Exclusively for MRA members - GLGA€¦ · Point/Counterpoint: Are Performance Reviews Relevant? 6...

Does Your Employee Handbook Need a Makeover? 1

Coaching for New Leaders 2

Is It Time to Reboot Your Orientation/Onboarding Program? 3

Point/Counterpoint: Are Performance Reviews Relevant? 6

APRIL 2015

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Plan NOW for Creative Plan Design

April 2015

Letter From the EditorDebra [email protected]

Happy Spring! You will find several articles in this month’s HRD with titles phrased in the form of a question. Why? Maybe it is the time of year—Spring carries with it the energy of renewal, change, and growth. That is especially true this year, when economic indicators are as optimistic as we’ve seen in years. It is time to invest in the future, and to question, question, question whether the

status quo is good enough. In this issue you will find splendidly useful articles with questions you want to ask today. MRA is here, as always, to help you with the answers. OUR MISSION The mission of MRA is to maximize performance of organizations and employees so that business thrives. OUR PURPOSE We achieve our mission through knowledge transfer— the delivery of HR expertise through a wide range of membership benefits. The HR Digest is distributed monthly by MRA—The Management Association as a benefit of MRA membership. Back issues are available to members online at www.mranet.org. Reproduce content as many times as you wish for the benefit of your management team or employees. Please notify Debra Dorgan at 763.253.9730 or [email protected]. If reproduction is electronic, please include a link to www.mranet.org. www.mranet.org 800.488.4845WisconsinN19W24400 Riverwood DriveWaukesha, WI 53188262.523.9090

Minnesota 9805 45th Avenue NorthPlymouth, MN 55442763.253.9100

Iowa/Western Illinois 3800 Avenue of the Cities, Suite 100Moline, IL 61265309.764.8354

Illinois625 North Court, Suite 300Palatine, IL 60067847.963.9860

fyi MRA is monitoring a number of proposed laws introduced by state legislators, and will keep you apprised of any action taken on them. Here is a summary of key bills:

IllinoisHB 124: Would increase the state’s minimum wage to $15 per hour on October 1, 2015.

HB 166: Would create a Family Leave Insurance Program providing family leave insurance benefits for employees who take unpaid family leave to care for a newborn or newly adopted child or newly placed foster child, or a family member with a serious health condition.

HB 145: Would give small employers (with fewer than 15 employees) a tax credit for moving part-time employees into full-time positions.

IowaSF 269: Would increase the state’s minimum wage to $8 per hour on July 1, 2015 and to $8.75 on July 1, 2016.

SF 313: Would require an employer to provide reasonable accommodations to an employee based on medical conditions related to her pregnancy or childbirth.

SF 370: Would require employers to obtain employees’ written approval for any wage deductions.

MinnesotaHF 1093: The “Working Parents Act” contains numerous provisions pertaining to wages and schedules, and would require Minnesota employers to provide paid sick leave to employees.

WisconsinSB 5: Would increase the statute of limitations for a wage claim action from two to four years.

1April 2015 I 1 www.mranet.org I 1.800.488.4845

Does Your Employee Handbook Need a Makeover?

When we hear the word “makeover,” various images may come to mind. For instance:

• A guest on a talk show works behind the scenes to surprise an audience member with a makeover— new hairstyle, makeup, and clothes—Voilà!

• A group of neighbors work together to help a family in need by making repairs and painting the family’s home. Beautiful!

In either case, the recipients are genuinely pleased with the results. We hope so anyway!

Take a look at your employee handbook in that same light. Your answers to the questions below can help you determine whether it is time for a handbook makeover.

1. Does it look like it was written on a typewriter? A typewriter?! If so, chances are the topics covered are just as archaic. Conveying current information to your employees is critical to your company. A handbook, among other things, is a key tool when administering disciplinary action, in unemployment hearings, and for positive employee relations. If it looks “old,” it may inadvertently convey the message that its contents are outdated and no one is paying attention.

2. Does it have too many—or too few—pages? The average handbook, regardless of company size, is approximately 35 pages. If yours is more than that, we know it can be slimmed down. Too much information can lead to conflicting information, inconsistent actions and unclear direction. On the other hand, if your handbook is considerably fewer than 35 pages, there is a good chance some critical information may be missing. A professional review or some research on your part may be needed.

