HRReview

FALL/WINTER 2005 The Magazine of the New York State Society for Human Resource Management

N E WY O R K

S T A T E

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NYS AnnualConference &ExpositionHundreds“Capture theMulti-facetedGems of HR”

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F A L L / W I N T E R 2 0 0 5

The Magazine of the New York State Society for Human Resource Management

7 A Message from the Executive DirectorBy Annette Guido

9 From the Editor’s DeskBy John Lewison, SPHR

11 2005 Officers and Board of DirectorsWho’s who in the society.

12 NYS SHRM Mission StatementWhat we do.

15 2005 New York State Chapter DirectoryFind your local chapter.

17 SHRM Establishes Special Expert PanelsTwelve panels serve as a valuable resource.By John Lewison, SPHR

18 Welcome B. Craig Smith, SPHRSmith takes the helm as state district director (central) for NYS-SHRM.

31 NYS-SHRM Annual Conference & ExpositionHundreds of attendees “Captured the Multi-faceted Gems of HR” in Albany.

Features

33 Branding Yourself as an HR ProfessionalCheck out these ten tips for packaging a powerful brand identity.By Carolyn Aishton

35 Pre-Hire AssessmentsFind out how pre-hire assessments can help you hire champions.By Robert Peter, PHR and Paul Keneally, Esq.

38 Equity Compensation: The Future is Now!For the past four years, surveys have tracked the changes in equity compensation.Find out why the future is now.By David Cross and Rebecca Gorman

Departments

19 Around the StateRead what’s new at local SHRM-affiliated chapters.By David Shair

23 Focus on…Ruth Margolis-Yorker, SPHRMeet NYS-SHRM’s director of the Core Leadership Area on Workforce Readiness.

25 Legislative Update: The View from AlbanyA recap of hot issues in the Legislature affecting you.By Tom Minnick, SPHR

27 Ask the ExpertsFrom alcoholism to tardiness, HR experts answer your questions.

29 News You Can UseTimely reports from the state and federal levels.

42 Index of Advertisers

C O N T E N T S The New York State HRReview is published for the:New York State Society for Human Resource Management10 Anthony CourtArmonk, NY 10504(914) 273-4136www.nysshrm.org

Published byNaylor Publications, Inc.5950 NW 1st PlaceGainesville, FL 32607(352) 332-1252(800) 369-6220fax (352) 331-3525www.naylor.comPublisher: Ray Goodwin

Editor: Colleen Wooten

Marketing Associate: Kirsten Cahill

Sales Manager: Melissa Zawada

Advertising Director: Pam Blasetti

Advertising Sales: Rya Boyce, Brenda Ezinicki,Mary Johnston,Pat Johnston,Scott Pauquette,Debbie Phillips and Beth Sheahan

Cover Design: Cal Harding

Layout & Design: Brenda Nowosad

Advertising Art: Lesley Helash

©2005 Naylor Publications,Inc. All rights reserved.The contents of thispublication may not be reproduced,in whole or in part, withoutthe prior written consent of the publisher.

Published November 2005NYM-B0205/4464

F A L L / W I N T E R 2 0 0 5 5

ReviewHRN E WY O R K

S T A T E

Ihope some of you had the opportunity to attend the National SHRM conference in San Diego inJune. The conference provided excellent concurrent sessions addressing many of the keychallenges for HR professionals today. In addition, the welcome and keynote sessions by Johnny

Taylor, SHRM, board chair, Bill Cosby and others, were both informative and entertaining.During a conference call, (a way for the northeast regional council to participate) we had the

pleasure of speaking with Sue Meisinger, SPHR, CEO of SHRM. She updated us on the recent activitiesof National, which include the hiring of the first SHRM employee in China. Another hire will soontake place in India, continuing SHRM’s global reach.

One key initiative of SHRM is its foundation. If your chapter is looking for a special project toundertake this year, why not do a fundraising event for the foundation? The foundation providesthousands of dollars each year for educational activities to advance and serve the HR professional.You can help.

The NYS council hosted a very productive “Visit Albany Day” in April. Special thanks to TomMinnick, SPHR, and our legislative committee. Over 50 members of the HR profession met with theirarea representatives to discuss issues relevant to our field. In an effort to provide the best eventpossible and plan for next year, a survey was conducted after the sessions. The legislative committeewill use the survey results in planning next year’s event. Mark your calendars now for “Visit AlbanyDay 2006” – Tues., April 4.

If you have not had a chance to do so, please take a few minutes to review the NYS-SHRM whitepapers – basic HR forms and frequently asked questions and answers on the NYS-SHRM website(www.nysshrm.org). This information is unique to New York state. Special recognition goes to DianeLustenader, SPHR, GPHR, for leading the charge here.

On Oct. 1, we hosted the NYS leadership conference again. This was an opportunity for allchapter leaders, or potential leaders, to hear keynote speaker Chip Madera share best practices andto network with members across the state.

In November, the council again will support the district directors for the five key core leadershiproles of Certification, Workforce Readiness, Diversity, Foundation and College Relations. For more onthe Core Leadership Areas, see our “Focus On” column on page 23.

I am very pleased to report that we continue to enjoy thepartnership of NYS-SHRM and the statewide JSEC team as beingan approved HRCI provider. To date, 137 JSEC meetings havebeen held, and 67 of those meetings have been HRCI approvedfor recertification credits totaling 134.25. NYS-SHRM extendsspecial thanks and recognition to Richard J. Grossi, assistantdirector, Office of Employer Services, New York StateDepartment of Labor, who leads this endeavor.

The NYS-SHRM, along with the Capital Region HRA (akaAlbany chapter), co-sponsored this year’s NYS annual humanresource conference and exhibition at the Desmond Hotel andConference Center in Albany, N.Y. Thanks to everyone for theirassistance in this successful venture. For more, see page 31.

Finally, if you are not a member of a local chapter, Iencourage you to join. For the chapter nearest to you, see page15. Chapter membership offers many advantages. Also, I amseeking an at-large member to serve a role in NYS-SHRM. If youare interested, please contact me at [email protected] fordetails.

NYS-SHRM is very proud of all of its achievements. This pridebegins with the many dedicated volunteers who serve sodiligently. Many, many thanks to all of you. My best for a veryhappy and enjoyable holiday season. ◗

A Message from the Executive Director

ANNETTE GUIDOEXECUTIVE DIRECTOR , NEW YORK STATE SHRM

F A L L / W I N T E R 2 0 0 5 7

Did you know?

NYS-SHRM and the

JSEC team continue

to be an approved

HRCI provider. So far,

67 of the 137 JSEC

meetings held have

been HRCI approved

for recertification

credits totaling

134.25.

W ith this issue of HR Review we celebrate our wooden anniversary. Not veryglamorous, we must admit, but after five years of putting out this award-winningmagazine, we’re thrilled that we have made it this far, and that HR Review has been

so welcomed for so long by our membership. Thank you.We don’t know for sure if imitation is the highest form of flattery, but we’ll take it. As the

first SHRM-affiliated state HR association north of the Mason-Dixon line to publish its ownmagazine, we’re tickled pink that other states are following suit and getting into the act. Wehear that Pennsylvania may soon join our publication ranks, and that Michigan has alreadystarted down the road. We say “Welcome to the club.”

In this issue of HR Review we’ve assembled a slate of articles which are both timely andcutting edge. Featured is an insightful piece by our own Bob Peter, PHR, and Paul Keneally,Esq., on the benefits of pre-hire assessments. We say “our own” because for the past couple ofyears Bob served as president of the Genessee Valley chapter, and as a member of the NYS-SHRM board of directors. He now is an independent consultant working with associates of TheXLR8 Team, Inc.

David Cross and Rebecca Gorman both are with Mercer’s Performance Measurement andRewards consulting business unit, and have come up with a perceptive article on how thedebacle of Enron and other ethically-challenged organizations has transformed the paypractices for top executives. We thought you’d like to read what they have to say.

Last, but certainly not least, is a savvy piece onbranding yourself as an HR professional byCarolyn Aishton. What better expert could wehave found to show you how to brand yourselfthan a former vice president of corporate affairsfor Avon Products – talk about branding! Mustreading for any HR professional.

Finally, our “Focus On” column this issue is asit-down with Ruth Margolis-Yorker, SPHR. Ruthheads up the key Core Leadership Area ofWorkforce Readiness. We think you’ll find whatshe has to say insightful.

As always, we want to hear from you. Justdrop us a line at [email protected]. ◗

From the Editor’s Desk

JOHN LEWISON, SPHREDITORIAL DIRECTORHR REVIEW

F A L L / W I N T E R 2 0 0 5 9

Did you

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Workforce ReadinessRuth Yorker, [email protected]

Media Relations DirectorKim Nemeth716- 842-5273716-842-4273 [email protected]

State Conference DirectorMary [email protected]

NEW YORK STATE SHRMDISTRICT DIRECTORS FOR 2005Central NYS (Albany, Utica,Syracuse)B. Craig Smith, [email protected]

Hudson South (Long Island, Mid-Hudson, New York City,Poughkeepsie & Westchester)John Lewison, [email protected] Country (St. Lawrence,Jefferson/Lewis Counties &Potsdam)Ned Hirt, PHR315-393-3074 x220315-393-3083 [email protected]

NorthWestern (Buffalo, Rochester,Jamestown)Rita Parish, [email protected]

NEW YORK STATE SHRM DIRECTORS FOR 2005Deputy Treasurer & ConferenceTreasurerPatricia Barnes, SPHR518-356-6123518-456-4592 [email protected]

NYS Leadership DirectorMary Ellen McLean, SPHR518-464-1511 x221518-464-9198 [email protected]

Program/Certification DirectorDiane Lustenader, SPHR518-732-0526518-732-0528 [email protected]

NYS Legislative DirectorThomas R. Minnick, SPHR518-465-7511 x210518-465-4389 [email protected]

College Relations DirectorRobert G. Hirsch845-338-5100845-647-6312 [email protected]

Editorial Director, HR ReviewJohn Lewison, [email protected]

Diversity DirectorPortia James585-429-3719585-429-3762 [email protected]

Communications & Members-at-Large DirectorJerry [email protected]

SHRM FoundationSheila McGuinness, SPHR845-279-2995 x140845-279-6726 [email protected]

General CounselJohn Bagyi, [email protected]

F A L L / W I N T E R 2 0 0 5 11

Officers (left to right) Robin McConnell, executive director-elect; Jill Hamilton, SPHR, council treasurer; Annette Guido, executive director; Grant Schneider, SPHR, immediate past executive director. Not pictured: Laura Corey

Officers and Board of Directors

NEW YORK STATE SHRM OFFICERS FOR 2005Executive DirectorAnnette Guido518-356-8850518-456-3707 Home518-356-7584 [email protected] [email protected]

Executive Director-ElectRobin E. McConnell631-547-4256631-547-0314 [email protected]

TreasurerJill Hamilton, [email protected]

SecretaryLaura Corey716-484-0590716-484-7023 [email protected]

Immediate Past Executive DirectorGrant A. Schneider, [email protected]

FRONT ROW: Bob Hirsch, Portia James, Ruth Yorker, SPHR, Diane Lustenader, SPHR, Pat Barnes, SPHRSECOND ROW: Mary Ellen McLean, SPHR, Dave Adams, SPHR, Sheila McGuinness, SPHR, John Sassani,SPHR, Mary Kren, Fran Altshuler, PHR, John Lewison, SPHR, Barry Manus, Annette Guido, Jill Hamilton,SPHR, Jennifer MorseTHIRD ROW: John Fontana, George Brewster, Phil Mazza, Robin McConnell, Brian Martinson, Rick Grossi,Grant Schneider, SPHR, Fernon Cepero, Colin AdamsNot pictured: Laura Corey, Ned Hirt, PHR, Rita Parish, PHR, Jerry McCluskey, Kim Nemath.

