Workforce - July/August 2017

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Workforce announces the 2017 Game Changers, including this trio from the Golden State.

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July/August 2017

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D E S U C O F S H ONE BENEFIT E E Y O L P M E KEEP TE RISK WIT ACTIONS

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AND MITIGA

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Matters

AND NOBODY KNOWS MORE ABOUT PERSONALITY THAN HOGAN

Backed by more than four decades of research, our assessments paint a clear picture of what people want, how they’ll get what they want, and what will get in their way. Hogan makes it easier to hire the right people, identify and develop high-potential talent, build better leaders, and improve your organization’s bottom line.

From Our Editors

From the personal computer to the rise of mobile phones and powerful social software platforms, there’s been a steady march of game-changing technology that has completely transformed how we connect and get things done.

There’s a similar movement afoot in HR technology. But in many ways the game is just beginning to change. Increasingly powerful artificial intelligence and machine learning algorithms promise to transform HR. The real game changer still remains people. In this issue, we spotlight this year’s group of Workforce Game Changers.

Starting on page 26, you’ll see the stories of leaders from global giants like AT&T and IBM as well as rapidly growing companies like Shiftgig, Jellyvision and MOVE Guides.

Each of these industry leaders is doing their part to change the HR game.

— Mike Prokopeak, Editor in Chief 4

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After flight attendant Jane Mitchell told Kenny G of her daughter’s brain cancer diagnosis, the Grammy-winning saxophonist was a surprise visitor to Delta Air Lines’ annual cancer fundraiser, the Delta Jet Drag. Kenny G spent time with Mitchell (above), posed with Delta staff and performed during the event’s Relay for Life.

Global mobility and relocation company Altair Global (above) held its fourth annual Feed the Hunger company packathon in April. Preceded by the annual Day of Recognition/Circle of Excellence employee awards and company breakfast. Altair employees in Plano, Texas, packed 25,056 meals for children in need. More than 15,500 of the meals went to Dallas-area children.

READER FEEDBACK Reader Randi Mackowiak reacted to the Last Word column titled, “HR’s Stand in the Face of Fox”: I don’t recall seeing any court decision or evidence that Bill O’Reilly did or didn’t do something. I’m disappointed that we’re so quick to condemn someone before proof has been provided.Where was all the outrage about Bill Clinton’s behavior? Those women were treated awful and never given the benefit of the doubt. I am tired of everyone being defined as good or bad based on whether they are a conservative or a liberal. Bad behavior is bad behavior. And let’s look at the facts before we judge either side of an issue.

Workforce.com/BillOReilly

Several readers chimed in on Jon Hyman’s post, “Wait, an Employer Can’t Fire an Employee on FMLA Leave Caught on Facebook on Vacation?”: Said Joey Thompson: “Being capable of lying around on the beach doesn’t mean you’re suddenly capable of performing the duties of your job, so that is a danger for the employer. Seems like this guy, working at a hospital, and having had shoulder surgery, probably still have physical limitations. Even if he can’t perform at least one of the essential functions of his job, this doesn’t

mean he isn’t still ‘recovering’ even if it’s in the Caribbean.There is no obvious fraud here at all.”

Melissa L. added: “He openly posted the photos, and you know coworkers are going to see them. Unless they were photos of him wrestling reef sharks? This just seems very, very petty. And to say it should be disturbing to all employers that someone might spend some of their recovery time on a beach instead of a couch is a bit much. I could understand some office gossip or irritation about it. But terminating the guy was pure retaliation.They ruled correctly.

And Sarah pointed out: “This reminds me of supervisors at a former company that didn’t think an employee that took intermittent FMLA could come back to work with their hair or nails done. Just because you have FMLA doesn’t mean you’re a shut-in 24/7, nor should you be treated as such. Meanwhile we had an employee upstairs that would purposely elevate her blood sugar to leave for the day and go to the casino.”

Workforce.com/FMLALeave We welcome your comments on these stories and others on our website.

Be sure to follow us and give us a shout on Twitter at @Workforcenews, too.

Hope to hear from you! j u ly / au g u s t

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COMPREHENSIVE. CONNECTED. CONVENIENT. WORKFORCE DATA FOR YOUR NEEDS

TALENT TRACKER: AN ANALYTICS SERVICE FOR TALENT

thetalenttracker.com

A PUBLICATION OF July/August 2017 | Volume 96, Issue 4 PRESIDENT John R. Taggart jrtag@workforce.com

RESEARCH MANAGER Tim Harnett tharnett@workforce.com

VICE PRESIDENT, CFO, COO DATA SCIENTIST Kevin A. Simpson Grey Litaker ksimpson@workforce.com clitaker@workforce.com VICE PRESIDENT, GROUP PUBLISHER Clifford Capone ccapone@workforce.com

RESEARCH CONTENT SPECIALIST Kristen Britt kbirtt@workforce.com

VICE PRESIDENT, EDITOR IN CHIEF Mike Prokopeak mikep@workforce.com

RESEARCH GRAPHIC DESIGNER Theresa Stoodley tstoodley@workforce.com

EDITORIAL DIRECTOR Rick Bell rbell@workforce.com CONTRIBUTING EDITOR Frank Kalman fkalman@workforce.com

MEDIA & PRODUCTION MANAGER Ashley Flora aflora@workforce.com

REGIONAL SALES MANAGERS Derek Graham dgraham@workforce.com Daniella Weinberg dweinberg@workforce.com Nick Safir nsafir@workforce.com DIRECTOR, BUSINESS DEVELOPMENT Kevin Fields kfields@workforce.com MANAGER, BUSINESS DEVELOPMENT Brian Lorenz blorenz@workforce.com

CONTRIBUTING WRITERS Jennifer Benz Marty Denis Kris Dunn Soren Eilertsen Sarah Fister Gale Bravetta Hassell Jon Hyman Mark Kobata Mia Mancini Rita Pyrillis Camaron Santos Kellye Whitney

AUDIENCE DEVELOPMENT ASSOCIATE EDITOR DIRECTOR Andie Burjek Cindy Cardinal aburjek@workforce.com VICE PRESIDENT, EVENTS ccardinal@workforce.com ASSOCIATE EDITOR Trey Smith DIGITAL MANAGER Lauren Dixon tsmith@workforce.com Lauren Lynch ldixon@workforce.com EVENTS MARKETING llynch@workforce.com COPY EDITOR MANAGER DIGITAL COORDINATOR Christopher Magnus Anthony Zepeda cmagnus@workforce.com azepeda@workforce.com Mannat Mahtani mmahtani@workforce.com EDITORIAL INTERNS WEBCAST MANAGER Ariel Parrella-Aureli Alec O’Dell LIST MANAGER aparrella@workforce.com aodell@workforce.com Mike Rovello Marygrace Schumann EVENTS GRAPHIC hcmlistrentals@infogroup.com mschumann@workforce.com DESIGNER BUSINESS Tonya Harris VICE PRESIDENT, ADMINISTRATIVE lharris@workforce.com RESEARCH AND MANAGER ADVISORY SERVICES BUSINESS MANAGER Melanie Lee Sarah Kimmel Vince Czarnowski skimmel@workforce.com vince@workforce.com mlee@workforce.com PRODUCTION COORDINATOR Nina Howard nhoward@workforce.com

WORKFORCE EDITORIAL ADVISORY BOARD Arie Ball, Vice President, Sourcing and Talent Acquisition, Sodexo Angela Bailey, Associate Director and Chief Human Capital Officer, U.S. Office of Personnel Management Kris Dunn, Chief Human Resources Officer, Kinetix, and Founder, Fistful of Talent and HR Capitalist Curtis Gray, Senior Vice President, Human Resources and Administration, BAE Systems Jil Greene, Vice President, Human Resources and Community Relations, Harrah’s New Orleans Ted Hoff, Human Resources Vice President, Global Sales and Sales Incentives, IBM Tracy Kofski, Vice President, Compensation and Benefits, General Mills Jon Hyman, Partner, Meyers, Roman, Friedberg & Lewis Jim McDermid, Vice President, Human Resources, Cardiac and Vascular Group, Medtronic Randall Moon, Vice President, International HR, Benefits and HRIS, Lowe’s Cos. Dan Satterthwaite, Head of Human Resources, DreamWorks Dave Ulrich, Professor, Ross School of Business, University of Michigan Workforce (ISSN 2331-2793) is published bi-monthly by MediaTec Publishing Inc., 111 E. Wacker Dr., Suite 1200, Chicago IL 60601. Periodicals postage paid at Chicago, IL and additional mailing offices. POSTMASTER: Send address changes to Workforce, P.O. Box 8712 Lowell, MA 01853. Subscriptions are free to qualified professionals within the US and Canada.

Digital free subscriptions are available worldwide. Nonqualified paid subscriptions are available at the subscription price of $199 for 12 issues. All countries outside the US and Canada must be prepaid in US funds with an additional $33 postage surcharge. Single price copy is $29.95 Workforce and Workforce.com are the trademarks of MediaTec Publishing Inc. Copyright © 2017, MediaTec Publishing Inc. ALL RIGHTS RESERVED. Reproduction of material published in Workforce is forbidden without permission.

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ONLINE EVENTS

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CONTENTS

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ON THE COVER GOLDEN STATE GAMERS

Three of our 2017 Game Changers — from left: Kaley Gagnon, Brian Monahan and Kellie Glaser — are from the Bay Area and are shining examples of this year’s winners.

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COVER PHOTO BY MARGO MORITZ

SECTOR REPORT

FEATURES

44 PASSING THE STRESS TEST

26 GAME CHANGERS CLASS OF 2017

46 L&D TODAY

40 FEATURES OF LEGENDARY COMPANIES

Evolutions in technology are making background screening faster, easier and less annoying.

Employee training has gotten microsized, personalized and really, really short.

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Domestically and internationally, the 2017 Game Changers are standouts and standard-setters in the HR field.

22 I WANT A NEW DRUG

Is it time for employers to take pharmacy benefits into their own hands?

Great is really good when you’re an organization. But aspiring to make legendary status goes beyond great.

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40 ON THE WEB SPEAK UP!

The Workforce online community provides you with virtual meeting places to chat about issues and trends affecting you and your workplace.

LIKE US: facebook.com/workforce.magazine

FOLLOW US: twitter.com/workforcenews

JOIN THE GROUP: workforce.com/LinkedIn

WATCH US: workforce.com/youtube

FOR YOUR BENEFIT COLUMNS 4

YOUR FORCE

It’s people who change the workplace game.

13 WORK IN PROGRESS

Know when to give a low-key shoutout.

14 GAINING AN EDGE

Organizations are finding that benefits provide an edge in the war for young talent.

20 THE PRACTICAL EMPLOYER

15 ALLERGY ALERT

Employers are likely to see more employees struggling with food allergies as millennials grow up.

15 YOUTHFUL SAVINGS

Younger workers cast eye toward short-term financial goals.

No such thing as ‘fair’ at work.

50 THE LAST WORD

Take it easy on the boss; there’s a world to save.

TRENDING 10 FATHER TIME

17 BENEFITS BEAT

Benefits leaders: the next generation.

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16 DISH OF DIGITAL SWEETENS DIABETES MANAGEMENT

Online solutions paired with other workplace strategies can help.

Dad-friendly workplace policies are finally growing up.

11 FROM THE WEB, PEOPLE MOVES AND BY THE NUMBERS

Plug-and-play benefits; Cornish heads D&I; cyber crime.

12 Q&A

Bill Innes says spring ahead, fall back into ‘Your Next Season.’

12 CHANGE JOBS TO TRIM THE FAT

Maybe it is time to get that extra workout in after a long day.

LEGAL CORRECTION The May/June Workforce 100 should have listed Thayla Bohn, vice president of corporate and human resources, as the top ranking HR person for American Fidelity Assurance Co., and Julie Wilson, chief people officer, as the top ranking HR person for Cerner Corp. Additionally, Enterprise Holdings Inc. employs 97,000 workers worldwide, and Intuitive Research and Technology employs 340 people.

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18 DISABILITIES IN THE WORKPLACE

Accommodation can be an employer’s biggest legal challenge.

19 LEGAL BRIEFINGS

Discrimination vs. stereotyping; Facebook rants.

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TRENDING

Dad-Friendly Work Policies Begin Growing Up Companies should be certain that their parent-centric initiatives and benefits are clearly meant for all parents, not just moms. This will benefit both men and women.

By Andie Burjek

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atherhood isn’t just Brad Harrington’s work; it’s his life. As the lead author of fatherhood research at the Boston College Center for Work and Family, Harrington also has three children of his own.

When a baby gets fussy or starts to cry, “It’s just so easy for fathers to stand there and think, I don’t know exactly what to do here. It’s natural to look to your wife even if she’s a first-time mother, if she’s been home with the child for a couple of months.You think instinctively she knows what to do better than I do,” said Harrington. That projection continues to solidify gender roles for both, he added.

Gender roles of opposite-sex couples have shifted over time, but that doesn’t mean people automatically mesh into new roles. More dads are involved in their children’s lives than in previous generations — since 1965, fathers have more than doubled their family involvement, cited NPR — but they’re not necessarily more confident in their parenting abilities.

Employers can play a part in making dads more comfortable in their fatherhood role.

Michelle Birnbaum Most conspicuously, paid parental leave evens the parenthood playing field, according to Harrington. What’s key here is that parental leave is available to both men and women.

Several organizations have made massive leaps in paid leave in the past two years, he said. At some companies, “Suddenly it’s eight weeks, 10 weeks, 12 weeks, 16 weeks. It’s been a big sur10

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prise that this amount of paid leave has been extended to women, and the fact that they’ve mirrored that for their male employees has been terrific as well,” he said.

Some companies that have expanded paid parental leave include Intel, IBM, Johnson & Johnson, Ikea and Hilton, he said.

“The more I’ve researched fatherhood, the more I’ve come to appreciate the importance of paid leave,” said Harrington. “Having a father take leave and spend time with their child on their own, one-on-one, and providing care directly is huge in terms of whether or not we achieve gender equality.”

It’s a chance for dads to develop confidence in their role as a caregiver.

Meanwhile other resources like affinity groups and public forums, although less conspicuous than paid leave, are also important, he noted.

MetLife Inc. is one company that seeks equality in its employee leave policies and other workplace resources for parents. What’s important in the communication of these resources is that a company make it very clear that by parents, they mean moms and dads, said Michelle Birnbaum, the former head of work-life and director of global diversity and inclusion at MetLife.

One of the insurance company’s diversity business resource networks — similar to an employee resource group — is Families at MetLife. It’s one of the newer resource networks but already has close to 400 members, and on a national level it has male and female co-chairs. They hold events such as a live-streamed career panel headed by working dads across all levels of the company and an adoption panel where both mothers and fathers share their stories.

It helps to share stories and to have the messaging come from different people, said Birnbaum. “When you’re thinking about positioning any kind of

support or program, work-life or wellness or benefits, considering your different audiences is important,” said Birnbaum. “When you try to take this more gender-neutral approach, there are so many pieces to look at, but it’s worth it.”

Eddie Hollowell, communications and multimedia lead at MetLife, has taken advantage of many of these perks. He took parental leave and worked reduced hours f o l l ow i n g the birth of his son.

He’s used a back-up Brad Harrington care benefit when other child-care options fell through. And he’s attended panel discussions and webinars to get advice.

“This support from MetLife and from my co-workers and management is why I have continued to be a committed employee and it’s why I have remained with this company for 10plus years,” said Hollowell in an email interview.

