Who am I? That’s an easy question.

 

My name is Sue McMillen and I’m the VP of Professional Services for Achievant, a human capital management software company focused on serving banks and credit unions. I wasn’t always in technology, but I’ve always been in HR. Prior to joining the team at Achievant in 2006, I was the SVP of HR for Union Federal Bank (gobbled up by Sky Bank and then Huntington Bank, based on which round of consolidation you are referring to), an HR Manager for Golden Rule Insurance and Equity Group Investments in Chicago. I’ve always done the “corporate HR thing” and I can say that I never thought I join an HR technology firm.

 

So at this point you are probably wondering why I crossed over from the corporate HR world to the vendor world. Well, as an HR veteran I was tired of multiple systems that didn’t talk to each other (benefits, payroll, time/attendance, ap tracking), vendors who I never heard from after the sale, systems that were shells that I had to populate and customize in my spare time, and generic HR applications that were supposed to be ideal for a bank as well as a donut shop.  

Following the mantra of “See a Need, Fill a Need”, I joined a start-up HR technology firm that would:

·        Specialize in banks and credit unions (although bankers like donuts, there is a difference in their business model)

·        Offer an integrated system

·        Provide customer service that is unparalleled - I actually talk weekly (daily if they’d like) to my customers after the sale is made.

·        Deliver a system that is actually ready to use when you “go live”.

 

As an HR pro, I am most interested in the intersection of the HR practice, technology and business results in today’s organizations. I have a strong interest in areas like employee training, talent management, HR software, and performance management, but keep an eye toward best practices in all areas of HR.

 

I started this blog with the goal of offering insight on these best practices, building a forum where HR practioners could discuss these and occasionally pitch Achievant services. I hope you will read my blog on a regular basis. If you are interested in contacting me, please e-mail me at smcmillen@achievant.com.

The OFCCP has quietly adopted a new "tipping point test" to determine whether federal contractors might have pay practices that discriminate.  The OFCCP provided no official announcement of this new test, but in the first quarter of 2008 audit letters went out to contractors requesting 12 additional pieces of workforce information from companies who failed. 

If you fail the "tipping point test", the OFCCP will also request: 

1. Employees' identification numbers
2. Gender
3. Race or ethnicity
4. Date of hire
5. Dates in the position
6. Birth date
7. Current pay rate
8. Status - part time/full time
9. FLSA status - exempt/non-exempt
10. Job title
11. Salary grade
12. Employees' location

Here's how the test works - Pay data is reviewed to determine if: 

• there are average pay differences of at least 5% (previously this had been 2%) between gender or race groups within the same pay division and these differences affect at least 30 females or minorities negatively
• the number of females or minorities that fall into the negatively affected pay divisions make up at least 10% (previously was 30%) of the entire workforce for that gender or racial group.
• the percentage of the female or minority workforce in the affected pay divisions is at least three times as large as the percentage of males or non-minorities in pay divisions where the males or non-minorities are affected negatively. 

You will probably want to perform the "tipping point test" yourself as you are preparing your affirmative action plan.  You should know if you'd pass or fail before the OFCCP asks the same question.  If you don't pass the test, be prepared to explain why (e.g., employees' education or experience) or fix the underlying issues.   

Don't forget that the EEO-1 Report, formally known as the Employer Information Report, must be filed by next Tuesday, September 30th.  This report is the means by which employers provide the federal government with a count of their workforce by ethnicity, race and gender, divided into specified job categories. 

This will be the second year using the new race and ethnicity categories which were introduced for the reports due in 2007.  Last year, employers weren't required to resurvey employees using the new race and ethnic categories before filing their report; however, many followed the EEOC's recommendation that they resurvey as soon as possible.  As a reminder, the EEOC's preferred method of collecting this data is through self-identification by employees versus visual identification by employers. 

The new report still requires that you use employment data from any pay period between July and September.  Private employers with 100 or more employees and federal contractors with government contracts of $50,000 or more and 50 or more employees are required by the Equal Employment Opportunity Commission to file an EEO-1 Report. 