SouthWestern (Binghamton,Elmira & Jamestown)John Sassani, SPHR 607-256-2575607-656-2174 [email protected]

NEW YORK STATE SHRMNORTHEAST REGION OFFICERSFOR 2005Northeast Regional DirectorSusan Post, SPHR607-767-0848607-767-0346 [email protected]

Northeast Regional ManagerPhyllis [email protected]

12 N E W Y O R K S TAT E H R R E V I E W

Mission Statement –New York StateSHRM

The mission of the New YorkState Society for HumanResource Management, Inc. is to:

• Promote the educational andprofessional development ofmembers in New York Statethrough support of SHRMservices

• Create value for, and serve theinterests of, SHRM members-at-large and members of SHRMaffiliated chapters in New Yorkstate

• Promote the progress andpresence of SHRM to the HumanResources community in NewYork state through programs,conferences, and otheractivities

• Provide volunteer andleadership trainingopportunities at state, area, andnational levels

• Enhance communicationsbetween national SHRM, theNew York State Society forHuman Resource Management,and SHRM affiliated chapters inNew York state

What We DoThe New York State Society for

Human Resource Management, Inc.(sometimes called the “state council”)is your link between affiliated localchapters and national SHRM. Itsstructure consists of volunteerleaders, with officers elected, andcommittee chairpersons, functionaldirectors, and district directorsappointed by the council.

SHRM’s volunteer leadershipstructure links members with theBoard of Directors, the policy-makingbody of the society. Each chapterpresident serves as a voting memberof the state council. ◗

Ed.

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Principles and Practices of Organization Development, a two-part program, builds and refines fundamen-tal consulting skills, with specific attention to entering a client system, diagnosing the organization anddeveloping an intervention. The Advanced Program in Organization Development and HumanResources Management, a three-part program designed for top-level practitioners, offers tools partici-pants find invaluable in applying to their respective situations.

Year after year these programs attract high-quality participants who value the array of presenters andtopics as well as the opportunity to network with faculty and other participants.

“ODHRM has been the single most impact-ful development experience in my career.”

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JAMESTOWN #0665SHRM – PANY BORDER CHAPTERwww.panyshrm.orgMark Wasiewicz, SPHRSTEL, Inc.715 Central AvenueDunkirk, NY 14048716-366-7792 x212716-366-7840 [email protected]

JEFFERSON/LEWIS COUNTIES #0559NORTH COUNTRY HR ASSOCIATIONCherie A. MooreManpower, Inc.7550 South State StreetLowville, NY 13367315-376-6899315-376-8222 [email protected]

MIDDLETOWN #0317MID-HUDSON VALLEY CHAPTERwww.workplus.com/mhvshrmJohn FontanaThe Fontana Group, LLC61 Peter Bush DriveMonroe, NY 10950845-729-5818845-782-8598 [email protected]

NEW YORK #0001HUMAN RESOURCES ASSOCIATION OF NYwww.hrny.orgLorri Zelman [email protected] Workforce Solutionsc/o Association Associate, Inc.1 AAA Drive, Suite 102Trenton, NJ 08691877-625-4769609-581-8244 [email protected]

PLATTSBURGH #0630CHAMPLAIN VALLEY HUMAN RESOURCEMANAGEMENT ASSOCIATIONKent EldridgeWyeth Research641 Ridge RoadChazy, NY 12921518-846-6322518-846-6397 [email protected]

POTSDAM #0568ST. LAWRENCE VALLEY HR MANAGEMENT ASSOCIATIONBrenda HargraveOgdensburg Bridge and Port Authority1 Bridge PlazaOgdensburg, NY 13669315-393-4080315-393-7068 [email protected]

POUGHKEEPSIE #0524MID-HUDSON HR MANAGEMENT ASSOCIATIONAmy Hagerty, PHRWalden Federal Savings & Loan12 Main StreetWalden, NY 12586845-778-2171 x330845-778-3125 [email protected]

ROCHESTER #0395GENESSEE VALLEY CHAPTERwww.gvcshrm.orgFernan R. CeperoThe YMCA of Greater Rochester444 East Main StreetRochester NY [email protected]

SYRACUSE #0162SHRM – CENTRAL NEW YORK CHAPTERwww.cnyshrm.orgPhillip MazzaHanford Pharmaceuticals304 Oneida StreetSyracuse, NY 13201315-476-7418315-476-7434 [email protected]

UTICA #0221CENTRAL NY HRMAwww.mvshrm.orgPatricia Boulerice, PHRConMed Corp5836 Success DriveRome, NY 13440315-338-0949 Ext. 5225c/o: BettyJo Martin, Chapter Administrator315-841-3140315-841-4192 Fax

WHITE PLAINS #0058WESTCHESTER HUMAN RESOURCEMANAGEMENT ASSOCIATIONwww.whrma.orgDavid Adams, Ph.D., SPHRProfessor of ManagementManhattanville College2900 Purchase StreetPurchase, NY [email protected]

* While affiliated with SHRM, each chapter is anindependent body, and as such has its ownbylaws governing membership.

ALBANY #0105CAPITAL REGION HR ASSOCIATIONwww.crhra.orgChapter Office: 518-463-8687Debra Antonelli, SPHRUNIVERSAL Technologies, LLC159 Delaware Avenue, #309Delmar, NY 12054-1312518-463-6149518-463-8687 Chapter [email protected]

BINGHAMTON #0343SOUTHERN TIER ASSOCIATION FOR HUMAN RESOURCESwww.estahr.orgJohn Sassani, SPHRThe Raymond CorporationP.O. Box 130 South Canal St.Greene, NY 13778-0130607-656-2575607-656-2174 [email protected]

BUFFALO #0232NIAGARA FRONTIER CHAPTERwww.bnhra.orgJon Helmin, PHROlmsted Center for the Visually Impaired1170 Main St.Buffalo, NY 14209716-882-1025, ext. [email protected]

ELMIRA #0412HR ASSOCIATION OF TWIN TIERSGeorge BrewsterGaffer County Relocation12067 Churchhill PlaceBig Flats, NY 14814607-562-3734607-562-3734 [email protected]

LONG ISLAND #0213SHRM-LONG ISLAND CHAPTER, INC.www.shrmli.org/[email protected] Office: 631-209-1895Leslie PerriAdecco175 Broad Hollow RoadMelville, NY [email protected]

ITHACA #0312HR ASSOCIATION OF TOMPKINS COUNTYwww.shrmtc.orgBrian MartinsonIthaca College240 Job HallIthaca, NY [email protected]

F A L L / W I N T E R 2 0 0 5 15

New York StateChapter Directory 2005Listed below are all chapters affiliated with SHRM in New York state. Please contact any one of them for membership informationand the benefits of joining a local chapter. *


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F A L L / W I N T E R 2 0 0 5 17

Box

ABo

x B

SHRM Establishes SpecialExpert Panels

B Y J O H N L E W I S O N , S P H R

NYS-SHRM Member Name of Special Expert PanelFernan R. Cepero Organizational Development PanelTimothy D. Dwyer Global PanelHal G. Gueutal, Ph.D. Technology & HR Management PanelJohn Lewison, SPHR Organizational Development PanelVikesh Mahendroo Global PanelPaul Salvatore, Esq. Labor Relations PanelGrant Schneider, SPHR Human Capital Measurement/HR Metrics Jack Shein, SPHR Technology & HR Management PanelMelanie S. Young, SPHR Global Panel

Topic Areas of the 12 Special Expert Panels:• Employee Health, Safety and Security • Employee

Relations• Ethics • Organizational

Development• Global • Technology & HR

Management• HR Consulting/Outsourcing • Total Rewards/

Compensation/Benefits•Human Capital Measurement/HR Metrics • Workforce Staffing and

Deployment• Labor Relations • Workplace Diversity

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Workers' CompensationWorkers' Compensation

Employee BenefitsEmployee Benefits

ConsultingConsulting

Network ManagementNetwork Management

Property & CasualtyProperty & Casualty

Claim AdministrationClaim Administration

Interactive Web SInteractive Web Siteite

Medical ManagementMedical Management

Disease ManagementDisease Management

Health Risk AssessmentHealth Risk Assessment

For more information, Contact:For more information, Contact:RMSCO, Inc. RMSCO, Inc. Attn: Sales DepartmentAttn: Sales Department

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One of the key results of national SHRM’s restructuring several years backwas the creation of 12 special expert panels. These panels serve as aresource to SHRM and its more than 170,000 members by identifying

topics of importance to the HR profession, reporting emerging trends in thetopic areas, giving advice on matters of professional significance and providingguidance on matters of public policy. Each of the 12 panels is comprised of fiveto 15 SHRM members possessing advanced knowledge in one of 12 humanresource concentrations. (See Box A.)

Panel member competencies must include subject matter expertise in thepanel topic area, good communication and interpersonal skills, an establishedprofessional network with strategic/operational connections, and the ability toparticipate. Members are identified by SHRM staff, reviewed and recommendedby Panel Selection Committee and approved by the SHRM Board GovernanceCommittee. They serve one- to three-year terms. One of the key results ofnational SHRM’s restructuring several years back was the creation of 12 specialexpert panels. These panels serve as a resource to SHRM and its more than170,000 members by identifying topics of importance to the HR profession,reporting emerging trends in the topic areas, giving advice on matters ofprofessional significance and providing guidance on matters of public policy.Each of the 12 panels is comprised of five to 15 SHRM members possessingadvanced knowledge in one of 12 human resource concentrations. (See Box A.)

Panel member competencies must include subject matter expertise in thepanel topic area, good communication and interpersonal skills, an establishedprofessional network with strategic/operational connections, and the ability toparticipate. Members are identified by SHRM staff, reviewed and recommendedby Panel Selection Committee and approved by the SHRM Board GovernanceCommittee. They serve one- to three-year terms. ◗

NYS-SHRM congratulates and recognizes the nine special expert panelmembers from New York. (See Box B.) “We are delighted,” said AnnetteGuido, executive director of NYS-SHRM, “that nine HR professionals fromNew York have been selected to serve on the special expert panels. Itsays a lot about New York and about the wealth of knowledge ourmembers have.”