Another area in which employers tend to communicate to women more than men is workplace planning, said Jackie Reinberg, national practice leader, absence, disability and life at Willis Towers Watson. Most men go back to work full time after the birth of a baby because that’s the expected rationale, she added, and oftentimes they’re sleep-deprived or otherwise unprepared for their new reality.

“Part of what men need is having the management structure that helps them with workforce planning, when they’re going to take paternity or parental leave, and when they’ll come back to work,” said Reinberg. j u ly / au g u s t

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TRENDING

FROM THE WEB PLUG-AND-PLAY BENEFITS Utilizing a horizontally integrated plug-and-play benefits model is imperative, writes SHRM chapter past president Gene Raymondi. Meeting the needs of a workforce that employs five generations working side by side, balancing on-site employees with a growing number of remote telecommuters and the increasing focus on mobile technology demands a benefits platform that is agile and responsive, he says.

Workforce.com/ PlugNPlay SPIDER-MAN MEETS SUPERMAN In a sort-of Marvel meets DC crossover on the Talent10x podcast, Workforce Editorial Director Rick Bell teams up with Talent Economy Managing Editor Frank Kalman to discuss SHRM’s talent conference, workplace culture issues and more.

Workforce.com/ Talent10x GREEN THUMBS AND LIVING WALLS Several benefits are associated with being in green spaces, writes blogger Andie Burjek.

Plants have an air purification effect and they bring a diversity of species into the city.

Plants can have a powerful impact on well-being. For example, they can help with stress reduction and lowering heart rates, not to mention the revitalization impact plants can have.

Workforce.com/ LivingWalls j u ly / au g u s t

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PEOPLE

moves

SHAUN FRANCIS New-media company PureRED-Ferrara has named Shaun Francis as senior vice president of HR and talent. He will work closely across all levels of the organization to drive performance and the consistent delivery of company values.

Most recently, he was CHRO and SVP of transformation at CSM Bakery Solutions in Atlanta.

KELLEY CORNISH TD Bank named Kelley Cornish head of U.S. diversity and inclusion.

Working with senior-level executives as part of the bank’s diversity leadership team, she will drive strategic efforts that enhance TD’s commitment to sustaining a diverse and inclusive workforce and customer experience. Cornish brings more than 25 years of leadership in D&I and HR. JACQUELINE GAILLARD Axioma, which provides enterprise market risk and portfolio management solutions, named Jacqueline Gaillard as managing director, people and talent. Gaillard holds an M.A. in labor and industrial relations from the University of Illinois.

To be considered for People Moves, email a brief announcement and a high-resolution color photo to editors@workforce.com. Include People Moves in the subject line.

By the Numbers compiled by Rick Bell

The Ghost in Your Machine Businesses continue to face a cyberattack onslaught.

No More Chump Change Monetary damage caused by reported cyber crime

2015: 8% in$1.07 2015billion

2009: $559 million

2001: $17.8 million

4% in 2014

Source: IC3

Bad Business Small businesses worried about a cyberattack

Yes

No

87%

13%

Source: Manta, March 2017

What, Me Worry?

60

%

of millennials are unconcerned about corporate security by using personal apps vs. corporate apps Source: Wired

You’ve Got Infected Mail 1 in 131 emails

contained malware, the highest rate in 5 years (2016) Source: Symantec; 2016

Your Money or Your Data Files Who’s willing to pay a cyberattack ransom?

64%

Americans

% 34 Globally

Source: Symantec

workforce.com | w Workƒorce orkforce.com 10| Workƒorce

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TRENDING

Change Jobs to Trim the Fat

By Ariel Parrella-Aureli

SPRING AHEAD, FALL BACK INTO YOUR NEXT SEASON

By Rick Bell

M Bill Innes, Author

Bill Innes spent the bulk of his career with Fortune 100 firm ExxonMobil, retiring as president of ExxonMobil Research and Engineering Co. He recently co-authored “Your Next Season: Advice for Executives Transitioning from Intense Careers to Fulfilling Next Seasons,” with Leslie W. Braksick, offering keen insight to life beyond the boardroom. Workforce Editorial Director Rick Bell caught up with Innes via email to discover what winds are blowing through these changing seasons.

Workforce: Just what do you mean by “Your Next Season?”

Bill Innes: As the biblical quotation says, “for everything there is a season.” The idea of your next season is to suggest that the period after retirement is one that naturally has a different place in the span of a lifetime. It is a time when satisfaction and success can be defined differently; and unless it is approached differently, you may miss the joy and fulfillment of a wonderful opportunity. Seasons are inexact in their timing; there are patterns we expect with seasons, but they always include surprises and weather that was unanticipated. Corporate transitions are similar. We prepare; we plant; we fertilize and we water, and yet what we expect may not be realized.

WF: What constitutes a successful next season?

Innes: The attributes of success in your next season are similar to other stages in life — a sense of purpose, self-fulfillment and self worth. What is different is that the field in which it can be found is wonderfully unconstrained — you don’t have to earn a living, you don’t have to lead the parade unless you want to, you can work to your own schedule, you don’t even have to be knowledgeable! What is the same is that you will be most successful if you are thoughtful and deliberate about the decisions about where to spend your time.

WF: Do people struggle with this transition?

Innes: Many people struggle with this transition. In many ways the more successful they are in their primary career, the more difficulty they may have in imagining another focus for their life that will be as fulfilling. It takes time and deep reflection to accept that a very satisfying stage in life has come to a conclusion, to let it go and to believe that another door is opening with possibilities that may be just as fulfilling. Tragically, some never succeed in making the transition. We have, however, found that those who prepare well for the transition, struggle less. This is why we wrote the book.

WF: You talk about “essentials for the journey.” What are they?

Innes: In this particular transition at this time in life, health, openness to a newly defined purpose and companionship are particularly important. Your health defines so much of what you can take on. Openness to a newly defined purpose is essential to breaking the constraints of your work life and role; and companionship makes the leap into something new less daunting.

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aybe it is time to get that extra workout in after a long day at work.

A new survey by CareerBuilder says that 56 percent of U.S. workers think they are overweight and blame their careers for the added pounds. The survey, which sampled 3,420 full-time workers across industries and company sizes in the U.S., found that 2 in 5 workers have gained weight at their current job. Employees blamed sitting at a desk for too long, not having enough time and fatigue after work as reasons why they have gained weight.

Wellness culture in the workforce has long been studied, but the most shocking part of the CareerBuilder survey — which occurs annually — was that 63 percent of workers do not take advantage of wellness benefits offered by their employers, said Rosemary Haefner, chief human resources officer at CareerBuilder. In an email interview, Haefner said studies have shown healthy workers improve the workplace and said employee wellness needs to be addressed more critically.

Seth Serxner, chief health officer and senior vice president of population health at OptumHealth, a health services and innovation company, also sees well-being as a necessity in workplace culture. To get there, he said employers are challenged with engaging employees to be healthy, which involves strong communication, financial or social incentives, positive experiences and valuable wellness benefits.

Given the heavy reliance and evolution of technology, Serxner said having a consumer-centric approach by way of relevant, personalized apps and other technology will create more incentives for people to work out, eat healthy and change their wellness lifestyles, he added.

“When you start to look at things like getting enough sleep, managing financial well-being, being more mindful and resilient — those are things people absolutely care about,” he said. j u ly / au g u s t

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TRENDING

Wo r k i n P r o g r e s s

SHOUTOUT FOR LOW-KEY RECOGNITION

By Kris Dunn

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ecognition.We’ve been trained to believe that everyone needs it.

Do they?

I think so, but something that’s lost in the recognition/ engagement market is that for many workers, getting recognition in the widely accepted formats can backfire.

The reason I’m thinking about this is simple. I was recently asked to speak to a group of managers by a premiere provider in the talent management space. One of the features of the meeting after I spoke was a small spiral notebook of great ideas for the managers in question to use to create a power month of recognition for their teams.

A great idea for sure by the provider in question.

But as I looked around the room, I saw some poorly hidden discomfort on the faces of those who would have to take the ideas in question back to their teams.

At issue wasn’t the merit of the ideas, but their utility for certain segments of the workforce. The managers in question were thinking about the reactions of many of their employees to specific ideas included in the booklet.

I took it upon myself to follow up and ask the managers in question about the idea of doing a power month of recognition at their companies. What I heard can be summed up as follows: Recognition isn’t a one-size-fits-all affair. Some of the ideas viewed as best practices will be loathed by certain recipients.

I couldn’t agree more; some notes from my life follow.

My dad, Kent Dunn (RIP CKD), was a lifetime telephone/ telecom lineman. One of the greatest things he gave me was a work ethic.

The memory of hearing his boots hit the floor and go out the door while I was still in bed before school are riveted in my mind. He had a bunch of positive qualities you’d want in anyone you hired from a pride of work perspective.

But one thing he never would have been comfortable with is public recognition. Here’s some things that are widely talked about today related to recognition he wouldn’t have been comfortable with, with his likely reaction in parenthesis to whoever was trying to reward him with any form of praise: 1. Recognition in front of his peers in a team setting. (Don’t ever do that again.)

2.

Recognition 1-on-1 from his boss. (So what?

That’s my job.That wasn’t special.)

3.

Recognition in a company communication.

(Nobody reads that stuff.)

Kent Dunn would have been uncomfortable with many of the recognition strategies we take for granted in white-collar America. I think many blue-collar workers we have today in America are a lot like Kent. When I think about alternative/best ways to do recognition for those folks (mostly older males in blue-collar jobs focused on making a living, not changing the world), I came up with the following two strategies: 1. To make sure the Kent Dunns of the world hear the praise, share what the customer told you directly with him (less emphasis on how you feel about it).

The strategy here is this:You praise Kent in the normal way and it feels like you are expecting him to hug you, which repels Kent. You tell Kent that 81-year-old Mrs. Adams praised Kent, he knows you don’t expect to hug it out and he instead jokes/talks to you about how Mrs. Adams is a hoarder and has 30 cats, but she’s a nice lady.

Trust me, he heard the work context of the praise.

2. Rather than recognize in front of the group, follow up by telling some of Kent’s friends/ co-workers the feedback you got on his work when he’s not around. Hearing that the boss was talking about your great work in a casual way among your co-workers is a passive, low impact way for the Kent Dunns of the world to feel good. It saves them the public humiliation (in their eyes) of praise, but the message is still delivered.

In both scenarios, the recognition is still there. The old school, blue-collar worker still hears it, but based on how it’s provided he doesn’t feel like you expect him to come in contact with his feelings.

Feelings are scary for blue-collar employees, especially those of the male variety.

The broader point for any of us thinking about recognition is simple. To maximize your approach and the subsequent results, you’ll have to customize your recognition programs for different employee segments.

Failure to consider when and how to recognize individual segments can and will be held against you in the court of employee sentiment. If you’re wondering why your managers don’t use the recognition tools you provide, it’s likely because you haven’t provided them with choices that work for the employee types they manage.

RIP Kent Dunn. I still hear your boots.

RECOGNITION ISN’T A ONE-SIZE-FITS-ALL AFFAIR.

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Kris Dunn, the chief human resources officer at Kinetix, is a Workforce contributing editor. To comment, email editors@workforce.com.

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FOR YOUR BENEFIT

Benefits Providing an Edge in the War for Young Talent

By Rita Pyrillis

I

t’s a buyer’s market for recent college graduates and that poses a recruiting challenge for employers. For many, benefits can be the key to attracting the best and the brightest young talent.

At consulting firm EY where two-thirds of employees are millennials, offering a variety of benefits that reflect their needs is a critical part of its recruiting strategy.

“We have historically hired a large number of entry-level employees, but those numbers have really grown in the past couple of years,” said Natasha Stough, Ernst & Young’s campus recruiting leader in North America. “Many millennials are in leadership roles and that’s pushed us to be extremely thoughtful around our total rewards package. It’s required us to think about our benefits, like extending our parental leave to women and men, whether you give birth or adopt. Those things are really critical to millennials.”

Generally, this age group is between 18 and 32 years old and at EY their numbers are growing rapidly. This year the consulting firm is expected to hire a whopping 9,000 new employees and interns — the majority of them millennials. At the same time employers agree that benefits are becoming more important in recruiting and retention, according to MetLife’s 15th annual “Benefit Trends” study.

More than half of employers surveyed said that benefits will grow in importance over the next three to five years. And as workforce demographics change, the kinds of benefits that employers offer will need to change as well, according to Todd Katz, executive vice president of group benefits at MetLife.

“To attract and retain top talent in this new era, especially during a time of decreasing unemployment rates, employers have an opportunity to adapt their workplaces to address the unique needs of their employees,” he said in a

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press statement announcing the recent survey.“This is especially critical when it comes to benefits.”

In fact, nearly three-fourths of employees say that having benefits customized to meet their needs is important when considering taking a new job and 72 percent say that having the ability to customize their benefits would increase their loyalty to their current employer, according to the MetLife survey. The numbers are even higher for millennials. More than three-fourths said customized benefits would increase their company loyalty compared to 67 percent of baby boomers.

Indeed, younger workers having an array of benefits choices and the flexibility to tailor them to individual needs is extremely Natasha Stough important, according to Peter Marcia, CEO of YouDecide, a voluntary benefits outsourcing firm in Duluth, Georgia.

“These folks are used to having whatever they want, whenever they want it,” he said. “They’re used to getting on the phone and buying something. They like having access to everything they need and that includes having a broad array of voluntary benefits to choose from.”

Topping that list is student loan debt programs followed by automobile, renters, and pet insurance, according to Marcia.

Employers who want to recruit recent graduates need to go beyond traditional benefits like health insurance, 401(k)s and flexible vacation schedules and offer something that resonates with younger workers. With so many graduates entering the job market saddled with student loans, interest in benefits to help them pay those debts is growing.Yet only 4 percent of companies offer such a benefit according the Society for Human Resource Management. Among those that do are Aetna, PwC and EY. EY began offering a student loan refinancing program three years ago and in the past year has beefed up its overall benefits program in part to attract younger workers. The company now offers benefits that cover infertility treatments and offers 16 weeks paid parental leave for new dads, according to Stough. More than 1,735 U.S. employees are participating in the program.

“Comp and benefits are not typically at the very top of the list for this generation,” she said. “They are much more short term in their thinking. Without a doubt flexibility is very important to them — flexibility in how they work and where they work and flexibility to meet their personal commitments. They have a lot of options and opportunities.

That’s good news for recent grads but it pushes us to work even harder to recruit them.” j u ly / au g u s t

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FOR YOUR BENEFIT

Rash of Food Allergies Prompts Education Push

Younger Workers Eye Short-Term Financial Goals

By Rita Pyrillis

By Rita Pyrillis

F

ood allergies are on the rise — particularly among children — and that poses challenges to employers who are likely to see more employees struggling to manage their symptoms in the workplace Approximately 15 million Americans have food allergies and their numbers are growing each year, according to Food Allergy Research and Education, or FARE, a national advocacy group. Food allergies among children increased about 50 percent between 1997 and 2011, according to a study by the Centers for Disease Control and Prevention.

“Employers need to make reasonable accommodations for allergy sufferers,” said Laurel Francoeur, an attorney and founder of the blog Allergy Law Project. “For example, keeping allergens out of the common areas.

The main thing is to be cognizant of the issue. If they’re having employee dinners or parties they should make sure that these events are as inclusive as possible.”

Employers also need to be aware that a food allergy may be considered a disability under the Americans With Disabilities Act of 1990, she said.

