Workplace Matters Magazine March-April 2016 by MSEC

MSEC Workplace Matters Magazine

MARCH-APRIL 2016 | ISSUE #2

MARCH-APRIL 2016 | WORKPLACE MATTERS MAGAZINE | ISSUE #2

Contents 3

A Note From the Editor

Employment Law Update Conference 2016 – Did you vote for your favorite topics?

Member Profile - YESCO

Partner for Performance

Link ROI to Workplace Behaviors

Affirmative Action Plans: What’s the Big Deal?

What’s Happening in Your Region?

Top 5 Workers’ Compensation Expense Reduction Strategies

Staff Spotlight - Pam Bennison

How to Evaluate Compensation Surveys

On the Cover Celebrate your success! Life may not always be filled with excitement or confetti surprises, but with your membership at MSEC, we strive to make you feel that way every day!

Trivia Fun Based on statewide precipitation, can you rank our regional states (Arizona, Colorado and Utah) from driest to wettest? Answers: Utah #2 Arizona #4 Colorado #7 (nationwide, Nevada is the driest and Hawaii is the wettest)

2 | MARCH-APRIL 2016

Lorrie Ray

A Note From the Editor Membership Development

Now that we have regional resources we feel stronger, and we want our members to feel stronger too! In this issue, we want to “Celebrate Your Success” by providing a bold palette of assistance so that you can thrive along with your organization. Whether you need to resolve conflict in your workplace, or become a thought leader, we can help. Read the articles inside, and then give us a call to talk more. Keep these lofty goals in mind while you tackle the tactical issues too. We love to help you with day- to-day issues and with our Annual Employment Law Update being held in Arizona, Colorado, and Utah we keep you posted on the legal issues you need to digest in order to have sound policies in place. Read more about the topics we will cover. We have a great breadth of information you can use. We have rich, deep information from our compensation and benefit surveys, so please read the articles about our surveys . Also, don’t forget to take a look at what you need to know for background checks. There is an influx of state and local laws in this area, and you may be impacted. Get to know us and the members we serve by learning about the business and individual featured in our member and employee spotlight. If you want to be featured in the magazine or on our website, let us know. We want to represent the entire region, and Colorado members have been good about getting their name out there. We want to represent all states, so if you are from Arizona or Utah, we would love to hear from you.

Colorado Culture of Health Conference Colorado Convention Center | Denver, CO April 27, 2016

The Colorado Culture of Health is the premier conference for employers and professionals to learn about evidence-based wellness programs and how to shift their worksite culture to promote employee health and well-being.

Members of MSEC or CBGH

Non-Members of MSEC or CBGH

$179 per person (3 or more attendees, from same company $169 per person)

$199 per person (3 or more attendees, from same company $189 per person)

To register register, by email registration@msec.org or callor 800.884.1328 Please email at registration@msec.org, call 800.884.1328 MARCH-APRIL 2016 | 3

Employment Law Update Conference 2016 – Did you vote for your favorite topics? Mark Parcheta, Employment Law Services

The tragic, violent events occurring across the country and around the world have many employers asking if they are prepared in the event Workplace Violence appears on their doorstep. But will this timely and critical topic make the agenda? Are you stumped on how to manage, let alone accommodate, Mental Health Issues in the Workplace? Then I hope you voted for this important topic.

We’re very excited about the upcoming 2016 Employment Law Update Conference! This year, we took a new approach to the agenda by letting you, our members, select the topics. We are so impressed by the number of votes you cast that you may have permanently changed our planning process. Thanks for participating! Our mission for the Employment Law Update is to present the issues that are most significant and impactful to the human resource profession. Our goal is to arm you with the knowledge and practical advice you need to navigate the expanding scope of employment law liability, and we strive to do it in an engaging, entertaining manner. On the ELU “ballot” this year is the ever-popular Legislative and Case Law Year in Review. The traditional keynote presentation made the cut this year. Doing well in the early voting was Blurred Lines, a discussion of when HR should get involved with off-duty employee conduct. EEOC is championing the concept of Unconscious Bias in its enforcement actions. Did you know that you can discriminate against someone and not even know it? We’ll explore the validity of the concept and its application to employment discrimination claims, but only if this topic gets enough votes!