NYS-SHRM’s

Honor Roll

The New York State Society for HumanResource Management, Inc., wasformed in 1986 as a state “council”

and affiliated with the national Society forHuman Resource Management (SHRM). In1998 the “council” was incorporated as anon-profit professional association underits current name. We are deeply indebtedto all our volunteers, and thank them fortheir leadership, creativity and tirelesseffort to promote the professionthroughout New York state.

Years in Office Top Volunteer Leader 2004-present Annette Guido2001-2003 Grant A. Schneider,

SPHR1998-2000 John E. Lewison, SPHR1996-1997 Roger Hilfiker1994-1996 Ursula Flagg, SPHR1992-1993 Mary Ellen McLean,

SPHR1990-1991 Rosalie Krajci, Ph.D.,

SPHR1988-1989 Kay Robinson, SPHR1986-1987 Cynthia Favata

NYS-SHRM WelcomesB. Craig Smith, SPHR

On July 1, B. Craig Smith,SPHR, took over the reinsas state district director

(central) for NYS-SHRM. Hisregion includes the Albany, Uticaand Syracuse. Craig joins JohnSassani, SPHR, southwestern, Ned Hirt, PHR, north country,John Lewison, SPHR, Hudson-South, and Rita Parish, PHR,northwestern, as the newest NYS-SHRM state director.

“We have a really terrific district director team,” saidAnnette Guido, executive director, welcoming Craig tothe state volunteer structure. State district directorsplay a vital role as liaison among the 18 New York StateSHRM-affiliated chapters.

Smith is a hands-on human resources professional,who has spent more than 15 years in the HR field,working for organizations such as ITT, Colt Industries,and The Orvis Company. Currently, Smith is a partner inThe Pentangle Group, LLC, a human resources consultingfirm. “I plan to visit each of the chapters in myregion,” said Smith, adding that he will provide anyassistance that he can in working with local chapterleadership.

Smith earned a B.A. from Middlebury College and anM.B.A. from Wayne State University. He can be reachedby phone at 518-477-1077, or by email [email protected]. ◗


NYS-SHRM is profoundly saddened by the staggering loss of life and the catastrophicdamage caused by Hurricanes Katrina and Rita. “Our hearts go out to the many SHRMmembers and human resource professionals, in general, that have been so tragically

affected,” said Annette Guido, executive director. Many SHRM-affiliated chapters across NewYork are rallying to the cause through donations of time, money, and professional expertise. Weapplaud their efforts and encourage you to get involved in any way you can. For moreinformation on how you can help, visit the Web site for the National Voluntary OrganizationsActive in Disaster (NVOAD) at www.nvoad.org. ◗

Ed.

Hurricanes Katrina and Rita

S P R I N G / S U M M E R 2 0 0 5 19

“Strategic planning,” said Helmin, “isvital to the chapter’s growth.” With thatin mind, a new board position ofStrategic Partnership Chair has beenformed. The chair will be responsible fordeveloping partnerships with localbusiness. Helmin reports the chapter isin the process of designing a communityrelations advocate to work with localorganizations on an outreach basis.

Finally, a new student chapter—Houghton College—was formed. Soundslike the start of a great relationship.

ELMIRA(HR Association of Twin Tiers)

“Living on the Edge—HR’s Tight Rope”was the theme of the fall conferencescheduled for Oct. 5, at CorningCommunity College. An early draft of theprogram looked good, said PresidentGeorge Brewster, who expected a solidturnout.

The Web site is up and running and isbeing successfully used. A runningdirectory and a chat room are availableto members online. Ask a question andget a prompt answer. Information onmeetings and upcoming events isavailable to the public, as well as tomembers.

The Wage/Benefits Survey went onsale in July. “This has served as avaluable PR tool,” says Brewster. Thechapter proudly displays its Merit Awardlogo. Thanks to Kathy Graham, who

ALBANY(Capital Region HR Association)

The board of directors’ succession planis in full force. Past President FranAltshuler and Incoming President DebraAntonelli co-governed throughout thecurrent program year.

June’s Volunteer Recognition eventwas unique and memorable. A cocktailreception was held at the governor’smansion, followed by a tour. Almost allthe dates, speakers and sponsors for the2005-06 program year are confirmed.

The annual salary survey wascompleted in June and is ready for sale.Altshuler said it is the only survey in theregion. Proceeds are used to fund manychapter activities.

The chapter continues to fosterrelationships within the community “topromote the mission of SHRM and tocontinue to be known as the ‘go to’ HRprofessional association,” said Altshuler.

BUFFALO(Buffalo Niagara HumanResources Association)

Jon Helmin, PHR, chapter president,reports that the board has formed afinance committee to oversee itsfinancial investments. The chapter has astrong presence in the workforcedevelopment arena and is working withJunior Achievement and other areaorganizations to promote workforcereadiness.

Around the STATEB Y D A V I D S H A I R

This column is devoted to

highlighting key activities and events

at the local SHRM-affiliated chapter

level around the state. We also

recognize special achievements by

local chapters. For the location and

contact information of the chapter

nearest you, see the Chapter

Directory on page 15.

handles publicity and marketing, for heradditional input.

ITHACA(HR Association of TompkinsCounty)

A pair of significant relationships hasbeen developed, according to BrianMartinson, chapter president, whichbodes well for the future. One is with thearea Chamber of Commerce. The otherfocuses on the Diversity Consortium, alocal group dedicated to increasingdiversity in the area labor force.

A certification study group wasestablished with a few members of theElmira chapter. Notes Martinson proudly,“One hundred percent of those who tookthe exams passed.”

We say congratulations to all.

JEFFERSON/LEWIS COUNTIES(North Country HR Association)

A meeting held shortly after Labor Daystarted the membership year on the rightfoot. Guest speakers from the localChamber of Commerce discussed a new-style career fair planned for December.Workforce 2020-Investing in Our Futurewill focus on issues like the shortage ofqualified workers in a growing number offields. According to President CherieMoore, other topics scheduled for theprogram year include privacy issuesrelated to HR safety, employeehandbooks and a legislative update.


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notes Perri. Each volunteer will receive abinder spelling out the responsibility oftheir chapter position. The hope is thateveryone will update the binder based onher or his experience, as a resource forfuture position holders.

NEW YORK(HR/NY)

Lorri Zelman, the chapter’s newpresident says she is excited about thechapter’s participation in Volunteers ofAmerica’s “Operation Backpack.” The aimis to help some 11,000 homeless school-age children come up with the suppliesthey need for school. “The results can bedramatic,” said Zelman.

Among recent presentations at thechapter’s monthly meetings have been:“HR Trends,” “Career Advice from thePros,” and “Understanding and ManagingUI Claims.”

For the second year, members canparticipate in the NY Metro RegionalSHRM Salary Survey. Information iscollected and reports generated throughan interactive Web site called WageLink.Zelman said the cost is modest.

Finally, several well received after-hours social events were held. Free horsd’oeuvres and raffle prizes were providedin a relaxed atmosphere allowing forsocializing and networking. We’ll drink tothat (or nearly anything).

MIDDLETOWN(Mid-Hudson Valley Chapter)

Early in September, a half-dayconference opened the chapter’s fallprograms. The kick-off theme was “TheMagic of Fun at Work.” Employers ofchoice, according to Chapter PresidentJohn Fontana, understand “that one wayto attract and retain talented employeesis to create a work environment whereemployees look forward to coming towork.” These employers recognize theimportance of using humor to create funwhile working as a team.

The seminar touched on topics ashumor and change, humor and teams,and humor and stress. Keynote speakerJim Snack has worked with companieslike the Disney Institute to present ablend of magic and message. “He’s alsoan accomplished magician,” notesFontana. No tricks up our sleeve here.

On a sad note, “We had a great loss ofa long-standing member over the summer,Sally Kafka. She was one of the originalstart-up members and has stayed throughthe years.” said Moore. “We’ve created theSally Kafka Memorial Membership Drawingthat will be held every June at our annualsocial meeting.”

JAMESTOWN(PA/NY Border Chapter)

Since this chapter’s inception in 2003,Laura Corey has filled the role ofpresident. Now in its third year, thechapter is pleased that Mark Wasiewiczhas taken the reins. His first act was tocongratulate Laura on her leadership.“She developed a strong foundation forthe chapter’s future,” he declared,“ensuring continued success.”

The program year was filled with well-attended sessions. Among the topicswere “Managing to Have Fun at Work,”“What to Do When EEOC ComesKnocking,” and “A Federal Wage andHour Update.”

A major upgrade to the chapter’s Website enables members to update theirown data online. In addition, there is anintegrated member forum, a blog and ajob board on the site.

“We face many challenges as wemature,” Wasiewicz said. “We have tofoster membership growth, provideappealing quality programs, and involvemore members in volunteer roles.”

LONG ISLAND(Long Island Chapter)

In December, SHRM-LI will hold itsfirst-ever holiday dinner party. PresidentLeslie Perri said, “It will be an event notonly for the members, but for theirsignificant others to see where we goonce a month.” Gift basket raffles willraise funds for the SHRM Foundation,plus a drive for Toys for Tots.

Perri noted that the chapter hasalways prided itself on being a constantHR resource for the community. She saidmonthly meetings and the annualconference truly reflect its needs andinterests. Creating a new Web site is ontap so that members, their employersand business can learn more aboutSHRM, local and national.

Chapter bylaws have been updated,

F A L L / W I N T E R 2 0 0 5 21

PLATTSBURG(Champlain Valley HRManagement Association)

Although it’s only two years old, thechapter is developing rapidly. ChapterPresident Kent Eldridge said “We have anannual growth rate of 20 percent, which ispretty good in anyone’s book.” However,he added, “Our challenge is being locatedin an area of the state made up of smalleremployers without specialized HR staff.We are trying to find a way to bring theminto the chapter and meet their uniqueneeds at the same time.” All we can say isgood luck.

POTSDAM(St. Lawrence Valley HRManagement Association)

President Brenda Lee Hargrave said thatincreasing membership continues to be astruggle for this small chapter.Nevertheless, the chapter has developed amission statement, and a Web site is upand running.

The student chapter from ClarksonUniversity is being assisted financially tohelp it participate in Student Games andto prepare for certification.

A Professional Development Committeewas established and created a plan topromote the chapter and the profession tothe community. Sounds like a lot of goodplanning to us.

POUGHKEEPSIE(Mid-Hudson HRMA)

Incoming President Amy Hagerty tookthe reins in July. She reports thatmembership continues to climb.

The chapter received a Superior MeritAward. Congrats!

A half-day conference was planned forNov. 10, on “Engaging and RetainingTalent: Beyond ADA Compliance.” Theinteractive program will review workplaceaccommodations, as well as newinformation on ADA. Andrea Haenfin-Mott,project director of the Employment andDisability Institute, School of Industrialand Labor Relations of Cornell’s ExtensionDivision, will be the speaker.

