The Value of Sustaining Employee Engagement

In these difficult economic times, just when our businesses and the economy are performing well, it is critical for you to keep employee engagement high on the priority list of your eyecare practice or business. With many companies still continuing to downsize, it remains a business imperative for employers to find ways to make sure their employees feel valued and important.

Consulting firm Watson Wyatt´s 2008/2009 WorkUSA Survey Report sheds some valuable light on the stakes involved at what could literally be a make–or–break juncture for many companies. The survey found that top–performing employees at firms going through restructuring are 50 percent less likely to be highly engaged and are twice as likely to leave than their lower performing colleagues.

But for those companies that can find ways to keep them happy and motivated, the payoffs are huge: The survey also found that highly engaged employees are five times as likely to believe passionately in what their organization stands for in the marketplace, are 2.5 times more likely to be satisfied with their employee benefits, and miss 20 percent fewer days for unscheduled absences.

When high-performing employees are motivated and aligned to the core patient value proposition of an ECP, they often become so personally invested that they may elect to stay with the practice even if they are not highly motivated or valued.

So how do you keep your employees committed and engaged? The survey did contain a few valuable insights. Top-performing employees who are satisfied with their pay are 75 percent less likely to be a high voluntary turnover risk. The survey also found that keeping the focus on customer (patient) satisfaction provided a common goal that left people feeling good about the organization.

It found that continuing to invest in training and work processes conveys the message that the company still has core values, purpose and a clear direction worth buying into. And finally, the survey revealed that seeking out and acting on employee suggestions was critical to engaging the high performers.

Even during these challenging times, it is important to continuously revisit your employee engagement value proposition. It is a constant reminder of the value your employees bring to your practice—and ultimately to your patients.

Hedley Lawson brings over 25 years of optical industry experience to Jobson Medical LLC. For over 10 years, he has been a contributing editor to VM, most recently as writer of the monthly column "Business Essentials." He is the Contributing Editor of VM's E-Newsletter Business Essentials. Contact Business Essentials with questions or comments.

How to Prepare For Swine Flu Outbreak

Q: We are in a state that has seen outbreaks of swine flu. What are some reasonable steps we can take to prevent the spread of this at our eyecare practice? I am worried that many of my employees might come to work even if they are sick.

A: Your concern about the potential spread of the recent H1N1 flu outbreak, formerly known as "swine flu," among your employee population, and its subsequent impact on your business, is appropriate. Though it is small comfort, you are not alone. As of May 13, some 3,352 cases of H1N1 had been confirmed in 45 U.S. states.

Information: Given that this is a new strain of flu virus, some education is in order for you and your workforce. We have found the Centers for Disease Control and Prevention to be quite helpful. In addition to the latest factual updates on the management of this disease, you’ll find links to a host of audio, visual and print media that you can rebroadcast to your employees. The site also contains an entire section for employers.

Policy: One of the first things you’ll want to do is review your internal policies vis-à-vis the objective of maintaining a functioning, relatively disease-free workplace.

Specifically, do your current policies further impede this objective? As a case in point, many organizations have attendance policies that put employees in a disciplinary mode after a set number of illness occurrences. If your policies—and the threat of disciplinary action—potentially coerce an employee to come to work who shouldn’t, consider temporarily suspending the automatic punishment provisions in favor of a more reasoned approach.

Similarly, people might be induced to work when they shouldn’t due to economic sanctions. This might be a good time to reconsider your sick-day policy in general or at least in view of the virus-related cases.

If you truly want people to stay home when they are sick, you simply must remove those things that serve to punish desired behavior.

The simple fact is that people, all of us, do what we are incentivized to do. We have found a very strong bias among world-class employers for treating employees like responsible adults and then expecting them to measure up. They usually do.

Be advised that any changes of this sort will require some careful communication with your management team to ensure they understand that the organization is not lowering standards or “going soft.”

Facilities: As the CDC has maintained continuously, the exercise of simple hygiene measures may provide the best weapons against the spread of H1N1.

To wit, it just makes sense to do things like making hand sanitizer, tissues and appropriate refuse containers readily available. The same for keeping restrooms well stocked and scrupulously clean. Make sure there is ample hot water for hand washing.