3. Do your handbook topics reflect current times? If your handbook’s section on discipline includes the phrase “progressive discipline,” it’s time for a makeover. Proper discipline need not be “progressive,” and it is important not to make that commitment. Up-to-date, well-written handbooks now define

discipline as verbal, written, suspension, and/or termination, and the company will determine the action that best fits the situation. If the section on harassment covers only “sexual harassment” and not other types of harassing behaviors, it is time for a makeover. An even better question is, “Does your handbook reflect current laws and regulations?" If the answer isn’t a quick and confident “yes,” let’s get out the supplies and paint brushes—it’s time for a makeover!

Is your handbook in need of a makeover? If so, decide whether you can “DIY” (Do It Yourself), or whether it is time to call on an expert.

Services and options available from MRA include:

• Writing an Employee Handbook—Ready, Set, Go! This workshop is available at MRA or at your location.

• MRA’s Hotline, Resource Center, and Toolkits are available to members 24/7.

• MRA’s handbook professionals can provide assistance in developing, updating, or reviewing your handbook.

By Lori Storms HR Director, Employee Handbooks

[email protected]

2 I April 2015 www.mranet.org I 1.800.488.4845

Coaching for New Leaders

We often think of coaching for executives, but have you thought about the benefit of providing

coaching for your new, emerging leaders? Hatco Corporation, a member company, recently reached out to MRA to help coach a current employee who was moving into her first leadership role. Although there were no specific improvement areas identified by either the company or the new leader, the company wanted to offer coaching as a developmental opportunity. Three months later, by engaging in the coaching process, the new leader had identified many areas of strength and targeted a few areas for improvement and growth. As her coach, I helped her create a thorough development plan based on business goals and personal development targets. We reviewed the plan in person with her manager for feedback and input.

Now that this work was behind us, I asked her some questions about her coaching experience:

What was most beneficial for you?

“The most beneficial part of this process was to have someone to talk with who has a lot of experience and who is outside of the company. It forced me to think issues all the way through and to come up with solutions, be open to feedback, and then be accountable for the follow up.”

Was anything surprising for you?

“Yes! It was eye-opening to realize that I have many resources to tap into for guidance. I just needed a little push in some developmental and organizational areas to keep moving forward. I knew all of the things I needed to do, but realized I wasn’t really working on making them happen until you helped me to identify a few key themes I mentioned. Once these were identified and written down, it helped to provide clarity and direction for me. The other eye-opener in this process was that I expected to be given answers to my questions and challenges. What the coaching process involved was a lot of question-asking. The tables were turned right back around to me and it forced me to come up with ideas to help solve these issues myself. That can be difficult!”

What is one way this will help you in your professional life?

“I think the developmental plan that we created together is something that I will utilize in the long-term. It takes work to remember to go back to this document, but if you can focus on those key goals and activities, it really does help to plan and prioritize more effectively. This is a great tool for an emerging leader, as it can be used well into my career.”

Why was it particularly helpful for you to have coaching at this stage in your career?

“As a new manager, it is often difficult to begin to shift day-to-day responsibilities from the functional to the more strategic. There is no handbook for “managing” so it is very important to be given tools and figure out how to use them to best fit your style. The methods that we used in the coaching process are the same ones that I will continue to use with my teams.”

Sarah Scheiber is a member of MRA’s Executive and Leadership Coaching Team. Looking for a coach for a leader in your organization, or support for your talent management initiatives? Contact Lisa Pook, Manager, Organizational Development, at [email protected] or 262.696.3506.

By Sarah Scheiber HR Manager

[email protected]


An employee’s initial impression of an organization can either affirm his or her decision to come aboard or trigger a serious episode of

“buyer’s remorse.” An excellent orientation program can help make and solidify a positive first impression. Consider the following as you update your program:

1. Include Subject Matter Experts: Schedule time for members from various departments (consider IT, Office Support, Accounting) to present information about their areas. This will help new employees develop key contacts within the organization and it will provide them with the most current and accurate information. As an alternative to having department representatives attend each orientation live, presentations can be video recorded and updated as information changes.