“In 2008 the ADA was amended mak- Laurel Francoeur ing it easier for food allergies to qualify for protection,” she said.“Allergies can limit major life activities, such as breathing, eating, working or going to school, as defined by the ADA.” The U.S. Department of Labor recommends that employers offer training to educate employees on food allergies, post signs in office food areas on how to spot allergic reactions, provide designated utensils, cups and plates and allow employees to carry their medication at all times, among other suggestions.

The eight foods that account for most allergic reactions are milk, eggs, peanuts, tree nuts, fish, shellfish, soy and wheat, according to FARE. Symptoms can range from hives and nausea to difficulty breathing and loss of consciousness. The only way to prevent a reaction is to avoid the problematic food — something that can be tricky in a workplace setting, according to Scott Riccio, senior vice president of education and advocacy at the national group.

He recommends that employees let their supervisors know of their food allergy and advises employers to prepare for an influx of younger workers who are grappling with this condition.

“The general understanding in the allergy community was that kids would grow out of their food allergies, but that’s changed,” he said. “Kids are growing older with those allergies so that brings a new set of challenges. Those kids will be graduating in a few years and going on to jobs, so employers should be ready.” j u ly / au g u s t

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W

hen it comes to setting financial goals, younger employees are less focused on retirement and more concerned about meeting day-to-day expenses, and that should concern employers, according to a recent study by accounting firm PwC. A growing number of millennial and Generation X employees are withdrawing money from their retirement plans, leaving them vulnerable at a time when defined benefit plans are disappearing and health care costs are soaring, according to Kent Allison, a partner at PwC. “The recurring theme is that people continue to be stressed and can’t withstand any short-term shock to their finances,” he said. “Employers tried to solve the retirement savings deficiencies by adopting auto enrollment and auto escalation features that forced people to contribute to their retirement plans, but they never asked why employees weren’t contributing in the first place. People have competing cash flow objectives so in a way, companies are exacerbating the situation.”

About one-third of millennial and Gen X employees have withdrawn money from their retirement plans and about half think it’s likely they will need to do so in the future, according to PwC’s 2017 “Financial Wellness” survey. Topping the list of financial stressors for younger workers is student loans. Among the millennials and Gen X employees with student loans, a growing number say their loans are preventing them from meeting other financial goals — 45 percent of millennials (up from 35 percent last year) and 42 percent of Gen X (up from 31 percent last year).

In addition to managing student loan debt, an increasing number of younger workers are also supporting a parent or in-law while raising children, reflecting the challenges faced by baby boomer colleagues. These financial burdens take a toll not only on overall worker well-being and productivity, but also on the company’s bottom line.

Employees who are stressed about their finances are nearly five times more likely to be distracted by their finances at work and twice as likely to spend three hours or more at work dealing with financial matters than colleagues who are not stressed about money, according to the survey.

Employers need to broaden their financial wellness efforts and focus on saving money beyond retirement, according to Allison.

“If they want people to focus on long term goals they need to help them deal with the short term,” he said. w o r k f o r c e . c o m | Workƒorce

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FOR YOUR BENEFIT

Digital Resources Help Balance Diabetes Management Diabetes is a chronic problem, and online solutions paired with other workplace strategies can have a positive and encouraging impact.

By Andie Burjek

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eb Dye wanted to make a major lifestyle change last year and lose some weight. A continuing lecturer at Purdue University, Dye had been prediabetic for several years. She had a family history of diabetes, and she’d always thought it was just a matter of time before she was a diabetic, too.

She heard about a Type 2 diabetes reversal trial at work and got an appointment with Dr. Sarah Hallberg. It was at this appointment that the doctor officially diagnosed her with Type 2 diabetes.

It didn’t help that at her previous job, she was stressed and had a lot of access to sugary foods. People would use any excuse to bring in cake, doughnuts and new recipes. “We’d celebrate anything,” said Dye, “We’d celebrate, ‘The sun’s out today!’ ” Her workplace environment made it difficult to make a diet change.

Dye isn’t alone. Some 29 million adults in the United States have diabetes, according to the Centers for Disease Control and Prevention, and it is a common and costly chronic disease in the U.S. More than 20 percent of health care Dr. Jeremy Nobel spending is for patients diagnosed with diabetes.

The workplace can play an important role in diabetes management, said Dr. Jeremy Nobel, medical director at the Northeast Business Group on Health.

Workplaces have historically relied on weight control programs and screening for diabetes management.

“Those have some value, but they’re not what they could be,” said Nobel. He suggested a more personalized approach to weight control. Digital solutions are one way to make this individualized approach easier.

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One company currently providing a personalized solution on the market is Virta Health, an online medical clinic that focuses on reversing Type 2 diabetics.

For example,Virta provides patients with tools like weight scale, blood sugar and blood lipid meters, and blood pressure monitors. Clinical experts with the telemedicine company know what’s going on from afar in Deb Dye, a Type 2 diabetic, benefited from virtual the patient’s body on a daily basis. treatment through her employer, Purdue University.

Health coaches and patients can also Dye is pictured here before (left) and after treatment. interact through texting, phone calls or video chats throughout the day. time to attend meetings or group “It’s a rare employer who doesn’t men- events and because her teaching tion diabetes as one of the top three ill- schedule was varied. She also enjoyed nesses that keeps them up at night,” said the informational videos available on Mike Payne, Virta’s head of commercial the app, which educates users on diand policy. et-related topics such as what you This is serious, considering the medi- need to eat and what kind of fats are cal costs of a diabetic are about 2.5 times important to your diet. higher than that of a nondiabetic, and Having a virtual coach is valuable to that diabetes is associated with lower her, too. While attending a business conproductivity and higher workplace ference in San Diego, she’d send pictures safety incidences. of the food she was eating to her coach.

Using a combination of telemedicine “She’d help me navigate through some of and proper clinical science can help with the challenges of being not-at-home,” diabetes reversal, prevention and man- said Dye. agement, Payne said.Virta tested both an Telemedicine is helpful but not a panain-person clinic and online clinic and cea, said Nobel. Other workplace strategies found the online version to be equally if include providing healthy food choices not more effective. and walking groups at lunch. Screening is “I think what’s going on here is helpful, but the biggest challenge is urging we’re fitting the treatment to the dis- employees to get screened through a conease,” said Payne. “Diabetes is a dis- certed, planned communication strategy. ease of choices, and they’re choices “Many people don’t want to get that are made on an hour-by-hour screened because they don’t want to get basis. With telemedicine we can put bad news,” he said. “But just let them clinical expertise in the patient’s know that if they have it, the best thing is pocket to be available whenever the to know it so that they can take steps to patient is making those choices about reverse it or treat it.” food or physical activity or stress.”

Equally important is the recognition of One of Virta’s employer clients is Pur- the emotional burden of weight control, due University, where Dye was accepted he added.There’s emotional baggage like into the diabetes reversal study. guilt, shame and isolation that can be asShe went through the onboarding sociated with any chronic disease. process and officially started the vir“The best treatment programs are the tual program in February 2016. It ap- ones that appreciate that complexity,” pealed to her because she didn’t have said Nobel. j u ly / au g u s t

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FOR YOUR BENEFIT

Benefits Beat

BENEFITS LEADERS: THE NEXT GENERATION

By Jennifer Benz

L

ike many of you reading this article, I stumbled into HR as a career.

As a journalism student who had never heard of employee benefits or HR or consulting, I was drawn to benefits because of the complexity and challenge of making sense of such meaty topics. But I soon discovered a much deeper sense of purpose in this work — and that purpose has kept me both in benefits and incredibly passionate about this industry.

Here’s why: Employee benefits touch the health and financial security of nearly all Americans and millions of people around the world.

Working in benefits is one of the few careers in which you can know you’re making a difference in what’s really important to people — almost all the time. Whether you’re working as a provider, a consultant or in an employer HR department, you’re having an impact on a lot of lives. You’re doing work that matters. The same can be said about so many other important areas of HR — training, learning and development, organizational development, to name just a few.

But how many people outside our industry know that?

Does anyone grow up wanting to be an HR pro?

I’ve been thinking about this since my company, Benz Communications, concluded our interview series of 27 benefits pros as part of celebrating our 10th anniversary last year. (You can read all the interviews on LinkedIn.) They are an inspiring group of benefits leaders at large employers and benefits providers.

When we asked, “How did you get into employee benefits,” nearly everyone we spoke with confessed they stumbled into their career in benefits, and then fell in love with the space — much like I did. Without exception, what struck us was the absolute passion and the sense of pride and purpose these benefits leaders have about their careers.

Sarah Lecuna said she “fell into” benefits. “I wanted to be in the HR function, but wasn’t sure where would be the best fit for me and I the best fit for it.When I got a job in benefits I thought it would be temporary, but I love the work, the ever-changing landscape, and the impact it has on people’s lives.” Now she’s the global benefits leader at Intuit Inc. And Lecuna was named one of Workforce’s Game Changers in 2014.

Allison Wendelberger also didn’t get into benefits by design.

“I was finishing grad school and didn’t have a clear path

in mind. Since I was a math major, I decided to take a couple of actuarial exams to make my résumé more enticing,” she recalled. She landed at HR consultancy Mercer and then spent 15 years with Aflac until she moved to her current role as business development manager for ITA Group.

“Essentially, we create programs that motivate behavior change in all the people who matter to an organization,” she explained.

Virgin Pulse President and CMO Rajiv Kumar started out as a doctor, but said, “Working in employee benefits allows me to positively impact the greatest number of lives. In clinical practice, I’d only be able to see a finite number of patients each day. Virgin Pulse, on the other hand, has touched more than 5 million lives around the world. The potential is inspiring.”

Inspiring, it is. The scope of all we touch in benefits is huge, which most people don’t realize.

“I love the fact that we make an impact at both an individual level as well as a social level. In benefits, I have a view of the difference we make not only in our employees’ lives, but also in our company culture, communities and even legislation. I find it extremely gratifying,” said Rosemary Arriada-Keiper, senior director of global benefits at Adobe.

Most people want careers that give them a sense of purpose.They want to do work that has meaning and value in the world. Employee benefits are ideal in that sense. But how do we make it less happenstance for great young people to get into the industry?

Clearly, our profession isn’t exactly front and center when children are aspiring to what they want to be when they grow up. There’s no Benefits Adviser Barbie or HR Director Lego set for our career.

But, we can all play a role in making HR a more desirable — and earlier — career aspiration. Accepting external speaking opportunities, sharing our stories and talking in the press about the great work our companies do is a start.

Finding ways to brag about your career at your kids’ school or a college career fair can’t hurt, either.

All of those efforts can help inspire the next generation of game changers.

WE CAN ALL PLAY A ROLE IN MAKING HR A MORE DESIRABLE — AND EARLIER — CAREER ASPIRATION.

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Jennifer Benz is CEO and founder of Benz Communications, a San Francisco-based employee benefits communications agency.

She was honored as one of Workforce’s Game Changers in 2013.

To comment, email editors@workforce.com.

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Legal Disabilities Offer a Challenge for Job Seekers and the Workplace All employees deserve access to tools to succeed at work.

By Mia Mancini fter spending 75 days in the hospital, 12 of which were in a coma, and then several months after that in a wheelchair, Meredith Morgan faced another daunting challenge — finding a job.“I know how hard it can be to find a job for just about anyone, but it’s extremely hard to find one with a disability,” said Morgan.

Years of physical therapy due to a traumatic brain injury forced Morgan to end her job as a brand ambassador. “Employers see a gap in my résumé where I was piecing my life together,” Morgan said, adding the right accommodations allow her to perform as well as any employee.

Failure to engage in the reasonable accommodation process is an employer’s biggest legal challenge, according to Rachael Stafford, director of the Rocky Mountain ADA Center. The Americans with Disabilities Act requires employers to provide reasonable accommodations to qualified employees with disabilities, unless doing so would pose an undue hardship.

According to Stafford, there has been little change in the total unemployment numbers of people with disabilities since the ADA’s enactment in 1990. The original intent behind the ADA was to improve employment statistics and employment opportunities for people with disabilities. Stafford suggests working with the employee on what accommodations work best rather than deciphering it alone. “A strict no pets policy in a workplace should not automatically bar a qualified individual from bringing his or her service animal,” said Stafford.

Most companies struggle with determining undue hardship, according to Shawn Toor, an attorney at Williams Kastner in Seattle. “The nature and cost of the accommodation needed, the financial resources of the employer and the structure of the employer’s operation constitute undue hardship,” said Toor.

He said the burden is higher on the employer to show they participated in the interactive process. A big mistake Toor sees employers make is inaccurately listing essential functions of jobs they hire for. “It’s important those essential functions are related to the business needs.”

Toor sees employers violate the ADA when they require employees to submit medical records unrelated to the requirements of the job. “You must prove the requested information is 18

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related to the employee’s ability to perform the core of the job,” said Toor. “Employers have to be prepared to justify why a requested accommodation was provided in certain circumstances, but not others,” said Teresa Jakubowski, a legal expert specializing in the ADA. The ADA regulations don’t always adequately address the vast array of workplace issues. Jakubowski said requests for leave are another challenge workplaces face. The analysis surrounding leave issues can become complex. According to the ADA, there is no clearly stated limit on the maximum amount of leave an individual may take. Employers need to be careful with respect to maximum caps on unpaid leave, according to Jakubowski.

Terri Rhodes, CEO of Disability Management Employer Coalition, provides focused education for absence management professionals. When it comes to HR professionals, she suggests they obtain the information necessary to determine if a particular reasonable accommodation is required.

She urges employers to have a strategy in place, such as early return to work programs for both occupational and non-occupational injury or illness, to minimize disability. This benefits the employee in a quicker recovery and the employer in reducing costs associated with an employee’s absence.

To limit potential work-related disabilities, Rhodes recommends early intervention programs like wellness and ergonomic j u ly / au g u s t

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PHOTO: STOCK IMAGE

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strategies. New technology can be successfully implemented into design conscious offices, she said.

CMD Ltd., a British manufacturer that creates design solutions for the workplace, surveyed 515 workers with disabilities to determine what disability-friendly solutions offices need. Non-adjustable desks were cited as the biggest problem at 29 percent. CMD created height adjustable workstations and accessible plug sockets to help workers with restricted movement. “Innovative technology enables desks to be usable by everyone instead of belonging to one person. This creates a more productive way of working,” said Bruce Cantrill, head of marketing and new business at CMD. Added Rhodes, “Many workplaces have structured environments with little thought as to how the employee fits.”

Rhodes said accommodating disabilities is common sense. She recommends that HR identify the stakeholders in their organizations who provide disability prevention services, such as safety, loss prevention, risk management, employee health — and those who assist in bringing employees back to work from a leave — benefits, absence, workers’ compensation — while monitoring ADA compliance.

Mark Groves, director of risk management at Employer Flexible, agrees that HR should keep in contact with the employee to determine possible restrictions.

“This absolutely should be a coordinated effort between risk and HR,” said Groves. Stakeholders should be involved in minimizing work loss and preventing disability. Rhodes said HR should work with risk management to develop integration touchpoints that assist employees who are going out on a leave (FMLA, short-term disability and workers’ compensation). Rhodes said this creates a centralized area where employees can get information about their leave.

Sharon Rosenblatt, director of communications at Accessibility Partners, said that after being diagnosed with post-traumatic stress disorder, her company allowed her to dictate her own hours and telework.“The best solution to my workplace problems due to my disability is the one that costs the least: a flexible attitude,” said Rosenblatt. Her ideal workplace is one that empowers the worker without taking the workplace for a hit. She recommends workplaces dictate work parameters and deadlines, but have flexibility with working hours and location.

