing processes without creating due process rights, so long as they do not promise future employment to their employees.

This can reduce the cost, headache, and heartburn of contending with employee lawsuits. If employees trust the process to be fair, many employers find that they simply are not sued by outgoing employees and difficult terminations are, by and large, handled with ease. To avoid the process becoming an administrative nightmare, it must fit the size and complexity of your organization. A large city may have hearing officers, a department that handles hearing procedures, and highly formal hearings that resemble court proceedings. In contrast, a small recreation district may have the head of the district act as a hearing officer, with clear, but less formal processes that are easy to administer with just a few staff. The right “size” process is critical to making the process work well.

Governmental entities across the country have pre- and posttermination hearing processes. Some appreciate the process and others find it to be an administrative nightmare, and it’s important to understand why.

If you have more questions about this topic, please let us know. We are happy to help you design just the right process, meeting legal requirements and organizational needs.

Those who appreciate the process do so because it allows employees to have their say when leaving involuntarily.

What Makes Employees Unhappy? Kate Bartlett, Human Resource Services HR Solutions, Inc. recently compiled a list of top 10 employee complaints by analyzing recurring themes in employee surveys. Data were compiled from over 2.2 million respondents with 2,100 organizations. What were the common themes? Perhaps not surprisingly, the top three complaints were linked to compensation. 1. Higher Salaries. More pay is the most common complaint among employees. Are your pay ranges competitive with those of other employers in your industry and area? 2. Internal Pay Equity. Pay compression results when newly hired employees are paid more than longer-term employees. Have you evaluated to determine if pay compression is present in your organization? If it is, adjust the pay of longer-term employees appropriately. 3. Benefits Programs. (particularly health and dental insurance, retirement, and paid time off/vacation days). Many employers have passed the rising costs of health care along to their employees creating unhappiness and, in some cases, actual pay decreases. Have you evaluated the impact of rising benefits costs on your employees’ take-home pay?

The remaining complaints were linked to management issues. 4. Over-management. Employees desire empowerment and enablement. Does your organization have too many supervisors for the number of workers? Are your supervisors guilty of micromanaging? 5. Pay Increase Guidelines for Merit. Most employees support a merit pay system. Does your pay structure reward contributions to the organization? Do supervisors communicate clearly about what behaviors and contributions will result in increased compensation? 6. HR Department Response to Employees. Is your HR department responsive to employee questions and concerns? You may be busy with policies and compliance, but employee assistance should be your HR department’s driving motivation. 7. Favoritism. Rules, policies, behavioral guidelines, training opportunities, and time off should all be given consistently to employees. Are your supervisors treating employees fairly? 8. Communication and Availability. Happy employees feel valued and appreciated, and this helps them be more productive. Taking time to regularly greet and recognize your Continued on page 5

The Bulletin

October 2013

MSEC.org

Human Resources

Using a Pre-Termination Checklist Bev Sinclair, Human Resource Services

Continued from page 3

Since there is no such thing as a risk-free termination, terminating an employee can be a daunting prospect. Managers and HR professionals can, however, take steps to mitigate the risks involved. HR and management should review these questions to ensure that the termination is supported by business reasons and is consistent with organization policies and practices:

Timing. What is the timeline for the action steps to be achieved? Resources and Support Needed. Who does the employee need to partner with? What resources are needed?

• Have there been any verbal or written promises, such as statements in an employee handbook or offer letter, which the employee could claim have been violated?

Potential Barriers and Possible Solutions. What can be done when facing obstacles or difficulties to goal achievement?

• Are there any employment contracts or agreements in place that should be reviewed and considered?

Success Measures. What successes demonstrate progress toward the goal?

• Has the employee complained about company wrongdoing or violation of law?

Progress Review Dates. When will meetings be held to review goal progress? This is a good time for managers to take time to recognize achievements and provide doable steps in moving forward.