Still in the planning stage is the annualholiday social at the Culinary Institute setfor Dec. 1, in the Bounty Room. ContactAmy by phone (845-778-2171 x330) orfax (845-778-3125) if you want to attend.

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received the Donlon Award from UnitedWay as the showplace employer forfamily-friendly workplace practices.

Two very popular events, the chapter’sHR Excellence awards and the United Wayawards, have successfully merged. Theresult? CNY Employer of Choice Awards.

The chapter has been busy planningthe 2006 NYS-SHRM conference.Keynoters are locked in, as is the pre-conference presenter. Breakout speakerswill be from Cornell, Syracuse U. andCorning, among others. An “exclusive”resort package for attendees has beenarranged at the Turning Stone Resort &Casino. CNY’s recent one-day conferencewas entitled “Driving Vision, DrivingResults.” Topics included “AdaptationManagement,” and “Strategic Planning.”More than 120 attended.

UTICA(Mohawk Valley SHRM)

“This has been a year of blending,”reports Chapter President Patti Boulerice.The chapter has focused on professionaldevelopment in both hard and soft skills.“Monthly meetings take on anatmosphere of socializing as well aslearning,” said Boulerice.

A half-day event was held in May. Onemember shared how to keep your HRfunction from becoming a dumpingground, while another member discussed

the impact of Sarbanes-Oxley. An annualgolf outing also was held and drew morethan 60 members and guests.

Boulerice said membership continuesto grow, and a new member incentiveprogram is in effect. Another key goal isto increase certified members. A studygroup is being offered in the fall withLinda Ford, SPHR, as instructor. A teamalso has been formed to examine thechapter’s image.

The annual Ursula Flagg Awards for HRExcellence were held on Oct. 18 with theVP Talent from Revlon as keynoter. Thiswas the fourth such event recognizingtop HR professionals and best-practicesorganizations in Mohawk Valley.

WHITE PLAINS(Westchester HR ManagementAssociation)

Chapter President Dave Adams, Ph.D.,SPHR, takes pride in the continuance ofthe chapter’s Superior Merit status.Congratulations! In other matters, thechapter is in the formative stages ofdeveloping a strategic plan and setting acourse for its future. It is also workingon revising the bylaws. A well-attendedmixer was held in the spring.

Finally, Adams asks, “As job andfamily demands increase and chaptermembers have less time to devote tovolunteer work, what format will keepthe chapter active and vibrant?” Withthis in mind, Adams said the chapterneeds to work on succession planningfor leadership, and at the same timeallow chapter members to reach out toother organizations.

We think many chapters face similarchallenges. ◗

ROCHESTER(Genessee Valley)

Chapter President Fernan Ceparoreports great media exposure. “TheRochester Business Journal nowrecognizes the Genessee Valley chapteras the ‘go to’ source for HR topics,” shesaid. “This has been a real boon to ourchapter, with an increase inmembership and in sponsorships forchapter activities from areacompanies.”

The chapter’s annual legislativeluncheon in June was attended bymembers of the state legislature. Thelocal FOX News affiliate hailed it as apower lunch. A video clip was madeavailable to the chapter’s Web site.

Speaking of the Web site, thechapter made room for a Web master onthe board of directors, and added anSHRM news feed to the Web site. Ceparosaid the members love it.

July was the chapter’s membershipappreciation month with three freeevents paid for by sponsors. If you’renot already a member of the GenesseeValley chapter, these are pretty goodreasons to join!

SYRACUSE(Central New York)

Congratulations to President PhilMazza. Hanford Pharmaceuticals


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F A L L / W I N T E R 2 0 0 5 23

started my business career as a buyer forGimbels in Pittsburgh. I had a wonderfulbranch manager who served as my mentor.He was promoted to the head of laborrelations. He told me I was good atmanaging the “people side” of the business,and as they say, the rest is history.

HRR: How did you get into thevolunteer “business?”

Yorker: I do a lot of charity volunteering,and so it was natural for me to extend thisto my work as a human resourcesprofessional.

HRR: As we recall, you were thepresident of the capital region HRAchapter for several years. How did youjuggle working and heading up a largechapter?

Yorker: It was a tough balancing act.What saved the day was having a chapterboard that was awesome to work with, anda very understanding spouse. It’s a veryactive, vibrant chapter with a greatmembership to draw upon.

HRR: Let’s move on to your role asdirector for the Core Leadership Areaof Workforce Readiness. Why don’tyou start by describing what the CoreLeadership Areas are, and how theycame to be.

Yorker: There are six Core LeadershipAreas: College Relations and StudentChapters, Diversity, Government Affairs,HRCI Certification, SHRM Foundation, andWorkforce Readiness. SHRM restructured in2004, and part of this change was todecentralize core areas to the states.Successful implementation of this changehas been accomplished through thecollaborative efforts of National SHRM andNYS-SHRM.

HRR: Anything else?

Yorker: These six Core Leadership Areasare critical to SHRM’s success in achievingthe mission to serve the professional andadvance the profession.

HRR: How do you define the CoreLeadership Area of WorkforceReadiness? What is it?

Yorker: I see Workforce Readiness aspreparing specific populations, generallyunderserved populations and students, tobe productive members of the workforceof the future. This only can be achievedby collaboration between businesses,educational institutions, workforcetraining programs, and local, state andfederal governments. Working together,

HRR: Ruth, thank you for agreeing tointerview with us. Let’s start off withyour background. Where did you growup, what college did you attend, andwhich organizations have you workedfor?

Yorker: First, let me thank you and HRReview for the chance to talk about thevolunteer role I play with NYS-SHRM. I’malso excited because this is a greatopportunity to tell your readers about thenew core leadership areas that NYS-SHRMhas created. But to answer yourquestions, I was born in Pittsburgh, Pa.,and grew up in Springfield, Ohio. Igraduated from Ohio University with aB.S. in home economics, and received anM.B.A. from the State University of NewYork at Albany.

HRR: How did you get into the humanresource field?

Yorker: Gosh, I can barely remember atime when I wasn’t in HR. I‘ve been aprofessional in the HR field for 15 years.This is actually a second career for me. I

Focus on NYS-SHRM

Ruth Margolis-Yorker, SPHR

Each issue of HR Review focuses on akey volunteer leader of NYS-SHRM.In this issue we highlight Ruth

Margolis-Yorker, SPHR, director, CoreLeadership Area on Workforce Readiness.

Did you know?

Workforce readiness is

one of the six Core

Leadership Areas fully

supported by NYS-SHRM.


we will have to create training andeducational opportunities for thesepopulations to ensure they have theappropriate and necessary skills tobecome productively employable.

HRR: What interests you about thearea of Workforce Readiness?

Yorker: As HR professionals we are inthe unique position to impact state andlocal conversations and initiatives tomatch the skill sets needed by businesswith the capabilities of these

underserved populations. This can beachieved by determining where there aregaps in knowledge, skills and abilities,and then working to fill these gaps. Itruly feel that we have an obligation notonly to make sure underservedpopulations are employable, but alsothat we reach out and offer employmentopportunities to them.

HRR: You said that part of your role isto provide a model or leadership to thelocal chapters in New York state. Howdo you envision that this will work?

Yorker: From my perspective, every SHRM-affiliated chapter in New York will have aworkforce readiness advocate who willeither spearhead his own initiativesdetermined by local community needs, orwill embrace the NYS-SHRM initiative(currently in development).

HRR: Can you cite an example?

Yorker: One initiative we’re looking at, forexample, is collaborating with veteransgroups to determine the needs of disabledsoldiers and to help reintroduce them intothe workforce. Many disabled veterans noware trying to get back some sense ofnormalcy in their lives. I believe NYS-SHRM, through the workforce readinesscore leadership area, can help with theirtransition and, in doing so, make acontribution to the workforce andultimately to society.

HRR: Where can members go to learnmore about volunteering in the CoreLeadership Areas?

Yorker: They certainly can contact me [email protected]. They also can goto the SHRM Web site at this URL(www.shrm.org/chapters/resources/wradvocacy.asp ). The last issue of HR Review alsohad a piece in it about the CoreLeadership Areas and who to contact.

HRR: Finally, is there anything elseyou’d like to say to our nearly 14,000members?

Yorker: Yes. I’d like to thank you and HRReview for allowing me to share my ideasand vision on workforce readiness. Ibelieve that this is an initiative that willonly grow as our population changes andthe needs in the business communityevolve.

HRR: Thanks ever so much, Ruth. Wewish you well. ◗

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any employers receiving state fundscould be required to prove they did notspend any of the funds inappropriately,and to submit those records to any stateentity and the state attorney general, ifasked to do so.

In reviewing the case, the FederalAppeals court held that the law waspreempted by the federal National LaborRelation Act (NLRA), and permanentlyenjoined the state from implementing orenforcing the law. The court’s decisionensures that employers who receive statefunds will be free to communicate withtheir employees regarding unionorganizing without having to adhere torigorous and burdensome record-keepingrequirements. A similar California lawwas overturned three years ago.

Workers’ compensationreform

Workers’ compensation reform, whichsaw three bills in play and quite a bit ofactivity during the 2004 session, slidfrom view, as no legislator took aleadership role during the 2005 session.Workers’ compensation reform will be the

top employee benefits issue for businessagain in 2006, since New York Stateremains a high-cost, low-benefit state. Itprobably will be one of the issuescommanding our attention again at the2006 Visit Albany Day, the HRprofessional’s annual lobbying day herein New York state, scheduled for April 4.(See page 26 for more information.)

Card checkOrganized labor’s preferred methods of

unionizing employees continue to moveaway from the traditional secret ballotelection toward methods such as “cardcheck.” This method requires the union tosimply collect signature cards from amajority of employees to get certified astheir bargaining representative. S.3008(Spano) / A.3292 (John) focused onemployers who operate residentialfacilities for the disabled and permittedthem to enter into agreements conferringrepresentation through “card checks.”While business opposed these bills, theypassed in both houses and await thegovernor’s review.

Paid family leave–“Familiesin the Workplace Act”

While seeing no action in the senatethis session, the assembly waited until thelast session day, June 24, to take updebate on this bill.

These bills, S.1501 (Morahan) / A.1301(Nolan), would provide disability benefitpayments to non-disabled persons on

The “Train” was ontime…finally

Following a string of late budgetsspanning twenty years, the legislaturegot it right during the 2005 legislativesession. It enacted a budget by theconstitutionally required deadline of April1. Needless to say, there was anabundance of back-slapping to goaround, but there was also time for thelegislators to go about their businesswith some normalcy until adjournment onJune 24.

“Labor Neutrality” lawoverturned

The most significant labor/humanresource issue that has unfolded so far in2005 is the May 17 decision by a federalappeals court to overturn the state’s2002 controversial “labor neutrality” law.

