may-june 2014
75 Years of Employer Health Care Changes
Introducing the DeGarmo Testing and Assessment Tools Getting Ready to Hire Summer Interns? The Impact of the DOMA Decision on Benefits
Contents
May/June 2014 1 A Note From the Editor
HR Professional Staffing Services
2 Then & Now: 75 Years of Employer Health Care Changes 3 The Impact of the DOMA Decision on Benefits
Health Care Reform Learning Zone
4 MSEC Library Topic: Workplace Communications 5 Member Profile: Developmental Pathways
Member Referral Program
6 Staff Spotlight: Barbara Thompson
Labor Relations Services
7 Introducing the DeGarmo Testing and Assessment Tools
Pre-Employment Screening Services
8 Getting Ready to Hire Summer Interns? 9
Benefit Update Conference
10 What Should I Know About PEOs? 11 It’s More Than a “Training Thing”: Needs Assessment for the Bottom Line 12 Pay Plans – It’s All in the Implementation 13 “Working Audits” are Trending Up
MSEC is celebrating its 75th anniversary this year! We opened our doors in 1939 with 100 member companies. Today we have over 3,000 members, in 77 industries, representing nearly a million employees. We appreciate your support and look forward to serving you for another 75 years.
A Note From the Editor
Lorrie Ray
Membership Development
With our 75th anniversary year underway, I have been thinking about what it means for MSEC to have served as an employers council for the last three-quarters of a century. To have a business that has lasted so long means that we provide strong value to members. And our members provide value to one another and us. We have members who joined in 1939 who are still members today. When I think of what employment looked like then, I am amazed at what it looks like now. The average annual salary in 1939 was $1,730. Broken down, that’s only 83 cents an hour. Today, someone working full-time earning federal minimum wage would make an annual salary of $15,080, and more in those states where minimum wage is greater than $7.25 per hour. I have seen figures of an average annual salary being $46,000, which is 26 times the average 75 years ago. When you look at the topics this month, I am certain those in 1939 did not foresee the kind of complicated issues we manage in the world of work. There was no Supreme Court decision on the Defense of Marriage Act to create tax complications for employers. There were no computerized psychometric and skills-based tests for employees. And you will be interested to read the article on how much health care has changed in the last 75 years. It means a lot to me that MSEC serves members economically in a time where complexity seems only to increase for employers, and the support they need seems to be ever expanding. If you need help with an employment issue, contact us and take advantage of the publications, resources, and staff that are here to guide you through the twenty-first century and beyond.
Put our 75 Years of
experience to Work for You
MSEC’s HR Professional Staffing ensures you’ll get exactly the help you need to get the job done. Our seasoned professionals specialize in all human resource matters and are equipped to handle multiple HR responsibilities.
There is no contract or minimum number of hours. We will work onsite, offsite, or a combination of both. For more information on how we can help, call 800.884.1328 or email hrmanager@msec.org.
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Then & Now
75 Years of Employer Health Care Changes James McDonough, Membership Development
to pass that would have mandated universal health care funded by payroll taxes. President Truman’s 1945 call for health care reform and single-payer, universal comprehensive coverage was thwarted by Cold War fears of socialism, communist ideology, and opposition from lobbyists. The 1950s brought a Social Security expansion to cover disability benefits, but little else except climbing health care costs that accelerate in the 1960s. Concerns over declining affordability and skilled health care labor shortages grew. In partial response, Medicare/Medicaid programs began in 1965.
