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HR Bulletin, September 3, 2010

The September 2010 issue of HR News magazine (5.85 MB) is now online.
The Fall 2010 issue of Public Personnel Management (3.38 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.

IPMA-HR Files Comments on Healthcare Regulations

IPMA-HR joined the Employers Network for Responsible Options, Laws and Leadership (ENROLL) coalition in filing comments on the interim final rules implementing the healthcare reform laws. The coalition includes several other employer groups, including the College and University Professional Association for Human Resources.

“The healthcare reform law’s most immediate changes and costs will rest on employers, which makes it appropriate for employers to ensure there are meaningful comments,” said Philip A. Miscimarra, a partner with the law firm of Morgan, Lewis & Bockius LLP, which represents the ENROLL coalition.

The comments focused on the “grandfather” provisions, under which existing healthcare benefit plans are exempt from various requirements and on the annual lifetime limit and recession provisions which affect health reimbursement arrangements and part-time employee benefits.

Specifically, in areas where IPMA-HR and ENROLL proposed changes, the interim final regulations:

  • Govern what healthcare plans are deemed “grandfathered”
  • Make healthcare reform requirements immediately applicable to certain collectively bargained healthcare plans
  • Provide for a loss of “grandfathered” status based on some relatively modest benefit plan changes
  • Adopt a strict interpretation of the new law that could invalidate extremely useful standalone health reimbursement arrangements and part-time employee arrangements

The comments were filed with the Departments of Treasury, Labor and Health and Human Services. They are available on the IPMA-HR advocacy Web page.

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Partnership for Public Service Releases 2010 Best Places to Work in the Federal Government Rankings, BestPlacestoWork.org

WASHINGTON – The nonprofit Partnership for Public Service, on Wednesday, Sept. 1, released the 2010 Best Places to Work in the Federal Government rankings. The rankings measure employee satisfaction and are based on a survey of more than 263,000 federal workers at 290 federal agencies and subcomponents.

“The Best Places to Work rankings are an important tool in improving federal employee commitment and satisfaction,” said Max Stier, president and CEO of the Partnership for Public Service. “When agencies are badly managed and workers are dissatisfied, the public suffers.”

The Partnership for Public Service honored the top 10 large, top five small and four most improved Best Places to Work agencies today in Washington, D.C. Top honors for large agencies go to: 

  1. Nuclear Regulatory Commission
  2. Government Accountability Office
  3. Federal Deposit Insurance Corporation
  4. Smithsonian Institution
  5. National Aeronautics and Space Administration
  6. Social Security Administration
  7. Department of State
  8. General Services Administration
  9. Department of Justice
  10. Intelligence Community

Top honors for small agencies go to:

  1. Surface Transportation Board
  2. Overseas Private Investment Corporation
  3. Congressional Budget Office
  4. Federal Mediation and Conciliation Service
  5. Peace Corps

Most improved of the 31 large federal agencies ranked is the Department of Transportation, increasing its score by 15.8 percent and moving up in the rankings from 30 (out of 30) in 2009 to 26. The Department of Treasury also has a significant score increase of 8.2 percent, moving up from a 2009 ranking of 17 to 12 in the large agency rankings. Biggest movers among the 34 small agencies include the Federal Labor Relations Authority, with a 250 percent increase, moving from 32 (out of 32) in 2009 to 20 in the new rankings, and the Federal Communications Commission, with an increase of 23.6 percent, moving from 28 to 21.

According to the Best Places to Work analysis, employee satisfaction is at an all-time high of 65 out of 100, a 7.4 percent jump from 2003 when the rankings were first released, with 68 percent of agencies improving their index score since the last rankings in 2009. The primary drivers are effective leadership and a belief by employees that their skills are well-suited to their agency’s mission.

The Partnership for Public Service works with American University’s Institute for the Study of Public Policy Implementation and the Hay Group to produce the rankings.

“The Best Places to Work analysis is an important benchmark for every agency that wants to increase productivity,” said Professor Robert Tobias, director of American University’s Institute for the Study of Public Policy Implementation and Key Executive Leadership Programs at American University's School of Public Affairs. “Those agencies who are increasing their scores are improving employee engagement which then directly leads to increased agency productivity.”

