The HR Specialist

In addition to providing plain-English HR advice that tells readers what they can do, not just what they can’t do, The HR Specialist shows HR professionals how to raise the profile of the HR function from the back office to the boardroom. Readers will find personal success by developing innovative solutions to general management problems.  Learn more about The HR Specialist and the two free reports you'll get when you subscribe...

HR Specialist editors joined more than 15,000 HR professionals in Las Vegas for the 2007 Society for Human Resource Management conference -- the largest annual gathering of HR pros in America. Following are some nuggets of advice collected during the conference ...

More organizations basing health premiums on employees' salary

With health costs estimated to rise at double-digit rates for another year in 2008 and cost-shifting continuing to be a reoccurring theme, employees--especially lower-paid ones--are feeling the pinch. "We are now to the point where employees are making 'health care or grocery' decisions," said Gary  Kushner, president of Kushner & Co. benefits consulting firm.

To level the playing field, Kusher says, more employers are setting employees' health insurance contribution levels based on their salaries. "The more employees make, the more they're expected to pay in health premiums... I think that trend will continue over the next 10 years," says Kushner. 

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Study: Employee benefit offerings remain stable from 2006

What does the benefits landscape look like in 2007? A lot like 2006, according to SHRM's 2007 Benefits Survey, which was released at the annual conference. On average, organizations spend 38% of payroll on total benefit costs (20% on mandatory benefits and 18% of voluntary benefits). While most benefits remained the same in 2007, here are some of the most noteworthy benefit fluctuations:

• Vision insurance decreased from 73% of companies offering to 79% (down from 80% in 2005).
• Transit subsidies and telecommuting programs increased for full- and part-time employees.
• Programs for daily casual dress attire decreased from 38% to 37%, while more employers turned to weekly casual dress day (66% compared with 62% last year) 

Key point: While employees rank benefits as one of their key factors in job satisfaction, a big disconnect exists between the dollar amount organizations actually spend on benefits and the employees' perception of the value of their benefits package. 

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Lance Armstrong: HR can play a role in fighting cancer 

Among the tales of his Tour de France bike victories and battle with cancer, Sunday's keynote speaker Lance Armstrong stressed that HR professionals also play an important role in America's fight against cancer.

"You're influential people," Armstrong told the crowd. "Make sure your employees are aware of the symptoms" and get checked out. He noted a practical point to early detection: employers save on health costs when workers are able to spot diseases early.

"Health equals productivity equals profits," said Armstrong. "Early detection costs a dime. Late detection costs a dollar."

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Four ways to improve your "likeability" factor with employees 

A big management myth: "It's not important for my employees to like me; they only need to respect me." Not true, said management consultant Mike Winstanley during his Psych 101 for Managers session. He said it's fine--even important--for managers to be liked by their employees, noting that  Gallup polls over the past 50 years have shown that the presidential candidate who was most likeable won the race.

Four ways for managers to increase their "likeablity" factor: 1) Become more friendly with employees and cut the negative words out ("When you smile, people will naturally smile back.") 2) Be more relevant to employees by having more frequent contact with them. 3) Be more empathetic to their needs and feelings ("I understand that's frustrating to you") 4) Be real and admit your mistakes and uncertainties.

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Money (still) talks: Compensation is top factor in employee satisfaction

What keeps employees happy and in firmly in their seats? Good pay, good benefits and job security are the top three factors for the second straight year, according to the new SHRM 2007 Job Satisfaction survey. Those factors are followed closely behind by work/life flexibility, communication with senior management and feeling safe in the work environment.

HR professionals see things a bit differently. When HR professionals were asked which factors affected employee satisfaction most, they put "Relationship with immediate supervisor" first (it ranked eighth on the employees' list). The rest of HR view of the top five: compensation, management recognition, benefits and communication with senior management.

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When you can't say 'Yes,' try not to say 'No'

How do you or your supervisors respond when employees make a request--say a pay raise or telecommuting schedule--that's impossible to grant? A quick and harsh "No" may be the easiest answer, but it's not the smartest, said Bob Harris, president of Attrition Busters.

"Take the 'No' word out of your vocabulary," said Harris. He suggested that you, instead, use alternatives that point out the potential things you can offer. Examples: "What I can do for you is ..." or "What you can do is ..." 

"These kinds of phrases let people know you want to help them and they offer specific actions to take to find alternative solutions. It employers them to have some degree of control over the outcome," said Harris.

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Avoid these five common retaliation mistakes

The next time you have to discipline, fire or otherwise act against an employee who has complained about company policies or deeds, watch out for a retaliation claim. California attorney Jonathan Levy says these five mistakes can escalate a run-of-the mill situation into a costly retaliation case:

1. Inconsistently applying policy. Treat all similar situations—and all groups of employees—similarly.
2. Contradictory documentation. Make sure documentation shows your action supported a legitimate business need.
3. Lousy timing. Acting against an employee who has recently complained raises red flags in courts.
4. Rushing to judgment. Take the time to conduct a thorough investigation.
5. Failing to train managers. Make sure they know the law and your policies on retaliation.

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Bonus? Who cares?

If your pay-for-performance system relies solely on bonuses to motivate employees, don’t be cheap, says Jim Finkelstein of the compensation consultancy FutureSense. “At less than 5% of salary, there’s actually no affect at all on performance. At 10%, that’s like a Christmas bonus. At 15%, however, people start to notice. They start to really engage in the business. If people do really well, pennies should rain down on their desks.”

Finkelstein says the key to effective pay-for-performance is setting base salaries to attract and retain great employees.

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Best small companies build trust

America’s best small and medium-sized companies create cultures in which employees emotionally invest in the business, according to the Great Places to Work Institute. The group announced the 2007 winners its annual "Best Small and Medium Companies to Work for in America" awards at the SHRM Conference.

Badger Mining Corp. in Wisconsin won top honors as the nation’s best small company to work for. Holder Construction Co., of Atlanta, was named the best medium-sized employer. The institute cited 48 other companies for exemplary practices.

What winners have in common: clear communication with employees—which encourages them to voice their opinions, trust management and take pride in their work—and generous salary and benefits packages.

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At the other end of the spectrum

Think you’ve got a big job? Sue Oliver, Wal-Mart’s top HR pro, has you beat on sheer volume. The retail giant will hire and train 190,000 cashiers this year, and hire or promote 10,500 managers. 2007 store openings alone will bring in 66,000 new workers.

Oliver said the company is in the midst of a top-to-bottom revamp of the HR function as part of Wal-Mart’s bid to restore profitability growth rates that have slipped in the last two years.