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Copyright 2011 Epicor Software Corporation or a subsidiary or afliate thereof. Epicor and the Epicor logo are registered trademarks of Epicor Software Corporation. All rights reserved.
epicor.com/hcm
Your Business Runs on Human Resources.
Well, we wouldnt exactly call it a great fall. Neither would Humpty Dumpty. Thankfully,
human resources acted quickly and his long-term disability benets were administered just as
he expected them to be. While the kingdom launched an inquiry into the height and weight
restrictions associated with the wall, human resources made sure that the legendary wall
incident was reported in compliance with industry regulations and best practices. They also
helped Humptys managers recruit and hire a shiny new egg swiftly and successfully so that
everyone could move forward with the peace of mind that all was well in the kingdom...
Humpty Dumpty sat on a wall.
Humpty Dumpty had a great fall...
Epicor Human Capital Management:
One Software Solution. All the Answers.
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Ellens Had Two Surgeries She Didnt
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Costing You More Than $52,000.
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2011 Optum, Inc. All Optum trademarks and logos are owned by Optum, Inc.
All other brand or product names are trademarks or registered trademarks of their respective owners.
*Savings are estimated based on proprietary cost savings methodology.
Ellen is a fctitious character used to illustrate OptumHealth programs and services.
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December 2011 HR Magazine 5
Contents
DECEMBER 2011 VOLUME 56, NUMBER 12
22COVER STORY
What You Like About Your Job
What drives HR professionals job
satisfaction is not what drives their
employees satisfaction.
By Adrienne Fox
FEATURES
28 COMPENSATION
Specialization Pays
Growth in pay for HR professionals in 2011
mirrored modest gains for the broader
workforce, but there were exceptions.
By Joseph Coombs
36 PROFILE
This Place Is a Zoo!
Tim Mulligan and his HR team reformed key
processes at the world-famous San Diego
Zoo to keep and attract top talent.
Interview by Beth Mirza
38 BENEFITS
Sabbaticals Pay Off
Sabbaticals provide an opportunity to
cross-train other workers.
By Kathryn Tyler
43 Q&A
Safer Separations
Take it slowly when ring a potentially
violent employee.
Interview by Kathryn Tyler
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RELOCATION SPECIAL REPORT
44 Taking Care of Business Abroad
Extended business travel can trigger
serious tax consequences and medical
coverage concerns.
By Eric Krell
AGENDAS
101 TRAINING
Who Will Stay and Who Will Go?
Stay interviews can give employers insights
on employees who may be ready to bolt
before they do.
By Kathryn Tyler
105 GLOBAL HR
Open for Business?
Weigh options carefully before returning
expatriates to countries convulsed by the
Arab Spring.
By Aliah D. Wright
44
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Contents
December 2011 HR Magazine 7
HR Magazine (ISSN 1047-3149) is published monthly by the Society for Human Resource Management, 1800 Duke
St., Alexandria, VA 22314, (703) 548-3440, to further the professional aims of the Society and the human resource
management profession. Members of the Society receive HR Magazine as part of their annual dues, $55 of which
is allocated for the subscription to HR Magazine, which is nonrefundable therefrom. Nonmember subscriptions are
available from the Circulation Department at the following rates: Domestic (U.S. and its territories)$70 per year.
Canada$90 per year. International (via airmail)$125 per year. Published articles do not necessarily represent the
views of the magazine or the Society. Society for Human Resource Management 2011. Periodicals postage paid
at Alexandria, VA 22314 and additional mailing offices. POSTMASTER: Send address changes to HR Magazine,
Circulation Department, 1800 Duke St., Alexandria, VA 22314. Publications Mail Agreement No: 40041558. Please
send returns to BleuChip International, P.O. Box 25542, London, ON N6C 6B2.
This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. It is published with the
understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is
required, the services of a competent professional person should be sought.
ADVICE AND ANALYSIS
20 SOLUTIONS
Disability accommodations, unemployed
applicants, sustainability
By Deb Levine, SPHR, Angie Collis, SPHR,
GPHR, and Inga Fong, PHR, GPHR
109 HR TECHNOLOGY
Creating Metrics for Senior
Management
Give senior leaders the HR data they
want, and show HRs impact on business
outcomes.
By Drew Robb
117 LEGAL TRENDS
Getting Overtime Calculations Right
A number of payments may be excluded in
determining the regular rate for overtime
purposes.
By Jonathan A. Segal
MANAGEMENT TOOLS
Management Tools is online. See
this months issue at www.shrm.org/
hrmagazine.
Grow Global Leaders Locally
Developing local global leaders is
imperative.
By David Everhart
NEWS YOU CAN USE
13 HR NEWS
Ramications from Occupy Wall Street;
the best excuses for taking sick days; do
workers want the bosss job?; more.
117 20
18 EXECUTIVE BRIEFING
Improving customer service; holiday party
drinking.
113 COURT REPORT
Arbitration clause covers claims arising
from rape; returning service members must
be given reasonable opportunity to rebuild
commission income; more.
127 WHATS NEW
Health and safety; performance
management; stafng.
PERSPECTIVES
FROM READERS
Readers letters are online. See this months
issue at www.shrm.org/hrmagazine.
10 FROM THE CEO
Embracing Social Media
By Henry G. Jackson
128 FUTURE FOCUS
The Jobs Paradox
Many unemployed workers lack the critical
skills companies need.
By Jennifer Schramm
BOOKS IN BRIEF
Books in Brief is online. See www.shrm.org/
publications/hrmagazine/books for summaries
of The 5 Languages of Appreciation in the
Workplace, Transformational Diversity,
Win-Win Performance Appraisals and Hiring
for Attitude.
SHRM RESOURCES
123 INSIDE SHRM
Strategy Conference speakers inspire;
Diversity Conference celebrates game
changers; more.
SPECIAL SECTION
51 2012 HR TRENDBOOK
109
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Click for More
A spotlight on resources available on SHRM Online
Working with Them
... Oops, We Mean IT
As HR transactions become increasingly online-based,
collaboration with technology departments is essential. Here
are some tips for working with IT experts to ensure the success
of HR software initiatives.
NEW BELLS AND WHISTLES
New technology and apps are transforming
HR software systems from mere data reposito-
ries into tools for strategic talent analysis.
www.shrm.org/technology/newtech
TRANSFORMING HR
A SHRM Foundation report discusses how
leveraging e-HR can transform an organiza-
tions HR practices.
www.shrm.org/foundation/hrtech
A SECURE CLOUD?
Understand the risks before your organiza-
tion puts sensitive HR data on Internet-based
applications.
www.shrm.org/technology/cloud
WEBCAST: HRS ROLE IN
TECHNOLOGY IMPLEMENTATION
Its not just about making sure that the technol-
ogy works the way its supposed to. HR profes-
sionals can help ensure that new technology
meets the needs of the organization.
www.shrm.org/webcast/techimplementation
VIDEO: REBOOT
Anticipating the fundamental mistakes compa-
nies often make in capturing HR data can help
an implementation go more smoothly.
www.shrm.org/video/hrdata
December 2011 HR Magazine 9
How to Contact Us
Society for Human Resource Management
1800 Duke Street, Alexandria, VA 22314, USA
Phone (703) 548-3440; Fax (703) 836-0367;
TTY (703) 548-6999; E-mail: shrm@shrm.org
Web: www.shrm.org
The Society for Human Resource Management (SHRM)
is the worlds largest association devoted to human
resource management. Representing more than
250,000 members in over 140 countries, the Society
serves the needs of HR professionals and advances
the interests of the HR profession. Founded in 1948,
SHRM has more than 575 affiliated chapters within the
United States and subsidiary offices in China and India.
Visit SHRM Online at www.shrm.org.
Join us on SHRM Connect: Interact with the HR Mag-
azine and online editorial staff at the SHRM Publishing
and E-Media Group. Go to http://community.shrm.
org/?q=node/1416 and click on Join this group.
Toll-free 800 Numbers
(800) 283-SHRM for:

SHRM Membership (dues status, general


information, address changes)

Conference & Seminar Registration

HR Knowledge Center Advisors

HR Certification Institute
(800) 444-5006, option 1 or (770) 280-4188 for:

SHRM Catalog Orders, Books and Product


Information
Other Telephone Numbers
Mailing List Rentals: (203) 532-6644,
shrm@directmedia.com
SHRM Foundation: (703) 548-3440
HR Magazine
Editorial, Advertising and Circulation offices are at
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Contact HR Magazine
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Clearance Center, 222 Rosewood Dr., Danvers, MA
01923, USA, (800) 772-3350 or (978) 750-8400, fax:
(978) 750-4470, www.copyright.com
(ISSN: 1047-3149). To order reprints or e-prints of any
article, contact the YGS Group at (800) 501-9571.
Subscription Information
SHRM members receive the magazine as a
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Join or Renew Online!
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org/infokitrequest. Out of work? SHRM offers a one-
time transitioning membership. Find out more informa-
tion at www.shrm.org/members/transitioning.
Scan this code with
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10 HR Magazine December 2011
From the CEO
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ocial media is now intertwined within
the fabric of our society and culture, and
theres no going back. And, because at
the Society for Human Resource Management
(SHRM) we are always looking forwardWe
Know Nextwe have embraced social me-
dia as a major initiative for the Society. At the
beginning of this year, SHRM made a commit-
ment to ramp up our presence on social media
sites to communicate
with you in the ways
you prefer, and to
facilitate your engage-
ment and interactions
with HR professionals
around the globe.
This past summer,
we launched the second
phase of our in-house
social networking
platform, SHRM Con-
nect, at http://com-
munity.shrm.org. Its
a site made exclusively
for you to meet new
people, share ideas and
solve challenges. We
recently added features,
improved search func-
tions and included
e-mail alerts of discussions being posted. Look-
ing ahead, well be moving SHRM Connect to
a new technology platform for improved usabil-
ity, navigation, speed and functionality.
But we know that there are other places
where you gather to learn and network, so we are
integrating our platform with those communities
and leveraging those external sites.
The SHRM Twitter account at http://twit-
ter.com/#!/shrm now has 23,300 followers, an
increase of more than 60 percent since August.
The SHRM Blog at http://blog.shrm.org is
another platform that continues to allow mem-
bers to actively engage with SHRM. In addi-
tion, nearly 50 SHRM employees use Twitter to
interact with members, spur conversations, and
provide you with quick and current updates on
Society matters.
Attendees of our conferences experienced
SHRMs emergence in social media. Our
Annual Conference in Las Vegas included mul-
timedia screens, social media promotional signs
throughout the venue and promotions during
the general sessions (including texted questions
during presentations). And, we hosted a popu-
lar social media and bloggers lounge.
While we had nearly 13,000 attendees on
site, we were able to share some of the learn-
ings and conversations with more than 930,000
people through social media.
The same was true for our recent Diversity
& Inclusion Conference. Five hundred people
were physically at the conference, but 47,000
people weighed in on the conversations we had
in Washington, D.C., during the conference
through Twitter.
Since weve increased our presence on
social media, our conversations with you have
become more interactive. We now have better
opportunities to listen, ask questions and
share ideas with 260,000 of our closest associ-
ateswith just the click of a button.
It has been said that communication works
for those who work at it.
We are working at it hard. In 2012, look
for us to do even more in social media, maxi-
mizing its potential in communication as we
talk and learn with you.
Enjoy your holidays, and thanks for your
support this past year. I am excited about the
possibilities for more exchanges with you in
2012.
By Henry G. Jackson
Embracing Social Media
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the benets. Because just meeting expectations is never enough.
Contact your benets consultant today, or visit thehartford.com/groupbenets.
The Hartford Voluntary Benets
With The Hartford behind you, achieve whats ahead of you.

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Partner with The Hartford, a leader in group benets, to help ease the burden of administering
voluntary solutions. In addition to providing innovative coverage and a exible enrollment
process, we offer your people value-added services, like travel assistance, that go beyond
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___________
For more information, call your broker
or visit www.uhcspecialtybenets.com.
UnitedHealthcare Vision

coverage provided by or through UnitedHealthcare Insurance Company, located in Hartford, CT, or its afliates. Administrative
services provided by Spectera, Inc., United HealthCare Services, Inc. or their afliates. UnitedHealthcare Dental

coverage provided by or through


UnitedHealthcare Insurance Company, located in Hartford, CT, or its afliates. Administrative services provided by Dental Benet Providers, Inc., Dental
Benet Administrative Services (CA only), United HealthCare Services, Inc. or their afliates. UnitedHealthcare Life and Disability products are provided by
UnitedHealthcare Insurance Company, located in Hartford, CT; and in California by Unimerica Life Insurance Company; and in New York by Unimerica Life
Insurance Company of New York. Unimerica Life Insurance Company is located in Milwaukee, WI. Unimerica Life Insurance Company of New York is located
in New York City, NY. UnitedHealthcare Critical Illness product is provided by UnitedHealthcare Insurance Company on UHICI-POL (09/03). Coverage may
not be available in all states. UnitedHealthcare Insurance Company is located in Hartford, CT. 2011 United HealthCare Services, Inc. Insurance coverage
provided by UnitedHealthcare Insurance Company or its afliates. Administrative services provided by United HealthCare Services, Inc. or their afliates.
Health Plan coverage provided by or through a UnitedHealthcare company. UHCEW551986-001
DENTAL. VISION. LIFE. DISABILITY. CRITICAL ILLNESS. BENEFITS TO HELP YOU GROW HEALTHY.
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December 2011 HR Magazine 13
HR News

For the latest HR-related business and government news, visit www.shrm.org/hrnews
Occupy Protests May
Lead to Workplace Upset
C
ould employees who participate in the
Occupy Wall Street protests risk losing
their jobs? In certain circumstances, yes.
Public radio host Lisa Simeone told
the Baltimore Sun that she had been fired
by the public radio series Soundprint
because series executives saw her work as a
spokeswoman for one of the groups involved
in the Occupy DC movement as a violation
of the series producers ethical code.
National Public Radios (NPR) ethics
code states that NPR journalists may not
participate in marches and rallies involving
issues that NPR covers.
Look to State Law
Some states, such as California, Colorado,
New York and North Dakota, protect
employees from being fired for lawful,
off-duty activitybut most dont, according
to Peter Gillespie, an attorney with the
Chicago office of Fisher & Phillips.
If an employer is doing business in a state
without such a law and concludes that an
employees conduct outside of the workplace
conflicts with the companys culture and
values, the employer is within its legal rights to
fire him or her, Gillespie said.
Is This a Good Idea?
An employer should look very carefully
before firing someone for their political
views, Gillespie warned. Can they point
to an effect on the workplace or some
other business reason they are making this
decision?
In addition to possible legal ramifications,
employer action of this type can create morale
or public relations issues, he continued. It may
not be the best idea to say you dont want
someone with a particular political point of
view, especially if you are trying to foster a
diverse culture in the workplace.
By Joanne Deschenaux, J.D., senior legal editor for
SHRM.
If Youre Going
To Call in Sick,
Do It with Style
Give them credit for creativity. Employees
have given some amazing reasons for
taking sick days.
Like the chef who called in sick
because he was allergic to food.
He had pre-existing allergies he
chose not to disclose, said Debby
Carreau, president and chief consultant of
Inspired HR in Calgary, Alberta, Canada.
He was moved to a role where he didnt
touch food, she said.
A CareerBuilder online survey
conducted in late summer unearthed
other unusual reasons for taking a sick
day. For example, the employee:
Was hit on the head when a bucket
filled with water crashed through the
ceiling of a bowling alley.
Was bitten by a deer while hunting.
Fell out of bed and broke his nose.
Hurt his back chasing a beaver.
Had to go to the hospital after acci-
dentally drinking antifreeze.
Got his toe caught in a vent cover.
Caught a cold from a puppy.
Got sick from eating too much at a
party.
Developed a headache from attending
too many garage sales.
Then theres Eric Walker, HR
manager at BestEssayHelp, who got a call
from an employee who said she was sick
because shed watched her hamster give
birth and had passed out.
Perhaps a new employee benefit
could be hamster midwives?
By Kathy Gurchiek, associate editor for HR News.
Occupy Wall Street protesters at Zuccotti Park in New
York City.
Forecast: Tech Positions See Highest 2012 Pay Gains
Overall, starting salaries in the United States will increase an average of 3.4 percent in 2012,
according to staffing company Robert Half International. A sample of increases in some fields:
Job Field
Starting Salary
Increase Sought-After Skills
Information Technology 4.5% Systems and network engineering;
mobile application developing
Accounting and
Finance
3.5 Financial and business systems
analysis; corporate tax law experience
Creative and Marketing 3.5 User experience design
Administrative and
Office Support
3.4 Increase efficiencies; project support;
customer service
Legal 1.9 Litigation; labor and employment;
real estate and corporate law
001100111100111100
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14 HR Magazine December 2011
Bosss Job Safe: Most
Workers Dont Want It
M
ost workers arent eyeing their managers job, according to a recent
survey of U.S. office workers.
More than three-fourths of 431 workers polled by phone in August
said they were not interested in taking on that role, and nearly two-thirds
didnt think they could do a better job than their boss. Among the workers
surveyed, those between the ages of 18 and 34 were more likely, at 35 percent,
than other age groups to want their bosss job.
A similar survey, conducted in September with 648
Canadian office workers, found that slightly more than half
did not want the bosss job and that half believed they could
do a better job than their boss. Canadians ages 18 through
34 were more likely, at 29 percent, than other age groups to
want their bosss job.
Many aspects of management involve making difficult,
sometimes unpopular decisions, and not everyone is
comfortable in this role, stated Robert Hosking, executive
director of OfficeTeam, the staffing agency for administrative
professionals that created and commissioned the surveys.
Being a strong individual contributor does not
necessarily equate to being an effective leader, Hosking
said in a news release. The most successful bosses excel at motivating others
to achieve great results.
SHRM Online staff
For full versions of these articles and others,
visit www.shrm.org.
Briefs
Costs Covered by Insurance
Up 7.9 Percent
Data released for the S&P Health Care Economic
Composite Index indicate that the average per capita
cost of health care service covered by the commer-
cial insurance and Medicare programs in the United
States increased by 5.73 percent during the 12
months ending in August. Health care costs covered
by commercial insurance rose by 7.89 percent during
the year ending in August, increasing for the fourth
consecutive month. Medicare claim costs, however, hit
a new low, rising at an annual rate of 2.16 percent.
IRS Raises Retirement Plan
Contribution Limits
The U.S. Internal Revenue Service has announced cost-
of-living adjustments affecting dollar limits for defined
contribution and defined benefit retirement plans
and other retirement-related items for tax year 2012.
Among the changes effective Jan. 1, 2012:
The contribution limit for employees who participate
in 401(k) plans, 403(b) plans, most 457 plans
and the federal governments Thrift Savings Plan
increases from $16,500 to $17,000.
The catch-up contribution limit for those 50 and
older remains unchanged at $5,500.
The overall limit for defined contribution plan defer-
rals from employer and employee sources increases
from $49,000 to $50,000 per participant.
Employers Plan
Lean Pay Increases
Given the uncertain economic outlook and the stubborn
unemployment rate, American workers can expect
pay raises averaging only 2.8 percent in 2012, vs. 2.7
percent in 2011 and 2.9 percent in 2010, according
to a survey by Buck Consultants. Other recent projec-
tions forecast raises between 2 percent and 3 percent.
Average executive promotion increases are expected
to range from 5.7 percent for C-suite employees to 7.3
percent for employees at the vice president level.
Leadership Traits
Integrity
Sound judgment
Diplomacy
Adaptability
Communication skills
Listening skills
Influence
Source: OfficeTeam.
Job Seekers Get Boost
From Social Media
F
acebook, the U.S. Department of Labor, the National Association of
Colleges and Employers, and other groups are joining forces to create a
Social Jobs Partnership to facilitate employment for Americas jobless
through the use of social networks.
Weve brought employers, recruiters,
college career services and government
agencies together to help millions of
Americans who use Facebook [to] find
jobs said Marne Levine, Facebooks vice
president of global public policy.
Initiatives include the following:
A Facebook page, www.facebook
.com/socialjobs, features resources and
content for job seekers and employers.
Public service announcements on
Facebook promote the page in the 10
states with the highest unemployment rates and in Puerto Rico.
Surveys will be conducted on how job seekers, colleges and recruiters use
the social web.
Systems will be developed to deliver job postings virally through
Facebook for free.
Government programs and resources are promoted.
Educational materials are distributed.
SHRM Online staff
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December 2011 HR Magazine 15
HR News

How the Moneyball Approach


Could Be Applied to HR Methods
A
pplying the metrics-heavy recruit-
ing technique that the Oakland
Athletics General Manager Billy
Beane used in the movie Moneyball
has piqued the interest of some analytics-
centric HR professionals.
In the book Moneyball (W.W. Norton
& Co., 2003), written by former bond
salesman Michael Lewis, Beane is
forced to rethink how he scouts and
hires baseball players because his small-
market team cannot afford to outspend
much wealthier teams like the New
York Yankees and the Boston Red Sox
on free-agent signings. Instead, Beane
and his assistant apply measurement
techniques from the financial world
to unearth baseball players that other
managers undervalue.
Instead of paying top-dollar for
homerun hitters or players who get
scouts high yet subjective good
marks, Beane seeks lower-cost
players with high on-base
percentages and those who force
opposing pitchers to throw more
pitches. Turns out these metrics
correlate better with games won
than do traditional individual
statistics and a scouts gut feel.
HR is ripe for a similar
revolution, said Ravin Jesuthasan,
a Chicago-based Towers Watson
managing director. Analytical
tools such as return on improved
performance curves can help organi-
zations analyze where improving
performance of talent in different roles
really makes a difference to the organi-
zation and the types of HR investments
that are most effective in improving that
performance.
Some of the most popular selection
methods, such as experience and
unstructured interviews, are less valid
than some less popular methods, such
as intelligence testing and structured
interviews, said Thomas Timmerman,
SPHR, professor of business
management at Tennessee Technological
University in Cookeville. Timmerman
wrote an academic paper on the
application of Moneyball insights to HR.
He cites research that shows experience
becomes a weaker (and less valuable)
predictor of performance over time, but
cognitive ability becomes a stronger (and
more valuable) predictor of performance
over time.
By Eric Krell, a freelance writer based in Austin,
Texas.
HRIS Features Get More Strategic
T
he human resource information
system (HRIS) is the industrys
venerable employee system of
record, housing core information such as
payroll, benefits, hours worked and com-
pliance data efficiently.
Now, however, features are available
to help transform these systems from data
repositories into tools for strategic talent
analyses.
The HRIS of old was designed to meet
payroll needs first and human capital
needs second, said Jason Averbook, chief
executive officer of Knowledge Infusion,
a Minneapolis-based human resource
consulting firm.
But these next-generation HRIS
platforms, which often include more
talent management components, flip that
formula.
The desire of most HR leaders no
longer is just to count heads but rather
to truly understand what employees are
made of, identify their best recruiting
sources, determine what current skill
sets look like, assess peoples potential
for promotion and more, Averbook
said.
Todays
technologies
create options for
integrating talent
management systems
such as recruiting,
performance
management and
learning management with the core
HRIS mother ship.
Integration allows you to more
easily create reports like how many
people [who were] onboarded through
process X vs. process Y end up in your
high-potential channel, or to examine
how well managers did in international
assignments after going through certain
training or development programs, said
Katherine Jones, principal analyst and
research director at Bersin & Associates,
an HR research and consulting firm
in Oakland, Calif. It allows you to
measure things far beyond time-to-hire.
By Dave Zielinski, a freelance business journalist in
Minneapolis.
Most HR leaders no longer just count
heads, they seek to truly understand
what employees are made of.
Moneyball star Brad Pitt.
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16 HR Magazine December 2011
Draft Dodgers Claims
Reach U.S. Supreme Court
A
law barring men who fail to register with the U.S. Selective Service from fed-
eral agency employment violates the Constitution, according to four men who
have persuaded the U.S. Supreme Court to review the law this term. The case
is Elgin v. Department of the Treasury.
The four men claimed that the law was a bill of attainderan act of a legislature
that declares a person or group guilty of a crime without benefit of a judicial trialand
violated their constitutional rights to equal protection on the basis of sex.
Two men worked for the U.S. Internal Revenue Service when the agency
discovered and reported to the Office of Personnel Management that they had failed
to register for the draft between the ages of 18 and 26. Both said they didnt know
they had to register.
Another man was a
wildfire fighter for the
U.S. Forest Service
who said he thought
he had registered, but
the Selective Service
reported that it could
not find a record for
him. A fourth plaintiff
worked at the Federal
Deposit Insurance
Corp. as a financial
institution specialist.
Each agency asked the Office of Personnel Management to reconsider its decision
to deny them employment, but the agency refused.
The district court dismissed the equal protection claim and determined that
the law, 5 U.S.C. 3328, was not a bill of attainder. The 1st U.S. Circuit Court of
Appeals held that the Civil Service Reform Act was the exclusive remedy for federal
employees, noting that the circuits were split on this question. The appeals court
concluded that the district court lacked jurisdiction over the claims.
By Allen Smith, J.D., manager of workplace law content for SHRM.
Reporting
Requirements
Eased For
Union Employees
The U.S. Department of Labors final rule for the
LM-30 form, the labor organization officer and
employee report, eased the disclosure of financial
information for union officers and employees.
Issued on Oct. 26, the rule has five changes:
The elimination of reporting of union leave and
no docking payments and, more broadly, a
revised interpretation of the bona fide employee
exception.
The removal from coverage of individuals serv-
ing as union stewards or in similar positions
representing the union, such as a member of a
safety committee or a bargaining committee.
The elimination of reporting for certain bona
fide loans and other financial transactions on
Parts A and B of the form.
The limitation on reporting of payments from
employers competitive to the represented
employer, certain trusts and unions.
A revision of the reporting required of national,
international and intermediate union officers
and employees.
Allen Smith
Report: Paid-Leave Policies Do No Harm
In Competitive Economies
R
esearchers have found that work-
place policies such as paid maternity
and paternity leave and paid leave to
care for sick children exist in countries that
are economically competitive and have
low unemployment rates, contradicting
the argument that costs associated with
paid leave would reduce employment and
undermine the international competitive-
ness of U.S. businesses.
Authors of The Future of Children, a
collaborative report between Princeton
University and the Brookings Institution,
identified 15 countries, including the
United States, that were among the top
20 countries in competitiveness rankings
for at least eight of the 10 years ending
in 2008. To this group they added China
and India, rising competitors in the global
economy. The authors found that every
one of these countries, except the United
States, guarantees some form of paid
leave for new mothers as well as annual
leave, and all but Switzerland and the
United States guarantee paid leave for new
fathers.
U.S. policies on parental leave, sick
leave, vacation days and days of rest are
often in sharp contrast to other developed
and developing countries, the authors
found. The analysis suggests that
guaranteeing paid parental leave as well
as paid leave when a child is sick would
be feasible for the United States without
jeopardizing its highly competitive
economy or low unemployment rate in the
future.
By Roy Maurer, a staff writer for SHRM.
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HRMagazine
December 2011 HR Magazine 17
HR News