4 | MARCH-APRIL 2016

One of the most difficult HR issues today is sorting out Complex Leave Issues under the FMLA and ADA. The voting will tell us if you agree. Finally, we’ll address accountability in the workplace. Is it just a buzzword, or truly part of your organizational culture? Please join us at MSEC’s 27th Annual Employment Law Update, the most popular, entertaining, and informative employment law conference in the region. Dates and locations include: Scottsdale, AZ on May 5; Grand Junction on May 13, Fort Collins/Loveland, CO on May 16; Colorado Springs, CO on May 20; Denver on May 26, and our newest location, Salt Lake City, on June 8. To register call 800.884.1328 or go to MSEC.org.

Member Profile - YESCO

Since 1920, YESCO has set the standard for quality, innovation, and customer service in the sign-making industry. YESCO offers signs of all types and sizes–from simple wayfinding plaques to towering spectaculars that spring to life in dazzling color, motion, animation, and video. YESCO is a one-stop shop for the full spectrum of sign services, including design and engineering, manufacturing, installation, service, and ongoing maintenance. Their “green” electronic signs substantially reduce energy consumption while cutting operating costs. The YESCO name has become synonymous with custom signs. Having created many of the world’s most complex signs, they have the expertise, equipment, and processes to produce multi-dimensional signs, digital displays, specialty lighting, and architectural elements that will add visual appeal and functionality to interior and exterior venues. Customer service is the backbone of YESCO’s success. Their management team has earned a reputation for well-organized, solutions-oriented, client-centered, focused service. Their values-driven philosophy, combined with a longstanding commitment to doing things right, means that all of their clients–regardless of the size of their projects–are treated with the integrity and respect they deserve, while benefiting from the resources and support of the entire corporation. YESCO has approximately 1,000 employees, more than 40 offices, and operates three state-of-the-art manufacturing plants featuring automated and custom equipment. Additional smaller manufacturing and service facilities are located throughout their operating area. YESCO’s 484,000-plus square feet of plant and offices allow them to service customers efficiently. Their fleet includes over 400 service and installation vehicles throughout the western United States.

Internationally recognized signs throughout the United States stand today as testaments to YESCO’s long history of excellence. Now under its third generation of the Young family’s leadership, the company continues its tradition of innovative excellence–always with a focus on best-of-class customer service. Thank you YESCO for being a valued member since 1946!

The Employment Law Update Conference is Coming to a town near you!

Agenda topics have been chosen and the conference will cover many significant employment law developments and advice to minimize employment law liability.

Arizona May 5 | Scottsdale Plaza Resort 7200 N. Scottsdale Road | Scottsdale, AZ

Colorado May 13 | Grand Junction, CO May 16 | Fort Collins/Loveland, CO May 20 | Colorado Springs, CO May 26 | Denver, CO

Utah June 8 | Radisson Hotel 215 West South Temple Salt Lake City, UT Please call 800.884.1328 or visit MSEC.org to learn more about registering at a convenient location.

