Just In Case You Didn't the Feds Were Controlling Enough In HR

Before I start on my "rant" for the day I want to thank Stephanie R. Thomas for the post that is the inspiration for my post today. Her post, entitled The Men from NEPET Are Coming , appeared on the Compensation Cafe on August 20, 2010. In that post she pointed out a report from the government. This report, entitled National Equal Pay Enforcement Task Force (Stephanie's NEPET), is a document from the White House that discusses the cross agency efforts to get the Paycheck Fairness Act passed by increasing the amount of scrutiny paid to, and information gathered from, businesses in the United States. My post will summarize what I consider to be the "high points" (or low  points depending on your point of view) of this report. For a complete understanding of the what you will be facing you need to read the report and Stephanie's post in addition to what you are reading here. Just follow the links above.

In his campaign to be elected president and in the State of the Union address, Barak Obama made it clear that one of his goals was to erase pay inequities based on gender. Getting the Lilly Ledbetter Act passed was considered to be the first step. The report points out the next step "To implement President Obama’s pledge in the State of the Union address to crack down on violations of equal pay laws, the Administration has created the National Equal Pay Enforcement Task Force, bringing together the Equal Employment Opportunity Commission (“EEOC”), the Department of Justice (“DOJ”), the Department of Labor (“DOL”), and the Office of Personnel Management (“OPM”)"

The report says that there are five areas that need to be addressed. These include:

1. Three agencies of the government have jurisdiction over pay discrimination and they do not coordinate efforts enough;
2. They feel they don't have enough data on pay and gender. So they will develop methods to extract this information from all the employers in the US, especially federal contractors;
3. They think employees don't know enough about their rights. The implication being that if they did they would turn their employers in more often. Also, employers don't know their obligations under the law, so they are going to provide information. They will also be hiring and training more investigators in order to step up criminal prosecutions.
4. They have determined they are not as "clean as a hound's tooth" so they are going to make sure they are complying with the laws too. (What an origianl concept!)
5. They don't feel the existing laws, especially the Equal Pay Act, are sufficient to handle the situation. So doing what all governments are compeled to do, they want to pass a new law, the Paycheck Fairness Act.

Here is my interpretation of their solutions:

1. Make sure that all agencies responsible do a better job of coordinating with each other. Hire more investigators and ferret out instances of pay discrimination in whatever form. Especially make the Office of Federal Contract Compliance Programs (OFCCP) an agent of the EEOC in enforcing wage discrimination based on gender violations in federal contractors. Increase the focus of EEOC on wage discrimination. Remove restrictions on the OFCCP regarding audits, hire more investigators and prosecute more employers.
2. Increase the methods used to extract data on wages from employers. If you are a federal contractor the amount of information you will have to reveal will be increased substantially. The goal is to reveal companies in violation of the laws (pick one) and to prosecute them. Failure to provide such information will result in loss of contractor status. Since they do not have that hold over the private sector they will probably change the EEOC reporting requirements and will be looking for more information. (My prediction is that the minimum company size for reporting on the EEO-1 will be dropped below 100, probably to the 15 employee level)
3. Undertake a public education campaign in order to make it clearer to women why and how they can sue their employers for pay discrimination. They will educate employers on their obligations in order to remove "ignorance of the law" as any excuse. After hiring several hundred more investigators they will be trained to find cases to prosecute.
4. Clean up the Federal government, so businesses can't complain that the Federal government isn't following its own rules.
5. Working with unions, push and cajole members of Congress to pass the Paycheck Fairness Act, because, after all, that is what government is in the business to do, pass new legislation.

Ok I admit, if  you read the report, they probably didn't use the same language I did. I was taking some "poetic license". But it is clear that the intent is to get harder and tougher on businesses, ESPECIALLY FEDERAL CONTRACTORS. If you are a woman working in HR at a company where you are paid less than the men in HR, this may be a mixed blessing. You may get more money but jeeezzz look at the extra work you are going to have to do as a result of this effort.

And Stephanie... I think your title is probably incorrect. It will most likely be the WOMEN from NEPET Are Coming.

Four Blog Posts You Need To Read Immediately if You Are In HR

Here are four great blog posts with some terrific information that all HR pros need to read. The posts will speak for themselves. Good reading by some great bloggers.

