FreshView
a publication of Cascade Employers Association
FEBRUARY 2012
Dollars & Sense Poll |
In This Issue:
- A Lesson Learned: Honest Feedback Is Vital To Our Success
- Overtime Eligibility – Exempt v. Non-Exempt
- Participate in a Veterans Career and Benefits Fair
- Equitable Pay: Priority for OFCCP and Obama Administration
- Survey Spotlight
- FreshView on Compliance
- Did You Know?
A Lesson Learned: Honest Feedback Is Vital To Our Success
True Story by Jerry E. Bumgarner, CCP
Director, Research and Compensation Services
jbumgarner@cascadeemployers.com
I have always set high standards for myself. It was always about achieving the “goal” whether it be high grades in school, winning in sports, being a good father, or being successful in my business life. Goals fueled my passion to win. Failure was never an option and I wouldn’t let anything or anyone stop me ... except me, as I eventually came to realize.
True to form, I made no exception when hired by a large insurance company in the early 80s to fix their “broken” compensation program. I quickly became fixated on achieving that goal and, after intense investigation and in depth analysis, discovered the primary reason for the excessive turnover among our administrative staff ... salaries were significantly below local market practices. Once the source of our problem was uncovered, I quickly developed and introduced new programs and practices to assure that our pay practices were competitive. I achieved the goal in spite of considerable resistance from my staff, my peers in HR, and from many line managers. I refused to let anyone stop me from succeeding.
As I was wrapping up the project, my boss, the VP of HR, approached me one day and invited me to lunch. I was excited about the opportunity to celebrate my significant accomplishments. At lunch, he began by praising me for my extensive technical knowledge, problem solving skills, and creativity in identifying and resolving the company’s compensation shortfalls. I was feeling pretty good about myself until he said “But... ”
I hated to hear that word and knew immediately that I was about to hear something negative about my performance. He continued, “But, you are leaving bodies in your wake.” Ouch! I melted in disbelief, my bubble was popped, and I suddenly felt like a complete failure. My ego was bruised and I couldn’t eat another bite of my lunch.
It became clear that my boss had been conducting an informal 360° review of my performance. He had spoken to members of my staff, my peers in the HR department, and line management (my customers) and all had expressed frustrations in trying to work with me during the project. His conclusion, I would need to improve my interpersonal and leadership skills if I wanted to continue in my “leadership” position. In other words, my career in HR would be over if I didn’t change.
While I was hurt by the accusations about my poor interpersonal and leadership skills, I quickly came to realize that the people I was working with were right. After all, it was hard to deny their perceptions when everyone was saying the same things. While I accomplished a major goal, my technique in doing so was clearly wrong! Once my wounds healed, with support from my boss, I began to take actions to strengthen my leadership skills and working relationships.
Looking back, I can clearly see that this was an important growth opportunity for me. Where would I be today if my boss hadn’t had this conversation with me? As I came to accept that my success depended as much on how I accomplished things as on what I accomplished, my leadership career blossomed. To this day, I credit my boss who cared enough and was courageous enough to tell me how others, who were important to my success, perceived me. By doing his job, he not only salvaged my career, but helped me to become a better person in the process.
No matter what position you hold in an organization, it’s important to know how others perceive you and your performance. Seek input now from your peers, direct reports, customers and others, to gain valuable insight about what you are doing well, and, more importantly, to identify opportunities to strengthen areas where you might have challenges. But, don’t wait until it is too late.
If you wait too long, it may be too late to fix the damage you have done and salvage important working relationships. Your job, your career and your success may be at stake. If you struggle to obtain complete, accurate, and objective assessments about employee performance, you’re not alone.
To help, Cascade now offers a convenient online 360° Review solution. Contact us for details, and read here for a perspective on the process of a 360 review.
Overtime Eligibility – Exempt v. Non-Exempt
By Patrice Altenhofen, JD, MBA, President
paltenhofen@cascadeemployers.com
Federal and state law both outline minimum wage standards and require overtime pay under certain conditions. At the same time, federal and state law provide for specific exceptions, or exemptions, from these rules. These exemptions are based upon employee classifications.
Generally, “white-collar” employees, most commonly professionals, executives, administrative employees and outside salespersons, are exempt from state and federal minimum wage and overtime requirements. These employees are usually paid on a salary basis and are most often treated as exempt from minimum wage and overtime requirements.
Many employers are under the impression that if an employee is paid on a salary basis then he/she is automatically exempt. This is not the case. An employee who is paid a salary must still meet the duties test to qualify for exemption.
- No hourly employee, regardless of the type of work performed, can be properly classified as an exempt employee.
- However, not all salaried employees are exempt.
Would you like more specific information on Exempt Employee Classifications? For a complete guideline, Cascade Members can go here, or give us a call and request one!
Participate in a Veterans Career and Benefits Fair
By Jenna Reed, JD, MBA
Director, HR & Compliance Services
jreed@cascadeemployers.com
As you may have heard, many veterans and service members have or are returning to the civilian workforce and looking to be active contributors to your workplace. If you are a federal contractor or subcontractor covered by the affirmative action regulations, you are probably also aware that you have specific obligations towards the employment of veterans in the workplace. With that in mind, if your organization is hiring, consider participating in the Veteran's Career and Benefits Fair on March 10 at the Oregon State Fairgrounds.
The career fair is designed to bring together employers, agencies and advocacy groups that can assist soldiers, their spouses and veterans with everything from employment to benefits. The event is in support of a company that has recently returned from overseas. Participating employers will also have access to a host of experts that will provide you with the benefits of hiring a veteran, including financial incentives.
