MSEC Workplace Matters Magazine
SEPTEMBER-OCTOBER 2016 | ISSUE #5
SEPTEMBER-OCTOBER 2016 | WORKPLACE MATTERS MAGAZINE | ISSUE #5
Contents 3
A Note From the Editor
4
September - Time to Consider Benefit Plan Changes
5
Drug and Alcohol Testing
6
Is it Time for an HR Checkup?
7
Member Profile - The Center for Out-of-Court Divorce
8
Increase Your Recruiting Odds – Use EVP
9
Accountability - Theory is Good, Practice is Better
10
What’s Happening In Your Region?
11
Staff Spotlight - Franchesca Lata
12 Fill the Gaps! 13
The New Salary Basis: How Employers Manage the Unintended Consequences – Second in a Series
14
Summer is Almost Over: Have Your Employees Used Their Vacation Time?
On the Cover You’re an MSEC member! Let us help you be the expert in your organization. Contact us anytime you have an HR question or issue. We’ll steer you in the right direction. Enjoy your VIP status!
Trivia Fun Rank the states with the most national monuments. Answers: Arizona has 18 (more than any other state in the country), Colorado has eight, and Utah has seven.
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WORKPLACE MATTERS®
Lorrie Ray
A Note From the Editor Member Engagement
Stewardship is our focus in this edition of Workplace Matters Magazine. As Evan Abbott’s article explains, this is a type of accountability that we impose upon ourselves. It is vital that we do this if our organization is to be successful. You might not think that taking vacation is part of stewardship, but if you read Sue Wolf’s article, you will learn that it is, and we are not doing it well. Employees are leaving vacation days unused this year. This can interfere with productivity, innovation, and the ability to get things done. Another way to keep productivity and innovation high is to make sure we and our colleagues are fully trained. This, too, can take a back seat when schedules are full. Read James McDonough’s article to learn what training is vital to companies’ financial health. Because the employment world we live in has more and more laws and regulations, part of stewardship is keeping up with them. To help you to do just that, we have two articles that we hope are of help to you. One, by Zandy Ahern, is on drug testing, and the other is my second in a series about the upcoming changes to the salary basis test, effective December 1, 2016. We hope that you find these and other articles of interest in this month’s edition of Workplace Matters Magazine.
Changes are Coming! New overtime exemption rules take effect on December 1, 2016. If you are not paying your employees properly, your organization could be in danger of a lawsuit. Use MSEC’s Wage and Hour Audit Services and make sure your pay practices are in compliance before it’s too late. Our attorneys know the wage and hour laws. Our compliance review includes: • Pay practices for non-exempt employees • Recordkeeping and record-retention requirements • Auditory exempt classifications • Child labor considerations – employment of minors For more information call MSEC Employment Law Services at 800.884.1328.
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September - Time to Consider Benefit Plan Changes Tammeron Trujillo, Human Resource Services
is so much more, including average costs of design specifics like the cost of copays for regular primary care visits, emergency room visits, and drugs. And let’s not forget other types of insurance such as Life, AD&D, LTD, and STD, as well as retirement plan specifics, all of which are covered in our benefits surveys. Surveys are available online and in hard copy. Don’t overlook this important benefit of membership as you move forward with your end-of-year benefits planning.
This time of year has traditionally been when many employers look at their health plan offerings in preparation for end-of-year renewal. To get more data for making decisions, MSEC has three surveys to review: the Health and Welfare Plans survey printed in August each year, the Paid Time Off Policies survey printed in December of even-numbered years, and the Miscellaneous Benefits & Pay Practices survey printed in December of odd-numbered years. These surveys can help members decide what benefits to offer employees in order to maintain a competitive total rewards package. Questions like, “How popular is unlimited PTO, really?” “What are typical practices regarding mileage reimbursement?” and “What is included in a wellness program?” can all be answered by reviewing the benefits surveys. These surveys, which members receive as part of membership, are invaluable for considering health plan design options.
Get $50 Off HRCI Examination! Earning your PHR or SPHR is a career milestone for any HR professional. Sign up today to earn yours! MSEC members receive $50 off the cost of the examination. Call 800.884.1328 or email memservices@msec.org.
