In early 2009, President Obama signed the Lilly Ledbetter Fair Pay Act. The Act (based on a Supreme Court ruling) allows for the 180-day statute of limitations to file an equal-pay lawsuit, regarding pay discrimination, to begin again with each new discriminatory paycheck, instead of the date when the parties agreed to the wage amount.

Although widely covered in the media, many companies have not taken the proactive steps they should to protect themselves. The first step is to conduct an audit of your compensation system, including the job evaluation process, pay structure, performance management program and compensation guidelines. The second step is to analyze internal salary equity, including standard cohort analysis and regression analysis. The final step is to create a system to maintain pay equity.

As many as 18% of U.S. companies do not offer severance for regular non-executive employees, according to a new poll. A news release said the study by WorldatWork and Innovative Compensation and Benefits Concepts LLC (ICBC), an HR consulting firm, found that of those employers with a severance plan, 71% use years of service to figure the amount of severance payments. Nearly one-third of companies (31%) offer a week’s salary per year of service, while one out of every five employers (20%) provides two weeks of salary for every year.
 
Employers also consider an employee’s position (21%) and pay (17%), according to the announcement.
 
Of the companies paying severance, 42% offer a three-tiered structure focusing on the top executive, all other employees. The poll found that only 37% of surveyed companies have detailed severance plans and policies in writing.

Also, annual reviews of non-executive severance plans are rare. In fact, 69% of organizations have not reviewed their severance plans in at least the past year, while 13% reported having never reviewed their plans.

Study author Bob Jones asserted in the news release that annual reviews of an organization’s severance and change-in-control plans, especially because of the size and importance of these plans, should be conducted by Compensation Committees. “This is a best practice in general — in conjunction with a tally sheet analysis of the top executives’ Total Rewards — in order to ensure that plan costs are being prudently monitored,” said Jones. “This is best done by making this topic an agenda item that is covered on a regular, recurring basis.”

The Severance and Change-in-Control Practices 2007 survey was conducted in June 2007. Surveys were sent electronically to 4,590 WorldatWork members with a response rate of 11% (523 responses).

Wooing and hiring the best talent is becoming more difficult by the week. As employees entertain multiple opportunities and offers, sometimes you simply may run out of money. What to do when you’re short on cash but big on intention?

HiringRevolution.com offers these tips on putting together a more attractive package for quality applicants:

  Extra vacation days.Extra PTO is the first place to start, every time.
  Elevated title. If your firm is loose with titles anyway, no harm here.
  Eat the parking cost. The cost is generally nominal to a corporation but goes far in showing your genuine intention.

Read the rest of this entry

Hewitt Associates has found the annual holiday bonus as a way to reward employees is losing favor as 63% of surveyed companies said they will not award holiday bonuses this year.

According to a news release from Hewitt, 90% of companies indicated they are relying on variable pay plans (performance-based bonuses that must be re-earned annually) to show appreciation for employees this year. In 2007, actual company spending on variable pay as a percentage of payroll is 11.8%, and spending on variable pay in 2008 is projected to remain strong at 11.6%, the release said.

The 2007 holiday study of more than 350 organizations revealed that more than half (53%) have never offered a holiday bonus, and 10% have discontinued their programs. Companies that discontinued their programs said they did so primarily due to cost (50%), development of pay-for-performance programs (37%), or difficulty in administering bonus programs (16%).

Of those companies that never offered a holiday bonus program, 54% said that all rewards are tied to performance, 34% said they never offered one due to cost, and 29% never considered such a program.

Of the 35% of companies that will offer a holiday bonus program in 2007, 42% said they will provide gift cards, 41% will award cash, 25% will give employees a gift of food, and 20% will give some type of catalog gift.

Reasons for providing holiday bonuses, according to the Hewitt survey, included:

• To say thank you and/or show appreciation (69%),
• To maintain tradition (11%), or
• To boost morale (16%).

More than two-thirds (70%) of companies surveyed who offer holiday bonuses said that all employee groups are eligible, while 17% said only full-time employees are eligible. Holiday bonus programs were most prevalent in the insurance industry (61%), followed by health care (50%), manufacturing (39%), retail (37%), financial services (16%), and the pharmaceutical industry (8%).

In addition, Hewitt found 70% of surveyed organizations plan to host a holiday party this year, up from 65% last year. Of these, 24% will spend $5,000 or less on their parties; 12% will pay between $5,000 and $10,000; and 27% will spend between $10,000 and $25,000. Fifty-six percent of companies said they hold holiday parties after work hours and 65% hold them at offsite locations.

A new survey reveals similar values between Baby Boomers and Generation Xers when it comes to choosing voluntary benefits.

The Aon Associates survey found that the top voluntary benefit purchased by both groups was disability coverage — 45% of employers surveyed say Baby Boomers purchase disability coverage, while 37% say Gen X workers do the same.

Read the rest of this entry

According the new American Express Business Gifting survey businesses will be giving employees gift cards more than any other category of gift this year.

