MSEC Workplace Matters Magazine
JULY-AUGUST 2016 | ISSUE #4
JULY-AUGUST 2016 | WORKPLACE MATTERS MAGAZINE | ISSUE #4
Contents 3
A Note From the Editor
4
Conflict in the Workplace
5
Assessment Testing for Cultural Fit
6
Member Profile - Corona Insights
7
What’s Happening in Your Region?
8
What’s in a Name?
9
2016 Federal Poster Update Do You Know Your Title IX Requirements?
10
Is Your Organization Psychologically Safe?
11
The New Salary Basis: How Employers Manage the Unintended Consequences – First in a series
12
Staff Spotlight - Debra Turner
13
HR Certifications: Where Are We Now?
14
Are Your Employees Staying, or Leaving the Organization? Trends in Employee Turnover
On the Cover You got this! Stay focused on what’s important - your employees and know that MSEC has got your back with current topics and expert advice at your fingertips.
Trivia Fun Rank the cities with the most annual hours of sunshine, from lowest to highest: Denver, Phoenix, Salt Lake City.
Answers: Phoenix 85% sunny, Denver 69% sunny, Salt Lake City 66% sunny (Conversely: Buffalo, NY enjoys 85% cloudy days) 2 | JULY-AUGUST 2016
LorrieRay
A Note From the Editor Membership Development
Every day I open the newspaper and read a completely different story on the state of affairs in the employer community. Some days the business community is so strong and unemployment is so low, I’m concerned about ever finding anyone to hire. The next day I learn about an economic crisis, and wonder if I ever need to hire anyone again. Amidst of all of this talk, it is hard to know where to focus. I have a suggestion: focus on the employees who are at the heart of your organization. The ones you enjoy working with each day, who keep customers coming back, and who show true results day in, day out, year in and year out. In these hectic times, it’s so easy to lose sight of these employees. When you focus on them, have a clear vision of what that means. Pay attention to inevitable workplace conflict, so employees have support and can learn to manage conflict— skills they will use for a lifetime. Cultivate a positive culture, so your best employees want to come to work every day. Foster an environment where employees are free to contribute their best ideas. Remember that help is available from MSEC, and we help members every day with this task. Comply with employment laws. They were passed to create an environment of fairness, freedom from discrimination, and fair pay. These laws are complicated, never-ending, and always changing, but you aren’t alone. Your membership provides you with information and practical tips on how to implement the right policies. Read through our Workplace Matters Magazine this month and get the help you need to focus on all of these important items. If you need more, give us a call. We can help!
Do you have talented and high potential individuals in your organization who need training? MSEC can help! MSEC helps develop and enhance your employees’ career development: • • • •
Personal Productivity Emotional Intelligence at Work Business Essentials Developing Presentation Skills
• Great Leader Series • Communicating Feedback: Know Thyself • Writing Proposals that Work
Help individuals achieve high performance, career aspirations, and relevant knowledge that will prepare them for their future! Visit MSEC.org or call 800.884.1328 for more information. JULY-AUGUST 2016 | 3
Conflict in the Workplace
Evan Abbott, Organizational Development and Learning
Temperatures are rising. Are tempers flaring in your workplace? Conflict is natural in life and at work, and how we handle it can make all the difference. It can help energize us and take us to new heights, or it can torpedo productivity. Most often our concern is with the latter. I have studied incivility in the workplace and know that it can be a problem when there is unexpressed conflict. There are a number of ways that you can meet the challenge of conflict at work without it turning into snarky behavior or escalated dynamics. You may want to start with following basic steps to nurture civility in your workplace: • Hire for good behavior by including questions about civil behaviors. Listen attentively to responses and look for specific examples. • Discuss and post your code of conduct. Make it a priority in onboarding new employees. • Make sure leadership sets the tone and consistently models desired civil behaviors. • Instead of assuming employees understand what “appropriate and professional behavior” is, discuss common workplace issues and provide examples of acceptable behaviors. • Define consequences of uncivil behavior and hold offenders equally accountable. It’s also important to provide employees with support and information so they know how to handle conflict in the workplace. MSEC has classes your employees and supervisors may find helpful: • Communicating in Difficult Situations for Non-Management Personnel • Conflict Self-Management • Communicating Effectively in Difficult Situations for Managers and Supervisors • Harassment Prevention for Managers and Supervisors • Developing Interpersonal Communication Skills Finally, if you find conflict in your workplace has escalated to the point that you no longer know how to manage it, give us a call. We might have some ideas for de-escalating the conflict, or we might recommend that you consider coaching, mediation, or an intervention for a team in pain. The more you know, the more effective you can become at managing conflict in the workplace. While addressing it is never easy (or fun), we can take the snark out of it and manage it more productively.