“It’s proven to improve the mental health of workers and increase retention, including me.”

Mia Mancini is a former Workforce intern. To comment, email editors@workforce.com.

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Legal Legal Briefings THE LINE BLURS: DISCRIMINATION AND STEREOTYPING In Christiansen v. Omnicom Group Inc., the Court of Appeals for the 2nd Circuit reaffirmed its decisions holding that Title VII’s prohibition on sex discrimination does not reach discrimination or harassment based on sexual orientation. The 2nd Circuit, however, reversed the decision of the trial court granting the employer’s motion to dismiss with regard to Christiansen’s claim for gender stereotyping. Citing the U.S. Supreme Court decision in Price Waterhouse v. Hopkins, 490 U.S. 228 (1989), the court found that Christiansen had stated a claim for sex discrimination based on gender stereotyping.

In his complaint, Christiansen had alleged that his supervisor described him as “effeminate,” drew caricatures of him “prancing around,” and otherwise portrayed him negatively. The trial court found that the majority of Christiansen’s allegations, however, related to harassment and discrimination based on Christiansen’s sexual orientation rather than negative gender stereotyping.

The Second Circuit disagreed, finding that the comments regarding Christiansen’s presentation as “effeminate” and related conduct sufficed to state a claim for gender stereotyping. The Second Circuit acknowledged the difficulty distinguishing between activity based on a person’s sexual orientation and on gender stereotypes. The court found, however, that the distinction it had previously drawn remained viable. Christiansen v. Omnicom Group Inc., 16-748 (2nd Circuit, March 27, 2017) IMPACT: Employers are best advised to maintain a zero-tolerance policy regarding discrimination based on gender stereotyping or sexual orientation, even if the law applicable in the region does not make sexual orientation discrimination unlawful.

EMPLOYEE WRONGFULLY TERMINATED FOR ONLINE RANT Hernan Perez was a server for Pier Sixty LLC, a catering company, for 13 years. During a tense union organizing drive and following what Perez viewed as disrespectful treatment, Perez posted a message on his personal Facebook page calling his supervisor a “NASTY MOTHER F---ER” and “a LOSER,” saying “f--- his mother and his entire f---ing family,” and then concluding by urging co-workers to vote for unionization. Perez was terminated when management discovered the post. The 2nd Circuit U.S. Court of Appeals affirmed the NLRB’s decision that even though Perez’s message was dominated by vulgar attacks, the “subject matter” of the message included concerns about the workplace and treatment of employees. Since “Perez’s Facebook post explicitly protested mistreatment by management and exhorted employees to ‘Vote YES for the UNION,’ the board could reasonably determine that Perez’s outburst was not an idiosyncratic reaction to a manager’s request but part of a tense debate over managerial mistreatment in the period before the representation election.” The court cautioned that Perez’s outburst “sits at the outer bounds of protected, union-related comments.” NLRB v. Pier Sixty LLC, Case Nos. 15-1841 and 15-1962 (2nd Cir. 2017) IMPACT: While an employee’s social media post might be offensive to a manager or the employer that does not mean it is unprotected.

Mark T. Kobata and Marty Denis are partners at the law firm Barlow, Kobata and Denis, which has offices in Beverly Hills, California, and Chicago. To comment, email editors@workforce.com.

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Legal

No Such Thing as ‘Fair’ at Work Jon Hyman |

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The Practical Employer

his past school year I had the pleasure of assisting in my daughter’s fifth-grade class as a room parent.

For the uninitiated, room parent is a fancy title for a classroom aide. We assist the teachers with classroom events and facilitate communications between the homeroom teachers and the parents for volunteers, supplies, etc.

As the school year wound down and the kids approached lower-school graduation, my room parent duties expanded with a request from the teachers in regards to an endof-year party, allegedly in the planning stages by someone other than me. The request, however, was not for my party-planning assistance, but instead to send a note to all parents asking that any such off-campus, private parties be inclusive of all, and that no children be excluded, as word had spread of this “invite only” party, and some of the excluded children were hurt.

Equal treatment for all? Sounds fair, right? But is anything about the workplace fair? What does fair even mean, and, more to the point, does the law require it at work?

Nothing in the law requires the workplace to be fair. It only requires that you treat similarly situated people of different protected groups similarly.

Equality across protected classes, however, is not the same as fairness.

Yet if society expects fairness, then unfairness will cause lawsuits, and members of the same fairness-expecting society will comprise the judges and juries that will decide the legality of your terminations. As a result, some basis of fundamental fairness should ground each employment decision you make.

What does fundamental fairness in the workplace look like?

• Don’t ambush your employees. They should understand why they are being fired via prior discussions, prior performance reviews and prior discipline.

• The punishment must fit the crime. Do you really need to fire the employee who is late for work occasionally? Maybe, if he or she has been repeatedly warned. But the first time? If the punishment far exceeds the misconduct, the employee will look for a reason for the mistreatment and unfairness, such as race, sex, age or disability. Do not provide an impetus to look past the stated reason. Alternatively, a sufficiently serious offense (e.g., sexual harassment,

theft, violence) may support a termination on the spot. Otherwise, however, employees should have an ample and bona fide opportunity to correct their misbehavior.

• Have documentation to support your decision. Do you have a performance review, written warning or other contemporaneous notes in a personnel file to support your decision? If not, it’s best to wait until you do. And, no, this is not an excuse to create a paper trail after the fact. Documentation should be contemporaneous to the misconduct.

• Be consistent. Do you handle similar disciplinary problems similarly and to the same degree? If not, those that suffer the worst will ask why, and they may do it via their attorney in a lawsuit.

• To make this concept of workplace fairness even simpler, do unto your employees as you would have your employer do unto you.

If you treat your employees as you would want to be treated (or as you would want your wife, kids, parents, etc. to be treated), most employment cases would never be filed, and most that are filed would end in the employer’s favor.

Juries are comprised of many more employees than employers, and if jurors feel that the plaintiff was treated the same way the jurors would want to be treated (i.e., fairly), the jury will be much less likely to find in the employee’s favor.

As for the party-fairness issue in my daughter’s class, here was my response: “I believe that a party host should have discretion whom to invite and not invite. No one should feel obligated to invite the entire grade if they don’t want a gradewide party at their private event. To go one step further, if they don’t want my daughter to attend, and only after-the-fact invite her out of a sense of obligation, then I don’t want her there and would strongly counsel her against attending (and I think she’d agree with me).

As awesome as I know she is, I am not naive enough to think that she is on the ‘friend’ list of everyone in the 5th grade (nor is she).”

Sounds fair to me.

Nothing in the law requires the workplace to be fair. It only requires that you treat similarly situated people of different protected groups similarly.

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Jon Hyman is a partner at Meyers, Roman, Friedberg & Lewis in Cleveland. To comment, email editors@workforce.com. Follow Hyman’s blog at Workforce.com/PracticalEmployer.

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2017

Contracting

a Cure for Prescription

Drug Costs

As specialty drugs siphon employers’ benefit spend, prices of more common drugs are also climbing. Can PBMs be part of the cost cure or another pain point?

BY ANDIE BURJEK

S

pecialty drug prices were continually creeping up for the American Speech-Language-Hearing Association.

And it wasn’t just the media-grabbing drugs like the EpiPen or hepatitis C medication. “[Those are] not what worries me the most,” said Janet McNichol, HR director for ASHA, a Maryland-based professional association for speech, language and hearing scientists in the United States and internationally. “They’re expensive, but have high value.”

Researching claims throughout the year, McNichol has seen prices escalate for medications for more common ailments as well. She found a $9,027 charge for Zegerid, a compound drug that treats symptoms of gastroesophageal reflux disease and whose individual elements could be bought for $20. Similarly, she found a claim for migraine medication Treximet for $1,471, but its two components

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only cost $37 for a 90-day supply. “I feel like I’m always trying to keep up with drug companies,” said McNichol.

She’s not the only HR leader dealing with a drastic spike in prescription drug prices. Employers have been struggling with this for years. Some experts argue that employers are at a crucial point in their relationship with pharmacy benefit managers, which act as middlemen between employers, pharmacies and drug manufacturers and whose primary function is to keep pharmacy benefit costs low.

Specialty drugs are taking up an increasing percentage of employers’ total drug spend, and employers want to take action to change this trend. That involves shifting their relationship with their PBM, which makes money through service fees, negotiating with pharmacies and manufacturers, and operating mail-order pharmacies.

Other than the drug manufacturer, PBMs make the largest profit in the supply chain of prescription drugs, more so than wholesalers or distributors. Yet PBMs continue to consolidate, as the top three — Express Scripts, Optum Rx Inc. and CVS Health — control 78 percent of the industry.

The latest deal saw Express Scripts acquire Tampa, Florida-based MyMatrixx, a provider of pharmacy benefits solutions in the workers’ compensation space, in May 2017.

PBMs do a lot to help employers manage pharmacy costs, said Brian Marcotte, CEO of the National Business Group on Health. They perform prior authorizations on medications to ensure medical necessity; manage quality limits to ensure proper dosage; and make sure people take generics first before moving up to expensive alternatives — in medical terms, step therapy.

Still, pharmaceutical prices are a real concern from the employer perspective, Marcotte added, as specialty drugs are the No. 1 driver for most large employers’ total medical spend, even though it only affects 2 percent of the employee population.

A Concentrated Industry The top three PBMs — Express Scripts, CVS Health and Optum Rx — control roughly 78 percent of the market and cover 180 million lives. But there are about 50 PBMs nationally that manage prescription drug expenditures across the United States, according to Adam J. Fein, president of Pembroke Consulting Inc. and CEO of Drug Channels Institute.

He added that “the top seven PBMs handle more than 95 percent of U.S. retail, mail, long-term care and specialty equivalent prescription claims. This concentration helps plan sponsors and payers, who can maximize their negotiating ability by combining their prescription volume within a few PBMs.” Consolidation and market control isn’t unique to PBMs. Health insurers, benefits consultants, pharmacies and hospital systems are consolidating as well, said Todd Bisping, global benefits manager at Caterpillar Inc. Companies say they’re doing it for integrated care and efficiency, Bisping said, but consolidation doesn’t always result in a better deal for consumers, as competition can disappear.

—Andie Burjek

High Deductibles? Reality Check One ongoing issue for employers is a lack of transparency that Marcotte said extends through the entire supply chain — the manufacturer, distributor, PBM, retail pharmacy and employer. “It’s very complex, it lacks transpar-

PRESCRIPTION DRUG SPENDING GROWTH 2005-14

15 12

Prescription drug spending for people who have insurance coverage through their employer or a family member’s employer generally follows the national trend. In the mid-2000s, spending began to slow, but it increased rapidly both nationally and for employer-sponsored plans in 2014.

9 6 3 0 -3 24

National Retail Drug Spending Employer Coverage Retail Drug Spending

13.0%

11.4%

8.2%

5.4% 4.4%

4.2%

3.1%

3.8%

3.6%

4.4%

4.1%

2.5% 1.5% -.07%

2005

2006

2007

2008

2009

0.8%

2010

1.5%

2.1%

1.6% -.06%

2011

0.4%

2012

2013

2014

Source: Kaiser Family Foundation analysis of Truven Health Analytics MarketScan Commerical Claims and Encounters Database, 2004-14 & National Health Expenditure historical data.

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ency and it doesn’t match well with today’s high-deductible plan environment,” he said, adding that most employers now offer high-deductible health plans.

He cited 2016’s EpiPen backlash. EpiPen is an injection containing epinephrine and is used to treat severe allergic reactions. “In a co-pay world, where an employee or a consumer would pay $23 for, let’s say, an EpiPen, it never would have gotten the attention it received,” he said.“But because of the $600 list price people were paying when they walked into a pharmacy, all of a sudden there was a lot of outcry and attention focused on the high price of drugs.”

‘ONE OF OUR GOALS AS A PBM IS TO EMPOWER MEMBERS TO BE A PART OF THE PURCHASING DECISION.’ —MATT MERTEL, SENIOR VICE PRESIDENT OF STRATEGIC INNOVATION, MAGELLAN R x One concern with HDHPs is that companies don’t want employees paying these high costs, he said.Yet it did bring attention to the growing problem of price escalation of drugs. “Now you have a spotlight on it because of how HDHPs work,” he noted.

Transparency has been invaluable to employees using HDHPs, said American Speech-Language-Hearing Associations’ McNichol. Their PBM, Magellan Rx, partnered with drug-price transparency tool GoodRx, which compares prices at different pharmacies. Magellan offers ASHA, a company of 285 employees, a lot of flexibility in its contract, McNichol added. She meets monthly with a pharmacist to modify the contract to add or exclude certain drugs.

In order to improve the quality of care and reduce cost, it’s important to be collaborative, thoughtful and flexible when designing benefit programs, said Matt Mertel, senior vice president of strategic innovation at Magellan Rx, in an email interview.“There’s no one-size-fits-all solution.”

“One of our goals as a PBM is to empower members to be a part of the purchasing decision and to play a direct role in the decision-making process,” Mertel said.

Aside from working strategically with Magellan, McNichol also works with ASHA’s employees. “I try to inform our staff about some of these issues and encourage them to do what they can to avoid overpaying for prescription drugs,” she said.

GoodRx is only available to ASHA employees with an HDHP; those not in the HDHP plan will only see their co-payments rather than the list price. But McNichol believes it is important to encourage this latter group, which is not motivated by price because all they see is the co-payj u ly / au g u s t

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Practices Benefiting Drug Consumers Janet McNichol, HR director for the American Speech-Language-Hearing Association, encourages employees to compare drug prices using the GoodRX tool. But that practice isn’t the only way to be a smart consumer.

McNichol highlights specific practices that benefit consumers, such as looking for generics and watching out for drug combining. She also suggests that consumers ask five valuable questions: • Do I really need this test or procedure?

• Are there simpler, safer options?

• What are the risks?

• What happens if I don’t do anything?

• How much does it cost?

Asking the right questions can be valuable for employees with high-deductible health plans as well as those without.

—Andie Burjek

ment, to be proactive about drug prices.

“I’m in the process of rolling out a benefits builder game that will help people see what health care costs and how we’re all in it together,” said McNichol. “Hopefully, that will increase people’s ability to see the connection even if it isn’t as direct.”

Taking a More Active Role On a larger scale, employers know they can’t really do anything about the cost of drugs unless the government steps in, said Cheryl Larson, vice president of the Midwest Business Group on Health. But what they can do is review the performance of their PBM and work off that to manage costs.

Employers are frustrated with the current system, she added. But “a lot of large employers don’t want to disrupt the environment they’re in,” she said. “They don’t want disruption for their employees and family members.”

Employers are responsible for finding the best benefits they can to provide high quality cost options for employees, she said. Included is the PBM contract, for which many employers is vague yet ironclad.

“It’s all about the contract,” she said. “You need to demand transparency, and you need to negotiate financial and nonfinancial contracting terms for both direct and indirect revenues for the PBMs administering your plan.”

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M

E C H A N GE

GA

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Game Changers 2017

PHOTO BY MARGO MORITZ

THIS YEAR’S COLLECTION OF WORKFORCE GAME CHANGERS IS A VARIED BUNCH. We’re shining the spotlight on people in small companies and big corporations, in local governments and media companies, in recruiting-centric roles and benefits-focused roles, and more.

What they complete daily has accumulated over time so as to construct a résumé of bigger and truly impressive accomplishments.