The rankings represent an in-depth look at the views of federal employees during the Obama administration. Agencies are ranked in three categories: large (2,000 or more employees), small or subcomponent, and in 10 workplace categories, including leadership, work/life balance, and pay.

The Best Places to Work analysis notes that employees in the private-sector continue to be more satisfied with their jobs, organizations and supervisors than their counterparts in the federal government.

“The rankings are important because they provide an early warning sign for agencies in trouble,” said Stier. “And, they provide a mechanism to hold agency leaders accountable for the health of their organizations and a roadmap for better agency management.”

The complete Best Places to Work rankings are available at bestplacestowork.org. Visitors can access trend analysis, demographic data and all 10 workplace categories, as well as generate custom reports and conduct side-by-side comparisons for up to three agencies.

The rankings are compiled by the Partnership for Public Service and American University’s Institute for the Study of Public Policy Implementation from the U.S. Office of Personnel Management’s annual Federal Employee Viewpoint Survey. The Best Places rankings were first produced in 2003, and again in 2005, 2007 and 2009.

The Partnership for Public Service is a nonpartisan, nonprofit organization working to revitalize our federal government by inspiring a new generation to serve and by transforming the way government works.

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Hewitt Survey Shows Employer Spending on 2010 Salary Increases and Variable Pay Awards Lower than Originally Anticipated

LINCOLNSHIRE, Ill. – While the economy is showing signs of improvement, U.S. employers remain concerned about the stability of the economy. This uncertainty is evident in the amount of money they are allocating toward pay raises and performance awards this year, according to a new survey by Hewitt Associates, a global human resources consulting and outsourcing company. Hewitt’s survey shows that companies are spending less on pay raises and variable pay awards in 2010 than they originally anticipated. But they are more optimistic about the future, with most expecting to bump up salary increases and variable pay awards in 2011.

Hewitt’s survey of more than 1,450 large companies shows that base salary increases for salaried exempt workers were 2.4 percent in 2010. These numbers are down from what employers originally projected in August 2009 (2.7 percent), but still higher than the record-low pay raises workers saw in 2009 (1.8 percent).

Salary increases are expected to bounce back slightly in 2011. For salaried exempt workers, salaried nonexempt workers and executives, Hewitt’s survey shows base pay increases of 2.9 percent. Nonunion hourly and union employees can anticipate salary increases of 2.8 percent.

“Going into 2010, employers were optimistic that they would be able to allocate more money towards compensation, but the lagging economy and lower-than-expected company performance forced many employers to revise their spending,” said Ken Abosch, leader of Hewitt’s North American Broad-Based Compensation Consulting practice. “We predict a similar situation in 2011. Right now, employers believe they’ll be able to raise salaries next year, but if the economy remains unstable, they’ll be forced to readjust base pay increases to offset other spending or revenue shortfalls.”

While 2010 salary increases are lower than expected, the news isn’t all bad. The number of companies freezing salaries this year was down significantly, and this trend is expected to continue into 2011. In 2010, 21 percent of organizations froze salaries, compared to nearly half (48 percent) in 2009. Just 10 percent of employers anticipate salary freezes in 2011.

Variable Pay Expected to Rebound in 2011
Like salary increases, spending on variable pay—or performance-based awards that must be re-earned each year—was also lower than expected in 2010 due in large part to lackluster company performance. In 2010, spending on variable pay as a percentage of payroll for salaried exempt workers was 11.3 percent, down from a record high of 12.0 percent in 2009. Spending in 2011 is expected to creep upward to 11.8 percent—which would be the second highest increase since Hewitt began tracking the data in 1976.

Hewitt’s survey also shows employers are—by and large—depending on company performance to budget for variable pay, though some are looking at additional funding sources. About three quarters (76 percent) are budgeting for spending on variable pay through improved company performance, while 12 percent are doing so through reduced merit increases and 10 percent by reductions in head count. Just five percent of companies are budgeting for variable pay through reduced spending on benefits, while four percent are doing so through pay freezes.

“Rising spending on variable pay indicates a shift in overall pay philosophies,” explained Abosch. “Rather than rewarding employees for years of service, employers are tying a greater percentage of workers’ pay to their individual performance and the overall performance of the company. Structuring compensation programs this way gives organizations greater freedom to adjust budgets based on the economy and their performance, rather than being locked into the fixed costs associated with increasing base pay.”