The legislature passed the “neutrality”act in July 2002 with broad support fromboth political parties and New York’slabor unions, despite strong objectionsfrom business and groups representinghospitals, nursing homes and otherhealth-care providers. The law restrictedthe ability of employers to use publicfunds to hire or pay attorneys,consultants or other contractors, whoencourage or discourage unionorganization or participation in uniondrives, or to hire or pay the salary ofemployees whose principal job duties areto encourage or discourage unionorganizing drives. The law also said that

New York State SHRM Legislative Director

B Y T O M M I N N I C K , S P H R

The View from

Albany

Did you know? Workers’

compensation reform will

be the top employee

benefits issue for business

again in 2006. It’s likely to be

a hot topic at Visit Albany

Day on April 4, 2006.


federal Family Medical Leave to care fornewborn or newly adopted children, or tocare for seriously ill immediate familymembers. In addition, these bills wouldallow disability benefits while anemployee provided care to family andhousehold members for situations notcovered under the federal Family MedicalLeave Act (FMLA), as well as benefitpayments for employees to attendmeetings with their children’s teachers andother school activities, and bereavementleave. It also eliminates the seven-daydisability waiting period, and requires

employers to pay up on the first day ofdisability or absence. After debate, itpassed in the assembly on a 92 to 29 vote.

Unemployment insurance forstrikers

S.654 (Marcellino) / A.1302 (Nolan)were back from the 2004 session. Thesebills, which would waive the seven-weekunemployment insurance waiting periodfor strikers if the employer hiresreplacement workers, passed the senatebut remained in the assembly laborcommittee.

Access to personnel recordsS.3597 (Maltese) / A.4411 (Heastie)

were new to our radar screen during the2005 session. These bills would requireemployers to allow employee access to,and copying of, personnel files. Thesenate passed it in April but theassembly bill remained in the codescommittee for the duration of thesession.

Restriction on nurses’overtime

S.169 (Morahan) / A.1199 (Nolan)were back from last year’s session. Thesebills would prohibit employers fromassigning overtime to RNs and LPNsexcept for natural or other disasters. Theunions continue to push for this kind ofrestrictive legislation as a relief for themfrom negotiating overtime issues withemployers. While both bills remained incommittee for the whole session,pressure continues to build on thelegislators to pass these bills. Then itwould be only a short jump to overtimeassignment restrictions for all employersin New York state.

Make your voice heardWe remain the most highly unionized

state in the U.S. Our legislators hearplenty from the unions about legislation,but do not hear enough from us, ashuman resource professionals, about theimpact that these and other bills haveon our businesses. As HR practitioners,we need to educate our elected officialsabout these impacts.

Please mark your calendar and plan tojoin us at our annual legislative day forHR professionals in Albany on April 4,2006, and let your voice be heard! ◗

About the AuthorTom Minnick, SPHR, is the

legislative director for NYS-SHRM.Tom writes regularly for HR Review.We are indebted to him for hisinsights into Albany and statelegislative activities. He can bereached by phone at 518/465-7511or by email [email protected].

F A L L / W I N T E R 2 0 0 5 27

A Yes. This contrasts with the ADA’streatment of drug abuse. Currentillegal use of drugs is not

protected by the ADA and you need nothire or retain someone who is currentlyengaging in the illegal use of drugs. Tothe EEOC, tests for the current illegal useof drugs are permitted at any time priorto and during employment. However, anemployee with a history of drugaddiction may be protected under theADA but only to the extent that he is nota current user.

While people with alcoholism may beindividuals with disabilities, the ADAallows employers to hold them to thesame performance and conduct standardsas all other employees, including rulesprohibiting drinking on the job orreporting to work under the influence ofalcohol. Thus, an employer may fire anemployee who is drinking alcohol on thejob if it has a uniformly applied ruleprohibiting such conduct. However, anemployee undergoing treatment foralcoholism who is able to perform theessential functions of the job isprotected by the ADA. There may betimes when you may have toaccommodate an employee foralcoholism. An example provided by theEEOC is that an employer may have tomodify a rule prohibiting personal phone

QWe have a number of employeeswho are paid on a commissionbasis. Are they exempt from

overtime under the new federal FLSA?

A It depends. Generally, commissionsare included in the totalcompensation paid to the

employee for purposes of calculating theregular rate. In other words, an employeeis not exempt from the overtimerequirements of the FLSA merely becausehe is paid on a commission basis.However, Section 7(i) of the FLSA doesexempt from the Act’s overtimerequirements some employees who arepaid on a commission basis. For theSection 7(i) exemption to apply, threerequirements must be met. First, theemployee must be employed by a retailor service establishment. Second, theemployee’s regular rate of pay must bemore than 1.5 times the applicableminimum wage. Third, more than half ofthe employee’s compensation for arepresentative period (not less than onemonth) must represent commissions ongoods or services.

QTwo of our employees are intreatment for alcoholism. Are theyprotected under the American with

Disabilities Act?

Experts...Experts...Readers are invited to submit their questions about human resource practices andemployment law to HR Review, where experts in their fields will provide timely answers. Emailyour questions to the editorial director at [email protected].

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A Yes, you can do both. The FLSArequires that all employees be paidat least the minimum wage and

overtime for all hours in excess of fortyper week. The overtime requirements donot apply to “exempt” employees. Anexempt employee must generally be paida fixed salary each workweek regardlessof how many hours he actually worked. Ifyou dock an exempt employee’s pay forworking less than forty hours, you incur asignificant risk of losing his exemptstatus as this kind of docking violates the“salary basis” test.

Although you cannot dock an employee’spay for tardiness, you can require him tobe present during working hours anddiscipline the employee if he is not. Thiscould include a disciplinary warning tothe personnel file and termination forrepeated violations.

This is also a good time to remind allprivate sector employers that theyshould have an FLSA safe harbor policyfor exempt employees. A proper safeharbor policy will allow employers undercertain circumstances to save the exemptstatus of employees if their pay isimproperly docked. Without such apolicy, an improper deduction couldresult in the loss of exempt status for allsimilarly situated employees andsubstantial overtime liability. ◗

About the AuthorHR Review is indebted to

Stanley Schair, Esq., a member ofthe law firm of Bond, Schoeneck &King, PLLC, and resident in its NewYork City office. A core practice ofthe firm is labor, employment andbenefits law, representingmanagement exclusively. Schaircan be reached at 646-253-2324,or by email at [email protected].

Ask the Experts

F A L L / W I N T E R 2 0 0 5 29

News You Can Use...NewsYou Can Use...

increase over 2002. Bottom line: keepthose sheepskins coming.

Skinny yourself rich?Researchers at Ohio State University

have found that Caucasian adults whoreduced their body mass index (BMI) scoreby ten points saw their net worth increaseby about $12,000. I guess that gives newmeaning to the phrase “One can’t be toorich or too thin.”

Shredding encouragedIn case you missed it, Congress

addressed the issue of identity theft byenacting the Fair and Accurate CreditTransactions Act of 2003 (affectionatelycalled the FACT Act). This past June, theFederal Trade Commission issued finalrules on the proper disposal of consumerreport information and records. The newrules state that any person who maintainsor otherwise possesses consumerinformation for a business purpose mustproperly dispose of such information bytaking reasonable measures to protectagainst unauthorized access to or use ofthe information in connection with itsdisposal. “Consumer information” isdefined as “any record about anindividual, whether in paper, electronic, orother form that is a consumer report or isderived from a consumer report.” Thus,employers who perform credit checks onemployees, or obtain personal information

There’s dumb and thenthere’s stupid

Not long ago, a Wal-Mart shopper inGeorgia went on a buying spree. She racedthrough the store, filling up not one, butseveral, shopping carts. Exhausted, shemade her way to the check-out counter,where the clerk rang up her purchases. Thetotal: $1,672. Without missing a beat, theshopper reached into her purse andhanded the clerk a $1 million bill, askingfor change in cash. Having the good senseto know that the largest U.S. bill incirculation is $100, Wal-Mart called thepolice. As we said: there’s dumb and thenthere’s stupid.

More learning means more pay…

…according to the U.S. CensusBureau, which recently releasedinformation showing that having acollege education significantly increasessalary throughout an employee’s career.In 2003, says the bureau, employees overthe age of 17 with a bachelor’s degree,earned an average salary of $51,206.Employees over the age of 17, with only ahigh-school diploma, earned only$27,915 on average. Worse off still werethose with no high school diploma. Theyearned an average of just over $18,730.The bureau reported that the averageannual wage for all U.S. workers over 17was $37,046 in 2003 – a two percent

about employees from referral services,must be careful to dispose of theinformation in a way that protects itssensitivity. Employers whose employees’identities are stolen may be subject toactual damages from their employees –statutory damages of up to $1,000 peremployee, civil fines of up to $2,500 peremployee, and class-action lawsuits. Toour human resource professionals, we’dsay, check with your friendly lawyer onthis one.

Did you know?

In 2003, employees over

the age of 17 with a

bachelor’s degree earned

an average salary of

$51,206. Employees over

the age of 17 with only a

high-school diploma

earned $27,915 on

average, and those with

no high school diploma

earned an average of

just over $18,730.

(U.S. Census Bureau)


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Firing your CEOAs change agents, many CEOs fail the

test. According to BusinessWeek, a studyconducted by Leadership IQ found that 31percent of CEOs get fired for mismanagingchange, and 28 percent get the hook for“ignoring customers.” What’s reallyinteresting is that 23 percent of CEOs getfired for “denying reality” (something wealways suspected), and 22 percent areheaved out because they are “all talk andno action.” Now who would have thought?To learn more, log on towww.leadershipiq.com/news_mismanagement.html.

Who’s reading your email?Well, the answer is…a lot more folks

than you think. According to a recentsurvey conducted by Proofpoint Inc., morethan a third (36 percent) of companiessay they employ staff to monitor emailusage, and (worse yet) another 26.5percent say they plan to hire such staff inthe future. Even more interesting – overone in four (27 percent) of the companiessurveyed say they have fired employees

• RETURN-TO-WORK PROGRAMS• BEHAVIORAL HEALTH • EMPLOYEE ASSISTANCE PROGRAMS

1,000,000 U.S. employees will miss work today due to stress.

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Stress is responsible for more than half of the 550,000,000 workdays lost everyyear and costs U.S. businesses nearly $1 billion each day.

MHN can help. With a 30-year success record in delivering behavioral health and Employee Assistance Programs (EAPs), we understand the importance ofincreasing workplace productivity, managing medical costs and improving a company’s bottom line.

We offer workplace solutions that improve employee health and productivity by providing clinically-based solutions that drive behavior change. All of our solutionspromote early intervention and wellness so behavioral health issues can be resolvedbefore they become workplace problems.

For more information, call MHN today at (800) 924-0388 or visit www.mhn.com.

MHN25290© 2005 MHN, Inc. All rights reserved.

for violating email policies; and 35percent say they have investigated asuspected email leak of confidential orproprietary information in the past year.So much for privacy.

