Carnival of HR January Edition

Michael Moore, of Pennsylvania Labor and Employment Blog, has hosted the most recent edition of The Carnival of HR. Click on it to be taken to a stupendous, remarkable and educational set of HR blogs to help get you through these troubled times and weather the storm of difficulty we find ourselves in today. No, really, despite the hyperbole (which is rampant these days) these really are very good blog posts with a lot of great information. Find out for you self by clicking HERE.

Does Recession Equal Performance?

An article in the Career section of the WallStreetJournal Online, entitled It Can Be Done: Landing a Raise in the Recession, talks about what is needed for someone to get an increase in recessionary times. It is going to take understanding your company's position, understanding your accomplishments, being able to articulate those accomplishments, and most of all it is going to take being a top performer. Take a look at the article for their suggestions on how to handle the situation.

But it got me to thinking. Is this deep recession going to force companies to throw off "entitlement" cultures? Are the days of "everyone gets a raise just for still being here" finally going to be done? Will merit pay actually become based on merit? Perhaps. Companies do want to keep top-performers and top-performers are always in demand. It is much cheaper to reward a top-performer than it is to go hire a replacement for one that left.

So here are a couple thoughts I to which I would like your reaction.

From the individual employee perspective:

1. Do you know what it takes to be a top-performer in your organization? If you cannot articulate this you may not be one.


2. Can you show, on paper or spreadsheet, your accomplishments? Have they really contributed to the success of the organization? Much more than average? If no, then you probably aren't a top-performer.

From the Company perspective:

1. Do you know what it takes to define top performance? If no, then you are probably not a top-tier company.


2. Do you know who your top performers are? If not, you are likely to lose them.


3. If you can identify them, are you prepared to reward them in order to keep them? If not, then you are likely to lose them.


4. Do you understand the cost associated with losing a top performer? You should.

Now once the recession ends we may return to an "entitlement" mindset, especially if as a result of the EFCA, we have a greater level of unionism. But I hope not. I hope we truly learn the lesson of performance and merit that are being thrust on us by this recession.

What do you think?

Tidbits for the Middle of January

Listening to the radio this morning I picked up several tidbits of information for the day.

First, according to SHRM (yes they made the radio news) 5% of companies are taking tomorrow's inauguration day as a holiday. That is more than the number of companies that gave off election day.

Second, according to radio show host Clark Howard, over 51% of workers dread getting up and going to their job. They hate their work. His advice, quit and find something you look forward to rising to each morning. From an HR perspective look at your folks and realize half of them don't want to be there. What are you going to do about it?

Third, according to "experts" today is the most depressing day of the year and may be the most depressing day of the the decade. Reasons:

• Winter weather (well only in the northern hemisphere)


• Christmas credit woes


• Blown New Year's resolutions


• Job fears


• Mounting debt


• The economic crisis

Well this is not going to apply to everyone, so this is hyperbole, but it makes good news. It is sort of like your horoscope. If it applies it is amazing, if it doesn't you ignore it. Just realize that the 51% of your employees that hate being at work may feel this way.

Lessons for HR in the Geithner Confirmation Hearings

How many of you have paid attention to the lessons for HR in the Timothy Geithner confirmation hearings? Oops, I can hear you now "Who the heck is Timothy Geithner?" (A gold star to any who knows before they read the next sentence.) Timothy Geithner is Barak Obama's nominee to head the Treasury Department for the Obama administration. He has made headlines because he has made what his supporters call "honest mistakes." These "honest mistakes" are causing him and others some heartburn and everyone in HR should take a note because these are mistakes that would cause you some heartburn too.

What were his mistakes? He failed to pay self-employment taxes for period of time in which he was an independent contractor. Taxes to the tune of $34,000 plus. This HR lesson is to make sure you and anyone you have as a contractor understand the importance of properly paying taxes. If someone doesn't and they get hit with a big tax bill they may try to foist that reponsibility off on you the employer. If they can show that they were improperly classified as an IC then guess who gets to pay the bill, plus penalities? Here is a link to the IRS Independent Contractor Rules.