Many human resource software systems, such as Achievant's, can assist you in streamlining the preparation of these required reports.  Core HRIS systems capture this demographic data.  If you aren't currently using one, please contact me and I'd love to share with you what Achievant is doing.

The US House of Representatives passed the ADA Amendments Act of 2008 on September 17th by a voice vote following the Senate's passage of the bill.  President Bush is expected to sign it into law any day now.  This Act provides some of the most sweeping changes to federal employment law in more than a decade. 

Here are some of the highlights (the who, what, when) of the bill. 


When Do the Amendments Go Into Effect?  
January 1, 2009

Who Do They Affect? 
Employers previously covered by the ADA (15+ employees).

How is a Disability Now Defined? 
The Act provides employers a broad standard that they must adopt to determine if someone is "disabled".   Consequently, I would expect more employees are going to be covered by the ADA and you should make employment decisions with that assumption in mind.

How is a "Major Life Activity" Now Defined?
Previously the ADA was silent on this definition, but the amendments provide a laundry list of activities such as eating, working, thinking, etc. which will now be considered major life activities.  Also, the operation of any major bodily function is considered a major life activity. 

How is "Regarded As" Addressed? 
An individual must now only show that the employer perceived the individual as having a mental or physical impairment, not that the impairment substantially limits a major life activity.  However, if the impairment lasts for six months or less and is minor, it doesn't qualify. 

What Now?
I believe that this bill will make it easier for workers to prove discrimination.  It will loosen some of the stringent standards set by the courts that require a disability to be "construed broadly" and will cover more physical and mental impairments.  I believe that we will see a shift away from threshold issues (does the person meet the standards to be considered "disabled") to liability issues.  Employers will need to defend against these like any other employment action (i.e., show that the employer had a legitimate, non-discriminatory reason for its decision). 

SnagAJob.com has recently coined a new tern - "new collar" workers.  These are employees ages 18 to 29 who are content as hourly workers and see themselves as staying put in hourly jobs for the rest of their career or in other words, career hourly employees. 

A SnagAJob survey conducted in May/June 2008 reports that:

• 48% who don't have a college degree expect to be a career hourly worker, 30% expect to be salaried.
• 25% of those with college degrees are career hourly workers, 62% expect to be salaried. 

The Top 5 "New Collar" Industries are:

1. Retail - 18%
2. Service/Customer Service - 16%
3. Health  Care - 16%
4. Office/Business - 10%
5. Restaurant/Food Service - 8%

The Bureau of Labor Statistics reports that 59% of US workers are paid by the hour.  The take-away for employers might be.....a paradigm shift that hourly employees should be viewed as potential long-term employees.  When asked what was the best thing about their job, this group valued...

1. Co-workers
2. Pay/Benefits/Interacting with customers (in a 3-way tie)

Compared to other generations, this is a very different value system.

 

 

On November 4, Ohio will vote on an initiative which could make it the first state to require employers to provide paid sick leave.  The Healthy Families Act would require employers with 25 or more employees to guarantee full-time workers at least seven days of paid sick leave each year.  This time could be used for their own illness or to care for a sick member.  Part-time employees would receive a prorated portion. 

What's unique about this is it is the first effort nationwide to take this initiative directly to the voters after state legislatures failed to pass it.  Employers strongly oppose the legislation saying it would drive jobs away and depress wages and benefits.  In addition, they argue that it was be administratively difficult to deal with - it calculates in 15 minute increments, doesn't define what constitutes a legitimate sick day for mental health, doesn't require a doctor's note and makes no provision for employers who already offer sick leave.  Advocates say paid sick leave would reduce costs by allowing workers to stay home to recover instead of spreading it to coworkers. 

I was astonished to learn that the Bureau of Labor Statistics says 43% of employees in the the private sector do not have paid sick leave.  Wow!  At least 11 other states are considering similar bills at this time.  This will be interesting legislation to watch. 

You know how sometimes you just know that something has to be true?  You don't have a solid reason for why...just a gut feel.  Believe it or not, those things happen in HR all the time.  We sometimes find ourselves thinking "I'm sure there is a law about that", and most certainly we in HR have a form for it! 

