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IS THE ECONOMY ON THE UPSWING? SPECIAL ISSUE: ECONOMIC FORECAST WORKFORCE VOL. 4 NOW SM A PUBLICATION DEDICATED TO WORKFORCE MANAGEMENT SOLUTIONS TO VIEW AN INTERACTIVE VERSION OF THIS PUBLICATION, GO TO: www.adp.com/workforce4 MANAGING YOUR ORGANIZATION’S TOP PERFORMERS WHAT’S NEW IN HR TECHNOLOGY TOP 3 FLSA VIOLATIONS & HOW TO AVOID THEM MANAGING YOUR ORGANIZATION’S TOP PERFORMERS WHAT’S NEW IN HR TECHNOLOGY TOP 3 FLSA VIOLATIONS & HOW TO AVOID THEM RECESSION RELIEF RECESSION RELIEF

Workforce Now Volume 4

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ADP has rewitten the book on Workforce Management. See how ADP can help you maximize your human capital.

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Page 1: Workforce Now   Volume 4

Is the economy on the UpswIng?

SPECIAL ISSUE: ECONOMIC FORECAST

WORKFORCEVOL. 4 nowSMA PUBLICATION DEDICATED TO WORKFORCE MANAGEMENT SOLUTIONS

To view an inTeracTive version of This publicaTion, go To: www.adp.com/workforce4

Managing Your organizaTion’s Top perforMers

whaT’s new in hr TechnologY

Top 3 flsa violaTions & how To avoid TheM

Managing Your organizaTion’s Top perforMers

whaT’s new in hr TechnologY

Top 3 flsa violaTions & how To avoid TheM

recession reliefrecession relief

Page 2: Workforce Now   Volume 4

When it comes to managing human resources, ADP wrote the book. Now, we’re adding a brand-new chapter that will redefine the way you approach workforce management. From reducing administrative burdens, to helping to control costs and mitigate risks, to managing talent, ADP Workforce Now brings together in a single, comprehensive solution the tools you need to meet your organizational goals.

For more info: www.adp.com/workforcenow1 800 cAll-ADP

ADP just rewrote the book on workforce management.

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? ? ??

8 RecessioN RelieF: is the ecoNomy oN the UPsWiNg?By making proactive recovery plans now, your organization can be more prepared for the upturn than it was for the downturn.

13 WhAt’s NeW iN hR techNology?Five questions you should be asking IT to ensure that your organization’s HR function is operating at peak productivity.

16 oN ReADeRs’ miNDsMike Taylor, Relationship Manager for ADP Workforce Now HR Services, addresses readers’ most pressing workforce management questions.

2 21st-ceNtURy stRAtegies FoR mANAgiNg toP PeRFoRmeRsWhen the employment tide starts to turn, will your company be swimming with it or against it? A look at emerging trends that are creating new jobs and different work styles.

5 steeRiNg cleAR oF comPeNsAtioN ViolAtioNsLearn more about the three most common FLSA blunders being committed by today’s employers — and your best bets for avoiding costly penalties.

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8

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ADP just rewrote the book on workforce management.

WORKFORCE NOW | 1

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21st-ceNtURy stRAtegiesFoR mANAgiNg toP PeRFoRmeRs When the employment tide starts to turn, will your company be swimming with it or against it? A look at emerging trends that are creating new jobs and different work styles.

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WORKFORCE NOW | 3

21st-ceNtURy stRAtegiesFoR mANAgiNg toP PeRFoRmeRs

30-50% of an annual salary to replace an entry-level employee, 150% to replace a mid-level employee, and up to 400% for a specialized worker or high-level executive. To put it in perspective, consider this: the Society for Human Resource Management recently estimated that it costs $3,500 to replace just one $8-per-hour employee.

the imPoRtANce oF beiNg AN “emPloyeR oF choice”Almost every business has a brand image, regardless of size, industry, or target audience. To recruit and keep the best candidates, employers have to cultivate their “employer brand” as well. Your goal is to become an employer of choice — one eagerly sought out by workplace newcomers and experienced talent alike.