New California Governor


And New YearMean
New Laws for Employers
I
n 2011, California Gov. Jerry
Brown signed many employment
laws that take effect Jan. 1, 2012.
These include the following:
AB 22 prohibits employers, other
than certain financial institutions,
from obtaining consumer credit
reports for employment purposes
unless the person for whom
the report is sought works in a
statutorily enumerated position.
AB 1236 prohibits the State of
California or a political subdivision
from requiring an employer to use
the federal E-Verify system, except
when required by federal law or as a
condition of receiving federal funds.
AB 469 amends a number of
Labor Code provisions to impose
penalties for employer violations of
wage laws, and creates notice and
document retention requirements for
employers.
SB 459 expressly prohibits
the willful misclassification of
an employee as an independent
contractor.
For state workplace law developments, visit
www.shrm.org/LegalIssues/StateandLocalResources.
State Law Briefs
IN GEORGIA, NONLAWYERS MAY
NOT ANSWER GARNISHMENTS
In the past, employers commonly resorted to their
human resource or payroll departments to handle
routine garnishments. But, the Georgia Supreme Court
has ruled that a nonlawyer, such as a payroll clerk or
HR employee, who answers a Georgia garnishment is
engaged in the unlicensed practice of law, effectively
requiring all Georgia businesses without an in-house
legal department to hire outside counsel to review and
respond to garnishment actions.
NO WHISTLE-BLOWER PROTECTION
FOR SOME MASS. COMPLAINERS
Internal complaints raising general concerns about
policy and potential safety threats did not fall within
the public policy exception of the right to fire at-will
employees in Massachusetts, the Superior Court of
Massachusetts ruled. This reinforces employers right
to terminate an employee for almost any reason or for
no reason at all, and makes clear that the exception to
the at-will doctrine is a narrow one.
WASH.: NO OVERTIME PAY FOR
MISSED REST BREAKS
Employees who miss state-mandated rest breaks
during their regular 40-hour workweek assignments
are not entitled to overtime compensation for the
missed rest breaks, according to a Washington appel-
late court. It held that the plaintiffs were entitled only
to straight-time compensation under the Washington
Minimum Wage Act because they did not work in
excess of 40 hours during the week they missed a rest
break.
FROM THE STATES
AB 887 makes technical changes
to the Fair Employment and
Housing Act to specifically identify
gender, gender identity and gender
expression as characteristics
protected under the act.
SB 559 prohibits employment
discrimination on the basis of
genetic information.
SB 299 prohibits employers
from refusing to maintain and pay
for coverage under a group health
plan for an employee who has taken
job-protected pregnancy-related leave
from work.
AB 592 amends the California
Family Rights Act and Pregnancy
Disability Leave to make it an
unlawful employment practice for
an employer to interfere with, or
restrain the exercise or attempted
exercise of, any right provided to an
employee under these laws.
By Michael S. Kalt, shareholder at Wilson,
Turner Kosmo LLP in San Diego and vice
presidentlegislation for the San Diego Chapter
of SHRM.
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HRMagazine
18 HR Magazine December 2011
Executive Brieng
Aim to Serve
B
usiness leaders often think a customer service survey will provide them with
all the information they need to ensure that their customers are satisfied.
However, unhappy customers may not be able to pinpoint what needs to
be changed.
Customers cant tell business leaders how the companys internal struc-
ture, operational policies, procedures and attitudes help or hurt employees
ability to provide good servicebut employees can, says Benjamin Schneider,
a senior research fellow with Valtera, a talent management consulting service
based in Rolling Meadows, Ill.
By asking employees what contributes to or detracts from their ability to
deliver excellent service to customers, HR professionals can lead the way to
ensure a positive service climate in the workplace. In turn, this will lead to
greater customer satisfaction and profits, Schneider says.
People would rather do a good job than a bad job, Schneider says.
And, if we can find out the things they need to do a good job, and we pro-
vide them with it, they will actually do that.
In Driving Customer Satisfaction Through HR: Creating and Maintaining a Ser-
vice Climate, Schneider and co-author Karen M. Barbera, senior vice president
and managing principal at Valtera, suggest the following steps for HR profes-
sionals who want to create a positive service climate:
Ensure that employees have the training to do the difficult
interpersonal work that service requires.
Give employees the proper tools to deliver quality service.
Give customer-facing employees the same high-level service given
to customers.
Use recognition and reward systems to emphasize excellent service.
Set goals for customer satisfaction along with actions needed to
achieve those goals.
Ensure that managers are proper role models, and hold them
accountable if they arent.
HR can be a strategic leader in improving companies customer service
satisfaction by ensuring their policies, practices and procedures produce the
behaviors that get rewarded, are supported and are expected to produce a
superior service climate, the report states.
The report is a collaborative research effort by the Society for Human
Resource Management and the Society for Industrial and Organizational
Psychology.
By Dori Meinert
Drinking Dangers
With holiday parties approaching, employees
should be warned about the serious repercus-
sions that come with over-imbibing. Their reputa-
tions and even their careers can suffer.
In a recent survey, 52 percent of 870
employees responding said they had seen some-
one under the influence of alcohol exhibit inap-
propriate and even dangerous behaviors during a
work-related outing. The behaviors ranged from
flirting with a supervisor to driving drunk.
The popularity of social networking increases
the risk. Fifty-six percent of the respondents said
their co-worker or friend suffered consequences
when the inappropriate behavior became public
through information or photos distributed via the
Internet.
We are living in stressful times, and many
people turn to alcohol at parties to reduce the
anxiety and escape their daily pressures, says
Harris Stratyner, an addiction psychologist and
regional clinical vice president at Caron Treat-
ment Centers in New York City. In many cases,
this behavior is the sign of a more serious prob-
lem, such as alcoholism, which requires immedi-
ate professional treatment.
The online survey was conducted in Sep-
tember by Harris Interactive on behalf of Caron
Treatment Centers.
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HRMagazine
Individual coverage underwritten and offered by American Family Life Assurance Company of Columbus. In New York, coverage underwritten and offered by American Family Life Assurance Company of New York.
Some policies may be available as group policies. Group coverage underwritten and offered by Continental American Insurance Company. Policies may not be available in all states. Aac pays cash benets direct
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competitors. Aac is like a safety net, helping pay costs that major medical doesnt cover;
and we pay claims in an average of four days, speeding your benets into victory lane.
Because when it comes to your employees and their families, second place isnt good enough.
Race over to aac.com/paysfast and get started.
pit stops. When it comes to claims, no one likes
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HRMagazine
20 HR Magazine December 2011
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Solutions
abilities Act (ADA) went into effect in May.
These regulations expand the definition of
the term disability, which should result in
employers focusing more on their responsi-
bilities for accommodating employees.
The EEOCs recommended interac-
tive accommodation process still involves
reviewing essential job functions and
determining how the employees disabil-
ity impacts his or her ability to perform
them. In addition, the Society for Human
Resource Management has developed a
guide on How to Handle an Employees
ADA Request for Reasonable Accom-
modation to assist employers with the
accommodation process.
Once employers have completed the
interactive process and provided accom-
modation, some may think no further
action is needed. Employers may become
frustrated when, after spending time
and money providing accommodations,
employees continue to wrestle with perfor-
mance problems. At this juncture, employ-
ers may need to ask if it is necessary to
revisit the interactive process.
Perhaps the basis for the performance
problem is a knowledge or skill deficiency
and additional coaching or training is
needed. Or perhaps a transfer to another
vacant position needs to be explored. The
ADA permits all of
these options. Once
the interactive accom-
modation process
has been completed,
employees with dis-
abilities may be held to
the same performance
and conduct standards
as other employees,
as outlined in the EEOC guidance titled
Applying Performance and Conduct
Standards to Employees with Disabilities.
Deb Levine
Are employers required under the Americans with Disabilities
Act to accommodate someone who cant perform essential job
functions? What if the employer provides an accommodation
and the employee still has problems doing the job?
A
n employer may need to accommodate someone who cant perform essential job
functions. Guidance from the U.S. Equal Employment
Opportunity Commission (EEOC) indicates that employ-
ers are required to provide reasonable accommodation to quali-
fied individuals with disabilities who are employees or applicants
for employment, except when such accommodation would
cause an undue hardship. Further, employees must possess the
knowledge, skills and abilities to be able to perform the essential
job functions with or without reasonable accommodation.
Essential job functions are those critical elements that
must be performed to achieve the objectives of the job.
When employees with disabilities have difficulty performing essential job functions,
employers should first consider what, if any, reasonable accommodations might be
necessary.
New federal regulations implementing the 2008 amendments to the Americans with Dis-
Online Resources
For additional questions and answers
and more information about topics in this
column, please go to www.shrm.org
/templatestools. For answers to your own
questions, visit www.shrm.org/hrinfo or
call (800) 283-7476, option 5.
Disability Accommodations,
Unemployed Applicants, Sustainability
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HRMagazine
December 2011 HR Magazine 21
What is corporate sustain-
ability, and how can HR help
make a business case for it?
C
orporate sustainability, also known
as corporate social responsibility or
corporate citizenship, contributes
to sustainable development by working
to improve quality of life with employees,
their families, the local community and
stakeholders up and down the supply
chain, according to the World Business
Council for Sustainable Development,
a Geneva-based global association of
companies. Since sustainability can affect
nearly all aspects of company operations,
including energy sources, consumer
habits, government regulations and job
marketsmost of which are changing
constantlyHR professionals can play
a significant role in their organizations
sustainability strategies.
Frequently within organizations,
the movement grows organically and
without any clear functional leader. HR
professionals have an opportunity to step
up and fill the sustainability leadership
role. HR already works with the organi-
zations human capital and collaborates
with other functions daily. Negotiations,
recruitment, retention, morale, produc-
tivity, recognition and rewards, and
innovation are all major components of a
sustainability strategy. HR professionals
have the opportunity to sit at the table
with other executives to find the balance
between profit and the desire to simply
do good for society.
One way for HR professionals to
make the case for a sustainability plan
might be to use quantitative terms,
explaining how sustainability will pro-
vide financial benefits to the company.
The other side of the equation can be
argued in qualitative terms, such as how
it will benefit society and how it will
boost the companys reputation.
First, understand what corporate
social responsibility means for your com-
pany. This will lay the foundation for the
business case. Get plugged into what-
ever group may already be driving such
activities, and look for ways to improve
what is already being done. The case for
sustainability may differ across industries
and companies, but HR professionals
roles can be applied across most organi-
zations.
HR can assist by:
Building a team of employees respon-
sible for sustainability objectives and hir-
ing external help, such as consultants or
interns, as needed.
Conducting interviews at all levels of
the organization to gather data.
Creating an internal network of peo-
ple with access to key financial data.
Helping to develop, market and foster
the employer brand.
Connecting all parties so that everyone
executes the same business strategy.
By creating the framework for sus-
tainability, HR professionals help unlock
future opportunities for the company.
More important, HR can help make the
case for sustainability in a way that all
stakeholders will understand, stressing
that its the right thing to do and will pay
off in the long run.
Inga Fong
Deb Levine, SPHR, Angie Collis, SPHR, GPHR,
and Inga Fong, PHR, GPHR, are HR knowledge
advisors in SHRMs HR Knowledge Center.
A manager wants to advertise
for a position and would like
to include in the qualifications
that applicants must be cur-
rently employed. Can we do
this?
B
elieve it or not, this is fast becom-
ing a popular phrase in recruitment
ads. This requirement has raised
eyebrows among HR professionals and
was even the focus of a 2011 U.S. Equal
Employment Opportunity Commission
hearing. Bills have been introduced in
Congress that would prohibit employers
from considering an applicants status as
unemployed in filling job openings. Ad-
ditionally, several states have introduced
similar legislation and the practice has
been outlawed in New Jersey.
Even in the absence of current federal
law barring discrimination against the
unemployed, employers should proceed
cautiously in excluding those who are not
working from applicant pools. Title VII of
the Civil Rights Act of 1964 protects indi-
viduals from employment discrimination
based on race, ethnicity, religion, gender,
disability, age, national origin and veteran
status. Even though unemployed people
are not a protected class under federal law,
an ad of this type arguably might give rise
to a claim of disparate impact. For exam-
ple, if a particular applicant market had
a disproportionate number of minorities
who are out of work compared to non-
minorities, restricting the pool to
employed individuals could have a dispa-
rate impact on minority applicants.
Many employers, particularly those
in high-tech industries, claim a legitimate
business reason for having a policy of fill-
ing open positions with individuals who
are already employed. If someone has
been out of work for a year, that person
arguably might not have the skills neces-
sary for a particular job, such as being
well-versed with particular technology or
equipment.
While this advertising is drawing
attention, it may not be the attention your
organization is seeking. It can cause job
seekers to question the ethical nature of
your organization. In this age of uncertain
job prospects, applicants are looking for an
employer with a heart, and may be more
likely to pass on jobs with companies that
are perceived as not caring about their
employees and communities.
A recruiters goal for an organization
is to hire the best person to do the job.
By excluding the unemployed from the
applicant pool, some of the most viable
candidates might be overlooked, especially
given the current historic unemployment
rates. In todays uncertain economy, even
outstanding, dedicated and loyal employ-
ees are being laid off.
When hiring, focus on the skills,
education and experience necessary to
perform the job. It is generally considered
poor practice to exclude a candidate for
a personal reason or a reason that is not
job-related. And while employers are cer-
tainly encouraged to investigate a potential
employees background and past employ-
ment, it may not be a good practice to deny
employment opportunities to individuals
based on their current employment status.
Angie Collis
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22 HR Magazine December 2011
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HRMagazine
December 2011 HR Magazine 23
A
sk any good HR professional what factors contribute to job satisfaction among
employees, and you will get a thoughtful, researched answer. Ask that same
HR professional what factors contribute to his or her own job satisfaction, and
you are likely to get the same answerbut probably only because HR profes-
sionals have thought more about their employees than themselves.
Recent research by the Society for Human Resource Management (SHRM) reveals
that HR professionals generally have different drivers of satisfaction than their work-
forces. Moreover, there are wide gaps between what is important to them and their sat-
isfaction levels with those elements.
SHRM researchers polled a statistically valid sample of 600 employees in 22 indus-
The author is a contributing editor and former managing editor of HR Magazine.
December 2011 HR Magazine 23
By Adrienne Fox
Data show what makes HR
professionals tickand it
may surprise you.
What You
Like About
Your Job
Cover Story
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24 HR Magazine December 2011
tries for the just-published 2011 Employee Job Satisfaction and
Engagement research report. For HR Magazine, they asked the
same questions and studied responses from a separate survey
of 504 HR professionals. The results, found in SHRM Research
Spotlight: HR Professionals Job Satisfaction and Engagement, may
provide insight into your own career and suggest personal and
professional goals for you and your staff.
Less About the Benjamins
The research found that HR professionals have very different
factors for satisfaction than the rest of the employee population,
according to Mark Schmit, SPHR, vice president of research at
SHRM in Alexandria, Va.
While compensation consistently ranks in the top five for
employees, it ranks 17th out of 26 aspects affecting whether HR
professionals are satisfied at work. In most job satisfaction sur-
veys of all employees, including ours, compensation is always
near the top, Schmit notes.
Are HR professionals so well-paid that compensation
becomes a nonfac-
tor when it comes
to satisfaction? Not
exactly. Compen-
sation is ranked so
low because HR
professionals love
their jobs and view
it as a calling rather
than just a job that pays the bills, Schmit says.
The top factors contributing to job satisfaction for HR pro-
fessionals: Having opportunities to use their skills and abilities,
followed by relationships with their supervisors, communication
between employees and senior management, the work itself, and
autonomy to make decisions, according to SHRMs survey.
However, less than half of the HR professionals who
responded reported feeling very satisfied with each of the fol-
lowing factors:
The relationship with their supervisor (48 percent).
Having opportunities to use their skills and abilities
(41 percent).
The work itself (40 percent).
The autonomy to make decisions (36 percent).
Communication (21 percent).
The third-ranked aspect, communication between employ-
ees and senior management, registered the largest gap between
importance and satisfaction48 percentage points. The most
important aspect, opportunities to use skills and abilities, had the
second-largest gap42 percentage points. HR professionals
feel like they have a lot more to offer than what is being used by
senior management, Schmit says. While they may be helping
others use their full potential and are facilitating communication
Cover Story
Online Resources
To discuss HR job satisfaction, and for
more information, see the online ver-
sion of this article at www.shrm.org/
hrmagazine/1211Fox.
SHRM researchers surveyed 504 HR professionals on
satisfaction relating to the following 26 job attributes,
resulting in the following ranking:
Job Satisfaction Aspects
1. Opportunities to use skills and abilities.
2. Relationship with immediate supervisor.
3. Communication between employees and senior
management.
4. The work itself.
5. Autonomy and independence.
6. Overall corporate culture.
7. Organizations financial stability.
8. Organizations commitment to professional development.
9. Flexibility to balance life and work issues, such as alternative
work arrangements.
10. Benefits.
11. Management recognition about your job performance.
12. Job security.
13. Contribution to organizations business goals.
14. Career development opportunities.
15. Career advancement opportunities.
16. Feeling safe in the work environment.
17. Compensation and pay.
18. Job-specific training.
19. Meaningfulness of job.
20. Variety of work.
21. Relationships with co-workers.
22. Paid general training and tuition reimbursement programs.
23. Networking opportunities.
24. Organizations commitment to a diverse and inclusive
workforce.
25. Organizations commitment to corporate social responsibility.
26. Organizations commitment to a green workplace.
Source: SHRM Research Spotlight: HR Professionals Job Satisfaction and Engagement.
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HRMagazine
December 2011 HR Magazine 25
among employees and management, HR professionals are not
fulfilled themselves.
The job satisfaction scores of HR professionals who are
hourly or nonexempt employees align more closely with the
scores of general employees, according to Schmit. For instance,
They look for recognition to motivate them, whereas high-level
HR professionals dont need that; the work itself is recognition
enough.
What Makes HR Tick
The data come to life in interviews with HR professionals.
Carla Wiggins, HR director and sole practitioner at Livings-
ton Hospital and Healthcare Services in Salem, Ky., has worked
there for 26 years. Satisfaction for Wiggins comes down to two
things: her relationship with senior
management and the work. I am a
valued member of the senior man-
agement team, and I have a voice
here, she says. The work itself is
interesting because it is constantly
changing in regard to laws and
employee relations.
Compensation is important, but
it isnt a big factor in satisfaction,
Wiggins adds. At the beginning of
her career, gaining experience for
her resume was the main motiva-
tion. But over the years, mentoring younger professionals and
seeing them succeed has been rewarding. Wiggins has many sto-
ries about employees who have succeeded within or outside her
organization, due to her tutelage.
Abbi Olsen, assistant vice president of HR at Peoples State
Bank of Bloomer in Wisconsin, has been in her role for one year
and has an unusual perspective, having come from a marketing
background. Olsen is more satisfied in HR because she is deal-
ing with internal customersemployees. I get to see my impact
internally vs. working externally with customers, she says. I
can see how the employees change and grow firsthand, whereas
customers come and go. A product development person works
on a product for years and then puts it in the marketplace and
doesnt get to go to every buyers home to see how the product
affects the buyer. I get to see my customers daily and see how my
work affects them.
Listen to Dave Reid, PHR, talk about the profession, and its
clear that its all about the work. HR evolves and progresses,
and you are always finding new ways to deliver, says the HR
manager at Cameron International, an oil and gas equipment
manufacturer in Lafayette, La. Its always interesting. I can do
HR at a manufacturer and have different issues there than at a
high-tech firm with a younger workforce. You have to assess and
change how you deliver HR depending on your workforce needs,
the demographics or the industry. Thats interesting and chal-
lenging to me.
Compensation is a necessity, of course, he adds, but its not
what gets me out of bed early every day. I get to see how my deci-
sions affect people on the line almost daily. You go home feeling
very satisfied if something you did had a profound impact on
your employees. You also see very quickly when something goes
wrong, and you can course-correct it quickly, too.
As a middle manager in HR, Reid will evaluate future oppor-
tunities based on whether there is access to senior management.
His sentiments are in line with the SHRM survey findings: Mid-
dle HR managers first look for opportunities to use skills and
then seek relationships with their immediate supervisors. Senior-
level HR executives ranked opportunities to use skills at the top
but said communication between employees and senior manag-
ers was the second-most important aspect to satisfaction.
Reid says HR managers looking to recruit and retain key
HR professionals should provide challenging work, along with
opportunities to work cross-functionally with other senior lead-
ers to see the organization from a strategic viewpoint.
Having an impact across all levels of the organization keeps
David Curtis coming back every day to his job as HR director
at WillowWood, a 100-year-old prosthetic limb manufacturer
based in Mount Sterling, Ohio. In 20 years, Curtis has seen the
profession evolve from administra-
tive to strategic. The most surprising
thing to me is how much coaching
and mentoring is involved, and it is
probably one of the most satisfying
parts of my job, he notes.
Using coaching skills also makes
HR satisfying to Cindy Zwickel,
SPHR, a training specialist at
Servpro Industries Inc., a cleaning
and restoration franchisor based in
Gallatin, Tenn. When you have
people who are really good at what
they do, finding ways to improve their skills and challenge them
can be challenging.
Zwickel says autonomy plays a role in her satisfaction, as do
connections and access to leaders across the organization. I like
I can see how the
employees change
and grow firsthand.
Carla Wiggins
Cindy Zwickel
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HRMagazine
26 HR Magazine December 2011
Cover Story
having the authority and the trust of senior
management to make decisions, but that all
goes out the window if access to leadership
is compromised. I see the two going hand in
hand. So, if I lost one or the otherautonomy
or access to managementthen I wouldnt be
satisfied.
What One Thing?
When asked to identify one job attribute that
would undermine their satisfaction, HR pro-
fessionals generally point to the work itself
or their impact through the support of senior
management.
If the work got boring or less challenging,
Zwickel says, it would be a detriment to her
satisfaction. But, she adds, challenging does
not mean overwhelming.
HR peopl e
can burn out eas-
ily because of the
immense pressure
to find good peo-
ple, motivate and
retain them, she
explains. For me,
challenging work
must have the sup-
port of the senior
management team
to make the pres-
sure bearable. That support helps maintain the
balance between being busy and challenged
and being stressed-out and overwhelmed.
Curtis has a similar perspective. The
ability to work closely with the CEO and do
strategic planning for the company is really
important at this stage of my career, he says.
Losing that would knock out a major pillar of
what makes this job worthwhile.
Olsen agrees that losing access to senior
management would drop her satisfaction
at the bank, noting that If you arent being
heard and are having no impact, then whats
the point?
Decoding Drivers
Valtera, a Chicago-based talent management
consulting firm, has collected data annually on
how employees value 27 attributes of the work
environment. In this years analysis, com-
What drives HR professionals is different from what drives the general employee population. The percentages
compare very important aspects of job satisfaction based on responses from 502 HR respondents and 598
general employees in the United States.
HR Satisfaction Drivers
Source: SHRM Research Spotlight: HR Professionals Job Satisfaction and Engagement and SHRMs 2011 Employee Job Satisfaction and
Engagement survey.
Opportunities to use skills and abilities
Relationship with immediate supervisor
Communication between employees and senior management
The work itself
Autonomy and independence
Overall corporate culture
Organizations nancial stability
Organizations commitment to professional development
Work/life exibility
Benets
Management recognition of employee job performance
Job security
Contribution to organizations business goals
Career development opportunities
Career advancement opportunities
Feeling safe in the work environment
Compensation and pay
Job-specic training
Meaningfulness of job
Variety of work
Relationships with co-workers
Paid general training and tuition reimbursement programs
Networking opportunities
Organizations commitment to a diverse and inclusive workforce
Organizations commitment to corporate social responsibility
Organizations commitment to a green workplace
Very Important
Employees HR U.S.
83%
62%
46%
65%
52%
66%
53%
68%
53%
69%
55%
79%
49%
58%
53%
59%
38%
59%
36%
60%
55%
64%
35%
47%
33%
50%
54%
51%
48%
51%
36%
51%
33%
52%
33%
54%
63%
57%
24%
26%
37%
40%
38%
45%
32%
47%
17%
10%
28%
32%
22%
35%
David Curtis
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HRMagazine
December 2011 HR Magazine 27
pleted in February, Valtera segmented the
responses by HR professionals. Valtera did
not disclose the size of the sample.
Unlike the SHRM survey, Valteras
research focuses on engagement drivers
rather than job satisfaction. Job satis-
faction captures whether an employee is
content or gratified in their jobs, whereas
engagement captures what makes the
employee go above and beyond the basic
job duties, explains Kyle Lundby, a direc-
tor at Valtera in Durham, N.C.
Still, the results are similar. Less-
tenured HR professionals tend to have
engagement drivers in line with other
professions, such as having a good rela-
tionship with their supervisors and hav-
ing opportunities to grow, notes Wayne
Lee, research consultant at Valtera. The
engagement drivers of HR professionals
with longer tenures differ slightly in that
they look for alignment between their val-
ues and the organizations as well as wanting a good relationship
with upper management.
The matchup between what the employee wants and what
the organization offers is what Valtera calls the employee value
proposition.
Employees have their own values they use to evaluate
whether to stay or leave the organization based on what the
organization offers employeessuch as culture, benefits and
career development opportunities, Lundby says.
He explains that values attract employees and engagement
drivers retain and motivate them.
Values such as pay, benefits and job security attract HR
professionals, but opportunities to grow and use skills, innova-
tion and organization stability are what retain and energize HR
professionals, he says. To hang on to key HR professionals,
organizations need to focus on the engagement drivers.
Lundby encourages HR professionals to examine what drives
them. Self-reflect on what engages me, whether it is the oppor-
tunity to grow or interesting work or using my skills and abili-
ties, he suggests. Investigate the organization beyond the tools
used to attract me, such as pay, benefits or flexibility, and deter-
mine whether the company offers the things that energize and
engage me.
Taking Stock
The SHRM data provide a snapshot of what your HR colleagues
in other organizations say is most important to their satisfaction
and to what extent they are finding those elements in their orga-
nizations. The gaps between importance and satisfaction levels
can provide a road map of where to focus efforts. Those gaps
can help determine what they can work on or whether they are
faring better or worse than their colleagues, Schmit says. You
may discover youre not alone in feeling like your
skills and abilities arent being used to their full-
est. In other words, maybe the grass isnt always
greener somewhere else. Once you realize that,
focus on what you can do to improve the situation
at your organization.
Schmit advises senior-level HR profession-
als to use the SHRM survey results as discussion
points with staff members to find out whether they
are satisfied. When the SHRM researchers asked
HR professionals if they were likely to look for
another job this year, 42 percent said likely or very likely.
Senior-level management should look at that and pay atten-
tion to what factors uniquely attract and retain HR profession-
alsor risk losing them, Schmit says.
The data show the widest disconnects between whats most important to HR and
whats being fullled. About 440 to 502 respondents answered these questions.
Mind the Gap
Job Satisfaction Very Very
Aspects important satised Gap
Communication between employees and senior management 69% 21% 48
Opportunities to use skills and abilities in your work 83 41 42
The organizations commitment to professional development 60 23 37
Relationship with immediate supervisor 79 48 31
Job-specic training 50 19 31
Career advancement opportunities 51 20 31
Overall corporate culture 65 34 31
Autonomy and independence 66 36 30
Management recognition of employee job performance 58 28 30
Career development opportunities 52 23 29
Source: SHRM Research Spotlight: HR Professionals Job Satisfaction and Engagement.
Values attract employees,
and engagement drivers
retain and motivate them.
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HRMagazine
28 HR Magazine December 2011
Compensation
L
ike most U.S. workers, human
resource professionals didnt
see their paychecks grow much
in 2011. But the rewards were
considerably richer for some
especially executives who focus on quality
issues. Managers with expertise in orga-
nizational development and in compen-
sation and benefits also fared better than
most of their peers.
Overall, HR professionals received a
2.8 percent increase in base salary during
2011, according to results from Mercers
2011 Human Resources Compensation
Survey. Thats in line with the average sal-
ary increase for most working Americans.
However, percentage increases in
median total cash compensation for some
of the most common HR positions came
in well below that figure and included:
1.8 percent for compensation manag-
ers, to $116,600.
1.5 percent for HR directors, to
$153,500.
0.7 percent for senior trainers, to
$68,000.
0.5 percent for HR managers, to
$100,300.
In broader salary surveys, several orga-
nizations, including WorldatWork and
HR professionals in high-demand positions
see big salary gains in 2011; others lag.
By Joseph Coombs
The author is a specialist with the Workplace
Trends and Forecasting program at SHRM.
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HRMagazine
December 2011 HR Magazine 29
Hay Group, are calling for median sal-
ary increases of 3 percent in 2012. With
inflation rates that have been at or above
3 percent for the past several months,
according to the U.S. Bureau of Labor
Statistics Consumer Price Index, many
workers, including HR professionals,
could see virtually no net gains in com-
pensation in 2012, after their paychecks
are stacked against rising cost-of-living
expenses.
Top Earners
Not everyone in HR came up short during
2011, according to Mercers survey. HR
professionals skilled in quality manage-
ment were rewarded handsomely. These
executives work across departments to
help develop an organizations strategic
and operational plans with a focus on
quality assurance and control.
Those employed as top total quality
executives at the division level earned a
2011 median salary of $314,400, a signifi-
cant increase of 40 percent from $224,000
in 2010. HR professionals working as
top total quality executives at the corpo-
rate level earned 2011 median total cash
compensation of $261,100, an increase of
23 percent from $212,800 the previous
year.
Also earning large increases in 2011
were top HR management executives at
the division level with median total cash
compensation of $264,000, 11.1 percent
more than $237,700 in 2010.
Like last year, top HR management
executives at the corporate level were the
highest-paid HR professionals in 2011,
earning median total cash compensation
of $350,000. That is a 9.3 percent increase
from $320,300 in 2010. In companies with
10,000 or more employees, these top HR
executives earned a median $450,500.
Other skills appeared to be less in
demand in 2011. The median pay for a
top labor or industrial relations executive
was $220,500, a decline of 4 percent from
$229,900 in 2010. Top organizational
development executives collected median
total cash compensation of $215,000 in
2011, a drop of 2.6 percent from $220,700
the previous year.
The reverse was true, however, for the
midlevel HR position of organizational
development and training manager. Peo-
ple in these positions earned a median sal-
ary of $120,000, an increase of 9.1 percent
from $110,000 in 2010. Compensation
Pay Levels for Common HR Positions
Position
2010 median
total cash
compensation
2011 median
total cash
compensation
Percentage
change
Top HR management executivecorporate $320,300 $350,000 9.3%
Top HR management executivesubsidiary or group 268,700 278,100 3.5
Top HR management executivedivision 237,700 264,000 11.1
Human resource director 151,300 153,500 1.5
Compensation manager 114,500 116,600 1.8
Benets manager 102,400 106,600 4.1
Employment and recruiting manager 100,900 105,000 4.1
Human resource manager 99,800 100,300 0.5
Payroll manager 89,100 94,000 5.5
Compensation analystsenior 80,100 81,900 2.2
Human resource generalistsenior 79,200 81,300 2.7
Trainersenior 67,500 68,000 0.7
Human resource information systems specialist 67,400 66,600 -1.2
Recruitergeneral 53,000 55,600 4.9
Online Resources
For links to SHRM resources on
compensation, including the Com-
pensation Data Center, see the online
version of this article at www.shrm.org/
hrmagazine/1211Coombs.
10 Highest-Paid HR Executives
Position
2010 median total
cash compensation
(and rank)
2011 median
total cash
compensation
Percentage
change
Top HR management executivecorporate $320,300 (1) $350,000 9.3%
Top total quality executivedivision 224,000 (6) 314,400 40.4
Top HR management executivesubsidiary or group 268,700 (2) 278,100 3.5
Top compensation and benets executive 253,600 (3) 269,500 6.3
Top HR management executivedivision 237,700 (4) 264,000 11.1
Top total quality executivecorporate 212,800 (10) 261,100 22.7
Top health, safety and environment executive 207,500 (n/a) 226,900 9.3
Top labor or industrial relations executive 229,900 (5) 220,500 -4.1
Top total quality executivesubsidiary or group 197,700 (n/a) 218,700 10.6
Top organizational development executive 220,700 (7) 215,000 -2.6
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HRMagazine
30 HR Magazine December 2011
Compensation
and benefits managers earned median sal-
aries of $118,000, an 8.2 percent increase
from $109,100.
Considering that more companies
have increased efforts to create multicul-
tural workforces, expertise in diversity
and inclusion paid off in 2011. Equal
employment opportunity or diversity
managers earned a median $121,300, up
6.6 percent from $113,800.
Most other midlevel HR categories
posted modest gains in compensation in
2011. Examples include median salaries
of:
$106,600 for benefits managers, up
4.1 percent from 2010.
$105,000 for employment and recruit-
ing managers, also up 4.1 percent.
$81,300 for human resource general-
ists, up 2.7 percent.
Even without a significant bump in
compensation, many HR professionals
say pay is not the main reason they punch
the clock. Only 51 percent of HR profes-
sionals listed compensation and pay as
very important when determining satis-
faction with their job, according to results
from the Society for Human Resource
Managements 2011 HR Job Satisfaction
Survey. HR professionals deemed numer-
ous other factors more crucial to job sat-
isfaction. (For more information, see this
months cover story on page 22.)
Skills in Demand
Strong human capital management skills
can be a huge competitive advantage for
employers, and smart senior executives
want human resource leaders who can
deliver on that promise, says Peter Phelan,
senior vice president of HR at New York
City-based digital media marketing ser-
vices company MediaMath. The pendu-
lum is swinging toward HR professionals
with expertise in employee engagement,
culture and communications, as well as
creative incentive compensation skills, he
says.
The salary levels would suggest that
strong HR practitioners have not needed
to lower their sights despite a precarious
economic climate, Phelan says. Mercers
survey results demonstrate that HR pro-
fessionals with expertise in training, diver-
sity, and compensation and benefits are
among those that received above-average
salary increases in 2011.
Whats been most striking is the
greater length and sophistication of the
job descriptions for the more-senior HR
roles, Phelan adds. This would seem
to speak to much higher expectations
around HR delivering business impact.
Others agree, although a broader trend
of limited salary growth appears to be the
norm in the overall HR community at the
moment, says Jennifer Loftus, national
director of New York City-based HR con-
sulting firm Astron Solutions.
In the last six months, Im definitely
seeing more job activity with respect
to HR positions, Loftus says. Thats
encouraging, knowing how many HR
professionals have been out of work.
However, that good news doesnt
extend to significant salary growth for
the profession, Loftus says. Most com-
panies are not planning to change their
salary budgets and are likely to hand out
2 percent to 3 percent merit increases
for human resources jobs in 2012, she
predicts. HR is not one of the hot skill
sets right now, like IT, that is attracting
the bigger salary increases, according to
Loftus.
Alternate Compensation
Many companies do have the money
to spend on higher salaries, says Joan
Reutter, SPHR, president of JBR Con-
sulting, based in Manassas, Va. But with
economic conditions cloudy at best, those
funds are not necessarily being deployed
to boost workers paychecks.
They have the money put aside;
theyre just not spending, Reutter says.
Its not that they cant afford it, but
everyone is being very conservative right
now. Theyre still focused on paying the
key people the right amount, but theyre
Pay Variations for Midlevel HR Positions
Position
2010 median
total cash
compensation
2011 median
total cash
compensation
Percentage
change
Executive compensation manager $128,800 $134,600 4.5%
Labor relations manager 122,900 124,400 1.2
Equal employment opportunity or diversity manager 113,800 121,300 6.6
Organizational development and training manager 110,000 120,000 9.1
Compensation and benets manager 109,100 118,000 8.2
Compensation manager 114,500 116,600 1.8
Human resource information systems manager 108,300 114,100 5.4
Benets manager 102,400 106,600 4.1
Relocation services manager 103,500 105,800 2.2
Employment and recruiting manager 100,900 105,000 4.1
Human resource manager 99,800 100,300 0.5
Employee communications manager 96,000 99,600 3.8
Employee relations manager 94,800 96,800 2.1
Training manager 92,800 94,900 2.3
Payroll manager 89,100 94,000 5.5
Human resource generalistsenior 79,200 81,300 2.7
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December 2011 HR Magazine 31
focused on other forms of compensation,
besides merit pay.
A high percentage of the most com-
mon HR positions were in fact eligible
for other forms of compensation during
2011, particularly incentives, according to
Mercers survey. For the position of top
HR management executive at the division
level, 100 percent were eligible for short-
term incentives, which commonly include
bonuses tied to performance. Eighty-one
percent were eligible for long-term incen-
tives, which commonly include stock
options.
More than 90 percent of professionals
in several other HR positions surveyed by
Mercer were eligible for short-term incen-
tives, including top employee relations
executive, top organizational develop-
ment executive, top compensation and
benefits executive, and top compensation
executive.
In the manager category, most posi-
tions were eligible for short-term incen-
tives in 2011, including 86 percent of those
in executive compensation manager and
labor relations manager positions. Most
HR managers positions were not eligible
for long-term incentives, although 44 per-
cent of executive compensation manager
Median Total Cash Compensation for Common HR Positions by Company Size in 2011
Position All companies
Less than 1,000
employees
1,000-3,499
employees
3,500-9,999
employees
10,000 or more
employees
Top HR management executivecorporate $350,000 $205,500 $313,600 $362,500 $450,500
Human resource director 153,500 131,300 149,600 159,100 157,700
Compensation manager 116,600 100,600 111,700 115,900 116,700
Human resource manager 100,300 91,000 100,000 105,000 100,100
Benets manager 106,600 95,400 101,500 111,300 108,500
Employment and recruiting manager 105,000 92,400 99,700 111,900 106,300
Payroll manager 94,000 85,000 90,800 95,300 97,300
HR generalistsenior 81,300 74,500 81,600 85,000 79,100
Compensation analystsenior 81,900 80,300 79,500 85,200 78,400
Human resource information systems specialist 66,600 62,100 67,600 63,700 73,000
Trainersenior 68,000 67,100 72,100 65,200 66,000
Recruitergeneral 55,600 58,500 59,200 62,000 58,500
HR Executive Eligibility for Incentives in 2011
Position
Percentage eligible
for long-term
incentives
Percentage eligible
for short-term
incentives
Actual payout of
short-term incentives,
as a percentage of
mean base pay
Targeted payout of
short-term incentives,
as a percentage of mean
base pay
Top HR management executivecorporate 66% 86% 56.9% 49.4%
Top HR management executivesubsidiary or group 65 96 41.5 37.4
Top HR management executivedivision 81 100 43.8 37.2
Top labor or industrial relations executive 67 97 34.6 32.4
Top employee relations executive 55 92 29.5 29.2
Top organizational development executive 70 92 32.2 30.5
Top compensation and benets executive 69 93 41.8 36.5
Top benets executive 70 94 31.1 29.1
Top compensation executive 73 96 30.2 29.3
Top training executive 61 94 31.2 33.3
Top total quality executivecorporate 62 79 43.1 37.7
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WITH A FULL SUITE
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With a full suite of integrated beneft plan offerings to choose from, we can help
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34 HR Magazine December 2011
Compensation
positions did qualify for long-term incen-
tives, according to Mercer.
Note that when reviewing similar
compensation data from different sources,
direct comparisons may not be suitable, as
the methodologies of the surveying orga-
nizations may differ.
Silver Lining
Even if salary growth is meager in most HR
fieldsand in the broader workforce
there is a silver lining, Loftus says. More
companies are restructuring their salary
plans or perhaps implementing new salary
structures altogether, with an eye toward
retaining top employees. HR professionals
who are less seasoned in financial practices
now have the opportunity to gain valuable
experience in compensation
planning, she says.
This is a cross-training expe-
rience for HR, Loftus adds.
Many in the profession have
not been exposed to finance.
Compensation experts tend
to be less prevalent than recruit-
ers, for example, or other
skill sets, so this is a good
opportunity.
More business leaders are
keeping a closer eye on salary
structures and examining their
current policies, agrees Bob
Cartwright, SPHR, president
and chief executive officer of
Intelligent Compensation LLC,
a consulting company based in
Pflugerville, Texas. Employers
want to find the right talent and
keep those employees through
effective retention strategies.
Theres an uptick in heavier
salary analysis, rather than just
worrying about merit increases,
Cartwright says. Executives are
saying, Lets take a look and
make sure were paying what we
should be paying to keep our top
talent.
HR Manager Eligibility for Incentives in 2011
Position
Percentage
eligible for
long-term
incentives
Percentage
eligible for
short-term
incentives
Actual short-
term incentive
payout, as a
percentage of
mean base pay
Targeted short-
term incentive
payout, as a
percentage of
mean base pay
Human resource manager 24% 85% 13.5% 13.5%
Labor relations manager 29 86 17.2 17.9
Employee relations manager 23 69 13.8 13.8
Employment and recruiting manager 17 83 11.3 12.8
Compensation and benets manager 16 82 19.1 16.2
Executive compensation manager 44 86 24.3 21.0
Benets manager 18 78 15.6 14.4
Compensation manager 25 77 16.3 15.2
Payroll manager 14 73 13.7 13.3
Training manager 19 85 12.6 12.6
About the Survey
Respondents from 2,170 organizations across the
country participated in Mercers 2011 Human Re-
sources Compensation Survey. They represent a cross
section of all industries, with the largest shares falling
in the categories of:
Health care (17 percent).
Durable manufacturing (12 percent).
Nondurable manufacturing (11 percent).
Retail and wholesale operations (9 percent).
Professional services (8 percent).
Hospitality, media and entertainment (6 percent).
Banking and financial services (5 percent).
Utilities (5 percent).
Participants ranged in size from fewer than 1,000
employees to more than 10,000 employees. The major-
ity were publicly traded companies.
The 2011 Human Resources Compensation Survey
is available for purchase online at www.imercer.com or
by calling Mercer at (800) 333-3070. The cost for re-
sults available through Mercers PayMonitor is $800 for
companies that participated in the survey and $2,400
for nonparticipants.
Survey Respondents, by
Number of Employees
Survey Respondents,
by Type of Organization
37%
27%
20%
16%
Fewer than 1,000
employees
1,000 to 3,499
employees
3,500
to 9,999
employees
10,000
or more
employees
Publicly traded
companies
Privately held
companies
Not-for-prot
organizations
2%
State-owned
enterprises
52%
24% 22%
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2011 DirectEmployers Association, a nonproft consortium of leading employers
THUMBS UP
Social Jobs Partnership
(We think youll like it)
Learn more at www.Social.jobs
to a new initiative to facilitate employment for Americas jobless
WASHINGTON, DC - OCTOBER 20: (L-R) DirectEmployers Association Executive Director Bill Warren, National Association of Colleges and Employers Executive
Director Marilyn Mackes, Facebook Vice President of Global Public Policy Marne Levine, National Association of State Workforce Agencies President Bonnie Elsey and
U.S. Labor Secretary Hilda Solis hold a news conference to announce a partnership aimed at connecting Americans with jobs October 20, 2011 in Washington, DC.
By leveraging the power of the social Web, this initiative will provide immediate, meaningful and ready-to-use information for job seekers and employers, Solis said.
Use QR code to view video footage from the announcement.
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Profile
B
eing able to work at the world-
famous San Diego Zoo and the San
Diego Zoo Safari Park might seem
like a dream come truetaking care of
animals from around the globe, tending
gorgeous plants and flowers in the sur-
rounding Balboa Park, and being part of
tourists happy vacation memories. But
all those perks cant take the place of help-
ing employees do their best work through
insightful performance appraisals or re-
warding them for good work via pay for
performance and incentives.
When Tim Mulligan was hired as chief
human resources officer in 2004, the nearly
century-old Zoological Society of San
Diego boasted a turnover rate of less than
5 percentbut employees job performance
wasnt linked to company goals, and they
hadnt completed an employee satisfaction
survey in 17 years.
Tasked with implementing cutting-edge
HR practices and realigning HR as a stra-
tegic, integral part of operations, Mulligan
and his team instituted performance man-
agement, pay-for-performance and rewards
systems that help all employeesfrom
veterinarians to food service workers
understand how their jobs affect the zoos
operation.
Describe the state of the zoos employee per-
formance and talent management practices
when you arrived.
Performance reviews were still done on
paper and were not tied to employees pay
or incentives. There was no accountability
or linkages to the goals of the organization.
Employees did not know what the organi-
zations annual goals were. Because of that,
managers had no goals.
How did you, your team and the organizations
leaders address these issues?
I started in fall 2004. The following Janu-
ary was the rollout of the new five-year
strategic plan. Thirty percent of the plan
was HR-related. It wasnt just me coming in
and making sweeping changes. We rewrote
every policy the organization had instituted
in its nearly 100-year history. Were still
36 HR Magazine December 2011
working on some things seven years later.
But we couldnt put off training. We created
a training program called Zoo U. We also
created some core leadership development
programs that started right away. One of
our first priorities was getting people to
think about what it means to reward high
performers, write good goals and have
honest evaluations, so that the stars could
rise to the top and reap higher benefits, and
employees who were coasting, not engaged
or productive, would see the opposite. That
was a big culture shift.
How did you sell employees on these
changes?
I made sure key people, department heads
and people who might be naysayers were
involved in creating and choosing our
performance management plan. We talked
about how to write smart goals and how
to have one-on-one, honest dialogues that
link back to the goals. We talked about how
a food service manager or a scientist links
back to the bottom line, and it got everyone
thinking about attendance and revenue.
Everyones now looking at the business
model differently. Then we talked about
how to write reviews effectively and what a
3 out of 5 means. For some people, this was
a huge wake-up call, because theyd always
received a 5. We had to re-educate people.
It took a while, but once they saw the new
Interview by Beth Mirza
This Place Is a Zoo!
Tim Mulligan
Education: Bachelors degree in hospitality
administration from Washington State University
in Pullman. Law degree from Gonzaga University
School of Law in Spokane, Wash.
Current position: 2004-present, chief human
resources ofcer, Zoological Society of San Diego.
Career: 2000-04, area director of human
resources, Starwood Hotels & Resorts Worldwide
Inc., San Diego; 1996-2000, director of human
resources for Starwood Hotels & Resorts, Seattle.
Personal: Born in Richland, Wash.; age 44; partner
Sean; two adopted children.
Diversions: Community boards, including San
Diego Community Service; home renovation; travel;
camping.
Connections: www.sandiegozoo.org; contact him
via LinkedIn.
The interviewer is senior editor for HR News.
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December 2011 HR Magazine 37
P
H
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P
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Y