Well, that happened to me the other day.  I was helping a client who mentioned that they don't track their nonexempt employees start and stop times throughout the day, only total hours worked that day.  Now my gut told me that wasn't right.  After all companies spend thousands of dollars on time and attendance software solutions that tracks punches, round minutes, etc.  Today time and attendance software ranges from high tech using biometrics to swipe cards, to web based time sheets.  Seems like if you could get by without all the detail, wouldn't more companies do it? 

I had to know.  OK, so I'm one of those people that the moniker "inquiring minds want to know" aptly describes.  So here is my journey:

My first stop on my quest to learn more was to look it up on the Internet.  Isn't that our answer to everything these days?  The DOL had what looked like a promising section titled "Hours Worked - Reporting and Recording.  But it was a little vague for my liking.  It stated that the FLSA requires employers track "time and day of the week when employee's workweek begins.  Hours worked each day and total hours worked each workweek".  I wanted to know more specifics. 

So, my second step was to email the US Department of Labor - Wage & Hour division for clarification.  I received a response within 48 hours, but again it was a response, not an answer.  They advised me that the office best suited to answer my question regarding time keeping requirements is the Indianapolis IN District Office and they can be reached at 317-226-6801. 

I admit it, I was initially dismayed to find out that an answering machine answers their phone.  Although I was invited to leave a message, I had no expectation of ever hearing from them again.  Well, I almost fell off my chair when a DOL rep returned my call within the hour.  She was friendly and personable and had an actual answer, not just a response.  
  
It turns out you are not required to track starting and stopping times!  Who knew?  Obviously there are times when the starting and stopping times are important, (i.e., tardiness issues, documentation of hours worked by minors, etc.) but other times it may not be needed.  In fact, it may be just the thing to show the company's support of flexible work schedules. 

It just goes to show, we never stop learning. 

It's an HR person's worst fear.  If we haven't done it at some point in our career we've certainly had nightmares about it...distributing confidential information to the masses.  In the high tech world we work in, the chances of this happening increases exponentially.  We've all had experiences where we replied to an email commenting on someone without noticing they are cc'd, had multiple IM's up and replied to one thinking you were replying to another one, left something on the copier, etc. 

I read an article the other day about this very thing.  Carat, a media agency, was planning a major restructuring of its US operations, which of course included layoffs.  The Chief People Officer (CPO) intended to send an email to senior managers outlining this course of action and accidentally sent it to the entire company.  YIKES!!  The communication reported the agency's planned "messaging" for the staff and even included a PowerPoint presentation. 

What next, the CPO did what we'd all do...call IT to try to get it back.  But, that's like trying to put the genie back into the bottle.  By then, it had been opened, read, and forwarded on.  As an ad agency, their tie to the various media outlets is tight and it was probably only minutes before the story was leaked. 

It is yet to be seen what the repercussions will be for the CPO...warning, demotion, termination?  Is was an accident, but as the senior manager they should be accountable.  What do you think?

I read an interesting article the other day about an "outside the box" financial education joint venture.  Finance Center Federal Credit Union (FCFCU) and Warren Central High School/Walker Career Center, opened a student run credit union inside the career center.  The goal is to teach students about money management.  This is the second one of these for FCFCU.  They opened one in 2007 at the J. Everett Light Center in the MSD of Washington Township.   

This summer students began working at the Walker site.  The benefits are two-fold: 

1. the students obtain real work experience
2. the students expand their financial literacy

Students in grades 11 and 12 who are enrolled in the Finance Academy will be required to work in the center.  Both students and teachers will be able to bank at the center. 

I was fortunate to attend several excellent presentations at the Indiana SHRM Conference.  One of my favorites was "Learning from the Mistakes of Others - Aligning Your Strategy with New Metrics" by Karl Ahlrichs.  Karl presented a new spin on how we typically think of metrics.  He reminded us that although metrics are typically rear windshield (i.e., trailing), they can also be front windshield (i.e., leading).  For example, turnover is a rear windshield metric....they've already left.  Engagement is a front windshield metric...they're still here. 