It starts with communication. An employer of choice makes sure everyone is on the same page when it comes to the company’s products and services, procedures and processes, big-picture business goals, and current market strategies. Employers of choice also foster two-way conversation, seeking input and insight from the employee population at every level. Nine out of 10 employee suggestions or critiques may not be actionable, but the 10th could be a golden nugget of insight that wouldn’t have gotten to you any other way. Taking employee input seriously helps build a powerful employer brand.

DeVeloPiNg AND emPoWeRiNg skilleD stAFFeRsAn employer of choice invests in its employees by providing on-the-job training or helping them grow through outside resources. But it’s not enough to identify needs and provide opportunities — you also must remove any barriers that might get in the way, like workloads or scheduling.

To keep your best people from feeling like they have to jump ship to get ahead, they need to see there’s room for advancement within the company. This means evaluating job perfor-mance on a regular basis, in an organized manner, so that you or your managers can give

i t may take a little work, but if you look hard enough, you can find positive news about the employment outlook. That’s largely due

to the fact that emerging trends are creating new jobs and different work styles.

As people increasingly seek security, flexibility and opportunities, more companies are facing costly recruitment and retention issues as a result. It’s possible these trends could have a direct or indirect impact on your company’s workforce.

Here’s a look at some of the latest employment trends:

“hot desking” refers to workers who aren’t tied to a particular office or workstation, often working from their clients’ locations or from home. Being home-based is particularly appealing to parents and caregivers, for reasons that include quality-of-life issues as well as childcare costs.

Rapid technology advancements and upgrades are creating opportunities for technology professionals, especially those who specialize in networking, installation and support.

Similarly, the focus on sustainable or green business has resulted in growing opportunities for “green jobs” — positions that contribute to the conservation of energy, expansion of renewable energy sources, and conservation or improvement of the environment.

baby boomers are living longer and better medicine is helping them lead more productive lives. That means more experienced help is staying in the workforce longer.

What effect will these trends have on your organization, specifically your staffing needs? Slowly but surely, the workplace is shifting from a buyer’s market to a seller’s market. And too many employers consistently underestimate the ramifications and costs of replacing employees who depart voluntarily. Regardless of market conditions or employment statistics, you need to make every effort to retain your top performers.

Why? Sources indicate it costs an estimated

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employees feedback as well as point the way to improvement and/or growth.

Investing in technology also sends a strong message — one that shows your organization is forward thinking and committed to giving people the tools they need to thrive. For example, online benefits systems are one-stop destinations that employees can use to manage everything from their healthcare to their retire-ment plans. These convenient systems also give employees continuous access to important documents like company manuals and manage-ment reference materials, while paying addi-tional dividends by cutting down on many common but time-consuming tasks handled by your HR staff.

Similarly, payroll management systems can help reduce operating expenses while providing support and security. Other types of information, guidance and forms can also be housed online.

Just as your corporate brand serves as the foundation for your marketing efforts, your “employer brand” is a powerful lever for attracting and retaining a high-performing workforce.

So, what exactly is an employer brand? According to Aberdeen Group, a leading research provider, it’s the way your organization is perceived by your current employees, prospective job candidates, and the market at large — a perception that is reinforced by every interaction a company has with its employees and the marketplace.

In a 2008 study, Aberdeen found that enhancing company brand and reputation in the recruiting market was named as the number-one strategic action among best-in-class organizations. To succeed, the report found, organizations must seize every opportunity to create a brand that resonates both internally and externally, and is accurately aligned with the expectations of the current workforce. By leveraging a positive employer brand, companies can achieve significant improvements — not only in talent acquisition and retention, but in performance as well.

YOuR EmplOYER BRANd: What message is it sending?

