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HR Bulletin August, 6, 2010

The August 2010 issue of HR News magazine (5.05 MB) is now online.
The Summer 2010 issue of Public Personnel Management (2.3 MB) is available online.
Press releases on the IPMA-HR Web site may be accessed here.
To access archived issues of the HR Bulletin, click here; you must be a member of IPMA-HR in order to access these archived issues.

Pay Increases Suspended; State Governments Especially Hard Hit

In a survey released July 30, the International Public Management Association for Human Resources (IPMA-HR) and Fox Lawson & Associates, a division of Gallagher Benefit Services, found that a high percentage of employee increase and pay structure budgets were frozen or suspended for this year.

Sixty percent of all organizations reported suspending pay increases and 44 percent reported suspending pay structure increases. State governments appear to be especially hard hit by the suspension of employee increases and pay structure increases with 91 percent reporting pay freezes and 73 percent of state suspending pay structure adjustments.

“The findings of this survey are consistent with data that we have been reviewing from other sources. The impact of the current economic conditions is not only having a direct effect on pay now, but will likely have an impact on the work environment in the future,” said Jim Fox, of Fox Lawson & Associates.

“We are finding that forward thinking organizations are taking note and starting a conversation with their elected officials about how work needs to be reorganized for long term success for both the organization and the employee,” continued Fox.

The survey asked IPMA-HR members to answer the question, “What actions and changes, if any, has your organization taken or is planning to take in regards to your pay system to address the current economic conditions?” Common actions taken by organizations participating in the survey included:

  1. Eliminating or suspending pay for performance programs (23%)
  2. Conducting a compensation study (19%)
  3. Eliminating or suspending incentive and bonus plans (18%)
  4. Postponing a compensation study or lengthening the time between salary surveys (14%)
  5. Lengthening the time between pay increases (13%)

For 2010, employee increase budgets were forecasted by organizations at less than one percent. Only eight percent of responding organizations have made no changes to their pay systems due to economic conditions and only three percent expect to make no changes during the rest of 2010.

Data was collected from 317 government employers across the country between June 29 and July 13.

IPMA-HR and Fox Lawson will continue to conduct short, online surveys regarding pay administration related topics throughout the remainder of 2010. If you have any questions regarding this survey, please contact Bruce Lawson, either by e-mail at bruce_lawson@foxlawson.com, or by phone at (602) 840-1070, or Jim Fox, either by e-mail at jim_fox@foxlawson.com, or by phone at (651) 635-0976.

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New Law to Increase Health Coverage of Dependent Children

WASHINGTON – A recent law that requires group health plans and insurers to make dependent coverage available for children until they attain the age of 26 will increase employment-based coverage by estimates ranging from 680,000 to 2.12 million individuals, according to recently released regulations.

However, a study published today by the nonpartisan Employee Benefit Research Institute (EBRI) notes there is reason to believe that estimates of the dependent-child mandate understate the size of the population that might enroll in their parents’ employment-based coverage. In addition, the costs of the mandate are expected to increase health insurance premiums about 0.7 percent in 2011, one percent in 2012, and one percent in 2013, says the study in the August 2010 EBRI Notes.

For instance, the EBRI report identifies several shortcomings in regulatory assumptions that the 2.6 million 19- to 25-year-olds in states that already allow them to enroll in extended coverage are unlikely to enroll under PPACA; it is largely impossible to factor in parents’ decisions when it comes to enrolling their children; contrary to regulatory assumptions, about three million of the 7.5 million 19- to 25-year-olds with some other form of coverage (such as Medicaid or Tricare) will be eligible to enroll in the PPACA program; and more adult children are likely to become eligible as they gain employment.

When compared with the population of workers with employment-based health coverage, the uninsured population age 19-25 is more likely to be male, older, Hispanic, and less physically and mentally healthy, the study says. It was also determined that the uninsured population is less likely than the population with employment-based health coverage to use preventive health services, to exercise, and to be of normal weight. The uninsured are more likely to smoke and more likely to have asthma.

The Patient Protection and Affordable Care Act (PPACA) enacted March 23, 2010, and the Health Care and Education Reconciliation Act (HCERA) enacted March 30, 2010, require that group health plans and insurers make dependent coverage available for children until they attain the age of 26 regardless of tax, student, or dependent status as it relates to financial support.