2. Multi-Media Approach: Don’t let your orientation presentations be dry! Use a variety of methods for relaying information. Limit lectures, and when they are used, incorporate video, question and answer, and other variables. Interaction will help new employees get to know the organization as well as their fellow new hires. Humor is also a good way to portray a positive image of the organization and encourage discussion. Finally, consider the audience: employees in technical positions, creative roles, or different generational cohorts may respond best to different information and formats.

3. Lunch Time—Take a Break: Encourage department leaders to take new employees out to lunch on their first day—or during the first week—to introduce them to fellow team members and start assimilating them to the department.

4. Remote Orientations: When employees work from long distances, it may not be possible to have new employees experience orientation in person. Given that orientation is intended to help new staff feel that they are truly part of the organization and receive must-have information about their benefits and other technical information,

video-conferencing is better than participation via phone conference. Use it whenever possible. Be sure that your orientation leaders follow best practices for remote meetings and that the tools and technology used are easily accessible to participants. Have technical support available to assist as needed to keep things running smoothly.

5. Transitioning to Their Team: Develop a checklist to use in transitioning employees from organizational orientation to orienting to their team. The checklist can be used as a communication tool to keep all involved aware of what has been covered and what areas are still outstanding.

6. Ongoing Updates: Schedule check-in meetings following the initial week. Frequently, 30, 60, and 90 days are the timeframes used. Spending a few minutes talking with a new employee can provide valuable information for continuous improvements to the onboarding program as well as for the overall organization. Employers may also find value in surveying employees a month or two after they start to get additional feedback on the onboarding program. Having a well-prepared, welcoming orientation program helps employees acclimate to the organization more quickly. A strong orientation program provides new employees with important tools, a positive first impression, and a foundation for success that will play an important role in engaging, retaining, and helping employees succeed over the long term.

Is It Time to Reboot Your Orientation/Onboarding Program?

By Rhonda Blum HR Manager/Advisor

[email protected]


COVERSTORY

Sponsoring employee health insurance is one of the most costly expenditures an employer makes each year. The impact on the employer’s

bottom line is sizable. With the goal to avoid the 2018 Affordable Care Act 40 percent excise tax, cost control is more critical than ever. In response, human resources professionals are discovering innovative ways to control health care costs with creative plan designs.

What is creative plan design?

Creative plan design involves customizing your plan to reduce costs or meet a specific objective. Objectives may range from encouraging consumerism, to controlling medical claims costs, to increasing participant well-being and awareness, to establishing wellness programs that encourage or discourage specific behaviors.

Planning takes time. Creative planning takes even more time. To be successful, consider these strategic implementation steps:

1. Determine your desired outcome

Is your goal to control medical costs by reducing enrollments in your plan? Or, are you encouraging increased consumerism with multiple plan offerings? In evaluating any plan design change, consider the impact on

Plan NOW for Creative Plan Design

the company’s philosophy and culture. The provisions you pursue should fit into a long-term strategic approach that is consistent with the company’s benefits philosophy. 2. Do your homework Before making a change, conduct research, identify the pros and cons of your potential change, and gather survey data. Review medical claims data to identify trends. Network with other HR professionals to learn about how other employers implemented plan design changes. After gathering the available information, predict the impact on your organization both financially and culturally. How might the change impact future retention and recruitment efforts?

3. Develop a timeline Creative plan design takes time to communicate, implement, and respond to employee questions. Receptiveness to change can be enhanced when employees receive advance notice. Plant the seed of the idea as early as possible:

• One employer announced a spousal surcharge 14 months prior to the effective date to allow spouses an opportunity to enroll in their own employer’s, or in some other plan.

• Another employer, implementing a tobacco surcharge program, gave employees six months advance notice of the effective date, allowing smokers time to quit.

• Yet another employer conducted annual benefits satisfaction surveys. Within these surveys, they made informal inquiries about specific plan design changes, and used this data to gauge employee receptiveness.

4. Put the plan in place

Communication is critical. Let all employees know of the plan, its objectives, and the timeline. Clearly answer, “What’s in it for me?” Remember to address your specific audience. For example, if a spousal carve-out or surcharge is enacted, your communication should be directed to the spouses in addition to your employees. Consider multiple types of communication such as emails, tweets, websites, bulletin boards, meetings, letters, and newsletter articles.