Similarly, you will want to review any policies, processes or practices that put large numbers of employees into close proximity with one another.

Break rooms, fitness facilities and meeting rooms pose an opportunity for the airborne spread of disease. To the extent that you can, schedule smaller numbers of people into these facilities at one time, it may make sense to do so. (As for the meetings, you can probably eliminate a lot of them entirely and get a standing ovation for your effort.)

Special measures: Some organizations make private or co-op medical facilities (physician, clinics, etc.) available to their employees.

Indeed, we know of another California employer, the Pebble Beach Co., that has an excellent facility and medical staff for its workers and families. Though a facility like that takes time and real commitment, it is possible to organize private outpatient, in-home or on-site screening and treatment services for your employees pretty quickly.

This is something that can be done on your own or in concert with other area employers. Your health insurance administrator or workers’ comp carrier can likely offer guidance and make referrals.

Whatever you do, don’t wait, because time is not your friend.

Source: Richard Hadden and Bill Catlette, co-authors, Contented Cows MOOve Faster
May 13, 2009

Learn More: A Workforce Management webcast on preparing for pandemics provides deep discussion and tips.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also, remember that state laws may differ from the federal law.

If you have a question or issue for one of our experts, contact Business Essentials.

—Hedley Lawson, Jr.

Early Draft of Legislation Offers Preview of Sweeping Changes in Health Care

A partial first draft of health reform legislation emerged on, June 5, confirming speculation that most businesses would be required to pay a fine for not offering health coverage to employees. This may be a significant development to smaller businesses in the optical industry.

While many of the details in the draft have not been filled in, the legislation outlines a sweeping health care reform agenda that covers the establishment of a health insurance exchange, the scope of minimum coverage employers must offer, and a requirement that all individuals purchase health coverage.

A public health plan is expected to be included in the bill, but the details of such a plan, as well as the specifics around an employer pay-or-play mandate, remain a sticking point among the various constituents that have worked with legislators to hammer out legislation.

Not surprisingly, the draft legislation came from Sen. Edward Kennedy, D-Massachusetts and chairman of the Senate Health, Education, Labor and Pensions Committee. That panel has taken the lead in crafting the health reform bill, called the American Health Choices Act. Another bill with more details on how reform is to be financed was expected by June 17 from the Senate Finance Committee, chaired by Sen. Max Baucus, D-Montana.

One major proposal the Finance Committee bill will likely provide details on is whether employees can expect to have their health benefits taxed, a policy that proponents say will help pay for health care reform, which is expected to cost more than $1 trillion. Employers will strongly oppose such a measure as a double edged sword: providing health care coverage will be mandated on businesses and, if they do not, they will be fined.

Employer groups have been lobbying against such a measure. The optical industry trade groups need to fully understand the legislation, its impact and actively take a vocal position.

The draft legislation from Kennedy’s committee is prefaced by a “declaration of rights” that may assuage some conservative groups that feared health reform would empower government bureaucrats to make personal health care decisions for individuals. The bill states that “health professionals should judge what is best for their patients.”

The insurance exchange, known as the American Health Benefit Gateway, would be set up within each state to help individuals and employers purchase health insurance coverage. Employers would have to alert employees that they can purchase coverage in the individual market from the exchange.

The bill states health plans in the Gateway cannot deny people coverage based on pre-existing conditions. The Gateway would guarantee the availability of health insurance coverage in the individual and group markets, removing lifetime or annual limits on the amount of medical care insurance companies will pay for.

The draft bill also did not detail what kind of plan would qualify as minimum coverage.

The federal government will offer credits to help small employers, defined as 27 or fewer full-time employees, provide coverage to employees, according to the draft.

Employers that do not contribute to the health coverage of employees will have to make a monthly payment to the federal government for each employee who is not offered health insurance. The payment amount has not been specified.