4 | JULY-AUGUST 2016
Assessment Testing for Cultural Fit
Brittany Johnson, Custom Opinion Surveys and Testing and Assessments
ues among existing employees. Work-value similarity leads to higher levels of commitment to the organization, job satisfaction, and performance. Please contact MSEC so that we can provide you with more information about the DeGarmo MVP at testing@ msec.org.
MSEC has a tool available to our members that will help assess candidates’ cultural fit within the organization. The DeGarmo Matched Values Profile (MVP) allows the organization to create a custom benchmark to compare ratings of importance for 11 core work values: • Autonomy
• Authority
• Excitement
• Achievement
• Enjoyment
• Status
• Service
• Structure
• Cooperation
• Inclusion
• Materialism Once the benchmark is created, members can review and make adjustments, if necessary. The established benchmark is then compared to a candidate’s results to determine if he or she would be a good cultural match (Strong Match, Moderate Match, or Weak Match). The report will show the candidate’s overall alignment with the organizational benchmark as well as individual work values. The MVP consists of 55 questions that ask the candidate to rate work values on a scale of importance. This assessment is administered exclusively online and can be taken by candidates anywhere. It takes about 15 minutes to complete. Companies can use this assessment for a variety of different positions (entry level to executive management) within the organization, and it can also be used to enhance organizational alignment with work val-
Constantly trying to fit a square peg into a round hole? Hiring for cultural fit is always preferred and can help create a cohesive work environment, and it isn’t always an easy thing to do. MSEC’s Cultural Fit Assessment provides a solution to help you hire candidates for cultural fit. Call 800.884.1328 o r email testing@msec.org for more information.
JULY-AUGUST 2016 | 5
Member Profile - Corona Insights Corona Insights serves as a resource for clients needing to make decisions on a wide variety of topics. They help their clients uncover the right answers to the right questions and then guide them to use those answers to take action. The firm’s mission is to provide accurate and unbiased information and counsel to decision makers. Specific services include market research, evaluation, and strategic consulting. While Corona works across all sectors and many industries, they most often find themselves working with nonprofits, government offices, and associations working to improve their communities and organizations. Founded in 1999, Corona’s founder gave the company its name because the word Corona means “a halo of light.” It is the knowledge that surrounds and illuminates an issue; exactly what Corona Insights provides. Corona has since completed more than 1,000 engagements with their clients, representing nearly every state in the nation. Although the volume of projects speaks to the demand for their work, the fact that two-thirds of their work is for repeat and referred customers says even more. Corona has also accumulated several awards, from accolades for individual research studies and strategic plans to firm awards such as the Denver Metro Chamber Small Business of the Year in 2009. While clients go to Corona for “bright thinking, brilliant guidance,” it is the customer service that keeps them coming back. In 2015, a survey of Corona’s customers showed that 97 percent would “definitely” recommend Corona Insights, with customer service being the top reason for recommending. All along, Corona’s ownership has remained constant, as has much of its staff in recent years. In fact, Corona has experienced zero turnover in the past two years. Corona has worked hard to both recruit and retain its staff, including a comprehensive hiring process, competitive benefits, and policies geared at work-life balance. Learn more at CoronaInsights.com.
EMPLOYMENT LAW
In
Sp an POSTERS! ish too
Offers reduced poster prices for federal AND state all-in one posters Provides posters for each of the 50 states plus the District of Columbia, Canada, and Puerto Rico Ensures that posters meet compliance Delivers electronic posters (E-Posters) with an electronic update service Offers members a low cost update service for federal and state posters Please visit our Poster page at MSEC.org for more information or email posters@msec.org. 6 | JULY-AUGUST 2016
!