When employees can directly access informa-tion or find answers on their own, managers are free to focus on strategic rather than administra-tive duties.

Finally, don’t underestimate the value of simple flexibility. Though not every firm can offer benefits such as on-site daycare or 100% telecommuting, be open to non-traditional arrangements like flexible work schedules or job sharing that demonstrate your organization’s support for work/life balance.

cUltiVAtiNg AND ReWARDiNg sUccessEvery business wants high-performing employees. By cultivating a culture that gives employees the balance of flexibility and accountability they need to feel challenged as well as valued, your organization is taking the right steps toward achieving “employer of choice” status in no time. n

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STEERING ClEAR oF comPeNsAtioN ViolAtioNs

learn more about the threemost common FlSA blunders

being committed by today’s employers — and

your game plan for avoiding

costly penalties.

in business, as in life, mistakes can have a certain value. But that doesn’t mean they can’t still be costly — especially if we don’t learn from our mistakes or those of others.

Nowhere is that advice more apt than when dealing with federal regulations such as the Fair Labor Standards Act (FLSA), which governs the rules for minimum wage, overtime pay, recordkeeping, and youth

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employment standards.Across multiple industries, it’s common to see

the same FLSA violations being committed time and again, according to a recent research paper by Vicki Lambert, CPP, president of Lambert and Associates, a firm specializing in payroll training.

According to Lambert, companies most commonly go astray in three major areas:

•Classifyingemployeesasexemptornon-exempt

•Countingthenumberofhoursworked•Calculatingovertimepay

On the surface, these three areas seem surprisingly simple. How could you possibly miscount the number of hours an employee has worked? In reality, getting it right is not so simple — and not so cheap if you get it wrong.

Tasked with enforcing the provisions of the FLSA is the Wage and Hour Division (WHD) of the U.S. Department of Labor — not exactly an agency you’d like to see knocking at your office door anytime soon. In 2008, the WHD recouped an estimated $185 million in back wages, in the process assessing employers over $3 million in civil penalties for overtime and minimum wage violations.

be AleRt to commoN comPliANce PitFAllsTo avoid contributing to the WHD coffers this year, re-examine your processes to ensure you’re remaining compliant in these major areas:

exempt vs. non-exempt employeesThe FLSA requires that all employees be paid at

least the federal minimum wage for all hours worked, and time and a half their regular rate of pay for all hours over 40 hours in a workweek unless specifically exempted.

These exemptions include bona fide executive, administrative, professional and outside sales employees. It’s important to note that job titles alone do not determine exempt status. To qualify for exempt status, employees must pass three tests: job duties, salary level, and salary basis. For an exemption to apply, an employee’s specific job duties, salary amount and how that salary is paid must meet all the requirements of the Department of Labor’s regulations.

Accurately counting the number of hours workedEmployees must be paid for all hours worked. Sounds simple enough, right?

Unfortunately, the FLSA does not provide a clear definition for “hours worked.” In several U.S. Supreme Court rulings, hours worked may include any time spent in “physical or mental exertion that is controlled or required by the

employer,” and all hours an employee is required to give to an employer. This includes waiting time if it is for the employer’s benefit, and all the time during a workweek that an employee is required to be on the employer’s premises.

These circumstances might also be considered hours worked:

•On-calltime•Attendanceatmeetingsorlectures•Traveltime•Specialone-dayassignments•Timespentaccessingandreviewing

emails while out of the office

calculation of overtime payMany employers commonly believe that overtime is calculated using the employee’s

6 | WORKFORCE NOW

“ THE MORE YOU LEARN FROM

EVERYONE ELSE’S MISTAkES, THE

FEWER YOU HAVE TO MAkE YOURSELF.” HARVEY MACkAY

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hourly rate, and multiplying it by 1.5 and the number of overtime hours. If no other factors beyond straight and overtime hours are involved, that would be absolutely correct.