5. Evaluate and modify

Did you hit the mark? After the program is in place, step back and measure the actual impact of the change against your predictions. This is critical information for the organization.


By Suzanne Dorszynski

HR Director [email protected]

Number of plans Consider offering your employees a choice between multiple plan designs. Offering a choice may lead to stronger consumerism and employee satisfaction. If an employer wants more employees to enroll in a particular plan, the employer can steer enrollments with a more favorable cost-sharing formula for that plan. In 2014, 47 percent of employers offered only one health plan, thus offering no choice to their employees. 39 percent of employers offered two health plans to choose from.

Spousal Carve-Outs The concept for a spousal carve-out is straight forward: The employer adopts a provision into its health plan design that indicates that the spouse is eligible for coverage only when coverage is not available through any other plan. (Note: This design option is prohibited in Wisconsin for employers with fully-insured plans.)

Spousal Surcharges A spousal surcharge operates under the principle that a company should not be the primary provider of health insurance to the spouse of an employee who has available insurance elsewhere. This design option allows for your employee to be charged a higher premium, but the spouse cannot be rejected or refused participation in the plan. The surcharge creates a financial incentive for the employee’s spouse to enroll in his or her own employer’s plan. The objective is not to eliminate spousal coverage, but to ensure that only those spouses with no other insurance options remain enrolled in the company’s plan without penalty. In 2014, the average surcharge was $171 per month.

Tobacco Surcharges Tobacco use surcharges are on the upswing. And, because it is a voluntary behavior, some employers are applying premium surcharges to tobacco users. When setting the surcharge amount, you may consider starting with a lower monthly surcharge. This creates an incentive for those smokers who are contemplating, or who may be open to, quitting. Later, you might consider increasing the surcharge

to address that more hardcore group of continuing tobacco users. One creative company used the surcharges to fund their wellness programs. In 2014, 26 percent of respondents had this type of program in place. The average monthly surcharge was $43.

Dependent Audits Employers of all sizes can be affected by ineligible individuals remaining enrolled in the health plan. The impact of just one ineligible divorced spouse remaining on a plan could easily be over $4,000 a year in employer paid premiums plus the impact of incurred medical expenses. Of 655 survey respondents, only 126 responded that they perform an internal dependent eligibility audit and 42 used an outside vendor.

With careful planning, you can take the lead for recommending creative plan designs to meet your organization’s objectives. Begin working closely with your management team to determine which design enhancement may be an effective tool for your organization.

MRA is offering a “Surcharges, Carve-outs and Outsourcing – Oh My!" creative plan design and excise tax avoidance workshop within the 2015 Health Care Reform Series on June 23. This session will review a multitude of creative plan designs that will comply with the Affordable Care Act and create health cost savings. Topics covered include spousal carve-outs, spousal surcharges, tobacco surcharges, outsourcing benefits administration, narrow networks, in-house clinics, and telemedicine. Participants can participate live via webinar or in person at the MRA Conference Center in Waukesha, Wisconsin. Call 800.488.4845 for more information.

What’s in your basket of creative plan design goodies? There are many design options to choose from that are beyond the scope of this article. The information below represents just a few of the most popular options. The benchmark data shown below is taken from the 2014 MRA Insurance Plans Survey: Health and Prescription Drugs, Midwest Data.


While human resource professionals clearly understand the importance of optimal performance management, they often face internal

obstacles in the form of negative attitudes about the value of a review process. Forward-thinking companies are successfully addressing this negative view of performance management. They are implementing innovative solutions that ensure processes deliver real results and improve performance. Every employer, whether a small CPA firm, a Fortune 500 firm, a nonprofit organization, a government institution, or a private or public company, should have a formal performance management program.

Most organizations have an overall plan for business success in one form or another. A performance management program with goal setting, performance measurement, regular performance feedback, employee recognition, and documentation of employee progress is an integral part of its success. The process, done consistently and thoughtfully, helps employees see how their job and expected contributions fit within the bigger picture of the organization.

When performance management is mentioned, people often think of the annual employee performance review. The performance review, while essential to good performance management, is only one part of the process. Properly constructed reviews should represent a summary of an ongoing year-round dialogue. Focusing only on an annual review form leads to misunderstanding and under-appreciation of the benefits of performance management.