MARCH-APRIL 2016 | 5

Partner for Performance Krista Rahe, Organizational Development

In the Executive Coaching practiced at MSEC, two skill sets are key. Coaches train rigorously on the art of asking questions that open up possibility and understanding for the coaching client. Coaches use such inquiry to help them discover how their client sees the world. Inquiry is also used to help clients discover that they have their own solutions and ideas to issues if they are guided to uncover them. Often when there is a problem or barrier, people are simply given one possible solution by a boss, supervisor, mentor, or colleague as if it is the only solution. MSEC’s coaching philosophy and process assumes that the individual has the ability to generate ideas to solve their own issues, and we work with them, asking open questions, to help them discover those ideas. There are coaching philosophies that use only inquiry in their approach. MSEC coaches who are certified in the Integral Coaching approach believe that their roles also include presenting strong distinctions for their clients. A distinction illuminates the specific way that a client is looking at a situation, a person, or a problem, and helps them look at it in another way. We all have a set structure of interpretation. It is the coach’s role to understand their clients’ interpretation of an issue and give them another way to look at it, thus opening up more possibilities for improvement and growth. In the Coaching: Partnering for Performance class, we teach these skills and give participants practice in using them. We look at questions from the closed/open perspective, and we practice a more advanced inquiry skill of using appropriate tunnel questions. Each tunnel question directs the conversation to the outcome the coach feels will be most beneficial to the client. If one tunnel question does not produce the desired result or learning, the coach explores a different tunnel using another line of questioning. Participants discover that sometimes the most simple question is the most powerful to use in their coaching sessions. They practice using the right type of question at the right time in order to invite deeper response and awareness. The Coaching: Partnering for Performance class defines how coaching can be used in a supervisory role, differentiating it from a traditional supervisory approach. While we are noticing many more leaders using a coaching approach, each person must intentionally determine if that approach is appropriate to their organizational culture, their own style and point of view, and the needs of each employee. The class gives participants an opportunity to explore both approaches and determine the best fit for their situations.

UPCOMING RETURN ON INVESTMENT (ROI) PROGRAMS Show Me the Money: The ROI Methodology in 10 Easy Steps March 24 and 25, 2016 | 8:30am – 4:30pm | MSEC Denver – 1799 Pennsylvania Street ROI Certification Program May 23 – 27, 2016 | 8:30am – 5:00pm | MSEC Denver – 1799 Pennsylvania Street

To register call 800.884.1328 or visit MSEC.org for more information.

6 | MARCH-APRIL 2016

Linking ROI to Workplace Behaviors James McDonough, Membership Development

Recent articles in several journals have focused on the impact of emotions and behavior in the workplace. The first 2016 issue of the Harvard Business Review is chockfull of well researched articles about “the Emotional Organization” and how nurturing positive relationships in the workplace leads to improved performance. Organizational Dynamics devotes an entire issue to “bad behavior” and the many ways it negatively impacts employee job performance and organizational effectiveness. So what’s with all this “touchy feely” talk? Is America going soft? Is all of this just another excuse to sell books and fill seminars on the latest hot trend? Unlikely. Much of the research is from outside the U.S., which suggests these issues are not the result of a thinning of America’s thick skin and won’t threaten our ability to compete globally. The findings appear to speak to the universal human condition—at least among industrialized nations—and not to a specific nationality or culture. Simply put: • People are more productive and engaged when inspired by an organizational commitment to their wellbeing. Strong interpersonal workplace relationships are especially valued. • People cannot be scared into productivity through bad behavior, fear, and mistreatment by individuals (e.g. supervisors, managers, co-workers) or workplaces that tolerate such behaviors. It seems obvious, but it isn’t. Surveys and research across many industries document bad workplace behaviors that negatively impact key business metrics. Too many organizations continue to tolerate bullying, discrimination, stereotyping, poor communications skills, biases, and incivility. Driving the expectation of positive workplace conduct is the nature of work itself in many societies. In early Industrialism, the effectiveness of workers toiling in factories was measured in widgets per hour. Workers were just another type of machine to be oiled and tweaked. Their feelings and well-being were of no concern to the factory owners and managers. That has changed over time, and in today’s economy of ideas and intangible production, the workforce thrives when free to innovate and derives inspiration by working with colleagues whom they value. Research shows that workplaces thrive where there is respectful behavior, good communication, and strong interpersonal relationships; worthy business objectives with significant ROI. HR professionals have an opportunity to take the lead and make the business case to the “C Suite” that paying attention to employee feelings and nurturing workplace relationships makes strong business sense. Leaders should seriously consider making them a part of their core business plans in an age where talent moves freely and is drawn by workplace cultures of respect and opportunity. The articles cited earlier provide excellent advice on how to tackle these problems, for any size or type of organization. Fancy software or expensive investments are largely unnecessary; leadership and commitment to change are essential. For many organizations, accepting that change is needed may be the greatest challenge of all. To learn more, contact me at jmcondough@msec.org or call 800.884.1328.