With the proliferation of consumer-driven health care, employers must consider the popularity of High Deductible Health Plans (HDHP), Health Savings Accounts (HSA), Health Reimbursement Arrangements (HRA), and Flexible Savings Accounts (FSA) when designing their plans. These vehicles provide employees with flexibility, but are they right for a particular employer? Maybe, maybe not, and the first step is to find out what other employers are doing. The answers are in the Health and Welfare Plan survey. And there 4 | SEPTEMBER-OCTOBER 2016
WORKPLACE MATTERS®
Drug and Alcohol Testing Zandy Ahern, Pre-Employment Screening Services
MSEC has partnered with Alere eScreen to provide drug-and-alcohol testing services to MSEC members, integrated with our current secure online system for Pre-Employment Screening (PES). Alere eScreen offers a wide range of drug-and-alcohol tests that can help MSEC members implement a comprehensive and cost-effective screening program. MSEC currently offers six products: 1. eCup Instant Test – 5 Panel: These results are available within 20 minutes of the collection 2. 5-Panel Drug Screen– No THC: This test will be significant for those members in states with recreational marijuana laws (e.g., Colorado and Washington). 3. 9-Panel Drug Screen 4. 10-Panel Drug Screen 5. Breath Alcohol Testing 6. Department of Transportation / FMSCA When an applicant/employee tests negative, the results are available promptly through the PES online system. If there is a non-negative result, the information will go to a Medical Review Officer (MRO) for further investigation, which can take three to five days. The MRO is an advocate for the applicant/employee to investigate the nature of the non-negative result. The whole process is done electronically. Even the Chain of Custody is electronically processed, with the exception of a DOT request. The member will enter the screen they would like processed and an email will then be sent to the applicant/employee to select a collection site based on their zip code. We can also change the member’s product setting to be able to choose which collection site an applicant/employee goes to in case of suspected intoxication. All results are reported via email notification directly to the member in an easy-to-read format. For additional information or questions please contact the Pre-Employment Screening department at pes@msec.org or call 303.884.1328.
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Is it Time for an HR Checkup?
Kristen Borrego, HR Professional Staffing and Career Transition Services
“Audit” is a word that conjures visions of paperwork and hefty fines. Volunteering for an audit seems counter-intuitive. What if an audit could provide your organization valuable insight on organizational deficiencies? What if the audit could provide you extra time to do the things in your organization that you really want to do by streamlining your current processes? A systematic review of the current state of HR practices can help you know what you don’t know and provide reasonable assurance your people, policies, and programs get the attention needed to thrive. In order for your audit of process to be most effective, it is important that it be comprehensive and focus on the following key areas: HR Responsibilities
Employee Development
Provisional Considerations
Performance Management
Reporting & Recordkeeping
Pay Practices
Job Analysis & Descriptions
Benefit Programs
Recruiting & Application
Termination & Outplacement
Interviewing & Selection
HR Information System
Hiring & Onboarding
Health & Safety
Personnel Files
Workforce & Succession Planning
Employee Handbook
Organizational Culture
Employee Relations As you focus on each topic, be sure to look at current practices and any policies that relate. Ensure that current processes are in compliance with laws and regulations. Also, be mindful of anything that can be done to streamline the current process. Ensure that the work flow is smooth and free of redundancies. Analyze your results and adjust current practices as necessary. If your organization is in need of an HR checkup, MSEC can help! We have do-it-yourself audit tools or can conduct the audit for you. Please contact hrmanager@msec.org for more information.
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WORKPLACE MATTERS®
Member Profile - The Center for Out-of-Court Divorce Reducing Family Conflict, Improving Productivity
When considering ways in which personal and family issues impact the attendance, performance and productivity of employees, discord within the marriage or partnership, separation, and divorce rank high. The Center for Out-of-Court Divorce (COCD) is a Denver-based nonprofit helping to reexamine the way our society unwinds marriages and addresses child-custody issues. When processes are improved—such that they cost less money, take less time, and are less adversarial and inflamed—not only will individuals and families benefit, but so will their employers. COCD offers an interdisciplinary, family-centric approach for parents seeking separation and divorce. COCD offers a place where the family is encouraged to work together for the benefit of the children; a place where the family can receive the therapy, legal education, and financial counseling that they need, individually and in groups; and a place where they can work out disputes amicably and pave the way for long-term health of the family. COCD provides: • Legal education • Mediation • Mental health counseling • Parenting support • Financial education COCD’s model works in partnership with the legal system to address the comprehensive needs of families, and specifically the children of those families, in a onestop, all-inclusive process. Evaluation of this model shows that it is highly effective in preventing and mitigating the adverse effects of this life event on parents and their children.
Separation and divorce are a reality for millions of Americans—one in five children lives through the dissolution of his or her parents’ marriage or partnership (source: childtrends.org). And divorce does not just impact individuals and their children—it also impacts the work productivity of the individuals involved. A new process is needed to address this need, and COCD offers a proven solution. For more information: centerforoutofcourtdivorce.org.