What’s Happening in Your Region? Arizona HB2114 New Law for Registration of Independent Contractors Effective August 6, 2016 HR Certification Study and Recertification Programs See the 2016 Training Catalog for more details The World of Giant Insects at Arizona Science Center
Colorado Pregnancy Accommodation Law HB1438 Effective August 10, 2016 Governor Hickenlooper signed HB1114 removing requirement for Immigration Affirmation Effective August 10, 2016 Greely Stampeed - June 23- July 4, 2016 Taste of Colorado - September 2-5, 2016 Training Test Drive - August 12, 2016
Utah Utah Non-compete Bill and Breastfeeding and Pregnancy Accommodation Law HB1438 Effective as of May 10, 2016 Pioneer Day Events across Utah - July 24, 2016 MSEC Roundtable Series begins in October Check your weekly Pulse email for details
Arizona 800.437.9262 | Colorado 800.884.1328 | Utah 801.364.8479 | MSEC.org JULY-AUGUST 2016 | 7
What’s in a Name? Paula Henry, Member Engagement
To emphasize the message that MSEC members are our number-one priority, the department formerly known as Membership Development is now … Member Engagement! Member Engagement serves employers even before they join by informing organizations on HR and employment law, including trends, data, and best practices. Member Engagement passionately supports community stewardship with volunteer activities and service on nonprofit boards. Member Engagement orients and guides new members to MSEC membership to ensure they quickly profit from their investment and get the help they need when needed. Member Engagement educates all members on the depth and quality of additional MSEC services, available exclusively to members at below-market rates. Member Engagement continually develops resources, expertise, and service lines to meet members’ evolving needs. Member Engagement captures the spectrum of invaluable MSEC information resources: • Publications like Workplace Matters Magazine, Hot Topics, and the Bulletin • News Alerts, Social media, Blogs, and Videos • FYIs, Blue Book, training, and conference materials • Library, Research, and Speakers Bureau Member Engagement challenges us to commit to our members: to engage with you to provide the services and consultation you need to be effective, successful employers.
Automated | Reliable | Easy 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, contact pes@msec.org or 800.884.1328 for more information.
8 | JULY-AUGUST 2016
2016 Federal Poster Update
Do You Know Your Title IX Requirements?
MSEC offers a state and federal posters service to our members, which includes the option of joining our annual Update Service subscription. With an Update Service subscription for each of your locations, MSEC monitors mandatory changes and automatically sends each location the latest required poster whenever a labor-law posting change takes place. By utilizing the Update Service, employers never again have to worry about whether their federal and state posters are up-to-date.
Title IX is a developing field, requiring all public and private elementary and secondary schools, school districts, colleges, and universities receiving any federal financial assistance to comply. Numerous publications exist that describe Title IX requirements in detail. Some of the basics, however, require educational institutions to:
One such mandatory update is scheduled to take place later this summer when new Occupational Safety and Health Administration (OSHA) Injury and Illness Reporting regulations go into effect. These rules were issued on May 12, 2016, and they update how employers must inform employees about reporting work-related injuries and illnesses. The rules also clarify employee rights to review their injury and illness histories.
• Assess current policies and procedures to determine Title IX compliance, and adequately disseminate those policies.
Chad Orvis, Specialized Legal Services
While the regulations are not entirely clear on how employers are to provide notification, we believe employers will meet this notice requirement by ensuring the OSHA Job Safety and Health – It’s the Law posting is updated and posted in all locations. As a result, an updated OSHA Job Safety and Health-It’s the Law poster will be sent out to all of our members who have an Update Service subscription. To begin the Poster Update Service subscription, or to order an updated OSHA Job Safety and Health – It’s the Law poster, contact MSEC’s posters team at 800.884.1328.
Jody Luna, Investigations Services
• Be proactive in ensuring that your campus is free of sex discrimination. • Have a Title IX Coordinator who manages complaints.