MARCH-APRIL 2016 | 7

Affirmative Action Plans: What’s the Big Deal? Nick Haynes, Affirmative Action Planning Services

One of the most common questions an employer asks when it realizes it is a federal contractor with affirmative action obligations is, “What happens if I do not create an affirmative action plan?” Many employers claim they do not have time to create a plan and perform all the associated tasks. Often, employers don’t know all the steps necessary to create a plan, so they ignore the obligation or create a plan that does not comply with the regulations. After all, what is the likelihood that anyone will know that the plan was not completed or was poorly executed? The Office of Federal Contract Compliance Programs (OFCCP) projects to conduct more than 4,000 compliance reviews or audits each year. Within the last few years, those involved with affirmative action compliance have noted that compliance reviews are longer and more aggressive than ever before. Many prognosticators believe the final year of the Obama administration will see a surge in agency activity. OFCCP v. Manheim Auctions Inc. illustrates the consequences of not producing an affirmative action plan. Viewed separately, neither Manheim Auctions Government Systems LLS nor its subsidiary met the threshold for affirmative action obligations (generally 50 employees and $50,000 in federal contracts), but would meet the threshold if viewed as a single entity. Unfortunately, the parent and subsidiary were audited and found to be a single entity. Having failed to create an affirmative action plan, Manheim Entities had the choice of complying with the OFCCP or facing debarment from further government contract work. Manheim chose to debar itself. The U.S. Department of Labor is currently suing Convergys Customer Management Group for failing to submit documents and comply with an audit by the OFCCP. While not yet clear, it appears that Convergys failed to create the required affirmative action plans while enjoying the benefits of being a government contractor. The OFCCP indicated it is “prepared to take all actions necessary to correct this, up to and including seeking to ban future government contracts for Convergys.” Those are serious consequences for any organization that relies on federal contracts for business. MSEC can assist member companies in achieving compliance in affirmative action. To learn more call 800.884.1328 or email at AAPS@msec.org.

Did you know that you can stay abreast of MSEC social media activities and be a part of our community at all times? Whether you are on-the-go, enjoying a cup of coffee or just surfing the internet, MSEC information is still accessible and only a click away on your mobile device!

8 | MARCH-APRIL 2016

What’s Happening in Your Region? Arizona Annual Employment Law Update Conference May 5, 2016 | 8:00am – 4:40pm | Scottsdale Plaza Resort | Scottsdale Cover Your Legal Bases – Briefing Session and Baseball Game March 14, 2016 | 8:30am – Game End | ASU SkySong & Salt River Fields | Scottsdale HR Best Practices Programs Event Managing the Rise of Incivility in Today’s Workplace April 14, 2016 | 11:00am – 1:30pm | JW Marriott Desert Ridge | Phoenix Legislature in Session

Colorado 27th Annual Employment Law Update Conference May 13, 2016 – Grand Junction | May 16, 2016 – Fort Collins/Loveland May 20, 2016 – Colorado Springs | May 26, 2016 – Denver Daylight Savings Begins March 13, 2016 | 2:00am Legislature in Session

Utah Weekly Pulse E-Mail Newsletter Kicked Off | February 23, 2016! Supervisory Skills 5-Day Program Starts April 8, 2016 | Salt Lake City HRCI/SPHR Bootcamp April 11 – 15, 2016 | Salt Lake City Daylight Savings Begins March 13, 2016 | 2:00am Legislature in Session

Arizona 800.437.9262 | Colorado 800.884.1328 | Utah 801.364.8479 | MSEC.org

MARCH-APRIL 2016 | 9

Top 5 Workers’ Compensation Expense Reduction Strategies Jennifer Vold, Specialized Legal Services