Those “R & R” daysNot long ago, the Hudson division of

Hudson Highland Group, Inc., conducted anational survey of 2,202 Americanworkers, asking how they handle their sickdays. Surprisingly (or not surprisingly),nearly one-third of the workers surveyedsaid they have called in sick just to get a“mental health day” or for some otherreason unrelated to their health. For moreinformation, visit the Hudson Web site:www.hudson-index.com. ◗

Disclaimer:As careful as we are here at HR Reviewmagazine in reporting employment lawand related matters, we are nosubstitute for, nor is the above intendedto replace, competent legal counsel.

F A L L / W I N T E R 2 0 0 5 31

This year’s state SHRM conference – Capturing the Multi-faceted Gems of HR – was held in Albany, N.Y., and what aterrific conference it was. With over five dozen vendors and

exhibitors and hundreds of human resource professionals fromaround the state, the 2005 Conference and Expo was declared ahuge success.

Following an excellent pre-conference workshop (and a greatpresentation by Alexis Graham on “Diamond in the Rough”), theconference kicked off with a brilliant keynote presentation byMargaret Morford, president of The HR Edge, Inc., a nationalmanagement consulting and training company. Her topic was“The Savvy Owl – Power, Politics and Influence.” Her theme:accomplishing the goals and objectives of any organizationrequires more than just smart employees. Morford said beingeffective requires savvy employees who know how to forgealliances and avoid animosities. Not much we could add to that.

Conference participants had the opportunity to select from anumber of high quality concurrent sessions targeting everythingfrom building inclusive work environments to executivecompensation to Sarbanes Oxley to how to make a dynamitepresentation.

Nancy Blair (left), Annette Guido, executive director, NYS-SHRM, JillHamilton, SPHR, treasurer, NYS-SHRM, Susan Post, SPHR, regional director,SHRM, and Andrea Thomas, CRHRA member, survey the vendor area

Sue O’Lena (left); Ruth Margolis-Yorker, SPHR; Chris Curtin; Peter Newman;Debra Antonelli and Fran Altshuler, SPHR, enjoy the festivities

Annette Guido, NYS-SHRM executive director; Mary Kren, SPHR,2005 conference chair; Sue Meisinger, SPHR, CEO & CEO, SHRM;and Susan Post, SPHR, CAE, northeast regional director or SHRM

Speakers Fanny Glover (left) Nan Poston, Dana Moss, PeggyCoryea and Kerry Verschueren get ready to present session onBuilding an Inclusive Work Environment

2005 Conference Team MembersFront row: Mabel Sillman, MVSHRM member; Fran Altshuler, SPHR, pastpresident of CRHRA; Jim Amanatides, SPHR, VP, CRHRA and conferenceregistration chair; Ruth Margolis Yorker, SPHR, conference programmingchair; Back row: Deb Antonelli, SPHR, president of CRHRA; Matt Gratten,conference marketplace chair; Chris Curtin, Esq., publications chair; JayCanetto, sponsorship and exhibition chair; Mary Ellen McLean, SPHR,facilities chair; Not pictured: Annette Guido, executive director, NYS-SHRM;Patricia Barnes, SPHR, conference treasurer; Peter Newman, marketingchair; Alison Rosenblum, special events chair; Lyn Kemnitzer, volunteerchair; Grant Schneider, SPHR, Web master

2005 State

Conference and Expo Attracts Hundreds


NYS-SHRM meets to discuss a broad range of issues

Registration team doing the “wave”

Participants visit vendors during conference

Susan Post, SPHR, does agreat job as conferenceemcee

Keynote SpeakerMargaret Morfordaddresses the audience

David Wallingford, regionaladministrator representing GovernorGeorge Pataki’s office, deliversproclamation as Susan Post, SPHR,watches

Speaker Michael Maryn, Esq.presenting on Trends inExecutive Compensation

Al Smith (right), VP, LeeHecht Harrison, vendor,talks to participant

Magician does a trick forparticipant

Although the sessions were rich and practical in content,participants had ample opportunity for casual networking. Whetherit was enjoying the unique sights and sounds of the Desmond Hotel– the conference headquarters – or sharing a meal in the spaciousconference ballroom, everyone had a good time.

Keynote speakers on day one of the conference included SusanR. Meisinger, SPHR, president and CEO of the Society for HumanResource Management (SHRM). She spoke to a packed audience ontrends in human resources and the competencies that humanresource professionals will need to advance the profession (andtheir careers). Among those competencies are becoming a strategiccontributor, developing keen business acumen, creating personalcredibility, delivering the HR “goods” and becoming techno-savvy.

Karen Shadders, vice president of people for Wegmans FoodMarkets in Rochester, N.Y., was the afternoon keynoter. Hermessage: understanding how to transform your organization into a“jewel.”

And finally, we’d be remiss if we didn’t mention Alex Valdez’sentertaining and inspiring performance. Valdez brought 25 years ofspeaking and entertaining experience to the conference. Winner ofthe first Norman Lear Comedy Competition, he has been a renowned

public speaker to over 250 organizations. The theme of hisinspirational message was, “We all are different, but in a muchgreater sense, we are all the same.” For example, Valdez said each ofus is disabled in some way or another. While some of thesedisabilities might be obvious (e.g. blindness), others are harder torecognize. His message? We can only reach our full potential whenwe remove the barriers of fear, pessimism, pride and unforgiving.What a way to end an outstanding state conference.

A special thanks goes to the 2005 conference emcee Susan Post,SPHR, CAE, northeast regional director for SHRM. She did a superbjob keeping us all on track and moving in the right direction.

No description of the conference and expo would be completewithout mentioning the more than 60 sponsors, vendors andexhibitors who showed attendees the latest programs, products andservices available to the human resource community. And thanks toour one-, two-, and three-star partners for their support and forsharing their know-how.

Finally, a thank you to Mary Kren and her 2005 conference andexpo team who made it all happen. Annette Guido, executivedirector, NYS-SHRM, said, “We couldn’t have done it without thiswonderful team of volunteers.” We couldn’t agree more. ◗

Ten Tips for Packaging a Powerful Brand Identity

Branding Yourself asan HR Professional

B Y C A R O LY N A I S H T O Nresource professional, to brand yourself? Youare on the front lines. You are the image ofyour company to the external world and toyour colleagues internally, but in that case,it goes a step further. You set the standards,the guidelines. The way you package yourselfsets expectations that your colleagues willfeel compelled to emulate.

Sell it, don’t tell itOften human resource professionals are

viewed as staff to line managers accountablefor an organization’s products or services.Translation: HR practitioners must “sell”their side of the story. They can’t just “tell”it. Being well branded as an HR professionalcan make all the difference in the world.Brand identity is the impression you make,the image you project as an HR professional.

In a comprehensive study oncommunications, a sociologist from theUniversity of California showed that 55percent of how we brand ourselves is visual(look, dress, posture, eye contact and soon); 38 percent is vocal (how we sound, thepitch of our voice, diction, etc.); and sevenpercent is verbal (the content of what wesay). Bottom line: How you communicate iscritical to your success and to shapingothers’ perceptions of you.

Ten tips for creating yourown brand

So how do you go aboutestablishing a powerful brandidentity as a human resourceprofessional? Here are my top tentips.

1Sharpen Your Techno-Communication Style

How you communicatetechnologically influences people’s

perceptions of you. Time isprecious for everyone. You wantpeople to identify you as

Much is written today aboutbranding. A strong branddifferentiates itself and elicits an

emotional response from us. ThinkStarbucks, Tiffany, Nike, Coca-Cola,Microsoft. A brand is a promise. It isintangible – not something we can see ortouch. Yet, we trust it, believe in its promiseof value and are willing to pay more for it.

Why is personal brandingimportant?

Personal branding is becoming moreprevalent as the competition for jobsincreases, and the need to stand out fromthe crowd intensifies. Developing a powerfulpersonal brand is for people who want toraise their profile and positively influencethe way others perceive them. It reflectswho they are, what they stand for and whatmakes them unique.

Why is it important for you, as a human

someone they can count on to be briefand to the point. For example:• Voice mail: When you leave a message,

keep it brief. Don’t drone on, explainingevery detail of the issue you’re callingabout. Identify yourself, give yourphone number, then leave a shortmessage. Smile while you’re speaking –it comes through. Really! End your callby repeating your phone number.

• Phone conversations: Respect others’time. Know what you need toaccomplish, be clear about the purposeof the call, and don’t interrupt whilethe other person is speaking.

Building YourOwn Brand• Listen more, talk less

It helps build relationships.

• Keep your desk unclutteredIt projects “organized.”

• Be on time for meetingsIt shows you take the topic seriouslyand have respect for others.

• Gag gossipYou’ll be respected.

• Have an objective and agenda formeetings you callIt projects leadership and being in control.

• Shake the hands of men and womenYou’ll be perceived as confident.

• When in doubt, say soYou’re being honest.

• When a confidence is shared withyou, keep itBeing someone people can trust is #1.

33

4 When In Doubt, Dress Well

How you dress influences people’sperception of you. Just ask the New YorkYankees. In 1919, the new owner decidedhe wanted his team to look like a millionbucks – like the guys on Wall Street. So heoutfitted them in pinstripes. You don’t haveto wear pinstripes, but you should try for amillion bucks. If you’re going into anunfamiliar situation or meeting with newapplicants and are unsure about what towear, choose a suit. It projects confidencein yourself and respect for the other party.

5 Sound As Good As You Look

Speak loudly enough to be heard,particularly in a large group meeting. Toooften, half the room can’t hear those whoare speaking. Be sure to ask if everyone canhear you. Avoid giggling or laughing – itcan be brand-breaking.

6 Show Genuine Interest inWhat Others Have to Say

Everyone likes to talk, particularly aboutthemselves or their business. Periodically, Imeet with the president of an organizationwho does most of the talking during thehour. But I always walk away with theinformation I want. The secret is to askopen-ended questions (who, what, when,where, why, how) to elicit ideas and inputfrom others. It doesn’t just make them feelvalued. You’ll make a favorable impression,and get what you want.

7 Listen Attentively

Once you’ve asked a question, preferablyan open-ended one, listen attentively tothe response. This means maintaining eyecontact with the responder and makingmental notes of the points you want toaddress in response. Most HR people don’thave a problem with listening. They do a lotof it – especially those in employeerelations. But just in case, don’t thinkabout the next question, or let your mindwander. Stay focused.

8 Never Assume

We’ve all heard people interrupt othersin meetings or attempt to finish otherpeople’s sentences. They assume they know

what the speaker is going to say, and cutthe person off mid-sentence. Not only is itrude, it comes across as arrogant.

9 Build Your Brand

Use your network of colleagues andfriends to create visibility for yourself andyour brand. They know your value and brandidentity, and can be your best marketing andpublic relations support system when youneed it. Begin to diversify and expand yourcontact list. Join new organizations, andvolunteer for committee or teamassignments. It will help you buildconfidence along with building your brand.