The Affordable Care Act (ACA) is transforming American health care, affecting every employer and employee. Health care developments have affected employers for 75 years and MSEC has helped members to adjust. Looking back on past developments can shed light on our current challenges. Through the early twentieth century, medical care was largely ineffective due to untrained practitioners, unsanitary facilities, and ineffective medications. Improvements came in the early 1900s thanks to improved medical schools, licensed personnel, and sterilization techniques. However, healthy Americans did not value health care services and preventive care insurance was unpopular. Most people preferred to pay out of pocket for emergency services. Does this sound familiar? Through the 1920s, Progressive Era activists included health care in their efforts to no avail. Lacking national consensus, the federal government deferred to the states, who deferred to the private sector. Two models emerged in the 1930s that defined practices for decades. Non-profit “Blue Cross” health plans met quality standards and equal premiums for all consumers. Competing with them were plans developed by life insurance companies that used risk management techniques offering variable cost plans based on individual factors like age and gender. Responding to market forces, Blue Cross plans changed pricing to follow suit. President Roosevelt called for mandated coverage as part of his New Deal, but dropped this effort to secure his employment agenda. Employer-provided health insurance practices solidified in the 1940s. Wartime labor shortages, coupled with wage and price controls, encouraged companies to expand benefits to attract new hires. Labor unions successfully attained health coverage for their members. In 1943, the Internal Revenue Service ruled that employer-paid health benefits were not taxable income to employees, and bills failed
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Major advances in medical technology and pharmaceuticals and the corporatization of health care marked the 1970s and 1980s. These dramatically increased medical costs and insurance premiums, and “crisis” was used to describe U.S. health care. Both Presidents Nixon and Carter fail to pass universal health care coverage. Managed care and HMOs were created to slow cost growth, with limited success. The Consolidated Omnibus Benefits Reconciliation Act (COBRA) passed in 1986 remained the most impactful national health care legislation for employers until the Health Insurance Portability and Accountability Act in 1996. Despite intense political efforts, President Clinton’s proposal for universal coverage was defeated in 1993. Lacking political support, health care legislative efforts lay dormant through the early 2000s. By 2007, 45.7 million Americans were uninsured, costs were spiraling, and concerns abounded over the impact to GDP, budget deficit, and global competitiveness. President Obama’s 2008 platform included major health care reforms and expansion of coverage. When his ACA passed in 2010, it imposed major compliance requirements on employers. In 2014, the ACA is affecting employers and employees more than any previous health care legislation. American health care is changed forever and MSEC will continue to stay on top of developments to guide members. msec.org
The Impact of the DOMA Decision on Benefits Tammeron Trujillo, Human Resource Services
With the implementation of the Affordable Care Act (ACA) and the many considerations and expanded administrative responsibilities it brings to employers, providing health care benefits continues to get more complicated. Now, new questions have arisen over what happens when a partner isn’t a spouse? What happens if the spouse is of the same gender? Although the ACA allows employers to forgo offering spousal coverage, many employers consider such coverage an essential part of their benefits packages. What should your considerations be when you have employees who aren’t married to their partners or are in same-sex marriages? In 2013, the U.S. Supreme Court ruled in U.S. v. Windsor that Section 3 of the Defense of Marriage Act or DOMA, providing that only persons of the opposite sex could be recognized as “spouses” for purposes of federal law, was unconstitutional. This meant same-sex spouses were not eligible for numerous employee benefits governed by federal law, including ERISA, HIPAA, the Internal Revenue Code (IRC), COBRA, and FMLA – just to name a few. The definition of “marriage” and “spouse” is now set by each respective state. Notably, the Windsor decision did not disturb Section 2 of DOMA which permits states to refuse to recognize same-sex marriages performed under the laws of other states. This has left employers with a patchwork of conflicting state laws. In addition to the states that recognize civil unions or domestic partnerships, 17 states and the District of Colombia have laws or judicial decisions recognizing same-sex marriages. 33 states, including Colorado, Wyoming, and Arizona, have laws or state constitutional amendments prohibiting same-sex marriage. In many of
these states, legal challenges have been filed or efforts have begun to overturn state constitutional provisions barring the recognition of same-sex marriages. While regulatory guidance continues to be issued and legal challenges are pending, employers have important decisions to make. Are they going to offer benefits to spouses? Are they going to offer benefits to unmarried partners same or opposite sex? What happens if you have an employee who was legally married in a state that recognizes same-sex marriages, but resides in a state, such as Colorado, that does not? Do you have to offer separate plans in different states in which you operate depending on each state’s marriage laws? Does it matter whether you have a fully-insured or self-insured plan? Answers to these questions depend, in part, on each employers’ benefits’ philosophy and the impact on their employee population. This year’s Benefits Update Conference will feature a review of where the Affordable Care Act stands now, as well as a session specifically reviewing the impact of the 2013 DOMA decision on employee benefits.