Forward looking metrics are situational to your business.  The goal of human capital metrics is to provide meaningful correlations that help predict behavior and human capital investment demands well ahead of the annual budget.  Consider looking at metrics differently.  Perhaps instead of measuring turnover rate, consider turnover quality, training payback versus training cost, etc.  Turnover quality - bifurcate the ones you wish you'd kept and examine why are they leaving. 

The metrics you use should look objectively at the data and you should not color the analysis with preconceived notions.  You must build a feedback loop to adjust, then re-test, adjust, and so on. 

Karl was an excellent speaker.  If you have an opportunity to attend one of his sessions I encourage you to do so. 

Over the last couple of days, I have been out of the office attending the Indiana SHRM conference.  I hope that you had a chance to attend too. 

On Tuesday, I spent most of my day "manning" the Achievant display at the Expo.  What a great opportunity to meet potential clients and share with them our system capabilities in the areas of performance management, time and attendance solutions, learning management, as well as a core HRIS system.  In addition, many of our current clients stopped by just to say "hi"!

Over 1,000 HR professionals attended this year.  Achievant and HR Dimensions provided the grand prize drawing, a laptop computer.  I was able to attend a number of sessions and will be blogging about them over the next few days.     

Yes, the government is introducing yet another new form, the VETS-100A.  Large federal contractors will begin using the form September 30, 2009.  However, they should start collecting data for the new VETS-100A Report Form now or they won’t have the necessary 12 months of data to report.

Currently federal contractors with government contracts of $100,000 or more that were entered into or modified on or after December 1, 2003, are required to file the VETS-100 Report by September 30 of each year with the U.S. Department of Labor (DOL), as are federal contractors with unmodified government contracts of $25,000 or more that were entered into prior to December 1, 2003.

But in 2009, federal contractors will have to file the VETS-100A Report for government contracts of $100,000 or more that were entered into or modified on or after December 1, 2003, as well as the VETS-100 Report for any unmodified government contracts of $25,000 or more that were entered into prior to December 1, 2003.

In a May 19, 2008 final rule on reporting requirements, the DOL Veterans Employment and Training Service announced that the new VETS-100A Report would not have to be filed until September 30, 2009, but added that contractors are to collect and maintain the data for the new report in 2008. The DOL noted that the VETS-100A Report calls for contractors to provide data on veterans’ employment for 12 months ending on a date in the report year between July 1 and August 31 that represents the end of a payroll period, as is the case for the VETS-100 Report.

The job categories on VETS-100 and VETS-100A differ slightly because VETS-100A incorporates changes that the Jobs for Veterans Act (JVA) of 2002 made to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA), the law requiring certain federal contractors to engage in affirmative action for certain veterans.

You will want to determine the size of your federal contract in order to determine which form(s) to complete in 2009.

August 25 – 27th will be the 2008 Indiana State Human Resources Conference.  This year’s conference is being held at the Westin Hotel in Indianapolis.  Achievant is excited to be an exhibitor at the event as well as partnering with HR Dimensions to provide the prize for the Grand Prize Drawing.

I can’t wait to meet and mingle with over 1,000 HR professionals from all over the state as well as visit the booths of the other hundred exhibitors.  If you are attending I hope you will stop by our tradeshow booth in order to see a demo of our products for the first time, meet with a sales rep, ask questions, or just to say hello to me in one of the sessions.

If you’d like to attend the conference but haven’t registered yet or you’d like to learn more about the conference, here is a link - http://www.indianashrm.org/INSHRMconferencegrid.htm.  Personally I am looking forward to hearing several of the speakers including the session on Updating Your Compensation Programs by Debi Mueller, Vice President-Consulting at HR Dimensions. This session addresses best practices in compensation and explores the links to business strategies that will be needed to ensure alignment to productivity and pay for performance. I plan to pick up a couple more recertification credits to complete my SPHR renewal.

Simon Bailey will be the keynote speaker on Tuesday.  His topic will be Releasing Brilliance and will inspire us to take charge of and transform our lives from the inside out.  Clint Swindall will be doing the closing keynote on Engaged Leadership and will focus on leadership enhancement.

It should be a great conference with rich content and ample time to visit the trade show floor.