10 Be True To Your Brand

Above all, be yourself – true to who youare and what you stand for. That’s theultimate power of your brand and value ofyour brand identity. When you’re true toyourself, you foster trust. And trust is whatbranding is all about.

A final wordThe hallmark of a good brand – your

brand – is knowing what makes you unique,and presenting yourself with consistency.Your brand identity, how you packageyourself, plays a strong role in helping youbuild your brand.

According to Tom Peters in his article TheBrand Called You, people “…want toassociate with brands whose powerfulpresence creates a halo effect that rubs offon [them].” Incorporating these ten tips inyour package can help you develop apowerful presence that will rub off on others– and brand you as the HR professional thatyou are. ◗

• Emails: We all get inundated with themdaily, but yours will be read if you’veestablished a strong brand identity.People will know they can count on yourmessage to be brief and relevant. Sodon’t ramble on, making it a struggle tofigure out what you’re trying to get at.Keep your message short and to thepoint. The rules of writing apply as well;watch your grammar, spelling and typos.If your email system has a spell-checker–use it. Finally, leave off theurgent mark, and stay away from using all caps. People see that as SHOUTING!Remember, you want the impression to be positive.

• Cell phones: The number one rule –remember to turn them off at meetings,whether in your office or in a conferenceroom. Otherwise, you come across as self-important or forgetful of detail.

• Laptops: A manager recently told meabout a colleague who brings hiscomputer to every meeting, and works onit throughout the proceedings. It is rude,distracting and unnecessary.

2 Meet People with Confidence

When introduced to someone for the firsttime, look them in the eye, extend yourhand, smile, use their name, and showgenuine pleasure in meeting them with afirm handshake. If you’re introducing oneperson to another, say the name of the moreimportant person first, regardless of gender.This approach is most helpful whenintroducing applicants to the nextinterviewer.

3 Speak Assertively andCompellingly

Some HR pros don’t like to speak inlarge groups or meetings. Whether you’reone of those or not, never start out bysaying, “I’m not much of a speaker, but...”That’s when others immediately tune out.To ensure that people listen to what youhave to say, avoid self-discounting words.Stay away from “maybe,” “perhaps,” “I’mnot sure, but...” Be direct. It projectsconviction and assurance. Keep distractingfiller words such as “Um,” “Uh,” “Youknow,” out of your speech. To take anobjective look at how you sound when youspeak, tape-record yourself, or ask a trustedcolleague for frank feedback.


About the AuthorCarolyn Aishton is senior associate

with Pachter & Associates, a leaderin business communications skillstraining and executive coaching forthe Fortune 500. Based in New YorkCity, Aishton specializes in helpingexecutives present themselves morepowerfully and assertively. Formerly,she was vice president of corporateaffairs at Avon Products. She can bereached at: www.pachter.com or 212-838-3744.

F A L L / W I N T E R 2 0 0 5 35

our survey in the greater Genesee Valleyarea, only 27 percent said they use pre-hire assessments; 39 percent said theirhiring process doesn’t produce “A” playerresults; and 66 percent said they spend$2,500 or more on each hire. Overall, one-third said they were less than satisfiedwith their current hiring process.

Why use pre-hireassessments?

Pre-hire assessment instruments andpractices, if properly integrated into thehiring process, clarify essential jobattributes critical to performance success

and provide benchmarking data.Assessments zero in on candidates’aptitudes, and predict their ability toperform specific types of work. Theyassure that applicants possess essentialjob qualifications, and provide objectivedata in an otherwise subjective process.In short, assessments can be helpful ineliminating personal bias from the hiringprocess, which in turn can bolster adefense against discriminatory ornegligent hiring claims.

The U.S. Department of LaborEmployment and Testing Administrationstates, “…the practice of using a variety

Of 57,000 managers surveyed in 35countries, 90 percent list hiringamong their most important

decisions. The question is, how can youassure you will hire the best person, thepotential “champion?” The answer maywell lie in cost-effective pre-hireassessments to give you a more completepicture of performance potential. Whenintegrated into your hiring process, pre-hire assessments may make the differencebetween a good hire and a great one.

Survey of hiring practicesOf the sixty companies responding to

Pre-HireAssessments

Hiring ‘Champions’ in a More Compliant SystemB Y R O B E R T P E T E R , P H R , A N D

P A U L K E N E A L LY, E S Q .


Whole-person multipleassessment

A whole-person assessment systemincorporates multiple assessments or amulti-faceted assessment. An example isthe TriMetrixTM job benchmarking and pre-hire assessment tool. The TriMetrix toolassesses over 80 job attributes(characteristics and skills), behaviors, andattitudes (motivators). The result is theassessment of three different areas ofperformance potential. Multipleassessments, which are integrated into acomprehensive screening and interviewingprocess, fulfill whole-person approachguidelines, and create a more complianthiring process.

The TriMetrixTM ModelJB = Job BenchmarkPP = Performance Potential

The TriMetrix™ system is a trademark of BillBrooks and Bill J. Bonnstter, distributed byThe XLR8 Team, Inc.

Key Criteria in Selecting Pre-Hire Assessments

To validate achievement and physicalassessments, it’s important to check thatthe content correlates directly to the jobrequirements. Aptitude assessments,however, may require a more thoroughexamination. Developing and validatingin-house testing programs requiresspecialized knowledge of sample design,test analysis, and statistical methods.Thus, many employers purchasecommercial tests from companies thatspecialize in employee testing.

Providers of credible assessments should

have data available for your reference.Validity numbers may vary by instrument,but you want to find a benchmark validityco-efficient of +0.70. Be sure thatassessments have been validated for genderand cultural impact, and are free of bias.

When reviewing data, look for:• Reliability – the consistency of the

tool measuring what it is intended tomeasure

• Validity – the accuracy of the toolmeasuring what it is intended tomeasure

• Predictability – the demonstrated linkbetween the instrument’s data andcandidates’ performance

Compliance issuesA majority of assessments have been

validated and tested, many based on EEOCcompliance standards, thereby limitingjudicial action. To help you develop orselect assessments that maximizecompliance, follow these guidelines:1. Create a job benchmark profile that

links your assessment tool to jobsuccess.

2. Internally validate the assessment tool’sapplications with high and poorperformer analysis.

3. Use assessments as part of a multi-faceted interviewing and hiringstrategy.

4. Standardize your hiring process, usingthe assessment in a consistent manner.

5. Inform candidates of your processes.Provide a disclaimer statement.

of assessment tools enables you to get amore complete picture of the individual.The practice of using a variety of testsand procedures to fully assess people isreferred to as the whole-person approachto personnel assessment. This approachwill help reduce the number of selectionerrors and boost the effectiveness of yourdecision making.”1

What types of assessmentsshould you consider?

Using a multi-faceted strategy is a keycomponent of the whole-person approachto prospective personnel assessment. Thisstrategy links assessment criteria such asachievement, aptitude, and physicalcharacteristics to bona-fide occupationalqualifications (BFOQs).• Achievement assessments target

knowledge and skills relevant to thejob. Many temporary and permanentplacement organizations, as well asemployers, use tests to determineability to type, read, completemathematical equations, readblueprints, and to documentknowledge of a specific subject matter(e.g., human resources). Achievementassessments may be created in-houseor purchased online from varioussoftware and testing center providers.

• Aptitude assessments identifypotential to perform based oncognitive abilities, behavioraltendencies, or personalitycharacteristics. It is the fastestgrowing yet most scrutinized type oftesting, and is best used as part of acomprehensive strategy. As with allassessments, it is best to rely on thosethat are well researched and designed,and that have been tested over time.

• Physical assessments measure abilityto perform specific physical functionsrelated to the job, such as dexterityexercises linked to assembly skills, orlifting exercises associated with awarehouse job. Determining thesecritical abilities prior to hire can saveyour organization the considerablecost of future turnover andcompensation.

AdditionalResourceshttp://www.uniformguidelines.comhttp://www.dol.gov/ http://stats.bls.gov/http://www.doleta.gov/http://www.labor.state.ny.us/http://www.hr-guide.com/selection.htm

For additional information,complimentary assessment trials,sample interview question sets, reportsamples, or case study analysis relatedto pre-hire assessments, contact (585) 426-7520 [email protected].

Job AttributesWill they do it?

Job BehaviorsHow will they

do it?

Job AttitudesWhy will they do it?(motivation)

JBPP

1 US Department of Labor Employment and Training Administration, Testing and Assessment anEmployers Guide to Good Practices, 2000

F A L L / W I N T E R 2 0 0 5 37

performance potential for comparativeanalysis. Both integration points allowyou to use the feedback data to targetkey performance indicators measured byyour assessments.

Case study #1A Fortune 500 life science products

provider identified the need to strengthenits hiring process and interview strategiesfor commercial account managers (i.e.,field sales representatives). Utilizingresearched-based benchmarking data, thehiring team integrated top performingsales indicators into a customized jobbenchmark profile. Indicators included keyattributes, behaviors, attitude motivators,and sales practices. An “ideal” selectionprocess was flowcharted, including thepoint of candidate assessment (followinginitial screening and a first level managerinterview). Customized interview questionsets, based on the job benchmark profilefactors and position accountabilities, weredeveloped and then integrated into thenew selection process. A preliminary jobscreening profile was provided to thesourcing agents (e.g. search firm) toprovide higher quality referrals, andeliminate inappropriate first levelinterviews. Standardizing the process, and using pre-hire assessmentinstruments, provided thorough data forcandidate comparison, thereby improvingnew hire quality.

Case study #2A national charter school organization

made school leadership quality a priority,and wanted to ensure that only top-levelleaders were hired into principal positions.Two operational teams were selected toprovide input into a job benchmarkingprocess. The result was a principal jobprofile benchmark that yielded an 80percent correlation between the twoteams. Following initial screeningprocesses and interviews, new principalcandidates completed pre-hireassessments. Candidate-to-candidate andcandidate-to-benchmark comparisonsfollowed, helping to identify potentialleadership strengths and weaknesses.Based on this data, interview questionlists were created and used by schoolboard members and regional managersduring second and third level interviews.

The interview process became focused,targeting specific leadership factors, andthereby improving selection accuracy andresults.

ConclusionOnce you have selected your

assessment tool, make sure you receivethe best return possible on yourinvestment. Remember to measureselection accuracy (i.e. the “hit rate”),which compares the number of successfulvs. unsuccessful candidates hired.Measure the quality of your new hires bycomparing productivity vs. time in therole. Look at turnover rates for your newhires. Use the job benchmark profile toimprove your team’s interviewing andcandidate evaluation skills. Use theassessment feedback to target individualtraining and development opportunities,thereby investing training dollars inspecific training needs. Integrateperformance indicators into yourperformance management system. As youcan see, your investment in pre-hireassessments can reap untold rewards. ◗

6. Utilize multiple candidate andbenchmark comparisons.

7. Regardless of the assessment you use,always monitor the impact of yourhiring practices.

Legal considerationsAs in all aspects of hiring, keep these

legal considerations in mind:• Ineffective hiring can increase the risk

of expensive employment litigation.• The use of assessment tools is legally

permissible if they are utilized in anon-discriminatory fashion.