The Learning Zone is a free, membersonly, online tool designed to help you navigate the ACA. Enter your organization’s demographics to see the provisions relevant to your organization are highlighted. Provisions include a comprehensive summary, key points for understanding, a timeline with effective dates, and much more.
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To access The Learning Zone, go to MSEC.org.
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MSEC Library Topic: Workplace Communications James McDonough, Membership Development
Communicating our thoughts and ideas to others should be such an easy thing to do. Just open your mouth and speak, call someone on the phone, or send an email. But so often our communication efforts that seem so clear and direct in our own heads do not generate predicted or desired results. Spontaneous banter is fine for casual interactions and business situations where risks and stakes are low. This dynamic changes dramatically once an important business objective or HR issue is involved. Making “off the cuff” remarks rarely conveys essential information to the listener and usually fails to obtain the results desired by the speaker. Being a “straight shooter” sounds good, but if not done carefully may foster unforeseen problems due to misinterpretation or misunderstanding. Communications is not a one-way street, where information flows out in a predictable direction. It is more like a roundabout or a highway interchange that gets congested and confusing if not handled properly. Misunderstandings due to miscommunications are rampant in the workplace, so understanding how to avoid or minimize them is an essential skill for every professional. Effectively communicating requires advance planning, training, and practice. MSEC offers training options for individuals and groups to promote effective communications and to address a variety of challenges faced by managers and HR professionals. Our Library also has many materials members may check out and use, including these popular titles:
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• Crucial Confrontations, Fierce Conversations - These books prepare you for the difficult workplace communications that accompany roles of responsibility. Providing a foundational layer to understand human interpersonal dynamics is a valuable asset to add to your career skillset. Both offer real-life scenarios in a variety of settings for a variety of relationships (e.g. work, home, parenting, etc.). • The Only Negotiating Guide You’ll Ever Need Many workplace relationships involve two or more parties of equal stature who must work effectively together to achieve results; department managers, labor unions, peer-level staff. In these cases, negotiation skillsets are essential to achieve desired results. This book provides commonplace scenarios and insight to understand the give and take of negotiation interactions. • Communication Briefings - This monthly newsletter offers a wide variety of tips on all forms of communications: verbal, written, electronic, etc. The short article format makes for quick reading and the practical applications offer immediate benefits to your workplace. Other notable resources that consistently provide useful information on communications are the Harvard Business Review, HR Magazine, and Employee Relations Today. The MSEC Library has numerous resources to help you with workplace communications. For assistance, contact me at 800.884.1328 or email me at jmcdonough@msec.org .
• 101 Tough Conversations to Have with Employees - This recent addition to the collection uses real-life dialog to handle difficult but common workplace scenarios. Included are coaching tips to help you understand the recommended approach. In addition to this practical guidance,
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essential best practices are covered on the “Rules of Engagement.” Primarily intended for managers, supervisors, and HR staff. Newly promoted employees will benefit, as will seasoned professionals facing new challenges or seeking enhanced skills.
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Member Profile Developmental Pathways Developmental Pathways is proud to announce their 50th Anniversary in 2014. In honor of such a monumental anniversary, Developmental Pathways will be hosting at least one event per month achieving one of their core values in being a trusted, vital partner within the Denver Metro community.
As they continue to grow and evolve even more, they would like to thank those who have made a direct impact in creating this growth and evolution to their organization. Thank you, Developmental Pathways for being a member since 2000!
For almost 50 years Pathways has provided support to clients ranging from case management and basic needs to 24/7 full-time care. They also actively seek assistance for over 3,000 more individuals who are waiting for resources and funding. Originally established in 1964 as a communitybased alternative to institutional care, since that time, Developmental Pathways has developed a broad array of services based on their mission to enrich the lives of individuals with intellectual disabilities by providing opportunities to lead a meaningful life. In addition to partnering with the Aurora, Highlands Ranch, and South Metro Denver Chambers for various events, other 2014 calendar items include a Spanish Resource Fair, Fashion Show, Family Fun Day Forum, and their headline event each year – the Pathways Client Achievement Awards.