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Talent Management Tips to Strengthen Your Practice

Basic strategy for weathering an economic downturn involves focusing on your core business and strengths, reigning in unnecessary costs and doing more with less. While many talent management processes are sometimes perceived as "nice to have" practices, they're actually vital to your company's success. Learning how to properly manage your workforce and foster a culture of high performance can be critical to survival. Research shows that companies who invest in talent management practices consistently outperform their peers.

Here are several pointers that will enable your practice to get the most out of your “team” of employees:

1. Align Individual and Organizational Goals and Effectively Track Their Progress
   While this is always an important talent management practice, it becomes critical in difficult economic times. ECPs need to make sure that their employees are all focused on contributing to the practice's success. You need to make sure that everyone is working on the right things and that the office is making progress on its goals. If sufficient progress is not being made, owners need to take corrective action immediately. Also critical is the need to quickly and effectively communicate any change in focus, priorities or tactics.
2. Conduct Regular Reviews to Keep Employee Performance On Track
   In tough financial times, many organizations are tempted to forgo their regular employee performance reviews, viewing them as an expense that can easily be spared. They fail to both see and reap the value this performance management process has to offer.
   
   First, a performance appraisal is a critical opportunity for managers and employees to discuss performance highlights and challenges, goals and competencies, and any development needs. To perform at their best, it's critical for employees to get regular feedback on what they are doing well, explore areas for improvement, and discuss skill gaps and career aspirations with their managers. This is the time when most managers and employees put plans in place to address performance gaps or expand an employee’s skills. It's also one of the most effective ways to keep performance on track.
   
   Second, performance appraisals help managers and owners to identify low performers and take action to improve their work habits, so the practice can get the most out of all its resources.
   
   Finally, by consulting their "history" of performance appraisals, managers can more accurately identify high and low performers, as well as employees with critical knowledge/experience/skills. Ultimately, this will allow managers to identify which employees they can afford to retain and who they can do without.
3. Provide Ongoing Feedback to Maximize Performance
   Ongoing feedback helps everyone maximize their performance. It allows for quick corrective action when things start to go off the rails, so managers and employees can address any issues while they are still minor problems. While ideally managers and employees should be having conversations about performance on a regular basis, they often fail to do so except in the context of a formal employee evaluation. You might also want to include a 360 degree feedback in your process to broaden the feedback that employees get.
4. Invest in Performance-based Development
   An economic downturn makes it even more important for a practice to ensure it is getting value from any investment in employee development. The best way to start is to be sure you're offering the training that employees need. By starting from your employees' performance appraisals and using them to identify skill gaps, you can be sure you're offering the correct, on-target learning activities.
   
   One final talent management practice that is important for extracting value from your training is to measure the change or improvement in employee performance that results from a learning experience. A sustained improvement in employee performance, as measured by your performance appraisal process, is a far truer measure of the effectiveness of your training than any post training testing or evaluation.
5. Identify and Reward High Performers
   Knowing who your high performing and high potential employees are is always critical. While you may not be able to reward them with salary increases, bonuses or other monetary rewards during an economic downturn, you can still demonstrate your organizational commitment to them and recognize their contributions. Having a talent pool based succession plan allows your organization to effectively identify your top employees and reward them with development initiatives that help advance their careers and prepare them for promotion. These are the employees you can't afford to lose; make sure you're acknowledging their performance and potential, and benefitting from all they have to offer.
6. Have a Succession Plan
   Employee turnover can happen at any time, even during an economic downturn. Your practice needs to be prepared to replace critical roles and competencies at all times. It's even more vital in a downturn, when a vacant position or shortage of critical talent could cripple your practice. A talent pool based succession plan challenges your organization to identify the critical skills and competencies it needs across the organization to succeed over the long term, not just the leadership roles it may need to fill. It then helps you identify and groom your high-performing and high-potential employees to fill these needs when they arise.
7. Be as Efficient as Possible
   Remember, time is money. In an economic downturn, no organization can afford inefficient processes. You need to save time and money everywhere you can. Systems that automate your talent management processes make these processes more efficient and cost effective. They also usually see an increase in the quality and value of their processes, typically resulting in higher employee satisfaction and engagement, and higher patient satisfaction.

Informational Source: Halogen Software, Inc.