See you there!

In recent weeks, much focus has been placed on the classification (or misclassification) of workers as “independent contractors" versus “employees”.   The federal government is working to ensure that you are not trying to avoid overtime pay, unemployment compensation, payroll taxes and employment-related rights and benefits by claiming they are independent contractors.

Even individual states are taking action.  California (gee… who out there is surprised that CA would be one of the first states to jump on the band-wagon) has recently sent "employment relationship" questionnaires to "independent contractors" to ensure that those individuals should not be classified as employees.

In May 2008, the U.S. House of Representatives introduced the Employee Misclassification Prevention Act (H.R. 6111). As its name suggests, this legislation targets employers who misclassify their employees as "independent contractors."  If passed, this legislation would make the misclassification of employees a prohibited act under the Fair Labor Standards Act and increase penalties under the FLSA. The legislation would also require employers to keep records regarding their classification of workers, notify workers of their classification, and allow them to challenge that classification. In addition, the proposed legislation would require state unemployment insurance agencies to conduct audits to determine which employers are misclassifying their employees.  It would also authorize the Department of Labor (DOL) and the Internal Revenue Service to share information on instances of misclassification, and mandate that the DOL perform audits focusing on industries that frequently misclassify employees.

In light of the increased scrutiny on independent contractor relationships, employers should conduct internal audits to ensure they have properly classified their independent contractors and to effectively address any misclassifications.

The U.S. Department of Labor (DOL) released an opinion letter on July 29, 2008 clarifying that an employer is required to compensate an employee for all the hours worked, even if that includes time worked in violation of company policy such as through a required meal break.  The company at the heart of this issue had a Break and Meal Policy which stated that “All employees working six or more hours in a shift must receive a 30-minute, uninterrupted, and unpaid meal period. The meal period requirements cannot be waived by the employee nor substituted for any other time.”

The policy also provided that “there may be instances when, because of staffing or workloads, a meal period may not be available to all staff members. If any nonexempt employee does not take a meal period as required by the New York State Department of Labor, that employee should notify his or her manager and note this on the time card so he or she will be compensated for the time.”

The employer asked the DOL for its opinion on whether additional straight time (i.e., not overtime) would be due when an employee violates company policy by skipping a meal break and failing to notify the manager that the break was missed. The employer also asked the DOL to assume that the worker had worked less than 40 hours in the workweek and that the minimum wage still would be received, even if the employer did not pay additional straight time.

The DOL stated that the employer “must compensate the employee for all hours worked, including the time worked during the missed meal period,” though it went on to note that if an employee receives at least the minimum wage for all hours worked, including the time worked because of a missed meal period, no additional compensation is due under the Fair Labor Standards Act (FLSA). But the DOL reminded that FLSA regulations require accurate recordkeeping of hours worked each workday, as well as total hours worked each workweek for covered and nonexempt employees.

And, the DOL added, the time worked through the missed meal period would be hours worked for purposes of determining any overtime compensation. “Before an employee can be said to be paid statutory overtime compensation due, the employee must first be paid all straight time wages due for all hours worked under any express or implied contract or under an applicable statute,” the DOL stated.

The employer also asked the DOL to suppose an employee instead violates a policy prohibiting all forms of off-the-clock work. Even though the employee is scheduled to work 35 hours per week, the worker begins work early or works after the regular finishing time. Would additional straight time be due then?

The employee must be paid for all hours worked at the agreed rate in addition to any overtime for all hours over 40, the DOL answered.

What if the employer advised the employee in writing not to ever work any unrecorded work hours and the employee who violated this policy was subject to disciplinary action, the employer inquired. Would the DOL’s answer be different then?

The DOL said it did not have enough information to answer this question, but referred to FLSA regulations to remind the employer that “it is the duty of the management to exercise its control and see that the work is not performed if it does not want it to be performed. It cannot sit back and accept the benefits without compensating for them. The mere promulgation of a rule against such work is not enough”.

I was recently helping a friend sort through resumes responding to an ad she had placed and came upon a realization.  No one …. ok very few people….. do cover letters anymore.  I must admit that I have a prejudice toward candidate who take the time to write a cover letter.

