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My name is Alexandra Pao and I'm based in the beautiful Chino Hills, California.
The Human Resources field is dynamic and diverse and that is why I started this website: a one-stop Human Resources information center.
Smart Managers
3/27/2009
COBRA Subsidy Model Notices Now Available
3/20/2009
Employee Free Choice Act Talking Points
3/13/2009
EFCA May be Introduced on March 9 and Passed by August 2009
3/6/2009
IRS Released Information to Help Employers Claim COBRA Assistance Credit on Payroll Tax Form
2/27/2009
How Does COBRA and the Stimulus Package Affect Employers?
2/26/2009
The Economic Stimulus Package and COBRA Insurance Plan
2/20/2009
Training and Development - Ways to Motivate and Retain the Best
2/13/2009
Strategic HR Planning in Today's Turbulence Economy
01/31/2009
What is Human Resource and How Does it Benefit My Bottom Line?
12/1/2008
Smart Managers...
March 27, 2009
The smart aleck employee, who prides himself on doing as little as possible to scrape by, needles you by saying, "There are no bad employees--just bad managers."
The genius-in-residence has a minor point. But the question remains: How do you motivate employees who don't perform up to their potential? First, you try to avoid bad employees by hiring carefully. If you made a mistake in hiring, then you have to understand why the employee isn't performing well. It can be a lack of training, a poorly defined role, lack of feedback, personality clash with other team members or something deeper.
Smart Manager sets goals
Micromanaging is the surest way to kill an employee's enthusiasm. To succeed, employees need to know that they're trusted and their work is valued. Micromanaging tells the employee just the opposite, and pointing out every little mistake--especially things that are a mistake only in your eyes--will quickly kill incentive. Instead, try something positive like "I found this help make that task easier" or "That's good, have you tried doing it this way?" Managers are responsible for the finished product and smart managers leave the process to the employees. What's more important: delivering a solid product to your customers on time or how the boxes are stacked?
Good Manager gives praises
Thank an employee individually for his or her contribution and repeat your thanks at the department or company meeting. Always use outstanding performance to jump to the larger issue: Here's how we solved the problem, or here's how we beat the competition. Gushy praise is instantly recognized as fake and won't cut it. You can't go wrong by rewarding your top performers with more challenging assignments. Many managers fall into the trap of inundating the top performers with routine tasks because the work will be handled quickly and well. That soon becomes a incentive NOT to excel.
Additional pay is always appreciated, but a good working environment is more important to most employees than a few extra bucks each week. Employees need to know that their contributions are noticed, valued and part of expanding the enterprise. Review your employees' performance objectively and ask some basic questions: What are their strengths? What are their weaknesses? Are they in the right slot? Would their talents and interests flourish with a different assignment?
The manager's goal remains unchanged: How can you consistently get the best out of each employee? Of course, there are some people who resist or ignore every effort to get them to improve. Such employees often show similar traits:
• They do the absolute minimum to meet their responsibilities and nothing more.
• They routinely perform their duties with more attitude than gusto, and their sullenness often carries over into their dealings with customers.
• They have little commitment to the company, frequently bad-mouth it and regularly disrespect fellow employees.
• When asked for ideas to improve the work flow, clever deadbeats respond with a quip like this: "Pardon me, but you've confused me with someone who gives a damn."
• They complain endlessly about poor pay, lack of advancement and don't have a clue how others see them.
If you have the misfortune of dealing with such a slug, work carefully with your HR department.
Rule of thumb: The worst employees are often the most litigious.
Meet privately with the problem employee. Tell him how and where he's failing to meet company standards. Tell him what he needs to do to improve. Set specific deadlines for improvement. Demand improvement. Make the path to success clear. Monitor the progress and schedule regular feedback meetings. Put everything in writing. Keep a copy for yourself, and give copies to HR and the employee. Document! Document! Document! This will build a record if it becomes necessary to terminate the employee.
These issues show up across all industries and companies of different sizes. As a manager, you can't be buddies with your employees. It is difficult to reprimand a best friend. You must command respect and lead. But you don't want to be inaccessible or feared. In short, managing is a balancing act and it's not easy to do it well. What often seems to be your role as babysitter-in-chief for difficult employees but that is why you make the big bucks.