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pay-for-performance system in action the
first year or two, there was excitement that
we were finally rewarding people for per-
formance. I had to make sure the executive
management team supported it, and I had
to educate the board of directors to do re-
views of our chief executive officer.
How do you keep employees motivated?
Cleaning up our compensation structure
helped. While all the planning to create
pay-for-performance and talent manage-
ment systems was going on, I was survey-
ing, looking at job descriptions, pay and
union rates. When we launched pay for
performance, I was comfortable we were
where we needed to be compensation-wise.
We want to be competitive with the whole
San Diego business market, not just other
zoos or nonprofits. Im most proud of our
in-house Roaring Rewards program. For
incentives, we created the Zooper Market
where managers can reward employees
by going online and shopping with dollars
they receive based on their employee count.
They can buy gift cards from Starbucks, gas
cards or logo wear. We polled the employ-
ees to see what they wanted. Also, this is a
fun place to work, so why not take advan-
tage of it? Managers can take their employ-
ees on a behind-the-scenes tour, a Segway
tour, the zipline or an animal encounter.
For our star performers, we hold a quarterly
Zooper Bowl for employees and managers
and award them money and handcrafted,
sustainable gifts. We have a program just for
managers, recognizing great accomplish-
ments in the leadership team. For service
awards, we have Zooper Troopers, which
recognize five, 10, 15 and 20-plus years of
service. And we have on-spot recognition to
thank employees for great service.
Online Resources
For additional information about HR prac-
tices at the San Diego Zoo, see the online
version of this article at www.shrm.org/
hrmagazine/1211Mirza.
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Benefits
Last spring, David OLearys employer paid him not to work.
OLeary kept his job and got paid while he spent more than five weeks in Sierra
Leone, volunteering with the international charity World Vision. Back at the office, a
colleague covered OLearys workload while he visited villages and learned about the
challenges subsistence farmers face and how World Vision helps them. OLeary was on
a sabbaticaltime off, doing what he chose, with his employers backing.
And how did OLearys co-worker respond to the added work? He had already
taken his sabbatical, so he couldnt complain too much, OLeary says with a chuckle.
The author is a freelance writer and former HR generalist and trainer in Wixom, Mich.
38 HR Magazine December 2011
By Kathryn Tyler
Paid sabbaticals allow
employees to rechargeand
boost retention, development
and training at little cost.
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Pay Off
SABBATICALS
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December 2011 HR Magazine 39
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40 HR Magazine December 2011
Benets
Business continued seamlessly while I was away. Maybe that
should worry me!
OLeary is director of fund analysis for Morningstar Research
Inc. in Canada. Employers such as Morningstar use sabbaticals
to keep employees motivated and to prevent burnout. HR pro-
fessionals who help administer paid sabbatical programs say
they can be relatively inexpensive tools for retaining, motivat-
ing and engaging employees. And, the lengthy breaks that sab-
baticals create generate development
and training opportunities for other
employees who cover for absent
workers.
Sabbaticals, common in aca-
demia, are more rare in the business
world. Only 4 percent of companies
offer paid sabbaticals, according to
the Society for Human Resource
Managements 2011 Employee Benefits research report; however,
more than 20 percent of companies on Fortune magazines list of
the Top 100 Best Companies to Work For do so.
At first, the cost of paid sabbaticals may appear daunting:
The company is going to pay employees not to work? But HR
professionals at companies that offer the benefit say it does not
cost any extra money; other employees pick up the slack, so the
cost is neutral. People are on the payroll whether they are there
or not, and the work is being covered within the organization,
so theres no real cost, says Tami Graham, director of global
benefits design for Intel Corp.
Some industries or organizations need sabbaticals more than
others, according to HR professionals. They say employ-
ers in fast-paced, high-stress fields, such as high-tech or
finance, should consider offering an employee sabbati-
cal benefit. At Intel, most of us work unrelenting hours.
Many days start at 6 a.m. and dont end until 10 p.m. to
accommodate the different time zones because of the
global nature of the work, says Global Benefits Manager
Paula Sanderson. Sabbaticals force us to take a break from
what is probably an unhealthy cycle of work, work, work.
While sabbaticals may be easier to offer at big corpora-
tions with more resources, medium-sized companies offer them,
too. For example, Edelman Financial Services LLC, headquar-
tered in Fairfax, Va., has only 250 employees but offers a four-
week sabbatical for every six years of employment.
Good for Employers, Too
HR professionals say employees call paid sabbaticals the best
benefit available. Sabbaticals help employers by attracting new
employees and retaining current ones.
Its hard to get a new kid out of college excited about retire-
ment, but they can get excited about two months off after seven
years, Graham says. And the closer you get, the more excited
you get. Its something thats highly valued. Employees say,
Dont ever take away the sabbatical.
Pamela Becker, Edelman Financial Services vice president of
HR/training, agrees. This is among our most favored benefits
and has served as a highly effective recruiting tool, she says.
We have employees who have taken two sabbaticals and are
working on earning a third, so this benefit is a retention tool.
When people do the same thing at the same place for many years,
they tend to burn out. The sabbatical enables
workers to recharge, enabling them to return to
work re-energized. The productivity increase
more than compensates for their time away.
A sabbatical can sway a burned-out
employee to stay, says Rita Foley, co-author
of Reboot Your Life: Energize Your Career and Life
by Taking a Break (Beaufort Books, 2011). Ive
interviewed several employees who were ready
to leave their companies when they went on sabbatical. Then
they realized it wasnt [a problem with] the company; they were
just yearning for some time off.
That was the case for Peter Bopp in 1997, when he worked
for American Express. I had been on the career ladder for many
years and was approaching burnout, recalls Bopp, now a part-
ner at consultancy Leadership Strategy Group in New York City.
I was definitely done with the job I was scheduled to leave but
not energized about taking on my next leadership role. Then
American Express gave Bopp a sabbatical. He traveled exten-
sively and spent time with his aging parents to document family
history. He returned to work recharged.
That renewed energy is infectious, Intels Sanderson says.
Employees prepare for their sabbaticals two years before they
actually leave, creating significant conversations with co-work-
ers who share in the plans. Workers look forward to the day theyll
be able to enjoy their own sabbatical, and this anticipation helps
to boost morale while further lowering turnover. And returning
employees are required to report to all staff on their time away.
Those reports excite their colleagues, Sanderson says.
Who Goes and When?
Who should get sabbaticals, and at what times in their work lives
should employees be allowed to take sabbaticals? Most compa-
Percentage of companies that offer sabbaticals
Taking Leave
2007 2008 2009 2010 2011
Unpaid sabbatical program 16% 13% 12% 16% 15%
Paid sabbatical program 5 5 5 4 4
Source: 2011 Employee Benefits research report, SHRM.
Online Resources
For more information about instituting
paid sabbaticals, see the online version of
this article at www.shrm.org
/hrmagazine/1211TylerBenefits.
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December 2011 HR Magazine 41
nies that offer sabbaticals tie participation to years of service,
thereby improving retention, HR professionals say. The most
common threshold is seven years of service, but a few companies
reserve the benefit for those with 20 years or more.
One to two months is the normal length of sabbaticals, Foley
says, adding that formal, paid programs usually provide full pay
and benefits.
Most companies have a use it or lose it policy. At Intel,
employees must take the sabbatical within three years of eligibil-
ity. We have lots of married employees, where both are working
at Intel, Graham explains. If you have a three-year window,
you can line it up with almost anyone. Married folks who started
at different times can take it together.
Intel began its eight-week paid sabbatical program in 1981 for
employees with seven years of service. Employees can add up
to four weeks of vacation time to a sabbatical to take as much as
three months off. The primary purpose was for the employee to
rejuvenate. The secondary purpose was for the development of
others, Graham explains. Employees cross-train to cover sab-
baticals. Either one person does two jobs or the work is parceled
out among several people.
Some companies offer sabbaticals to all employees, while
others only provide them for upper-level executives. Some
HR professionals note that companywide eligibility eliminates
resentment among employees who are left behind. When every
individual with enough years of service gets a turn, it makes
workforce coverage easier and takes the heat off employees
returning from sabbaticals.
My work team was envious of my opportunity, but gener-
ally supportive since all get to participate when they have the
years of service, says Leon Harvey, senior petroleum analyst for
QuikTrip Corp., a gasoline and convenience store group head-
quartered in Tulsa, Okla. Harvey spent some of his four-week
sabbatical in 2008 on vacation in Europe. With vacation time
off, you dont really get away long enough or allow yourself to
fully disconnect from your work life, he adds. While on sab-
batical, I was able to enjoy the time with little worry about what
was happening back home.
QuikTrip requires all full-time employees with 25 years of ser-
vice to take a four-week sabbatical. At 30 years, 35 years and 40
years, employees must take additional sabbaticals. The purpose
is to rejuvenate and reduce burnout of tenured employees, says
Kim Owen, vice president of HR.
Time to Decompress
Most employers do not dictate what employees should do with
their time off, but many encourage employees to plan thought-
fully and share their experiences.
At Edelman Financial Services, where employees are eli-
gible every six years, HR professionals notify the employees
supervisor at the beginning of the employees year of eligibil-
ity. Three months prior to the approved sabbatical date, the
employee is asked to submit an outline, a syllabus of the pro-
posed personal plan, goal or objective while on this leave,
Becker says. We want for employees to be descriptive, but we
dont want the syllabus to become a burden. Once reviewed by
HR, each proposed syllabus is sent to the CEO, who often asks
questions about the interesting trip or event planned and then
gives final approval.
Edelman Financial Services does not require employees to
do something constructive, Becker adds. The point is for
employees to decompress, to do something they are typically
unable to do simply because they have to work. Returning
employees put together short presentations about their sabbati-
cals and post them on the companys intranet.
Sanderson has worked at Intel for 27 years and has taken
three sabbaticals so far, with her fourth scheduled for next sum-
mer. My sabbaticals track where I was at each stage of my life,
she says. During the first one, she took 21 units of college credit.
On the second, she spent time with her then-2-year-old son. By
the time of her third sabbatical, her son was 10, and they spent a
month going to zoos and theme parks, followed by a month in
Some HR professionals note that companywide
eligibility eliminates resentment among employees
who are left behind.
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42 HR Magazine December 2011
Benets
Paris for Sanderson when her son returned to school. Next sum-
mer, as her son prepares to leave home, they will likely spend the
sabbatical visiting universities.
Graham covered for her counterpart on Intels HR operations
side during the latters sabbatical. It was an eye-opener: Before
covering that job, Ive always been a strategy person, Graham
recalls. She says theres inherent tension in organizations between
strategy groups and operations groups, with strategy people like
herself sometimes designing programs that are too complicated
to administer. We thought we were good partners to design for
simplicity. It wasnt until I tried to do her job [in operations] that I
really got the design-for-simplicity issue. It helped me develop a
deeper understanding of the impact my job has on others.
Another benefit of sabbaticals: They teach employees that no
one is indispensable. Foley notes that when people return from
sabbaticals, they realize that the company did just fine without
themthey see the big picture. They dont micromanage peo-
ple after a sabbatical, she says. Theyre more strategic. And
the time off reinforces the concept that clients belong to the com-
panynot to the employee personally, Foley says.
Sabbaticals also build loyalty. Ric Tanner, regional direc-
tor of sales and marketing for the Pacific Northwest, Mountain
and Midwest regions at San Francisco-based Kimpton Hotels &
Restaurants, spent his sabbatical cruising with his wife along the
coast of Chile and through the Panama Canal. It was Tanners
first vacation of more than a week in more than 26 years.
Ive been in the business for 36 years, Tanner says, but no
company has ever given me anything close to what Kimpton did
[with the sabbatical]. I can never imagine working for anybody
else.
Giving employees four to eight weeks off
prompts the question: Who will do their work?
How an employer answers that question can
create opportunities for employee development
and succession planning.
Train other employees to do the job of the
person who will be away, advises Pamela Becker,
vice president of HR/training at Edelman Financial
Services LLC. This causes people to become
familiar with each others duties and strengthens
the depth of talent in the organization. It also
leads to new career opportunities as people get
exposed to other functions in the organization. All
this increases productivity, fosters camaraderie
and reduces turnover.
Adds Rita Foley, co-author of Reboot Your
Life: Energize Your Career and Life by Taking
a Break: If you have senior executives due to
retire in the next five years, a sabbatical is a way
to prepare for retirement. The sabbatical gives
the company a test run with potential successors
and helps it figure out what successors need to
know now.
In 2005, Kimpton Hotels & Restaurants
began offering one-month sabbaticals to its
executives after they reached seven consecutive
years of employment. Part of the program
involves paving the proper succession plan for
Kimptons future leaders, an opportunity for
up-and-coming staff to rise to the next level,
says Leslie Lerude, vice president of people
and culture.
Ric Tanner, Kimptons regional director of
sales and marketing for the Pacific Northwest,
Mountain and Midwest regions, found that
when he went on sabbatical and his position
stayed vacant, his direct reports became more
self-reliant.
At many companies, managers and
employees are responsible for scheduling
sabbaticals and workforce coverage. Our HR
database feeds into a manager dashboard,
so I can see when my employees are eligible
for sabbaticals, says Tami Graham, director
of global benefits design for Intel Corp. For
example, if three people are eligible and took it
at the same time, that would be a problem for
me. It takes some planning.
Cathi Rezy, HR director at Morningstar US,
says employees must coordinate sabbaticals
with their managers, preferably at least six
months in advance. The sabbatical is part of
our work culture, Rezy says. Everyone works
together to provide coverage because everyone
knows theyre going to take it at some point.
Rezy has taken two sabbaticalsshe spent one
traveling in Europe and the other at home with
family. We have sabbatical guidelines, a sort of
employee handbook of things to do before they
leave, such as setting up e-mail appropriately
and finding coverage for while they are gone,
she adds.
With good planning, employees who stay
behind get development experience and the
work gets covered effectivelymore effectively
than one QuikTrip vice president expected.
The goal is for there to be no work for
the returning employee, says Kim Owen, vice
president of HR for QuikTrip. When a VP took
his first sabbatical, he was concerned and
somewhat dreaded coming back to his desk,
thinking it would be overwhelming. He was
surprised when he was totally caught up on
e-mails and projects by 3 p.m. his first day
back. He had nothing on his schedule the whole
first week, as he had planned that it would take
at least that long to catch up.
Kathryn Tyler
Covering the Workload
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December 2011 HR Magazine 43
Q&A
The interviewer, a former HR generalist and trainer, is a freelance writer in
Wixom, Mich.
E
motions run high. Feelings get hurt. Misunderstandings
and anger are common. But a termination shouldnt be
dangerous. Thats where psychologist and mediator Marc
McElhaney comes in: 200 or 300 times a year, he helps HR pro-
fessionals deal with difficult and potentially violent employees.
Some cases involve suicidal, psychopathic or brain-damaged em-
ployees; substance abusers; and even those with prison records
for murder. The author of Aggression in the Workplace: Preventing
and Managing High-Risk Behavior (AuthorHouse, 2004) is presi-
dent of Critical Response Associates LLC in Atlanta.
How do you define a successful termination?
A successful termination is a safe termination, one where the
employer and employees feel safe during and after termination of
a high-risk individual. Most workplace violence incidents occur
long after the termination, even years later. Before you terminate
a high-risk individual, stop and as-
sess the situation.
What is the most com-
mon mistake HR pro-
fessionals make when
conducting involun-
tary terminations?
Acting too quickly,
moving forward
with the termina-
tion of a perceived
high-risk employee
without stopping and
getting some help. Its
a team effort. If you
have a high-risk individ-
ual and youre going toward a high-risk event, you need to slow
it down.
What is the procedure for
assessing and managing
risks?
Gather a team, including
representatives from HR,
legal and security. You
may want to have a third-
party consultant meet with the subject employee to stress early
on that company officials want to review any concerns the em-
ployee may have about not being treated fairly. Throughout the
process, actively identify and assess the risks and the needs of
the individual. What is driving that person? If we assess well on
the front end and address some of the employees concerns, the
employee will leave feeling that he or she was respectfully treated
and, therefore, will be less likely to be a risk in the future.
How can HR professionals identify potential high-risk employ-
ees?
A high-risk employee makes people feel uncomfortable. Most
people have pretty good internal alarm systems and intuitively
understand when a person is a risk. But they generally dont re-
port it because its ambiguous. Compare notes with other people.
If you get that uneasy feeling, you need to stop before terminat-
ing or disciplining this person. Dont set into motion events you
cannot control.
What can an organization do to prevent workplace violence?
Have a policy on workplace violence. Establish a culture that ad-
dresses it early. Have a trained threat assessment team within your
organization, with individuals capable of handling situations and
finding resources. Train HR, security, legal and other personnel to
address threats early. Train employees and supervisors to recognize
threats and report them. If your employees arent reporting threats
early enough, you cant address them. Finally, any way that you
can further the soon-to-be-terminated employees sense of dignity
and control, the better. Act in a respectful way so that when that
employee walks out the door, the HR person isnt looking over his
or her shoulder every morning.
Safer Separations
Interview by Kathryn Tyler
Treat potentially violent employees with
respect during a termination.
For an online profile of potentially danger-
ous employees and additional information
about safe terminations, see www.shrm
.org/hrmagazine/1211Tyler.
Online Resources
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HRMagazine
FOR MAC USERS
44 HR Magazine December 2011
Relocation
SPECIAL REPORT
The term extended business travel has
worked its way into the lexicon of mobil-
ity professionals.
Yet the phrase remains ripe for mis-
interpretation inside and outside human
resource departments. When business
leaders fail to understand, evaluate
and monitor the immigration, tax and
health care implications of international
extended business travel, such travel
often used as an alternative to traditional
expatriate assignmentscan become an
overextended business trip fraught
with compliance risks.
The beauty of the extended busi-
ness trip is the flexibility, says eBays
Director of HR Global Mobility Eric
Halverson, who notes that shorter,
leaner assignments appeal to business-
unit managers because they cost less and
appeal to employees because they are
less disruptive.
The big risk occurs when an
extended business trip of less than six
months gets extended [past six months]
and you do not track it correctly, he
says. That can trigger serious tax impli-
cations, and employees can lose their
medical coverage. We are careful to
avoid that six-month problem.
Adds Jane Malecki, vice president of
international assignments for Weichert
Relocation Resources Inc. in Norwell,
Mass.: Some people think that there is
a standard 183-day rule[that] as long
as an employee is not in the host location
for more than 183 days, the company is
safe from a tax and immigration perspec-
tive. Thats not necessarily the case.
Hence, many managers would benefit
from applying more care to their over-
sight of extended business travel, mobil-
ity experts say. Hallmarks of vigilant
oversight include:
A formal yet flexible policy, one that
enables case-by-case adjustments.
Diligent and careful tracking of busi-
ness travelers.
Consideration of tax treaties between
home and host countries.
Extended business travel can be
costly if you dont monitor whos
going where and for how long.
By Eric Krell
The author is a business writer based in Austin,
Texas, who covers human resource, finance and
social marketing issues.
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46 HR Magazine December 2011
Relocation
SPECIAL REPORT
Knowledge of immigration rules in
home and host countries.
A clearly defined purpose for busi-
ness travel so employees understand
what is expected of them and what they
can expect once they return.
Drivers and Uses
Malecki says well-planned extended
business trips can be effective, and other
HR professionals cite examples.
Managers at New York City-based
KPMG LLP routinely use extended busi-
ness travel assignments to supplement
the companys U.S. ranks from February
through April.
We bring in people from other
countries whose busy seasons occur at
a different time, explains Achim Moss-
man, KPMGs national director of global
mobility advisory services and interna-
tional executive services. In Germany,
for example, tax returns are due in late
September, so some German tax profes-
sionals sign up for one-, two- or three-
month assignments in the United States
each year in the spring.
KPMG is not alone. And, most
mobility practitioners and experts are
seeing an increase in such assignments.
Ninety-three percent of the 408 mobility
professionals who responded to Atlas
Van Lines 2011 Corporate Relocation
Survey indicated that their organizations
plan to increase or maintain the use of
international assignments lasting less
than 12 months.
That said, specific growth figures are
difficult to come by because many com-
panies do not diligently track extended
travel and because organizations may
define extended
business travel
differently. For
instance, a com-
pany might limit
it to three months,
six months or 12
months.
The fact that
extended trips cost
companies less money than expatri-
ate assignments represents one driver.
Employers save on tax equalization,
shipments of household goods, family
housing, cost-of-living adjustments and
other allowances typically spelled out
in longer-term expatriate assignments.
These perks are usually excluded from
extended business travel arrangements.
The fact that more companies, of all
sizes, are conducting business overseas
also generates more trips.
Malecki points to other drivers:
An increase in the number of dual-
career couples complicates the logistics in
one- to three-year expatriate assignments.
The U.S. housing bust has made
more employees reluctant to sell or rent
their housesand incur losseswhile
working overseas for longer periods.
Ongoing economic volatility and
high unemployment in the United States
have raised employees concerns about
job security once they return from three-
year expatriate assignments and their
previous jobs have been filled.
One of the reasons employees
appreciate extended business travel is
They dont feel like theyre putting
their careers at risk, notes Halverson,
as returning employees rarely find their
positions filled.
That said, employers should still
make clear the purpose of each assign-
ment, what completion looks like, and
what awaits the employee when he or
she returns, Malecki says.
At San Jose, Calif.-based eBay, some
U.S.-based employees use extended
business travel to fill in for European col-
leagues on maternity leave. These assign-
ments are a great tool to fill open gaps that
are temporary, Halverson says.
Tom OConnor, GPHR, director of
global mobility for United Technologies
Corp. in Hartford, Conn., and a mem-
ber of the Society for Human Resource
Managements (SHRM) Global Special
Expertise Panel, adds that such trips
provide an excellent means of respond-
ing quickly to unexpected customer
service challenges. If one of the heating
systems, aerospace
systems, helicop-
ters, elevators or
security systems
that the diversified
global company
manufactures needs
immediate atten-
tion, an engineer
can get on a plane
tomorrow morning
to go to another
country, take a few days or a few weeks
to address the issue, and then return
home, OConnor says.
Managers at Nalco Co., a global
water treatment and process improve-
ment company based in Naperville,
Ill., often use extended business trips
as development assignments, says
Director of HR and Senior Global Busi-
ness Partner Judy Wierman, GPHR,
who also serves on the SHRM panel.
The assignment gives the company the
opportunity to get a critical job done,
and it gives employees an opportunity to
expand their skills sets. You can gain
a rich development experience from put-
ting someone into
a different culture
and a different area
even for a short
period.
Nalco offers
extended business
traveltypically
addressing specific
business needs such
PERCENTAGE OF INTERNATIONAL ASSIGNMENTS
LESS THAN 12 MONTHS IN DURATION:
Companies with less than 500 salaried employees ............ 6%
Companies with 500 to 4,999 salaried employees .......... 16
Companies with 5,000 or more salaried employees ......... 22
Source: 2011 Corporate Relocation Survey, Atlas Van Lines.
Achim Mossman
Tom OConnor
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as temporarily replacing an engineering
position at an offshore platform in West
Africa, for examplein addition to true
rotational assignments. Both provide a
development component and can take
place during a similar period of time, but
the rotations are part of the companys
talent management strategy and include
longer-term assignments.
Nalcos use of some extended busi-
ness travel as developmental exercises
may be relatively rare. While other
mobility professionals agree that some
development benefits accompany
extended travel, they say development
takes a back seat to business needs such
as filling a temporary gap, completing
a short-term project, providing post-
merger integra-
tion assistance or
opening a new
office overseas.
Few organizations
use extended busi-
ness travel as a
tool for staff devel-
opment, talent
management or
cultural immersion, reports Mossman,
who works with dozens of mobility
departments.
Instead, Mossman sees traditional
expatriate assignmentswhat he
describes as long-term assignments of
more than 12 monthsand short-term
assignments lasting six to 12 months
used for development. He defines
extended business travel as trips lasting
30 days to three months. He reports wit-
nessing in the past two years an increase
in the use of six- to 12-month develop-
ment assignments among his client
companies. In such an assignment, field
employees of global companies perform
stints at headquarters to get immersed
in the headquarters culture.
Policy Points
While Halverson agrees in principle with
Mossmans breakdown of assignments
according to length, he says this break-
down posed a practical problem within
his company.
Several years ago, eBays mobility
function had separate travel policies
one that covered assignments of less than
six months, a short-term policy covering
assignments of six to 12 months, and a
long-term policy for expatriate assign-
ments of 12 months or longer. The short-
term policy contained many of the same
benefits and allowances that expatriates
on three-year assignments received; how-
ever, the policy covering trips of less than
six months in duration offered far fewer
benefits and were therefore more attrac-
tive from a cost perspective. Because
managers wanted to avoid bearing the
benefits costs of trips lasting six months
or longer, many began using the shortest
assignments and then extending them as
they neared the five-month mark.
Many of these extensions posed prob-
lems: When extended business travel
stretches past six months, the arrange-
ment can trigger tax requirements in host
countries and raise health care cover-
age risks. EBays home-based health
care plan covers employees outside the
country for up to six months. Employees
living out of the country for more than
six months need to be moved to another
policy with global coverage. In terms of
taxes, many countries, including most
European countries, allow U.S. citizens
to work within their borders for up to
six months, or 183 days, without being
subjected to local tax withholding. This
arrangement is contained in treaties
the United States maintains with many
other, but far from all, countries.
We did not want employees to get
hit with an additional tax and then lose
their medical coverage, Halverson says.
So, he and his team changed the policy.
Today, a policy specific to extended busi-
ness travel covers employees on assign-
ments of 31 days to 12 months, while a
long-term policy applies to employees on
assignments of greater than 12 months.
EBays policy for extended business
travel kicks in at 31 days because we
wanted to get our arms around the tax
compliance and we wanted to get our
arms around the immigration issues,
Halverson says. If you did not track
extended business trips until 90 days,
you would have a lot of extended busi-
ness travelers flying off your radar.
Additionally, eBays mobility team
conducts reviews of frequent business
travelers at least twice a year to monitor
any potential compliance risks. The team
also creates a monthly report with the
companys emergency services and secu-
rity group to ensure that the current loca-
tion of every employee is identified and
monitored in case unrestsuch as that in
North Africa earlier this yearrequires
employees to be evacuated.
Given the tax compliance, immigra-
tion and health care issues, mobility
experts say organizations should have
specific policies for extended
business travel. A sur-
vey of approximately
100 Worldwide ERC
members, conducted
in May and June by
the U.S. mobility
association based
in Arlington, Va.,
indicates that more
than 40 percent of U.S.
organizations do not
have formal policies that
cover extended travel in the
United States.
Its hard to find best practices
outside of extremely large compa-
nies, Wierman says.
Halverson, Wierman and
other mobility executives say that
any approach or formal policy
should contain leeway so param-
eters can be adjusted on a case-by-
Online Resources
For more tools to manage extended
business travel, see the online ver-
sion of this article at www.shrm.org/
hrmagazine/1211Krell.
Judy Wierman
haavvvvee
December 2011 HR Magazine 47
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48 HR Magazine December 2011
Relocation
SPECIAL REPORT
case basis, particularly when it comes to
allowances.
Halverson emphasizes that eBays
assignments are lean on allowances.
These assignments typically do not
include spouse or family relocation, ship-
ment of household goods, transportation
allowances, cost-of-living adjustments,
or cash lump sums for miscellaneous
relocation expenses. In some cases, the
company will fly family members over-
seas for visits or fly the traveler home
once a quarter.
Nalco follows a similar approach. I
have not seen one of our extended assign-
ments go longer than three months without
a trip home, unless the employee chooses
not to return home, Wierman says.
Halverson stresses that what he
describes represents eBays typical
approach to extended business travel;
there are exceptions. Our priority is
to make sure that [the employees] are
legally authorized to work where theyre
going and to make sure we understand
any and all tax implications, Halverson
explains. We give them economy class
airfare, put them up in a hotel or possibly
corporate apartments, and then bring
them back. If there is tax, we take care
of the tax. If there is a family situation,
we deal with family situations indepen-
dently. They might get home leave to
come back and visit. We might fly family
members up to visit.
The biggest challenges are
trying to determine the best
lodging answer and whether to
assist them with a per-diem pay-
ment or by using a cost-of-living
adjustment, Halverson adds.
In terms of reporting rela-
tionships, extended business
travelers typically maintain
their traditional reporting
relationships in their home
countries while reporting to a
manager in their host locations.
Wierman completed
extended assignments to Singa-
pore earlier in her career. My
direct, hard-line reporting went
back to my corporate function head in
the U.S., she recalls. But my opera-
tional reporting during the assignment
was to the president of our [Asia] region.
Many times, the reporting relationship
for extended business travelers becomes
a matrix.
Mossman points out that many
assignees request these opportunities.
Mossman, for instance, previously lived
in Germany; while working for a former
employer, he accepted a U.S. assignment
and eventually relocated permanently.
In many ways, the allure of
extended business travelthe ability
to quickly deploy people around the
world at low cost without incurring tax
liabilityalso represents the primary
risk of such assignments. If this type of
travel is granted too quickly without
preparation and oversight, the benefits
may never materialize, or
worse.
Companies can
discover that employees
have been flying under
the radar and going in
and out of certain coun-
tries on a frequent basis,
OConnor observes. As
these employees approach
a maximum period of stay in
a year or rolling 12-month period, the
company needs to get that person out
of the country at the eleventh hour to
avoid compliance problems. Or, the
employee flying under the radar may
have already triggered a tax liability
and then the company needs to play
catch-up. Thats when you realize
that having policies, monitoring them
and fostering compliance can really
help keep you out of trouble.
Compared to 2010, in 2011 do you expect the number of international assignments of less than
12 months in duration to:
All respondents Companies with
less than 500
salaried
employees
Companies with
500 to 4,999
salaried
employees
Companies with
5,000 or more
salaried
employees
Increase 24% 12% 25% 32%
Stay the same 69 77 70 62
Decrease 7 12 5 7
Source: 2011 Corporate Relocation Survey, Atlas Van Lines.
WHAT TYPE OF HOUSING SOLUTIONS
DO YOU PROVIDE FOR DOMESTIC
ASSIGNMENTS OF LESS THAN ONE YEAR?
Short-term leased apartment ....................53%
Corporate-leased apartment .....................48
Executive apartment .................................35
Hotel .........................................................37
Lump sum ................................................22
Respondents could select more than one answer.
Source: Worldwide ERC survey.
How does your organization cover living
expenses for domestic assignments of less
than one year?
Per diem
52%
Direct
reimbursement
28%
Lump sum
21%
Source: Worldwide ERC survey.
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_____________
ECONOMIC OUTLOOK
COMPENSATION & INCENTIVES
BENEFITS
TECHNOLOGY
STAFFING MANAGEMENT
EDUCATION, TRAINING & DEVELOPMENT
RELOCATION
SPECIAL SUPPLEMENT TO
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52 HR Magazine HR Trendbook 2012
CONTENTS
54
Economic Outlook
To dip or double dip? That is the economic question.
58
Compensation & Incentives
2011 salary increases; rewarding top performers; more.
66
Benefits
Health and wellness; changes resulting from health care
reform; managing costs; more.
78
HR Technology
Security in the cloud; social media mania; more.
82
Staffing Management
Recruiting with social media; retiring Baby Boomers;
pre-employment screening; more.
86
Education, Training & Development
Leadership development; how we learn; more.
96
Relocation
Reluctance to relocate; creative solutions to cost pressures;
more.
98
Workforce Trends
U.S. workforce demographics; job openings; unemployment;
U.S. compensation costs; womens earnings; more.
HR Magazines 2012 HR Trendbook (ISSN 1047-3149) is published by the
Society for Human Resource Management, 1800 Duke St., Alexandria, VA 22314;
(703) 548-3440; Hrmag@shrm.org. 2011
Contributors
The following SHRM editors and writers contributed to the 2012 HR Trendbook:
Chris Anzalone; Steve Bates; Erin Binney; Jennifer Chinworth; Nancy M. Davis;
Joanne Deschenaux, J.D.; Kathy Gurchiek; Rebecca R. Hastings, SPHR; Gretchen Kraft;
Bill Leonard; Roy Maurer; Dori Meinert; Stephen Miller, CEBS; Theresa Minton-Eversole;
Beth Mirza; Desda Moss; Leon Rubis; John F. Scorza; Allen Smith, J.D.; Aliah Wright; and
SHRMs Manager of Workplace Trends and Forecasting Jennifer Schramm. SHRM designers
were Shirley E. Raybuck and John R. Anderson Jr. Other contributors include freelance
writers Eric Krell and Joanne Sammer, and John T. Mooney, principal of the training and
consulting firm Consultive Source.
See each 2012 HR Trendbook section for links to additional material at
SHRM Online. And let us hear from you at the SHRM Publishing and
E-Media Group on SHRM Connect, where members may interact with
SHRM publishing staff and see what were working on. Go to http://
community.shrm.org/?q=node/1416 and click on Join this group.
Online Resources
54
78
96 ______
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PREDICTING
CHINAS FUTURE
IS HUMANLY POSSIBLE
No one understands the world of work better
than ManpowerGroup.

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2011 ManpowerGroup.All rights reserved.