Share the benefits and value of your MSEC membership with colleagues, business partners, and friends. If your referral joins us as a member, we’ll treat you to a $100 gift card. Call 800.884.1328
After a phenomenal 10th anniversary celebration of their annual Achievement Awards, this year’s “biggest event of the year” also celebrated 50 years by partnering with the Ritz Carlton-Denver to host this year’s Pathways Client Achievement Awards Golden Gala, recently held on Saturday, April 26, 2014. Developmental Pathways is a 501 (c) (3) non-profit agency in Colorado, supporting over 3,000 individuals with intellectual disabilities such as autism and Down syndrome in Arapahoe and Douglas Counties and the city of Aurora. Though they have evolved over their 50-year period, it can be difficult to keep up with that growth.
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Staff Spotlight Barbara Thompson Barbara Thompson
is the Executive Vice President at MSEC. Barbara has over 30 years of employment law and labor relations experience. She joined MSEC as a labor relations attorney in 1983, and in 1995 she became the Director of the Labor Relations department. In 2002, she was made Executive Vice President.
MSEC’s Labor Relations Service
Prior to MSEC, Barbara was a special agent with the FBI, assigned to offices in Atlanta, Georgia, New York, New York, and finally in Denver, Colorado where she later joined MSEC. She has a BS from Union College, Schenectady, New York and a Juris Doctorate from Emory University School of Law. She has been admitted to the Colorado, New York, and Georgia Bars. Barbara’s responsibilities extend to many areas of operations at MSEC, but specifically include membership development and delivery of labor and employment law services and specialized legal services to members. She is a frequent speaker at a variety of associations and organizations on the topics of labor and employment law, including critical employment trends.
The National Labor Relations Board enforces the National Labor Relations Act. Typically they have focused on unionized employers, but with the decline of unions the trend has been to target the policies and personnel actions of non-union organizations. Whether unionized or union-free the NLRA can have a significant impact on your workplace. Are you prepared to protect your organization?
Barbara is a past two term Chair for the board of Mount Saint Vincent’s Home, a behavioral residential treatment center that helps children with emotional and behavioral problems through a variety of programs and services. Barbara also serves on the board of Children’s Help and Assistance with Residential Treatment (CHART) and is a Committee Chair on the board of the Colorado Judicial Institute. Barbara is originally from New York but enjoys all things Colorado, including hiking, skiing, biking, and triathlons. She is married with two sons, both of whom attend Colorado State University.
MSEC’s experienced attorneys can help you understand what is at stake and provide guidance on how your organization can keep from being vulnerable to legal challenges.
Barbara will be retiring from her executive position at MSEC this summer. We will miss her and wish her the best! We hope she enjoys spending time with her family, traveling, and all that retirement has to offer. Good luck, Barbara!
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Call 800.884.1328 or visit MSEC.org for more information.
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Introducing the DeGarmo Testing and Assessment Tools Christy Smith, Outsourced Consultant Services
even positions specific to individual organizations. This instrument, the DeGarmo Personality Inventory (DPI), is linked to the U.S. Department of Labor’s O*NET database allowing for profiling of over 900 occupations based on extensive job-analysis research. Moreover, with no additional fee, you can create specific profiles unique to your organization and the position you are hiring for by using a short, job-analytic survey. With a few points and clicks, you can create custom profiles for any position regardless of how unique the position may be, offering greater information about the individual relative to the specific work demands of the position.
Recently MSEC partnered with a new test vendor, the DeGarmo Group, to expand our pre-employment assessment product offerings and better meet our members’ needs. Over the past year, many members have inquired about selecting applicants for organizational culture fit. While we offer a number of tools to do this, this partnership allows us to offer a customizable tool for any organizational culture, the Matched Values Profile™. For the same low-cost fee of using the assessment for applicants, we work with executive leadership in your organization to determine your custom organizational culture profile. This process is very efficient and produces a diagnostic report of core work values that guides your interpretation of applicants’ responses to ensure greater organizational alignment.