I find them valuable for several reasons.  They provide an opportunity to assess:

• grammar proficiency
• writing style
• attention to detail, are there typos?
• ability to formulate thoughts into words in a coherent fashion.

In a recent Office Team survey, 86 percent of hiring managers say cover letters provide valuable insight when evaluating candidates.   However, the prevalence of online job sites has job seekers responding to email addresses with a few sentences of introduction.  I think that job seekers would do well to include an old-fashioned cover letter, personalized to the extent possible.

Candidates should make sure that their cover letter is devoid of the typical errors –

• Addressing the letter Dear Sir -  As a female hiring manager I have received far too many Dear Sir letters.
• Referencing the incorrect job – When recruiting for multiple jobs, if you don’t know what job you are applying for then how should I?
• Failing to include an attachment – If you are asked to provide salary history, cover letter, salary expectations, resume, etc.  Do it!  It is not a suggestion, it can eliminate you from consideration.  If you can’t follow instructions during the hiring process I am not optimistic that you will follow instructions as an employee. 
• Cute email addresses – Don’t list “cute” emails on your resume.  PartyGirl, BabyFace, Loverboy, may be great for friends, but not for obtaining employment. 
• Providing unnecessary personal information – I want to hire you, not be friends with you.  I do not care what your hobbies are and certainly don’t tell me about your children, their ages, what your spouse does for a living, etc.

The job market is tough, use every opportunity to tell why you are the ideal candidate and differentiate yourself from the hundreds of other people applying for the job.

I was reading the other day that a Tyson plant in Tennessee has decided to offer the Muslim holiday Eid al-Fitr, which marks the end of Ramadan, as a paid holiday instead of Labor Day.  Almost 700 of the plant's 1,200 employees are Muslim.

Somehow, I think this is going to be a heated topic of discussion. 

MSNBC recently reported that workers at the Tyson Foods poultry processing plant in Shelbyville will no longer have a paid day off on Labor Day but will instead be granted the Muslim holiday Eid al-Fitr.  According to a news release from the Retail, Wholesale and Department Store Union, a new five-year contract at the plant included the change to accommodate Muslim workers at the plant.

Eid al-Fitr, which falls on Oct. 1 this year, marks the end of Ramadan, the Muslim holy month of fasting.  Union leaders said implementing the holiday was important for the nearly 700 Muslims, many of them Somalis, who work at the plant that employs a total of 1,200 people.

Tyson company spokeswoman Libby Lawson said by phone that, "This isn't a religious accommodation, this is a contractual agreement. The majority asked for it."   The change didn't bother some workers, but others strongly opposed it.

Thinking out loud….this touches on many issues that people feel very strongly about such as American patriotism, religion freedom, days off, etc.  For most companies, offering the standard days off of New Years, July 4th, Memorial Day, Labor Day, Thanksgiving and Christmas satisfies the majority.  When that doesn’t make sense due to a multi-cultural environment I suggest shifting the balance of fixed versus floating holidays to accommodate the workforce.  A greater portion of the holidays being floating holidays offers employees the flexibility to identify the days that are most important to them to be away from work.

I live in a house full of guys and it seems like we live sports 24/7.  In that light, I find myself using those teachable moments to point out to them that the “sports world” is not like the “real world”.  I mean where else can you make an incredible salary, not be held accountable for your actions, and be uneducated and successful all at the same time.  But from time to time there is a sports story that mimics life for the rest of us.

Currently that is the Bret Favre story.  I think this story is fascinating to watch from an HR perspective.  Here you have a nice guy working for your company for a very long time.  He’s a great employee and you’ve got an employment agreement to keep him with you.  For several years he has been openly talking about retiring in the near future.  Finally he decides that this is the time to make that change.  You hate to see him go, but you understand and are even happy for him.  So, you send him off with a great good-bye party.

Then as an organization you set about rolling out the succession plan that you’ve had in place.  So, you replace him and move on as an organization.  Then, he decides that he misses working for you and wants to come back to his old job.  You tell him that you’ve already replaced the top spot, but he can have the number two position.  He is not content with that and asks to be released from his employment agreement so he can go work for your direct competitor.  He doesn’t like that and goes to the local paper or industry trade magazine and gives an interview saying that he doesn’t feel welcome back at his old company and that because of his years of service, he should simply be released.