2011 Salary Increases by Industry and City
According to Hewitt’s survey, workers in some U.S. cities can expect to see salary increases higher than the national average in 2011. These cities include Washington, D.C. (3.4 percent), Houston (3.3 percent) and Pittsburgh (3.2 percent). Cities that can expect lower-than-average increases in 2011 include Philadelphia (2.5 percent), and Atlanta and Los Angeles (2.6 percent each).

The industries that can expect to see the highest salary increases in 2011 include accounting/consulting/legal (3.3 percent); and energy, aerospace, pharmaceuticals, construction/engineering and real estate (3.2 percent each). The lowest increases are projected to be in education (2.3 percent), metals fabrication (2.6 percent), and automotive and forest/paper products (2.7 percent each).

Hewitt Associates provides organizations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt works with companies to design, implement, communicate, and administer a wide range of human resources, retirement, investment management, health care, compensation, and talent management strategies. With a history of client service since 1940, Hewitt has offices in more than 30 countries and employs approximately 23,000 associates.

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Most Employees Believe Managers Perform Well, But One in Five Managers Perceived as Incompetent

PHILADELPHIA, Pa. – Half of all employees believe their managers are competent or very competent, according to a poll conducted by Right Management—the talent and career management expert within Manpower, a leader in employment services. However, an alarmingly high level of employees—33 percent—think their managers are either somewhat or completely incompetent with an additional 17 percent only marginally impressed with managerial competence.

The firm conducted the poll with nearly 800 employees throughout North America. Right Management asked the question: “How would you rate your manager’s performance?” The findings were:

  • 28% Very competent
  • 22% Competent
  • 17% Somewhat competent
  • 13% Somewhat incompetent
  • 20% Incompetent

“It surprised us that as many as half of employees are less than enthused about their manager’s performance,” said George P. Herrmann, executive vice president Americas for Right Management. “The recent business climate has necessitated many fast and reactive changes—often quick decisions without explanations of rationale provided to employees. We interpret the results as highlighting the lack of trust between many employees and their managers.

“With the volume of change surrounding most businesses—layoffs, restructurings, changes in business strategy—most managers have had their hands full managing the business and meeting aggressive goals with fewer resources,” noted Herrmann. If people don’t know why things are happening—the rationale or the business case—as well as what the plan is moving forward, they are less likely to feel confident about how things are being handled.”

Herrmann cautioned that the danger is that if employees don’t view managers as competent, their commitment to get the job done will be half-hearted. “Believing that managers have the capability to make the organization successful is a top driver of employee engagement. And engagement is critical when companies need to draw on all their resources to meet business objectives and weather the economic environment.”

One common challenge is that many organizations don’t provide managers with coaching or support to develop the behaviors that are important for driving engagement and leading through all the changes faced regularly in today’s business climate,” advised Herrmann. “Many managers are focused on ‘managing’ and getting things done, with little effort on leading and empowering others to navigate organizational change. ‘Managerial competence’ needs to be redefined and then align the manager’s development, recruitment and succession initiatives accordingly.

“It’s a manager’s responsibility to make sure that employees know their role in the future success of the organization—no matter what the change in business strategy,” said Herrmann. “Without knowing this, trust will be eroded, employees will become disengaged and business goals will not be realized.”

Right Management surveyed 764 individuals via an online poll in July 2010.

Right Management is the talent and career management expert within Manpower, a leader in employment services. Right Management helps clients win in the changing world of work by designing and executing workforce solutions that align talent strategy with business strategy. With offices in more than 50 countries, Right Management partners with companies of all sizes.

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Advance Rate and Hotel Room Block Ending Soon for the 2010 IPMA-HR International Training Conference & Expo

Join us for the 2010 IPMA-HR International Training Conference & Expo, which will be held October 2-6 at the Sheraton Seattle in Seattle, Wash. This conference is the largest gathering of public sector HR professionals anywhere and you don’t want to miss it! Register now before the Advance Rate and room block expire on September 9, 2010.