At Workforce.com/GC2017, we’ve created a visual compilation for a number of these impressive people.

Their visions and how they came to make that difference are noteworthy. These Game FROM LEFT: GAME CHANGERS Changers’ actions and strategies have had an K ALEY GAGNON, ASSISTANT impact on people of all walks of life. Sha’Carla VICE PRESIDENT OF Petty of East Mississippi Community College INTEGRATED PRODUCT does meaningful work for the underemployed STRATEGY, AT&T; BRIAN “to help them achieve their American dream.”

MONAHAN, CO-FOUNDER, GOODHIRE LLC; AND KELLIE AT&T’s Kaley Gagnon seeks to bring a diverse GLASER, PROGRAM MANAGER, pool of talent into the telecommunications LAWRENCE LIVERMORE giant. Kristin Hamblock, who works as a NATIONAL LABORATORY AT benefits manager for a large Midwestern mental YERBA BUENA CENTER FOR health treatment center Rosecrance, also is THE ARTS IN SAN FRANCISCO. passionate about improving the well-being of the nonprofit’s own employees.

You’ll also notice that we’ve presented the Game Changers by region. Whether these Game Changers are training young adults in the South, developing unique retention programs in the West, overhauling a performance management system overseas or striving for something else entirely, they’re making the most of their days to reach their goals the world over. We’re honored to call these 25 people our 2017 Game Changers. Congratulations to all of them! —Andie Burjek

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• WEST COAST

KELLIE GLASER BRIAN MONAHAN

Co-founder and chief idea guy, GoodHire LLC, Redwood City, California Brian Monahan is no stranger to entrepreneurship.

At 19, he and his brother started his first company, Inflection Inc., the parent firm of PeopleSmart, a search engine designed to track down people anywhere in the world. It wasn’t long after the product’s launch that employers began using it to search for individuals’ court records as part of their background screening process.

Monahan, 29, sensed another business opportunity — but he didn’t want to create just another background check company. In 2013, Monahan launched GoodHire, a background check firm that empowers candidates to see their own information so they can verify and provide additional context to the information employers see. To Monahan, allowing candidates access to this information through its True Me platform allows them to provide additional context to items that may otherwise deter their candidacy.

Humanizing background checks in this manner isn’t just beneficial to the candidate, however. By including candidates in the screening process, Monahan believes employers benefit by maintaining larger candidate pools from which to recruit talent.

GoodHire has built a devoted following of 35,000 companies, with True Me earning a nearly 96 percent satisfaction rating among users. —Frank Kalman

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Program manager, Lawrence Livermore National Laboratory, Livermore, California Kellie Glaser has made a significant impact on engaging Lawrence Livermore National Laboratory employees as program manager.

Glaser, 26, dedicated the past two years to improving the work-life balance of more than 6,000 employees. Her innovative programs include on-site cooking and language classes, wellness initiatives such as a holiday maintain/no-gain program and the community-supported agriculture program.

She coordinates more than 30 on-site fitness classes each week for employees. “Her commitment and dedication to creating valuable employee programs is evident in all that she does,” said Renée Breyer, deputy associate director at LLNL, in her recommendation letter.

Glaser utilized a variety of community resources and her own health insurance providers to develop a monthly program for parents and employees caring for aging relatives. “Her vivacious personality and passion for … employee engagement … have contributed to helping retain our talented workforce,” said Melissa Sale, general manager at LLNL, in her nomination letter.

Glaser partnered with the summer scholar program to coordinate a barbecue event for more than 600 visiting summer scholars.

“Kellie is exemplary of a true game changer,” said Breyer.

“She is always looking for ways to measure the success of employee engagement and improve upon the programs she delivers.” —Mia Mancini j u ly / au g u s t

2017

WEST COAST • BRYNNE KENNEDY

CEO and founder, MOVE Guides, San Francisco When it comes to solving business problems, there’s no greater motivator than personal struggle.

After relocating for work several times — and dealing with many of the same challenges each and every time — in 2012 Brynne Kennedy developed a technology-based data model and software platform to move talent from one location to another easily. Once a startup, the company now has more than 130 employees working from offices around the world.

Kennedy, 35, said it’s not surprising that companies are being forced to rethink their traditional ideas on sourcing and retaining talent. MOVE Guides was built on the idea that moving valuable talent around the globe is more than just a relocation tactic. Bringing the right people to the right place at the right time is part of an organizational talent management strategy.

“This thinking has led us to deliver an average cost savings of over 20 percent to our customers, eliminating all of the complexity and hidden fees companies have complained about for years.”

—Kellye Whitney

KALEY GAGNON

Assistant vice president of integrated product strategy, AT&T Inc., Palo Alto, California With a decade of experience in highvisibility roles, Kaley Gagnon plays an integral role in AT&T’s success. As associate vice president of staffing, Gagnon attracts highly skilled, diverse talent in a competitive environment.

She leads a team responsible for talentacquisition strategy for college hiring programs and on-campus activities. “This perfectly matches her longtime passion for education,” said Scott S. Smith, senior vice president of human resources operations, in his recommendation letter.

Gagnon, 33, also works to develop deeper relationships with minority-serving institutions. Under her leadership, more than 50 percent of internship program participants in 2016 were women and more than 50 percent were people of color. She uses diversity to build teamwork, which sparks innovation and drives success.

She maintains strategic relationships and simplifies the communication channel as manager of AT&T’s Client Executive university program. She has helped connect more at-risk high school students in AT&T’s Aspire program with potential universities. She addresses millennials’ core values by highlighting AT&T’s diversity and inclusive culture, limitless development avenues and community support opportunities.

“I am proud to recommend Kaley Gagnon for a Game Changer,” Smith said. “She is an exemplary achiever, leader and strong role model for women across many disciplines.”

—Mia Mancini j u ly / au g u s t

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KATIE TRAVIGLIA

Director of human resources, New American Funding, Tustin, California There’s a reason why some leaders earn accolades and some don’t. Very often those leaders, those awardwinning organizational members, stand out in some way. It could be that leader has a trait that brings about something special by way of results in their department, their company or even in their industry.

It could be the leader heads up an employee referral bonus program that contributes to a 70 percent retention rate for new hires. Or, perhaps that leader — we’re talking about Katie Traviglia, director of human resources for New American Funding — designed a high impact managerial survey.

Data from that survey shapes leadership development programs that promote team building and advanced-level skills in mortgages, compliance and regulatory matters.

Or, it could be something else. Those kinds of leaders, special leaders like Traviglia, 34, often earn their particular spotlight because they are generous in sharing that spotlight with others.

“It’s not any one person who’s a game changer,” she said. “The whole company is game changing. We’re a group of amazing individuals who all work together … in an innovative organization led by amazing leaders. I’m the lucky person who gets to lead the human resources department.” —Kellye Whitney w o r k f o r c e . c o m | Workƒorce

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• MIDWEST PHILIPP SCHRAMM

CFO, VP of HR and IT, Webasto Roof Systems Americas, Rochester Hills, Michigan

JEFF PIETA

Co-founder, Shiftgig Inc., Chicago When first meeting Jeff Pieta through a mentorship program seven years ago, Anthony Bonaguro, a partner at Grant Thornton LLP, saw that Pieta was an innovator. Pieta is dedicated to the development of people through technology, Bonaguro said, and Pieta achieved that with Shiftgig.

“He’s a passionate disrupter, never satisfied with the status quo and always looking for a better way to achieve the right answer through change,” Bonaguro wrote in the nomination for Pieta.

Shiftgig began as a social network for job seekers, but two years in, Pieta, 34, aided the company in shifting that model. He helped move the business to be an on-demand marketplace that connects businesses with short-term workers, said Tricia Cagua, director of marketing at Shiftgig.

This decision and Pieta’s other contributions have been instrumental to the company’s success, Cagua said. Pieta built a new sales and operations team, led geographic expansions and hired regional general managers, helping the company double in size in the past year and acquiring a logistics platform, BookedOut Inc.

—Lauren Dixon 30

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Philipp Schramm made it his mission to lead Webasto Roof Systems to a financial turnaround.

Schramm, 37, is an analytically driven realist and compassionate leader. As chief financial officer and vice president of human resources and IT, he motivates more than 2,000 employees but admits he wasn’t born a leader.

“I truly believe we are shaped by the environment we were raised in and live in every day. We learn from everyone who has impacted us,” Schramm said.

This mindset led him to take action when he heard Webasto was projecting a $63 million loss in 2014.

“I’m a glass half full kind of person. The bad experiences provide the deepest insights. I help make change happen by trusting in the people around me,” said Schramm.

He knew that the link to organizational success is corporate culture and employee engagement. He used his leadership role and human resources responsibility to resuscitate Webasto’s failing corporate culture.

“I’d rather be part of a trailblazing team than of one without drive. If you’re not willing to develop yourself, you will stop improving, and if you stop improving, you will lose,” said Schramm. He implemented new internal communication strategies and practical tools guided in “corporate listening.” Schramm knows listening leads to action, but can only be facilitated in a trusting environment.

He utilized opportunities for employees to be heard in fairness committees and skip-level meetings — sessions where upper-level management bypasses midlevel management to talk directly to nonmanagerial employees.

“I’m deeply energized by caring for and fighting to help others shape their destinies in a positive way,” said Schramm. Listen Like a Leader communication training was implemented for all employees from the shop floor to the executive suite. “Hundreds of colleagues have taken the course and often describe it as life-changing in every aspect of their lives,” said Schramm.

Today, the once-ranked “worst ever seen” corporate culture by McKinsey & Co.’s Organizational Health Index has returned to profitability. “Schramm is the visionary behind our forward-looking corporate strategy which has fueled Webasto’s comeback and ignited a cultural shift,” said André Schoenekaes, president and chief executive officer of Webasto, in his recommendation letter.

“A strategy provides you with a plan to track progress. By establishing SMART goals, you can motivate the broader population of individuals,” said Schramm.

Now the culture has ranked in its second quartile in just under 15 months. These changes indicate a transformational workplace change.

“Schramm’s humility, humor, authenticity and consistency is now written in our DNA,” said Schoenekaes. “We’ve changed from a disengaged organization to a culture that is caring and engaged in a future together.” —Mia Mancini j u ly / au g u s t

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MIDWEST • KRISTIN HAMBLOCK

Benefits and payroll manager, Rosecrance Health Network, Rockford, Illinois For a century, nonprofit Rosecrance Health Network has been providing addiction and mental health treatment to people throughout the Midwest. Kristin Hamblock, meanwhile, has been committed to addressing and impacting the health and wellness of Rosecrance’s employees since 2010.

She entered the company, which operates currently in Illinois, Wisconsin and Iowa, to find a bare-bones wellness program, something that only took into account self-reported tobacco use.

“We wanted to take a more global approach to employees managing their health,” said Hamblock, 31. The project to diversify the wellness program was near and dear to her, she said, because it was one of the first ones she’d worked on at the company. It’s been a source of dedication for her.

Since its inception, the wellness program has expanded. It’s won several awards from Rosecrance’s wellness vendor, Interactive Health.

A Rosecrance employee committee drives participation throughout the year, and the company has seen health costs flatten out rather than rise, said Hamblock. Notably, last year the staff donated 100 units of blood in honor of Rosecrance’s 100th anniversary, she added.

Her passion for her people’s health and well-being is evident. HR can be hard to get behind if you don’t believe in the philosophy of the company, but Hamblock said she is proud of Rosecrance’s work in the community and of the relationships she’s created with her people.

“I like helping people and making connections, and [HR] is a really unique job where you get to network with everybody,” she said. People contact her about the good and the bad, and she thrives on having that relationship with them where they feel comfortable talking to her about anything. “It makes everything much easier for the staff and makes them feel at ease,” she said.

Even as the organization grows, she’s dedicated to trying to get to know every employee and letting them know that they have an HR contact who really cares. —Andie Burjek j u ly / au g u s t

2017

DAVID ZIEBLER

HR associate, organizational development specialist, Southern Illinois University School of Medicine, Springfield, Illinois As a certified organizational development specialist, David Ziebler works to enhance the onboarding and assimilation of team members at Southern Illinois University School of Medicine.

Ziebler has been credited with kick-starting and implementing an organizational development curriculum available to staff and faculty across the entire university.

After four years at the university, Ziebler, 35, has worked on an innovative 10-month leadership development program for health care administrators within the organization, a new employee orientation program and other advanced initiatives that work toward organizational development and culture.

As a result of Ziebler’s drive and desire to exceed expectations, his efforts to expand organizational culture and development have incorporated leadership. He has attained several accreditations, including designated master trainer, consulting and coaching certifications, and certified emotional intelligence assessor.

SIU’s School of Medicine has garnered new coaching for managers and leaders, as well as matrixed committees for facilitating development of the organizationwide employee onboarding system.

As one of Ziebler’s colleagues put it, the strides that their office has made in the organizational development arena would not have occurred if it weren’t for his approach and passion for continuous improvement.

—Camaron Santos w o r k f o r c e . c o m | Workƒorce

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• MIDWEST JESSICA WATTS

Vice president of sales, Jellyvision Inc., Chicago

JAY FORTUNA

President and chief learning officer, JADO Solutions, Chicago When Jay Fortuna stepped into his role as director of training and development at The Horton Group, he didn’t just carry on with business as usual. Fortuna, 32, wanted to be transformative. No stranger to a challenge many insurance companies face, Horton Group dealt with difficulties attracting and developing new insurance agents and brokers. Without an ability to effectively develop talent organically, keeping the privately held brokerage independent would be nearly impossible.

In response to this reality, Fortuna got to work on creating a road map, so to speak. In developing the Journey to Validation program, Fortuna laid out everything that must be accomplished by new sales executives in their first three years of employment to ensure long-term success. The journey takes a blended learning approach and is made up of four stages to shape Horton’s new employees from Day One through their validation with company.

Although Fortuna is on a new path at JADO Solutions, he firmly established a learning culture at Horton. And to think Fortuna rolled out the fully polished program in his first six months with the organization. —Bravetta Hassell

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Jessica Watts is all about growth — personally as well as professionally. And her company, Jellyvision, is the beneficiary of her attitudes about growing and nurturing her team.

In 2015, Watts joined Jellyvision, an interactive software company whose platform, Alex, helps employees at companies make decisions about their benefits and wellness, as a senior account executive. She was immediately drawn to sales and interested in impacting clients’ lives in a meaningful way.

After helping more than 60 companies eliminate confusion and hit enrollment goals in less than a year, she was promoted to director of business development and rapidly grew her new sales team from four to 24 people. As her team expanded, she exceeded goals and also maintained the company culture.

“The insurance industry is complex, so I like that I get to help real people solve real problems with best-in-class solutions,” said Watts, 28, an Iowa State University graduate who moved to Chicago shortly after graduation. “We try to make it easy and speak the average person’s language instead of bombarding them with insurance lingo, and they really appreciate it.”

Watts again was promoted, this time to vice president of sales, in February 2017, which put her in charge of all new business growth for a team of 52 sales representatives. Even with the pressure of a new position, Watts hasn’t shied away from the challenge of making 2017 the year Alex helps more people than ever.

Watts credits her business development team for providing a work environment where she in turn also learns from them.

“A standout moment for me in my years here was building and training my business development team,” Watts said. “Every day here we’re having new interactions and solving problems, and it was a growing experience for all of us.”