COBRA Subsidy Model Notices Now Available
March 20. 2009
On March 19, 2009, the Department of Labor Published COBRA Subsidy Model Notices mandated by the American Recovery and Reinvestment Act of 2009 (ARRA). Each COBRA Subsidy Notice is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA’s notice provisions.
General Notice (Full version): Plans subject to the Federal COBRA provisions must send the General Notice to all qualified beneficiaries, not just covered employees, who experienced a qualifying event at any time from September 1, 2008 through December 31, 2009, regardless of the type of qualifying event. This full version includes information on the premium reduction as well as information required in a COBRA election notice.
General Notice (Abbreviated version): The abbreviated version of the General Notice includes the same information as the full version regarding the availability of the premium reduction and other rights under ARRA, but does not include the COBRA coverage election information. It may be sent in lieu of the full version to individuals who experienced a qualifying event during on or after September 1, 2008, have already elected COBRA coverage, and still have it.
Alternative Notice: Insurance issuers that provide group health insurance coverage must send the Alternative Notice to persons who became eligible for continuation coverage under a State law. Continuation coverage requirements vary among States, and issuers should modify this model notice as necessary to conform it to the applicable State law. Issuers may also find the model Alternative Notice or the abbreviated model General Notice appropriate for use in certain situations.
Notice in Connection with Extended Election Periods: Plans subject to the Federal COBRA provisions must send the Notice in Connection with Extended Election Periods to any assistance eligible individual (or any individual who would be an assistance eligible individual if a COBRA continuation election were in effect) who 1) had a qualifying event at any time from September 1, 2008 through February 16, 2009; and 2) either did not elect COBRA continuation coverage, or who elected it but subsequently discontinued COBRA.
This cobra notice includes information on ARRA’s additional election opportunity, as well as premium reduction information. This notice must be provided by April 18, 2009.
Related Blog:
IRS Released Information to Help Employers Claim COBRA Assistance Credit on Payroll Tax Form (February 27, 2009)
How Does the Economic Stimulus Package and COBRA Affect Employers? (February 26, 2009)
The Economic Stimulus Package and COBRA Insurance Plan (February 20, 2009)
Employee Free Choice Act Talking Points
March 13, 2009
On March 10, 2009, The Employee Free Choice Act (EFCA) was introduced simultaneously to the House and the Senate. With union membership declining in the past 50 years from 33% to only 7.5% in the private-sector workforce, organized labor has made the enactment of EFCA a top priority. Currently, Union wins over 50 percent of National Labor Relations Board supervised elections. However, with EFCA, unions are predicting over 80 percent of the time. EFCA is in effect the "Stimulus Package" for the Union and not the American Economy. If EFCA passes, the pendulum will swing heavy to the side of the union organizers.
EFCA Facts:
1. Ability to bypass the Secret Ballot Election: EFCA allows unions to opt for recognition through a process known as “card check” instead of the secret ballot. EFCA Proponents claim EFCA does not “Eliminate” Secret Ballot Election. The question is why would unions choose the most resistance and "Allow" a secret ballot election.
2. Binding Arbitration by a Third Party Arbitrator in 120 days: If an employer and a union are unable to reach an agreement after 90 days of bargaining, the matter will be referred to federal mediation for 30 days. If the parties are unable to reach an agreement after 30 days of mediation, the matter will be referred to a federally appointed arbitrator. An arbitrator with very limited knowledge of the company's financial situation, industry position or competition would have the authority to set a 2-year binding labor contract including compensation, benefits, job classification, promotion and disciplinary procedures, etc. That's right!! Why work? Let the Federal Arbitrator deliver whatever contract and union dues for the next 2 years.
3. Impose Civil Penalty on Employers but not Unions: Lastly, EFCA would change the law from a remedial statute to one with penalties only for the employers, including triple back pay damages and $20,000.00 for each unfair labor practice during union organization or union related activity. However, it failed to hold the unions to the same standard. In essence, the unions are free to intimidate and coerce employees without any ramification.
Many small & mid size company executives are taking the approach of wait and see. "The only companies that don't have to worry about this are the ones that are 100 percent organized already," says John Skonberg, the EFCA guru at employment shop Littler Mendelson. When EFCA becomes law, it may be too late to prepare for the unions. Employees may have already signed a card based on the promises by a union agent. Labor and employment experts agree that ALL companies should have an EFCA preventative plan in place. Employers must start now or put themselves in the hand of the union.