Do you know? DOL to require “compliance plans” by Jon Hyman

On the Upsides & Downsides of Proactive Pay Audits by Ann Bares


The Real Reason for Exit Interviews by Sharlyn Lauby


How to lose a good employee in under five steps by April Dowling

HR Development: Making HR Better

Several blog posts in the last couple of days stimulated my thinking about talent, skills, job security and development of HR professionals. I recommend these three posts to you and then offer my own thoughts. These three great posts are:

1. Want to Build a Winning Foundation? Don't Forget HR Development by Kathy Rapp of hrQ, post at Fistful of Talent. She talks about the importance of making sure your HR people are being developed.
2. A Fundamental Shift in Talent Management: Will "Active Job Security" Replace "Passive Job Security"? by Ann Bares at Compensation Cafe. Ann talks about the balance beam that employers must walk in order to stimulate workers, make them realize that they have to engage in "active job security", yet keep them at the company. She contrasts this with "passive job security."
3. HR Should Get Out of the Talent Game by Paul Herbert at Fistful of Talent. Paul points out that "talent", which is the big item discussed in HR, is not the most important thing HR can focus on. Rather HR should focus on developing skills to best leverage the native talents that employees have.

So what deep thoughts have these three posts prompted in my little brain?  (I feel like the scarecrow ... 'If I only had a brain....')

• The changes in the economic situation in this country have prompted a change in the mind set of employees. No longer do they want opportunity, rather they are interested in job security. Unfortunately the "old days" are gone and the traditional "passive job security" is gone. Employers no longer let you stay "just because." You have to perform. And employees know that they have some responsibility for their "active job security" yet they feel unprepared to deal with it.
• Companies need to seize this opportunity and do a GREAT DEAL MORE skill development. Take the "talent" that has been recruited and spend time and money on making them better at what they do. Impressing on the employees that improving their "resumes" on an annual basis is the best way to engage in "active job security." "And they reason you want to stay with us, is because we provide you with the opportunity to constantly get better and more valuable." I am a big fan of Tom Peters' idea of improved resume as performance evaluation idea.
• To faciliate this skills improvement, and to deal with the ever-changing, topsy-turvy world that HR is today, we need to have better HR professionals. Yet few, very few, HR departments demand that their professionals get better. Sure they may offer some encouragement, such as tuition reimbursement or extra money if you get a PHR, but few actually require this kind of development. I teach PHR prep and over my 12 years of doing so, most attendees are there on a volunteer basis. Some get their money back if they pass. Some get more money if they pass. Some employers even arrange for a class to be taught especially for people in their organization. But even then attendance is voluntary.
• To me, the CEO of an organization should demand that his/her HR professionals be the best in the business. In an economy where most of the companies assets are the tied up in the brain power of the people working for the company, having an HR department that can handle this is of utmost importance. Thus HR at all levels needs to be developed, not on a voluntary basis, but as a requirement of continued employment. Don't want to learn and improve? Then leave and make room for someone that does!
• Not everyone can earn a PHR/SPHR. You have to hold an exempt position in HR to qualify. But that doesn't mean non-exempt HR should be ignored. Classes can, and should, be structured to give EVERYONE IN HR, a learning experience to make them the best. All professional, exempt level, HR should be required to achieve the PHR or SPHR designation. Beyond that,  if there are other professional designations that can be earned, such as CEBS, then these should be required as well. The good news is that if for some reason you are ever let go, you are much more employeable as a result of this training.

I know this is pretty intense. But if an organization is truly committed to having the best HR pros, in order to have the best employees then this is the kind of committment needed. I have not yet run across any companies yet with this kind of committment to HR.

Do you kow of any? Wish to profile your company's committment to professional HR?

End of the Week Reading: Great Stuff from Great Blogs

I missed the Carnival of HR this time. (Need to do something about that darn calendar.) There are some very good posts there. Here is the link Carnival of HR. This is one is hosted by Rowan Manahan.

Additionally, here are several posts that I recommend you read.

