February Newsletter

OUR VIEW OF THE 2010 EMPLOYMENT LANDSCAPE

At the time of this writing we are experiencing our second major winter storm this season. Like most of you I spent the last few hours shoveling what the snow plow contractors call "white gold". Don't get me wrong, I'm happy that those folks have this opportunity to make some extra money but I have another name for this frozen mess that is not quite as endearing. Needless to say, I've had it with winter already and I find myself escaping "snowmageddon" and drifting into the beautiful landscaped gardens in the photo above. So in keeping with the theme, here is our view of the current employment landscape that will impact business owners this year.
Employee Turnover and Retention
Most experts agree that as the economy continues to recover and employment opportunities increase, top talent will seek to leave their current employer for what they perceive to be greener pastures. While thankful to have survived layoffs and restructuring many of these folks are emotionally drained from the carnage that took place in their organizations and need to mentally separate from the past. It's a difficult task for employers to counteract these memories but for the all-star players on your team it's worth trying. Let them know how important they are in helping rebuild the organization and thank them for coping with all of the changes. Your vote of appreciation and recognition may give you the winning edge.
Employment Discrimination Cases
2009 statistics reveal some interesting trends. For the first time retaliation claims are tied with race discrimination as the most common type of charge filed with the EEOC. Race discrimination claims held the top spot for many years but with the increased pressure on companies to operate with high integrity and morality, more and more employees are coming forward to blow the whistle on what they feel to be impropriety at the top. The accused business owner or executive often retaliates against this perceived act of disloyalty and creates the basis for the charge.
Another surprising statistic is the dramatic increase in male sexual harassment charges. Over the past several years the number of male workers claiming they were the victim of sexual harassment has doubled. Many believe this is attributable to the increase in women executives in the workplace and in some cases the desire to humiliate someone during tough economic times in an effort to secure one's own place in the organization. Protecting your company against either of these issues is as simple as having an "open door" policy in place that encourages employees to come forward without hesitation to discuss their perceptions with an executive or member of management. Training managers to properly handle these discussions is also a critical element in the process.
Wage and Hour
If there is one area where I believe we will see increased activity it's in wage and hour claims. In a previous newsletter I wrote that the Wage and Hour Division of the Department of Labor was publicly embarrassed when one of their investigators was recorded trying to deter a caller from filing a claim. In response, an additional 250 field inspectors were hired to increase visits to employers, conduct audits and correct violations. This increased inspection workforce will not bode well for the companies that don't pay much attention to timekeeping records, meals, breaks, employment of minors and mandatory workplace postings. Fines for violations are steep and can be assessed for actions that occurred up to 3 years before. My advice on this one.... Get some help from your HR professional and accountant to make sure you are in compliance.
Labor Management and Union Avoidance
The Employee Free Choice Act still has legs and most agree that we will likely see some form of this legislation approved in 2010. The current administration received substantial campaign contributions from organized labor and has already indicated their public support of the "card check" process. Fortunately, saner heads have prevailed and it appears that the secret ballot election process will be maintained in some format, albeit with a diminished campaign period. Again, training your managers to identify warning signs of union related activity is a key component in maintaining a union free workplace.
If we can help you with any of these employment "land mines" please contact us. Oftentimes a free consultation will uncover issues that can save you big money and let you get back to focusing on what's really important...growing your business!

P.S.
Thanks for all the comments on the holiday poem from last issue. Your kind words are greatly appreciated.

Phil