“An Ounce of Prevention is worth a Pound of Cure.” Benjamin Franklin’s words from more than two centuries ago are just as relevant today. Thanks to current market conditions, employers have a prime opportunity to apply Ben’s principle to their workers’ compensation and risk management programs. The national workers’ compensation rate trend that began in 2013 will continue its gradual decline in 2016. This is evidenced by the 1.9 percent average decrease in loss costs (pure rates) approved by the Colorado Division of Insurance for 2016. While this is certainly good news, it is a trend worth monitoring as medical inflation and wages are expected to continue rising. A relatively soft workers’ compensation market is an ideal time to re-evaluate risk management best practices to ensure your business is capitalizing on the favorable market conditions that exist, while preparing for the market shift that will eventually occur. There are many direct and indirect factors contributing to an employer’s workers’ compensation total-cost-of-risk. This article is intended to provide a high-level overview of the top five industry best practice strategies that produce the most impactful expense reduction outcomes when developed, implemented, and monitored effectively. 1. Risk Control • Maintain and Effectively Communicate Organization’s Safety Program • Establish Safety Committee and Coordinator • Conduct Effective Accident Investigations • Provide Relevant Safety Training and Employee Education • Perform Regular Safety Program Audits • Initiate Proactive Compliance Preparation 2. Claims Management • Vet and Partner with Medical Providers • Establish Injury Handling Practices • Ensure Timely Claims Reporting and Investigations • Develop Efficient and Effective Return to Work Program • Conduct Regular Claim Reviews and Trend Analysis

10 | MARCH-APRIL 2016

3. Risk Analytics • Complete Annual Experience Modification Factor Audits • Perform Deductible/Retention Optimization Study • Explore the ROI and NPV Results of Various Alternative Risk Financing Options • Evaluate Various Program Design Elements • Consider Premium, Claim, Deductible/Retention and Return Allocation Modeling 4. Program Design • Conduct Annual Classification Code Audits and Payroll Reviews • Require an Annual Review of Program Structure Optimization • Achieve & Maintain Cost Containment Certification • Ensure Carrier Discount and Credit Maximization • Participate in Periodic Broker, Carrier, and Third-Party Vendor Partnership Selection Process 5. Human Resources • Maintain Consistent Hiring, Onboarding and Termination Procedures • Develop Job Descriptions and Specific Job Tasks • Perform Ongoing Employee Training and Education • Assemble An Effective Internal and External Risk Management Team • Implement Claim Reporting Best Practices • Actively Control Medical Costs • Engage in Regular and Effective Employee Communication The above should not be considered in isolation, but interconnected and deployed in concert to achieve superior results. For support with your organization’s workers’ compensation, safety, or risk management needs, the MSEC Risk Management team is here to help. In addition, MSEC’s discounted workers’ compensation dividend program is specifically designed to assist our members with reducing costs, improving safety and providing superior claim outcomes. For additional information visit MSEC.org, or contact us at WCDP@MSEC.org.

MARCH-APRIL 2016 | 11

Staff Spotlight Pam Bennison Pam Bennison is a certified Professional in Human Resources (PHR) who has spent more than 20 years in human resources management in the Greater Phoenix area. Before joining MSEC in 2014, she owned PrideStaff Scottsdale, a staffing service and employment agency. As a human resources professional, Bennison has worked with businesses small and large, including Fortune 500 companies. Pam enjoys everything related to HR, but her favorite is part is employee engagement and development. She also enjoys helping HR representatives of our member companies add value to their employers. She is most proud of the fact that during her tenure as AVP of HR for Johnson Financial Group, the company appeared on both the PBJ Best Places to Work and the Fortune 100 Best Companies to Work For. The Society for Human Resource Management Arizona State Council recognizes professional excellence in the Human Resource Management profession. Last year, Pam won the 2015 Judith Krebs PHR Memorial Volunteer of the Year Award! This award recognizes HR professionals serving as role models and setting standards throughout the State of Arizona. Award nominees are the “best” in the profession, serving as role models and setting standards for others. Pam belongs to several associations and is on the Board of Directors for SHRM of Greater Phoenix. She also volunteers with the LPGA-USGA Girls Golf Association, is a Coach with Career Connectors, and belongs to the Delta Sigma Pi Alumni Chapter in Phoenix. When not helping MSEC members or volunteering, Pam enjoys singing in her church choir. She has performed at Carnegie Hall two times! Most weekends you can catch her on the golf course where she is marshalling, keeping score, or caddying for the LPGA-USGA Girls Golf of Phoenix organization.