However, if the employee’s regular rate of pay includes items such as a shift differential, non-discretionary bonus, or a cost-of-living adjustment, this formerly simply calculation can become infinitely more complex. Employers must then determine on a case-by-case basis if these additional payments are included in the regular rate of pay in order to calculate overtime correctly.

the chAlleNge FAciNg comPeNsAtioN PRoFessioNAlsToday’s business environment has made understanding the latest FLSA requirements extremely important in order to stay compliant while meeting your organization’s HR needs. Of course, the FLSA covers much more ground than simply the three areas outlined above. But understanding the dynamics — and the ramifications — of the three most common violations will give your organization a head start in avoiding inadvertent and expensive contributions to the WHD any time soon. n

The Classification Conundrum: Contractor or Employee?

Misclassification of an employee as an independent contractor can have serious implications for your bottom line. The IRS can reclassify independent contractors as W-2 employees, resulting in the imposition of fines, penalties and back taxes for which the employer is generally liable.

Typically, an employer must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.

According to the IRS, businesses must weigh factors like these to correctly classify service providers:

behavioral — Does the company control what the worker does and how? Financial — Are the business aspects of the worker’s job controlled by the payer? Consider how the worker is paid, whether expenses are reimbursed, and who provides tools or supplies. type of Relationship — Are there written contracts or employee type-benefits? Is the work performed a key aspect of the business?

The keys to correct classification include looking at the entire relationship, considering the degree or extent of the right to direct and control, and finally, documenting in detail the factors used to make your decision.

WORKFORCE NOW | 7

For more information on

“The Top 3 FLSA Violations and How to Avoid Them,” visit www.adp.com/workforce-management/ docs/whitepaper/FLSA_White_Paper.pdf to download the complete white paper.

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RecessioN RelieF:IS THE ECONOMY ON THE UPSWINg?In the words of Sir Isaac Newton, “Every action has an equal and opposite reaction.” By making proactive recovery plans now, your organization can be more prepared for the upturn than it was for the downturn.

Depending on where you live or work, you may have noticed some interesting billboards in your neighborhood

recently. The Outdoor Advertising Association of America (OAAA) is sponsoring a campaign with the theme “Recession 101,” using relatable and light-hearted messages to help people maintain perspective about the state of the

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economy. Recently spotted: “Interesting fact about recessions. They end.” “It’s a test. Not a final.” “Stop obsessing about the economy. You’re scaring the children.”

One could argue that the OAAA has a vested interest in filling billboards that might otherwise be empty, but the idea came from an anonymous donor who wants to “remind Americans of the things that make this country great.”

The point is this: Recovery will happen. And you have a lot more control over how your company prepares for the upturn than it did for the downturn.

iNVestiNg big iN the RecoVeRyThe American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law by President Obama on February 17, 2009. It addresses an economic crisis in this country second only to the great Depression, and it was enacted specifically to get the economy back on track. Billions of federal tax dollars have been allocated for initiatives such as modernizing the nation’s infrastructure (roads, bridges, mass transit), revamping health care, improving our

schools, and investing in new energy technology. The Recovery Act is also intended to save public sector jobs, protect vital services, and provide assistance to workers hurt by the weak economy.

The Recovery Act will save or create nearly four million jobs over the next two years. The money is being distributed to state governments, schools, hospitals, contractors and other types of organizations. While your organization may not be a direct recipient of government funds, It’s hard to imagine a business that won’t benefit from the Recovery Act in some way. As funded entities hire, re-hire or stabilize, the jobs created will have a ripple effect on general consumer and business demand for all types of goods and services.

The federal government has been mandated to make the process as transparent as possible; www.recovery.gov has been created so that everyone has access to information about how and where money is being distributed. By tracking where the money is going and staying aware of events in your market area, you should be able to project how and when

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recovery efforts will begin having an impact on your business (if they haven’t already).

gettiNg yoUR bUsiNess ReADy FoR the UPsWiNgUse this time to assess your needs for re-entering growth mode. For most businesses, managing increased costs for items like equipment and inventory is going to be less of a challenge than managing your time and people needs.