Group plans and insurers also may not limit dependent coverage based on whether the child is married, although the law does not extend the mandate for access to coverage to the married child’s spouse and/or children. Grandfathered group health plans are not required to offer coverage to adult children if they currently have their own employment-based coverage or if they are eligible for such coverage.

The mandate to offer coverage to adult children ages 19-25 takes effect for insurance policy years that begin on or after September 23, 2010. However, many insurers have already announced that they will adopt the requirements of the law early.

“It is critical that group plans and insurers understand the size and characteristics of the 19- to 25-year-old population that might be eligible for their parents’ health coverage in order to determine the impact that this provision of PPACA may have on enrollment and costs of employment-based coverage,” Paul Fronstin, director of the EBRI health research and education program, writes in the conclusion of the study.

EBRI is a private, nonprofit research institute based in Washington, D.C., that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby and does not take policy positions.

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Employers Still Giving Raises, Mostly to High Performers
WorldatWork 37th Annual Salary Budget Survey Analyzes Employer Pay Strategies

WASHINGTON – U.S. employers are reporting a 2.5 percent average salary budget increase across all employee categories for 2010, which means many employees may expect a base pay raise of around 2.5 percent before the year is over. However, the size of the raise changes when the employee’s performance is factored in. Low performers can expect to see minimal increases of up to 0.7 percent or nothing at all, middle performers might expect a nominal base pay raise of 2.4 percent, and high performers may expect an average of 3.7 percent (54 percent higher than a middle performer). Surveyed employers reported that roughly 24 percent of employees are rated as high performers, while most are classified as middle performers.

These were just a few of the conclusions drawn from theannual WorldatWork 2010-2011 Salary Budget Survey, the largest survey of its kind with more than 2,497 respondents representing 15.5 million U.S. employees.

“With underfunded salary budgets this year, employers want the most bang for their buck,” said Anne C. Ruddy, CCP, president of WorldatWork. “They are no longer averse to withholding merit increases for poor performers so they can afford to grant meaningful increases to better performers.”

The survey also found that one in three companies has a separate promotional budget as standard practice. A promotion could mean an additional seven to eight percent increase for the promoted employee’s base salary. In addition, a top performer can expect to benefit from an employer’s variable pay program. “In this economy, being an average performer just doesn’t cut it anymore,” said Alison Avalos, research manager for WorldatWork. “Companies expect performance and are willing to reward employees based on organization success, individual performance or both. Pay for performance is alive and well.” For 2010, employers are budgeting an average of five to 12 percent for variable pay, depending on employee category (e.g., exempt, non-exempt salaried and hourly, officers/executives).

Top Places for Top Performers
Metro area is another variable influencing the size of salary increases for top performers. While surveyed employers reported an average pay increase of 3.7 percent for exceptional performers, employers in the following metro areas reported above-average base pay increases for the cream of the crop:

Metro

Average raise for top performers*

San Jose, CA

4.10%

Boston, MA

4.00%

Portland, OR

4.00%

Seattle, WA

4.00%

Houston, TX

4.00%

Detroit, MI

4.00%

Washington, D.C.

3.90%

Atlanta, GA

3.90%

San Diego, CA

3.90%

Tampa, FL

3.90%

*Based on average pay increases for top performers, percentage of companies awarding raises (not shown) and percentage of employees classified as high performers (not shown).

About the Survey: WorldatWork collected survey data in April 2010. Survey respondents are WorldatWork members employed in the HR, compensation and benefits departments of mostly large U.S. companies. A total of 2,497 respondents participated. The full report for the WorldatWork 2010-2011 Salary Budget Survey will be available in early August at www.worldatwork.org/salarybudgetsurvey. The top level report is available now. An educational Webinar will be held on August 25 for HR and compensation professionals (the Webinar is free for this year’s survey participants and subscribers).

WorldatWork (www.worldatwork.org) is a global human resources association focused on compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce. Founded in 1955, WorldatWork provides a network of more than 30,000 members in 100 countries with training, certification, research, conferences and community. It has offices in Scottsdale, Ariz., and Washington, D.C.