 What do you do?

Favre is a legend.  The Packer's management is taking a beating in the media about its handling of his request to return.  It's a talent management nightmare.  At this point, it seems the Packers have chosen to take the do nothing approach.  They don’t seem to be in any hurry to release or trade Favre.  In the meantime, they seem set to continue the process of rolling out the succession plan they have in place.

What's your position?  Should the Packers take him back as the starting quarterback?  Should the Packers continue the succession plan they began when Favre retired a few months ago?

I'm siding with the Packers in moving on, here are my reasons why:

    1. Football is a business – There is no disputing that both the Packer fans and up until this point the management absolutely love Favre.  But that being said, we must remember that football is a business.  So, it would be a poor business decision to release him to a competitor without getting something in return. Remember, along with the benefits of being a contracted employee, there are also some down-sides (i.e., management decides when you play, where, and if you will play). He in essence has a non-compete.

   2. Once you cross that bridge – My experience has been that counter-offers and allowing employees to rescind their resignation are only temporary fixes.  Typically whatever factor made them vulnerable in the first place is still there and in the not too distant future will reappear.  As a side note, no one wants to continually hear that you are thinking about leaving the organization.  Keep it to yourself until you are ready to make the move.    

   3. Don’t make it public - When the Packers didn't rush to reinstate Favre, he went negative.  Going negative against an organization in the media is pretty much going to the point of no return.   Even if you end of getting what you want, it can be a pretty ugly place to be.

   4. It’s all about me – When an individual makes the situation all about them and not about the organization, they typically fall out of favor with their coworkers.  Favre has seemed like a great teammate through the years, a good citizen and a role model for youth.  But, if you listen closely to him over the last few weeks he seems to be talking more about himself and less about coming back to help the organization or his teammates.  

The Packers have done the right thing from an organizational development or succession management perspective.  They knew he was going, they put a succession plan in place for a number of years (i.e., Aaron Rogers), then when they got notification that he was leaving, they started it in motion.

What would you do? 

I just got back from my first prospective college visit to Florida with my oldest son, Michael (because of course why would he want to attend a college with in-state tuition!).  I’ve also been traveling a lot lately for new and perspective clients so I’m becoming quite the airline connoisseur.  Frankly as airfare has sky-rocketed I tend to book whoever is cheapest or works with my schedule, but I do have my favorites.

This most recent trip had me on Southwest Airlines.  Now I’ll admit that as an HR leader I have followed this company for several years.  Southwest is one of the few profitable airlines and has been in the black for 33 consecutive years and has paid a small dividend for 127 consecutive quarters. While its competitors are reducing the number of flights offered and grounding hundreds of aircraft, Southwest will add a few flights daily, will take delivery of another dozen aircraft next year and still plans to grow by 2 percent to 3 percent.  Southwest now carries more passengers annually than any other U.S. carrier.

So, my down time in the airport yesterday had me pondering...how has Southwest been successful?  I think it is based on a few guiding principles –

    * Keep things simple
    * Keep it consistent
    * Manage costs and maximize productive assets, and
    * Manage customer expectations.

These are business strategies that can be applied to most businesses.

Keep It Simple

While Southwest’s competition operates numerous types of planes, Southwest flies just one plane type.  This saves millions in maintenance costs, employee training, parts, etc.

Business Application – Do one thing and do it well

In the technology world, Human Resources software providers are trying to be all things to all people.  At Achievant, we have determined what we do is provide HRIS software solutions to small and mid-sized companies.  Achievant is not a payroll company, but we work with your payroll company to manage your employe data.  We have seen numerous companies try to meet all needs by bolting together the components of a human capital management system (i.e., HRIS system, time and attendance tracking, learning management, performance management, applicant tracking, and succession management) together with a payroll system and try to pass it off as integrated.  As a result these providers are adequate at many things, but not really good at anything.  Don’t get caught up in a feature/function comparison….who has the prettiest screen, bell, or whistle.  You should evaluate the entire package.