• Does the employee know the expectation, standard, or policy for which he or she is to be discharged? • Is there a discipline or corrective action policy in place? If so, has the policy been consistently administered? • Has the employee received prior oral or written counseling and/or warnings? (This may not apply to major infractions.) • Were the consequences of failure to comply with the standard or expectation clearly communicated to the employee and does he or she understand the consequences of not meeting the standard or expectation? • Was the employee given a chance to explain? • Was the matter investigated thoroughly? • Has any other employee received better treatment for the same issue? • Is the employee in a legally protected category? • Are there any mitigating factors such as illness or death in the family that should be considered before terminating the employee? • Does the documentation in the employee’s personnel file support the case for discharge? • Are there viable alternatives to discharge such as medical leave or a final written warning? • Would an uninvolved party believe the termination to be appropriate? Does the punishment fit the crime?

By knowing how your organization approaches goal setting and how to develop solid action plans, your organization can create meaningful and doable goals with positive momentum.

Continued from page 4

employees’ contributions pays big bonuses in employee engagement and retention. Being available to answer questions and provide direction helps them feel important. Do your supervisors take time to communicate regularly and openly with all their employees? 9. Heavy Workloads. Many companies are understaffed and employees feel they’re expected to do too much in the time they have. This trend is not expected to change as business demands grow. Do your employees have opportunities to participate in training and development to help them be more productive? Do you consider your employees’ inzput when looking at efficiencies and process improvements in your organization? 10. Facility Cleanliness. Employees want to work in a clean well-organized environment. Are you doing all you can to make this happen?

• Is a waiver and release agreement appropriate? Use of a pre-termination checklist can reduce the risks inherent in terminating employees, but it’s important to develop a list that is appropriate for your organization. Solicit input from all involved in terminations to be sure you have a list that works for you. The Bulletin

Octobber 2013

MSEC.org

Survey News

Notice of Surveys Being Conducted

Increasing the Value of MSEC Surveys Did you know MSEC has over 40 compensation and benefits surveys available for FREE to our members? Literally right at your fingertips? Want to know the average salary for an accounting clerk in your area? What about how much other employers your size are contributing to employees’ retirement plans? Curious how many weeks of vacation other companies in your industry are granting per year? MSEC’s various surveys answer these questions and more! Results from MSEC surveys can be accessed through our website, MSEC.org.

2013 Miscellaneous Benefits Survey – Arizona, Colorado, and Wyoming This biennial survey collects data for topics such as hiring/employment practices, hours of work, automobile/mileage reimbursement, tuition aid, moving allowance, and volunteer/community service among many others.

Skeptical of FREE? There really is no fee. You don’t even have to participate to have access to the data. It’s yours as an MSEC member! Okay, so there is a tiny catch, and here it is… Participants Wanted!

Mental Health Compensation Survey

Participation levels have continued to be challenging in the industry-specific surveys in recent years. As the Surveys Department embarks on implementing our new PeriscopeIQ survey system, the completion process will change slightly. What does this mean for you? In order for us to produce the final results in a timely fashion, it requires two things from our members: participation and commitment participation deadlines. If you are a participant - thank you! If you have not yet participated (or haven’t done so in a while), please consider contributing. MSEC surveys rely on the support of our members to produce the #1 data source in the region. Help us help you!

This survey is being conducted online. Emails with a link and an access code to participate were sent mid-September. A copy of the survey is also available on our website at MSEC.org. If you have not received this email, please call the Surveys Department to get your password to complete the questionnaire. Participants of this survey will receive a custom analysis comparing their miscellaneous benefits to other organizations within their industry type and employment size.

Brokers/Insurance Compensation Financial Services/Trust Compensation Hotel Compensation Mining Compensation & Benefits Non-Profit/Foundation Compensation Survey – Arizona, Colorado & Wyoming Senior Services Compensation Survey

Surveys Now Available 2013 Housing Authority/Property Management The 2013 Housing Authority/Property Management Survey collected data for 23 jobs. Twenty-one organizations reported data for both the business classification positions and the property classification. Data also include percentage increases in pay for 2012 and projections for 2013 and 2014.

Special Studies Center of Performing Arts Positions 4 organizations. 05B/13 Pay Advances 8 Metro Denver Public Employers. 09B/13 Call Center Study 8 organizations. 10B/13 Childbirth Educator 9 Health Care organizations. 11B/13 Database Administrators with Oracle (PeopleSoft) Identity Management 34 organizations. 12B13

To request copies of the surveys, please contact the MSEC Surveys Department. Copies of these resources are available to authorized personnel of MSEC members. Call 800.884.1328, email surveys@msec.org, or go online to MSEC.org.