Watts places an emphasis on team learning and engagement. She implemented training programs, researched and instituted a tech stack — a combination of software products and programming languages used to create a web or mobile application — and created a department culture that’s competitive yet helpful. She started holding role-playing sessions to make new hires more comfortable on the phone and created the Business Development Rep Slam channel in Slack, where sales reps share their successes and get likes and shout-outs in return, which created a positive and transparent work environment for her team.

“If you surround yourself with like-minded, passionate, intelligent people, work becomes easier. If you can find a company that supports your productivity and creativity and puts you in a desk next to someone who inspires you, you’re at the right company,” Watts said. —Camaron Santos j u ly / au g u s t

2017

SOUTH •

SHA’CARLA PETTY

Program director, East Mississippi Community College, Mayhew, Mississippi

JOHN PALMER

Senior vice president, chief learning officer, AT&T Inc., Dallas John Palmer was a longtime AT&T employee who became the company’s first chief learning officer in 2016 as CEO Randall Stephenson laid out plans to digitize a business that was entrenched in a legacy as a telephone company.

Palmer, 39, started with the company in the late 1990s managing call centers, and now focuses on learning, collaboration between departments and implementation of the 238,000-employee company’s reskilling to achieve Stephenson’s vision.

Palmer’s team achieves this through AT&T University, which partners with Georgia Tech, University of Notre Dame, University of Oklahoma and for-profit education organization Udacity to offer employees specialized technical training.

Palmer’s passion for learning extends to his board membership with the Texas Rangers Association Foundation, where he helps ensure that children of state lawenforcement officers have funding to pursue higher education. The married father of three is also a mentoring lead for AT&T’s largest employee resource group, Women of AT&T.

—Bravetta Hassell j u ly / au g u s t

2017

Sha’Carla Petty is passionate about improving her community and her team. Colleagues describe her as a compassionate, innovative and humble person dedicated to helping people find meaningful work in her community. The programs she’s implemented show she knows how to turn her passion into action.

As program director of the Supplemental Nutrition Assistance Program, Petty, 35, works above and beyond the call of duty to help co-workers and program participants get what they need to succeed, wrote Yulanda Haddix, youth program coordinator at East Mississippi Community College, in her nomination letter.

SNAP, which aids recipients receiving state assistance, also counsels participants to find employment. Some people receive employability skills training; some are eligible to enter education and training and receive subsidized employment. Petty has bigger ideas beyond these education and training benefits, though.

“I am in the process of minimizing or eliminating the transportation barrier that many may have in attending classes or their jobs,” said Petty. Along with the state’s workforce specialist, she’s working to provide low-cost transportation options for participants in rural areas.

Petty also reaches out with businesses in a variety of industries — retail, manufacturing, transportation, government and health care — for the Counseling to Career program, which connects community college students to paid internships at local companies.

The programs Petty and her colleagues implement aid people in receiving assistance with training, obtaining their GED and finding employment. Helping these unemployed or underemployed individuals is one reason Petty loves her job and what she does in HR. “I enjoy meeting people where they are and helping them to get to an end goal that will transform their life,” she said. “I am most honored that I am able to serve people and help them achieve their American dream.” —Andie Burjek w o r k f o r c e . c o m | Workƒorce

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• SOUTH AMY KLOSE

Director of HR and compliance, Undisclosed, Plantation, Florida After first starting at the city of Miami in 2012 as the equal opportunity and diversity programs administrator, Amy Klose immediately began bringing forth new ideas by way of diversity, training and customer service.

She was promoted to director of human resources in 2014 when her innovation in employee development and her natural ability to bring unity to a group was recognized as a critical asset to the organization.

When not spending time outdoors with her family, Klose enjoyed the challenges and complex duties of her job working within a city government.

“One thing’s for sure; we never get bored,” said Klose, 36, who is moving to a new career at an undisclosed organization. “It’s challenging navigating the regulations of human resources along with different and sometimes conflicting personalities.”

Her main priority every morning is making sure she is doing all she can to create a work environment that employees don’t dread coming to.

“Work is called work for a reason,” she said. “I never want it to be my team’s source of misery, though.”

As director of HR, Klose was quick to approach old problems with new eyes, and was never one to shy away from a challenge. Among her accomplishments, Klose implemented a secret shopper program that measured phone and email customer service in order to drive impeccable service delivery within their organizational culture. She also played a pivotal role in the introduction of new scheduling for employees, which has led to higher morale throughout the organization and other departments starting to follow her lead.

In just under three years on the job, Klose developed customer service training programs like Embracing Emotional Intelligence in Serving Our Customers, as well as offsite training opportunities, conferences for professional development, and learning libraries and resources. She has also led cooperative action with the Department of Justice for her organization and has lead multiple contract negotiations with employees.

Being an attorney and a member of the Florida bar, there were even more regulations Klose had to follow within city government. That didn’t stop her from creating a better work environment for her organization. Klose believes you can make decisions based on your moral code, whether people like it or not, and still create effective, positive change.

“I came into this position and was head of a department of people who all had more experience than me, so I had to figure out what kind of manager I wanted to be,” she said. “Having an observational and willing attitude, I decided to just be myself and work with my greatest asset: my supportive and helpful department.”

—Camaron Santos 34

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DAVID HOLDEN

Director of HR technology, benefits and administration, Crowley Maritime, Jacksonville, Florida Being tasked with heading HR technology, benefits or administration for a company of 5,000 people would be a full-time job for most anybody.

Apparently David Holden isn’t just anybody, though. Holden, 39, is responsible for all three disciplines — HR tech, benefits and employee programs — as well as compensation.

His estimable workload hasn’t gone unnoticed, either. Holden and his team have been recognized for a number of awards both regionally and nationally, including the National Best and Brightest Award in Wellness in 2016.

Holden has implemented onsite virtual health kiosks — think telemedicine — a “live well” employee well-being program and he has placed a heavy emphasis on financial wellness for his employees.

With a push for employee advocacy, Holden is adding something else to his already full plate: challenging the status quo.

—Rick Bell j u ly / au g u s t

2017

SOUTH • JONATHAN DEGRAFF

Senior HR partner, IBM Corp., Austin, Texas Jonathan DeGraff is a model for transformation in the HR function, wrote Nicholas Campagna, regional HR manager at IBM, in his award nomination.

DeGraff’s accomplishments at IBM have been large and varied, including leading a successful employee engagement program, adopting social technologies to advance business, leading an executive shadow program and recruiting at Cornell University. A particularly notable HR intern program he led saw a record 86 percent job offer acceptance rate.

“Jonathan continues to have a significant impact on our company and our industry, and his innovations in workforce management make him a true game changer,” Campagna wrote of DeGraff, 34.

Laura Casale, program manager for IBM’s Global General Manager and HR Leadership Development Programs, echoed those sentiments.

“Everything Jonathan does at IBM is on a large scale and makes a great impact,” she wrote. —Lauren Dixon

ANQUILLA HENDERSON

HR consultant III, Fulton County Government, Georgia In her short time in Fulton County (Ga.) Government’s department of human resources management, Anquilla Henderson has developed a reputation as a bold and progressive HR professional.

While with Fulton County Superior Court, Henderson, 35, facilitated training for managers and supervisors on attendance tracking and reporting, as well as other HR practices. She wrote the court’s FMLA notification policy and researched and recommended an employee recognition program. Colleagues consider her an out-of-the-box thinker, a self-starter and a person who gets the job done.

Her knack for process improvement distinguishes her abilities, as she is able to quickly assess and understand a situation, then develop and implement an action plan to meet her objectives.

—Bravetta Hassell j u ly / au g u s t

2017

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• EAST COAST AGNES CHOLEWA

Associate director strategic capital, D.C. Department of Human Resources, Washington, D.C.

KERI VADALA

Senior manager of global talent networks, Kronos Inc., Chelmsford, Massachusetts Throughout Keri Vadala’s seven-year tenure at Kronos, her influence has been palpable.

After just two years, she launched Kronos’ first-ever summer internship program and TED (Technology, Education and Development) program, all while performing her full-time job as talent acquisition coordinator.

Two promotions later, Vadala, 35, now is senior manager of global talent networks, and the internship program grew to 100 interns in 10 locations and three countries this year alone, serving more than 500 students in all.

“Keri has not only had a positive impact on Kronos, but she has had a positive impact on many, many lives,” Kristen Brown, VP of global talent acquisition at Kronos wrote in her nomination for Vadala.

She added that Vadala inspires students to achieve what they aim for and helps them any way she can.

“It is a true pleasure to work with Keri,” said Kerry Willard Bray, assistant director of cooperative education at the University of Massachusetts Lowell, a school Kronos partners with.

From the Lowell campus alone, Vadala brought 52 students to Kronos through the Lowell co-op program, and the grooming of student talent led to multiple full-time hires after the students graduated.

“This is a testament to the experience that Keri molds for students, as well as the overall workplace culture and opportunities at the company,” Willard Bray wrote. —Lauren Dixon

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Agnes Cholewa’s love of data began at an early age. “Math was my comfort as a child because English is my third language,” said Cholewa. As associate director of strategic capital at D.C. Department of Human Resources, Cholewa, 34, helps others see the significance of using data to measure results.

Cholewa has been creating strategic process improvement by utilizing 21st century practices since 2012.

“Agnes is an exemplary, compassionate, dedicated and devoted leader,” said Ventris Gibson, director at DCHR, in the Game Changers application reference letter. “Her consistent high performance and extraordinary achievements resulted in the development and delivery of citywide innovative HR programs.”

While data trends are always changing, Cholewa has improved Washington’s government with new technologies. Her partnership with the district’s chief technology officer led to the creation of dashboards. Users can view data directly on their mobile devices.

Without her innovative practices and project management skillset, HR couldn’t provide the significant data that drives decision-making to the mayor and other senior leaders. “She is becoming a proven leader in D.C. government business intelligence,” said Gwen Thomas, consultant at Gwen Thomas PR, in her nomination letter.

Cholewa creates an innovative approach to managing the crucial touch points surrounding Washington’s human resources. It allows them to recruit “the best and the brightest” talent to local government. This citywide automated exit interview process impacts 80 different district agencies. Her predictive models throughout DCHR provide internal data.

This transforms people’s approach to improving leadership and employee competencies.

Cholewa leads four different subordinate organizational units in HR: performance management; records management; customer care and credentialing; and human capital planning. She finds time outside her heavy workload to mentor and coach members of her team.

“Her transformational style of leadership touches the heads, hands and hearts of her team,” said Gibson. This led Gibson to appoint her as the executive change agent over the district’s realignment of the decentralized HR organizations.

“It’s difficult to be in HR without caring for people,” said Cholewa.

Cholewa emphasizes quality and commitment to sustain a welcoming workplace culture. “I speak with my employees daily. I make sure that they are doing well professionally and personally because it is almost impossible to separate the two,” said Cholewa. Little things, like candy in her office, help create a welcoming environment Those who work with Cholewa attest to her strong ability to influence others, rally a team and meet outcomes. Gibson said she can rely on Cholewa for her “forward thinking, analytical and customer-centric mindset.” —Mia Mancini j u ly / au g u s t

2017

EAST COAST •

CHRISTOPHER WILLIS

S. CAMERON COX

Managing director of talent and culture, Atlantic Media, Washington, D.C. It’s not easy being a media company these days.

It’s even more difficult, one might argue, to be a media company experiencing seismic transformational change. So is the case of Atlantic Media, publisher of the 159-year-old Atlantic magazine. S. Cameron Cox isn’t an editor or writer at any of the company’s esteemed publications, but ask any of his colleagues and it’s easy to see how his work has been equally as instrumental in the company’s recent growth and success.

Cox, 38, is managing director of talent and culture at Atlantic Media, and in the seven years he’s been with the firm, the company has grown twofold, from about a 400-person operation with a primary presence in Washington, D.C., to an 800-person operation with offices spread across the globe. In that span, Atlantic Media has launched new publications, expanded its headcount and reorganized its teams globally, all of which have required an astute leader on the talent and culture side to manage the change.

Even before taking on his current role in June 2016, colleagues say Cox has been a sought-after adviser to new hires and seasoned executives alike on matters relating to anything from the intricacies of people management to the technical minutiae of implementing a new benefits administration software platform and building a global recruiting function.

—Frank Kalman j u ly / au g u s t

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Director of human resources and marketing, SDI Gas LLC, Mount Morris, Pennsylvania Christopher Willis is in the business of building things. His construction company, SDI Gas, serves such complex industries as energy, geotechnical construction, waterway development and civil engineering on a global scale.

Arguably his most profound construction project started in 2009 when, along with his supervisor, he began building a world-class HR function that touched on policy, strategy and development initiatives.

Seven years and about 1,500 additional employees later, Willis established the structural soundness of his HR department by cementing processes and procedures.

Willis, 34, has played a key role in SDI’s acquisitions and startup of new companies. He helped build the company’s HR and technology functions in Brazil, making sure that new employees’ culture was respected and allowed to flourish.

Unlike an SDI Gas project, Willis’ work on building HR is a project that he’ll gladly never complete. —Rick Bell

HEIDI GERHARD

Director of talent acquisition and university relations, BASF Corp., Florham Park, New Jersey After only one year of being on the BASF team, Heidi Gerhard made such an impact that her colleagues nominated her as a Game Changer.

“She is a born strategist with a great capacity for translating an organization’s good intentions into tangible actions that deliver real results,” wrote Patricia Rossman, chief diversity officer at BASF. The company is in a multiyear process of transforming from a traditional chemical company to one known for its talent brand. Gerhard, 35, is making major efforts to create that reality. Gerhard changed job postings to use more neutral language and she mandated interview panels and that job candidates be composed of diverse groups of people.

“As a direct result of Heidi’s efforts, we are making significant strides in improving the diversity and caliber of our talent pipeline,” wrote Luciana Amaro, vice president of talent development and strategy at BASF. —Lauren Dixon w o r k f o r c e . c o m | Workƒorce

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• INTERNATIONAL

SONY MEHTA

Manager, TRL Krosaki Refractories Ltd., Jharsuguda, Orissa, India

ANSON MATHEWS

Training developer, DP World, Dubai, United Arab Emirates DP World, which operates marine and inland terminals and offers international maritime services, assigned Anson Mathews to its operations training center to serve as a consultant helping prepare the division for growth.

In a company of 37,000 employees, he became responsible for developing a learning strategy that would reach 18,000 trainees per year across more than 30 nationalities to ultimately build employee capability and drive individual and team performance.

Being a training professional by trade, Mathews, 30, had to face a number of challenges including making sure all trainers had a training background despite limited capabilities in terms of learning infrastructure, process and procedures aligned to business and people maturity.

Still Mathews, who has received numerous awards and accolades and holds several degrees and certifications, drew on his substantial background to simultaneously focus on the bigger and smaller picture to deliver results.

—Bravetta Hassell 38

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In less than two years at TRL Krosaki Refractories Ltd., Sony Mehta has been named a people and organization development practitioner and has implemented different transformational projects to manage transactional HR activities. Before joining TRL Krosaki, Mehta set off HR initiatives as a strategic HR partner and executed best practices to align the objectives of the organization.

Within a year, Mehta has made many contributions to the field of talent management, including but not limited to overhauling the performance management system, streamlining the recruitment process and introducing talent assessment tools for leadership development, just to name a few.

Mehta, 34, now primarily works with strategic HR, encompassing both shortand long-term HR planning; organizational restructuring; leadership development; design of career and succession planning; and driving diversity initiatives and automating HR processes.