Automated, Reliable, Easy drug & alcohol testing MSEC has partnered with Alere eScreen to provide comprehensive and cost-effective drug and alcohol testing services. • Approved process for DOT and non-DOT urine drug tests • Paperless environment for drug test storage and related medical services • Accelerates specimen collections and streamlines administrative functions For more information on ways to create a healthier, drug-free work environment, email pes@msec.org or call 800.884.1328.
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Increase Your Recruiting Odds – Use EVP Heather Shockey, Outsourced Consulting Services
Recruiting remains challenging, and we all know it can be costly. One metric used in recruiting is “time to fill,” defined as the average amount of time it takes an organization to fill a position once the job requisition has been approved. We have watched this measurement increase over the past several years, and many link this to a couple of key factors, including the economy. The U.S. economy has rebounded from the 2008 crash and new and different avenues have opened for organizations to hire. This has caused many employees who would otherwise stay to explore opportunities elsewhere, resulting in a spike in turnover. The workforce is a key area for recruiting. The workforce can be the group of people within your organization or a group of people available for work. The internal workforce can be a good place to start, especially if there is a defined succession plan in place or a talent pool available. In order to be successful in recruiting and to overcome the factors listed above, organizations must become well versed in explaining and demonstrating their Employee Value Proposition (EVP). The EVP can be the most productive tool in attracting, recruiting, and retaining employees. The EVP can answer questions like, “Why would qualified and talented people want to work at this organization?” or “What makes this organization an employer of choice?” or “What makes this organization different from others?” Recognizing the various recruiting challenges and combating them with an EVP is one way to help attract and retain qualified and talented people. Figure out what your organization does to make it unique and highlight those areas when recruiting. If you’d like us to recruit for you, we are happy to help. For more information call 800.884.1328.
Is Your
Abracadabra Working?
Hiring the right candidate can be like pulling a rabbit out of a hat. Let MSEC take the mystery out of the hiring process. We provide: Background Checks • Drug Testing • Behavioral and Skill Testing It’s not magic, it’s MSEC! Call 800.884.1328 or email pes@msec.org
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WORKPLACE MATTERS®
Accountability: Theory is Good, Practice is Better Evan Abbott, Organizational Development and Learning
Accountability. It’s a word heard frequently in today’s workplace, but experienced less and less–that is, if research is to be believed. According to a recent survey by AMA Enterprise of managers and leaders from over 500 U.S. companies, 43 percent of organizations believe that upwards of 50 percent of their employees avoid accountability in their roles. But what exactly is accountability? While authors define it in a variety of ways, Linda Galindo, author of The 85% Solution (and the core focus of the MSEC class, The Accountability Experience) defines it as: 1) being responsible for all of your choices before you know the outcome of your actions; 2) maintaining a mindset of ownership and empowering yourself to succeed in the face of risk; and 3) demonstrating a willingness to answer for your outcomes after the fact without fault, blame, or guilt. According to Galindo, these facets are inseparable. You can’t have one without the other two and still call yourself accountable. So how do we achieve more accountability in the workplace? It depends on how you look at it. Keeping Galindo’s definition in mind, we can approach accountability from a couple of different angles. One way is to look at accountability from “the outside in” (the professionals refer to this as Principal-Agent accountability). A principal (manager, enforcement agency, etc.) holds an agent (an employee, an organization, etc.) to a certain set of standards and expectations with the potential of reward or punishment. Used effectively, this looks like many of the performance management systems employers use to facilitate the accomplishment of organizational objectives. Research from the Association of Talent Development (ATD, formerly ASTD) reports that the probability of completing a goal goes from 40 percent (when we just decide to complete a task) to 95 percent when we have specific accountability appointments with a principal. A good performance management system increases interaction among managers and employers helping to effectively communicate responsibilities, increase ownership of tasks, and keep conversations focused on outcomes rather than blame. Another way to look at accountability is through the lens of Stewardship Theory. This approach to accountability is more from “the inside out.” Stewardship Theory states that individuals are driven by intrinsic satisfaction, inherently challenging work, and the desire to exercise responsibility and authority. Stewardship theory particularly emphasizes the importance of an involvement-oriented relationship, one built on trust between the principal and the steward. Organizations looking to develop more organizational stewards spend more time on involvement and development strategies (like group problem solving and professional development) than they do on enforcement strategies (like policies and discipline systems). This approach to accountability works to create more individual owners relying more on their own personal commitment rather than the external compliance of the manager or HR. As your own organization continues the discussion of accountability, as many organizations are, remember to think past the concept of “holding people accountable.” While an important managerial responsibility, remember to take the time to focus on what makes people “feel accountable” and own the work they do. This extra step will likely have a significant impact on creating a more accountable culture overall in your organization. For training on this topic, check out our classes at MSEC.org.