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New CareerBuilder Survey Reveals Top Body Language Mistakes Candidates Make in Job Interviews

CHICAGO – Job seekers with shifty eyes, reluctant smiles or fidgety limbs in an interview may be hurting their chances of landing a job. A new CareerBuilder survey of more than 2,500 hiring managers reveals that failure to make eye contact (67 percent), lack of smile (38 percent) and fidgeting too much (33 percent) would make them less likely to hire someone. The CareerBuilder survey was conducted between May 18 and June 3, 2010.

When asked overall what additional body language mistakes would make them less likely to hire job candidates, hiring managers reported the following:

  1. Bad posture – 33 percent
  2. Handshake that is too weak – 26 percent
  3. Crossing arms over their chest – 21 percent
  4. Playing with their hair or touching their face – 21 percent
  5. Using too many hand gestures – 9 percent

“In a highly competitive job market, job seekers need to set themselves apart in the interview stage,” said Rosemary Haefner, vice president of human resources for CareerBuilder. “All that pressure, though, may have some job seekers making body language mistakes that don’t convey a confident message. To avoid these faux pas and ensure you’re remembered for the right reasons, try practicing ahead of time in front of a mirror or family and friends.”

Haefner offers the following tips to avoid body language missteps during an interview:

Keep calm. To make the best impression and avoid nervous body language, take measures to stay as calm as possible before the interview. Leave the house with plenty of time to get to the interview, avoid caffeine if possible and take deep, calming breaths.

Practice makes perfect. The old adage proves true in this case, as you’ll feel more comfortable the more you prepare for the interview, and in turn, it will help decrease your anxiety. Rehearse ahead of time with friends or family, do your homework on the company and be prepared for common interview questions.

See for yourself. Viewing yourself while speaking can help you notice what body language mistakes you might be making without realizing. Look in a mirror while practicing interview responses or videotape yourself to figure out your typical physical movements, and whether or not you need to change them.

Survey Methodology
This survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder.com among 2,534 U.S. hiring managers (employed full-time; not self-employed; non government); ages 18 and over between May 18 and June 3, 2010 (percentages for some questions are based on a subset of U.S. Employees, based on their responses to certain questions). With a pure probability sample of 2,534 one could say with a 95 percent probability that the overall results have a sampling error of +/- 1.95 percentage points. Sampling error for data from sub-samples is higher and varies.

CareerBuilder is a leader in human capital solutions, helping companies target and attract their most important asset—their people. CareerBuilder works with employers, providing resources for everything from employment branding and data analysis to recruitment support. Owned by Gannett Co., Inc., Tribune Company, The McClatchy Company and Microsoft Corp., CareerBuilder and its subsidiaries operate in the United States, Europe, Canada and Asia.

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IPMA-HR Launches New Employee Benefit Program

The International Public Management Association for Human Resources (IPMA-HR) is pleased to announce the Government Employee Marketplace (www.govmarket.org), as a benefit to government employees. The Web site is a free service available to all. Govmarket.org aggregates various government employee discount programs, features pre-negotiated discounts with major suppliers and aggregates other discounts and limited offers. Employees self-select the products and services they wish to use and may also select notification features for specific products.

Key features of the program include:

  1. Free - absolutely no cost to join, no membership fee, no activation fee, no access fee
  2. Significant savings - exclusive volume discounts, collective markdowns and promotions, seasonal sales, free shipping
  3. Convenience - one online portal, thousands of brand name merchants, Internet-based and also retail-based
  4. Simple - user friendly, easy to navigate, search and categorization functionality, minimal registration and login requirements
  5. Local Access - get information on local gas prices, travel search, sitter finder, dining and grocery deals

The local access feature also allows users to refer local providers and manufacturers to the site for featured discounts they offer locally to government employees or the public at large. To sign up for the program, visit www.govmarket.org and follow the instructions to join.

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Executive Council Vacancy

The IPMA-HR Executive Council, which is the Association’s Board of Directors, needs to fill one vacancy. The governance changes that were approved recently by the IPMA-HR membership have changed the way in which some of the positions on the Executive Council are filled. Under the new procedure, the IPMA-HR Nominating Committee will develop a candidate slate and this slate will need to be approved by the IPMA-HR Executive Council.

The IPMA-HR Nominating Committee is seeking a diverse group of candidates and urges IPMA-HR members who meet the qualifications and are interested in serving on the Executive Council to submit an application. The applications must be received by IPMA-HR no later than 5 p.m., Eastern Daylight Time on Friday, August 20. The instructions and application can be accessed here. For additional information, please contact Neil Reichenberg, IPMA-HR’s executive director, at nreichenberg@ipma-hr.org.