Another noteworthy addition is the DeGarmo Fit Index System®. This series of tests is designed to reduce employee turnover by profiling workrelated “hot buttons,” thereby determining which applicants are likely to stay or leave before they are hired. The Fit Index System® identifies high-turnover-risk applicants based on compatibility with frequently occurring job tasks. This award-winning system has helped many organizations reduce turnover by over 60 percent!
While we have offered many different forms of personality assessments for a variety of different positions, this partnership allows us to offer customizable personality assessments for any position,
For more information about our pre-employment testing offerings, call MSEC and ask for our Employee Testing and Assessments Service or email testing@msec.org.
What Is Employee Turnover Costing You? Studies show that businesses spend about one-fifth of an employee’s annual salary to replace the worker that leaves the company. That can add up quickly, and affect your bottom line. Hiring the right person can save you time and money. MSEC’s Pre-employment Services help you align the right person to the right job! For more information, call 800.884.1328 or email pes@msec.org.
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Getting Ready to Hire Summer Interns? Sue Wolf, Surveys
Summer internships can benefit both the employer and the student. Employers are able to observe and evaluate the work of interns to determine if they would be good hires in the future. Students are able to gain realworld experience in their field of study and make professional contacts in the industry prior to graduating. Benefits of Internship Programs for Employers • Creates a source of future employees
• Brings new ideas to the workplace
• Increases retention rate of new graduate hires
• Builds a partnership with the local community
MSEC has conducted an annual Student/Summer Intern Study for over 10 years. The 2014 study includes responses from 36 organizations. Of those respondents, 23 organizations offered paid summer internships. This study collected the average pay rates for technical and administrative interns. Technical hires include engineering, computer science and mathematics. Administrative hires include human resources, finance, and information systems. Highlights from the 2014 study: 1 The average hourly hire-in rate for all levels of technical college students is $15.97, a 10 percent decrease from the 2013 average offer rate of $17.80. 2 The average rate for all levels of administrative college students is $13.99 per hour, a 14 percent decreased from the 2013 average offer rate of $16.28 per hour. 3 Hire-in rates made to college students in their junior through graduation year for technical interns are $16.52 per hour compared to $15.05 per hour for administrative interns. 4 Students in their master’s program have the highest hourly hire-in rates of $19.08 for technical positions and $16.19 for administrative. 5 Manufacturing industry technical intern rates for all levels of college students are $17.18 per hour and $16.75 per hour for administrative interns. 6 Non-manufacturing offer rates for all technical college interns are $12.79 per hour and $11.00 per hour for administrative interns. 7 Government vs non-manufacturing offer rates for all technical college interns are $13.79 per hour and $10.99 per hour for administrative interns.
Are you paying interns correctly? Don’t guess, call MSEC at 800.884.1328 and find out.
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This Year’s Sessions Legal and Legislative Year-in-Review Is Your Retirement Plan Going to Pot? Managers and Employee Health Stop Ignoring the Water Cooler Gossip: Learn the Value of EAPs The Changing World of FSAs, HRAs, HSAs The DOMA Decision: What We Know One Year Later A Strategic Approach to the ACA: Plan Design, Delivery, and Financing Colorado Springs - July 10, 2014 - New Location! Colorado Springs Marriott Fort Collins/Loveland - July 15, 2014 - Embassy Suites Loveland Denver - July 17, 2014 - New Location! Westin Downtown Denver Grand Junction - July 22, 2014 - Two Rivers Convention Center
Time:
Registration & Continental Breakfast: 8:00am–8:30am • Program: 8:30am–3:30pm
Cost: includes lunch MSEC Members $199 per person $179 per person for groups of 3 or more from the same company For more information or to register call 800.884.1328, email registration@msec.org, or go to MSEC.org.