Rather than trying to predict the future when it comes to specialty staffing needs, more companies are thinking outside the box and leveraging the strategic benefits of outsourcing. If you look outside your company for business services, you’ll find providers that can give you an edge over direct competition, and help level the playing field between your business and its bigger competitors. Why? Because you’ll be dealing with specialists.

Here are just a few examples of selective

outsourcing to explore:

If you’re frequently on the road, you may not need a full-time assistant. A virtual assistant can help you with time-consuming tasks like managing voicemail and email, research, fact-checking, event planning, travel arrangements — almost anything you can think of that takes you away from your core business.

Payroll solutions ensure that your company’s payroll needs are met on time, every time, helping you streamline your payroll process, improve productivity and simplify administration. Payroll services manage time-consuming processing and tax filing tasks so your HR team can turn its attention to more strategic needs.

By using the services of a marketing consultant, you can plan and implement effective marketing programs that can help

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YOUR PIECE OF THE RECOVERY AND REINVESTMENT PIEOpportunities abound for many businesses that in the past might not have considered pursuing government projects. You can now search online for opportunities across the entire federal contracting community.

Start with FedBizOpps.gov for all federal government contracting opportunities that exceed $25,000. The site lists all major solicitations, contract awards, subcontracting opportunities, surplus property sales, and even foreign business opportunities.

Interested in a federal grants? Federal agencies offer more than 1,000 grant programs and access to approximately $400 billion in annual awards. Visit Grants.gov to search and apply for grants from 26 different federal agencies.

minority and woman-owned businesses may want to seek certification credentials to open doors to bigger opportunities. For information, visit organizations like the National minority Supplier development Council (msdc.adaptone.com/nmsdc) or the Women’s Business Enterprise National Council (wbenc.org).

you increase your business results at a faster rate. You can find a professional who knows your industry and is positioned to jump right in — whether your goal is to take advantage of an immediate opportunity or to develop a long-term plan.

tax and compliance services keep your business current with constantly changing laws and regulations, help you meet strict government deadlines, and avoid costly fines and penalties. Experts in governmental regulations can help you reduce expenses, mitigate risk, and eliminate laborious manual tasks.

hR service providers can help you track benefits plans, integrate time and attendance records with talent management solutions, improve communication with your employees, and give your managers access to tools like online performance reviews. When you’re

ready to staff up, many HR service providers can also help you find, hire and keep employees, as well as help prevent you from making expensive hiring mistakes.

PUttiNg the FocUs oN stRAtegic imPeRAtiVesMany companies have chosen to hunker down and ride out the current economic turmoil. Is yours among them? If so, it may be time to stick your head up and take a fresh look at the bigger picture — making sure that your team’s focus is on mission-critical imperatives rather than administrative necessities.

If you’re a believer in Newton’s laws of motion, it’s only a matter of time before the economy that went down comes back up. Use the time in between to make plans, and you’ll be in the best possible position to take your business right back into growth mode when the recovery hits full speed. n

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A 1987 article in The New York Times by Nobel Prize-winning economist Robert Solow ignited a firestorm when it questioned the

relationship between computers and productivity.Though that debate still continues today on certain

hot topics — the relative merits of being wired 24/7, for example — the majority of HR professionals are certain to acknowledge the role that computers and technology play in easing their departments’ daily administrative burdens.

With rapid shifts in business technology happening almost daily, it’s more vital than ever that your HR team maintains solid relations with your IT department, working together to ensure that your organization leverages today’s best-of-breed human resources technology tools as effectively as possible.

Here are five questions you should be asking your IT department to start a productive dialogue:

WhaT’s NEW iN hR techNology?

Five questions you should be

asking IT to ensure that your

organization’s HR function is operating at

peak productivity.