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What’s Happening in Your Region? Arizona MSEC’s Newest Conference! Cultivating Organizational Excellence - A Best Practices Summit for Employers October 13, 8:00-4:00 | Willow Conference Center, Phoenix HRCI and SHRM Study Programs Multiple dates, times, and locations available
Colorado Rocky Mountain Elk Fest – October 1-2 Breckenridge Craft Spirits Fest – October 21-23 HRCI and SHRM Study Programs Multiple dates, times, and locations available
Utah Paranormal Fest – October 1 Moab Folk Fest – October 4-6 HRCI and SHRM Study Programs Multiple dates, times, and locations available
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WORKPLACE MATTERS®
Staff Spotlight Franchesca Lata Franchesca Lata is a California native, but fell in love with Colorado when she moved to Boulder to attend law school at the University of Colorado. Franchesca joined MSEC’s Northern Regional Office in May 2015. Prior to joining MSEC, she practiced estate planning and plaintiff employment law in Boulder County. Franchesca represents plaintiffs in employment-law actions including wrongful termination, discrimination, harassment, Fair Labor Standards Act, and contract disputes. At MSEC, Franchesca advises and represents members in various issues, including discrimination, employment agreements, wage-and-hour compliance, and other matters. In addition, Franchesca is the Legislative Affairs Director for the Northern Colorado Human Resource Association. In this role, Franchesca monitors, evaluates, and provides reports to members regarding pending legislative, regulatory, and legal action at the federal, state, and local level that may impact human resources management. Franchesca has presented at legislative and legal updates and will be presenting on Marijuana and Legislative Trends this fall for the Wyoming SHRM Conference. When it comes to her job, Franchesca enjoys building significant relationships with her members and educating them on the law and changes on the horizon. Franchesca is admitted to practice in Colorado and Wyoming. Outside of work, Franchesca enjoys camping, hiking fourteeners, running, cycling, and spending time with her puppy.
Compensation Solutions Designed for You! MSEC continues to provide a full range of services to help members implement and manage a flexible yet comprehensive compensation system.
Key Objective To provide you with a quality, competitive and cost-effective compensation program that supports the culture, vision and environment of your organization.
Benefits of a Good Plan A well-designed program helps ensure that you attract and retain quality employees.
How it Works MSEC consultants utilize industry best practices, standard methodology and wide-ranging resources that include salary and benefit surveys.
Meeting Your Organization’s Needs Together, we will assess your organizational culture and business philosophy to determine an appropriate plan.
Bottom Line We provide results that deliver tailored compensation solutions. For more information, email compensation@msec.org or call 800.884.1328.
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Fill the Gaps!
James McDonough, Member Engagement
“Bridging the Skills Gap,” a 2015 Association of Training and Development study, surveyed over 486 training managers to identify these major skills gaps in the American workforce: • Process Improvement and Project Management
• Leadership and Executive Level
• Managerial and Supervisory
• Critical Thinking and Problem-Solving
• Communication and Interpersonal Does this list resonate with you? If so, leverage your MSEC membership! This chart gives a sample of classes and library materials to help you tackle this gap affordably.
MSEC Classes to Consider…
To Learn…
MSEC Library Materials…
Process Improvement and Project Management Skills
Business Essentials; Project Management (levels I, II, or “Lite”); Business Analysis Real World Case Studies
Harvard Business Review Guides: Project Management; Finance Basics for Managers; Building Your Business Case.
Managerial and Supervisory Skills
The Complete Supervisor Program; Managing Excellence; Management Back to Basics
FYI: For Your Improvement; The First 90 Days; Help Them Grow or Watch Them Go
Communication Feedback: Know Thyself; Developing Interpersonal Communication Skills; Workplace Respect
People Styles at Work; The Trusted Advisor; Thanks For The Feedback; Flex – The New Playbook for Managing Across Differences
Leading Teams; Leadership - Why Would Anyone Want to Follow You?
42 Rules for Your New Leadership Role; What Got You Here Won’t Get You There; Leaders Eat Last; Start With Why
Negotiations for Win/Win; Problem Solving Skills; Collaboration Skills – A Radical Approach to Problem Solving and Conflict Resolution
Professional journals and magazines like the Harvard Business Review explore current employment law topics using narrative formats; helps cultivate critical thinking skills.