12 | MARCH-APRIL 2016

By specializing in all human resource matters, we are equipped to assist with: HR management l

HRIS development l

Executive, technical, and administrative recruiting l

HR staffing at all levels from generalist to vice president— long or short-term; full or part time l

Consulting for HR solutions or an HR Audit for best practices

For more information call 800.884.1328 or contact hrmanager@msec.org

MARCH-APRIL 2016 | 13

How to Evaluate Compensation Surveys Sue Wolf, Surveys

“I’m updating my compensation plan and need reliable market survey data. Will I need to purchase a survey to get good data?” No! You don’t need to purchase an expensive survey to get reputable salary data. As a full MSEC member, you have access to the most reliable source of compensation survey data for the Arizona, Colorado, Utah, and Wyoming markets. Some factors an employer should consider when evaluating the quality and reliability of a compensation survey are: 1. Methodology a. Who is reporting the compensation data? MSEC collects compensation data from HR professionals or finance professionals in member organizations and not data reported by individuals. b. How were the data collected? MSEC collects salary data via online questionnaire, Excel spreadsheets, paper copy – whatever is most convenient for the participant. c. What was the validation process? MSEC has a three-step validation process to ensure the publication of accurate data for our members. d. What data are collected and displayed? MSEC collects base pay, formal ranges, incentives, and exemption status. All data collected are displayed in the published report. 2. Job Matches a. Does the survey contain job descriptions or simply job titles? MSEC collects salary data based on job descriptions. Chances are surveys collecting data based solely on job titles will have erroneous job matching – meaning bad data. b.What percent of the job description should be matched for a valid match? MSEC defines that participants can report an employee who spends 70 percent or more of their time in the described function. 3. Participant Base a. How large is the participation and how consistent is it from the previous survey? MSEC collects data from organizations throughout Arizona, Colorado, Utah, and Wyoming. Sixty-five percent of participants in the Benchmark Compensation Surveys contribute data two years in a row. b. What type of industries are included? MSEC collects data across a wide array of industries such as manufacturing, government, non-profit, healthcare, financial, retail/wholesale, ski, etc.

14 | MARCH-APRIL 2016

c. What is the employment size of organizations included? MSEC collects data from employers of all sizes. 4. Customized Reports/Extracts a. Does the survey publisher offer customized reports of the data? MSEC publishes data by industry type, employment size and geographic location. These reports are located on MSEC.org. Specialized reports are also available. Lastly, an organization should use a survey that is relevant to their organization (i.e., geographic location, industry, etc.) and use data lines within that survey that are appropriate to their pay strategy (i.e., revenue, employment size, etc.). These demographics may determine what survey you will use. Contact the MSEC Surveys Department if you have any questions on survey resources available to MSEC members.

HRCI and SHRM Certification Prep Study Programs Denver, CO

April 18 – 22 | HRCI

Fort Collins, CO

April 25 – 29 | HRCI

Salt Lake City, UT April 11 – 15 | HRCI

Scottsdale, CO

April 1 – 29 | SHRM To register please call 800.884.1328 or visit MSEC.org

MARCH-APRIL 2016 | 15

1799 Pennsylvania Street P.O. Box 539 Denver, Colorado 80201-0539 MSEC.org | 800.884.1328

PRSRT STD US POSTAGE PAID DENVER, CO PERMIT NO. 552