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What Should I Know About PEOs? Sandy Alexander, Membership Development
I have spoken to several companies about Professional Employers Organizations (PEOs). They often ask me what a PEO does for its clients. PEOs provide administrative assistance to employers with human resources, payroll, benefits, workers’ compensation, and related tasks. PEOs become coemployers with their employer-clients and assume control over many aspects of the employment relationship. Some PEOs even hire the employer’s employees. Companies joining PEOs may realize cost savings in workers’ compensation and benefits administration, at least initially. Small companies see the most significant up-front savings in health plan costs. Rates increase; however, at the same rate as they do for employers who are not part of PEOs. Moreover, inclusion of the underinsured and uninsured affects rates over time in the same way as it would for any employer. Depending upon how the PEO administers workers’ compensation, companies may or may not realize a savings in their rates. I make these recommendations to companies interested in joining a PEO: • Carefully review the Client Services Agreement (CSA). Many PEO agreements have language indemnifying or fully releasing them from liability for the worksite employer’s actions. • Make sure you understand your financial obligations. Pricing can be confusing and is often different from one PEO to another. Employer-clients should be clear about how much they will pay and about what services are included for that price. • Ensure the PEO is knowledgeable of state laws and other requirements in the states where you operate. Requirements may be different from the state where the PEO is located. There is a lot to consider. If you need more information, we can help. We have two FYIs on the topic, Considerations in Joining a PEO and A Guide to Exiting a PEO on our website. Please don’t hesitate to give me a call at 800.884.1328 or email me at salexander@msec.org to discuss this further.
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It’s More Than a “Training Thing”: Needs Assessment for the Bottom Line Evan Abbott, Organizational Development and Learning
What’s the first thing that comes to mind when you hear the term “needs assessment?” If you are like most people, odds are the words “survey” or “training” were close to the top of your list. Needs assessment is a fundamental component of the development planning process. However, for many of us, our needs assessments lack impact. Those thoughts of training and surveys either a.) stop us cold with the fears of survey construction, administration, and analysis or b.) limit how we approach the process. The first can often be helped by consulting with an outside partner to do the hard work for you (like MSEC and our Training Needs Assessment Survey). The second can be managed by changing how you think about the overall intentions of the project. All too often we limit how we think about needs assessment to topics that we are considering as training topics or tests to benchmark and measure knowledge and skills. While these are important components of needs assessments, they lacking the substantive connection to link training to the organization’s bottom line. One way to increase the impact of your needs assessments is to think about the data and the process through four different lenses: business needs, performance needs, training needs, and environment needs. Business needs keep the doors open and bank accounts full. Examples include increased sales, decreased waste, satisfied customers, retained employees, and similar business goals and metrics. What role do business needs play in the needs assessment process? Without them, a fundamental question cannot be answered for the end learner: why? Training efforts should be tied back to end
organizational objectives for the most impact and to have the most meaning for the end learner. Performance needs are how business needs get met. What does a sales representative need to do to grow quarterly sales? What does a production technician need to do to reduce waste? What do supervisors need to do to support and engage workers? Performance needs are about the “do” behind the “why.” Training needs connect the “why” and the “do” through a “what.” Training needs are the traditional aspects of needs assessments. What are those things the sales representative, production worker, and supervisor need to be trained on to perform at the level required to reach the business needs? What knowledge, skills, or awareness does someone need to possess to perform to your business expectations? Finally, good needs assessments explore the environment needs connected to performance. What does the trainee need in his or her work environment to apply the skills addressed in the training needs? Environment needs are “where” the “what” happens. (Did you follow that?) These things could be tangible and concrete (e.g., equipment, resources, supportive processes, and rules) or more abstract (e.g., support from supervisors to apply skills learned, empowerment, and time to do the task the way it was taught). A work environment and supervisor that supports the knowledge, skills, and awareness learned in training are the biggest predictors of whether an employee transfers what was learned in training back to the workplace. The next time you need to do a needs assessment, don’t forget to think more broadly. The more you think about the “why,” “do,” “what,” and “where” of training, the more impact you create.