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August 12 Webinar to Focus on Workforce Flexibility

Is your agency looking to improve employee performance, job satisfaction and work-life balance? Join us for an informative webinar on Thursday, August 12, 2010, from 1:00 p.m.-2:30 p.m. Eastern Time in which Partnership for Public Service Vice President of Research Bob Lavigna and Partnership for Public Service Associate Manager for Research Jennifer Carignan will share highlights from a recently-completed study on workforce flexibility in the government.

In July, the Partnership for Public Service and Booz Allen Hamilton released a report on the current state of federal government flexible work arrangements. “On Demand Government: Deploying Flexibilities to Ensure Service Continuity” examines the use of teleworking, compressed workweeks, flextime, part-time schedules and job sharing in the federal government, the barriers to expanded use and offers recommendations for change. These results apply to all levels of government.

Sign Up Today and Your Entire Staff Can Listen In for One Fee 
Download your registration form and fax the completed form to (703) 684-0948, or e-mail your completed form to meetings@ipma-hr.org.

The price for IPMA-HR members to participate in the webinar is $150; the price for nonmembers to participate in the webinar is $200.

There is no limit to the number of staff from your office participating in this webinar. In the room where staff will participate, you’ll need a speaker phone and a computer. Prior to the event, you will get instructions on how you will link to the webinar by telephone and on the Internet. One registration fee gives you a unique access code for one phone line and a link to the Web component. As many of your staff that you can pack into a room can attend and listen in by speakerphone.

Please note: Additional phones lines require additional access codes, which means separate registrations for each additional access code you need.
 
Cancellation Policy
You may cancel your registration up to 48 hours in advance of the webinar, and transfer your registration to a future webinar without penalty. If you do not transfer your registration, you must cancel no later than one week prior to the webinar date to receive a full refund of your fee.

Questions? Contact us by phone at (703) 549-7100, or by e-mail at meetings@ipma-hr.org.

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IPMA-HR Developing Competencies for HR Success Online Class Begins August 25

The IPMA-HR Developing Competencies for HR Success online course is a comprehensive training program that teaches the benefits of understanding HR competencies, how to apply them and how to integrate them into business plans. The next scheduled course will begin on August 25.

As a standalone training program, completing Developing Competencies for HR Success is the best way to become a strategic player within your organization. This course will help you and your staff shift from managing “people issues” to managing “people-related business issues.”

Learn about self-assessment, building teams and coaching staff, resolving disputes and reaching consensus, creating a risk-taking environment, communication skills, building trust relationships, using consensus- and coalition-building skills, and more with IPMA-HR’s Developing Competencies for HR Success.

The online training consists of 11 weekly sessions. Benefits of taking part in the program online include the following:

  1. You decide when and where to take classes.
  2. You can complete the program in 11 weeks.
  3. You can continue to work full time while participating in the classes.

The entire program costs $795 for IPMA-HR members; the cost for nonmembers to take part in the course is $995.

Completing IPMA-HR’s Developing Competencies for HR Success is a step toward certification. At the core of the IPMA-HR certification program is an appreciation of the importance of HR competencies. If you or any member of your staff desires to become certified as an IPMA-HR Certified Professional (IPMA-CP) or an IPMA-HR Certified Specialist (IPMA-CS), learning the concepts that are the foundation of this course is a necessary step.

Click here to enroll today for this online class.

Visit www.ipma-hr.org to learn more about IPMA-HR’s Developing Competencies for HR Success, or contact IPMA-HR, either by e-mail at meetings@ipma-hr.org, or by phone at (703) 549-7100.

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On the Calendar

August 25
Online Course
Developing Competencies for HR Success

September 19-22, 2010
Eastern Region Conference
Adlephi, Md.

September 22
Online Course
Developing Competencies for HR Success

October 2-6, 2010
2010 International Training Conference & Expo
Sheraton Seattle Hotel & Towers
Seattle, Wash.
Contact IPMA-HR Director of Membership and Professional Development Jessica Allen at jallen@ipma-hr.org or click here for more information.

October 6
Online Course
Managing Employee Performance as an HR Business Partner

Watch the HR Bulletin and our Web site for more information on educational opportunities.

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