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EEOC Issues H1NI Flu Virus Guidance for Employers

Although fears from the recent H1N1 flu outbreak, formerly known as “swine flu” have eased, a reappearance of the flu appears likely once summer ends. The Obama administration recently warned Americans to be ready for an aggressive return of the virus in the fall, and announced plans to begin vaccinations in October, offering states and hospitals money to help them prepare.

In response to these warnings, the federal Equal Employment Opportunity Commission (EEOC) has issued two guidance memos for employers related to the current H1N1 flu outbreak. The first memo reminds employers that they cannot discriminate against employees on the basis of national origin. News reports have indicated that the H1N1 virus traveled to the U.S. from Mexico. Employers should be careful that employees of Mexican descent, especially new hires and applicants, are not shunned or turned away out of fear that they may be carrying the virus.

The second memo addresses several factors employers need to be mindful of regarding when you can ask employees about health conditions. Under both state and federal law, employers can ask questions about an employee's health status or disability under the following conditions:

• Pre-Employment: During the pre-employment application and interview process, employers are not permitted to ask any questions about an employee's health status or disability.

• Post-Offer: Once an offer of employment has been made, but before the employee starts work, employers are allowed to ask for disability-related information and require medical examinations, so long as all incoming employees in the same job category are required to answer the same questions or undergo the same examinations.

• Employment: Once an employee has begun work, employers are permitted to make inquiries into an employee's health status or disability only if doing so is a business necessity (for example, if the inquiry is necessary in order for employers to determine what duties can be assigned to the employee), or in response to an employee's request for accommodation or medical leave. In the case of medical leave, California employers can ask for certification that the leave is necessary but cannot ask for a physician's diagnosis.

In certain cases, a person with the H1N1 virus may qualify as disabled under both state and federal laws, and employers should apply their normal disability policies and procedures when an employee asks for accommodation.

Deadlines for Wage and Health Regulations

Following is a short list of deadlines for 2009 that you and your Human Resources department should be aware of:

• June 30
  E-Verify: Rule requiring all federal contractors to use the federal government's E-Verify employment eligibility system goes into effect.

• July 24
  Minimum Wage: The federal minimum wage increases to $7.25 per hour.

• Aug. 17
  HIPAA: By this date, under amendments to the Health Insurance Portability and Accountability Act (HIPAA), the Secretary of Health and Human Services must issue interim final regulations governing a health plan's duty to notify individuals whose protected health information has been breached. The duty to notify requirement would apply to breaches discovered on or after 30 days of these regulations being issued.

• Sept. 30
  VETS-100A Report: By this date, federal contractors must file the VETS-100A Report for government contracts of $100,000 or more that were entered into or modified on or after Dec. 1, 2003, as well as the VETS-100 Report for any unmodified government contracts of $25,000 or more that were entered into prior to Dec. 1, 2003.

• Oct. 9
  Health Insurance: Michelle's Law, also known as HR 2851, goes into effect on this date. Named after Michelle Morse, a college student who suffered from cancer and continued her course load, against the advice of doctors, in order to remain covered by health insurance. It will amend the Employee Retirement Income Security Act of 1974, the Public Health Service Act, and the Internal Revenue Code of 1986 to ensure that dependent students who take a medically necessary leave of absence do not lose health insurance coverage, and for other purposes.

• Nov. 21
  GINA: The employment provisions of GINA (Title II) take effect. Title II of GINA makes it unlawful for an employer to make hiring, firing, or compensation decisions based on the genetic information of an employee or their family members. Furthermore, the law generally prohibits employers from requesting, requiring, or purchasing their employees' genetic information.

It's Your Business
The Value of Sustaining Employee Engagement

From the Top
Early Draft of Legislation Offers Preview of Sweeping Changes in Health Care

Ask the Experts
How to Prepare for Swine Flu Outbreak

People
Management
Talent Management Tips to Strengthen Your Practice

HR Corner
Compensating Students Working as Hired Interns

Changes to I-9 Form

E-Verify News

Rules and Regulations
EEOC Issues H1NI Flu Virus Guidance for Employers

Deadlines for Wage and Health Regulations

Resource Corner
Links to Important
Resources

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HR Corner

Compensating Students Working as Hired Interns

If you are considering implementing an optician internship program in your practice, you need to verify whether you are legally required to pay students hired as interns. If your interns are “employees,” they are subject to the Fair Labor Standards Act (FLSA) and must be paid at least the minimum wage. Interns may be exempt from the requirements of the FLSA if they can be categorized as “trainees” as defined under the law.