Throughout the day, be ready to interview these men and women who have: passed criminal background checks, met educational requirements, passed physical fitness standards, demonstrated leadership skills, are professional and responsible, have had technical and trade training, can handle stress and timelines, are team players and have an incredible amount of pride and a positive attitude.
To register for the career fair, click here for the invite.
Equitable Pay: Priority for OFCCP and Obama Administration
By Carey Klosterman
Human Resource and Compensation Consultant
cklosterman@cascadeemployers.com
Pay discrimination continues to be a hot topic, as the Office of Federal Contract Compliance Programs (“OFCCP”) continues to crack down on systematic pay discrimination. According to OFCCP Director, Patricia Shiu, “The President has called on us to make sure that workplaces are fair, equitable and free from discrimination ... and WE ARE.”
It is unfortunate, but discrimination is still a very real problem in the workplace. “When an employer bases decisions about hiring, firing, pay, promotions, training, and job placement on factors that have nothing to do with a person’s qualifications, it lessens us all,” stated Shiu. Women still earn approximately $.80 cents for every dollar paid to men, a figure that has not changed since the 1980’s.
Because of the continued disparity in wages, the OFCCP and federal Equal Employment Opportunity Commission (“EEOC”) have been tasked to work together to identify and remedy discriminatory pay practices. If an OFCCP audit turns up some potential discrimination in pay, contractors can expect that the information will be shared with the EEOC. Remember, although the OFCCP can only recover “make whole” relief for employees and applicants affected by discriminatory practices, the EEOC can issue punitive damages.
Contractors are advised to look at their pay structures, pay policies/practices, and current pay for all employees so that potential issues can be fixed before the information is submitted to an OFCCP compliance officer. With pay equity being one of the foremost priorities of the Obama Administration, the OFCCP has negotiated almost $25 million in back wages and interest for more than 40,000 victims of discrimination. Many of these settlements have included well known organizations paying top dollar amounts to settle discrimination cases.
In March 2011, a Fox Broadcasting Affiliate settled with the EEOC paying $45,000 to a female African-American news reporter for pay discrimination. In May 2011, Hyundai Ideal Electric settled with the EEOC paying nearly $200,000 to a single female for pay disparity and retaliation claims. In June 2011, Astra Zeneca settled with the OFCCP paying more than $250,000 in back pay and interest, based on an unexplained pay difference between male/female counterparts. In June 2011, Wells Fargo agreed to pay $32 million and change the way it promotes and distributes work to financial advisers as part of a gender-discrimination settlement. It is apparent that the Obama Administration’s urge for the OFCCP to crackdown on pay discrimination is making headway, as the number and value of pay discrimination settlements is clearly on the rise.
As the OFCCP strives to be more aggressive to find and eliminate pay disparities, the OFCCP developed a new tool which allows them to request more data and information on compensation than they have collected in the past. The tool will help them to gain insight at the company level where they look to single out potential problems of pay discrimination, and to identify and analyze industry trends, individual contractor compensation practices and potential equal-employment related issues. As a result, the data collection tool will help the OFCCP determine when compensation-related issues need to be addressed by conducting focused reviews or full compliance audits. The public comment period regarding this proposed new tool ended in the fall. The OFCCP hopes to have this new tool in place sometime this year.
Until the new data collection tool is officially unveiled, it is a good idea to stay up-to-date with what is expected by the OFCCP in terms of tracking compensation data appropriately. Currently, the OFCCP uses the “2 or 2” test. Under this method, contractors receive a mini-regression data request if “similarly situated” employees are identified with either a two percent or a $2,000 difference in pay. This is an extremely sensitive measurement tool identifying most, if not all contractors as having adverse impact. It is a good idea to regularly review your compensation practices and pay structure to ensure they are non-discriminatory.
Cascade Employers will continue to provide updated information on changes in compensation analysis by the OFCCP. If you need assistance developing a structured pay system or if you would like assistance in conducting your own pay discrimination analysis, please contact our Compensation department.
Survey Spotlight
By Tina Hamel, Survey Manager
thamel@cascadeemployers.com
SalaryTrends® surveys from Cascade Employers Association cover the pay practices of diverse organizations from various markets (Oregon, SW Washington, Northwest Regional, and National), and include multiple relevant data summaries. These valuable tools enable users to evaluate their competitiveness within specific talent markets.
Now Open for participation:
- Oregon Regional Pay Survey (24/7/365)
- IT & Engineering Survey (Coming 5/12)
Contact us with questions at surveys@salarytrends.com.
FreshView on Compliance
By Jenna Reed, JD, MBA
Director, HR & Compliance Services
jreed@cascadeemployers.com
Question: My company has 120 employees, but we don’t have any federal contracts. Should I be filing an EEO-1 Report?
Answer: Yes.
Although your company does not have any federal contracts or subcontracts, because it has more than 100 employees you are required to file an EEO-1 Report annually by September 20. Companies that have 50 or more employees and federal contracts or subcontracts of $50,000 or more are also required to file this report annually.
If you have any questions, please contact us!
Did You Know?
For companies who offer medical benefits, 76% of employers with fewer than 100 employees do not offer medical benefits to employees with domestic partners. Of those who do offer benefits to domestic partners, and who responded to the survey, 2.1% of employers offer benefits to same-gender domestic partners, and 1.45% offer benefits to opposite gender domestic partners.
©2012 Cascade Employers Association. All rights reserved.
SalaryTrends® is a trademark of Cascade Employers Association.
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