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54 HR Magazine HR Trendbook 2012
Though economists say we are now
well into our third year of recovery from
the 2007-09 recession, high rates of
unemployment, continued economic
uncertainty, volatile markets and
debt-burdened national economies have
made many around the world feel like
the Great Recession never ended. These
factors are prompting many leading
forecasting bodies to readjust their
views of what lies ahead in 2012. Most
predictions are less optimistic now than
they were when 2011 began.
Slower Growth
In its fall World Economic Outlook, the
International Monetary Fund predicted
only a 1.6 percent rate of gross
domestic product growth in advanced
economies by the end of 2011. Even
this anemic forecast was
qualified by caveats. If
European policy-makers
are not able to contain
the euro-zone crisis
or U.S. policy-makers
cannot balance support
for economic
recovery with judicious fiscal policies,
authors of the Outlook predict global
growth will be much lower. And, another
spate of shocksa major natural
disaster or rising political unrest in key
nationscould lead to market volatility
that will hinder global recovery. They
warn that strong coordinated action
worldwide will be needed to avoid a
decade of stagnation and lost growth in
the advanced economies.
On the global stage, while emerging
markets are growing, there is strong
uncertainty in Europe. If, for example,
Greece ultimately defaults on its debt,
Merrill Lynch estimates that the shock
to growth in Europe will contract overall
output by 1.3 percent in 2012. This
uncertainty in Europe, led by Greece,
is driving volatility in the markets and
increased pessimism as other countries
across the continent, especially Italy,
Ireland, Portugal and Spain, struggle with
debt consolidationand social unrest,
as austerity measures are implemented.
Another Jobless Recovery
Poor performance of the job market is
keeping pessimism high in the United
States. A September CNN/ORC Interna-
tional poll found that 90 percent of
Americans surveyed said economic
conditions remain poor.
World leaders and economists
agree that job growth is the critical
factor in improving the global economy.
Inclusive, job-creating growth must
be our goal. But today, we risk losing
the battle for growth, the International
Monetary Funds Managing Director
Christine Lagarde said during a recent
speech. With dark clouds over Europe,
and huge uncertainty in the United
States, we risk a collapse in global
demand.
Revised estimates for global and
U.S. growth was the central theme at
the annual fall National Association
of Business Economists (NABE)
conference. The associations October
NABE Industry Survey found that
84 percent of respondents expect gross
domestic product to grow at a pace of
just 2 percent or less from fourth-
quarter 2010 to fourth-quarter
2011, up from only 23 percent
who forecast such a low level
of growth in July.
Labor market
conditions are expected
to improve only gradually
as job growth remains
tepid. Unemployment
is expected to remain
above 8 percent for the
next four years, FedEx
Chief Economist Gene Huang
said at the conference. Full
Feels Like Recession, But ...
By Jennifer Schramm, GPHR
ECONOMIC OUTLOOK
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employment is not expected to return until
2015.
Pessimism around job growth is
exacerbated by growing fear that policy-
makers are incapable of reaching the
needed consensus to effectively counteract
medium- and long-term weaknesses in
the U.S. economy. According to the fall
NABE Outlook Survey report, the two main
challenges for economic growth are:
Low consumer and business
confidence.
Uncertainty about the ability of policy-
makers to agree on effective strategies.
We are dealing with an unprecedented
situation, said Donald Kohn, senior fellow
at the Brookings Institution and a former
vice chairman of the Federal Reserve,
speaking at the conference. It cannot be
a coincidence that the drop in household
and business confidence coincided with the
debt-ceiling debate.
Political leaders need to work through
their differences to reach sensible
solutions, Kohn said.
Despite gloomier revised growth
projections, most economists surveyed by
the association said they did not expect
a double dip: Only 13 percent of the
respondents expect the economy to slip
back into recession.
In addition, the U.S. trade deficit
declined sharply in July and remained
unchanged in August. As a result, Goldman
Sachs upgraded its 2011 third-quarter
gross domestic product forecast.
The Institute of Supply Managements
closely watched nonmanufacturing index,
while still weak, showed that activity in the
nonmanufacturing sector grew in October
for the 23rd consecutive month. Its
manufacturing report showed that activity
in that sector expanded during October for
the 27th consecutive month. The overall
economy grew for the 29th consecutive
month.
Business investment is the bright spot
in the forecast, Huang said. We expect
spending on business equipment and
software to increase by 9.2 percent in 2011
and 7.7 percent in 2012. The downside:
Many business leaders are investing in
capital expenditures such as equipment or
technology rather than adding to payrolls.
ECONOMIC OUTLOOK
HR Trendbook 2012 HR Magazine 55
Risk of Long-Term Unemployment
The recession affected different demographics of workers in a number of ways. For example,
an analysis of U.S. Census data from the Social Science Research Council found that during
the recession, womens earnings took less of a hit than mens. Womens earnings fell $253
on average compared with a drop of $2,433 for men, across all education levels. While men
still out-earn women by a large margin, this trend narrowed the gender wage gap slightly. One
explanation for the difference is that sectors dominated by men, such as construction, lost
jobs disproportionately from 2007 to 2010. Women are outpacing men in obtaining higher
education, and this is likely to influence future wage trends; individuals who never completed
high school saw a loss of earnings more than three times greater than those with a graduate
or professional degree. However, many state and local government jobs that will be lost in
2012 due to spending cuts are likely held by women.
Throughout the recession and continuing today, the young are more likely to be
unemployed or underemployed. Furthermore, an extended jobless recovery or rise in long-
term unemployment may influence wage growth. Entering the job market during a time of
elevated unemployment has been shown to have a lasting impact on lifetime earnings, so
the extended period of joblessness could have a far-reaching influence on Millennials. At the
same time, older workers who are laid off are more at risk of long-term unemployment.
In a downturn this deep and this long, no one is sheltered. There is no broad group that
hasnt seen rising unemployment, says Heidi Shierholz, an economist at the Economic Policy
Institute.
One of the most striking changes in the U.S. employment situation since the recession
began has been the increase in the number of long-term unemployed. Its like nothing we
have seen since the Great Depression, Shierholz says.
Before the recession, long-term unemployment was often viewed as a problem that,
unlike many of its European counterparts, the United States had somehow managed
to evade. While the United States still has lower long-term unemployment rates than
other developed countries studied by the Organisation for Economic Co-operation and
Development, it is starting to catch up and had a huge increase in this category of
unemployment from 2008 to 2011.
The way to bring long-term unemployment down is to get jobs back in general,
Shierholz says.
The U.S. unemployment rate stood at 9 percent in October, according to the U.S. Bureau
of Labor Statistics. The number of long-term unemployedthose jobless for 27 weeks or
morewas 5.9 million in October and accounted for 42.4 percent of the unemployed.
Once out of work beyond six months, job seekers prospects for finding work at wages
comparable to those at their previous jobs declines. The risk of the development of a
permanently large population of long-term unemployed and underemployed makes the rise in
the U.S. long-term unemployment rate from 2008 to 2011 very worrying indeed .
U.S.
9.5
30.4
OECD
26.2
33.5
U.K.
24.8
34.9
Spain
18.8
40.5
France
39.8
40.5
Germany
53
47.3
Percent Share of All Unemployed Out of Work 12 Months or More
Source: Organisation for Economic Co-operation and Development (OECD).
2008 2011
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Economic Variables
Economic forecasting has become more
difficult because the variables, and
economic players on the global field,
have expanded. Some factors that will
influence prospects for economic growth
during 2012 include:
Interest rates. A little over a month
after announcing a plan to hold interest
rates near zero through at least mid-
2013, Federal Reserve Chairman Ben
S. Bernanke announced in September
that the Fed would sell $400 billion
worth of shorter-term securities and
buy longer-term ones. The strategy is
intended to boost the economy by help-
ing to lower long-term interest rates
on mortgages and corporate borrowing
and thus encourage investment. Both
Fed plans were considered somewhat
controversial. Unfortunately, if these
approaches do not work well, there are
few options left for the Fed to boost
growth.
Inflation and consumer spending.
According to Towers Watson, employees
will get an average salary increase of
about 2.8 percent in 2012. This was up
slightly from the 2.6 percent employers
said they planned for 2011. Unfortu-
nately, these increases are considered
unlikely to keep up with inflation for
the majority of employees. If consumer
costs outpace wage gains, U.S.
consumer spending is unlikely to be a
major engine for revving up the economy.
The costs of key goods such as fuel,
education, housing and health care will
be critical factors influencing consumer
spending. In a recent speech, Carl
Shapiro, a member of President Barack
Obamas Council of Economic Advisers,
said: The economy remains fragile in
the aftermath of the housing bust and
financial crisis. Consumer confidence
has fallen recently, and, on top of that,
state and local governments continue
to pare spending. Thats an ongoing
negative contribution to the recovery.
Housing and construction. In its
November report, the U.S. Commerce
Department said construction spending
rose 0.2 percent in September after
reaching 1.6 percent in August. Depend-
ing on the market sector, analysts offer
varying predictions for growth in real
estate sales during 2012. According to a
September Reuters poll of economists,
there were mixed views on whether the
worst would be over for the U.S. housing
market by the end of 2011. Overall,
the economists surveyed forecast that
existing home sales would improve
only modestly and most predicted a
weakened housing sector for at least a
few more years.
Global trade. In September, faced
with increasing risks and uncertainty,
the World Trade Organization revised
downward its estimate for growth in
global goods trade in 2011 to 5.8 percent
from its previous forecast of 6.5 percent.
Emerging markets growth. The
International Monetary Fund continued
to predict robust growth in real gross
domestic product of 6.4 percent in
emerging and developing economies.
Rising employment, a young population,
a growing middle class and rising
consumption are propelling the growth.
Weak Demand, Skills Shortages
Throughout the recession and recovery,
HR professionals have provided insight
into some of the key labor market trends
preoccupying economists. One insight
addresses the question of whether the
aftermath of the recession has led to
mainly a cyclical or demand-based jobs
crisis or to a more-lasting structural
problem.
If there is just not enough aggregate
demand in the economy to provide
the majority of job seekers with work,
employment levels should improve
once the overall global economy
strengthens. But if the problem is
more structuralif, for example, new
technologies have automated and
eliminated entire categories of jobs, or
industry skill demands have changed
substantiallythere could be a growing
problem of skills shortages even while
unemployment rates stay high.
It is a fair bet that aggregate demand
remains the main problem while pockets
of skills mismatches persist, despite
the high number of job seekers. Its
primarily demand, because we see high
unemployment across many industries.
It looks very broad-based, Shapiro says.
The key: Not to allow it to turn into a
structural problem.
Surveys of HR professionals indicate
that there could be at least some areas
in the economy where skills shortages
may be a factor. For example, data from
the Society for Human Resource Manage-
ments (SHRM) Leading Indicators of
National Employment show that even as
employment expectations started to level
off in 2011, recruiting difficulty generally
continued its slow rise. The recruiting
difficulty index is based on the difficulty
HR professionals report in finding
candidates for strategic positions
56 HR Magazine HR Trendbook 2012
ECONOMIC OUTLOOK
New Skills Required?
Organizations that were hiring full-time staff for completely new positions were asked, Do new positions you are hiring for require new skills?
Construction,
mining, oil and gas
Federal
government
Finance Health Manufacturing State and
local government
Services -
professional
High-tech Total
Number of respondents 72 28 71 12 78 38 85 83 467
Approximately the same types of skills 29% 43% 28% 21% 42% 29% 23% 28%
A mixture of new skills and the same
types of skills
61 39 59 65 50 48 64 57
Completely new and different skills 10 18 13 14 8 22 13 15
Percentages may not total 100 percent due to rounding. A dash indicates that the sample size was too small for analysis.
Source: SHRM Poll: The Ongoing Impact of the Recession.
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HR Trendbook 2012 HR Magazine 57
generally, jobs with higher and special
skill demands.
Similarly, the SHRM Jobs Outlook
Survey report for the final quarter of
2011 shows that even as HR profes-
sionals optimism about the job market
has gone down, they still report having
problems filling skilled jobs. Only 34 per-
cent of respondents have some level
of confidence in the U.S. job market for
the fourth quarter, a steep drop from
the second quarter, while 57 percent
expressed some level of optimism about
job growth. Three-quarters of respon-
dents said the workers they had the
most difficulty hiring in the third quarter
were overwhelmingly skilled profession-
als, distantly followed by skilled manual
workers. Finally, a November survey of
HR professionals shows that in many
industries, new jobs require new skills
in some cases, almost completely new
and different skills compared to jobs lost
in the recession.
HR and staffing professionals have
noticed the irony of having a harder time
recruiting while unemployment levels
remain so high. The more specific the
skills requirements, the more difficult
recruiting has been. For entry-level
jobs, its completely different. But from
a skilled jobs perspective, people are in
lockdown. They are fearful to make that
change, says John Hasna, manager of
talent acquisition at TD Ameritrade in
Omaha, Neb., and a member of SHRMs
Staffing Management Special Expertise
Panel. Even if your companys balance
sheet looks good, there is so much
uncertainty. According to Hasna, this
uncertainty is making many potential
job candidates much choosier about
accepting job offers. Even unemployed
candidates are more reluctant to
relocate. Were getting, Maybe at a
later time when things are more stable.
Theyre not willing to take the risk.
Until hiring rates improve and the
global economy gains sustainable
momentum, this lack of confidence
in the future job market is likely to
influence both employers and job
seekers. Says Hasna, Theres a cycle
that needs to be broken.
ECONOMIC OUTLOOK
Employment Expectations Are Leveling Off
This line graph denotes the employment expectation index figures generated each month by the Society for Human Resource Managements Leading Indicators of Employment
report. Each index figure reflects the percentage of HR professionals who expect employment at their organizations to increase in the following month minus the percentage who
expect employment to decline.
60
50
40
0
20
-20
30
-10
10
-30
Manufacturing employment expectations Service sector employment expectations
Dec-07 Mar-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Jun-08 Nov-11
Recruiting Difficulty Is Trending Up
This line graph denotes the recruiting difficulty index figures generated each month by the Society for Human Resource Managements Leading Indicators of Employment report.
Each index figure reflects the percentage of HR professionals who say recruiting difficulty of candidates for the jobs of most strategic importance at their organizations increased
in the previous month minus the percentage who said it declined.
Manufacturing recruiting difficulty Service sector recruiting difficulty
Dec-07 Mar-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Jun-08 Nov-11
20
15
10
-10
0
-20
5
-15
-5
-25
-30
-35
-40
Source: SHRM Leading Indicators of National Employment historical data, www.shrm.org/line.
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COMPENSATION & INCENTIVES
Trends
Companies will continue to take a
conservative approach to pay, as pay-for-
performance strategies and executive
compensation take center stage. Here are
some key compensation and incentives
trends to look for in 2012, according to
surveys and experts:
Salaries rise, barely. Base salaries
for salaried exempt employees are
projected to increase 2.9 percent in 2012,
according to Aon Hewitt. This marks a
slight improvement over the 2.7 percent
increases in 2011 and the third year of
increases, albeit small ones, since the
record-low bump in 2009 of 1.8 percent.
In 2012, salary increases are expected to
remain more than 20 percent lower than
the pre-recession increases of 3.7 percent
in 2007 and 2008.
Differentiation deepens. Rewards
professionals will seek to gain more bang
for their compensation buck by granting
higher salaries and higher salary increases
to top performers and workers in positions
that deliver greater value to their organi-
zations. To that end, many HR professionals
will focus on carving out higher portions of
variable pay for top performers.
Claw-backs. On the compliance front,
HR professionals will help instituteand
influenceclaw-back policies on executive
compensation as officials at the U.S.
Securities and Exchange Commission
finish writing the claw-back rules required
by the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
Compensation goes global. With
global-leveling efforts under way to
systemically establish the relative value of
jobs and their corresponding pay ranges
worldwide, rewards professionals are
tailoring local compensation packages to
better reflect country- and region-specific
economic conditions and labor markets.
Rewards as a strategy. Most rewards
professionals have traditionally sought
to align compensation programs with
business strategy; however, leading
companies are beginning to integrate
rewards into strategic planning so that
compensation planning takes place as the
strategic vision is crafted, not after the fact.
Variable pay re-examined. Given
economic volatility and tight budgets, more
HR professionals will take a hard look
at variable pay programs in the general
workforce to determine if they truly
motivate desired performance or if they
simply represent deferred salary.
Cash is king. Volatile economic
conditions during the past year have
elevated the importance of base pay
among all employees, even top performers
who, like the rest of the workforce, rate
job security and base pay as the top two
attractions to new jobs, according to
Towers Watson. Additionally, executive
compensation designers expect the
portion of cash in executive compensation
packages to increase during 2012.
Keep it simple. After years of
engineering complex compensation
programs designed to make sure the
right compensation goes to the right
people, rewards professionals are
simplifying. Business-unit managers seek
more-flexible compensation programs
that can be adapted to
meet strategic needs
as business
conditions
quickly
change.
Executive perks trimmed. On the
other side of the pay-for-performance
coin, Dodd-Frank rules and shareholder
pressure are driving executive compen-
sation planners to reduce the use of
perquisites. These might include excise tax
gross-ups and severance multiplescash
severance payments that may be equal to
two or three times an executives annual
base compensation, for exampleand other
nonperformance-based elements that often
garner negative headlines.
Executive compensation communi-
cations. Overall compensation for chief
executive officers has risen roughly
20 percent in the past three years. Their
pay should rise, perhaps considerably,
again in 2012 due to equity-based
long-term incentives granted in 2008
and 2009 when most stock prices were
at historic lows. Perceptions about the
disparity between executive pay and
compensation for the general workforce,
as well as shareholder demand for pay-for-
performance accountability, are driving
more publicly listed companies to avoid
legalese in their proxy statements. This,
in turn, is drawing more communi-
cations and HR profes-
sionals into the
proxy-drafting
process.
58 HR Magazine HR Trendbook 2012
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60 HR Magazine HR Trendbook 2012
The Entitlement Era Is Over
The Great Recession and sluggish
economic growth in its aftermath have
caused employers to rethink their
approaches to pay. One result: Renewed
emphasis on rewarding top performers
even if overall pay-raise budgets are
smaller.
According to Myrna Hellerman, senior
vice president at Sibson Consulting,
much can be learned from best-practice
companies where base pay increases
must be earned, based on demonstrated
individual achievement. Pay raises are not
an entitlement; the entitlement era is over,
she maintains.
Other characteristics of the new pay
mind-set:
If there is no budget for increased base
pay, some high achievers might still get
increases.
If there is a base pay increase budget,
some employees will get nothing while
significant amounts will be given to the
highest achievers.
Executives are thinking more creatively
about incentive compensation. Instead of
annual plans, payouts might be earned
but delayed until a company returns to
profitability, notes Jim Kochansky, a senior
vice president at Sibson.
In addition, companies are carving
out a portion of their merit budgets to
be set aside for top performers. If you
have a 3 percent budget for increases,
employees are going to expect to receive
a 3 percent raise, Kochansky says. But
if the company instead carves out 0.5
percent of the budget for top performers
and communicates that the general budget
for pay increases is 2.5 percent, then the
expectation among average workers will
be for a 2.5 percent raise. Carve-outs
should be done early in the budget
process so money is set aside and kept
distinct, he recommends.
Beyond Alignment
In the telecommunications industry where innovation reigns, T-Mobile has moved on
to the next generation of total rewards management.
Vice President of Employee Engagement and Rewards Bruce ONeel reports that
rewards represent a core element in how T-Mobile thinks about the rollout of new
devices. We pick the best and the brightest to participate in our launches.
So, stores with the best performance are the first to launch products.
The rollout of new devices becomes a nifty nonfinancial reward for top
performers. And, the process of how the wireless company rewards
employees on a new product initiative is conducted during strategic
planning.
Alignment after strategy setting is so yesterday.
Integrating rewards into strategy planning is a leading practice likely
to gain momentum in 2012 and beyond, notes compensation consultant
Juan Pablo Gonzlez. He cites T-Mobile as a shining example in Shockproof: How to
Hardwire Your Business for Lasting Success (Wiley, 2010), co-authored with his Axiom
Consulting Partners colleagues.
Traditionally, rewards professionals would seek to align pay with business
strategy, Gonzlez notes. Thats very valuable. The leading practice is managing
rewards as an element of the business strategy.
COMPENSATION & INCENTIVES
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retire the status quo

WONDERING WHY YOUR BENEFITS


PROVIDER DOESNT OFFER A
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DEFINED CONTRIBUTION | DEFINED BENEFIT | HEALTH SAVINGS ACCOUNTS
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COMPENSATION & INCENTIVES
62 HR Magazine HR Trendbook 2012
Three Tough Questions
Given the way the economic and regulatory
environments are shaping up in 2012, HR and
rewards professionals likely will confront some
tough questions during the next 12 months,
including the following:
Question: What is our return on investment in
people?
Driver: Executives outside of HR may still
think that compensation represents a cost rather
than an investment. This outlook likely drives
behavior in terms of how much sweat equity
and care organizations place in the design and
execution of their rewards programs, notes Tom
McMullen, reward practice leader at Hay Group.
To help counteract this attitude, HR leaders
should work on this difficult return-on-investment
calculation.
Question: What is happening with Dodd-Frank?
Driver: Delays by the U.S. Securities and Exchange
Commission in translating the expansive Dodd-Frank Act
into specific provisions, an activity originally scheduled
to conclude in August, has some executive compen-
sation experts privately questioning how the law will be
implemented. HR professionals at publicly listed companies
must decide whether to wait and see or to make changes
before the commission
finishes the regulations;
either way, corporate
compliance capabilities
should be primed and ready
to respond.
Question: Are our
rewards professionals
totally empowered and
accountable?
Driver: More organizations are adopting a total rewards
approach to more effectively attract and retain top
talent. However, compensation consultants report that
many HR professionals who manage rewards programs
are responsible for compensation and benefits, but not
accountable for nonfinancial rewards.
U.S. Salary Increases
2007 2008 2009 2010 2011 Projected
Record Low for 2012
Executives 4.0% 3.9% 1.4% 2.4% 2.8% 2.9%
Salaried exempt 3.7 3.7 1.8 2.4 2.7 2.9
Salaried nonexempt 3.6 3.7 1.9 2.4 2.8 2.9
Nonunion hourly 3.6 3.6 2.0 2.4 2.7 2.9
Union 3.3 3.4 2.2 2.5 2.6 2.7
Source: Aon Hewitt U.S. Salary Increase Survey findings, September, based on responses from 1,494 large
U.S. companies.
Projected Pay Increase by Performance Level, 2012
Performance Percentage of Workforce Average Pay Increase
Highest-rated 8% 4.8%
Next highest-rated 28 3.8
Middle-rated 55 3.1
Low-rated 7 1.1
Lowest-rated 3 0.3
Source: Mercer 2011/2012 US Compensation Planning Survey, based on responses from more than 1,200
mid-size and large U.S. employers.
Three Carve-Out Models
The table below illustrates how the percentage of employees designated as top performers
might affect the salary increases they receive. It assumes an overall 3 percent budget for
pay increases with a 0.5 percent carve-out for top performers.
Percentage of performers Percentage increase
Performance culture Low Average High Low Average High
Many high performers 5% 55% 40% 0 2.63% 3.88%
Typical distribution 10 65 25 0 2.78 4.78
Fewer high performers 15 70 15 0 2.94 6.27
Source: Sibson Consultings How to Use Carve Outs to Truly Pay for Performance, 2011.
Top 5 Pay-for-Performance Objectives
1. Attract, retain or reward talented employees.
2. Drive specific behaviors or results.
3. Encourage employee engagement.
4. Motivate employees to work harder.
5. Best way to allocate limited funds.
Source: Mercer 2011 Next Generation of Pay for Performance Survey report, based on responses
from 349 North American organizations.
For additional coverage of
compensation surveys and
incentives, see the online
version of this section of the
2012 Trendbook at www.shrm
.org/hrmagazine/12Trendbook.
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_____
64 HR Magazine HR Trendbook 2012
COMPENSATION & INCENTIVES
Shareholders Say Performance Matters, Too
The say-on-pay votes are in. The majority of shareholders say they
approve of executive compensation plans. A deeper analysis of
these votes, however, indicates that pay for performanceat least
as currently definedmay be more important than ever.
Say on pay is a Dodd-Frank Act provision that requires a
nonbinding shareholder vote for or against executive compen-
sation plans. Of the more than 2,300 Russell 3000 companies
whose say-on-pay votes were analyzed in August by Institutional
Shareholder Services Inc.,
a business management
consultancy, only 1.6 percent
failed to receive a majority of
shareholder support for their
executive pay practices.
Pay-for-performance
concerns were a primary
cause of no votes.
It appears that
performance, perhaps even
more than executive pay, is pivotal: Nearly 50 percent of the
companies that failed their say-on-pay votes reported negative
total shareholder returns in the double digits during the past three
years.
Twenty-five percent of the negative say-on-pay votes occurred
at companies in the energy sector. Homebuilders and real estate
development companiessectors that have underperformed in
recent yearsfigured prominently among the 37 organizations
that suffered majority dissent on say on pay.
Dont Miss Reading
2012 Multistate Payroll Guide, by John F.
Buckley (Aspen Publishers, 2011). This book is
designed to keep payroll professionals informed
about all the complex rules that govern state
payroll matters, including wage and hour rules,
reporting and recordkeeping requirements, and
unemployment taxes.
Fair Pay, Fair Play, by Robin A. Ferracone
(Jossey-Bass, 2010). The author combines her
own 20 years of experience with interviews
with executives and compensation committees
to provide clear guidance on determining
appropriate pay packages, actions and designs.
Both are available at http://shrmstore.shrm.org
92%
Percentage of U.S. companies with at
least one type of variable pay plan in
2011
78%
Percentage of U.S. companies with at
least one type of variable pay plan in
2005
Source: Aon Hewitt U.S. Salary Increase Survey findings, September, based on
responses from 1,494 large U.S. companies.
98.4%
Percentage of U.S.-listed Russell
3000 companies surveyed
that received majority support
in shareholder say-on-pay
votes regarding executive
compensation
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BENEFITS
66 HR Magazine HR Trendbook 2012
Trends
Several of the foremost employee benefits
trends of 2011 are likely to remain
significant in 2012. Here are a few of them,
according to authoritative surveys and the
views of experts and employers:
Health care costs. U.S. employers
estimate that their health care benefits
costs will increase an average of
7.2 percent in 2012, according to a survey
by the National Business Group on Health.
Employers will continue using various
tactics to limit health care spending,
including increased cost-sharing by
employees and value-based plan designs
that promote cost-effective, evidence-
based treatments. Consumer-directed
health plans with health savings accounts
or health reimbursement arrangements
supported by employer contributions are
likely to continue
gaining favor.
Health care
reform. Another
year means another
round of health care
mandates under the
Patient Protection
and Affordable
Care Act, despite
lingering questions
about the acts constitutionality. In 2012,
employers will have the option of reporting
the cost of employer-provided health care
on employees
W-2 forms;
this reporting
becomes
mandatory
for large
employers in
2013. Starting
on March 23,
2012, plan
administrators
will be required
to issue employees
standard, multipage
summaries for each plan
option. Throughout the year,
HR will be charged with keeping
up with new legal requirements and
communicating what the changes mean
to managers and
employees.
Family health.
Employees are being
encouraged to improve
and manage their
health and thereby
hold down long-term
costs through
wellness programs
that use incentives
such as plan premium discounts. These
initiatives are expanding to include family
members. Incentive payments are being
tied to meeting
obtainable
health goals,
not just to
participation.
Defined
contribution
plans. Along
with automatic
enrollment in
401(k) and similar
plans and automatic
contribution escalations,
employers are providing
more retirement planning
guidance, including financial
education, independent investment
advice and fee disclosure reporting. More
employers are arranging fund offerings in
tiers with investment options that better
match a participants risk tolerance and
desire to control investments.
Flexible workplaces. More HR profes-
sionals are deploying flexible workplace
programs and policies to recruit and retain
top talent, enhance engagement, reduce
turnover costs, and increase productivity.
Employers are adopting policies that
allow telecommuting, flexible work hours,
compressed workweeks, phased retirement
and other practices that allow employees
to better manage work, leisure and family
responsibilities.
7.2%
Percentage by which
U.S. employers expect
employee health
care benefits costs to
increase in 2012
W-2 Requirements Silver Lining
The health care reform laws W-2 reporting requirement is an opportunity
to better inform employees about their health and wellness benefits,
according to Jennifer Benz, chief executive officer of Benz Communications.
The intent of requiring the value of employer-provided health care to
be reported on employees W-2 statements is to help people understand
the true cost, she explains. Many companies have not communicated
this information before, and their employees are going to have sticker
shock when they see how much the cost of their health care really is. But
this should be used as an opportunity to talk about why health care is so
expensiveraising issues such as unnecessary overutilization of low-value
servicesand the investment that the company is making in employee
benefits.
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________________
Benefits Summaries Deadline Delayed
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___________________
68 HR Magazine HR Trendbook 2012
BENEFITS
With the cost of employee health care ben-
efits expected to increase by 7.2 percent
in 2012, large U.S. employers are planning
to have workers share more of the cost,
according to a survey by the National Busi-
ness Group on Health. Employers are facing
a multitude of challenges posed by rising
health care costs, the weak economy, and
the financial and administrative impact of
complying with the new health care reform
law, says Helen Darling, president and chief
executive officer of the nonprofit association
of mostly large U.S. employers based in
Washington, D.C. Employers are being
much more aggressive
in their use of cost-
sharing techniques and
cost-control programs
and are making certain
that employees have
more reasons to be
cost-sensitive health
care consumers.
Employers are
shifting to consumer-
directed health plans
(CDHPs) that combine
a health plan with a tax-advantaged
account enrollees can use to pay
for health care. According to
the survey, 73 percent of
employers will offer
employees at least
one CDHP in 2012,
a sharp increase
from 61 percent
that offered such a plan in 2011.
In addition, 17 percent will pro-
vide or plan to provide a CDHP as
the only plan in 2012. The most
common type is a high-deductible
plan with a health savings account.
To promote family members health, 57
percent of respondents said they provide
employees spouses and domestic partners
access to telephonic or online weight man-
agement coaches. Approximately one-third
of employers make these resources avail-
able to employees children.
The following mandates under the Patient
Protection and Affordable Care Act are
effective Jan. 1, 2012, unless otherwise
noted. All are subject to change based
on regulatory, congressional or judicial
action.
Employer reporting on W-2s. U.S.
employers may begin reporting the
cost of employer-provided health care
coverage on their employees W-2
forms. This reporting is optional for all
employers for the 2011 Form W-2. For
small employersthose filing fewer than
250 W-2 formsthis reporting remains
optional for tax year 2012 and later, until
further guidance is issued.
Comparative effectiveness fees.
Insurers and self-insured plans will be
required to pay a fee to fund research
comparing the effectiveness of medical
treatments. The fee will be $1 per
covered individual for all policy years
that end on or before Sept. 30, 2013.
After that, the fee will increase to $2 per
policyholder.
Standard health plan summaries.
As early as March 23, 2012, under
a proposed rule, all health plans and
issuers must provide a summary of
benefits and coverage, along with a
uniform glossary of terms, to enrollees
and potential enrollees upon request and
before coverage is selected. In addition,
health plans and issuers must provide
notice at least 60 days before making
any significant modification to a plan or
coverage during the plan or policy year.
Long-term care. The U.S. Department
of Health and Human Services was
expected to release further details of the
Community Living Assistance Services
and Supports Act. But in October, the
department announced that the health
care reform laws program to provide
long-term care insurance through the
workplace was unworkable and would not
be implemented. Critics charged that the
program, intended to be self-funded, was
financially unsustainable without major
government subsidies in addition to
premium collections.
$
1
The fee, per covered individual,
that insurers and self-insured
health insurance plans will
pay to fund comparative
effectiveness research on
medical treatments
2012 Health Care Reform Mandates
U.S. Employers Revamping Health Care Benefits
Cost-Sharing Strategies
To help control cost increases and begin driving costs down, employers are planning to
use a wider variety of cost-sharing strategies in 2012. Some examples:
Strategy Percentage of
survey respondents
Increase the percentage that employees contribute to their premiums 53%
Increase in-network deductibles 39
Increase out-of-network deductibles 23
Increase out-of-pocket costs 22
Source: National Business Group on Health survey, based on
responses from 83 of the nations largest corporations, June.
53%
Percentage of employers that plan
to increase the amount employees
contribute to their health
insurance premiums in 2012
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2011 Prudential Financial. Group Life, Disability, Dental and Long-Term Care Insurance. *All products may not be available to companies of all sizes. Group Insurance
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Escalating costs have many employers cutting back on work-
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Online tools and toll-free customer service
Consultative, administrative and marketing
support from experts
Contact Bob Patience, Vice President, Voluntary Benefits,
Prudential Group Insurance at 973-548-6233.
Download our Fifth Annual Study of Employee Benefits:
Today & Beyond at www.prudential.com/group
PRUDENTIAL GROUP INSURANCE
CHALLENGE US TO HELP YOU
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BENEFITS
70 HR Magazine HR Trendbook 2012
2011 Employers
Guide to Health Care
Reform, by Brian
M. Pinheiro, Jean C.
Hemphill, Clifford J.
Schoner, Jonathan
M. Calpas and Kurt
R. Anderson (Aspen
Publishers, 2011).
This step-by-step practical guide is for
employers struggling to keep up with
the rapid pace of changes affecting their
health benefits plans.
2012 Multistate
Guide to Benefits
Law, by John F.
Buckley (Aspen
Publishers, 2011). If
you oversee benefits
in more than one
state, this book
covers every kind
of state-specific question about health
benefits, life insurance, disability and
leave benefits, and more.
Survey: Telecommuters
Are Happier, Healthier
Telecommuters are more loyal and
more productive employees than
those who work in offices, according
to a survey from Staples Advantage,
the business-to-business division of
Staples Inc., based in Framingham,
Mass. The survey found that
86 percent of telecommuters said they
felt better and were more productive
when they work from home.
The survey was conducted in May
among more than 170 office workers
who work at least one day per week
from home for U.S. companies of
various sizes and across industries.
Telecommuters said they were:
Happier and healthier. Telecom-
muters said their stress levels have
dropped 25 percent on average and
their overall happiness has increased
28 percent since they started working
from home. Seventy-three percent said
they ate healthier.
More loyal. Seventy-six percent of
telecommuters were more willing to put
in extra time on work and said they are
more loyal to their company.
Better balanced. More than
80 percent said with telecommuting
they maintained a better work/life
balance.
Telework 2011, a report from
WorldatWork, says the U.S.
teleworking population was
26.2 million in 2010, representing
nearly 20 percent of the U.S. adult
working population. That year, 84
percent of workers who telecommuted
did so one day per week or more, up
from 72 percent in 2008.
Employee data for the WorldatWork
report was collected in December
2010 via interviews with 1,002
randomly selected U.S. adults age 18
and older.
26.2M
Number of U.S. workers who
telecommuted in 2010
Dont Miss Reading
Both are available at http://shrmstore.shrm.org.
For additional coverage of ben-
efits surveys and a timeline fea-
turing future health care reform
mandates, see the online version
of this section of the 2012 Trend-
book at www.shrm.org
/hrmagazine/12Trendbook.
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72 HR Magazine HR Trendbook 2012
The Future of Retiree Benefits
Employers Reducing Prescription Drug Coverage
As employee benefit budgets remain tight, U.S.
employers are adopting plan design changes that
reduce drug benefit coverage and improve pricing,
according to the Pharmacy Benefit Management
Institute, a provider of industry research and
education.
The institutes 2011 survey was completed by
drug-plan sponsors representing 5.2 million covered
employees, spouses and dependents. The findings
revealed that:
Plans using a four-tier design increased from
17 percent to 25 percent from 2010 to 2011.
Nearly 50 percent of large employersmore than
20,000 covered personsnow have a four-tier
plan design, typically providing the most generous
coverage for generic versions of brand-name
prescription drugs.
Specialty drug co-pays increased by 37 percent
in 2011. Specialty drugs are high-cost and highly
complex pharmaceuticals, often developed through
biotech research, that increasingly are being
used to treat serious medical conditions including
cancer, multiple sclerosis, rheumatoid arthritis and
other diseases. The average specialty drug co-pay
grew from $61 in 2010 to $84 in 2011. Nearly
one in four employers now place specialty drugs
on a fourth tier, requiring the most cost-sharing.
Reduced coverage of specialty drugs is on
the rise as well, as 24 percent of employers now
restrict coverage of specialty
pharmaceuticals under the
medical benefit, up from
12 percent in 2010.
Pharmacy benefits management
pricing pressure is mounting on
mail delivery programs as the average
discount from the average wholesale
price rose by 10 percentage points for
generics dispensed through the mail, increasing
from 58 percent in 2010 to more than
68 percent in 2011.
Managing Specialty Drug Benefits
A 2011 national survey by the nonprofit Midwest
Business Group on Health, representing private
and public employers, shows that most U.S.
employers are using a traditional benefit design
for specialty drugs, including tiered formularies,
co-payments and co-insurance, instead of
value-based benefit designs that might be more
appropriate for biologic or specialty pharmacy
medications, according to the group. Value-based
designs might include lowering, rather than
increasing, co-pays for specialty drugs deemed
necessary for patient treatment and providing
health coaching to ensure compliance with medical
regimens and proper use of these drugsto avoid
hospitalization and other costs down the road.
e
or
, increasing
an
efits
fit Midwest
ing private
st U.S.
efit design
rmularies,
ad of
ht be more
harmacy
Value based
Business leaders are revisiting and
rethinking their strategies for managing
retiree medical benefits.
Employers have been easing away
from offering these benefit plans since
the early 1990s. Thats when they were
first required to account for future retiree
medical benefit liabilities on their balance
sheets. Now that health care reform is
taking hold, the landscape for retiree
medical benefits is changing once again.
The health care reform law includes
provisions to help employers manage their
retiree medical plans. But it may not be
enough to stem the tide away from these
benefits.
It is difficult for companies to keep
their past promises to pre-65 and post-65
retirees if they intend to be globally
competitive, says Paul Kersting, a
principal with Buck Consultants in New
York. More employers will move away
from sponsoring plans if they can.
Roughly 60 percent of employers
are reconsidering their approach to
providing retiree medical benefits or
plan to do so within the next two years,
according to a 2011 survey of 248
companies conducted by Towers Watson
and the International Society of Certified
Employee Benefit Specialists. Many
employers see health care reform as a
way to exit plan sponsorship by relying
on state health insurance exchanges
and other innovations in the reform law
to ensure that their companies retirees
have access to affordable coverage.
But most companies are not waiting
until 2014 when the exchanges are
slated to begin operating, according to
the survey. Employers are rethinking the
need to provide retiree prescription drug
coverage in light of enhancements like the
closing of the Medicare Part D doughnut
hole.
Health care reform can serve as a
catalyst for employers to rethink their
benefit strategies in a way to create as
much predictability in their health care
for retirees as possible, says Jim Parker,
president of Health Market Strategies, an
Indianapolis-based health consulting firm.
Some provisions of the reform law will
actually facilitate that.
BENEFITS
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_____________________________
BENEFITS
Regulations and Costs Shape Future 401(k) Plans
Under final rules issued by the U.S.
Department of Labor, those providing
services to defined contribution plans must
begin providing fee disclosure reports
to plan sponsors by April 1, 2012. Plan
sponsors, in turn, must begin providing
quarterly fee disclosure reports to plan
participants by May 31, 2012.
Fees should have been communicated
clearly to employers and employees 20
to 30 years ago, says benefits communi-
cations consultant Dennis Ackley,
president of Ackley Associates in Lees
Summit, Mo. Despite past omissions,
he adds, starting now to be clear and
forthright about fund and plan fees can
promote trust and encourage employees to
use their employer-provided plan to save
for their retirement needs.
Continued scrutiny by U.S. regulators
and legislators on the fees and outcomes of
defined contribution retirement plans will
help to shape the future of this market,
new research indicates.
Government regulations have had
a profound and varied effect on defined
contribution plans and administrators,
says Leslie Prescott, a consultant and
author of a 2011 report on retirement
trends for Boston-based Financial
Research Corp.
As a result of the new fee disclosure
requirements as well as evolving
economics, sponsors of defined contri-
bution retirement plans are focusing on
total plan costs and how they can be
reduced. Enhanced fee information is
becoming available to plan participants,
and there is heightening competition
among recordkeepers, Prescott says. The
spotlight on plan costs is causing plan
sponsors to seek out and use benchmark
data more frequently to uncover
opportunities to reduce plan costs, often
through plan redesign or change in plan
providers.
As always, change leads to both
opportunities and challenge, Prescott
continues. With more information
available about the costs of their plans
to plan sponsors and participants, plans
of all sizes will soon be able to evaluate
plan management in a way only the
largest plan sponsor could before. Asset
managers, advisors and recordkeepers
must take stock of their own situations and
will need to develop fitting strategies.
May 31, 2012
Date when defined
contribution plan sponsors
must begin providing
quarterly fee disclosure
reports to plan participants
74 HR Magazine HR Trendbook 2012
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________________________________
_______________________
BENEFITS
76 HR Magazine HR Trendbook 2012
More employers efforts to manage their
health care costs are focused on getting
employees to become better health care
consumers. However, employers have
realized that they cant just encourage
workers to be better consumers, says
Devon M. Herrick, senior fellow at the
National Center for Policy Analysis in
Dallas. They have to give employees the
tools and an incentive to become better
consumers.
The practice of health care consumerism
is multifaceted. Health care consumerism
means that employees are making healthy
choices throughout their daily lifeeating
right, exercising, not smoking, monitoring
their health numbers and doing everything
they can to change those numbers if they
are out of line, says Joann Hall Swenson,
health engagement best practice leader for
consultancy Aon Hewitt in Minneapolis. In
addition, it means that when employees do
use health care services, they are aware of
the cost and have an incentive to reduce
the cost. It all comes down to plan design,
incentives, a communication strategy and
facilitating right behaviors, Swenson
notes.
For example, education can help
employees make better choices when it
comes to pharmacy benefits. Drug prices
vary. Physicians often provide samples
of more-expensive drugs that can lead
individuals to forgo similar but less
pricey options such as generic versions of
brand-name prescriptions.
Explaining to employees how smarter
pharmacy shopping can benefit them
financially by saving funds in their
health savings account (HSA) or health
reimbursement arrangement (HRA)
can help them embrace health care
consumerism. If someone takes a certain
drug to treat allergies and realizes that
his out-of-pocket cost will use up his
entire HSA balance, that employee has an
incentive to look for a cheaper alternative,
Herrick says.
Providing Incentives
In many ways, efforts to move employees
toward greater health care consumerism
are similar to the push employers
have made to get employees to save
for retirement using 401(k) and other
defined contribution plans. In both cases,
more responsibility has been shifted
to employees, and employers are using
incentives to reward desired behavior. Just
as 401(k) plans provide matching contri-
butions to reward retirement plan partici-
pation, employers are using incentives,
such as contributions to HSAs and HRAs,
to spur greater employee engagement in
health care decision-making.
Even as incentives become more
common, these employers are adding
penalties to the mix, such as higher
premiums for employees who do not
participate in wellness programs designed
to boost employee health.
en employees do
ey are aware of
tive to reduce
n to plan design,
n strategy and
Swenson
can help
ices when it
s. Drug prices
ide samples
hat can lead
but less
eric versions of
s how smarter
It means that when
employees do use health
care services, they are
aware of the cost and
have an incentive to
reduce the cost.
Promoting Health Care Consumerism
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payroll, tax, HR and benefits administration.
Find out how ADP can help you focus on
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Call 800.CALL.ADP or visit www.ADP.com
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BENEFITS
HR Trendbook 2012 HR Magazine 77
Nonfinancial Factors Improve Motivation and Engagement
Employee loyalty is dropping in the U.S.
and worldwide, according to Mercers
Whats Working survey report. The
researchconducted from the fourth
quarter of 2010 through the second
quarter of 2011 in different global
regionsshows that the percentage of
workers seriously considering leaving
their organizations has risen since
the start of the worldwide economic
downturn. In the U.S., the increase was
9 points, from 23 percent in 2005 to
32 percent in 2011.
The analysis reveals that nonfinancial
factors play a prominent role in
influencing employee motivation and
engagement worldwidea finding
that could prove useful to employers
facing budget constraints. Workers say
being treated with respect is the most
important nonfinancial factor, followed by
work/life balance, type of work, quality of
co-workers and quality of leadership.
Among financial factors, base pay
ranks highest. Benefits and incentive pay
can be important to other aspects of the
employment dealsuch as attracting,
retaining and rewarding employees
but they are considered less important
by employees when
it comes to their
day-to-day motivation
and engagement at
work.
Employee
engagement reflects
the total work
experience, and a big
part of it is how you
are treated; what kind
of work you do; and how you feel about
your co-workers, bosses and the general
work environment, says Colleen ONeill,
a senior partner at Mercer and the
companys talent leader in the United
States and Canada. When financial
resources are limited, organizations can
leverage these nonfinancial factors to
effectively boost employee commitment
and productivity.
In the U.S., the importance of
financial and nonfinancial factors
closely mirrored the
global findings. Two
areas that scored
higher among U.S.
employees than
the global average
were benefits and a
working environment
that enabled workers
to provide good
service to others.
U.S. employees
rated learning and
development opportu-
nities, promotion
opportunities, and
incentive pay or
bonuses lower than
the global average.
Fairness
Concerns
Nonfinancial
rewards can impact
perceptions of the
overall fairness of
a rewards program. A 2011 study of
more than 500 professionals conducted
by WorldatWork, Hay Group and Dow
Scott, a Loyola University
Chicago professor of
human resources,
found that three of
the top five concerns
regarding the fairness
of rewards focus on
nonfinancial aspects
of the total rewards
offering, including career
development opportu-
nities, nonfinancial recognition, and
employee development and training.
We typically see more emphasis
of nonfinancial reward programs when
times get tough, says Tom McMullen,
Hay Groups North American reward
practice leader. But these programs
also tend to be sustained as the
economy improves.
Reward professionals view career
development opportunities as the
top reward fairness concern because
growth opportunities are in high
demand by employees, McMullen
continues. At the same time, career
development processes are not partic-
ularly developed in many organizations,
even though career development
concerns are the No. 1 retention issue
for employees.
How effective companies will be as
they attempt to shore up nonfinancial
rewards remains to be seen. This is still
virgin territory for a lot of organizations,
McMullen says. The career development
infrastructure in many organizations
is often informal and does not provide
a clear path for employees. In this
environment, an entry-level employee
might not know about her career path
options for the next five years of her
work life.
Organizations still have a lot
of work to do in terms of equipping
their managers with the tools and
data necessary to effectively manage
nonfinancial rewards, McMullen points
out.
Factors Influencing Motivation And
Engagement at Work
Scores near 100 are of middle importance, scores above 100 are more important and scores
below 100 are less important.
Global United States
Being treated with respect 119 123
Work/life balance 111 112
The type of work that you do 110 111
The quality of the people you work with 107 111
The quality of leadership in the organization 107 112
Base pay 106 104
Working in an environment where you can provide
good service to others
104 112
Long-term career potential 92 91
Having flexible working arrangements 91 91
Learning and development opportunities 90 81
Benefits 90 106
Promotion opportunities 89 77
Incentive pay and bonuses 84 71
Key to colors: Over 100 Under 100
Source: Whats Working survey report, Mercer, 2011.
32%
Percentage of U.S.
workers seriously
considering leaving
their organizations
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HR TECHNOLOGY HR TECHNOLOGY
Trends
Wanted: HR Professionals with Social Media Skills
Between May and August, more than
1,000 new ads for HR positions
included requirements for social media
skills, nearly a 160 percent increase
above the same period in 2010,
according to WANTED Technologies.
Firm researchers, who collect
detailed hiring-demand data using
WANTED Analytics, say those skills
include being able to develop recruiting
strategies and source talent by using
the Internet and social networking
sites. Candidates looking for HR jobs
that include social media components
need to be abreast of new, innovative
sourcing techniques and recruitment
best practices and need to know how
to utilize web searches, apps, job
boards and social media sites to create
community and generate leads. Simply
knowing how to tweet job openings or
scour LinkedIn or Facebook pages to
find talent is not enough.
According to the researchers
analysis, companies are looking for
human resource candidates who can:
Direct web traffic to corporate career
sites through social media channels.
Proactively identify and attract
passive talent through inexpensive
sources such as social media.
Build and maintain a pipeline of
prospects through
networking and
social media
research while
maintaining a robust
LinkedIn profile.
Create Boolean
search strings, and
use advanced search
techniques.
Assist in placing
employment ads with
appropriate sources,
including websites
and social media.
Weve heard the
buzz about social
recruiting, says
Bruce Murray, chief executive officer
of WANTED Technologies. Facts are
showing that forward-looking companies
are now expecting their recruiters to
have mastered this core competency.
Social recruiting has moved beyond
buzz and is definitely mainstream.
78 HR Magazine HR Trendbook 2012
K eep an eye out for these trends identified
by the Society for Human Resource Manage-
ments Technology and HR Management
Special Expertise Panel:
User experience. Ease of use will
become more important to employees when
it comes to HR technology solutions.
Customization. O ne-size-fits-all
solutions will decrease in popularity and
effectiveness.
Integration. Employees will expect
a more integrated digital experience
when it comes to their interactions with
HR departments. Examples of integration
include single sign-on features and
one-stop shopping for benefits.
Mobile access. Employees will expect
HR departments to provide mobile access to
core HR functions.
Going social. Social media tools will
become an integral and core component
of virtually all HR functions, including
employee relations, benefits management,
and training and development. Employees
will continue to find uses for social
networking for work and other purposes.
Leverage. HR profes-
sionals will continue to
move away from viewing
their role in social media
as a policing function
and more toward
helping business leaders
leverage social media
for maximum employee
engagement.
Autonomy. HR managers will gain
more autonomy and flexibility in making
technology decisions that impact their work
and their departments.
Virtual conferencing. HR professionals
will increase reliance on videoconferencing
as well as help business leaders adopt this
technology in appropriate ways.
Into the cloud. Software-as-a-service
as well as cloud-based
software solutions will
become the preferred
direction for HR
technology.
Getting linked. HR
information systems
solutions will offer
integration with social
media tools like LinkedIn.
For more information about
HR technology, see the online
version of this section of the
2012 Trendbook at www.shrm
.org/hrmagazine/12Trendbook.
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_____________
2011 Sage Software, Inc. and its a liated entities. All rights reserved.
Sage PkMS equips you with the tooIs and resources
it takes to improve productivity at every IeveI of
the organization.
When your people grow, your business prospers. Thats
why employers everywhere rely on Sage HRMS to boost
their return on employee investment. As a complete, fully
integrated HR solution, Sage HRMS streamlines day-to-
day processes by automating payroll, benets, employee
self-service, attendance, recruiting, training, workforce
analytics, and more. Make your work life easier. Visit
SagePkMS.com and make your business Sage.
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__________
80 HR Magazine HR Trendbook 2012
HR TECHNOLOGY
Cloud computing is all the rage. But should
sensitive HR data reside on the Internet?
Cloud computing refers to storing,
developing or processing data on vendors
servers running on the Internet, or in
the cloud, rather than on company
computers. The subset of cloud
computing most familiar to HR leaders is
software-as-a-service.
Most experts say the advantages are
many. But are they worth the risks?
Pros and Cons
Cloud hosting takes up less space, saving companies thousands
of dollars by allowing them access to expensive technologies
but requiring them to pay only for the services they use. And by
renting rather than buying software to house payroll, benefits
or recruiting data on vendors servers, managers can relieve
themselves of information technology maintenance burdens.
Its convenient, too. Cloud computing makes an IT investment
more efficient, flexible and faster, and allows access to data anytime,
anywhere, anyplace and with any electronic device, says Jose
Granado, a security expert with Ernst & Young.
But ubiquitous access to that data makes it more prone to theft.
The more connected we become, the more exposed we are,
Granado says.
Many cloud providers would have their customers believe that
using cloud storage is completely safe.
Theres no way to know unless you assess the cloud youre
going to put your data in, says Damon Petraglia, director of forensic
and information security services for Chartstone LLC.
Experts say that people looking to use cloud computing
especially HR departmentsneed to do their homework before
putting their faith in the cloud. According to International Data Corp.,
the cloud computing market could hit $72.9 billion by 2015.
Although cloud computing services are gaining acceptance,
organizations still must address the potential risks before moving
business applications to the cloud. A recent Ernst & Young survey
shows that nearly half of respondents are engaging in, evaluating or
planning to use cloud-based solutions. However, the top risk most
concerning businesses about using the cloud is compromised data.
Not knowing the exact location of the data is a fear as well.
When you put data into a cloud, you may not know where it
is, Petraglia says, as some Amazon customers discovered on Aug. 7
when a power outage interrupted Amazons only European data
center in Dublin for two days, leaving the company struggling to
restore customers data.
Data in the cloud, Petraglia pointed out, is only as safe as the
company hosting it. So, when it goes into the cloud and you let
someone else be responsible for it, youre taking a risk, he says. If
the information is compromised or hacked, the company will be on
the legal hook, not the service provider.
Due Diligence
Brian Richards, vice president of Client Technologies
for SIRVA Inc., says that with data security
Theres no silver bullet. If youre evaluating
a vendor and are concerned with data
security, look internally and see if they can
do it better than your IT department. Do due
diligence. He adds that, in many ways, a
cloud computing provider has to demonstrate
that it has good data securitymore than your
IT department, because if they have a data breach,
theyre out of business.
Dev Chanchani, president of INetU, a cloud computing
provider, says there are three broad categories to consider when
selecting a cloud computing provider: physical, technical and
administrative.
Adds Grady Summers, principal, information security, at Ernst &
Young: Youll want to access logs, tour the data center, go through
data center questionnaires and see who has the administrators
password. Make sure that the service provider can meet regulatory
requirements as well.
Dont Miss Reading
Smart Policies for Workplace Technologies: Email, Blogs,
Cell Phones & More, 2nd edition, by Lisa Guerin (SHRM/
Nolo, 2011). This book provides the tools HR professionals
need to assess their current policies effectiveness, along
with information on how to draft or revise, then distribute,
communicate and enforce, new custom policies.
Groundswell, by Charlene Li and Josh Bernoff (Harvard
Business Review Press, 2011). If your organization is dashing
headlong toward new social media, tossing up Facebook
pages, creating corporate wikis and throwing customer
surveys online, hold on a moment. Did the technology seduce
you first, or did you stop and think about the relationships
you want to forge with the technology?
The e-HR Advantage, by Deborah Waddill and Michael
Marquardt (Nicholas Brealey, 2011). The 21st century
workplace thrives on Internet-enabled connectivity and
technology, and new applications allow HR professionals to
make the work of developing and managing the workforce
faster, easier and more effective. The book explores the
positive impact of technology on the workplacehow we
work, learn and manage ourselves and others.
The first two are available at http://shrmstore.shrm.org.
Due Dil
Brian R
for