WORKFORCE NOW | 13

1HOW INTEgRATED ARE WE?growing companies often find themselves with “patchwork” HR IT solutions cobbled together and modified by necessity as new needs arise. Lack of integration across vital systems can have serious repercussions in terms of productivity and continuity.

Think about it — the common appearance and menu functionality across every program in the Microsoft Office suite isn’t by accident. Non-integrated systems force a steeper learning curve when it comes to training new users, and repetitive data entry (entering payroll data in separate payroll and tax systems, for example) can lead to costly mistakes thanks to simple keystroke errors.

Fully integrated systems (also known as Human Resource Information Systems, or HRIS), bring together under a single interface interdependent HR processes such as payroll processing, benefits administration, and applicant tracking. With the latest generation of HR applications delivered over the web (known as SaaS, or “Software as a Service”), companies can skip the expensive investments in hardware that presented a significant barrier to implementation in the past. Upgrades, too, are simpler than ever, as developers can push out new features faster, allowing your business to adjust to shifting market conditions as needed.

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3HOW CAN WE BETTER MANAgE RECRUITMENT, STAFFINg, AND

PROFESSIONAL DEVELOPMENT?The best workforce starts with the best hiring and retention tools. Applicant management programs are fast becoming the norm for automating functions like processing applications and ranking respondents’ résumés — routine tasks that often consume the bulk of a hiring manager’s time and attention. Screening and selection tools take the process one step further, using thorough candidate screenings to ensure compliance and reduce risk.

Once your organization’s made the right hire, technology-based time and attendance solutions can streamline employee scheduling, track activities, and manage absences, helping you optimize your labor investment. To keep employees challenged and motivated, consider using performance appraisal or talent management software to simplify the process of tracking goals and identifying skills gaps.

4DO WE HAVE A CLEARLY DEFINED TECHNOLOgY ACCESS POLICY?

Here’s an issue that’s sure to generate strong opinions on both sides of the argument. For many senior managers, access to social media technology — blogging, Twitter, Facebook, YouTube — is immediately seen as a distraction or time waster. Conversely, younger hires view them as must-have tools for collaboration and getting business done.

Before adopting a knee-jerk “no access” policy, consider the elements of social networking that may be in line with broader management strategies. For example, internal video blogs or knowledge banks can help employees more easily connect with one another and share information, especially in larger or far-flung organizations where simply walking down the hall to ask a question isn’t possible.

As social media moves from strictly marketing and branding applications to tools for lead generation, customer communication, and internal communication and collaboration, companies of all sizes need to have a clear strategy for social media tools — and an equally clear policy on employee usage.

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2HOW REDUNDANT ARE WE?If people are your organization’s most important asset, your HR data is equally important. A Pepperdine University study recently estimated that lost data costs U.S. companies an average of $18.2 billion dollars each year.

What protections do you have in place to protect employees’ privacy and guard against data loss — whether from hardware failure, environmental catastrophes like fire or flood, or external security breaches from malicious hackers or identity thieves?

Review your system protections with your IT pros to ensure that adequate data protections exist, your backup and recovery systems are tested regularly, and a business continuance plan is in place in the event that one or more of your offices becomes inaccessible. Even the best recovery system is useless if no one knows how to use it when disaster strikes.

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5HOW USER-FRIENDLY ARE WE? Respondents to a January 2009 study commissioned by ADP said that nearly half their HR team’s time (45%) is spent on a combination of payroll-related activities (18%), HR administration (14%) and benefits administration (13%) — repetitive,

time-consuming tasks that leave little room for more strategic contributions to your organization. Companies are now turning to self-service portals that allow employees to access, maintain

and modify information via a web browser. This shift to self-service functionality for employees and managers alike is a direct response to the competitive challenges of today’s knowledge economy, making it the preferred method for improving internal service and enhancing the lines of communication between your company and its employees.