The second "honest mistake" he made was allowing an immigrant to work for him as a housekeeper without having the proper, up-to-date work permits. Geithner never completed and I-9, just wrote the document numbers down in a calendar and did not pay attention to the expiration dates. His housekeeper worked beyond the expiration date of her visa. So the lesson in this is to make sure you are aware of all the expiration dates of the visas of people you have working for you on a visa. It is simple to do, just put it in a calendar or a spreadsheet, if you don't have a HRIS that will track it.

Just wanted to show you that there are day-t0-day HR lessons for you in the news. Kris Dunn of The HR Capitalist often pulls his from the sports world. So read, pay attention, and go beyond just the words on the paper/screen.

BTW, here is a link to an article on Geithner if you are interested in reading more.

Now fess up! Who really knew who he was?

The photo credit is the Associated Press.

Senate Considers Pay Legislation That House Passed

The Paycheck Fairness Act and the Ledbetter Fair Pay Act, that were passed in the House of Representatives last week, are now being considered by the Senate. SHRM opposes these bills, which while well meaning are flawed in construction. Here is why SHRM opposes them.

SHRM opposes the following provisions of the Ledbetter Fair Pay Act:

Fundamentally changes statute of limitations—By making the time clock start over upon the issuance of each successive paycheck or retirement benefit, the Ledbetter bill would allow individuals to bring discrimination claims years or even decades after an alleged act of discrimination occurred. Employers would be liable for previous management decisions for which there may be no available witnesses or records.

Expands plaintiff field—The Ledbetter bill would allow not just an employee who was discriminated against, but other individuals who were “affected” by an act of pay discrimination to file claims. The legislation may allow family members, including spouses and children, and potentially others to become plaintiffs in suits over an employee’s pay—even after the employee was deceased.

SHRM opposes the following provisions of the Paycheck Fairness Act:

Ø Promotes class action lawsuits against employers—The Paycheck Fairness Act would require employees to “opt-out” of a gender discrimination class action, rather than the current law requirement that employees must give their written consent to join a class action. By automatically including all employees as part of a class, the bill would dramatically increase the number of plaintiffs in class actions.

Ø Exposes employers to unlimited damages—The Paycheck bill would create unlimited punitive damage awards for which employers would be liable, in addition to current liability for back pay. The potential for such penalties would likely compel employers to settle more wage discrimination claims, even in cases where no discrimination occurred.

Ø Restricts legitimate pay practices—The Paycheck bill would make it significantly more difficult for an HR professional to use legitimate factors, such as education, training, or experience, as a component of an organization’s pay system. Moreover, the legislation may altogether prohibit an employer’s use of local market rates and prior salary history in setting compensation.

So I hope this informs you as well. Inform your senators if you are so inclined. That is what SHRM is calling for in their letter campaign. I happen to know my two senators will be opposed, but yours may not. And if you don't know if yours will be then shame on you. And if you do not know who your senators are then hand in your voter registration card you don't deserve it. Also, don't call yourself an HR PRO, a PRO would know.

A Comparable Worth Discussion

Ann Bares, of Compensation Force, responded to a request from other HR pros and put on her blog a definition and discussion of the issue of comparable worth as presented in the current pay equity legislation. Take a look.

BTW, for all of you PHRs and SPHRs that will need to recertify this will probably be a future test question. So you may as well learn it now.

More On Paycheck Fairness: Still Beating 'Cause the Horse Isn't Dead

Here are two great links for people who are far more compentent to talk about the paycheck fairness legislation than am I. The first link is to Ann Bares, author of Compensation Force, who talks about Pay Legislation Leaps to Top of House Agenda: Interview with WorldatWork's Cara Welch. Ann Bares is a MUST read.

The second link is to Michael Moore's Pennsylvania Labor and Employment Blog where he writes about Record Retention Nightmare Created by Ledbetter Fair Pay Act . If you are a paper shuffler you will love this law. If not... whoa... what a potential nightmare! How about NEVER getting rid of ANY employee information? Eternal record retention.... do you have enough file cabinets?

So check out these two invaluable blog posts. Be informed.