In determining whether an intern is a trainee rather than an employee, the Department of Labor (DOL) has consistently applied the following six-criteria test, derived from a U.S. Supreme Court decision Walling v. Portland Terminal Co.:

1. The training, even though it includes actual operation of the facilities of the employer, is similar to that which would be given in a vocational school.

2. The training is for the benefit of the trainee.

3. The trainees do not displace regular employees and work under close observation.

4. The employer that provides the training derives no immediate advantage from the activities of the trainees, and on occasion, the employer’s operations may actually be impeded.

5. The trainees are not necessarily entitled to a job at the completion of the training period.

6. The employer and the trainee understand that the trainee is not entitled to wages for the time spent in training.

If interns fail to meet any of these criteria, they should be paid as employees—at least minimum wage and overtime compensation when earned. Although earning class credit for the internship benefits the intern and can be required by the employer, class credit is not considered wages and should not be substituted for wages.

DOL opinion letters provide some guidance on when interns must be paid, but it is usually a good idea to consult legal counsel when designing and implementing an internship program.

Interns may also be treated as independent contractors rather than employees, but only if they are, in fact, independent contractors. The Internal Revenue Service provides guidance on determining whether a worker is an independent contractor or an employee. The DOL provides further guidance on independent contractors, volunteers and FLSA coverage.

Source: SHRM HR Knowledge Center

Changes to I-9 Form

All employers are required to verify that every new hire is either a U.S. citizen or authorized to work in the U.S. So what do you need to know about the new I-9 form? Changes have occurred in the I-9 form and acceptable documents that establish both the employee’s identity and employment eligibility.

Employers need to be aware of these changes and adjust hiring practices to conform to these new requirements. Following are some highlights of those changes:

Current vs. New Employees

Am I required to have all of my employees complete the new I-9?
No, existing employees do not need to complete the new I-9 form if a complete I-9 form is on file. The new I-9 form is required to be used for all employees hired on or after April 3, 2009.

Where can I find copies of what the documents should look like?
The new U.S. Citizen and Immigration Services Handbook for Employers (Rev. 04/03/09) now includes color pictures of the acceptable documents. The guide also contains useful information about I-9 requirements and commonly asked questions and answers.

Do we need to track expiration dates on current employees?
No, not for documents that establish identity only. The new requirement of unexpired identity documents applies only to new hires. That change does not affect existing employees.

No Grace Period

Can we hire an employee who has given us a receipt that he/she has applied for an initial grant of employment authorization?
Under the old I-9 regulations, new hires were able to work by showing the employer a receipt that they had applied for an initial grant of work authorization. That receipt was then good for 90 days. The new regulations, however, have done away with that provision and the employee must check the box in Section 1 that he/she is already authorized to be employed.

There is no grace period under the new regulations—the employee has to be eligible to work at the time of hire.

Limited Use of Spanish Form

Can I use the Spanish form for my Spanish-speaking employees?
Although a Spanish version of the I-9 is available, that version may be used only in Puerto Rico. Spanish-speaking employees may be given the Spanish form as a translation guide, but the English form must be completed and retained as the I-9 record.

E-Verify News

E-Verify is an Internet-based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that allows participating employers to electronically verify the employment eligibility of their newly hired employees.

E-Verify is free and voluntary and is the best means available for determining employment eligibility of new hires and the validity of their Social Security numbers.

Easy-reference to Web resources about human resource policies and rules

American Health Benefit Gateway

American Health Choices Act

Equal Employment Opportunity Commission (EEOC)

E-Verify

GINA (Title II)

Health Insurance Portability and Accountability Act (HIPAA)

Michelle's Law

VETS-100A Report