The benefits of these self-service portals are two-fold in positioning your organization as an employer of choice — demonstrating your responsiveness and techno-savvy to employees, while freeing your HR team to concentrate on more strategic initiatives to further reinforce that leadership position and attract top talent.

hARNessiNg techNology to DRiVe iNNoVAtioNWith human capital the largest investment of just about every business, it makes sense to also invest in the technology needed to make the most of that valuable capital. By staying ahead of the technology curve and making sound investments, you’ll ensure that your HR strategies and goals are aligned with the technology needed to achieve them. n

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On Re

adeR

s’ Mi

nds Mike Taylor, Relationship Manager

for ADP Workforce Now HR Services, addresses readers’ most pressing workforce management questions.

A: If your handbook hasn’t been updated in a while, chances are it doesn’t address many relatively new issues such as the use of technology or legislative mandates for the Family and Medical Leave Act (FMLA) or the recent changes to the Americans with Disabilities Act (ADAAA).

To stay current with best practices and remain in compliance, your employee handbook should include clearly stated information on the following:

• Useofcellphonesintheoffice• Accesstoonlinesocialnetworkingsites,

such as Facebook or LinkedIn• Drugandalcoholuse• Workplaceviolence

Older handbooks are often out of compliance when it comes to issues like risk and safety, and family and medical leave, particularly regarding pregnancy-related absences.

Congratulations on recognizing the importance of an up-to-date employee handbook. By defining and communicating your organization’s policies and standards, you’ve taken an important step toward the fair and consistently applied personnel policies that are the hallmark of today’s leading employers.

Q: We’Ve jUst begUN ReVisiNg oUR comPANy’s extRemely DAteD emPloyee hANDbook. Do yoU hAVe ANy RecommeNDAtioNs FoR cURReNt best PRActices thAt We shoUlD keeP iN miND DURiNg this PRocess?

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Q&

AQ: mANAgemeNt WANts to mAke seVeRAl chANges to the PAiD holiDAys obseRVeD At oUR comPANy. WheN is the best time AND WAy to ANNoUNce these chANges?

Q: oUR oRgANizAtioN is UNFoRtUNAtely AmoNg those tAskeD With imPlemeNtiNg A ReDUctioN iN FoRce (RiF). hoW Do We eDUcAte oUR mANAgeRs oN the PRoPeR WAy to select the PositioNs to be elimiNAteD?

A: Several considerations should come to mind when making changes like paid holidays, including minimizing any disruption to business activities and the potential impact on employee morale. Rather than a mid-year change to the holiday observance schedule, which could affect employees’ childcare or vacation plans, consider implementing a new schedule for the new year — and communicating changes well in advance.

Many companies choose to communicate in stages — sending a general notification that the holiday policy is being reviewed, followed by a detailed summary of the changes and timeline for implementation. By mapping out a strategy well in advance, you’ll be in a better position to control how and when these changes will be best received by your employees.

A: When tasked with an RIF, objective criteria and consistency in the criteria used to make the cuts is critical. Steer clear of any considerations that could be considered biased, such as an employee’s attendance record, and be aware of the impact on protected classes of employees.

For example, companies often consider length of tenure as the criteria for a reduction, but fail to recognize that its longest-tenured employees may be protected by age discrimination legislation.

By being as objective and consistent as possible across the board, your company can apply the fairest possible criteria to conducting the RIF. n

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About ADPAutomatic Data Processing, Inc. (Nasdaq: ADP), with nearly $9 billion in revenues and 570,000 clients, is one of the world’s largest providers of business outsourcing solutions. Leveraging 60 years of experience, ADP offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. ADP’s easy-to-use solutions for employers provide superior value to companies of all types and sizes. You can count on ADP for unparalleled compliance support and the most qualified and accessible client service in our industry.

The ADP Logo and The business behind business are registered trademarks of ADP, Inc. Workforce Now is a service mark of ADP, Inc. All other products and marks are the property of their respective owners. ©2009 ADP, Inc.