• Train you Manager & Supervisors on how to recognize early warning signs of unionization activities and the proper response to those activities;
• Educate your employees on the significance of signing a union authorization card and once it is signed, he or she may not be able to get it back;
• Review your grievance procedures and ensure that the disgruntle employees has a way to resolved their issues with the employer;
• Set up consistent communication channel - the employees must be aware and feel that their voice are heard;
• Review other HR related policy & procedures - Even in this economic environment, compensation and benefits should be fair and consistent;
• Conduct Employer of Choice Survey - the best way to combat EFCA is to become "Employer of Choice." An Employer of Choice Survey allows management to proactively address "hot spots" and not react in haste to a unionization attempt.
In this trying economic times, employees of small and medium-size businesses are ripe targets. The relatively small companies can be blitzed by organizers loaded with promises of greener pastures. Small Business owners can find themselves strapped with a bargaining obligation and a group of misinformed employees with exaggerated expectations.
EFCA May be Introduced on March 9 and Passed by Aug. 2009
March 6, 2009
The Employee Free Choice Act (EFCA) will reportedly be introduced in Congress on Monday, March 9, 2009 according to the National Association of Manufacturers blog called The ShopFloor. Unions are mobilizing their membership for passage by targeting legislators with messages like the following one appearing on the Los Angeles County Federation of Labor, AFL-CIO on Monday, March 2, 2009:
On the week of March 9th Congressman George Miller and Senator Ted Kennedy are expected to introduce the Employee Free Choice Act into the House of Representatives.
This is the first step in the long fight to make the Employee Free Choice Act the law in this country. We have a lot of work to do, including convincing Senator Feinstein that the Employee Free Choice Act is good for workers, our communities and critical to rebuilding our economy because it opens the door for us to earn better wages, health care and retirement benefits by signing a card to join a union.
"EFCA victory by August."
That's the prediction by Andy Stern, SEIU President, in USA Today. "It's not about unions. It's about how America is going to rebuild the middle class, " Stern said. Stern thinks there are enough votes in the House and Senate to approve the bill and he expects victory by August 2009.
IRS Released Information to Help Employers Claim COBRA Assistance Credit on Payroll Tax Form
February 27, 2009
On February 26, 2009, the Internal Revenue Service issued a News Release that will help employers claim credit for the COBRA medical premiums they pay for their former employees.
The American Recovery and Reinvestment Act of 2009, which became law on February 17, 2009, includes changes to the health benefit provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly referred to as COBRA. Under the new law, eligible former employees, enrolled in their employer’s health plan at the time they lost their jobs, are required to pay only 35 percent of the cost of COBRA coverage. Employers must treat the 35 percent payment by eligible former employees as full payment, but the employers are entitled to a credit for the other 65 percent of the COBRA cost on their payroll tax return. Employers must maintain supporting documentation for the credit claimed. This includes:
• Documentation of receipt of the employee’s 35 percent share of the premium.
• In the case of insured plans: A copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier.
• Declaration of the former employee’s involuntary termination.
The New informations includes an extensive set of Q&A for employers, a revised Form 941 and the Instructions. The Q&A makes the following quotes on maintain supporting documentation for the credit claimed. Such documentation includes:
• Information on the receipt, including dates and amounts, of the assistance eligible individuals’ 35% share of the premium.
• In the case of an insured plan, copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA.
• In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals.
• Attestation of involuntary termination, including the date of the involuntary termination (which must be during the period from September 1, 2008, to December 31, 2009), for each covered employee whose involuntary termination is the basis for eligibility for the subsidy.
• Proof of each assistance eligible individual’s eligibility for COBRA coverage at any time during the period from September 1, 2008, to December 31, 2009, and election of COBRA coverage.
• A record of the SSN’s of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for 1 individual or 2 or more individuals.
• Other documents necessary to verify the correct amount of reimbursement.
More information about COBRA payments and the new law is available on www.dol.gov.
How Does COBRA and the Stimulus Package Affect Employers?