As her colleague explained, Mehta has a firm focus on striving toward excellence and has been an enthusiastic and passionate leader whose ability to quickly and decisively offer solutions to new challenges makes her a valued game changer in the workplace. She plays a pivotal role in implementing innovative HR practices and intends on adding new dimensions to TRL Krosaki’s existing HR systems year after year. —Camaron Santos j u ly / au g u s t

2017

INTERNATIONAL • FLORINE VAN EVERDINGEN

Founder and talent development coach, MyWinspiration, Amsterdam, Netherlands Florine van Everdingen has tapped her entrepreneurial spirit to launch an initiative aimed at inspiring and empowering young female talent.

MyWinspiration was founded in 2015 with the mission of attracting women to enter the workforce. With a group of 12 young women, she created a magazine focused on this goal. It’s available for free internationally.

That’s on top of her full-time gig at consultancy KPMG, where she’s considered a steady, strong, reliable rock that her colleagues can rely on. As the leader of MyWinspiration, van Everdingen, 28, is a familiar face as a keynote speaker and has built a global community that continues to grow.

“Ultimately my goal is to provide women with the opportunity to empower one another and learn from each other; enabling them to actively participate in the workforce to the best of their abilities and ambitions,” said van Everdingen in an email interview.

It’s at speaking events where she engages and connects most with her audience. This gave her the idea to develop a Young Female Talent Program, which allows her to coach young talent trying to build their careers.

Meanwhile, it’s also given her the idea to bring all these ideas together in a book.

“Both are ambitious works in progress and will, I am sure, take us some time to realize,” she said. “But I do believe that if you can dream it, you can do it. And I have to say, the dream I have for MyWinspiration is only getting better.”

Her colleagues are impressed with what van Everdingen has accomplished. “We’re amazed by her ability to not only be an excellent consultant at one of the largest organizations in the world, but also be an inspiration and driving force for gender equality,” wrote Juliette Cleton, sales and operations planner j u ly / au g u s t

2017

at cosmetics company Rituals and part of the MyWinspiration team, in van Everdingen’s Game Changer application.

MyWinspiration has not hampered her ability to be a great leader at KPMG. As a manager, she develops and gets the best out of her team, said Lizzie Garland, junior consultant at KPMG. Van Everdingen proactively listens to her team and gives them the opportunity to grow but also provides, strong, steady, calm leadership when needed.

Her success in people management comes from an appreciation for people, which was fostered early on in her university years when she came across this Henry Ford quote: “You can take my factories, burn my buildings, but give me my people and I’ll build the business right back again.”

“I believe that quote is still very much relevant today and that people are the single most valuable asset an organization will ever possess,” she said.

—Andie Burjek

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Beyond Great: FEATURES OF TODAY’S

Legendary Companies Great is really good when you’re an organization. But aspiring to make legendary status is another level.

BY SOREN EILERTSEN

W

hile solid economic and financial performance may be an indicator of a “great” company, legendary status isn’t solely based on stock returns.

Companies such as Zappos, Nordstrom Inc., USAA, Costco and Lego stand out as legendary brands in the marketplace because they obsess about both the customer and the employee experience.Their customers recognize and celebrate them, and their employees engage and act as spokespeople for the business. In this sense, customers and employees alike become loyal promoters of the brand, and it is the combination of the two that makes for a legendary status.

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There are five characteristics that distinguish great and legendary companies: Others Tell Stories; Customer Value Focused; Live the Purpose; Promoting Stakeholders; and Transcend Industry. Let’s take a deeper dive into each distinctive characteristic.

Others Tell Stories The word “great” refers to being big in size, long in duration, or above average in quality. The word “legendary” means something is remarkable enough to be famous. Legendary goes beyond great. A business has a legendary status when customers begin to tell — and retell — stories about their unique and positive experiences with the company.

Zappos has become known for exceptional customer service.The company trains its call center representatives to “go above and beyond” for every customer without worrying about the length of time they spend on the phone.

They ask representatives to develop a personal and emotional connection with each customer.This high standard was showcased when Tony Hsieh, the CEO of Zappos, was with a group of hungry people late one evening in Santa Monica, California. Food service was no longer available at their hotel.They cajoled a woman in the group (not a Zappos employee) to call the Zappos call center, which is open 24/7, to find the names of local food establishments still open and willing to deliver at that hour. After a bit of understandable confusion and brief research, the representative provided the names of five pizza places still open, according to a 2010 Harvard Business Review article by Hsieh. He created a Zappos story with this experience — one which is being told and retold all over the world and has become free marketing for the company.

Adult fans of Lego, the Danish toy company, have organized themselves into groups. These fans know much more

about Lego bricks and systems than the average customer and typically much more than Lego employees. Known as AFOL, they show incredible passion for Lego by constantly posting creations and ideas online. Members meet up at self-organized user groups and even have an annual exhibition called BrickCon. Most of the hundreds of millions of Google search hits and tens of thousands of YouTube videos on Lego come from this fan base.This is a good example of how customers share stories and promote a brand’s business.

Customer Value Focused Companies that know their customers have a significant advantage over competitors. They educate their employees on the specific needs of their target audiences and provide functional product offerings that offer exceptional significance and value.

By understanding their targeted customers, legendary companies develop the opportunity to create an emotional connection with customers by speaking to their needs and giving them a positive experience.

USAA, a financial and insurance services company, serves primarily military personnel and their families.

USAA offers a wide array of banking and insurance services, supplying members of the institution with a single relationship to manage, thereby avoiding hassles and saving time.

More importantly, by speaking the language of the military personnel they serve, USAA provides a sense of affiliation and belonging as well as familiarity, which reduces the anxiety common to banking and insurance relationships. By considering both the functional and emotional needs of their customers, USAA focuses in on providing high value that has resulted in a much deeper relationship with its customers.

Companies like clothier TOMS take it a step beyond the emotional and functional elements of value to further connect with their customers through benefiting others. Research by Bain & Co. and published in the Harvard Business Review in 2016 correlated the elements of value provided to customer groups with the six levels of human needs on psychologist Abraham Maslow’s hierarchy of needs (physiological, safety, love and belonging, esteem, self-actualization).

The research found that more elements of value offered to customers resulted in higher levels of loyalty and higher levels of revenue growth. Emotional and functional elements of value typically address needs on the first three levels of critical human needs. Providing value elements that speak to higher level needs can create an even stronger connection with customers. By giving a pair of shoes away for every pair purchased, TOMS provides a sense of serving others that fulfills the upper levels in Maslow’s

A BUSINESS ATTAINS LEGENDARY STATUS WHEN CUSTOMERS BEGIN TO TELL — AND RETELL — STORIES ABOUT THEIR UNIQUE AND POSITIVE EXPERIENCES.

WHAT SEPARATES LEGENDARY FROM GREAT G R E AT

L E G END A RY

Others emulate

Others tell stories

Performance focused

Customer focused

Have a purpose

Live the purpose

Satisfied customers

Promoting stakeholders

Best practice leader

Transcend industry

Source: Soren Eilertsen

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hierarchy of needs and attracts a specific, loyal and activated customer group.

Live the Purpose Legendary companies are driven by an all-encompassing purpose.They nurture everyone involved with the company — both internally and externally — to adopt that purpose. Internally, legendary companies engage and emotionally connect their employees in their purpose, converting them into voluntary “spokespeople” for the company. Externally, customers become promoters for the business when they tell others of their positive experiences and personal connection to the company’s purpose.

As a toy company, Lego’s purpose and vision are about human possibility.The company wants to “inspire and develop the builders of tomorrow” and “invent the future of play.”

Lego realizes that its success hinges on motivated employees that are inspired by the company purpose and feel engaged in the strategy.To understand how this motivation manifests internally, the company conducts an annual employee survey.

This survey includes a question, measuring the degree employees are willing to recommend Lego as an employer.This question is called the Employee Net Promoter Score, or eNPS, and Lego uses this metric to benchmark employee engagement and satisfaction. With a stated goal of making Lego “the best place to work in the world,” the survey helps Lego determine the underlying drivers of employee engagement and satisfaction. Lego considers the voice of employees as important as the voice of customers.

Nordstrom is another example of a company’s purpose being both internally and externally embraced. Nordstrom’s purpose is “to deliver the best possible shopping experience, helping customers possess style — not just buy fashion.”The company provides “superior customer service and product quality” in the brick and mortar retail business as well as online. Personalized sales associates research their customers to better assist them. Customers, in turn, are quick to share those experiences in their communities.

Promoting Stakeholders Legendary companies pay careful attention to how they are viewed by their customers and employees.They aim to have engaged employees and loyal customers. Engaged employees are likely to be active spokespeople for the company, and loyal customers will promote the business to others. Companies with one, but not the other, won’t attain legendary status.

The Net Promoter Score is the best quantitative measure of how customers perceive a company or brand. “Great” companies score above 55, which is recognized as a desirable rating, and companies that score above 70 are a rarity.Very few companies achieve this level of loyalty from their customers. To complicate matters, maintaining loyalty requires constant attention since the NPS — a measure of customers’ perception — can shift quickly. USAA had a NPS score of 75 in 2015, while the general financial industry averages around j u ly / au g u s t

2017

Calibrating Customer Loyalty: The Net Promoter Score The Net Promoter Score has emerged as the de facto measure of customer loyalty, reputation, and how stakeholders view companies. Originally developed by Fred Reichheld and Bain & Co., NPS is now officially managed by Satmetrix Systems Inc. The score is compiled based on answers to a single question: “How likely is it that you would recommend [company/product/service] to a friend or colleague?” Answers range from “not likely at all” to “extremely likely” on a 0-10 scale.

Responders with scores of 9 and 10 are seen as “promoters” and loyal enthusiasts who will keep buying and refer others. Responders with scores of 7 and 8 are considered “passives” who are satisfied but unenthusiastic customers. Those who respond with scores of 0 to 6 are unhappy customers or “detractors” who can damage a brand through negative word-of-mouth exposure.

NPS is calculated by subtracting the percentage of “detractors” from the percentage of “promoters.” This yields a score ranging from negative-100 to positive-100. While some criticize NPS for measuring intention rather than actual retention and referrals, the metric is easily understood by employees and provides the opportunity to ask additional commentary questions for qualitative feedback from customers at all levels of the scale.

—Soren Eilertsen

35. Zappos’ recent scores have been in the 50s; the retailer was recently outranked in NPS by its parent company, Amazon.

In 2016, Nordstrom scored the highest of all “officially measured” consumer brands with an amazing NPS of 80. They “beat” Costco, which scored 79 the prior year.

In a “State of the American Workplace” report from 2013, Gallup pollsters concluded that 70 percent of the American workforce is disengaged from the company that employs them. Disengaged employees may passively, if not actively, speak negatively about the business and consequently take part in sabotaging its reputation. Instead of focusing on employee satisfaction, legendary companies concentrate on creating employee engagement by instilling a culture that is aligned with the company’s purpose. Employees in these companies are proud to represent the business, creating invaluable and positive ripple effects in the marketplace. Metrics to monitor the level of engagement are now frequently LEGENDS continued on page 48 w o r k f o r c e . c o m | Workƒorce

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SECTOR REPORT

Tr a i n i n g P r o v i d e r s

L&D Today: Microsized, Personalized and Really, Really Short Curated content strikes at learners’ hearts, but employers need to think fast to track it.

By Sarah Fister Gale

I

n today’s on-demand world, employees want training at the moment they need it, and they want it to align with their learning style and knowledge. That’s driving many learning technology vendors and content providers to build analytics tools that can match learning content to the needs of employees.

“It’s still early stages, but analytics in training is not a fad,” said Elissa Tucker, principal research lead for APQC in Milwaukee.

She’s seen several companies investing in tools like knowledge maps that overlay individual’s skillsets with the learning needs required for a role, then using machine learning algorithms to recommend or assign courses based on those models to close skill gaps.

“Cutting-edge learning organizations with a lot of resources are at the forefront of this trend,” she said. “But others will soon follow.”

Some content providers are also beginning to implement analytics and machine learning technology to make their content more relevant and efficient for customers.

PeopleSEC, for example, uses analytics to identify which employees need training based on their response to phishing emails. Those who follow security protocols don’t need to take additional classes, while those who click on phishing links generated by the software are automatically signed up.

Analytics tools can also customize the type of training suggested, based on a learner’s previous course selections, preferred format or access capabilities.Where one employee might prefer a classroom course or MOOC, another might prefer mobile-enabled self-paced learning,Tucker said. “It is giving organizations a way to make learning more personalized.”

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Social learning is a powerful trend in the learning space, said Barry Stern, senior vice president of Development Dimensions International’s accelerated development solutions in Pittsburgh.

“Companies want to unleash the vitality of their peer-to-peer community,” he said. Social platforms give them this capability.

However, learning leaders need to pay attention to the quality of these engagements. “What people like and what they need is different,” he said, noting that just because a video gets 200 upvotes doesn’t mean it adds value as a learning tool.

This trend has become important as employees seek a more diverse collection of learning opportunities, and prefer lots of small bites of training rather than one big multihour course, said Bill Pelster, principal with Deloitte Consulting in Seattle.

“The microlearning trend is going mainstream,” he said.

While 15-minute chunks of learning may not deliver an en-

VIEW LEARNING AS % ANOF EXECUTIVES IMPORTANT (40 PERCENT) OR

LITTLE BITS OF LEARNING Social media platforms are also helping employees personalize the learning experience by giving them access to experts and shared knowledge, and letting them share and rate content.They can also find content from external sources, like YouTube and Lynda.com, and share that knowledge with their peers.

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VERY IMPORTANT (44 PERCENT) ISSUE tire skill set, they are valuable tools for busy employees who use them to solve problems at the point of need. But tracking this knowledge acquisition is tricky, Pelster said. “Companies need tools that help them certify the learning is taking place.”

The challenge for vendors is providing companies with technology to manage all of this curated content from all of its many sources, agreed Stern. “There is no clear answer, but it is definitely on their minds.”

Some learning management systems vendors, like Saba Software, Totara Learning Solutions and Cornerstone OnDemand are adding tools to help manage more types of content, rate their relevance and track who is using them as a way to rein in this trend. Several niche software companies have also emerged, including Degreed and Pathgather, which help companies and employees find, share and track learning from multiple sources.

“There is a world of content out there that is available to learners,” Pelster said. “Organizations need visibility into how this content is being used.” j u ly / au g u s t

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As millennials and Generation Z employees take over the workplace, and the need for new skill development constantly evolves, these microlearning curated-content trends will only continue. “Anything that facilitates employees sharing knowledge, collaborating and connecting to learning will add value,”

Tucker said. “And the vendors who provide these options will resonate with their customers.”

Sarah Fister Gale is a freelance writer in the Chicago area. To comment, email editors@workforce.com.