Also, as part of the institution’s Title IX policies, the institution needs to have procedures in place to “promptly and equitably resolve complaints alleging discrimination on the basis of sex.” This includes the need to promptly investigate complaints that fall under Title IX. There are limits on how long an institution may take to conduct an investigation under their grievance procedures. Schools should designate and publish “reasonably prompt time frames” for each stage of a case. The Office of Civil Rights expects a typical investigation to take about 60 calendar days, although they recognize that more complex cases may take longer (U.S. Dept. of Justice Title IX Legal Manual). It is also important to have an investigator that is properly trained and to adequately document your investigation process and findings. MSEC has investigators trained in Title IX investigations if you need assistance to make sure you are compliant with your Title IX requirements. If you have questions or need assistance, call our investigations line at 800.884.1328. JULY-AUGUST 2016 | 9
Is Your Organization Psychologically Safe? James McDonough, Member Engagement
The February 28, 2016 edition of The New York Times Magazine, called “The Work Issue,” is devoted to the topic of the American workplace. The real stand-out for employers is, “Group Study: New research reveals surprising truths about why some teams thrive and others falter.” It describes Google’s Project Aristotle, a years-long research initiative reviewing previous sociological and organizational psychological research. Their conclusion: Successful teams result when participants feel “psychologically safe.” Psychological Safety (PS), defined as, “a shared belief held by members of a team that the team is safe for interpersonal risk taking,”* arose in the 1960s. It may be more relevant than ever in 2016, where workplaces require teamwork to tackle complex, multi-disciplinary challenges. Successful collaboration among diverse, functional groups is essential for organizations to succeed in an intensely competitive environment. Google heavily relies on teams, prompting their investment to research the topic. A review of their lessons and other research papers provides ideas for practical application by any size employer. Employers who wish to reap the benefits of PS must start at the top. Research by Harvard Business School identifies the benefits when leaders model PS: • Learning is enhanced at both the personal and organizational levels. • Risk-taking is more commonplace, leading to innovation and better problem-solving. • Culture becomes more engaging, which attracts and retains higher-skilled talent. PS is encouraged by an organization’s intentional effort to help build “high-quality” relationships among employees. This “bottom up” approach provides employees a psychological freedom that encourages engagement and even loyalty. Are your work teams effective? Google identified these characteristics of a psychologically safe team: • Team members contribute at about the same level. If a group is dominated by a few voices, PS does not exist. • Participants are comfortable with going “off topic,” sharing personal challenges and activities. This “wasted time” contributes to team members connecting and understanding each other’s subtle emotional cues. • Team members admit failure, fears, or weaknesses, confident they will receive support. Embracing PS offers employers new opportunities for effectively managing the fastest-growing segment of their workforce: Millennials. Known as communicators who desire frequent feedback, guidance, and discussion, Millennials are criticized for not acting more independently. Millennials’ penchant for frequent dialog (practiced in a workplace where they feel psychologically safe) enhances organizational learning, teamwork, and problem solving! Learn from decades of research and the deep pockets at Google: A psychologically safe organization can achieve greater levels of success. *“Psychological Safety and Learning Behavior in Work Teams,” Amy Edmondson, Harvard University 10 | JULY-AUGUST 2016
The New Salary Basis: How Employers Manage the Unintended Consequences – First in a series S. Lorrie Ray, Member Engagement
By now you know that on December 1, 2016, there will be a regulated increase in the salary-basis test, moving the minimum amount from $455 a week to $931–a little more than double the current amount. Not only do you know it, but your employees probably do, too. This change has been well publicized, not only by the U.S. Department of Labor, which is proud to be increasing wages for a large number of employees—or so it believes—but also by law firms who advertise on television and social media. Employees may have unrealistic expectations of either receiving overtime pay on their current rate or an increase in their salary. If these things don’t occur by December 1, an employer may face angry employees who are willing to obtain legal assistance. It’s important for employers to understand exactly where they stand well before December, so that they can respond clearly and calmly and be confident the practices they follow are legal. If you have good practices and are confident that you have employees properly classified as exempt or nonexempt, learning more about the law may be all you need to do. If so, you would be in the minority. The wage and hour laws are the most violated laws we have, and for years neither employers nor employees really understood them. The regulations were written in the 1940s and 1950s and often don’t make sense in today’s world. They are also hundreds of pages long, and some of the regulations seem to conflict with one another. Employers often resort to “copying off their neighbor” and following practices of their competitors, or pay their employees how they were paid eons ago. These practices may not be correct. These laws have been under the radar, but that has been changing as a result of high-profile wage-and-hour lawsuits. As it turns out, this may be a perfect time to fix any problems you may have. Employees are aware the law is changing and will be expecting changes in their pay structure. Auditing all of your positions to see if employees are properly exempt will allow you to make sure you cannot be caught off guard by changing employee expectations. Remember that MSEC can help you. We have the resources to enable you to do this yourself, or we can conduct a complete or partial audit of your pay practices to help make sure you are compliant with the complicated requirements of overlapping state and federal wage and hour laws.