Sales/Rental Coordinator 4 organizations. 13B/13

The Bulletin

October 2013

MSEC.org

Unemployment Rate DENVER-AURORABROOMFIELD MSA

COLORADO

Latest Date Latest Figure / Year Ago

6/13 EN 7.3% / 8.3%

6/13 DN 7.6% / 8.4%

WEEKLY HOURS (MFG.) Latest Date Latest Figure / Year Ago

6/13 N 42.4 / 39.3

HOURLY EARNINGS (MFG.) Latest Date Latest Figure / Year Ago

6/13 N 27.06 / 27.57

Figures reported for Denver, Colorado and U.S. are from the Current Population Survey [Federal Method]

PHOENIX-MESAGLENDALE, AZ

ARIZONA

WYOMING

UNITED STATES

6/13 EN 7.2% / 7.6%

6/13 DN 8.5% / 8.7%

6/13 DN 4.5% / 5.5%

7/13 A 7.4% / 8.2%

6/13 N 39.2 / 37.9

6/13 N 41.5 / 42.2

6/13 N 41.8 / 42.2

6/13 N 37.5 / 39.3

7/13 AP 41.7 / 41.7

6/13 N 24.30 / 25.43

6/13 N 19.13 / 18.54

6/13 N 18.67 / 18.16

6/13 N 21.96 / 22.16

7/13 AP 19.30 / 19.11

(CPI) Consumer Price Index DENVER, CO

PHOENIX-MESA, AZ

U.S.

1982-84 = 100

DEC. 2001 = 100

1982-84 = 100

Latest Date Latest Figure / Year Ago % Change

Jan-Jun 2013 N 219.6 / 213.6 +2.8%

Jan-Jun 2013 N 125.2 / 123.9 +1.0%

7/13 A 229.8 / 225.3 +2.0%

CPI-U* All Urban Consumers Latest Date Latest Figure / Year Ago % Change

Jan-Jun 2013 N 229.1 / 223.0 +2.8%

Jan-Jun 2013 N 125.6 / 124.1 +1.2%

6/13 A 223.3 / 228.8 +2.0%

CPI-W* Revised CPI for Urban Wage Earners & Clerical Workers

(ECI) Employment Cost Index

Private Industry Workers Manufacturing Service-providing Industries** Mountain Region*** State/Local Government Workers

WAGES & SALARIES

TOTAL COMP.

12 Months Ended

6/13 N

1.9% 2.1% 1.8% 1.8% 1.0%

1.9% 2.0% 1.8% 1.8% 1.8%

NOTE: Denver-Aurora MSA includes 10 counties: Denver, Arapahoe, Adams, Jefferson, Douglas, Broomfield, Elbert, Park, Clear Creek, and Gilpin. * CPI data for Wyoming is not available. ** Includes the following industries: wholesale trade; retail trade; transportation and warehousing; utilities; information; finance and insurance; real estate, rental and leasing; professional; scientific and technical services; management of companies and enterprises; administrative support; waste management and remediation services; education services; health care and social assistance; arts, entertainment, and recreation; accommodation and food services; and other services, except public administration.

DEFINITIONS/SOURCES (1) P = N = A = D = E = R = C =

Bureau of Labor Statistics, U.S. Dept. of Labor Preliminary Data Not Seasonally Adjusted Seasonally Adjusted Reflects revised population controls and model reestimation Reflects inputs, reestimations, and new statewide controls Revised Corrected

For more information: www.bls.gov *** Includes the states of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming.

The Bulletin

Octobber 2013

MSEC.org

PRSRT STD U.S. POSTAGE PAID DENVER, COLORADO Permit No. 552

1799 Pennsylvania Street P.O. Box 539 Denver, Colorado 80201-0539 800.884.1328 303.839.5177

Our experts provide the services, products, and connections that solve your Employment Law, HR, Training, and Surveys concerns . . .

With One Call!

EMPLOYMENT LAW

SURVEYS

HUMAN RESOURCES

TRAINING

Your Prescription for Health Care Reform Compliance Call or email MSEC today to get started on your company’s individual health care assessment. If requested, MSEC can also provide a proposal to have a benefits specialist assist in the implementation of the “action steps.” Call 800.884.1328 or email lr@msec.org for more information.