Communication and Interpersonal skills
Leadership and Executive Level Skills
Critical Thinking and Problem-Solving Skills
Contact me to discuss your skills gap needs and to access the excellent collection in the MSEC Library! In addition to classes, academies, and library materials, MSEC offers individualized coaching, consulting, and other interventions to tackle skills challenges. MSEC is your one-stop shop to fill essential skills gaps in your workforce! ATD Study https://www.td.org/Publications/Blogs/ATD-Blog/2015/10/ATD-Public-Policy-Council-Udates-Skills-Gap-Whitepaper
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WORKPLACE MATTERS®
The New Salary Basis: How Employers Manage the Unintended Consequences – Second in a Series Lorrie Ray, Member Engagement
This is the second article in a series about the December 1, 2016, increase in the salary-basis test, increasing the minimum salary from $455 a week to $931. As a result of this change, employers may choose to move exempt employees who make significantly less than $931 a week to a nonexempt status. As you have already imagined, this is likely to create a number of complications. One of those complications is dealing with employees who were exempt and are not pleased to now to be treated as hourly employees. What is an employer to do? You must follow the law, and yet to do so creates unhappiness. There are some steps you can take to help. Knowing ahead of time how you will handle this change will allow you more time to communicate effectively with your employees in this circumstance. If employees have time to realize a change is coming and understand the reason for the change, it allows them to adjust to it. One of the main complaints may be that the employee is now required to keep time records, when previously this wasn’t a matter of concern. This can feel like a demotion in and of itself. Talk to your employees who are in this position and determine the easiest way for them to keep track of their hours that still meets your needs. Remember that in most cases, all that is legally required is to track the number of hours per day and the total hours per workweek. Some employers use exception reporting for those employees who have a set schedule they tend to follow week after week. Employees sign off on time sheets with the pre-set hours, unless they work different hours, and then there is a place on the sheet to note those differences. There are employers who offer different benefits to exempt employees. Of course you must follow your plan documents, but perhaps you change your plan to indicate which positions have which benefits, regardless of the exempt or non-exempt status of the employee. You may have other areas of concern. We are talking to many employers about this, and we are happy to help. Members can simply call to talk about their circumstances and receive answers and possible strategies to put them in the best position possible to manage these significant regulatory changes. You can contact us at 800.884.1328.
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Summer is Almost Over: Have Your Employees Used their Vacation Time? Sue Wolf, Surveys
Labor Day usually marks the end of the summer vacation season for employees. What percentage of employees in your organization used their vacation time? According to a U.S. Travel Association survey, on average workers leave a minimum of three unused vacation days per year. There are many reasons employees don’t take their allotted vacation. Following are the top five reasons according to this Project: Time Off survey. 1. Fear of returning to a mountain of work (40 percent) 2. The belief that nobody else can do the job (35 percent) 3. Inability to afford taking time off (33 percent) 4. Fear of being seen as replaceable (22 percent) 5. To show greater dedication to the company and the job (28 percent) Research shows that taking a vacation will benefit both the employee and employer. One recent study by Forbes revealed the following workplace benefits employees experience when taking a vacation: • higher productivity • stronger workplace morale • greater employee retention • improved health benefits What vacation benefits are MSEC employers providing to their employees? Following is information from MSEC’s 2014 Paid Time Off Survey for Arizona, Colorado, and Wyoming employers. The data for Utah employers is from the 2015 EAA National Policies & Benefits Survey. Vacation Time – Number of Days (Years of Service Required)
Arizona Colorado
Utah*
Wyoming
After one year
11
11
10
11
After five years
15
16
15
15
After 10 years
19
19
18
18
After 20 years
24
24
21
24
* Data line reported is for the Non-Exempt Clerical and Technical.
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WORKPLACE MATTERS®
As the chart above shows, most employers in Arizona, Colorado, Utah, and Wyoming provide similar days off based on years of service. Take advantage of the benefits an organization receives when their employees take vacation time. And, don’t worry, there is still time in 2016 to encourage your employees to use their vacation time, even though the summer vacation season is almost over! MSEC will be collecting information for the 2016 edition of the Paid Time Off Survey in early September. If you would like to participate in this survey and need a password to complete the questionnaire, please contact the Surveys Department at surveys@msec.org.
Stop Spinning Your Wheels HR professionals are busy. MSEC’s HR Professional Staffing Services can get you the help you need. What help do you need? Tell us exactly what needs to get done. We’ll work with you to determine how best to approach the job, and what we can do to get it done for you.
Are you on a budget? We work with you to stay within budget, working on small or large projects.
Do you want flexibility? We can work offsite or come to you, as often or as little as needed. We can work in long or short periods, in whatever intervals make sense for your business. For more information on how we can support your HR needs, contact the Outsourced Consulting Services Department at 800.884.1328 or email hrmanager@msec.org.
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