February 26, 2009
The subsidy becomes effective March 1, 2009. Therefore, Employer have to update their COBRA election notices and other communications to reflect the subsidy. However, the federal government is not picking up 65% of the tab. Instead, employer take a credit in the form of reduced payroll tax deposits. Therefore, it is imperative that employers works with their payroll department or payroll service bureau to ensure that the terminated employee information are accurate and timely:
• List of employees who are involuntarily terminated;
• List of employees who elect the subsidy;
• Total monthly subsidy for each employees;
• Dates employees make their subsidized COBRA payments;
• Dates employees' subsidies end.
Employers that pick up COBRA payments for employees who were separated (a common experience that occurs during termination negotiations) will have to separate those individuals from COBRA-subsidy-eligible employees, since they're not eligible for the subsidy. The subsidy is also extended to employees with comparable COBRA coverage under state laws. This primarily impacts employers too small for Federal COBRA coverage. To be comparable, one must have the right to continue substantially similar coverage as was provided under the group health plan at a monthly cost that's based on a specified percentage of the group health plan's cost
Employer should also put procedures in place on how to obtain the reimbursement from the government and how to credit overpayments by terminated employees. Current COBRA notices must be rewritten to include comprehensive information regarding the subsidy and special enrollment rights. The Secretary of Labor is directed to release a Model Notice within 30 days. Employers have much to do in less than two month time. If you utilize a third party administrator for COBRA purposes, we encourage you to contact them immediately or consult your attorney before taking action on any of these issue.
The Economic Stimulus Package and COBRA Insurance Plan
February 20, 2009
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Tax Act of 2009 (ARRA). This new law dramatically affects employers whose group health plans are subject to COBRA, which includes virtually all employers with 20 or more employees. The cornerstone of ARRA is a 65% subsidy for eligible employees who are involuntarily terminated between September 1, 2008 and December 31, 2009. This legislation demands immediate action on the employer's part, as the subsidy portion of the Act becomes pertinent for periods of coverage beginning on or after March 1, 2009 and notification portion fell within 60 days from from February 17, 2009, to notify individuals of the special election period.
Some of the ARRA details:
• Effective March 1, 2009, the government will provide a 65% subsidy for up to 9 months of the COBRA premium for eligible terminated employees.
• Employees entitled to the subsidy must have been involuntarily terminated (for reasons other than gross misconduct) between September 1, 2008 and December 31, 2009 and must be eligible for COBRA.
• Those eligible employees who had not yet elected COBRA will then have 60 more days after receiving this notice to elect coverage. This COBRA coverage, however, will not be retroactive and need only take effect as of March 1, 2009 (however, any resulting gap in coverage will be disregarded for purposes of determining the 63 day period which would affect one's creditable coverage subject to pre-existing condition exclusions).
• The subsidy is not retroactive, but will continue for a period of up to 9 months beginning on or after March 1, 2009.
• The subsidy terminates at the earlier of (a) 9 months; (b) eligibility for other employer health coverage; (c) Medicare eligibility; (d) the end of the maximum COBRA coverage period required by law; or (e) for those electing COBRA during the special election period, the end of the COBRA period starting from the initial time period when the employee could have elected COBRA. A former employee who does not notify the employer of (b) or (c) above is subject to a penalty of 110% of the premium reduction.
• The employer must first provide this payment and is then reimbursed by the government.
• Employer reimbursement may be made by the employer taking a credit against its liability to deposit payroll taxes and federal income taxes withheld from the employees' compensation.
• The employer must receive 35% of COBRA from the employee before the employer can request reimbursement of the other 65%; employers who do not charge the full COBRA premium will not be entitled to the maximum reimbursement of 65% of the COBRA premium.
• The subsidy is phased out through additional taxation for taxpayers with a modified adjusted gross income of more than $125,000 (or $250,000 if married filing jointly). The subsidy is completely phased out for taxpayers whose modified adjusted gross income for the taxable year exceeds $145,000 (or $290,000 if married filing joint return). However, taxpayers can avoid this issue by a one-time permanently waiver out of this subsidy. In such case, employer should have procedures in place to allow them to permanently waive the subsidy and pay the full COBRA premium.
• If the employer allows, employees may elect coverage different than that in effect at the time of termination; however, the premium must not exceed the premium for the coverage enrolled in at the time of termination, the different coverage must also be offered to active employers, and the different coverage must not be: (a) only dental, vision, counseling or referral services; (b) a health FSA; or (c) coverage providing treatments in an on-site medical facility of the employer providing primarily first-aid and prevention services.