HOT LIST Training Providers Listed alphabetically; compiled by Mia Mancini and Rick Bell; editors@workforce.com

Company name & web address AXONIFY INC. axonify.com

Key knowledge and skills topics covered

Existing off-the-shelf programs

Custom programs developed each year

Full-time instructional services personnel

Select key industries served

Safety; customer service; sales; product knowledge; compliance

Not applicable

Not available

10

Retail; manufacturing; logistics

DUPONT SUSTAINABLE SOLUTIONS training.dupont.com

Safety; operational risk management; maintenance and reliability

2,000

25

5

Manufacturing; chemicals; utilities

GENERAL DYNAMICS INFORMATION TECH INC. gdit.com

Operations; maintenance; safety; cybersecurity; live combat

25

Not available

1,350

Department of Defense

KNOWLEDGE SYNONYMS knowledgesynonyms.com

Compliance; technology; legal managerial; team training

Not available

Not available

78

Education; medical/ health care

MILLER HEIMAN GROUP millerheimangroup.com

Sales and service training; talent skills and predictive assessments

30

100

250

Banking/finance; retail; health care

NIIT niit.com

Compliance; end-user systems; health and safety

Not applicable

8,750

500

Oil/gas; banking/ finance; technology

SKILLSOFT skillsoft.com

Business and leadership; digital; IT skills/certifications

165,000

1,800

Would not disclose

Aerospace; agriculture

VITALSMARTS vitalsmarts.com

Open dialogue; influential leadership; universal accountability

4

4

31

Health care; high-tech

Note: Cognizant Technology Solutions declined to participate. Forum; GP Strategies; Raytheon Professional Services; Root Inc.; and Strategy Execution did not respond to requests.

Source: Companies j u ly / au g u s t

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45

SECTOR REPORT

Background Check Providers

Passing the Stress Test Evolutions in background screening technology is making the process faster, easier and a little less annoying.

By Sarah Fister Gale

B

ackground screening is arguably the worst part of the recruiting process — both for recruiters and prospective employees. It’s time consuming, requires a lot of data entry and adds delays and anxiety to the hiring process. Companies that are trying to win over promising candidates are looking to their background screening vendors to make this process less painful.

“In the war for talent, candidate experience has become very important,” said Clare Hart, CEO of Sterling Talent Solutions in New York. “They want to get employees into the organization sooner, and to be sure they have a positive experience getting there.”

Mary O’Loughlin, managing director of health care at HireRight in Irvine, California, agreed.

HireRight’s 2017 background screening report shows reducing time to hire has become the most significant background challenge companies face. “Speed has become a critical component of the screening process.”

This has spurred background screening vendors to update their solutions, adding customization features and standardized forms to make the screening process a more positive experience.

These include real-time updates so candidates see where they are in the process, e-signature options, branded interfaces and better integration with application tracking systems. “ATS integration has been a trend for a long time,” Hart said.“Where it used to be innovative, now it’s ‘the price of entry.’ ” The screening process also has to be accessible via mobile devices, O’Loughlin said. Roughly a third of candidates now complete their entire process via mobile, and that percentage will likely rise as more millennials and Generation Z employees enter the workforce.“A lot of times they don’t even want to get updates via email,” she said.“They want everything via text.”

ten have the same level of access to company knowledge and databases as full-time employees.

“If you treat contingent labor as an extension of the workforce you need to recognize the risks,” she said.

Many of these screening challenges will be addressed by evolving industry standards that will create greater uniformity in the background screening process, said Kim Bartkus, executive director, HR Open Standards Consortium Inc., a nonprofit organization that develops HR related standards.

While there are already some standards in place, the background screening work group is developing new standards for

RESPONDENTS THAT HAVE FOUND A LIE OR MISREPRESENTATION ON A RESUME AND/OR JOB APPLICATION

GIG WORKERS NEED SCREENING, TOO Beyond customer experience, companies are increasingly interested in screening tools for contract workers, who made up 40 percent of the U.S. workforce in 2015, according to the U.S. Government Accountability Office.

“More organizations are employing contingent, contract or temporary workers to meet hiring demands — and screening this population is becoming commonplace,” O’Loughlin said.

Fully 86 percent of companies now screen contingent workers — up from 41 percent just five years ago. It’s a reflection of the growing reliance on temporary project workers, who of-

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85

%

gathering, sending and sharing candidate information to make it more seamless and consistent.

“If everyone is using the same formats, it will speed the process and reduce errors and missed information,” she said.

“That benefits everyone.”

HOW TO CHOOSE Companies currently vetting their background screening vendors should start by reviewing the tools with their own pain points in mind, O’Loughlin said.

“Think about the people you want to screen, and whether the features they are offering will improve your hiring process.”

They should also look for vendors that can deliver proof of value through performance data, Hart said. She sees many companies today asking vendors to provide stats on key metrics like turnaround time, hit rates (when candidates have negative screening results) and customer service requests.

For example, getting a high hit rate may indicate that they need to review where they are sourcing candidates; and if there is a spike in customer services calls it can indicate a problem with some aspect of the screening process.

“There is a lot of valuable information out there to help companies understand how their program is working,” she said.The more they push for these numbers, the better the overall screening process — and the candidate experience — will be.

Sarah Fister Gale is a freelance writer in the Chicago area. To comment, email editors@workforce.com.

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HOT LIST Background Checking Providers Listed alphabetically; compiled by Mia Mancini; editors@workforce.com Company name & web address

Number of individuals screened in the most recent 12 months

Number of clients using employmentrelated screening services

ACCURATE BACKGROUND accuratebackground.com

2,375,404

9,500

CAREERBUILDER EMPLOYMENT SCREENING LLC* aurico.com

1.9 million

5,500

545,150

1,445

1.73 million

6,220

FIRST ADVANTAGE fadv.com

55 million

35,000

GENERAL INFORMATION SERVICES INC. geninfo.com

9.2 million

2,634

GLOBAL HR RESEARCH LLC ghrr.com

2 million

3,200

HIRERIGHT LLC hireright.com

13 million

40,000

INFO CUBIC LLC infocubic.com

250,000

3,000

INFOMART INC. infomart-usa.com

1.75 million

8,125

INTELLICORP RECORDS INC. intellicorp.net

2.7 million

12,147

JUSTIFACTS CREDENTIAL VERIFICATION INC. justifacts.com

Undisclosed

2,790

ORANGE TREE EMPLOYMENT SCREENING orangetreescreening.com

425,000

275

PEOPLEG2 peopleg2.com

545,586

4,000

PRE-EMPLOY.COM INC. pre-employ.com

600,000

3,000

80,272,677

50,000

915,100

4,653

CORPORATE SCREENING SERVICES INC. corporatescreening.com EMPLOYMENT BACKGROUND INVESTIGATIONS INC ebiinc.com

STERLING TALENT SOLUTIONS sterlingtalentsolutions.com UNIVERSAL BACKGROUND SCREENING INC. universalbackground.com *Aurico was rebranded as CareerBuilder Employment Screening in May 2017.

Source: Companies j u ly / au g u s t

2017

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47

LEGENDS continued from page 43 used, including surveys that ask questions such as, “How likely are you to recommend employment at the company to a friend?” Glassdoor allows current and former employees to review online the companies (and CEOs) for which they work or have worked. While skewed by reviews from former employees, the website’s scoring does provide an insight into company culture and how likely employees are to recommend the company to a friend. Scores above 60 indicate the company has a “great” workplace culture.

Legendary companies differentiate themselves in the marketplace and redefine, or at least reprioritize, market factors to transcend their industry.This is often at odds with industry best practices, which homogenize instead of differentiate.

A best practices approach can prevent deep listening to the customer and hinder learning, which makes it vital to scrutinize the limitations that come with such an approach. Legendary companies take deliberate chances on investing in factors that differentiate them in the marketplace.

Costco’s refund policy and rewards programs are legendary. The company allows for returns of anything purchased (with a few exceptions) at any time for a full refund without a receipt as long as you have a membership.

Costco calls it their “Risk-Free 100 Percent Satisfaction Guarantee.”This benefit combined with the cash back rewards from using the store’s branded credit card or being an executive member is seen by customers as an investment in service that surpasses the industry.

Likewise, Zappos was one of the first to introduce free shipping and free returns of their products. Despite the associated cost, this offer differentiated Zappos in the marketplace and cemented its legendary position among online retailers.

The Path from Great to Legendary There is no linear path to follow to achieve legendary status as a company. Legendary companies break with the status quo to transcend their industry and receive societal recognition.They dare to ask questions that fundamentally change industry paradigms.

The path starts with a relentless obsession to bring utility, value and service to customers and employees. Legendary companies deliver quality products and go above and beyond what is typically required in terms of service and customer care. They make an emotional connection so the relationship with their customers goes beyond satisfaction to a real sense of affection. Employees in these companies are happy and engaged.

While the path to becoming a legendary business is neither linear nor easy, both the journey and the destination are well worth the effort.

Soren Eilertsen is an executive consultant, adviser and an adjunct faculty professor of business strategy at Pepperdine University’s Graziadio School of Business and Management. To comment, email editors@workforce.com.

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PBMs continued from page 25 For instance, if a consumer’s co-pay at a pharmacy is more than the cost of the drug, PBMs often utilize a clawback practice and the consumer still pays the co-pay. The remainder then goes back to the PBM, not the employer or the patient.

Larson recommends that in the contract negotiation phase, employers include language that clearly states if the cost of the drug is lower than the co-pay, the patient pays the lower amount.

“If you don’t do that, the clawback issues can continue,” she said.

The More In-House Approach Caterpillar Inc. is one example of a large employer that took an active role and did something disruptive to deal with pharmacy spend. “We carved out a lot of the strategic decisions PBMs make on behalf of employers and made them ourselves,” said Todd Bisping, global benefits manager at the Peoria, Illinois-based heavy equipment manufacturer. This shift of strategic power began in the mid-2000s, he said.

Caterpillar opted to build its own networks — that is, determine which pharmacies to contract with and give its members access to — rather than relying on a PBM to do so. It decided to determine its own pricing methodologies in contracts rather than using PBM-negotiated drug prices. It also designed its own formulary, a list of brand name and generic prescription drugs that employees covered by a specific health care plan can use.

Caterpillar still uses a PBM, Optum, for tasks like prior authorizations, customer support lines and some step therapies. When they started this process over a decade ago, they were using Milwaukee-based Restat, which was bought by Catamaran in 2013. Optum then acquired Catamaran for $12.8 billion in 2015 and renamed the company Optum Rx. Over the past 10 years, Caterpillar slowly brought more elements in-house. It started in 2005 when Caterpillar began implementing changes in the way it did formularies and continued over the next decade to include changes in supply chain. A team of professionals managed the process, including doctors who help with the clinical aspects of the design, a third-party pharmacy consultant, the Caterpillar benefits team and their PBM. When Caterpillar began directly negotiating with pharmacies, the largest hurdle was finding someone willing to partner with them. “No one was really contracting directly with pharmacies in the self-insured employer space, ” said Bisping. But “that’s how you bring innovation into the market.” In 2009, Walmart was the first pharmacy to partner with them, he added.

One major aspect of these first contracts was dealing with the transparency issue. While many companies mean transparency in rebates when they use that term, Caterpillar adopted a broad definition, one that j u ly / au g u s t

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took into account transparency in any revenue associated with drug spend, like marketing fees.

Caterpillar’s decision to take over these strategic functions saved the company hundreds of millions of dollars since its inception in the mid-2000s, and it’s saved the employees tens of millions of dollars, said Bisping. The company spent less in 2015 than in 2005, he added. Since then, they’ve seen costs rise but it’s still much less than the industry average, he said.

Fewer than 10 companies have adopted the same strategy as Caterpillar, according to Bisping. It’s a complex, disruptive process that requires commitment and culture change. Also, many compa-

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nies outsource a lot of their expertise, so they don’t necessarily have the expertise in-house.

But, despite the time commitment to get this internal function operating, he’d recommend it to other companies that want to control drug costs.

Caterpillar accomplished its positive drug price trend without relying on HDHPs or cost-shifting. “We didn’t pass our costs onto employees to accomplish that,” he said. “In that period, we didn’t make any design changes because we were controlling the cost.”

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Andie Burjek is a Workforce associate editor. To comment, email editor@workforce.com.

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w o r k f o r c e . c o m | Workƒorce

49

LAST WORD

Rick Bell

BE EASY ON THE BOSS; THERE’S A WORLD TO SAVE

H

R, I bet you’ve grown weary of people telling you how to do your job.

I’m not talking about your corporate executives, or IT geeks and their annoying heavy sighs or those eternally optimistic yet preachy internal communications people.

No, I’m talking about the know-it-all thought leaders and consultants who have written the hundreds of books scattered around my office. You know, evolve or die, understanding EQ, and how much better off you’ll be building a team of teams (yeah, I don’t get that one either).

CONSIDER THAT IT’S THE BOSSES, NOT YOU, WHO PROVIDE NEARLY 150 MILLION PEOPLE WITH THEIR HEALTH CARE INSURANCE. As I scroll through my 40,000-plus deleted emails there are strategies for networking success, tips on the “new” workplace-training model and dire warnings that your department will combust if you don’t beef up cybersecurity (OK, I made that up, sort of). If I had the patience to scroll past the first 5,000 or so I’d probably come across best practices in building better mousetraps.

And despite being a decade into it, there’s no shortage of millennial management tricks even though these generationally obsessed experts likely couldn’t get their own millennials to clean their bedrooms no matter how much they assure them they are more than just a cog in the housekeeping wheel. Chalk it up to the lack of a fun, employee-centric, team-like environment around the ol’ homestead.

You didn’t ask, HR; you seldom do. Nonetheless, there is more advice, assistance and admonishments available these days than you can shake a carrot and stick at.

So instead of badgering you with more truly meaningless generational cohort banter, let me offer one little sliver of perspective.

Be grateful you aren’t your boss.

Now I realize that bosses also are on the receiving end of a lot of unsolicited advice.

Unlike you in HR, who really must do it all, from stocking the supply room when Post-it notes run low to assessing the latest iteration of performance review forms (should 1 or 5 indicate strongly agree or strongly disagree?), bosses get an entirely different set of uninvited topics dished out for them.

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It’s not only on them to change the workplace, bosses are being told that it’s their duty to reshape the world as well.That’s one heavy load to shoulder.

Take health care, for instance. I have no doubt the vast majority of bosses want to provide a plan that takes care of their workers and their families. It’s a big cost — possibly their largest expense, next to that constantly dwindling supply of Post-its. But we’re far enough down this well-traveled roller-coaster ride that is the government-sponsored health care debate to know that healthy employees make better workers.

And that’s precisely why your boss is being tabbed to enter the fray.Time was, health care was your domain. And in many ways it still is.

But consider that it’s the bosses, not you, who provide nearly 150 million people with their health care insurance.

That’s nearly half the U.S. population! The boss is being told to step up and dictate how the health care is funded and delivered.

In addition to calls to fix racial tensions, widen organizational diversity and implement pay equality there’s also a groundswell of support for bosses to be the planet’s caretakers. In the wake of President Trump’s eye-rolling move to join such progressive-minded nations as Nicaragua and Syria in rebuffing the Paris Climate Accord, the chorus of “employers need to protect the planet” has escalated from a whisper to a lung-burning scream.

Your boss is no voice in the wilderness, either. Plenty of corporate captains are tackling that task already. Tesla’s Elon Musk, GE’s outgoing chief Jeff Immelt and Goldman Sachs CEO Lloyd Blankfein are committed to, as Apple’s Tim Cook wrote in a memo to his employees, “protect the environment.”

I mean, this is heady stuff. We’re not talking about disrupted supply chains and building organizational agility and resilience here. Solve the nation’s health care woes AND be the earth’s savior at the same time? That’ll have your boss pining for the days when busting unions and skirting ethics laws were their biggest challenges.

Look HR, I know you have a lot on your plate. But take it from someone who’s made a living out of telling people that “you should do fill-in-the-blank.”

Go easy on your boss. There’s an ailing health care system to cure and a mighty messy environment that needs saving.

And if you want to hand off a less taxing responsibility, let them select whether 5 or 1 means strongly agree. The diversion will do them good.

Rick Bell is Workforce’s editorial director. To comment, email editors@workforce.com.

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