Keep It Consistent

I have to admit that I have not always been a fan of Southwest's approach to assigning seats.  Which is…..there are no assigned seats. You just line up according to an assigned number and you choose an open seat as you board the plane.  As someone who is slightly a control-freak (ok, maybe a little more than slightly), this was initially unsettling to not have a seat assigned specifically to me.  But, as I have flown with them more I have come to appreciate the control of choosing my seat...the one that is not next to the crying child or the chatty person, and have relished the opportunity to get a seat with extra leg room or no one sitting next to me.  Best of all, they still provide beverages and snacks for free!

Business Application – Manage the brand experience

At Achievant we work very hard to manage the experience our clients have with us and our Human Resources software solution.  Every time they contact us we want to respond to them in a friendly way, on a timely basis, and in a way that is relevant to them.  

No fees, no frills

As other carriers have removed perks and added fees, Southwest has kept its customer proposition streamlined and unchanged. The airline only sells in a few price "buckets" which allows it customers to understand the fare structure and believe they are getting value for their money. Prices are all-inclusive too, no fees for fuel surcharges, ticket changes, or luggage.  They have looked for out-of-the-box solutions to things like the clunky beverage cart.

Business Application – If customers can’t understand the pricing structure, they can’t understand the value you offer

Most HRIS systems, learning management systems, time and attendance solutions, and payroll providers utilize an ala carte menu for the services they provide.  In addition to the monthly or annual subscription, anything additional you’d like (e.g., a system change, new report) is charged by the hour or project.  This can make it very difficult to manage your costs.  I have spoken with numerous potential clients who when questioned how much they pay their current system provider, respond that they won’t know until the end of the year.

At Achievant, we have adopted a modular pricing model that is very simple to understand and is inclusive.  You are not charged for new version releases, minor system changes, client support, etc.

Management, Happy Workforce

Herb Kelleher finally stepped away from Southest earlier this year after leading it for more than a generation.  Although he was a very colorful leader, the airline avoided fads, shied away from anything that increased costs or complicated the basic travel proposition. Management ranks are lean, but most importantly, productive.

Southwest has embraced a culture of making their work (and consequently our travel) more fun.  They sing, dress in casual uniforms, and allow employees to go “off-script”.  In return, they have employees who are friendlier, seem to enjoy their jobs, and don't strike.

Business Application – If your workers aren’t happy, your customers aren’t happy

It is important to note that there are many intangibles that contribute to how much employees enjoy their job.  Take time to focus on these and you will be repaid for your efforts in higher levels of customer satisfaction.  360 degree feedback can be a great tool for this.

These are important business applications that I think will apply to any industry, not just HRIS software and talent management providers like Achievant.  In the meantime, I will continue to watch the progress of Southwest. 

The second in a three part increase in the minimum wage is set to take effect July 24, 2008.  The minimum wage will increase to $6.55 per hour.  Due to the increase, many state minimum wage rates will change as well. You should check your individual state to confirm any changes.  The next and final increase will be July 24, 2009 when it will increase to $7.25.

I did a little checking to see what it has historically been.  Ok, I’ll admit I remember it at the $3 level while in high school.

Federal Minimum Wage History
Effective Date        Hourly Wage

10/24/1938                    $0.25
10/24/1939                    $0.30
10/24/1945                    $0.40
01/25/1950                    $0.75
03/01/1956                    $1.00
09/03/1961                    $1.15
09/03/1963                    $1.25
02/01/1967                    $1.40
02/01/1968                    $1.60
05/01/1974                    $2.00
01/01/1975                    $2.10
01/01/1976                    $2.30
01/01/1978                    $2.65
01/01/1979                    $2.90
01/01/1980                    $3.10
01/01/1981                    $3.35
04/01/1990                    $3.80
04/01/1991                    $4.25
10/01/1996                    $4.75
09/01/1997                    $5.15
07/24/2007                    $5.85
07/24/2008                    $6.55
07/24/2009                    $7.25

Don’t forget to make sure you keep you labor law posters up to date too.