HR Is Caught in a Whirlwind of Political Wrangling

The Democrat controlled 111th House of Representatives flexed it's muscles today. Nancy Pelosi et. al. changed the rules on how bills are dealt with in the House. As stated in this Washington Post article House rule changes squander good will "The spirit of bipartisan cooperation didn't survive the first day of the 111th Congress as House Democrats pushed through a package of rule changes Tuesday that the furious Republican minority said trampled their traditional rights to affect legislation." Well that is just politics you say, why should it matter to human resources? That reason is this change:"The most contentious rule change places new restrictions on motions to "recommit" a bill for new amendments to the committee that approved it. In practice, that motion often meant a lengthy or even permanent delay in passing the measure. Motions to recommit would still be possible, but the new rules allow the full House to reconsider the bill almost instantaneously." Ok, so what, how does that affect HR?

It affects HR in that it makes it almost impossible for Republican Representatives to have legislation they think is bad for the country reconsidered. And for many this includes the two pieces of legislation that are being acted on RIGHT NOW, AS IN JANUARY 7TH. These are the Lily Ledbetter Fair Pay Act and the Paycheck Fairness Act. Both of these may be noble in thought but are bad in execution. SHRM, The U.S. Chamber of Congress and other business associations are all lined up in opposition to these bills.

But this opposition, and the letter writing campaign SHRM called for may come too late. These bills are being pushed through the House as I write this and with the rules changes House opponents may have no opportunity to stop or have have the bills reconsidered. New Congressional Representatives are being asked to vote on something they have had no time to get educated on. (Of course, I believe most Representatives don't have a clue about how businesses operate anyway. Most have never had to make a payroll.)

The Ledbetter Fair Pay Act would effectively eliminate the uniform statue of limitations on pay discrimination claims and restart the time clock for filing such a charge with the EEOC upon the receipt of each successive paycheck. The bill would also re-start the time clock when a retiree receives an annuity check from an employer, and would thus keep employers liable to a discrimination claim potentially decades after an alleged act of misconduct. The legislation would amend the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Rehabilitation Act.

The Paycheck Fairness Act would limit an employer’s ability to justify paying different salaries to workers based in different locations with different costs of living. Second, the bill would lift the caps on compensatory or punitive damages for which employers would be liable, in addition to current liability for back pay. These damage penalties would apply to even unintentional pay disparities.

A third piece of legislation, the Employee Free Choice Act, may also soon be offered on the floor but opinions vary on its immediate chances of success. The other two are considered "low hanging fruit" (after all who is not for fairness?). Here are two articles that offer slightly different points of view on these issues. Workplace legislation coming to a head in Congress from the Kansas City Star and Labor Unions' Top Priority Faces Delay from the Wall Street Journal. Check them out. I would offer to send you to SHRM's website for information too... BUT THEY DON'T HAVE ANY VISIBLE! Yes they sent a letter to the membership but how about posting it for everyone to see?? I am gravely disappointed.

Don't be passive with this legislation. Inform you legislator of your opinion, either pro or con. I wrote about this, here, in reference to the election. The advice offered there still applies.

Job Hunting in the 21st Century

I was going to post about HR and using social media, since Twitter has been big in the news yesterday and today. But in reading Twitter this morning I came across this article, the link to which, was posted by Jim Stroud on Twitter. The article is entitled "7 Secrets to Getting Your Next Job Using Social Media" and points out the various segements of social media that you should be aware of and using. Since this focuses on job hunting pass it on to your friends who are looking or use it yourself if needed. Either way learn the lessons and become "savvy". It is important and will be even more so in the very near future.

E-Verify Just Can't Get Verification

E-Verify, the government program that all government contractors, with $100K or more, must use starting January 15th has been potentially stalled in the courts. According to an article in eWeek.com the Department of Homeland Security has been sued by the U.S. Chamber of Commerce and "...the Associated Builders and Contractors, the Society for Human Resources Management, the American Council on International Personnel and the HR Policy Association."

The article quotes Robin Conrad of the Chamber's Litigation Center as saying "The administration can't use an Executive Order to circumvent federal immigration and procurement laws. Federal law explicitly prohibits the secretary of Homeland Security from making E-Verify mandatory or from using it to re-authorize the existing workforce." The Chamber is hoping the suit will declare the new regulation null and void.

If you are a government contractor of at least $100,000 and 120 days and subcontracts of $3,000 stay tuned to this development, but be prepared to use E-Verify if you are not already.