The survey found 92% of responding companies say they will be giving year-end gifts to their employees, but only 64% of employees say they expect they will get a gift from their employer. Among companies choosing to give individual employee gifts at year-end, gift cards are at the top of the list (42%), according to a press release.

Spot cash bonuses came in second as a gift choice (37%), followed by company products (35%), food/food baskets (26%), merchandise (25%), and time off (24%), the release said. When it comes to clients and customers, 14% of surveyed companies said they will give their client a gift card.

In order of importance, employees indicated they most want cash (44%) as their year-end gift, followed by time off (17%), and gift cards (15%).

Most managers of medium- and large-sized companies are given guidelines in selecting gifts for their clients (62%), according to the survey. Four in ten are guided on how much to spend on their clients, and 19% are offered guidelines on preferences (personal vs. “desk-based”). The average amount spent on a client gift this year, as indicated by the survey, is $38.50.

Employees are split on whether to get their bosses a holiday gift, American Express said. Forty eight percent say it is not a good idea, with 22% saying it is inappropriate, 13% saying a gift from employees is not wanted by the boss, and 13% saying getting the boss a gift is “kissing up.”

Nearly half (47%) of surveyed employees said giving the boss a gift is okay. Of those respondents, 28% said it is due to the nature of their working relationship with their boss, 11% that their boss is their friend, and 8% because they think it is expected.

The survey found companies will be taking part in special end-of-year activities as well – indicated by 86% of respondents. Three out of four companies said they will mark the holidays with team lunches, dinners, and special events.

About half of respondents said they will host an in-office party (53%), and an almost equal number (51%) will host a party at a hotel or party space. Many companies (46%) will extend party invitations to spouses and friends.

In addition, many employers indicated they are planning group activities such as volunteering in a soup kitchen (43%) and gift exchanges (41%).

Twenty-seven percent of respondents working at a company that hosts a holiday event say they find these parties “fun and interesting,” nearly half say they “can take it or leave it” (48%), and small numbers believe that company parties are either “the event of the year” (4%), or are “to be avoided at all costs” (4%).

The American Express survey on employee incentives and corporate gifting was done in two parts. A telephone survey was administered between October 10 and October 24, 2007, among 501 Human Resource Managers working for a company with 100 or more employees. A second survey was conducted between October 10 and October 24, 2007, via telephone among 511 employees working for a company with 100 or more employees.

National Boss Day just passed by, and often employees are confused about gifint policies in the workplace — not just for the boss, but also to and from fellow employees. It’s easy to get stressed about gift giving in the workplace because we often don’t know our colleagues or superiors as well as we would like, or even well enough to make an education guess about their tastes. But, if you use a little common sense and follow some basic rules, you’ll find office gift giving is actually easy and fun.

Get the facts — check your company employee handbook for guidelines on what’s acceptable and what’s not. Many companies simply discourage gift-giving. If your company doesn’t have guidelines, or the guidelines are vague, ask co-workers and colleagues what they typically do during occasions or holidays. If gift-giving is a normal practice, find out what ‘typical’ gifts are. Of course, inappropriate gifts are never a good idea for co-workers or superiors! Stay away from overly personal items or gifts that might appear sexual or vulgar.

Use common sense. If you know your colleague or boss well, try to choose a simple, small gift based on their obvious likes and dislikes. In addition, give strong consideration to gifts that are useful and work-focused. You don’t have to know much about someone to get them something practical like stylish pen or business card holder. Many large companies even have online stores or physical storefronts where you can buy useful items with the company logo. Finally, if gift-giving is taboo or you still feel awkward about an actual gift item, it’s OK to go for a tasteful card. Most of the big-name greeting card makers have wonderful National Boss Day cards.

Make every effort to be inclusive. Giving a gift to the boss might be a good way to win a few brownie points with him, but chances are your co-workers might be a little peeved if they get purposefully left out. Plan for holidays ahead of time and ask your office mates if they would prefer to participate in a group gift. If you happen to have more than one boss, never exclude one from the gift giving.

If you’re still stuck, here are a few “sure-fire” gift ideas.

Plants. Small, easy to care-for plants and flowers often make great boss gifts. Plants brightenany office and many people find their presence relaxing. Plants are a particularly good option if the boss in question already has a few growing in their workplace. Hallmark has an awesome bonsai tree for beginners.

Cooking or food gift baskets. Gift sets or baskets with chocolates, small gourmet items, or baking mixes are often a fun option. Everyone loves brownies and chocolate.

Tasteful candles. Even men like a great candle. Quality candles are relaxing and smell great at the home or office.

Nice pens. Pens are great boss and co-worker gifts because they come in all shapes, sizes, and costs and because virtually everyone uses one.

Organizers or planners. We all need help planning and structuring our time. A stylish day planner or even personalized planner makes an excellent and practical gift for anyone at the office.

Source: www.askthecareercounselor.com

Given a list of 15 benefits and characteristics that may be important in choosing a job, “how much one is paid, the total compensation” ranked 10th among American workers surveyed.