cl
that
IT de
theyre
Cloud Computing and Security
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_________
www.shrm.org/jobs
10-0717
My investigations reveal so many doggone job boards with
HR positions. But there is only one SHRMs HR Jobs. The
evidence shows SHRMs HR Jobs has the best qualied
candidates searching for the most attractive jobs.
Plus, with the searchable resume database, job hunters get
noticed and employers can easily nd them. Why would
anyone search or post anywhere else? This is an open
and closed case.
HR Jobs is the #1 place where
HR Professionals Find HR Professionals.
I wish all detective work was this easy!
Shrmlock Holmes at your service.
Top detective in the job search game...
Where HR Professionals Find HR Professionals
SHRMs HR Jobs
THE CASE OF: The Eager Seeker
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STAFFING MANAGEMENT
Keep an eye on these trends identified
by the Society for Human Resource
Managements Staffing Management
Special Expertise Panel:
Retention attention. Despite
increases in companies productivity and
profits, there have not been increases
in personnel, building pressure on
retention.
War for talent. Recruiting activity
has increased among companies trying
to fill current openings.
Employee value proposition.
Younger workers are looking for more
nonmonetary returns such as higher
engagement, social impact and work/
life fit.
New fishing spots. Increased use
of social media for applicant pools has
shifted recruiting strategies away from
job boards.
Limiting commitments. Full-time
employees are being replaced by
contingent workers, including interns, as
companies look to limit labor costs.
Polishing the brand. Companies are
putting an increased focus on candidate
care and user experience for applicants.
Sifting among plenty. Use of
assessment tools has increased as
companies look to hire the best talent
from a larger pool of applicants.
Trends
82 HR Magazine HR Trendbook 2012
Retiring Baby Boomers
Cost Large Manufacturers
More than half of the largest U.S. manufacturersthose with $1 billion
or more in revenuewill be the hardest hit by skills shortages due
to the retirement of current workers, costing each $100 million or
more during the next five years, according to a tracking survey
of 100 senior manufacturing industry executives completed in
August by The Nielsen Co. for Advanced Technology Services Inc.
Forty-five percent of the companies are encouraging their older
workers to stay on the job. Half of the respondents had 11 or more
open positions for skilled workers at the time of the survey, and 53
percent said they were likely to outsource the positions.
Maintenance and information technology positions were
cited as most likely to be outsourced, with 48 percent of
the respondents indicating that they would consider
doing so. Another 27 percent reported that they
might outsource HR as well.
The use of social media as a recruiting
tool is moving far beyond creating
company Facebook pages and tweeting
job openings.
Recruiters at an increasing number
of companies are using social recruiting
and candidate videos, enabling
more stakeholders to comment on
a particular candidates responses,
says Mollie Lombardi, a human capital
management analyst with Boston-based
Aberdeen Research.
Others are integrating social
recruiting tools with applicant tracking
systems to help build connections with
passive job candidates and those who
might have already applied for one
position but could be better suited for
another.
Once a document management
system, todays applicant tracking
system has morphed into hubs for
services such as video interviewing,
background checking, assessment
testing and onboardingand a link to
social media sites.
Almost half of the 450 companies
surveyed by Bersin & Associates
earlier this year were considering
replacing their applicant tracking
system. Behind the push was a desire
to shift from reactive to proactive
hiring strategies and a desire to
better manage the employment life
cycle, says Sarah White, principal
analyst in talent acquisition for Bersin
& Associates, an HR research and
consulting firm.
As the economy improves, organi-
zations that moved to decentralized
recruiting models during the
recessionby shifting hiring responsi-
bilities to regional or local operations
are turning back to centralized models,
says Elaine Orler, president of the
Talent Function Group.
56%
Percentage of organizations
currently using social
media to recruit potential
job candidates, up from
34 percent in 2008
Source: Social Networking Websites for Identifying and Staffing
Potential Job Candidates, SHRM survey, June 2011, based on
541 responses.
Social Medias Recruiting Powers Get a Boost
For the latest news and in-
formation on staffing manage-
ment, see the online version of
this section of the 2012 Trend-
book at www.shrm.org
/hrmagazine/12Trendbook.
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We believe that when the right person is matched with the right job, great things happen. Businesses
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Stafng Services Applicant Tracking Services Managed Service Programs Reemployment Services
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STAFFING MANAGEMENT
Dont Miss Reading
2012 Guide to Bold New Ideas for Making
Work Work, by SHRM/Families and Work
Institute (SHRM/FWI, 2011). This book profiles
promising and innovative practices from 262
employers that are creating effective and
flexible workplaces to make work work better
for both the bottom line and employees. All
employers featured received Alfred P. Sloan
Awards for Business Excellence in Workplace
Flexibility in 2011.
The Essential Guide to Federal Employment
Laws, 3rd edition, by Lisa Guerin and Amy
DelPo (SHRM/Nolo, 2011). This guide covers
20 of the most important federal employment
laws, providing plain-language explanations
of what each law allows and prohibits; which
businesses must comply; recordkeeping,
posting and reporting requirements; penalties
for violating the law; and more.
From Hello to Goodbye: Proactive Tips for
Maintaining Positive Employee Relations,
by Christine V. Walters (SHRM, 2011). You
may start at the end of the book, which is the
beginning of the employment relationship,
or you may start at the beginning of the
book, which is the end of the employment
relationship. Either way, when you finish this
book, you will have new insights, practical tips
and ideas for ensuring that the door does not
hit you on the employees way out.
All are available at http://shrmstore.shrm.org.
The Top 10 Hardest U.S. Jobs to Fill
1. Skilled trades.
2. Sales representatives.
3. Engineers.
4. Drivers.
5. Accounting and finance staff.
6. Information technology staff.
7. Management and executives.
8. Teachers.
9. Secretaries and administrative assistants.
10. Machinists and machine operators.
Source: ManpowerGroup 2011 Talent Shortage Survey, based on
responses from 1,300 employers.
84 HR Magazine HR Trendbook 2012
Criminal, Credit Checks Face More Scrutiny
Some employers that use criminal background checks in hiring decisions are
finding themselves the targets of lawsuits. A surge in disputes regarding credit
reports also may be in the offing.
At least five major civil rights lawsuits challenging the use of criminal
background checks were filed in 2010 against large employers, according to a
March report by the National Employment Law Project.
While the U.S. Equal Employment Opportunity Commission (EEOC) has stated
that its illegal to bar someone from employment just because the individual has
a conviction, Title VII of the Civil Rights Act of 1964 doesnt wholly bar the use of
criminal records in employment decisions, the report noted.
The EEOC has provided a framework for assessing criminal records when
making an employment decision. An employers consideration may pass muster
under Title VII if an individual assessment takes into account:
The nature and gravity of the offense or offenses.
The time that has passed since the conviction or completion of the
sentence.
The nature of the job.
In addition, employers need to be alert to changes in state laws that might
restrict the use of criminal background checks in hiring.
Employers use of job applicants credit histories in making hiring decisions
has been attracting attention as well. For example, the EEOC last year sued
Kaplan Higher Education Corp., a nationwide provider of post-secondary
education, alleging that it discriminated against black job applicants by refusing
to hire people based on their credit histories.
In light of the struggling economy, consumer advocates have criticized
employers use of credit reports, saying the practice unfairly keeps the
unemployed out of the workforce. To date, at least six statesConnecticut,
Hawaii, Illinois, Maryland, Oregon and Washingtonhave passed laws limiting
the use of credit report data for employment decisions.
At the federal level, U.S. Rep. Steve Cohen, D-Tenn., earlier this year
reintroduced a bill that would restrict employers use of consumer credit reports.
Meanwhile, an amendment to the federal Fair Credit Reporting Act places
more disclosure requirements on employers that use credit scores. Most
employers dont use third-party scores; instead, they order background checks
and credit reports. But if they do obtain credit scores, they must disclose to
applicants the score and the name of the agency that provided the score.
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THE SOLUTION IS SHRM.
Ann M. Jackson, SPHR
New York, NY
Member since 2005
OUR POLICIES
MUST ALIGN
WITH NEW
LAWS.
I somehow need to balance internal policies with state and federal
statutes, while enforcing complex compliance regulations.
As a leader in my organization, Im the one people turn to for
go|oaoco, bot .|oo | oooo spoc|c so|ot|oos to t|o c|a||oogos
I encounter, I turn to SHRM. I regularly use webinars and
weekly email alerts to remain current with HR standards.
With SHRM, I know Ill have access to accurate and reliable
legal and regulatory resources. I consider my membership to be
absolutely indispensable. Find out how SHRM can help you at
SHRMSOLUTIONS.ORG/COMPLIANCE
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________________________________________
EDUCATION, TRAINING & DEVELOPMENT
Rise to the Challenge
Corporate leaders are preparing to increase productivity,
but are employees ready?
As executives coped with the Great Recession, employee training
and development initiatives were among the first cuts made,
according to SHRM Workplace Visions (Issue 2, 2011). Then came
layoffs. Despite reduced head count, remaining employeesamong
the highest-performing and experienced workersmaintained or
increased productivity.
As the economy slowly improves, business leaders are looking to
increase productivity even more. Training is coming back, especially
as managers realize that their most senior workers will soon be
retiring and that incoming employees may not be up to par.
Managers worry about finding skilled employees, particularly in
the science, technology, engineering and math fields. The rising
cost of higher education and attaining graduate degrees may deter
students, or at least prolong the time it takes them to complete their
degrees. It may be more beneficial to train employees than to wait
for better-educated students to finish school.
At the other end of the spectrum, workforce entrants with only
high school diplomas arent ready to take on jobs, according to
Society for Human Resource Management surveys. Employers will
face the challenge of retaining a few skilled and educated employees
while investing in basic skills training for new workers.
86 HR Magazine HR Trendbook 2012
Trends
With a sluggish economic recovery,
companies are being more selective about
which employees get training and turning
to new and low-cost training methods. Look
for the following training and development
trends in 2012:
Self-directed training. Companies are
telling employees, Youre on your own
when it comes to training that advances their
careers. Employees must take the lead and
align the skills they want to develop with the
opportunities offered by the company.
Technology and social media. No need
to rush into delivering mobile learning
mobile is still evolving. When the market
settles down, youll be able to act, according
to Mobile Learning: Learning in the Palm of
Your Hand, from the American Society for
Training & Development.
Leadership development. In
high-performing companies, any manager
who wants to can participate in leadership
programsbut leaders are having problems
grasping some competencies, according
to the American Management Association
and The Institute for Corporate Produc-
tivity. Emerging
leaders struggle with
managing change,
exhibiting agility and
developing global
strategies, researchers
found.
Flexible career
management. As companies have
reduced head count and employees work
longer, there are fewer opportunities for
promotion. To engage employees, consider
internal developmentfind roles, career
paths and rotations that help employees
learn on the job. Walgreens employees
created an internal training program to
improve the skills of all workers.
Interns, apprentices, sponsorships
and mentors. Consider programs that
match senior employees with entrants to
boost skills for both. Coaching by managers
will accelerate the
development of
employees and advance
managers careers, says
Michael Noble, managing
partner at Camden
Consulting Group.
Talent profiles.
Compile datafrom recruitment, payroll,
learning management, performance
management and HR information systemsto
get a picture of each employees skills and
work history. The compilation can show
where your workforce needs to brush up on
skills and if they can meet challenges. Create
a central repository.
For more training trends, see the
online version of this section of the
2012 Trendbook at www.shrm
.org/hrmagazine/12Trendbook.
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Discover The Nations Top HR Program
MOST PUBLISHED & CITED HR FACULTY...
The Rutgers Master of Human Resource
Management program is a great choice for a
wide range of individuals. Whether you are
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Students can attend classes on a part-time or
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The Rutgers MHRM program focuses on the
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Dave Ferio, Graduate Director, and members of
RU SHRM, the Rutgers Student Chapter of SHRM
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_______________________________
__________________________________
EDUCATION, TRAINING & DEVELOPMENT EDUCATION, TRAINING & DEVELOPMENT
The changing nature of economic competition and globalization
requires knowledge workers to expand their knowledge, skills
and abilities continuously. Self-motivated learners can accelerate
their professional growth through self-directed, lifelong learning.
To accelerate the pace of employees learning, corporations
can use an individual development plan. The plan details an
employees intentions and learning outcomes as well as support
necessary to meet his or her
tangible growth goals.
The plans should
incorporate components
of adult learning, organi-
zational development
and corporate culture.
They should include an
individuals formal course
work and educational
programs of study as well
as the formal and informal
development of professional
skills the employee picks up
on the job.
Adults learn well
through case studies and
role-playing. Deliberate
role modeling, coaching
and mentoring support
plan development. As
the employee learns and
grows, he or she becomes
more self-aware of weaknesses and strengths. Such growth
incorporates fear, worry, anxiety and stretch as a normal part of
any change cycle.
The proverb Give a man a fish and you feed him for a day;
teach a man to fish and you feed him for a lifetime fits neatly
into todays emphasis on individual learning, self-development
and career resiliency.
By John T. Mooney, principal of the training and consulting firm Consultive Source, based in
the Dallas/Fort Worth area.
How We Learn
Adults learn differently from
children; what worked in
elementary school wont work
on the job. John T. Mooney,
SPHR, principal of the
training and coaching firm
Consultive Source in Dallas/
Fort Worth, Texas, says when
teaching and training adults,
know that they:
Are self-directed.
Need to understand
context and why they are
learning something.
Learn through
problem-solving.
Learn best when the topic
is of immediate value.
Use Individual Development Plans to Guide Employee Learning
88 HR Magazine HR Trendbook 2012
Dont Miss Reading
Make Talent Your Business, by Wendy Axelrod
and Jeannie Coyle (Berrett-Koehler Publishers,
2011). How do exceptional managers keep
employees challenged and get them to take
risks while also getting good performance out of
them on their daily tasks? The authors discuss
five practices they tend to use.
Fully Charged, by Heike Bruch and Bernd Vogel
(Harvard Business Review Press, 2011). The
authors urge organizations to ramp up their
energy. Energy means the extent to which
the organization uses its potential to pursue
its goals. How employees think, act and feel
all are key to organizational energy. How can
employers harness positive energy to improve
performance while turning negative energy
around?
Changemaking: Tactics and Resources for
Managing Organizational Change, by Richard
Bevan (CreateSpace, 2011). Sometime during
their careers, business leadersincluding HR
officerscan expect to plan or manage a change
process of some kind. Yet many change efforts
falter, and some fail entirely. This book uses short
case histories to illustrate the key attributes of
successful change initiatives. Chapters focus
on what managers and others must do to guide
change in a proactive, constructive way.
All are available at http://shrmstore.shrm.org.
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_________________
IPHONE and ANDROID APPLICATIONS:
Students can access their course schedule
and discussion forums on the go.
ELECTRONIC TEXTBOOKS:
Designed specically for Ashfords
ve week undergraduate courses,
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about Ashfords partnership program, which
provides valuable benefits to you and your
employees, please contact us at
partners@ashford.edu or call 800.507.1655.
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____________________
________________________
EDUCATION, TRAINING & DEVELOPMENT
90 HR Magazine HR Trendbook 2012
Looking for a way to stand out from the crowd?
Better teamwork. Higher employee satisfaction.
Increased product quality. Improved time management.
Exactly what you need to stand apart from your competitors and exactly what
research has demonstrated professional coaching can help your business
achieve! Make the plunge. Start your journey to better business and
personal results. Search for a credentialed, professional coach at
Coachfederation.org/value.
Employees Are
On Their Own
As leaders and employees continually
are asked to do more with less,
employees are taking responsibility for
their own training instead of depending
on a manager to develop them.
Jason Corsello, vice president of
products and technology for Knowledge
Infusion, a Minneapolis-based human
capital consulting firm, says employees
are interested in taking control of their
own careers rather than expecting
employers to care for them for life. HR
professionals are encouraging this
change.
Career development is something
you own. You have the most vested
interest in making sure you are
developing and growing, says Robin
Hamel Pfahler, SPHR, human resources
leader for Hoovers Inc. Your boss
wont necessarily know what it is, but
you do.
HR professionals are creating talent
profiles that pull information from
multiple sources to paint a picture of
an employees skills, education and
achievements. Employees can update
these profiles to showcase their
expertise, and HR recruiters can use
them to scan for candidates for new
assignments.
Business leaders who encourage
employees to take control of their
own learning and to learn to learn
can create a continuous learning
culture, improve work processes, build
efficiencies, increase productivity and
advance innovation, according to SHRM
Workplace Visions (Issue 2, 2011).
EDUCATION, TRAINING & DEVELOPMENT
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Enroll now.
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Ccpyrigbt 2011 University cf HaryIand University CcIIege
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____
______________________
800-603-3736 - www.uiu.edu/shrm
0n Camus 0nline ndeendent Study u.S. & nternational Centers
YOU HAVE THE POWER
800-603-3736 - www.uiu.edu/sh
Reqionally accredited
honrolt rivate university
8aohaIor's and masIar's
dagraas WIIh hM amphasIs
92 HR Magazine HR Trendbook 2012
The percentage of companies that report
having leadership development programs
has remained stable since 2010,
according to an American Management
Association (AMA) survey report.
However, the study shows that key global
leadership competenciesagility and the
ability to manage change and implement
global strategiesare proving to be
difficult for executives to master.
Approximately one-third of the 1,750
organizations surveyed reported that
they conduct leadership development,
notes Developing Successful Corporate
Leaders: The Second Annual Study of
Challenges and Opportunities 2011.
The study was sponsored by The
Institute for Corporate Productivity,
Training magazine and AMA Enterprise.
Respondents represented companies
with headquarters in 56 countries.
The most widely taught competencies
were:
Critical thinking, problem-solving.
Change management.
Leading cross-cultural teams.
Multicultural skills and global
workplace management skills topped
the list of competencies that will
be required during the next decade.
Working collaboratively and remotely
as well as using data analyses and the
latest virtual technologies were also
cited as important skills.
Managing change, exhibiting agility
and developing global strategies were
identified in the report as areas that
need improvement.
Senior executives are becoming
more directly involved in leadership
development programs, notably
regarding business needs and
communicating how the program
relates to business goals. Such
involvement significantly correlated to
overall business performance.
Hard Lessons
85%
Percentage of HR profes-
sionals who said their
business leaders were
either currently increasing
expectations of employee
productivity or planning
to do so
75%
Percentage of HR profes-
sionals who said their
organizations would be
implementing training
programs
77%
Percentage of HR profes-
sionals who said their
organizations would
expand the use of
e-learning
Source: SHRM Workplace Forecast, 2011, based on
responses from 1,247 HR professionals.
EDUCATION, TRAINING & DEVELOPMENT
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_______
______________________
HR Trendbook 2012 HR Magazine 93
Master of Science in
Employment Law (M.S.)
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EDUCATION, TRAINING & DEVELOPMENT
Learning Executives Pessimistic
On Funding Sources
Learning executives said funds for
learning and development will be hard to
come by in 2012 and more companies
will turn to e-learning, according to
research by the American Society
for Training & Development. For the
Learning Executives Confidence Index,
researchers surveyed 332 learning executives
in the third quarter, finding that:
57 percent said funding for learning and
development will not improve until the first
quarter of 2013 or later.
73.2 percent said the current economic
situation will increase the use of e-learning.
About 70 percent said the availability of
resources required to meet learning needs in
the next six months will stay the same or get
moderately better.
tives
nd
st
mic
ng.
of
ds in
r get
Responding to demographic and social trends such as the impending
retirement of Baby Boomers and a global shortage of skilled workers,
are U.S. companies investing more in training and development to
boost skills levels of employees?
Yes
53%
Plan to
22%
No
25%
Source: SHRM Workplace Forecast, SHRM, 2011.
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Differences abound in how the
United Kingdom, United States and
India practice learning and talent
development, according to research
from the Chartered Institute of Personnel
and Development in the U.K.
In collaboration with the Society for
Human Resource Management and
SHRM India, the Institutes researchers
examined the effectiveness of learning
programs, coaching, leadership
development, talent management,
e-learning, evaluation and how the rocky
economy has affected these practices.
Similarities and differences illustrate
how people in each country like to learn,
and how businesses in each country like
to instruct their employees.
Respondents in the three countries
agreed that in-house programs were
among the most effective practices,
with U.K. respondents favoring it
above all other practices. They favored
coaching by line managers
almost twice as much as
respondents in the United
States and India. U.S.
respondents preferred job
rotation, shadowing and
on-the-job training, while
respondents from India
chose on-the-job training
and action sets most
frequently.
Leadership
Development
The most effective practices
for developing leaders
included, for all three
countries:
Coaching by external
practitioners.
External conferences,
workshops and events.
Internal knowledge-
sharing events.
U.S. respondents also
chose formal education
courses to help develop
leaders. Respondents in
all three countries agreed
that trends coming up in
leadership development
are helping leaders fulfill
organizations strategic goals, act in a
strategic and future-focused way and
develop high-potential employees.
E-Learning
U.S. and U.K. respondents reported
using e-learning more often than those
in India, but companies in India that
offer e-learning use it for more purposes
than their U.S. and U.K. counterparts.
U.K. and U.S. companies reported using
e-learning for induction and onboarding,
compliance, technology training and
awareness-raising on workplace and
social issues such as diversity and
drug and alcohol abuse. Respondents
from Indian companies said they
used e-learning for all those purposes
and more, including professional
development, basic skills development
such as time management, advanced
skills such as project management and
finance, language learning, product
development training, business
development, and coaching and
mentoring.
Respondents in each country are
using new media and Web 2.0 tools to
deliver e-learning, with India adopting
more of these tools. Indian respondents
were far more likely to report using
online virtual learning-management
systems, learning libraries and wikis,
and e-books to deliver e-learning. U.S.
respondents favored webinars and
virtual classrooms and blended learning
programs, while U.K. respondents said
they used blended learning programs
and online virtual learning management
systems.
What will be the focus of leadership development
activities within your organization in the next
12 months?
Producing a common standard of behavior for those in
leadership roles.
U.K. 29%
U.S. 26%
India 29%
Developing high-potential individuals valued by the
organization.
U.K. 36%
U.S. 41%
India 45%
Improving the skills of leaders to think in a more strategic
and future-focused way.
U.K. 38%
U.S. 46%
India 45%
Enabling the achievement of the organizations strategic
goals.
U.K. 43%
U.S. 33%
India 42%
Source: Learning and Talent Development, Chartered Institute of
Personnel and Development/SHRM, 2011, based on responses from
952 practitioners.
94 HR Magazine HR Trendbook 2012
Learning Techniques Differ Around the Globe
EDUCATION, TRAINING & DEVELOPMENT
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____________
Pass rate noted above was reported by the Human Resource Certication Institute (HRCI), which administers the certication exam.
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Led by seasoned faculty with global HR experience, our Master of Science in
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national average pass rate on SHRM certication exams. Advance your career in HR.
To learn more, call 1.855.HRM.8700 or visit hr.degree.strayer.edu.
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RELOCATION RELOCATION
By the Numbers
61%Portion of relocated employees who own
homes
53%Portion of relocated employees who are
new hires
45%Portion of relocated employees who
have children
37%Portion of relocated salaried employees
ages 36 to 40, the largest age group represented
32%Portion of organizations that give
employees one week or less to accept a
relocation offer, up from 7 percent in the 2010
survey
19%Portion of relocated salaried employees
who are female
14% Portion of relocation policies that
contain reimbursements for moving boats
400 relocation professionals.
Many recent changes in corporate relocation
policies and practices reflect the results of the
post-recession economy, according to survey
research and industry experts.
More benefits for high-level hires.
Despite high unemployment, top talent
remains difficult to find amid a growing
global skills gap. Given their bargaining
power and the challenging housing market,
high-level new hires are becoming more
expensive to relocate. Some recruiters offer
new executive hires the same relocation
benefits packages that veteran executives
receive.
Creative solutions to cost pressure.
Cost-containment needs are driving mobility
managers to offer innovative alternatives to
traditional expatriate assignments, such as
extended business travel that typically lasts
one to three months. So-called flexpat
programs offer perks beyond core benefits
that may be added based on length or
purpose of an assignment.
Relocation reluctance. Given the still-
taxing housing market as well as longer-term
growth in the number of two-income
families, more workers are declining
relocation offers.
Audit activity. In response to economic
uncertainty, taxing authorities will likely
intensify their audits of companies with
expatriate populations, an activity that can
provide additional sources of government
revenue. A September survey of attendees
at the Global Mobility Summit in Chicago
found that 23 percent of respondents
companies had been subjected to recent visa
or immigration audits.
More-strategic job duties. Mobility
professionals must address complex and
diverse riskssuch as international tax,
immigration and human capital issues
that have far-flung strategic implications
on organizations current and future
performance.
Flexibility Through Policy Exceptions
Nearly four in 10 companies made no changes to their relocation policies in
2011, according to a survey by Weichert Relocation Resources Inc. This marks
a welcome surge in stability, as only one in 10 companies kept their policies
unchanged in 2010. However, volatile economic conditions, ongoing cost
pressures and a growing talent crunch in many industries and job types have
inspired many mobility specialists to make more exceptions to their relocation
policies to overcome growing employee reluctance to accept assignments. The
following exceptions were approved most frequently in 2011, and their use can
be expected to increase in 2012:
46%
10%
7%
3%
12%
9%
3%
Extend temporary living arrangements
Increase loss-on-sale protection
Extend home purchase time
Allow more-frequent return trips
Extend assignment
Extend home marketing time
Expand eligibility for loss-on-sale protection
Increase the miscellaneous allowance 2%
M
Trends
96 HR Magazine HR Trendbook 2012
Source: Weichert Relocation Resources Inc., based on responses from 200 companies.
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Source: Atlas Van Lines Corporate Relocation Survey, 2011, based on responses from
PR201-031411-Dec11 HR
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w: paragonrelocation.com e: info@paragonrelocation.com
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___________________
WORKFORCE TRENDS
98 HR Magazine HR Trendbook 2012
U.S. Unemployment Rate, 2011
The official unemployment rate does not include discouraged workers and involuntary part-time workers.
Total unemployment includes those officially unemployed plus discouraged workers who have given up look-
ing for work because of job market conditions plus those involuntarily employed part-time.
Official rate Total rate
U.S. Job Openings
M
i
l
l
i
o
n
s
4.5
3.75
2.5
4.25
3.0
3.5
2.25
4.0
2.75
3.25
Dec. 2007
4.4 million
(when the
recession
began)
July 2008
3.4 million
Dec. 2008
2.7 million
July 2009
2.4 million
Dec. 2009
2.5 million
July 2010
3.0 million
Dec. 2010
3.1 million
A Snapshot of the U.S. Workforce, October
work because they believe no jobs are available.
Hourly Compensation Costs
State and Local Government Employment Costs
On average, state and local governments paid $40.40 hourly in wages and benefits
as of June.
Legally required
benefits
8.3%
Wages and salaries
70.4%
Supplemental
pay
2.8%
Retirement
and savings
3.7%
Paid leave
6.7%
Insurance
8.1%
Wages and salaries
65.4%
Legally
required
benefits
6.1%
Insurance
12%
Paid leave
7.5%
Retirement
and savings
8.2%
Supplemental
pay
0.8%
Wages and
65 4%
leave
5%
Private-Sector Employment Costs
On average, private-sector employers paid $28.13 hourly in wages and benefits
as of June.
U.S. Unemployment Rate, 2007-11
10%
9.5
6.5
8.0
5.0
9.0
6.0
7.5
4.5
8.5
5.5
7.0
2011 2010 2009 2008
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weeks prior to the survey. They include 967,000 discouraged workers, who are not looking for
Labor force: 154.2 million
Employed: 140.3 million
Unemployed: 13.9 million
Long-term unemployed (those jobless 27 weeks or more): 5.9 million
Marginally attached*: 2.6 million
Part-time for economic reasons: 8.9 million
Part-time for noneconomic reasons: 18.4 million
* These people are not counted as unemployed because they havent searched for work in the four
18.6%
Percentage of people with disabilities who were
employed in 2010. The employment-population ratio
for people without disabilities was 63.5 percent.
Source: U.S. Bureau of Labor Statistics.
Source: U.S. Bureau of Labor Statistics.
2007
Source: U.S. Bureau of Labor Statistics, October.
Source: U.S. Bureau of Labor Statistics.
Sept. 2011
3.4 million
Source: U.S. Bureau of Labor Statistics.
16.5%
15.5
14.5
13.5
12.5
11.5
10.5
9.5
8.5
Oct. Sept. Jan. Feb. June April Aug. March July May
Source: U.S. Bureau of Labor Statistics.
20.9%
The 2010 unemployment rate for young veterans, ages 18
to 24, who served in the military since September 2001.
Source: U.S. Bureau of Labor Statistics.
Domestic Partner Retirement Benefits
Percentage of unmarried domestic partners with access to partners retire-
ment benefits.
Private industry
Same sex 7%
Opposite sex 7%
State and local government
Same sex 50%
Opposite sex 49%
Source: National Compensation Survey, U.S. Bureau of Labor Statistics, March.
Domestic Partner Health Benefits
Percentage of unmarried domestic partners with access to partners health
care benefits.
Private industry
Same sex 29%
Opposite sex 25%
State and local government
Same sex 33%
Opposite sex 28%
Source: National Compensation Survey, U.S. Bureau of Labor Statistics, March.
U.S. Employee Benefits
Percentage of full- and part-time workers with access to select paid leave
benefits.
Paid sick leave
Full Time 75%
Part Time 27%
Paid vacation
Full time 91%
Part time 37%
Paid personal leave
Full time 45%
Part time 19%
Source: National Compensation Survey, U.S. Bureau of Labor Statistics, March.
HR Trendbook 2012 HR Magazine 99
11.9%
Percentage of U.S. workers who
were union members in 2010,
down from 12.3 percent in 2009.
In 1983, it was 20.1 percent.
Source: U.S. Bureau of Labor Statistics.
Wage Disparity Persists Across Gender and Cultural Lines
In 2010, the median weekly earnings of Asian and white men and women working full time in manage-
ment, professional and related occupationsthe highest-paying major occupation groupwere well
above the earnings of Hispanic and black men and women in the same occupation group.
$1,408
$1,143
Asian men
Asian women
White men
White women
$1,273
$932
Hispanic men
Hispanic women
$1,002
$789
Black men
Black women
$957
$812
Source: U.S. Bureau of Labor Statistics.
Access to Health Insurance
Percentage of workers with access to health insurance benefits.
Private industry 69%
State and local government 87%
Source: National Compensation Survey, U.S. Bureau of Labor Statistics, March.
Womens Earnings
Womens earnings as a percentage of mens earnings, full-time wage and salary workers, 2010.
81.2% Total, 16 and older
91.1% Social workers
78.9% Metalworkers and plasticworkers
72.1% Chief executives
86.5% Registered nurses
77.1% Lawyers
64.7% Retail salespersons
88.3% Editors
77.3% Postsecondary teachers
66.1% Financial managers
80.2% HR managers
74.9% Accountants
77.0% Medical and health managers
Personal financial advisors 58.4%
Source: U.S. Bureau of Labor Statistics.
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________________________
2011 All Rights Reserved. Made Available by University Alliance