Be Compliant. Avoid Violations. Our attorneys know the wage and hour laws and our compliance review includes: • Pay practices for non-exempt employees • Recordkeeping and record retention requirements • Exemptions from Overtime • Child labor considerations – employment of minors Call the MSEC Employment Law Services Department at 800.884.1328 for more information.
JULY-AUGUST 2016 | 11
Staff Spotlight - Debra Turner Born and raised in Salt Lake City, Debra Turner is a Utah girl through and through! An avid University of Utah fan, Debra has had football season tickets since she was in junior high. If you want to talk team stats, give her a call. Debra knew at 13 years old that she wanted to be an attorney, and she graduated with her law degree and MBA from Willamette University in Salem, Oregon. She also has a passion for human resources, and she got her first taste of HR and employment law when she was a bookkeeper and HR assistant at a disability services company. Debra joined our Utah office in 2014. She has over 16 years of experience in all areas of HR and 11 years as an attorney, where she has focused her practice on employment, labor, and immigration law. Prior to joining MSEC, Debra practiced employment and labor law for nine years in Utah and Oregon with a small boutique law firm and served as an HR manager and general counsel in the technology industry for eight years. Debra is no stranger to employers associations, she worked for Cascade Employers Association in Salem, Oregon during law school. Debra’s specialized areas include regulatory compliance, management consultation, claim resolution, workforce training, labor services, and immigration services. In addition to her work at MSEC, Debra sits on the Employers Council Advisory Board (ECAB), where she works regularly with different Utah employers and the Utah Department of Workforce Services. Debra is licensed to practice in Utah and is currently working on getting licensed in Oregon. When it comes to her job, Debra loves building relationships with members and becoming their go-to person whenever they have a question or need. She feels it is rewarding to know someone values your expertise enough to always think of you first when an issue comes up. When not counseling our members, Debra loves to spend time and travel with her family. She is married to her high school sweetheart and has two daughters, 11 and 7.
Our investigators conduct over 100 investigations each year including: Harassment and discrimination allegations • Workplace violence Employee/supervisor misconduct • Suspected illegal activity For more information call 800.884.1328 or email investigations@msec.org. 12 | JULY-AUGUST 2016
HR Certifications: Where Are We Now? Laura Woods, Human Resource Services
May 2014: The Society for Human Resource Management (SHRM) surprises the HR world by announcing they will end their long-time partnership with the Human Resources Certification Institute (HRCI) in order to launch their own certifications. The SHRM-CP (Certified Professional) and SHRM-SCP (Senior Certified Professional) would now compete with HRCI’s Professional in Human Resources (PHR), Senior Professional in Human Resources (SPHR), and other certifications. Many of us were left a little confused: unsure what would happen to our current certifications and uncertain what was going to be expected of us going forward. Two years later, the upheaval seems to have settled a bit, leaving us with some questions and more choices. One question to ask is, “Why get certified”? There are many reasons. Being a certified HR professional demonstrates a mastery of the profession and a commitment to keeping up with new HR trends and developments through recertification. For organizations, having certified HR professionals shows a commitment to developing employees and a commitment to growing the business. For example, a 2015 study released by the Boston Consulting Group showed overall excellence in talent management capabilities correlates with increases in company revenue and profits. Another question to ask is, “What certification should I get”? This ties directly in with the choices. There is a plethora certifications available. HRCI offers the following: aPHR for new graduates with little real-world experience, the PHR and SPHR for more seasoned professionals, PHRca for practitioners with employees in California, and the GPHR for Global HR. You can find information about eligibility, costs, subject matter, etc. at www.hrci.org and in the HRCI 2016 Certification Policies and Procedures Handbook. MSEC members currently receive a $50 discount on the testing fee with HRCI. When an MSEC member registers for an HRCI test, they will see a list of organizations to select from. Choose MSEC from the list and the system will automatically discount the exam fee. SHRM also has choices: the SHRM-CP for people early in their careers, and the SHRM-SCP for more advanced professionals. You can find more information at www.shrmcertification.org, and in the 2016 SHRM Certification Handbook. We recommend you take all of this into account when choosing which test to take. There will be a free informational webinar detailing certifications and MSEC study options on July 20 at 10 a.m. Keep your eye out for an email for registration information. There are study programs for HRCI running this fall in Arizona, Colorado, and Utah, and SHRM study programs in Arizona and Colorado. Our programs include all study materials, MSEC study guides and quizzes, and instructors who have taken the exams and are subject-matter experts. The schedules and costs can be found in the MSEC catalog at MSEC.org, and you can contact MSEC at 800.884.1328 with questions.