The health insurance plan offered with the job ranked at the top of the list, with 84% saying it is very important, according to the survey report. Job security and clarity in the rules at work ranked next (82% each), followed by the retirement or pension plan offered with the job (76%).

The fifth-ranked important job characteristic was working in a flexible, family-friendly workplace, chosen by 71% of respondents.

The survey found differences among demographic groups. Health insurance was ranked high by more women than men (89% v. 78%), as was a retirement plan (81% v. 72%). A family-friendly workplace also received more votes from women.

Eight of the characteristics ranked as more important by minority Americans than by white Americans and none were less important.

Having the potential for promotions is very important to Gen X workers (74% of those age 18-29), compared with Baby Boomers (58% of those age 42-61). Job security was also more important to the Gen X group (88%) than Boomers (79%), the report said.

The retirement plan at work ranked as very important to 84% of government employees, 72% of those in private business, and 73% of those who work for non-profits. In several key areas respondents said state and local jobs offer better options.

In terms of overall job benefits, a majority (58%) said state and local government is better; 23% see no difference, and 14% said private jobs are better. The numbers are almost exactly the same for job security, where 58% said state and local careers are better. Sixty-two percent of private-sector workers and 63% of government workers agreed that government jobs provide better benefits.

The telephone survey of 1,200 adults age 18 and older in the continental United States was conducted October 24, 2007 – November 4, 2007, by Princeton Survey Research Associates International for The Center for State and Local Government Excellence.

The poor economy is having effects that include more than terminations and service cut-backs. Employers are getting more stingy about holiday bonuses and gifts to employees. From the Associated Press:

A recent survey of small business owners or managers showed fewer of them planning gifts or cash for their workers.

“Business owners are still feeling pinched cash wise,” said American Express business adviser Alice Bredin. AmEx’s small business division conducted the survey.

Last year, 44 percent of those surveyed said employees would get an end-of-year bonus. This year, only 31 percent did. Even fewer are planning raises: 16 percent, compared with 30 percent last year.

Meanwhile, in 2008, 46 percent of owners or managers said employees would get holiday gifts. This year, it’s 35 percent.

The business owners or managers surveyed oversaw companies with fewer than 100 employees.

The survey also found that, of those still giving a present, 42 percent said they’ll give fewer or cheaper gifts to customers and employees.

The random survey of 500 small business owners or managers was conducted over the phone from Oct. 6-14. It has a margin of error of plus or minus 4.4 percentage points.

Giving gifts to your co-workers or your employees can be a tricky business. You want to give something that is they will really enjoy but doesn’t break your piggy bank. You want to give something that suits the individual’s tastes but doesn’t suggest anything politically. We have some suggestions that for the most part can be given to either sex and to anyone of almost any age which we think will help you in your gift giving search.

• Everyone uses a memo pad even if the memo is only to themselves. Pick ones that reflect their hobbies or show the type of work they do.
• People are always looking for a paperclip for all those papers we still have. If you give a magnetic paperclip holder, they’ll always have their own paperclips. They can also play and make funny shapes when someone on the phone has put them on hold.
• Occasionally everyone has to take work home or get away from the desk to write or proofread what they wrote on the computer. Give them a lap desk. They have some lap desks that have a pillow on the part that fits on your legs. Some of them also have storage underneath the board.
• Baskets full of things are always good. Fill them up with an assortment of coffee sample packages, cocoa, jams and jellies, cookies and snacks, specialty teas, cheeses and meats.
• Did you ever plan on stopping on the way home from work to pick up something but forgot the one item that you really needed? We all have. But now, you can get door hanger note pads that say “Do Not Forget”. They hang on your office door knob or the your desk drawer. You write things on them as you think of them during the day. When you leave, the list is there for you to rip off the sheet and head to the car.
• We all sit in rush hour traffic each day. An audio book on cassettes will take their mind away from the traffic.
• The truth is, we are all clock watchers. Find a small, attractive desk clock. Just don’t give it to the person who is late every morning.
• We don’t always plan ahead. Most of us forget our umbrella on the day that it rains buckets. With the new mini-umbrella, you gave them, that won’t be a problem. Mini-umbrellas fit nicely inside a purse, briefcase, or desk drawer.
• Everyone loves those yellow little sticky notes. You can give a more decorated stack that’s printed with flowers, sailboats, mountains, or whatever hobby best suits the recipient.
• Did you ever receive a card that a guy had in his wallet until it was dog-eared. It looked pretty sad, didn’t it? Anyone who hands out their business card would appreciate a silver or gold cardholder case.
• Find the guy who took pictures of the last company functions; Christmas party, company picnic, company exhibit booth. Get all the pictures of the recipient and his co-workers and fill up a photo cube to place on a co-workers desk. Enclose a note that he can change out the photos for members of his family if he wants.
• We have mail and not everyone has a secretary to open it. A letter opener that reflects the hobby of the recipient will be a welcome gift.