The Nations Leading Universities Online. SC: 197916ZV1 | MCID 15803


________________________ ________________________
December 2011 HR Magazine 101
Training Agenda
to increase the employees engagement,
help employees with their career develop-
ment and, ultimately, retain them for
the organization, says Beth N. Carvin,
chief executive officer of Nobscot Corp.,
an HR technology provider in Colorado
Springs, Colo.
Digging Deeper
Do not confuse stay interviews with exit
interviews, Carvin warns. Some consul-
tants have mistakenly advised, Dont do
exit interviews; do stay interviews. In
reality, she says, the two are used for dif-
ferent purposes.
Unlike exit interviews, which are
typically conducted by someone in HR,
stay interviews should be conducted by
managers. Stay interviews are about the
individual, to help manage them better.
Exit interviews are about the organiza-
tion, to help improve the company for
everyone, Carvin explains.
Why not just field an employee
engagement survey? The results of
engagement surveys are anonymous,
whereas stay interviews are one-on-one,
segmented by population, more detailed
and more like a conversation than a
multiple-choice quiz. Data from a stay
interview with a top performer is more
valuable than general data from a generic
group of employees.
Because the data are anonymous,
employee surveys provide average data
for average employees. You dont know
what top performers think or how impor-
tant those items are to them, says Dick
Finnegan, author of Rethinking Retention
in Good Times and Bad: The Power of Stay
Interviews for Engagement and Retention
(SHRM, 2011) and CEO of C-Suite Ana-
By Kathryn Tyler
T
his year, Burcham Hills Retirement Community in East Lansing, Mich., began
conducting stay interviews for nurses after 30 days of employment and annu-
ally for veteran employees. The results? Turnover decreased among veteran
nurses by 72 percent. Every new hire has stayed for at least six months.
At first, it was difficult to get managers to dedicate the time, says Joan Holda,
SPHR, director of human resources. However, when they realized the impact stay
interviews had on retention, they felt they would rather spend time getting acquainted
and developing rapport with existing employees than recruiting, interviewing and
training new employees.
While many HR professionals are familiar with exit interviewsinterviews where
an employee who has terminated employment discusses what led to the departure
stay interviews are not as common. Stay interviews target existing employees and
focus on finding out what makes them stay with the company.
Most companies do not have formal stay interview processes in place. Stay
interviews are designed to help managers have a better handle on what uniquely
motivates each of their employees. The idea is for managers to use that information
To retain star employees, train managers to conduct stay interviews.
Who Will Stay and Who Will Go?
The author, a former HR generalist and trainer, is
a freelance writer in Wixom, Mich. I
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102 HR Magazine December 2011
Training Agenda
lytics, a consultancy in Longwood, Fla.
First, stay interviews give you informa-
tion you can use today. Theres no delay
in getting the data. Second, they
help you address the needs
of individual employees,
instead of presuming
those needs based on
average data. Third,
they put managers in
the solutions seat.
Managers then share
the feedback with HR,
and HR professionals can
add the findings to other bits
of data gathered already, such as
employee satisfaction or engagement
surveys, to get a more complete picture
of employee engagement, says Eileen
Habelow, senior vice president of orga-
nizational development for Randstad,
an international recruiting and staffing
company.
Now Is the Time
Even in a weak economy, star em-
ployees are in demand and can find
employment opportunities elsewhere.
Moreover, 38 percent of employees are
actively seeking a new job, up 2 percent
from February, according to Globo-
forces latest WorkForce Mood Tracker sur-
vey report, released in September.
Stay interviews help a manager
uncover what makes the job sticky for
each individual. For some employees, it
might be purely about money and bene-
fits. For others, its about the culture and
camaraderie. Some employees are happy
with a nice office close to home; others
might desire challenging work or future
career opportunities, Carvin says.
HR professionals in some industries
may experience the high-performance
drain more than others. Dwayne Orrick,
chief of police for the city of Roswell,
Ga., and author of Recruitment, Retention
and Turnover of Police Personnel: Reliable,
Practical and Effective Solutions (Charles C.
Thomas Publishers Ltd., 2008), explains
the crisis in law enforcement: We are
seeing fewer people staying in one loca-
tion or one agency for their entire careers.
A lot of police skills are transferrable to
other employers. If you are recruiting and
selecting great people, but then losing
them to other agencies, thats a problem.
Jack Wilkie, chief marketing officer
and senior vice president of development
for NOVO 1, a customer contact center
in Fort Worth, Texas, agrees.
While most companies inter-
view exiting employees to
understand why they are
leaving, we think it is
more important to ask
current employees who
are still contributing to
our company why they
stay, he says. Using stay
interviews helped NOVO 1
reduce turnover by 20 percent.
The Logistics
Stay interviews dont need to be con-
ducted for all employees, Habelow says.
Im interested in what makes my top
performers stay to ensure I put my mon-
ey where Im having the biggest return
on investment. I need to know why my
middle-of-the-bell-curve workforce stays
because they keep my business running.
Im much less interested in what makes
the low performers stay.
Thats the practice at NOVO 1, where
employees rated A and B participate
in stay interviews. Others are conducted
on an ad hoc basis, Wilkie says.
Orrick says his organization identi-
fies key people who are great performers
to learn how to anchor them to the
agency.
Finnegan compares top performers
to best customers. If most of your sales
came from 30 percent of your customers,
you would take them to the country club
for lunch. Youd be thinking about how
you could treat them better. Why dont
we talk to our employees to see how we
can treat them better?
Letting employees know why they
have been chosen for stay interviews
can be a recognition tool, experts say.
Let them know they have been chosen
because their opinions are valuable,
Habelow says. To manage expectations,
Habelow advises managers to discuss
what employees can expect after the
interview.
How often managers should conduct
stay interviews depends on an employers
turnover cycle. For example, if new-hire
employees are leaving, on average, at
the six-month mark, managers should
conduct stay interviews at the 90-day
mark.
At NOVO 1, stay interviews are
conducted annually. Additional meet-
ings are conducted with employees who
show any sign of wanting to leave,
Wilkie says.
Habelow recommends interviewing
sample groups of employees each
quarter. Make sure your sampling is
representative of all departments, levels
and lines of business, she says.
Training Managers
To train managers on how to conduct stay
interviews, HR professionals should cover
active listening skills, guide managers to
ask probing questions and provide manag-
ers with opportunities for role-playing.
For example, Holda at Burcham Hills
facilitates an hourlong kickoff training
program and then meets individually
with each departments supervisors to
review the process and discuss results.
At NOVO 1, managers stay inter-
view training was initially conducted
by an outside consultant. A 90-minute,
interactive session covered how to:
Prepare for one-on-one meetings.
Conduct interviews using good listen-
ing skills.
Take good notes.
Probe for additional information.
Follow up with senior management
about results.
We learned to make the sessions
conversational and positive, rather than
complaint sessions. Training is updated
on an annual basis prior to conducting
annual stay interviews, Wilkie says.
Habelow says proper training teaches
managers how to make it sound like a
conversation as opposed to an interview.
If it feels like an interview, its not all
that disarming. Your goal is to build up
some rapport, she explains.
Ask the Right Questions
In an effective stay interview, managers
ask standard, structured questions in a ca-
sual manner with a conversational tone.
At NOVO 1, Wilkie says, an opening
might be I want to talk with you today
about the most important reasons you
stay with us, because I hope we will
work together for a long time. Its
important to ask direct questions early
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FOR MAC USERS
Let HighRoads new ACA portal distribute your
Summary Plan Descriptions and Summary of
Benets & Coverage quickly and cost effectively
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OMPLIANCE. C
December 2011 HR Magazine 103
on that protect the organization from
any implied contract if the employees
performance slips. Then managers might
focus on setting realistic expectations:
My greatest interest for todays meeting
is to learn what I can do to make this a
great place for you to work, especially
regarding things I can control.
Supervisors at Burcham Hills ask
questions such as:
When you travel to work each day,
what are you looking forward to?
Have you ever thought about leaving
our team?
How can I best support you?
How does working here compare to
what you thought it would be like?
What do you want to learn here?
What can you learn here that will
make you feel good when you go
home every day?
During the interview, managers
should probe for more-detailed informa-
tion, Finnegan says, and solicit ideas from
the employee about how the company
can retain him or her. The manager can
help the employee create a stay plan.
The Results
Managers and HR professionals need to
act on the findings.
For example, to increase retention,
Orricks police force has enhanced
its succession management program,
involved staff more in decision-making,
overhauled the performance appraisal
system to align with hiring competencies
and revamped the internal complaint
process to include a peer-review board.
The data gathered through stay inter-
views can be put into different formats,
but dashboards have become popular.
Burcham Hills is moving toward using
a color-coded spreadsheet to identify
employees who are likely to stay (green),
possibly going to leave (yellow) and
likely to leave (red), Holda says.
The information is reviewed quar-
terly to determine if employees were
accurately classified. If someone was
identified as green and they left within a
month of a stay interview, we would like
to follow up and determine what hap-
pened, Holda says.
Get Ahead of the Curve
While stay interviews cant ensure that
star employees never move on, they can
help determine the factors that are im-
portant to the best employees. Knowing
that helps HR professionals make spend-
ing decisions in line with top perform-
ers values.
Why wait for your top performers
to leave? Wilkie asks, adding: Take
control of issues relating to productivity
and attrition.
Online Resources
For more information about stay
interviews, see the online version
of this article at www.shrm.org/
hrmagazine/1211TrainingAgenda.
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Since 1967, Belmont Manor has counted on Blue Cross Blue Shield for its employee health insurance. When the time came to
add additional coverage, they chose the dental plan thats 100% Blue. These plans help Belmont Manor retain employees by
offering them the peace of mind that comes with Blue Cross coverage from head to toe. For more information, contact your
broker or call Blue Cross at 1-800-262-BLUE.
When we added a dental benet,
we didnt have to look far.
STEWART KARGER, PRESIDENT, BELMONT MANOR
BLUE CROSS BLUE SHIELD OF MASSACHUSETTS IS AN INDEPENDENT LICENSEE OF THE BLUE CROSS AND BLUE SHIELD ASSOCIATION.
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Blue Cross and Blue Shield of Minnesota is a nonprot independent licensee of the Blue Cross and Blue Shield Association.
Health care doesn t have to make your accounting department sick.
Introducing Blue Choice. You set the cost of your contributions
at guaranteed rates for three years. And your employees get to
choose the plans that are right for them. That means your business
and your workforce can stay healthy. Please contact your broker or
visit employers.bluecrossmn.com to learn more.
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A HEALTH CARE
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understand and appreciate the value of their coverage. To nd out how you can make this
dental plan part of your portfolio, visit unum.com/dental.
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administered by United Concordia Companies, Inc., and underwritten by United Concordia Life and Health Insurance Company, United Concordia Dental Corporation of Alabama, United
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Look closely at dental coverage
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And youll nd a broad network
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And a sharp focus on simplied
administration, enrollment and service
Its an attractive plan with
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December 2011 HR Magazine 105
Global HR Agenda
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At press time, unrest has dissipated
across some portions of the region. Many
employers have sent employees back. But
the question isnt just whether its safe
to return to the region, but whether its
feasible.
Business as Unusual
If a business wants to return to a country
following a revolution, its important to
remember that the country left behind will
never be the same, experts say.
Consider life in Libya. The changing
sociopolitical landscape poses greater
threats to companies beyond the require-
ment for physical safety of people and
assets, says Nathanael Jarrett, who
serves as a travel security manager for
International SOS, a provider of medical
assistance and security services, and
Control Risks, a risk consultancy.
The potential for an escalation in
criminal activity, violent protests, greater
and aggregated levels of corruption,
and opaque or confusing bureaucratic
processes, combined with having to deal
with decentralized or localized stake-
holders or other third-party influencers
on business operations, will add to the
complexity of conducting business in the
new Libya and impinge upon company
reputation, Jarrett predicts.
In an article for CNN this September,
Marwan Muasher, former foreign min-
ister and deputy prime minister of Jordan
and vice president for studies at the Carn-
egie Endowment for International Peace,
wrote: The protesters still have no
leadership and have yet to translate their
protests into any coherent political and
economic reform program. With initial
By Aliah D. Wright
T
he unrest in the Middle East began a year ago when 26-year-old Mohamed
Bouazizi set himself ablaze in Tunisia to protest his treatment by police. His
suicide in December 2010 ignited a revolution fueled by activists who used
social networking tools to complain about economic disparities, unemployment and
long-standing corruption. Protests were organized. Riots ensued. Pro-democracy
rebellions erupted across the autocratic Arab world and North Africa, culminating
with the collapse of Libya in August. Fighting continued this fall.
Televised events in Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Lebanon, Libya,
Morocco, Palestine, Qatar, Saudi Arabia, Syria, Tunisia and Yemen caused HR
professionals to debate whether it was safe for their expatriates to continue working
in countries imploding from revolution. Many employees were evacuated as protests
grew deadly. For example, in Syria the government cracked down so arduously on
protesters that between mid-March and the end of September nearly 3,000 people
were killed, according to the United Nations Office of the High Commissioner for
Human Rights.
After the Arab Spring, employers must carefully consider
returning employees to the Middle East and North Africa.
Open for Business?
The author is an online editor/manager for
SHRM.
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HRMagazine
106 HR Magazine December 2011
Global HR Agenda
objectives in Egypt and Libya metthe
overthrow of dictators that ruled over
them for yearsthey have not been able
to move into the next phase of building
an alternative system of governance.
One of the first questions experts say
business leaders should ask is: How do
you mind the store if you dont know
whos minding the store?Due diligence
is important.
HR professionals know, however, that
this is the nature of working in the devel-
oping world, says Gary McGillicuddy,
founding partner of The Birches Group
LLC, an HR consulting company based
in New York City. Theres
not always a court or a gov-
ernment office to adju-
dicate things. There are
regime changes and the
new guys come in, and
all those understandings
need to be re-evaluated.
Thats the fundamental
nature of working in a
developing countrythe lack
of clarity around governance, about the
rules of law.
Judith Wierman, GPHR, has seen
this firsthand. Wierman is director of HR
and senior global business partner for
Nalco, a water treatment company that
does offshore oil production. It employs
several hundred people in the Middle
East and North Africa.
When conditions began to deteriorate
in Libya last February, Nalco immedi-
ately began evacuating expatriates from
Tripoli, Libyas capital, to Rome.
We have employees who still
have personal belongings there, says
Wierman, a member of the Society
for Human Resource Managements
(SHRM) Global Special Expertise Panel.
They literally left with what they had.
Nalco isnt planning to send expa-
triates back anytime soon. Weve
got locals that work for us in Libya,
Wierman says. Given some of the
political turmoil and things that have
been occurring there, we want to make
sure our employees are safe.
Risk Assessment
Ultimately, sending people back into ar-
eas affected by the Arab Springdespite
the potential for violenceis a coun-
try-by-country decision, says Lisbeth
Claus, SPHR, GPHR, a professor of
global human resources at Willamette
University in Salem, Ore. Even then, she
says, HR executives should
not be making this decision
alone.
Nor should they rely
solely on input from
chambers of commerce
or ministries of foreign
affairs in the countries
where they seek to do busi-
nessor even the U.S. State
Departmentbecause, experts
say, it can often take them days to report
on unrest.
HR does not have the skills to
evaluate this, Claus adds. Rather, HR
professionals should be turning to secu-
rity consultants who are working in the
countries they intend to send employees
to, and/ or talking to locals who are
employed there so they can effectively
assess the situation.
Ultimately, each company needs
to weigh its own risks and see if it needs
to be there, says John Rose, president
of Business Travel Services for Travel
Guard, a division of New York City-
based insurer Chartis.
For instance, when evaluating
security concerns, Jarrett says, an oil
block operator with a multimillion-dollar
operation and a staff of 200 will think
differently of a local militia group in the
operating vicinity than, say, a team of
engineers working on the oil block for a
short period. Both companies will wish
to mitigate risks to their staffs, but the
level of security measures they adopt will
have vastly different outcomes on their
operations.
Having security plans, policies and
procedures for dealing with any contin-
gency is crucial, he and other experts say.
These days, its not just about how much
youre going to pay someone to return to
someplace treacherous.
Companies used to throw money at
employees to get them to accept interna-
tional assignments in dangerous places,
says Ed Dombkowski, Buck Consul-
tants national practice leader for global
special benefits. They used to give them
extra bonuses and hazard pay. Now, the
money has become less important than
individual security.
Companies should assess their risk,
experts say, and determine whether or
not sending an expat into a potentially
explosive environment is critical. There
are a myriad of questions to consider:
Can someone local perform the same
job?
Will expatriate employees need secu-
rity?
What type of security is necessary?
Will they need bodyguards, armed
personnel or bulletproof cars?
Will employees be working in an of-
fice or on a compound?
Will they be driving around meeting
clients out in the open?Is it safe for
them to do so?
Will expatriates be allowed to return
with their families?
Once the business case for sending an
expatriate has been addressed, compa-
nies will need to fully brief employees
about conditions in the country and
prepare plans of action in case violence
Online Resources
For a sidebar containing more than
a dozen tips for HR professionals
considering sending employees to
unstable countries, see the online ver-
sion of this article at www.shrm.org/
hrmagazine/1211GlobalHRAgenda.
After a revolution, Theres not always
a court or a government office to
adjudicate things. ... Understandings
need to be re-evaluated.
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HRMagazine
December 2011 HR Magazine 107
erupts again and figure out
what to do in case of emer-
gency.
HR professionals must
establish whether its
financially necessary to
send an expatriate and
what liability issues exist if
that employee is kidnapped
and held for ransom or simply
disappears. Security should be in
place, and ensuring the persons health
and welfare should be considered. Insur-
ance, mobility and evacuation plans
should be in place, too.
To Go or Not to Go?
True, some parts of the region remain
more volatile than others. In early Sep-
tember, the Israeli embassy in Egypt was
attacked, increasing tensions in the re-
gion. Experts point out that companies
seeking to expand or resume operations
in Egypt should consider that some
Egyptian nationals are trying to leave
because of that countrys
flailing economy.
According to The
Egyptian Gazette, Egypt
is the largest economy
of the Arab Spring
states. In 2010, its gross
domestic product (GDP)
was $497 billion and
ranked 27th in the world.
And although exports grew GDP
more than 5 percent in 2010, the average
Egyptian lives in poverty.
Some Egyptians want to leave
because of the economy. They want
to relocate their assets to the United
States because its safer economically
speaking, says Peter Asaad, co-author
of The HR Immigration Pocket Reference
(Immigration Solutions Group/SHRM,
2010). Asaad is managing attorney at
Immigration Solutions Group PLLC
in Washington, D.C., which assists
HR professionals and individuals with
employment issues.
Theyre looking to buy a house
or create a business in the U.S. with
the ultimate goal of moving all of their
assets to the United States because their
businesses in their country have been
impacted by the unrest, he explains.
In the end, it doesnt really matter
if youre sending them to Tunisia or
Switzerland, Claus says. Every country,
every location is potentially dangerous
because youre not in a familiar environ-
ment. Dont assume that just because
youre sending somebody to London
or Paris or to Oregon or New York
City [that] its a familiar environment,
she says. People behave differently in
unfamiliar environments. You need to be
prepared for all interventions.
And resuming business in a violence-
prone environment really needs to be
worth it.
Because, Dombkowski says, the
last thing a corporation wants is to send
someone to a troubled area and worry
about repatriation of mortal remains.
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_________________________
_______________ _________________
Copyright 2011, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademarks of Oracle and/or its affiliates.
Other names may be trademarks of their respective owners.
oracle.com/hcm
or call 1.800.ORACLE.1
Plus Global HR,
Payroll, and Benets
Find and Connect with
Your Hidden Experts
Identify and Mentor
Future Leaders
Predict Top Talent
at Risk of Leaving
Fusion HCM
In the Cloud and On Premise
EXIT
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December 2011 HR Magazine 109
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HR Technology
rate by performance category, it could
be a two-week project, says Haig
Nalbantian, senior partner for Mercer
in New York City. Now, most large
global organizations have that data in
real time.
The trick is knowing where to look
and how to extract the data. Human
resource information systems typically
have reporting tools. Learning manage-
ment, performance management and
financial systems and tools are additional
sources.
Step zero is data integrity and qual-
ity. Many organizations dont even
know how many people are working
there, says Rishi Agarwal, a partner in
Deloittes Human Capital Practice in
Atlanta.
A lack of records is not the only
potential problem. HR and payroll per-
sonnel may be operating on different
ideas of who to count as an employee.
There is an initial step of getting agree-
ment on what counts as a valid measure-
ment and then making sure the data
match the definitions. Figure out who
is measuring what, how they are doing it
and how to corral all the information,
Garbis says. Get everyone to follow this
new approach or common definitions. It
is a combination of business intelligence
and change management.
Then data often need to be brought
into a data warehouse to be analyzed and
manipulated to gain insight. The chal-
lenge lies in getting all the data sources
working together to gain a picture of
what is happening and what will happen
if certain actions are taken.
Creating Metrics for Senior Management
Leverage technology to gather, analyze and communicate workforce data.
T
o be effective, HR leaders need to become an active part of the management de-
cision-making process, not simply contributors to the expense of doing business.
This means providing metrics in terms business leaders can understand.
Historically, HR has grown up in a void of unaccountability, says Al Adamsen,
founder and managing partner of People-Centered Strategies LLC in San Francisco.
HR leaders have not been held accountable for delivering metrics that show the value
of their programs or investments.
But no more: Better tools for assembling workforce metrics, combined with tighter
coordination between HR and operations, allow HR professionals to deliver meaning-
ful business information.
HR professionals are starting to deliver business value, clearly showing the con-
nection between what they do and the outcomes of the business, says Nicholas
Garbis, strategic workforce planning leader for GE Energy in Minneapolis.
Tools to Use
HR professionals in many companies probably dont need to purchase additional
software to create valid metrics. A decade ago, if some clients looked for turnover
By Drew Robb
The author is a California-based freelance writer
who specializes in technology, engineering and
business.
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110 HR Magazine December 2011
HR Technology
It may be possible to use tools that
come with human resource information
systems for data analysis. For example,
embedded predictive analytics come
with Oracle Fusion HCM and the Oracle
Fusion Workforce Predictions module,
and more than 600 HCM reports and 90
key performance indicators come with
the SAP ERP and the SAP BusinessOb-
jects Strategic Workforce Planning soft-
ware. Analysis products from companies
such as Peoplefluent, SuccessFactors,
HumanConcepts, KnowledgeAdvisors
and others can aggregate data from mul-
tiple sources. Even common tools such
as Excel can be used for data analysis.
But no tool replaces the value of
human insight.
Dont Be Sidelined
If HR professionals dont measure their
functions effectiveness, someone else will,
Adamsen says, explaining that If opera-
tions isnt getting the data they need from
HR, they will build the capability they
need, often working with finance. HR
could be left on the sidelines.
Jennifer Triumph is compensation
analyst for the Northern Indiana Region
of the Franciscan Alliance, a group of 14
hospitals. In her region are five facilities
with about 5,000 employees. Triumph,
located in Hammond, Ind., faces the
challenge of attracting and retaining
employees from the higher-paying Chi-
cago metropolitan area. She says data
has become key to obtaining resources
necessary to recruit and retain high-value
talent.
For example, sometimes her team
will propose new employee benefits such
as discounted tickets or higher tuition
reimbursement. By showing that we
are attracting and retaining high talent,
and that employees like these benefits,
we can keep these costly benefits, she
says. We can show that the cost of these
benefits is less than the cost of losing the
quantity of employees who would leave
if you take away the benefits.
What to Measure
Senior executives make decisions based
on facts, not feelings or opinions.
When selecting metrics to track and
analyze, HR leaders use two categories
of data: standard HR statistics, such as
head count and time-to-fill, and work-
force analytics that show how workforce
characteristics affect production, income
and profitability.
HR is the function, and workforce
is the people, Garbis says. On the HR
side, you are aiming at optimization and
impact; on the workforce side, its about
business results.
In deciding what to mea-
sure, include metrics that
show actions taken to
produce results, not just
end results. Dont
look at just outcome
metrics. The key is
to get to the driver
metrics, says Mercers
Nalbantian.
Metrics kept and
reported on differ by organi-
zation, depending on culture and
business needs.
At the Franciscan Alliance, We
need to present data that show our
human capital strategy is effective and
that we are acquiring, developing and
deploying the proper talent, Triumph
says.
Metrics she tracks include:
Percentage of performance goals met
or exceeded, which show whether the
company is meeting the performance
goals aligned with its mission.
Percentage of employees rated at the
top performance appraisal level who are
paid above the average salary.
Percentage of top-performing em-
ployees who resigned for compensation-
related reasons.
Turnover percentage of low-perform-
ing managers and employees within one
year of receiving a low performance rat-
ing.
Percentage of employees in any per-
formance management program who im-
prove at least one level within the year.
The rate of involuntary turnover in
key jobs. Tracking this metric provides
the trend and shows whether actions are
being effective in reducing the rate.
A lot of people look at total
employee turnover, but we look at key
jobs or hot jobs and weight high perform-
ers heavily compared to average or poor
performers, Triumph says.
If top performers are leaving,
the organization may need
to adjust compensation or
benefits. If management
is lacking, line manag-
ers may need training
or may have too many
direct reports. If poor
performers are leaving,
it could be that employ-
ees are not offered enough
development assistance.
Triumph uses Halogen
Software, but the canned reports dont
always provide the data she needs. In
addition to the metrics that come from
Halogen, she runs reports on compen-
sation and turnover that come with a
PeopleSoft human resource information
system. Sometimes, she uses the Halo-
gen and PeopleSoft systems together.
The systems communicate with
each other and populate the user center,
she says. Then, through the perfor-
mance reviews and other talent manage-
ment processes that we use, we can build
metrics off of those using the Halogen
reports.
The real value comes in translating
metrics into action. The raw data need
to be translated into plans that advance
business purposes.
Analytics is the act of coupling met-
rics with experience and knowledge to
develop insights with the express purpose
of doing something with the insights,
Garbis says. Analytics requires people
with specific talent for uncovering rela-
The raw data need to be translated
into plans that advance business
purposes.
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December 2011 HR Magazine 111
* Based on SHRM member pricing for organizations numbering fewer than 750 employees.
Making HR decisions
in a vacuum?
When it comes to turnover, cost-per-hire, health care costs and
other decisions, you cant afford to guess. Fortunately, you can
afford SHRMs Customized Benchmarking Service. We deliver
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capital, health care, retirement and welfare, job satisfaction
and employee engagement, and employee benets
prevalence. Our reports include more than 400 benchmarks
and can be customized by industry, staff size and other criteria.
Visit www.shrm.org/benchmarksor contact us at
benchmarks@shrm.org or 703-535-6366.
11-0670
tionships and driving
the right actions.
Story Time
Its up to HR profes-
sionals to interpret
workforce data in a
way that gives clarity and meaning to the
business issues at hand.
Execs will never walk away from
a meeting with reams of data points,
Nalbantian says. They will always walk
away from that meeting with a compel-
ling and credible story that you have
been able to make those data tell.
HRs metrics dont have to connect
all the way to the bottom-line result. For
example, in a retail setting, if HR profes-
sionals can show that a training program
speeds up cashiers, others can extrapo-
late that to lower payroll, higher profits
and customer retention. If HR can show
that its actions lead to greater engage-
ment, others can envision how this drives
down the cost of hiring. But the presen-
tation has to be
done properly
and, ideally, live.
HR profes-
sionals may
understand what
we are trying
to portray, but the executive team also
needs to see what we see, says Triumph.
When presenting to senior leaders, she
often uses Halogen to run ad hoc reports
on her desktop as needed to answer ques-
tions.
There are some instances where we
have to take time to re-analyze the data
and bring it back, but the majority of
the time we can revamp the reports on
the fly, she says. When senior execu-
tives ask for specific data, she can create
reports on the spot.
Triumph says HR leaders should
present information quarterly so execu-
tives stay apprised of HRs value. But
the most important meetings happen
during the annual budget process, and
impromptu meetings may be necessary
to address situations such as an unantici-
pated increase in patient load.
We can be called up at any time to
give any type of metric, and it is great to
have software systems that can provide
rich data, Triumph says.
The Franciscan Alliance takes in
patients without regard to ability to
pay. Given the economic climate and
increased demand for charity care, it is
up to the HR department to find ways
to get greater value out of existing staff.
So, Triumph recently showed senior
executives that it was more important
than ever to attract and retain the best
staff.
The equation is that high perfor-
mance equals better patient outcomes,
which equals lower admittance costs,
which equals higher profitability, she
says. We are a nonprofit, so our bottom
line is always zero, but we still need to be
profitable so we can expand our organi-
zation and provide better services.
For more information about creating
metrics for senior management, see the
online version of this article at www.shrm
.org/hrmagazine/1211Robb.
Online Resources
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___________________
________________
Students
you have the knowledge required to enter the HR profession .
Guidebook at www.shrm.org/assessment/guidebook and begin
Employers
www.shrm.org/assessment
11-0631
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should begin looking for the certicate of learning on recent
Assurance of Learning Assessment
for graduates of HR Degree Programs
SHRMs Assurance of Learning Assessment is the new
universal benchmark for undergraduate- and graduate-level
HR students. After passing the exam, students will receive a
Certicate of Learning informing hiring managers that they
have sufcient knowledge to enter the workforce.
Exam registration for the spring 2012 test window opens on January 1.
, looking to differentiate yourselves in the HR job marketplace?
Register today for the Assurance of Learning Assessment and demonstrate
Purchase the SHRM Assurance of Learning Assessment: Preparation
preparing today!
graduates resumes. This exam replaces the PHR for students because
traditional students are no longer eligible to take the PHR according to
HR Certication Institutes eligibility requirements.
Visit www.shrm.
org/assessment
for general
information on
the exam and the
content areas
covered.
December 2011 HR Magazine 113
Court Report
New cases are posted online each week. Visit www.shrm.org/law.
Arbitration Clause Covers Claims Arising from Rape
Jane Doe v. Princess Cruise Lines Ltd., 11th Cir., No. 10-10809 (Sept. 23, 2011).
A
cruise line employee who was
drugged and raped by other
employees, and whose employer
failed to provide her with proper medical
treatment and interfered with her obtain-
ing medical treatment ashore, was com-
pelled to arbitrate
claims against
her employer that
related to her
employment sta-
tus, the 11th U.S.
Circuit Court of
Appeals held.
Jane Doe
worked as a bar
server on Prin-
cess Cruise Lines M/S Star Princess.
On June 20, 2009, Doe attended a cabin
party with fellow crew members where
someone handed her a drink containing
a drug that rendered her unconscious.
When Doe came to, she realized that she
had been raped.
After informing the personnel man-
ager, Doe was interrogated by male of-
ficers and supervisors who required her
to repeatedly recount the details of the
rape. When Doe was finally allowed to
go to the ships infirmary, more than 24
hours after reporting the rape, she tested
positive for one of the so-called date-
rape drugs. On June 23, a crew member
admitted to engaging in sex with Doe
without using a condom, yet the ships
doctor failed to administer medication to
counteract the risk of sexually transmit-
ted diseases.
When Doe asked officers of the
cruise line for medical treatment, they re-
sponded by berating her and attempting
to force her to choose between remaining
on the ship and returning to her native
Russia. Doe was finally allowed off the
ship on July 13 and treated at a hospital
in Seattle. On Aug. 31, the cruise line
flew Doe back to Russia without provid-
ing her with medical care, counseling or
assistance of any kind.
Doe asserted 10 claims against Prin-
cess Cruise Lines. When Doe went to
work for the cruise line, she signed an
agreement that contained an arbitration
provision for all
disputes relating to
or in any way arising
out of or connected
with services
performed for the
company. Princess
Cruise Lines sought
to compel arbitra-
tion of all counts,
contending that they
fell within the scope of the arbitration
provision. The cruise line described a
ship as the very framework of the sea-
mans existence, and, as a result, argued
that Doe was continually in the service
of the vessel and subject to the call of
duty at any time. The district court
ruled that the dispute did not arise out
of her employment and therefore was
beyond the scope of the arbitration provi-
sion.
Characterizing the arbitration provi-
sion as broad, but not limitless, the
11th Circuit stated that if the cruise line
had wanted a broader arbitration provi-
sion, it should have left the scope of it
at any and all disputes, claims or con-
troversies whatsoever. If the language
about employment and services as an
employee did not limit the scope of the
arbitration provision, it would have no
purpose; that, remarked the court, is an
interpretative no-no.
The 11th Circuit determined that
Does common-law tort claims, includ-
ing false imprisonment, intentional inflic-
tion of emotional distress and invasion of
privacy, were not an immediate, fore-
seeable result of the performance of her
services as an employee, and therefore
were not within the scope of the arbitra-
tion clause.
However, the court found that Does
other counts were dependent on her
status as a seaman employed by the
cruise line and so fell within the scope of
the arbitration provision. Those claims
included allegations that Princess Cruise
Lines failed to:
Provide a safe place to work.
Provide complete medical treatment
and care.
Timely pay all of Does wages.
Although the rape and its aftermath
led to these claims, the 11th Circuit
underscored that Doe could not have
brought them if she had not been a sea-
man employed by Princess Cruise Lines.
By Roger S. Achille, an attorney and associate
professor at Johnson & Wales University, Graduate
School of Business, in Providence, R.I.
Social Workers
Not Learned
Professionals
Solis v. Washington, 9th Cir.,
No. 10-35590 (Sept. 9, 2011).
S
ocial workers who worked for
the state of Washington were not
learned professionals within the
meaning of Fair Labor Standards Act
(FLSA) regulations and so were entitled
to overtime pay, the 9th U.S. Circuit
Court of Appeals has ruled.
The Washington State Department
of Social and Health Services (DSHS)
did not pay overtime to social workers,
whose duties included identifying the
needs of families and arranging for social
services, investigating child abuse and
neglect, developing and recommending
treatment plans, evaluating progress
toward treatment plan goals, and recom-
Professional Pointer
Whether a party has agreed to
arbitrate an issue is a matter
of contract interpretation.
Therefore, employers should
clearly articulate the scope of an
arbitration clause.
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114 HR Magazine December 2011
Court Report
Returning Service Members Must Be Given
Reasonable Opportunity to Rebuild Commission Income
Serricchio v. Wachovia Sec. LLC, 2nd Cir., No. 10-1590 (Sept. 13, 2011).
A
n employer must promptly reinstate a service mem-
ber returning from active duty and provide that per-
son a reasonable opportunity to regain the same level
of commission income as was being earned prior to deploy-
ment, the 2nd U.S. Circuit Court of Appeals held.
In 2001, Michael Serricchio worked as
a financial advisor for Wachovia Securi-
ties LLC. His compensation was com-
mission-based. After the Sept. 11, 2001,
terrorist attacks, he was called to active
duty in the Air Force Reserve. During his
deployment, many of his accounts were
lost or redistributed within Wachovia.
In 2003, Serricchio sought reinstate-
ment pursuant to the Uniformed Services
Employment and Reemployment Rights
Act (USERRA). Wachovia offered him
a position at his previous commission
structure with a small monthly draw
while he rebuilt his book of business. He
was offered a limited number of small accounts and op-
portunities for cold-calling clients. Wachovia did not offer
to compensate him for his lost book of business or provide
him any other assistance in rebuilding his client base. As a
result, Serricchio quit and filed suit.
A jury found that Wachovia violated USERRA and
constructively discharged Serricchio. The court doubled the
damages awarded by the jury and reinstated Serricchio to a
fixed-salary position for three months while he regained his
brokers licenses, followed by a nine-month period when
he would receive a fixed draw
offset by the commissions earned
during that time as he rebuilt his
book of business.
The 2nd Circuit affirmed,
holding that, for the position
offered Serricchio to be of like
seniority, status and pay as
required by USERRA, Wacho-
via needed to do more to help
him re-create his previous level
of compensation. The court
upheld Serricchios constructive
discharge claim because he could
not support himself and his fam-
ily under the commission scheme offered.
By Kenneth J. Diamond, an attorney with Winterbauer & Diamond
PLLC, the Worklaw Network member firm in Seattle.
mending whether pa-
rental rights should
be terminated.
To qualify for a
position as a social
worker, the DSHS re-
quired candidates to
have a bachelors de-
gree or higher in so-
cial services, human
services, behavioral
sciences or an allied field. The DSHS
considered applicants with bachelors de-
grees in a variety of disciplines, including
counseling, anthropology and criminal
justice, to be qualified. The positions
were also open to applicants with degrees
in unrelated fields, such as history or eco-
nomics, as long as the applicants course
work included at
least 30 semes-
ter hours or 45
quarter credits in
social services.
After the U.S.
Department of
Labor received a
complaint from
an employee,
it initiated an
investigation. DSHS officials contended
that the social workers met the learned
professional exemption and thus were
not owed overtime. The Labor Depart-
ment disagreed, and the secretary of
labor sued the DSHS under the FLSA.
The district court concluded that the
positions required a sufficient amount
of specialized intellectual instruction
and therefore qualified for the learned
professional exemption. The secretary
of labor appealed, and the 9th Circuit
reversed the grant of summary judg-
ment, focusing on the broad educa-
tional requirements that the DSHS
established for these jobs. The court
found that, because the DSHS deemed
applicants with a broad range of edu-
cational backgrounds to qualify, the
course of intellectual instruction was
not sufficiently specialized to meet
the exemption.
By Andrew J. Jaramillo, an attorney in the Orange
County, Calif., office of Ogletree, Deakins, Nash,
Smoak & Stewart PC, and Elizabeth Falcone, an
attorney in the firms Portland, Ore., office.
Professional Pointer
An employee likely will
not qualify for the learned
professional exemptionat least
in the 9th Circuitunless the
education required is sufficiently
prolonged and the discipline is
specific.
Professional Pointer
Under the Uniformed Services
Employment and Reemployment
Rights Act, when a returning
service members compensation
is commission-based, the
employer may need to offer
guaranteed compensation
and related assistance for a
reasonable period of time while
the service member seeks to
rebuild his or her business.
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TANIKA WILLIAMS, HR GENERALIST
ALEXANDRIA, VIRGINIA
SHRM MEMBER SINCE 2009
Self-study, 3-day prep course,
in-classroom, online, or with
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next.shrm.org/learning
IM A COLLABORATION EXPERT,
BUT I STUDY BETTER ON MY OWN.
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Customize your study schedule, with the
self-study program.
At a 2-day course led by qualied instructors.
Organizational training for multiple
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At a college/university. Online, on-site
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of HR Management is designed for anyone who practices HR