The primary reason for having performance management is to monitor individual performance, motivate staff, and improve company morale. When employees are aware that

the company is mindful of their performance and that they could be rewarded with merit increases and promotions, they are motivated to work harder. Morale is improved when employees receive recognition and rewards for their work.

An effective performance management process enables managers to evaluate and measure individual performance and optimize productivity by aligning daily work activities with strategic business objectives. It also provides visibility and accountability related to performance expectations. Documenting employee performance supports compensation decisions, focuses on skill development, and creates documentation for legal purposes to support decisions and reduce disputes.

Many of the practices that support performance also increase job satisfaction, employee retention, and loyalty. Delivering regular feedback to employees in a fair and consistent manner supports a positive environment and provides appropriate learning and development opportunities.

The road to effective performance management is not always easy, but progressing towards a long-term vision by making manageable changes, step-by-step, will bring about significant positive results to your organization.

Point/Counterpoint: Are Performance Reviews Relevant?

By Linda Reedy

HR Director

[email protected]

Point: Yes, Performance Reviews Are Relevant When Done Well


By Lisa DeMartino HR Director

[email protected]

While attending the 2014 HR Technology Conference in Las Vegas, I heard the statement that “92 percent of companies don’t think performance management is worth it!” Yet we insist that our managers spend time on an annual review process that brings little results to the organization. What is the purpose? There are a number of good reasons to put the performance review process on the shelf.

The process can easily become too burdensome to justify. For example, many companies require managers to take the time and energy to measure as many as ten or more different competencies, while the true measure of an organization’s performance is about how much high quality work is produced in an efficient, profitable manner.

Performance reviews make it too easy to put off important discussions. Knowing that there will be a designated time for performance reviews creates the temptation to let things go until that time. Although we’ve all heard (and taught!) that performance management is an ongoing process, the reality is that managers have so much on their plates that waiting for a review meeting may be too enticing.

Using a rating system to assess performance does not result in that person working harder or smarter. It may even create a risk of reduced engagement, when employees wonder if the coworker in the next work station (the one who never follows the rules) received a higher rating. And when a manager doesn’t talk to an employee about performance for 11 months, he or she may legitimately infer that everything is fine.

The review becomes what feels like a surprise attack when the individual receives a rating of “2,” for example. Employees are likely to become very focused on a number, or on receiving a “meets” versus an “exceeds” expectations rating. This results in hours of pondering the unfairness of the system.

Finally, because the dreaded “rating” is often inflated or deflated because of the work it takes to justify a variance, it often comes up as a liability rather than good evidence to support employment decisions, including termination for performance reasons. We’ve all seen the cases of marginal performance that is tolerated for years and that is rated “meets expectations.” In such cases, the performance document may become evidence for the plaintiff.

In his book, “Your Brain at Work,” David Rock tells us that, “We like to do what we do well” and that, “When a manager tries to change a pattern he’ll get a threat response.” Wouldn’t a quarterly goal review and coaching session serve to better enhance both the employee and the organization? Let’s spend our time on coaching, developing, and retaining our valued employees and forget the annual review!

Counterpoint: No, Performance Reviews Are Irrelevant Today


An employee is on intermittent FMLA leave and she wants to move from a full-time position to a part-time position. The change in schedule will change the number of hours in her workweek and thus

the total number of hours in her FMLA entitlement. Can I change the number of available hours now, or do I have to wait until our FMLA calendar resets for the year?

Section 825.205(b)(2) of the Family and Medical Leave Act states: “If an employer has made a permanent or long-term change in the employee’s schedule (for reasons other than FMLA leave

and prior to the notice of need for FMLA leave), the hours worked under the new schedule are to be used for making this calculation.”

Sometimes FMLA regulations are clear. Other times they are not. The regulations regarding a change in an employee’s schedule is an example of a regulation that could be better worded.

In the scenario described above, the change in the employee’s schedule was made after the request for leave was made. The regulations state that a change in hours can affect the number of FMLA hours only when the change in schedule precedes notice for the need for leave. Thus, the safest route is to wait until the start of the next FMLA year (according to the company’s FMLA recordkeeping calendar) and then adjust the number of hours in that employee’s 12-week FMLA entitlement.