There is a lot going on this year at the 2010 International Training Conference that you don’t want to miss! Register now and save $50 off your registration!*

  • More than 20 Educational Sessions including 3 outstanding general sessions:
    • The FISH! Philosophy, led by John Christensen, playground cirector of ChartHouse Learning. Make a virtual visit to Seattle’s Pike Place Fish Market and explore how the four practices of the FISH! Philosophy – “Play! Make Their Day! Be There! And Choose Your Attitude!” can be used to create energetic, unified and successful work environments.
    • Maximizing Employee Performance, led by Rodd Wagner, principal of Gallup, will be discuss key strategies to meet the challenge of providing more and better services during today’s tough economy.
    • Cindy Maher and Carol Grannis, cofounders and managing partners of Leading Edge Coaching & Development will be leading a dynamic session called “Reaching Resonance: Engaging Organizations through Emotional Intelligence,” that will demonstrate how to increase employee engagement and organizational success through self-awareness, social-awareness, relationship management, and self-management.
  • Opportunity to earn up to 11 recertification credits for IPMA-CP and CS certifications
  • Welcome reception at the Space Needle in downtown Seattle
  • Golf tournament at West Seattle Golf Course that offers views of downtown Seattle and Elliot Bay
  • Networking sessions to interact with your peers about hot topics

To review a full list of session descriptions, click here. Don’t forget that the advanced rate ends September 9, so make your plans and register for the International Training Conference & Expo today!

*Advance Rate is $650 for members, $755 to join IPMA-HR now, and $850 for nonmembers. After September 9, 2010, the rate will increase to $700 for IPMA-HR members, $805 to join IPMA-HR now, and $900 for nonmembers.

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Voting Open for IPMA-HR Election

The IPMA-HR Nominating Committee has selected the slate of candidates for this year’s election to fill the position of president-elect.

For president-elect, the nominees are Kimla Milburn, IPMA-CP, human resources director, city of Annapolis, Md.; and Mark van Bruggen, IPMA-CP, HR consultant team leader, New Jersey Civil Service Commission. Click here to read a statement and biographical sketch for each candidate.

Vote now! (You’ll need to enter your membership identification number on the Web site in order to vote.)

Voting closes on Monday, September 20, and the ballots will be counted on Tuesday, September 21.

If you have any questions about this year’s election, please contact Neil Reichenberg at nreichenberg@ipma-hr.org, or call (703) 549-7100. Forgot your member ID? Please call (703) 549-7100 for immediate assistance, or contact IPMA-HR via e-mail at membership@ipma-hr.org.

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IPMA-HR Federal Advisory Committee Calls for New Members

The IPMA-HR Federal Advisory Committee (FAC) has been in business for about one-and-a-half years and has reached several milestones in its short tenure. Chief among those milestones is the extensive outreach and opportunities for dialogue we have identified for professionals within the federal HR community. The 2009 IPMA-HR International Training Conference afforded the opportunity for a sponsored breakfast for federal participants as well as engagement with the state and local HR communities. In 2010, FAC members have been very active in building on that success with two FAC members serving on the conference committee and the FAC’s commitment to host not only two workshops, but also a federal HR forum at the 2010 IPMA-HR International Training Conference in Seattle. Another highlight was the very successful HR Directors Forum held in April 2010, where a group of HR directors from a cross-section of federal agencies came together to share best practices, discuss challenges and successes and build a network of peers. You can learn more about the mission, current committee members and activities of the FAC by clicking here.

The IPMA-HR FAC has experienced some turnover of FAC members and is looking to fill out its complement of committee members. In order to continue its momentum, the FAC needs to attract an active, committed, passionate and diverse group of federal human resources professionals to serve as Federal Advisory Committee members for a two-year term. The FAC is looking for highly motivated individuals who can represent the interests and insights of the federal HR community from across the county, and as wide a range of federal agencies as possible. To serve on the ccmmittee, you must currently be a federal employee in the human resources/human capital profession and an IPMA-HR member in good standing.

Don’t stand on the sidelines! Get involved in addressing the needs of your community by submitting your credentials for appointment to a Federal Advisory Committee member position. Please submit your bio and a short statement that addresses your interest in serving to IPMA-HR Director of Membership and Communications Jessica Allen, by e-mail at jallen@ipma-hr.org, no later than Friday, September 17, 2010. If you would like to learn more about the committee and its current members, please let Jessica know and she'll make sure one of the committee members reaches out to you. We guarantee that you will find being a member of the FAC an enjoyable and career enhancing experience.

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On the Calendar

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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