or performs HR tasks. This program will help individuals comprehend complex legal terms while
showing them how to avoid the pitfalls inherent in legal compliance, compensation and employee
benets. Order today and rethink the role of HR.
Its Not As Easy
As You Think.
Choose from 4 Easy Ways to Learn:
HR
Visit www.shrm.org/essentials to try the FREE Demo!
10-0796
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December 2011 HR Magazine 117
Legal Trends
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Getting Overtime Calculations Right
a certain bonus each year, the fact that
the payment is within the discretion of
the company may not be enough for the
bonus to be truly discretionary.
Holiday Gifts
Gifts for holidays and other special
occasions do not have to be included in
determining the regular rate for over-
time purposes under certain circum-
stances. Specifically, to be excluded, the
bonus:
Cannot be measured by or depen-
dent on hours worked, production or
efficiency. So, if you give more to those
who are more productive, you will have
to pay them overtime on the bonus, too.
Cannot be so substantial that
employees consider it part of the wages
they work for. The regulations provide
that two weeks worth of pay is not so
substantial. (Yes, you can tell the regu-
lations were written pre-recession.)
Holiday gifts may be excluded even if
they are paid with a regularity such that
employees expect to receive them. This
is in direct contrast to the discretionary
bonus.
Holiday gifts of different amounts
may be given to different groups of
employees. For example, you can
pay exempt employees one amount
and nonexempt employees another
amount, subject to employee relations
considerations.
The fact that a holiday or other special
bonus does not need to be included in
determining the regular rate for overtime
Be sure you know what payments are
left out of overtime calculations.
D
etermining an employees overtime rate is easy. Simply take the employees
hourly rate and multiply it by 1.5. Thats true, except when its not.
As a general rule, employers must include all compensation when they
determine an employees regular rate for overtime purposes, unless a particular type
of compensation is expressly excluded by statute or regulations. Generally speaking,
employers must include, for example, commissions, incentive compensation, bonus-
es, length of service awards, goal-sharing payments, and prize or contest awards
(even noncash ones).
But what can employers exclude? More than you might think. Fair Labor Stan-
dards Act (FLSA) exclusions exist for discretionary bonuses, holiday gifts, employee
suggestion awards and other types of compensation reviewed in this article.
Discretionary Bonuses
An employer does not need to include discretionary bonuses in determining the
regular rate for overtime purposes. However, for a bonus to be truly discretionary
for these purposes, it must be discretionary in existence as well as in amount. Fur-
ther, the discretion must exist on paper and in reality. If employees routinely receive
By Jonathan A. Segal
The author, a partner with Duane Morris in
Philadelphia and managing principal of the Duane
Morris Institute, focuses on counseling, training
and strategic planning to minimize litigation and
unionization.
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118 HR Magazine December 2011
Legal Trends
purposes does not mean that the bonus
does not need to be taxed. To the con-
trary, all cash bonuses must be taxed.
Further, even the value of most noncash
bonuses must be taxed.
Percentage of Total Earnings
There is another exception when a bonus
is a percentage of the employees total
earnings. The rationale here is that you
already have paid overtime on the bonus
because the employees bonus includes a
percentage of overtime.
Lets assume, for example, an employ-
ee makes for the year $20,000 in base
compensation and $2,000 in overtime
compensation for a total compensation of
$22,000.
If you pay the employee a bonus at
the end of the year equal to 1 percent of
the $22,000in other words, $220you
do not have to pay overtime on the $220,
too.
Lets change the facts. Lets assume
the employee also receives a $300 dis-
cretionary bonus in addition to the com-
pensation described above. Do you have
to pay the percentage bonus on the dis-
cretionary bonus, even though you dont
have to count the discretionary bonus in
calculating the overtime?
If you read the language of the regu-
lations literally, the answer is yes; the
regulations talk about total earnings.
If you think about the rationale behind
the regulations, the answer is no since the
key is to make sure you pay a percentage
of the overtime, too.
This is an interesting legal issue, but
not so interest-
ing that it calls
for spending
hundreds of
thousands of
dollars making
law on it. If you
want to play it
safe, include all
compensation to
ensure that you fall within the percentage
of total earnings exception.
Suggestion Awards
Employee suggestion awards may also
be excluded in determining the regular
rate for overtime purposes. However,
an employee suggestion award may be
excluded only if all of the following
requirements are met:
The amount of the award has no
relation to earnings.
The award is a bona fide award for a
suggestion requiring additional effort or
ingenuity outside of customary duties.
The specific employee is not required
or urged to participate.
The invitation to participate in
the suggestion program is general as
opposed to targeted to a particular
employee.
There is no time limit for sugges-
tions. The program must be open-end-
ed, unless you terminate the program
entirely.
The employer cannot have prior
notice that an employee is working on
a suggestion when it announces the
program or requests the suggestion.
In other words, you cannot cook the
books!
Other Potential Exclusions
Some other payments that may be
excluded in determining the regular rate
for overtime purposes:
Paid-time-off
benefits. Employers
have the discre-
tion to count or not
count paid-time-off
benefits. And it is
not all or nothing.
For example, an
employer could
count holidays but
not sick or vacation days.
Problems often arise when the
employer is silent about its practices.
The silence likely will be construed
against the employer under state wage
payment and collection laws as opposed
to under the federal FLSA. If you dont
make clear that you are not going to
count paid-time-off benefits in the calcu-
lation, a state agency may construe the
ambiguity against the employer.
Expense reimbursements. You dont
have to pay overtime on reimbursement
for expenses that employees incur on
your behalf.
Show up or call back premi-
ums beyond compensation for hours
worked. In some cases, you can even
credit the premiums toward the over-
time payment owed.
Premium pay. This includes hours
worked on Saturdays, Sundays, holi-
days, regular days of rest, or the sixth or
seventh day of the workweek. Again, in
some cases, you can credit the premiums
toward the overtime payment owed.
Employer contribution to a bona
fide plan providing for old age, retire-
ment, life, accident or health insur-
ance or similar benefits for employees.
Be careful: Not all plans prepared by
Employee Retirement Income Security
Act (ERISA) lawyers automatically
meet these requirements.
Employer payments to certain prof-
it-sharing, thrift and savings plans.
Again, do not assume ERISA compli-
ance equals FLSA exclusion.
Stock Option Grants
On April 5, the U.S. Department of
Labor issued a final rule that amends
FLSA regulations, but declines to adopt
many of the changes in the proposed
rule that was published in June 2008.
The final rule became effective May 5.
One of the issues addressed in the
new regulations is whether and when
stock option grants can be excluded
from determining the regular rate for
overtime purposes. It is painful to read
but even more painful not to comply.
Specifically, an employer can exclude
any value or income derived from grants or
Problems arise when the employer is
silent about paid-time-off benefits. The
silence likely will be construed against
the employer.
For more information about overtime pay,
see the online version of this article at
www.shrm.org/hrmagazine/1211Segal.
For other resources on employment law,
visit www.shrm.org/LegalIssues.
Online Resources
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REGISTER ONLINE NOW AT
ANNUAL.SHRM.ORG
ATLANTA
06.24

06.27
SHRM 2012 ANNUAL
CONFERENCE AND EXPOSITION
BE
CAPTIVATED
Get the full speaker lineup, session listing and
networking schedule at annual.shm.org
Also featuring Condoleezza Rice,
former Secretary of State
SUNDAY, JUNE 24
2:30 pm 4:00 pm
ANNOUNCING TOM BROKAW
SPECIAL CORRESPONDENT
NBC NEWS
One of the most well-respected
journalists in the world, Brokaw has
lent his voice to the biggest stories
of the last two decades. His insight
and ability have earned him a dozen
Emmys and two Peabody and
duPont awards for his journalistic
achievements. A trailblazer known
for his journalistic integrity, Brokaw
brings a powerful and distinguished
perspective to the Annual
Conference.
The SHRM Annual Conference is the worlds most extraordinary platform for creating, capturing,
and sharing knowledge with HR professionals from around the world. Our speakers are experts,
innovators, trendsetters and pioneers who will challenge you with ideas and approaches that may
dare you to think differently. Our topics are evergreen and ever changing. Our Exposition Hall is vast
and exciting and has literally thousands of solutions for your HR challenges. You can network,
online and in person, with people from every stage in their career, every walk of life.
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__________________
120 HR Magazine December 2011
UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS
If You Are a Local Government Entity that Paid for
Certain Brand-Name Prescription Drugs, You May
Be Able to Receive Substantial Payments From A
Proposed Class Action Settlement
There is a Proposed Class Action Settlement with McKesson Corporation
(McKesson) concerning how brand name prescription drugs are priced.
The name of the lawsuit is In re McKesson Governmental Entities
Average Wholesale Price Litigation, Case No. 1:08-CV-10843-PBS
(D. Mass.). To get detailed information and a list of drugs, see the contact
information below.
What is the Class Action About?
If you provide a prescription drug benefit, payment for many of the drugs
may be based on a common pricing benchmark called the Average
Wholesale Price (AWP). This lawsuit claims that McKesson and another
company called First Databank (FDB) wrongfully inflated the markup factor
used to determine the AWP of certain drugs. As a result, some payors
allegedly overpaid for drugs. McKesson and FDB deny wrongdoing. Trial
against McKesson is now set for March 2012.
Am I Included in the Proposed Settlement?
You are included in the Proposed Settlement if you are a non-federal and
non-state governmental entity in the United States and its Territories, which
reimbursed or paid the costs of brand-name prescription drugs based on
AWP published by FDBor Medi-Span data derived from FDB data
between August 1, 2001 and October 6, 2006.
How does the Proposed Settlement Affect Me?
Get more information about the Proposed Settlement and read it. Then you
can decide on what action to take. The Court will hold a Final Approval
Hearing on April 17, 2012 at 2:00 p.m. to consider whether the Proposed
Settlement is fair, reasonable, and adequate and the motion for attorneys
fees and expenses. You may provide the Court with comments or
objections to the Settlement, which the Court will consider at this time. For
updated information about any decisions by the Court affecting the Class or
the Settlement, please refer to the Settlement website.
To request a notice or obtain additional information:
Call toll-free: 1-877-257-8346 (hearing impaired call 1-877-266-2939)
or visit www.mckessongovernmentawpclassactionlawsuit.com;
Or Write or email: McKesson Governmental Entity Payor Litigation
Administrator at PO Box 808061, Petaluma, CA 94975-8061;
or email mckessongovtclassaction@classactmail.com
rights provided by the employer pursuant
to a stock option, stock appreciation right
or bona fide employee stock purchase pro-
gram, which is not otherwise excludable, if:
The terms and conditions of the
grants are communicated to participat-
ing employees either at the beginning
of participation in the program or at the
time of the grant.
Stock options or stock appreciation
rights are not exercisable for a period
of at least six months after the time
of the grant (except in the case of an
provided grants or
rights that are based
on performance
are made based
on meeting previ-
ously established
performance
criteria (which
may include hours
of work, efficiency or
productivity) of any busi-
ness unit consisting of at least
10 employees or of a facility. An excep-
tion: A determination may be based on
length of service or minimum schedule
of hours or days of work, or on the past
performance (which may include any
criteria) of one or more employees in
a given period, as long as the determi-
nation is in the sole discretion of the
employer and not pursuant to any prior
contract.
On-Call Payments
It is important to note what may not be
excluded when determining the regular
rate for overtime purposes. One common
misconception involves on-call time.
Whether an employee is engaged
to wait or waiting to be engaged
determines if on-call time can be
excluded. Generally speaking, the
greater the restrictions on the employee,
the more likely she will be found to be
engaged to wait and her time will be
compensable.
If the time is not compensable
because the employee is simply wait-
ing to be engaged and has substantial
freedom in terms of what he or she does
and where, and the employer makes
payments for such nonproductive time,
do these payments need to be counted
when determining the regular rate?
Logic might say no, but the regulations
say yes.
State Law
Employers must consider both federal
and state law in determining whether a
particular type of compensation may be
excluded from the regular rate for over-
time purposes.
An exclusion for calculating an
employees regular rate that is available
under federal law may not be available
under state law.
employees death, disability
or retirement; a change
in corporate ownership;
or other circumstances
permitted by regulation),
and the exercise price is
at least 85 percent of the
fair market value of the
stock at the time of grant.
The exercise of any grant
or right is voluntary.
Any determinations regarding the
award of and the amount of employer-
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SHRM

2012
Employment Law and Legislative Conference
March 4-7, 2012 Washington, D.C.
Get the information you need to stay on top of the latest issues that will affect you and your
organization. During a general election year, this information can be even more vital as you
navigate through a complex regulatory and legislative landscape. Join us in Washington and
interact with the decision-makers that help shape the workplace legislation that will impact
you.
Get more information at www.shrm.org/conferences/leg
SHRM

2012
Talent Management Conference & Exposition
April 30-May 2 Washington, D.C., Metro Area
It is critical to not only know how to nd the right talent, but how to keep top talent in the
new economy. Win the war for talent by attending this premier conference and gain tools
from leading-edge thinkers and practitioners in talent management. Be a part of Talent
Management (R)evolution and get the tips, strategies and tools you need to innovate.
Get more information at www.shrm.org/conferences/talentmanagement
SHRM

2012
Annual Conference & Exposition
June 24-27, 2012 Atlanta, Georgia
BE BRILLIANT. Join us in Atlanta and get practical tools and innovative ideas. Follow the bold
examples of HR experts and innovators and return to your ofce to make real impacts with
the information youve gained. You will Be Energized by the hands-on learning and the ability
to hear from your fellow practitioners and some of the worlds most inspiring people. With the
education you get here, you will Be Indispensable to your organization, now and in the future.
We invite you to register now to join us in Atlanta and be a part of the most exciting HR
conference in the world. BE THERE.
Get more information at annual.shrm.org
11-0678 www.shrm.org/conferences
SHRM CONNECT
SHRM

2011 Fall Conferences


Join the conversation on:
SHRM 2012
Spring Conferences
SHRM 2012
Spring Conferences
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Reach for the Stars.
Support the SHRM Foundation and create
endless possibilities for the HR profession.
1
1
-
0
5
6
7

The SHRM
Foundations
Effective Practice
Guidelines
series are on
my book shelf
for good reason.
They help me
navigate current
HR issues in my
organization. I am
proud to volunteer
for a truly value-
added HR
organization!
Your tax-deductible gift helps the SHRM Foundation maximize
the impact of the HR profession on organizational decision-
making and performance by promoting innovation, education,
research and the use of research-based knowledge.
More than $150,000 is awarded annually in education and certication scholarships to HR
professionals and students.
Academic Research Grants
Educational reports and products are available at no cost, including Effective Practice
Guidelines reports, which present important research ndings in a condensed, easy-to-use
format for busy HR professionals. Also available are DVDs that provide real-world case
studies of companies that align HR strategy with corporate business objectives.
Donate to the 2011 Annual Campaign by December 31.
HR & Administration
Mark Fogel, EVP
Leviton Manufacturing
Scholarships
The SHRM Foundation provides funding for empirical, high-impact, original HR research
that advances the knowledge base of the profession and provides relevant, actionable
insight for HR management practice. Since 1996, more than $2.3 million in academic
research grants for over 100 research projects has been funded.
Education
Visit www.shrm.org/foundation to donate online or send your check payable to
SHRM Foundation to P.O. Box 79116, Baltimore, MD 21279-0116.
The SHRM Foundation is a 501(c)(3) nonprot organization. Your gift is tax-deductible.
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December 2011 HR Magazine 123
Inside SHRM
www.shrm.org/hrnews/insideshrm
Speakers Inspire, Caution
At Strategy Conference
T
he 2011 Society for Human
Resource Management Strategy
Conference, held in early October
in Chicago, featured thought leaders and
top business executives with news to
inspire, caution and motivate senior HR
professionals:
Bridget Van Kralingen, general
manager of IBM
North America,
gave credit to
IBMs human
resource team
for playing a
vital role in the
transformation of a
defunct hardware
manufacturer
into an integrated
solutions provider.
Bill Conaty,
former senior
vice president of
HR at General
Electric, said a key
lesson learned at
the company was
that effective HR
professionals must
understand the
business equation
and how HR fits
into and supports
that equation.
Yale business
professor and
former U.S.
undersecretary of commerce for interna-
tional trade Jeffrey Garten said, Were
on the precipice of major financial
crisis. Slow growth, an inadequate job
base, high unemployment, erosion of
skills and income inequality mean that
Were in bad shape.
However, author and management
consultant Don Tapscott said there
has never been a better opportunity to
rebuild and strengthen businesses. We
are at a turning point in human history,
and HR is in a unique position to
facilitate this change.
By Nancy Davis, editor of HR Magazine, and Bill
Leonard, a senior writer for HR Magazine. Bill Conaty
Bridget Van Kralingen
Don Tapscott
Work/Life Flex:
In Focus
The Society for Human Resource Management
(SHRM) and the Families and Work Institute
(FWI) hosted the first Work-Life Focus: 2012 and
Beyond conference in early November in Wash-
ington, D.C., to highlight best practices and new
research on workplace flexibility.
Among the attendees were winners of the
2011 Sloan Award for Excellence in Workplace
Effectiveness and Flexibility. These employers
are chronicled in the 2012 Guide to Bold New
Ideas for Making Work Work, published by SHRM
and FWI. The Sloan Award is part of When Work
Works, the organizations research-based initia-
tive. The Alfred P. Sloan Foundation recently
announced a $1 million grant to the partnering
organizations to make flexible workplaces more
accessible to employers and employees.
Two research reports were released at the
conference:
Workplace Flexibility in the United States: A
Status Report.
Employer Support for the Military Community.
SHRM Online staff
Diversity Conference Celebrates Game Changers
The Society for Human Resource Management welcomed diversity leaders
and game changers to its 2011 Diversity & Inclusion Conference & Exposi-
tion, held in late October in Washington, D.C.
Speakers at the conference included:
Robert L. Johnson, founder and chairman of The RLJ Cos., founder
and former chairman of Black Entertainment Television, and the first black
billionaire in the United States. He told attendees that to be successful, com-
panies must make diversity and inclusion a priority. Theres no way that this
country can be globally competitive or an engine of economic opportunity
without involving the fastest-growing populationsminorities, he said.
Susan OMalley, former president of Washington Sports and Entertain-
ment. She shared lessons learned in 21 years of running three professional
sports teamsthe Wizards mens basketball team, the Capitals hockey
team and the Mystics womens basketball team.
Freeman Hrabowski, president of the University of Maryland, Baltimore
County, one of the countrys most diverse university campuses. He said edu-
cation and creativity will set the U.S. apart in the global marketplace.
Patricia S. Harris, global diversity officer for McDonalds. She told
attendees how the global company stresses diversity in the three legs of its
businessemployees, franchisees and suppliers.
Erik Weihenmayer, the only blind man to reach the summit of Mount
Everest, the worlds highest peak. He combined tales of derring-do with les-
sons on risk, vision and team building.
SHRM Online staff
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HRMagazine
124 HR Magazine December 2011
Inside SHRM
New Standard for Workplace
Violence Prevention
E
mployers looking to implement
policies and practices to help them
prevent workplace violence, and
intervene more quickly when it does
happen, now have a standard to guide
them. The Society for Human Resource
Management (SHRM) and
ASIS International
formerly the American
Society for Industrial
Securityissued a joint
Workplace Violence
Prevention and Inter-
vention Standard in
October.
Designed to help
business leaders evaluate
practices and develop or
enhance programs aimed
at preventing workplace
violence, the standard:
Defines the recommended scope of
an organizations efforts to prevent
and manage workplace violence.
Describes key stakeholders within an
organization who will be responsible
for this issue.
Delineates components of a
workplace violence prevention and
intervention program.
Outlines intervention
techniques and addresses
post-incident issues.
HR and the security
communities have created
an enduring and compre-
hensive approach for
business professionals
to manage the risk of
violence and to better
ensure the safety of
employees, said Lee S.
Webster, SPHR, GPHR,
director of HR standards for SHRM.
This standard can help HR practi-
tioners evaluate whether their organi-
zations are taking sufficient steps to
protect employees from a wide range
of problematic behaviors that can
compromise workplace safety, said
Rebecca A. Speer, chair of the committee
that developed the standard.
By Kathy Gurchiek, associate editor for HR News.
Online Resources
SHRM members may download the
workplace violence prevention standard
from the SHRM website. Nonmembers
can access the standard at
www.asisonline.org.
Financial Literacy Programs
Cited for Innovation
W
inners of the first Workplace Leader in Financial Education awards were
announced in November. Sponsored by the Society for Human Resource
Management and the American Institute of Certified Public Accountants,
the awards are the first national honor for employers who provide financial education
programs that improve a persons skills.
Applicants were judged on innovation, effective tactics, evidence of results and whether
a program showed a significant scope in increasing employees financial wellness.
The winners: American Express, New York City; Centre Area Transportation
Authority, State College, Pa.; Heritage Wealth Advisors, Richmond, Va.; Mountain
America Credit Union, West Jordan, Utah; NYSE Euronext, New York City;
New York Presbyterian Hospital, New York City; Therm-o-Disc Inc., a division
of Emerson Electric, Mansfield, Ohio; UA Healthcare of Tucson, Ariz.; and
WorldatWork, Scottsdale, Ariz.
SHRM Online staff
Meisinger
Fellowship
Winner
Announced
Adrielle Lewinski, PHR, a member of the
SHRM Michiana Chapter, is the winner of
the 2011 Susan R. Meisinger Fellowship for
Graduate Study.
The announcement of the $10,000
award was made during the Society for
Human Resource Management (SHRM)
Leadership Conference, held in November in
Washington, D.C. The fellowship, endowed
by SHRM, the HR Certification Institute and
the SHRM Foundation, is awarded to a
SHRM member who demonstrates leader-
ship in human resources.
Lewinski is assistant HR manager at
KIK Custom Products in Elkhart, Ind., and
is pursuing her masters degree in busi-
ness administration with a concentration
in HR management. Among her goals is to
advance her knowledge of accounting and
finance.
She wants to use her degree, she said,
to teach college-level HR classes in busi-
ness and career development. She plans to
remain active in volunteer leadership roles
with her local SHRM chapter and to continue
mentoring young professionals.
Working closely with the students has
made it clear that the perception of HR is
evolving into a true business partner, she
wrote in her Fellowship application, not just
a necessary administrative function.
Obtaining her graduate degree, she
noted, will allow me to advance and be a
driver of this change within my organization.
SHRM Online staff
nd int