Employers that immediately reduce an employee’s FMLA hours to reflect the FTE change should understand there is a small risk that accompanies such a decision. In such a case, the employee may have a claim against their employer if the employee was later terminated due to absences that could have been covered by the decrease in the number of FMLA hours. While there is little case law on this issue, employers should be mindful of such risk.

MRA’s HR Scholarship MRA’s Centennial Endowment Fund Scholarship offers a $1,000 award for students demonstrating HR excellence. This scholarship has been shared with universities in WI, IL, IA, and MN that offer a HR major to students. Qualifications for entry include:

1. Junior or Senior standing in an HR program.

2. Completed application and essay.

3. One letter of recommendation.

4. Proof of enrollment for Fall semester and current list of courses.

5. Applications must be submitted before 5 pm on April 10, 2015.

6. Applicants may not be relatives of MRA employees or board of directors.

An additional $1,000 HR scholarship will be awarded to one student selected from those who submit a resume and attend MRA’s HR Conference in Milwaukee on May 20, 2015. The conference features a specially designed “student-track,” allowing students to hear from highly regarded HR professionals, mingle, and network.

To learn more about this fantastic scholarship opportunity, please contact Jennifer Zoltan at 262.696.3426 or Mary Embree at 763.253.9153.

InfoNowHeard It On The Hotline

Q

A

New Reports Published in April:

• Turnover Survey

Questionnaires Open in April:

• Non-Exempt Wage Survey

• Managerial, Supervisory, & Professional Salary Survey

surveys


New Members MRA extends a warm welcome to our newest members!

3Wire Group, Inc. Osseo, MN Betty James HR Generalist

Alpha Source, Inc. Milwaukee, WI Virginia Geraghty Director of Human Resources

Bunzel’s Meat & Catering Milwaukee, WI Jeff Zupan Operations Manager

C.K. Blandin Foundation Grand Rapids, MN Shari Undeland HR Assistant

Concurrency, Inc. Brookfield, WI Kate Weiland Director of Human Capital

Duininck, Inc. Prinsburg, MN Brad Erickson HR Director

Equix, Inc. Fond du Lac, WI Angela Hedrich Human Resources Generalist

Flag Center Wauwatosa, WI Kristin Boyle Vice-President

Iowa Quality Center Marion, IA Gary Nesteby Executive Director

Iowa Computer Gurus, Inc. West Des Moines, IA Mitchel Sellers CEO/Director of Development

Learner’s Edge, LLC Lakeville, MN Joe Cotter President/CEO

Madison-Kipp Corporation Madison, WI Larry Bardwell Human Resource Manager

Minnesota River Area Agency on Aging®, Inc. Mankato, MN Joyce Prahm Fiscal Manager

Modern Tool, Inc. Coon Rapids, MN Jennifer Wagner HR Supervisor

Motor Werks of Barrington Hoffman Estates, IL Sabina Krzyzak Human Resources Director

Multimetal Products Corporation Gurnee, IL Kaitlynn Glass Accounting Manager

Options Residential, Inc. Burnsville, MN Sandra Elvebak Director of Human Resources

Our Wisconsin Magazine Manitiwosh Waters, WI Mike Beno President and Editor

Patient Care Milwaukee, WI Sherry Stuckart HR Director

Process Displays Company Minneapolis, MN Kari McGill HR Manager

R C Insurance Services, Inc. Hartland, WI Sarah Ocampo Operations Leader

Ragsdale, Inc. Lake Bluff, IL Grace Ragsdale Owner

Redpath and Company White Bear Lake, MN Sarah Gengenbach HR Generalist

Rhino, Inc. Maple Lake, MN Linda Vokaty Human Resources

S.M. Osgood Company Edina, MN Terri Molan CFO

The Sullivan Corporation Hartland, WI Sherry Kohn Controller

Trillium Woods Maple Grove, MN Andrea Barrett Director of Human Resources

United Plastics, Inc. Gurnee, IL Sahil Aggarwal Manager

Watertown Unified School District Watertown, WI Ivan Thompson Director of Human Resources

Wisconsin Evangelical Lutheran Synod Waukesha, WI Dennis Maurer Human Resource Director

MRA membership is a great value with a lifeline of time- and cost-saving benefits that help you create powerful teams and a safe, successful workplace. Email: [email protected]: 866-HR-HOTLINE

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