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Pay Plans – It’s All in the Implementation Candy Siderius, Outsourced Consulting Services
So much time and effort goes into designing a compensation plan, it is a pity when the implementation is ineffective. Employees uninformed about such an emotional topic as pay can easily become confused, disgruntled, and disengaged. Here are a few things to consider when implementing your plan:
Clearly Defined Plan Objectives and Guidelines This begins with your Total Compensation or Total Rewards philosophy. Ideally, this addresses the organizational mission and values, the rewards offered, and how pay levels relate to the market in terms that everyone can understand. Guidelines identify the roles and responsibilities for ongoing plan design and operation. This is important since the pay plan is not the sole responsibility of Human Resources. Training Employees typically go to their supervisors with questions, so supervisors need to understand the plan and be aware of their role. They may not agree with the plan principles, but they need to administer the plan accordingly. Consider the situation where a supervisor gave an employee the highest performance rating for the largest possible merit increase. The supervisor later admits, “the employee barely meets expectations but the company doesn’t pay enough so I felt I had to give this increase.” What happened here? Did the company train the supervisor? Are pay decisions monitored at a higher level? To avoid such situations, supervisor training should be ongoing. Communication, Communication, Communication Ongoing and regular communication is the cornerstone of plan implementation. Compensation plan design can appear complex or mysterious to employees. Most pay plans are designed by first looking at how similar jobs are paid in a particular labor market. Employees, however, often focus on how they, as individuals, are paid. You should clarify the distinction between how the pay rate for a job is determined based on the organization and the market how a particular employee’s pay rate is determined within a salary range. Communication will be more effective if employees understand your Total Rewards Philosophy, how pay for their job is determined, and how they can or cannot increase their pay, whether through experience or credentials, performance, or tenure. Evaluation Gathering feedback from employees, training supervisors, and processing pay reviews and changes should help identify gaps in the process and may lead to refinements. You can use this information along with examination of various practices in context with your philosophy and plan guidelines to improve the overall implementation process. When considering any implementation, remember, “A well-designed plan poorly implemented is worse than a poorly-designed plan well implemented.” Contact our Compensation Consulting Service at 800.884.1328 or email compensation@msec.org for help with your pay plan implementation.
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“Working Audits” are Trending Up Bryan Spencer, Outsourced Consulting Services
Outsource HR audits for objective outcomes … and a shorter to-do list MSEC members have led our HR Professional Staffing team to coin a seemingly new term. Allow us to introduce the “working audit.” The responsibilities and influence of the HR universe seem to be ever expanding. Think personnel files, recordkeeping, retention, recruiting, employee relations, often payroll and benefits, and maintaining post-millennium workplace culture. Add to that an increasing body of employment law and complex health care changes. All this is occurring while organizations have an eye on streamlining processes, improving quality, and reducing costs. Given these truths, the possibilities promised by HR audits are evolving, as some organizations are discovering a new twist on the cliché of doing more with less. When we say “audit” please do not think of a dreaded scenario of bureaucrats descending. Simply put, HR audits are meant to take a systematic and disciplined look at the effectiveness of your HR processes, policies, and procedures while enhancing integrity and accountability to mission and policies, as well as conformance to regulations. Audits can identify issues and challenges before they become problems, while uncovering potential opportunities—not the least of which is a fresh opportunity to do things right the first time. When there is room for improvement, an auditor will turn their observations into recommendations to ensure the function is working in the best way possible to serve itself and the organization. Traditionally, the product of an audit is a final report that is essentially a to-do list. Next to an audit, the last thing any of us usually wants is a longer to-do list. However, the beauty of a working audit is that it delegates the to-do list back to the auditor. More and more, our consultants are being asked to implement corrections through the audit process. The consultant not only assesses processes, analyzes data, observes procedures, and recommends practices he or she amends whatever observations can legally be corrected along the way. Audits provide leadership with valuable assurance that risks are mitigated and execution of policies and regulations are (or will be) in place. The working audit simply checks off most of the classic audit to-do items from your proverbial list. If you and your team are considering an audit, arranging for a working audit just might give you more up front by completing tasks along the way. This means even less for you to do at the other end, giving you time to focus on future change and growth. For more information, call me at 800.884.1328 or email bspencer@msec.org.
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