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HRMagazine
December 2011 HR Magazine 125
Upcoming
January
9-10 SHRM Essentials of HR Management, Miami
9-11 PHR/SPHR Certification Preparation, Alexandria, Va.
9-11 PHR/SPHR Certification Preparation, Miami
HR Magazine Receives Top Honors
From Peers, HR Profession
T
he flagship publication of the Soci-
ety for Human Resource Manage-
ment, HR Magazine, received two
awards this fall for excel-
lence in its content and com-
mitment to diversity.
The publications June
edition won a Gold Award
for Best Single Issue in its
category in the publishing
industrys coveted Eddie
awards, presented by Folio:
magazine during its annual
conference in November.
The largest and most
inclusive annual award program of its
kind, which spans all corners of the
magazine publishing industry, recognizes
the best in editorial and
design.
The HR Certifi-
cation Institute and HR
Magazine were among
six recipien ts of the
National Association
of African Americans
in Human Resources
Presidential Leadership
Trailblazer Awards,
given in October. The
award recognizes leaders who consis-
tently demonstrate a strong commitment
and dedication to the disciplines of
human resources and diversity. In 2011,
the award was distributed to educational
institutions and media publications.
By Theresa Minton-Eversole, an online editor/
manager for SHRM.
Dig Into Job Satisfaction,
Engagement Surveys
An online survey that explores nearly three dozen aspects of job satisfaction and employee engage-
ment is the latest service from the Society for Human Resource Management (SHRM). Clients pay a
fee for the Societys Research Department to administer its online survey, People InSight. There are
34 engagement questions divided into opinions,
behaviors and conditions of engagement; the
35 job satisfaction questions are divided into
career development, relationship with manage-
ment, compensation and benefits, and work
environment.
SHRM researchers then analyze and benchmark client results against a database of responses
from 5,000 U.S. employees in 22 major industries and more than 100 sub-industries. Client results are
analyzed by overall employee population and individual department or business unit. In addition, results
are benchmarked against industry, staff size and other factors, according to SHRMs Research Depart-
ment. Clients receive an electronic report within 10 days of the close of the survey.
SHRM Online staff
Online Resources
For more information on the job satisfac-
tion and engagement survey service,
e-mail peopleinsight@shrm.org.
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CHAIR
Jose A. Berrios
BTG: The Berrios Talent Group LLC
IMMEDIATE PAST CHAIR
Robb E. Van Cleave, SPHR, IPMA-CP
Columbia Gorge Community College
PRESIDENT AND CEO
Henry G. Hank Jackson, CPA
Society for Human Resource Management
DIRECTORS
Melvin L. Asbury, SPHR
Asbury Consulting LLC
Jeffrey M. Cava
Starwood Hotels & Resorts Worldwide Inc.
Jorge Consuegra
Calvin W. Finch, CPA
CPP Inc.
Bette J. Francis, SPHR
Wilmington Trust
Carolyn Gould, SPHR, GPHR, CCP
PricewaterhouseCoopers LLC
James A. Kaitz
Association for Financial Professionals
Gary P. Latham, Ph.D.
University of Toronto, Rotman School of
Management
My-Chau Nguyen, CPA
Sirius XM Radio
Virda M. Rhem, SPHR
Texas Property and Casualty Insurance
Guaranty Association
SHRM Board of Directors
To ensure your HR team remains current on the essentials, SHRM
offers Base Compensation, a one-day on-site course devoted to
the fundamentals of developing and administering payment systems.
Base Compensation focuses on:
Developing a pay system
Crafting a salary structure
Administering a compensation program
Understanding executive compensation
Auditing, planning and communications
Ideal as a refresher for seasoned professionalsor as a
comprehensive introduction for those transitioning to HR and
compensationSHRMs Base Compensation course can
be brought directly to your organization at a time and date of
your choosing. For more information, or to schedule the Base
Compensation course for your HR team, please contact SHRM
Organizational Training & Development.
+1 703-535-6135 / OrgTraining@SHRM.org
www.SHRM.org/OrgTraining
Base Compensation: Training that Pays
More than ever,
your compensation
policies directly
impact your bottom
line, recruiting and
retentionand your
legal liability.
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______________________
December 2011 HR Magazine 127
Whats New
sumes and information found from other
sources into LinkedIn Recruiter. These
records can be searched, tagged with
information and shared across the team,
just like any profile found on LinkedIn.
(650) 687-3600
http://talent.linkedin.com
info@linkedin.com
Scavado LLC has launched a web-based
candidate sourcing and recruiting tool
also called Scavado. Formerly known
as AutoSearch, this updated tool is de-
signed to replace the more costly and
more complex Boolean search tech-
niques. The product is being offered as
either a stand-alone software tool or a
module with the companys software,
Sourcer-in-a-Box. The latter can help
employers make recruiting processes
more proactive. The new tool can help
reduce cost-per-hire, and allows recruit-
ers to work outside their specialty to
assist with job requisitions and quickly
identify potential candidates for hard-to-
fill positions.
(800) 518-5644
www.scavado.com
info@scavado.com
Product manufacturers and developers provide
information for Whats New. Inclusion in this
sample of products does not necessarily imply
endorsement by SHRM or HR Magazine.
For an online directory of new products and
services by category, please visit www.shrm.org
/publications/hrmagazine/whatsnew.
Priority Health has launched HealthIn-
site, a web-based program that can help
HR professionals make informed
decisions when purchasing health
care coverage and services. Health-
Insite helps users analyze how em-
ployees and dependents are using
benefits, then take action to reduce
costs and improve health care out-
comes. The service is designed to
give health plan sponsors a clear
picture of where their health care
dollars are being spent and to help
sponsors identify the top health is-
sues affecting their employ-
ees and plan participants.
(800) 471-2504
www.priorityhealth.com
employer.center@priorityhealth.com
Staffing
LinkedIn has launched LinkedIn
Talent Pipeline, a recruiting and
staffing management tool designed
to help corporate recruiters and
HR managers manage and track
talent leads. With the rise of social
media, recruiters are increasingly
using online networks as sources of job
candidates who may not be actively look-
ing to change jobs. Talent Pipeline offers
a way for recruiters to track potential
candidates in a single place before they
start a formal application process. With
talent leads at their fingertips, recruiters
can use Talent Pipeline to import re-
Performance Management
Human Resource Systems Group Ltd. has released i-SkillSuite 5.0, a web-based
software suite that includes talent management tools designed to improve compa-
nies productivity by developing more-skilled and more-engaged employees. By
linking job requirements with organizational needs, the software can help HR pro-
fessionals strategically manage their employers talent needs and match employees
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_____________________ _____________
__________
____________________
__________
128 HR Magazine December 2011
Future Focus
www.shrm.org/trends
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The author is manager of the Workplace Trends
and Forecasting program at SHRM.
The Jobs Paradox
U
nemployment rates remain high, but companies are having trouble finding
candidates to fill high-skilled jobs.
Fifty-nine percent of U.S. companies are finding it difficult to attract critical-
skills employees, an October Towers Watson survey of 218 companies found. This is an
increase from 52 percent in 2010 and 28 percent in 2009.
Research from the Society for Human Resource Management (SHRM) also shows
that skills issues loom large. The number of employers reporting that it is increasingly
difficult to recruit candidates to fill key positions has been on the rise for nearly two
years, according to data from SHRMs Leading Indicators of National Employment.
The latest SHRM Jobs Outlook Survey Report, released in October, found that respondents
for 60 percent of organizations say jobs in the category of skilled professionals are the
hardest to fill.
In most industries, the jobs being added require a mix of new skills or entirely new
skill sets compared to those lost at the beginning of the recession, according to a Novem-
ber SHRM poll of 2,286 HR professionals on the ongoing impact of the recession. Highly
skilled positions such as engineers, technicians, medical personnel and scientists are the
hardest to fill.
Retention remains another challenge. According to the Towers Watson survey, once
recruiters do manage to fill their critical-skills positions, 36 percent report difficulty retain-
ing those employees.
By Jennifer Schramm
Supply and demand may help explain
why it is getting harder to find and retain
employees with critical skills. On the de-
mand side, companies reduced staff and
automated jobs in response to the reces-
sion. That put pressure on workers in the
remaining jobs to increase productivity,
and rising productivity is associated with
the need for higher skills. Technological
developments and increased specializa-
tion within highly technical fields also has
increased the demand for more-specific
skills. As a result, job candidates with ex-
actly the right mix of skills and experience
have become more difficult to find.
Meanwhile, the supply of potential
candidates appears to be changing. Many
individuals with masters degrees or Ph.D.s
in the sciences in the United States are
over age 40. As more Baby Boomers retire,
the demand for technical specialists and
new entrants to the science, technology,
engineering and math fields could intensify
in the United States.
Recruiting behaviors may also be
changing. Social media such as LinkedIn
may make it easier for staffing specialists to
look for passive job seekers who have the
desired blend of highly specific, hard-to-
find skills and experience. Yet, more often
than not, these individuals are already em-
ployed. Efforts to draw highly in-demand
potential candidates away from current
employers may end up consuming more
time and resources than finding almost
perfect candidates and investing in their
development and skills once they are on
the job.
Whatever the causes, and however
counterintuitive it may seem as the unem-
ployment rate continues to hover around
9 percent, there is growing documentation
that critical-skills shortages are increasing,
and that is a trend to watch.
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2011 Weight Watchers International, Inc., owner of the Weight Watchers registered trademark.
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Ceridian InView

Workforce Management.
Plan, schedule, track, empower, repeat.
Confdence is knowing your managers are empowered to produce cost savings.
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For more empowering details, call 877-552-5669 or go to www.ceridian.com/workforce.
Ceridian Corporation. All rights reserved. www.ceridian.com/workforce
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SHRM
FOCUS
Student
Denver Takes
Center Stage
Page 8
Regional Student
Conferences
Page 4
Chapter Discusses
Generational
Differences
Page 6
Watch Your
Language!
Page 12
WINTER 2012
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C
O
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S
W
elcome to the December 2011 edition of the
SHRMStudent Focus. As you prepare for
your exams or as some of you graduate, we
hope youll nd the information insightful and help you
reach your full potential. The SHRMStudent Focus is
published within the digital HR Magazine quarterly in
March, June, September and December. If youd like to
be highlighted in the next edition or want to share your
thoughts on the e-zine please e-mail SHRMStudent@
shrm.org. We wish you the best of luck on your exams
and are looking forward to an exciting 2012.
FYI
3 2012 Regional
Student Conferences
Conference Focus
4 2011 Regional Student Conferences
Looking Back
Student Chapter Focus
6 Chapter Discusses Generational
Differences
Career Focus
8 Great Training Through a Student Conference
10 SHRM

Assurance of Learning Assessment


for Graduates of HR Degree Programs
11 Should You Follow Up
with a Recruiter?
12 Watch Your Language!
Winter 2012
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___________
Winter 2012 / SHRMStudent Focus 3
FYI
2012 Regional
Student Conferences
Mark Your Calendars!
Calling all students! Mark your calendars and plan to
attend the SHRM Regional Student Conference in your
area next spring.
Noted below are the dates/locations:
Northeast March 9-10, 2012
University of Massachusetts
Amherst, MA
(CT, DE, MA, MD, ME, NH, NJ, PA, RI and VT)
Southeast March 23-24, 2012
Clemson University
Clemson, SC
(AL, DC, FL, GA, KY, NC, SC, TN, VA, WV
and Puerto Rico)
Southwest Central March 30-31, 2012
CenturyLink (Qwest) Conference Center
Lakewood, CO
(AR, AZ, CO, KS, LA, MO, OK, TX and UT)
North Central April 13-14, 2012
Michigan State University
East Lansing, MI
(IA, IL, IN, MI, MN, ND, OH, SD and WI)
Pacic West April 20-21, 2012
Pepperdine University
Westside Conference Center
Los Angeles, CA
(AK, CA, HI, ID, MT, NV, OR, WA, WY and Guam)
This conference is designed specically for you, an
HR student. Programming includes a series of break-
out sessions led by HR professionals. Learn from their
experiences as you prepare for your career. Youll also
be able to network with other students and HR profes-
sionals. In addition, participate in or watch the Case
Competition.
What is the Case Competition?
The Case Competition gives you a more realistic job
preview and reinforces the mind-set that is required
of HR professionalsyoull respond to multiple issues
within a given situation, drawing on assimilated knowl-
edge of a subject area, within a restricted timeframe
and in different formats required by management.
In its second year, the Case Competition is a chance
to demonstrate your ability to apply your HR knowledge
in a competition. Each team is made up of 2-6 students.
Teams receive a case and are given four hours to de-
velop a solution, and then to prepare a PowerPoint pre-
sentation and a written summary. The team will then
give an oral presentation for 15 minutes. The presenta-
tion and summary are judged separately. The team with
the total highest points from both the oral and written
presentations will go on to the nal round. During the
nal round, the oral presentations will be conducted in
front of both the judges and an audience eager to learn
the solution presented by the winning team!
Registration is $30 for SHRM student members and
$35 for non-SHRM members. Work with your advisor,
local professional chapter or state council to inquire
about possible nancial support so you can attend one
of these great events! SF
Watch for additional information and registration information later this year at
http://www.shrm.org/Conferences/StudentConferences/Pages/default.aspx
Engage. Grow. Connect.
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CONFERENCE FOCUS
At times, we might take for granted the caliber of education
we are receiving. I personally felt like we were overmatched
[by] the competition, but, once we settled in and started
working, it became clear that we were very well prepared and
capable. It has been a great condence boost for myself and,
Im sure, for everyone else as well.
Adam Geraets, USD Chapter Co-President
2011 Regional Student
ConferencesLooking Back
A
s faculty advisor
for the University
of South Dakotas
SHRM chapter, and a 5-year
veteran of the North Central
Regional Student Confer-
ence, I was denitely a fan
of the old Jeopardy-
style competition.
It was fast-paced
and thrilling. Two
teams with hands
poised above their
buzzers, swiftly con-
sulting teammates before -
nally buzzing in: What are
bloodborne pathogens?
Bloodborne pathogens is
correct. A short burst of
applause.
One intense matchup
followed another in that
format. Scores were tallied
and everyones anticipation
built for the announce-
ment of the seminal
teams. The year my friend
Steven Ashs Akron team
was in the seminals, I
remember him twisting
and turning in his seat with
each answer like a box-
ing coach watching
his prizeghter
in action. It was
HRs version of
the NCAA basket-
ball tournament, and
it was fun. It was also big.
The North Central Confer-
ence included 39 teams in
2010, and this too added to
the festive atmosphere.
With the introduction
of the Case Competition
this past spring, there was
much uncertainty. How to
prepare for the new format?
Will anyone go? Should we
even go this year? We chose
to go, and I am glad we did.
The Case Competition lacks
some of the sizzle of the old
format, sure, but there were
positive differences as well.
With the old format,
winning teams commit-
ted the required terms
and concepts to memory,
and then learned to hit a
buzzer really, really fast.
It was all in good fun, but
I have been doing the HR games (now Case Competition) for
three years. Each year we have put the knowledge we have
learned to the test. This has been a great preparation for
the future. Being able to win in this years competition put a
great cap on my HR education here at USD.
Becky Amundson, USD Chapter Co-President
By Damian
Lonsdale
The University of South Dakota (USD) team took second place
in North Central Regional Student Conference.
4 SHRMStudent Focus / Winter 2012
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It was a great experience; one that I would
encourage students to take part in next year. The
competition served as an excellent way to display
what we had learned, and prepare us for the future.
It was not only a good learning experience, but fun
and an opportunity to network.
Dan Olson, Member
I always hear that there are great opportunities
offered through the colleges at USD and through
establishments such as the Beacom Fund, but the
recent SHRM competition gave me a real taste of that.
I had an experience that was beyond my expectations
and I credit that to the funding our program received.
Lizzy Wetering, Member
It was kind of nerve-wracking going into the competition
not knowing what to expect, but once we got the case
we came together as a team and came up with a great
paper and presentation. It is an amazing feeling to know
that what we have learned from the university enabled
us to beat some graduate school competitors.
Candis Kiihl, Member
it was also a bit supercial
in comparison to what
HR professionals actu-
ally do. It lacked a deeper,
deliberative component. It
fell short in terms of true
critical thinking and true
teamwork. These criticisms
describe exactly what is
good about the case format.
It does reect real, relevant
issues that students could
possibly wrestle with in
their future careers. They
are put in a position where
they have to sift through
the information given and
determine whats most im-
portant, and then use their
knowledge of HR to gure
out the best solutions, all
under the constraints of
what is most effective, legal
and ethical. It is demand-
ing and developmental in
ways the Jeopardy format
never was.
As a fan of the
Jeopardy-style competi-
tion, I didnt think I would
like the case format, and
I thought the Regional
Student Conference ex-
perience would suffer by
comparison. I was wrong. Is
the case format tougher to
prepare for, from a strategy
standpoint? It sure is, but
it also makes for a more
meaningful competition.
I also like the emphasis on
presentation skills, which
are denitely important in
the real world. The Re-
gional Student Conference
still includes great sym-
posiums and offers the
tremendous fellowship and
networking opportunities
youve come to expect. In
fact, the only thing I really
missed at the 2011 confer-
ence? The crowds. We need
more attendees!
To the skeptical faculty
advisors out there: please
consider the value the Re-
gional Student Conference
offers your students. The
new case format takes some
getting used to, and Im sure
it will slowly evolve, but I
can honestly tell you that
my students thoroughly
enjoyed the new confer-
ences experience. They also
recognized how much they
grew, both from the prepa-
ration before the confer-
ence, and all the wonderful
interactions at the confer-
ence. My returning SHRM
students are already looking
forward to this spring, and
the excitement in their eyes
when we discuss plans for
the 2012 conference says
it all.
Join us in attending
your regions 2012 Student
Conference, and rediscover
what is truly great about
these unique events. We
hope to see you there! SF
Damian Lonsdale is a College
Relations Advisor at the Uni-
versity of South Dakota.
Winter 2012 / SHRMStudent Focus 5
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6 SHRMStudent Focus / Winter 2012
STUDENT CHAPTER FOCUS
T
he students taught the professionals. Students
learned how to develop and present to a live audi-
ence while the professionals gained information.
Human resource professionals are typically responsible
for equal employment opportunity (EEO) and diversity
programs within their organizations. EEO is more compli-
ance driven and corrective action while diversity programs
focus on changing the culture and encouraging inclusion.
Diversity goes far beyond race, gender, religion, national
origin and other typical characteristics that quickly come to
mind. Diversity includes differences in thought, approach,
values and beliefs. One factor that can inuence such dif-
ferences is when an individual was born and what his or her
experiences have been. Yesgenerational differences.
The Cumberland County Student SHRM Chapter decid-
ed to develop a presentation about generational difference
and deliver it at a dinner meeting to the Human Resource
Association of Southern NJ (its sponsoring chapter). Several
student members of the club participated in researching
the topic and developing the program. The two key pre-
senters were Tiffany Corliss and Betsy Andrion.
Understanding and Managing Generational Differ-
ences at Work became a hit. The program was developed
around the following themes:
I. Dynamics of the Multigenerational Workplace
a. Generational Differences Various Perspectives
b. Introducing the Generations
c. An In-Depth Look at the Four Generations
II. Generations Working Together
a. Cases in Cross-Generational Difculty
b. Where Mixed Generations Work Well Together
c. Generations Communications and Motivation
III. Managing Cross-Generational Workers
a. Recruiting Multigenerational Workers
b. Orienting and Training Multigenerational Workers
Tiffany Corliss visits the Rotary Club. Left to right: Tiffany Corliss, secretary; Kristy Lacy, chapter
liaison; Carol Asselta, advisor; Betsy Andrion, second VP; and
John Knoop, advisor.
Chapter Discusses
Generational Differences
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Graduating soon? Youve taken a huge step toward your profes-
sional success! To reward your dedication, SHRM is offering you a
professional membership for only $80that's $100 off the regular
dues. But thats not all. Youll also receive the same discount for
your second year of membership.
Accept this gift within 60 days of your graduation and gain access
to the resources and tools that will help you meet your challenges
as a practitioner. Upgrade now or click here for more information.
Covert to
SHRM Professional
Membership for
Half the Investment
Winter 2012 / SHRMStudent Focus 7
The program was
composed of two segments.
The rst portion provided
knowledge on the impor-
tance to organizational
success of learning to work
positively with generational
differences. It provided in-
sight to the four generations
in the workplace, including
major inuences, core val-
ues, assets and liabilities on
the job, and messages that
motivate each group.
Once the audience
learned about the various
generations, the second
segment shared how to work
with generational differenc-
es when it comes to the ori-
enting, training and ongoing
development of employees.
Specics were explored
and the human resource
professionals contributed by
discussing what approaches
worked for them and which
approaches were more dif-
cult or concerning.
The initial objective was
to provide information on
Generation X and especially
Generation Y to HR profes-
sionals, most of whom are
Baby Boomers and early
Generation X. That goal was
accomplished. Students
on the other hand learned
that they have a need and
responsibility to also learn
to understand other gen-
erations, especially Baby
Boomers. In the workplace
it is everyones responsibil-
ity to explore the values,
beliefs, thoughts, processes
and approaches of others
regardless of what genera-
tion they belong to.
Members of HRA con-
gratulated the students on
the program. In fact, several
attendees expressed interest
in having them do an-
other presentation. Tiffany
Corliss took the program
on the road. She was asked
to present at a career event
at Cumberland County
College. The Vineland
Rotary also contacted her to
present the program to its
members at an event that
took place in late July.
Whats next? Well,
Tiffany is still in demand.
Members of the Rotary have
asked her to present to their
organizations. Maybe we
need to get her a book-
ing agent. Only kidding!
Stay tuned thoughthe
Cumberland County Stu-
dent Chapter may present
another program on Using
Technology.
SF
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8 SHRMStudent Focus / Winter 2012
By Scott Ferrin,
SPHR and
Robin Scott
CAREER FOCUS
O
n October 22,
2011, the Colorado
SHRM State Coun-
cil hosted its semiannual
University Relations event
at Colorado State Univer-
sitys Denver Learning
Center. Seventeen students,
representing ve different
university SHRM chapters
from around the state of
Colorado participated in the
workshop. The conference
was developed and run by
Liisa McPherson and Robin
Scott, the Colorado State
Council co-directors for
College Relations. Accord-
ing to Scott, We involved
the state council and local
chapters. They have been
instrumental in coordinat-
ing with the chapters and
providing nancial support
for the semiannual events.
The students all received
a gift backpack for attend-
ing. The State Council also
provided the students with
backpacks and other good-
ies that were left over from
the State Conference. We re-
ally couldnt do these events
without their support, she
said.
The focus of the Student
Professional Preparation
Workshop was to provide
students the tools they need
to be successful in todays
current business environ-
ment. How can the students
Cover Story
Great
Training
Through
a Student
Conference
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Winter 2012 / SHRMStudent Focus 9
differentiate themselves
from their peers when it
comes to interviewing
and nding that perfect
internship or rst job after
graduation?
The day started out with
brief overviews of SHRM
and the benets of becom-
ing a member from Scott
Ferrin, SPHR, eld services
director for the SWC Re-
gion, and Laurie McIntosh,
SPHR, director of Member
Engagement, from SHRM.
It was also mentioned how
important it is to become a
professional member after
graduation. They also high-
lighted the usability and
depth of the SHRM website
as well as the new partner-
ship with www.Internships
.com. In continuing with
the theme of SHRM mem-
bership and what doors it
can open, Ronda Gallup,
SPHR, Colorado State direc-
Students were advised to become a
professional member after gradua-
tion and to be aware of the usability
and depth of the SHRM website.
tor, spoke about the Colo-
rado State Council as well
as the local professional
chapters around the state.
Gallup said Hopefully well
generate some interest for
new additions to the State
Council. After all, network-
ing opportunities are one of
the best ways to meet new
people and get your foot in
the door.
The workshop contin-
ued with two guest speak-
ers and two interactive ses-
sions. Carlene Goldthwaite,
SPHR, and Sam Lloyd, MBA,
were the featured speakers
for the Student Conference.
They focused on differ-
ent skills, from preparing
yourself for interviews to
active listening once youve
landed the dream job or
internship. The interactive
portions of the day included
resume critiques and eleva-
tor speeches. Each session
lasted about an hour, and
there were lots of produc-
tive discussions. One stu-
dent even commented that
she had gotten more out of
the one SHRM event than in
an entire semester in one of
her classes.
There were 10 volun-
teers from around the state
who gave up part of their
Saturday to interact with
the students. These volun-
teers offered up advice and
knowledge on how to be
successful in an HR career.
In the end, each profession-
al worked with 2-3 students
in each interactive session,
and McPherson and Scott
made sure that the stu-
dents worked with as many
different professionals as
possible. The volunteers
represented various func-
tional backgrounds and in-
dustries. The Colorado State
Council and local profes-
sional SHRM chapters were
instrumental in helping to
solicit for volunteers. In the
end, the event was a success
and the free ow of infor-
mation between students
and HR professionals was a
hit. SF
3tudents who partioipated in the workshop representing tve different university 3PRM
chapters from around the state of Colorado.
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HRMagazine
10 SHRMStudent Focus / Winter 2012
CAREER FOCUS
The Society for Human Resource
Management (SHRM) is the worlds
largest association devoted to
human resource management.
The Society serves the needs of
HR professionals and advances
the interests of the HR profession.
Founded in 1948, SHRM has more
than 250,000 members in over
140 countries, and more than
575 aftliated ohapters. visit www.
shrm.org
Editors:
Laurie L. McIntosh, SPHR
Maureen Flaherty
Designer:
Mari Adams
2011 Society for Human
Resource Management
1800 Duke Street
Alexandria, VA 22314 USA
+1-800-283-7476 (U.S. only)
+1-703-548-3440 (Intl)
+1-703-548-6999 TTY/TDD
+1-703-535-6490 FAX
Internet:
www.shrm.org/students
E-mail:
Laurie.Mcintosh@shrm.org
Maureen.Flaherty@shrm.org
SHRM
FOCUS
Student
SHRM

Assurance of
Learning Assessment
For Graduates of HR Degree Programs
S
HRMs Assurance of Learning Assessment is the new universal benchmark*
for undergraduate- and graduate-level HR students. After passing the exam,
students receive a Certicate of Learning that states they have sufcient
knowledge to enter the human resources profession based on formal education studies
in an HR-related degree program.
Exam registration for the spring 2012 test window opens January 1, 2012: www.
shrm.org/assessment
Key points for students:
1. Most students take the exam in the nal year of their degree program.
2. The SHRM Preparation Guidebook serves as a study supplement to the degree pro-
gram and features a 160-question sample exam.
3. Students may purchase the Guidebook at www.shrm.org/assessmeng/guidebook
* The exam replaces the PHR for students because traditional students are no longer
eligible to take the PHR, according to the HR Certication Institutes eligibility require-
ments.
Visit www.shrm.org/assessment for general information on the
exam and the content areas covered.
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__
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_____________
Winter 2012 / SHRMStudent Focus 11
Should You Follow Up
with a Recruiter?
J
ob seekers often
feel conicted
when they dont
hear from a prospective
employer: should they
follow up after submitting
a resume, or will that be
perceived as pushy? A
new survey suggests theres
no reason to be timid.
In the survey, developed
by stafng rm Robert
Half International Inc. and
conducted by an indepen-
dent research rm, execu-
tives were asked, How long
should a job seeker wait to
follow up with the hiring
manager after submit-
ting a resume?
Eighty-two percent
responded that
job seekers should
contact hiring man-
agers within two weeks of
submitting application ma-
terials. Only 5 percent said
professionals should refrain
from communicating once
a resume has been sent.
Executives also were
asked, In your opinion,
what is the best way for a
job seeker to follow up with
a hiring manager after sub-
mitting a resume? The top
three responses were via e-
mail (38 percent), telephone
(33 percent) or handwritten
note (23 percent).
It often takes a mini-
mum of three to seven con-
tacts to get an employer to
consciously remember a job
applicant, says Linda Rolie,
president of Career Coun-
seling Services in
Ashland, Ore.
Before making
follow-up phone
calls, Rolie encourages
her clients to: Write and
practice a 10- to 20-second
scripted message. Begin by
asking the hiring manager
if he or she has a couple
of minutes to talk. Sound
upbeat and energetic as op-
posed to high-pitched and
nervous. Tailor the message
to the specic job.
Follow-up e-mails
should be brief and to the
point, says Rolie. She sug-
gests that applicants use
the job title and/or post-
ing number in the subject,
insert the name of the
individual in the message
and limit the message to
no more than two or three
short sentences.
Rolie suggests candidates
use one of the following
statements when following
up by phone or e-mail:
I was wondering if you
could tell me how the candi-
dacy selection is coming.
I was hoping you could
tell me about my standing
in the application process?
Can you tell me where
the company is in regard to
the hiring process for the
position?
I was wondering about
the status of the hiring pro-
cess for the (insert job title).
Leaving a brief phone
message is appropriate if
the hiring manager cannot
be reached, says Rolie. It
is acceptable to leave up to
about ve to seven voice
mail messages for which
your persistence may pay
off, Rolie says, but 15 mes-
sages is going too far.
Including the follow-
ing type of statement may
increase the likelihood of a
returned call, says Rolie: I
am available until 4 today
and 3 the rest of the week.
If you havent reached me,
Ill keep trying to reach you
until we can connect. Rolie
even suggests trying to reach
the hiring manager before or
after regular business hours.
Demonstrating per-
sistence, enthusiasm and
professionalism throughout
the application process is
essential. After all, How a
candidate interviews and
follows up is a reection of
how they will perform on
the job, says Rolie. SF
Rebecca R. Hastings, SPHR, is
online writer/editor for SHRM.
Reprinted with permission of
the Society for Human Resource
Management (www.shrm.org),
Alexandria, VA, publisher of HR
Magazine.
By Rebecca R.
Hastings, SPHR
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HRMagazine
12 SHRMStudent Focus / Winter 2012
Y
ou might have a
few words you
are not sure how
to spell or pronounce, and
maybe some phrases that
seem to confuse you, but
some of these words or
phrases might cost you a
job or your reputation in the
workplace. According to a
December 2010 survey of
employers by the National
Association of Colleges and
Employers, verbal commu-
nication skills top the list of
skills sought in new college
graduates seeking employ-
ment. When we say com-
munication skills, what
does that really mean?
Even if you think your
future career wont require
a lot of writing or speaking,
youll likely spend quite a
bit of time writing reports,
composing important
e-mail messages, making
presentations, conducting
training programs, making
simple conversation, speak-
CAREER FOCUS
W
a
t
c
h

Y
o
u
r
L
A
N
G
U
A
G
E
!
L
A
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G
U
A
G
E
!
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HRMagazine
Winter 2012 / SHRMStudent Focus 13
Com
m
only M
ispronounced W
ords
Supposedly (not supposably)
Escape (not excape)
Especially (not expecially)
Espresso (not expresso)
Regardless (not irregardless)
Realtor (real-tor not real-a-tor)
Often (of-fen, not OFT-en)
Alzheimers (not Old Timers or All Himers)
Height (not heighTH)
Hierarchy (higher-archy not hi-archy)
Sherbet (not sher-bert)
Ask (not axe)
Commonly Misspelled Words
Congratulations (not congradulations)
Denitely (not denately)
Accommodate (not acomodate)
Privilege (not priviledge)
Professional (not proffessional)
A lot (not allot or alot)
Liaison (not liason)
Frustrated (not ustrated)
Separate (not seperate)
Harass (one R)
Cemetery (no A)
Commonly Misused Phrases
Just between you and I (should be between
you and me.)
For all intensive purposes (should be for all
intents and purposes)
The reason is because (this is redundant. Say
The reason is)
I could care less (should be couldnt care)
It would of been nice (should be would have
or wouldve)
Different from (not than)
Less vs. Fewer (use less with mass nouns
such as clutter or traf c. Use fewer with
count nouns such as M&Ms or chairs)
People who vs. people that (for things, use
that; for people, use who)
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ing in meetings, and using
your communication skills
on a constant basis. Most of
the time, your communica-
tion and writing skills will
be the key to obtaining a
promotion or being taken
seriously in a job.
Unfortunately, however,
communication skills are
not only at the top of em-
ployers list of most-desired
skills, but also are the skills
they nd most lacking in
new college graduates. Many
employers have reported in
various surveys and stud-
ies that students have poor
grammar, spelling, writ-
ing and presentation skills.
In fact, students majoring
in subjects like English or
communication dont always
seem like good communica-
tors to employers, accord-
ing to a 2009 study of over
200 employers in Business
Communication Quarterly. A
quote from RobustWriting.
com: Using incorrect gram-
mar can give the impression
of carelessness, suggest a lack
of education, indicate poor
social skills, and even imply
low intelligence.
Many employers feel
that the cover letter and
thank-you letter are as im-
portant as or more impor-
tant than the resume. None,
of course, should have any
typographical or grammati-
cal errors. Kevin Kermes,
career advisor to high-level
executives, said, Every
C-level executive I work
with says the same thing.
They use the cover letter as
a barometer to gauge a can-
didates ability to effectively
communicate. This is an
ideal time to showcase your
written communication and
persuasion skills.
So, what are some of the
grammar, spelling and us-
age blunders that concern
employers? Check out these
lists to see if you are mak-
ing any of these mistakes:
H
>>
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14 SHRMStudent Focus / Winter 2012
Long list, huh? If you make any of these gram-
mar or spelling errors, take note! Additionally,
watch your speaking, since many people have the
bad habit of using like in every sentence. You
know, um and I mean are others to avoid.
Have a friend (like) listen (you know) to you speak
(um) and tell you if you (like) say these words a
lot (I mean). Become aware of it so that you wont
use them during an interview or in the workplace.
Some employers say that communication skills
are more valued than your choice of major. So, if
you have been putting off classes in English, public
speaking, or business writing, you might want to
register for those courses before graduation! SF
Other Commonly Misused Words
Apart (separate from) vs. a part (one piece of something)
Idea vs. ideal (you have an idea/thought vs. an ideal /perfect
version of something)
Familiar vs. similar (not pronounced simular)
Site (scope) vs. sight (see) vs. cite (to quote)
I feel bad vs. I feel badly bad is correct and badly would be
saying you lost your sense of touch
Ensure vs. insure (ensure = to be certain; insure = to provide
insurance)
Advice (a noun, meaning guidance) vs. advise (a verb, meaning
to offer advice)
Alter (to change) vs. altar (a shrine or part of a church)
Breath (a noun, air that is inhaled) vs. breathe (a verb, what you
do with your nose and lungs)
Compliment (to say something nice) vs. complement (to add to or
enhance)
Moral (the lesson learned or an ethical principle) vs. morale
(spirit or attitude)
Principle (doctrine or rule) vs. principal (main or primary)
Track (a set of classes or something you run on) vs. tract
(intestinal tract or tract of land)
@ means each apiece and not at unless you are writing an
e-mail address, do not use @ to mean at
capital (a city or a capital letter) vs. capitol (a building)
lose (to experience loss) vs. loose (not tight)
supposed to (use the D)
used to (use the D)
Do not put an apostrophe in a plural abbreviation, such as CDs,
CEOs, CPAs, SUVs, DVDs, 1980s
Time formats: use 8: 00 a.m.; not 8am, 8AM, etc. Use noon or
midnight for 12: 00
Piqued my interest, not peaked
Commonly Misused Words
Its vs. its (Its means It is; Its is possessive)
Your (belongs to you) vs. youre (a contraction for you are)
There (place), their (belongs to them), theyre (they are)
Moot vs. mute (moot = point not worth arguing and mute = silent)
Effect (a result) vs. affect (to in uence)
Appraised vs. apprised (you appraise value and keep apprised of situations)
Too vs. to (too = also and to = preposition) Stationary (still) vs. stationery (paper)
Grateful (full of gratitude) vs. greatful (not a word)
Lie vs. lay (people lie on a bed and objects are laid on a table)
Since vs. sense (since that time; sense of smell)
Then vs. than (after this, then that; better than the rest)
Further (in addition, also) vs. farther (distance)
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