JULY-AUGUST 2016 | 13
Are Your Employees Staying, or Leaving the Organization? Trends in Employee Turnover Sue Wolf, Surveys
Turnover rates have remained fairly steady over the past few years. However, with the stronger economy, are more employees leaving their current employers than in years past? MSEC recently published its 2016 Personnel Pulse Survey, which tracks HR metrics such as turnover, tenure, job absence rates, compensation expense, and cost of benefits. It is important for employers to look at benchmark turnover trends within their industry and geographic area. In our 2016 survey, Arizona and Utah employers reported higher 2015 versus 2014 All Employees turnover rates than Colorado and Wyoming survey respondents. The trend of higher turnover rates in 2015 versus 2014 is the same for the U.S. and the West region of the country. Following is a chart showing the turnover rate for All Employees for the last five years.
The turnover rates in the above chart for Arizona, Colorado, Utah, and Wyoming are from MSEC’s Personnel Pulse Surveys, unless noted otherwise. The West region and U.S. figures are from the Bureau of Labor Statistics’ Job Openings and Labor Turnover Report, published March 17, 2016. * Utah data from 2011-2014 are from the Employers Council’s Quarterly Turnover Surveys. ** The West region includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. Does the average age of the workforce in the organization affect turnover rates? In our 2016 Personnel Pulse Survey, we found that employers with an average workforce age between 25 and 35 years had a higher turnover rate than employers whose workforces had a different average age. The chart on the following page shows that organizations with an average workforce age of 25 to 35 years reported a 32.4 percent turnover rate in 2015. This turnover rate is significantly higher versus other average workforce ages as shown in the graph below. Employers with an average workforce age between 25 and 35 years might want to focus on organizational programs/policies designed specifically for that age demographic to reduce turnover. 14 | JULY-AUGUST 2016
Sometimes turnover can be a positive outcome for an employer if the employee who left the organization was a poor performer. We call this “desirable” turnover. According to survey results, the majority of turnovers in 2015 in each geographic area were “neutral,” except for Arizona where the majority of the turnover was “desirable” (non-regrettable). However, in Colorado, Utah, and Wyoming employers are reporting “undesirable” turnover rates around 25 percent. Employers might want to consider focusing efforts on reducing the “undesirable” turnovers in their organization to retain those high-performing and/or key employees in the organization.
What can organizations do to reduce turnover, especially undesirable (regrettable) turnover? Understanding turnover trends allows employers to focus attention on hiring the right people for the job, onboarding new employees, and retaining high performers to avoid “undesirable” turnover. If turnover is high in your organization—don’t worry! You can begin to implement or enhance policies/programs to reduce unwanted turnover and create a workplace where people want to stay. For more detailed information from the 2016 Personnel Pulse Survey, please visit our website at msec.org to view survey results by geographic area, organization employment size, and industry type. For Utah Grandfathered members interested in purchasing a copy of the survey, please contact surveys@msec.org.
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