1. Fran Melmed wrote an excellent piece called "We Don't Need No Stinking Diversity Training." It is so good it got picked up by NPR. She prompted me to write my piece on Removing the Ethnicity from your name.
2. Kris Dunn wrote some required reading for anyone considering committees called Are Committees in Your Company Ever a Good Idea? If this one does not make you think twice, then reread it.
3. Becky Regan, compensation pro extrodinaire, offers her 2010 predictions in The Compensation Cafe. "Top 4" Total Rewards Predictions for 2010  See if you agree.
4. Wally Bock, of Three Star Leadership, blasts Notre Dame and Brian Kelly for the very poor example of leadership they exhibited in Values, schmalues, there is money at stake.
5. And Ann Bares of Compensation Force writes on Throwing in the Towel: Are Employers Resigned to Impending Departures?

That is probably enough reading for the end of the week. But believe me, you will be better off for it. Have a great weekend.

Five Great Reads in Human Resources Blogs This Week

I have done some reading today and I am passing on to you five blogs that I think are important reads. What a great guy I am. (Said blushing... well not really) This is not to say that there are not at least another 100 good blog posts out there to read, there are. But if you read these you will be a bit more educated on some important subjects.

1. First up is Ann Bares at Compensation Cafe. She wrote Managers: The Next Critical Shortage. If you did not have a compelling reason to work on development programs and incentive programs you will now.


2. Secondly is Kris Dunn at The HR Capitalist. He wrote Here's Why Companies That Have Used Card Check In The Past Are Silent These Days... This is an update on the Employee Free Choice Act (EFCA) and why companies that have used card check in the past are NOT singing its praises. Great info from someone who has been there.


3. Eva Rykr, of iOrgPsych writes about The Case for Analytics in HR. She says analytics is more than just measurement. And in this day and age of making a contribution to the organization (so both it and you survive) this is an essential understanding to have. A KEY HR SKILL.


4. Another KEY HR SKILL is giving presentations. Steve Tobak writes on How to Give a Killer Online Presentation. Well the advice works for in person presentations as well.


5. Lastly, but not the least, Jon Hyman tells a personal story that should be very instructive to people about NOT USING COPYRIGHTED MATERIAL in A short rant, and a lesson in employee appreciation. Jon has his taken and he did not take to it kindly, even though the "thief" thought they were doing him a favor. He even throws in a bit of HR wisdom.

Well there you have it. Great reading, great lessons. As always, keep reading HR Observations and pass it on to your friends and colleagues. And BTW, if you know of organizations that are looking for consulting work in human resources I have a great team put together. (Hey it is the first commercial I have ever done.)

Trust: Keystone of Relationships

I am reading up on the use of social media in marketing and PR. One of the books I am reading is Social Media Marketing: An Hour a Day by Dave Evans. In the book Evans starts the entire discussion on the topic of TRUST. He is talking about whether consumers will trust your message. That got me to thinking about trust and what a foundation it is for most everything we do in relationships. Whether it is through social media, regular media, books, TV or whatever form you choose. Walter Chronkite just passed away and in the many accolades showered on him was the phrase "The most trusted man in America." We (those of us that ever saw him on TV) trusted that what he was reporting was the truth. People who violate the trust we put in them suffer for it. Witness Dan Rather.

We all know the importance of trust in our personal relations. Violations of that trust cause alot of emotional hurt and fuel an entire industry of divorse lawyers. Violations of trust estrange friends, and children, and parents and spouses. Trust can be regained but it takes alot more work to do so than would have been necessary to keep it in the first place.

Trust is also equally important in the workplace. It is the keystone to working relationships as much as it is in personal relationships. You have to trust that your supplier will deliver, that your customer will buy, that your employees will work faithfully and that your boss will support you the way that was promised. Becky Regan, writing for the Compensation Cafe wrote a post entitled Build Employee Trust By Treating Employees Fairly, Not Equally. It is an excellent post on how important trust is in a working relationship and how that trust is built through fairness rather than equality. She points out the errors many managers make by using the misguided principle that equality equals fairness. It doesn't. We all work at different paces, with different efforts and different results. We don't necessarily deserve, because we have not earned, the same outcomes. This is explained by Adam's Equity Theory (click for an explanation).

So how can you become a better manager using fairness to build trust? I would suggest you read Regan's blog post by clicking the link above. It is very instructive and it is well written so I figured you should enjoy it personally rather than hear it from me.