• If employees pay 100% COBRA for the first month or so after the subsidy is to be effective, the employer must credit the subsidized portion of the premium against future COBRA premiums within 180 days or refund the subsidized portion within 60 days.
• Employers need to ensure the notices are out prior to March 1st or they must develop a procedure for refunding the subsidy or crediting it against future premiums.
Training and Development - Ways to Motivate & Retain the Best
February 13, 2009
One of the best ways to motive the employees is through Training and Development. In fact, employees WANT the opportunity to continue to grow and develop job and career enhancing skills. However, in this tough economic time, organizations often place future needs on the back burner and spend resources on more immediate value-adding activities. This is a mistake! This is the time when your organization needs smart, innovative and creative people. Training and Development opportunities are not just found in external training classes and seminars. As matter of fact the majority of training and development could be internal. Some of these ideas emphasize on what the employees want in training and development. They also give you the opportunities to create devoted employees who will benefit both your business and themselves through your training and development opportunities.
Internal Training - Job or Role Responsibilities You can impact training and development significantly through the employee’s current job or role responsibilities.
• Expand the responsibilities vertically to include higher level responsibilities
• Expand the responsibilities horizontally to include other same or similar level roles - i.e. cross train to other jobs or roles.
• Reassign responsibilities that the employee does not like or that are routine.
• Provide more information by including the employee in company meetings, and in your confidence.
• Provide more access to important and desirable meetings.
• Provide more opportunity to establish goals, priorities, and measurements.
• Provide more authority for the employee to self-manage and make decisions.
• Provide more opportunity for the employee to train or mentor other employees.
• Enable the employee to spend more time with his or her boss or mentor.
• Invite the employee to participate and contribute to departmental or company-wide decisions and planning.
• Assign the employee to head up projects or teams.
External Training - Seminar, Certification and Formal Education
• Enable the employee to attend an external seminar.
• Enable the employee to attend an internally offered training session.
• Ask the employee to train other employees with the information learned at a seminar or training session.
• Purchase business books for the employee and offer the time at a department meeting to discuss the information or present the information learned to others.
• Offer training on an Intranet or on the company website.
• Pay for the employee to take online classes and identify low or no cost online training.
• Provide a flexible schedule so the employee can take time to attend university, college, or other formal educational sessions.
• Provide tuition assistance to encourage the employee's pursuit of additional education.
One of the secrets from "The Breakthrough Company" by Keith McFarland is "Talent is contagious". The breakthrough companies he studied in his book also focused on creating systems that help their employees grow along with the organization - "build a place where ordinary people can do extraordinary things". .
Strategic HR Planning in Today's Turbulence Economy
January 31, 2009
In these times of great economic turbulence, the importance of human resource planning is more apparent than ever. A short-sighted lay-off, intended to temporarily reduce overhead, can result in much heavier long-term costs. You may one day regret letting people go when you’re spending time and money to hire and train new staff. Plus, you lose profits when you lose experienced, knowledgeable employees. In contrast, a smart human resources plan encourages your organization to keep a longer view of things and retain talent so that, once this economic upheaval has calmed down, you’ll have a committed team intact.
There are six key components to successful HR planning that we will cover in greater detail in future posts:
• Know the company/organization’s strategic plan.
• Scan external environment.
• Assess internal workforce.
• Forecast workforce demand.
• Forecast workforce supply.
• Develop programs, policies and practices to align workforce supply and demand.
Remember the importance of human resource planning in our current scenario of widespread downsizing and layoffs. Think long-term when it comes to HR planning. Support and retain your best talent. And, that way, you’ll help your organization prepare for long-term success by aligning the mission of the organization with the talent that you have and the talent that you will need in the future.
What is Human Resource and How Does it Benefit My Bottom Line?
December 1, 2008
The objective of Human Resources Management is to maximize the return on investment from the company's human capital and minimize financial risk. A Human Resources Professional carries out the HR administrative functions in an effective, legal, fair and consistent manner for the organization to:
• Find Efficient & Proficient Personnel
• Eliminate Problem Employees
• Build a TEAM Environment
• Improve Human Equity
• Meet Business Evolution
• Right Size Companies
• Achieve Organizational Goals
• Eliminate Regulatory Headaches