• All hiring with assessment toolsshould be tracked to determine ifthere has been a disproportionateimpact on any protected group ofpeople.

• Assessment tools can be effective atquantifying subjective bias andreplacing it with more objective data.For example, rather than looking for acandidate who is a “good fit” theemployer looks for a candidate whopossesses skills critical to a particular job.

• Physical assessment tests are perfectlylegal if they reasonably relate to alegitimate duty of the position.

• Assessment tools help avoid the risk of liability, when used inconjunction with interviews,applications, reference checks, andbackground tests.

When should you administerthe assessments?

Two main approaches are used todetermine the point at which youadminister the assessment(s) tocandidates. If your main objective is toeliminate the time and expense of doingpreliminary interviews on a large volumeof candidates, you may choose to useassessments during an initial screeningprocess. In addition to collecting data onthe candidates’ primary qualifications(e.g., knowledge and experience), yougain data that helps you screen outunqualified applicants.

A more common administration pointis after an initial screening process andone or more interviews. At this point,assessments are used to validatequalitative data already collected, and toprovide insight into top candidate

About the AuthorsRobert Peter, PHR, is an

Assessment Integration Advisor for The XLR8 Team, Inc. He is acertified human resourceprofessional, behavioral analystand distributor of a multiple-lineof TTI organizational diagnostictools. He can be reached at (585) 426-7520 [email protected]

Paul Keneally, Esq., is a partnerin the Litigation Department andEmployment Practice Group atUnderberg & Kessler LLP, inRochester, N.Y. He represents avariety of businesses,municipalities, and individuals inemployment, commercial, andother legal matters. He can bereached at (585) 258-2882 or [email protected].


and business performance goals.What we predicted

First, let’s examine the predictions wemade in previous surveys.1. We said broad-based equity plans

would decline and equity grantlevels would be reduced. About one-third of respondents surveyed in 2002said they would reduce stock-optiongrant eligibility or grant size ifexpensing became mandatory. Basedon conversations with clients andsurvey findings in 2003, weanticipated that the use of broad-based stock option grants, whetherone time or regular, would decline inthe face of increased regulatorypressures from FASB.

2. We said the mix of equity vehicleswould change as companiesresponded to new accounting rulesfor equity-based compensation. Ourfirst survey indicated that 23 percentof respondents would shift fromoptions to other forms of equity ifexpensing was required. We anticipatedfrom the second survey a year laterthat companies would not abandonoptions entirely but would diversifytheir equity strategy using more thanone long-term incentive (LTI) vehicle,and perhaps even different vehicles foreach group of employees.

3. We said performance-contingentequity awards would increase inpopularity as companies responded

With the debacle of Enron, WorldCom andothers, plus enacting Sarbanes-Oxley, manycompanies have grown cautious in usingequity compensation to reward keyexecutives–especially such vehicles as stockoptions and “phantom stock.” As the authorsnote, while there have been dramatic changesover the past four years in how equitycompensation is dispensed by publicly tradedcompanies, the changes, in some measure,have been predictable.The authors have been tracking thesechanges. They share what they predicted in2002, and what they predict for the future.

Ed.

Over the past four years, MercerHuman Resource Consulting hastracked, via surveys, how

organizations use equity compensation toreward top talent. With implementation ofFAS 123R delayed, but definitely in sight –January 2006 for calendar-year companies –the future is indeed now. Our purpose here isto share with you some of the surprises andchallenges we’ve encountered in predictingthe future role of equity in executive andbroad-based pay programs.

While companies can use these emergingtrends in a variety of ways, we think thebest uses include looking internally to re-craft solutions that improve meeting acompany’s business objectives; being boldand creative; and engaging employees—i.e.keeping them informed about organizationalchanges, the underlying rewards strategy,

BY DAVID CROSS AND REBECCA GORMAN

The Future Is Now!

to shareholder demands for astronger link between pay andperformance. In 2002, we predictedthat, under the new accounting rules,performance-contingent awards wouldcost no more – and maybe even less –than service-vested awards.Consequently, we predicted thatcompanies would alter their equitystrategy to more effectively alignperformance with reward outcomes.Based on 2003s findings, weanticipated that companies would findit difficult to justify relying solely ontraditional options for seniormanagement, when other equityvehicles could be used at a similar cost,and yet be more effective at drivinglong-term performance.

On-target predictionsResults from this year’s survey1 confirm

that companies are moving in the directionwe predicted. In fact, approaches to equitycompensation are becoming even moreinnovative, and we believe further changesare coming.1. Companies are increasingly selective

in terms of eligibility forparticipation in equity plans. Anastonishing 58 percent of respondentsreduced the number of employees whoreceive stock options, primarily tomanage the accounting cost. Now thatoption cost is measured and accountedfor, companies are finding that theexpense often exceeds the perceivedvalue of options to recipients.

Equity Compensation:

1 Our recent study is based on the findings of more than 250 US companies in some 20 industries– 60 percent have revenues of $1 billion or more and 57 percent are publicly traded.

How Today’sLTI Plans areShaping Up

Companies aren’t waiting to makechanges to their Long Term Incentive (LTI)plans; they’re moving full speed ahead. Yetthere is remarkable variation in their designapproaches, as revealed by a recentexamination of LTI design projects Mercercurrently has under way or completed. Weare seeing the following:• Some companies are well on their way to

eliminating stock options altogether.Overall, the average mix shifted from65:35 (options to other vehicles) to amore evenly balanced 50:50 ratio, withsignificant variation from company tocompany. Even within an industry theapproaches vary.

• To make the shift from options to full-value shares, more companies used astraight Black-Scholes model forvaluation, rather than a rule-of-thumbratio (such as 1/3 of the face value ofthe stock).

• Performance measures for LTI plans aren’tchanging much…at least not yet.Companies are reporting the use ofcommon annual incentive plan measures,such as earnings per share. But there areplenty of examples of companies taking alonger-term look at their financialperformance and using measures such asreturn on equity, return on investedcapital, or total shareholder return.

F A L L / W I N T E R 2 0 0 5 39

away from service-vested awards andtoward performance-contingent equityawards. And the new accounting ruleshave helped fuel this trend. Considerthat performance-contingent awardswill no longer be subject to adverseaccounting treatment when comparedto service-based awards. Further,companies are looking to restrictedstock and even cash plans to delivertheir LTI compensation.

Some trends we didn’t foresee1. Employee Stock Purchase Plans

(ESPPs) are alive and well. Weanticipated that the accounting rulechanges might mean the end ofdiscounted ESPPs. But we find in 2005that only six percent of respondingcompanies plan to eliminate them.Companies continue to see ESPPs as avaluable tool to align employee andshareholder interests, in anenvironment where many employeeswill no longer receive regular stockoption grants. In fact, only 15 percentof companies with an ESPP have made,or are planning to make, changes thisyear. Of those making a change, 33percent intend to reduce the discountand/or eliminate the look-back feature.

2. Choice in equity plans is growing. Theaccounting rule changes are giving riseto a new approach: flexible equityprograms. Some companies are nowgiving employees (usually executives) achoice of equity instruments –restricted stock, performance shares,and options – to meet their individualfinancial and risk profiles. Typically,these programs are combined withmandatory participation at a prescribedthreshold level in all of the company’sequity plans. Interestingly, 38 percentof respondents currently offer an equitychoice plan, or will consider offeringone in the future. This approachappears to be particularly attractive inthe finance and banking industries.Respondents say the added choiceenhances employees’ perception of thevalue, but the complexity ofadministration and employeecommunication is considered a drawback.

3. Employers are enhancing voluntarydeferred compensation programs. Fewcompanies are planning to make

Consequently, many (but not all)organizations are questioning whethertheir equity strategy is fostering theintended results.

2. Employers are reducing the size ofequity grants. Whether or not eligibilityis curtailed, companies are becomingmore conservative in the way they grantstock to the general employeepopulation. A majority of respondents(61 percent) have reduced the numberof shares granted to employees. Thisdecisive trend is attributable toshareholders’ concerns over dilution andaccounting costs.

3. Companies are changing the mix ofequity vehicles in their LTI plans. Withshareholders increasingly focused onperformance, companies are moving

changes to their executive benefitsplans. Surprisingly though, despitethe recent tax legislation that makesdeferred compensation less attractiveto participants, voluntary deferral ofcompensation is cited as the onebenefit that companies will mostlikely add or enhance. Apparently, thevalue of this change is also based onthe premise that flexibility enhancesthe perceived value of thecompensation program.

Where should you go from here?

We suggest you consider the following:1. Be creative – one size doesn’t fit all

when it comes to equity strategy.We believe that one of the best trendsto emerge from the current dynamicenvironment is the diversity ofapproaches companies are using toaddress their equity strategies andrelated incentive compensationprograms. We predict this willcontinue. Equity plans – andcompensation programs as a whole –increasingly will reflect an individualcompany’s unique needs and businessstrategy. And while industry trendsmay be a quick reference, they shouldnot be your template.

2. Be bold and grab this opportunityfor change. The increase in regulatoryand shareholder activity has createdan opportunity to take a step backand examine all your compensationand benefits programs, not justequity. Everything seems to be influx: equity strategy, increaseddemand for linking pay toperformance, and pressures to bemore transparent in describingprograms publicly. As you makechanges to the equity plans, you canlook at how to replace that lost valueby realigning other incentives thatmay no longer be effective for yourorganization. Note that while mostcompanies are trying to replace valuelost from their equity programs, weare not seeing a dollar-for-dollardirect compensation replacement. Insome cases, base salaries or annualincentives are being increased. Butthe entire rewards program should beon the table: enhanced 401(k)

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matches, new training anddevelopment programs, careeropportunities, special recognition, andeven improved ESPPs.

3. Communicate changes in your equitystrategy to employees in acomprehensive manner in advance ofimplementation. Communicatingchanges to equity plans helps toensure employee understanding of thechanges, the reasons for the changes,and alternatives to previous equitygrants. For example, balancing thecommunication between changes inequity grants with the value of careers,professional development, or work-lifebalance offered by your company,recasts change as a take-away from anemployee perspective. In essence,develop and articulate a new valueproposition so employees understandthe value of the total rewards programoffered. While they might recognize aloss in certain areas, beingforthcoming about the reasons for thechanges helps to maintain credibilityand trust in the overall rewardsprogram.

ConclusionChances are your equity plan needs a

makeover, if only a modest one. Start bytaking the time now to confirm that yourbusiness strategy, compensation philosophyand equity strategy are all aligned. Changeis difficult, but you may find that it leadsto better overall compensation solutions,tailored to your organization’s businessstrategy and bottom line. ◗

About the AuthorsDavid Cross is a principal with

Mercer’s Performance, Measurement &Rewards business in Philadelphia.David specializes in executivecompensation strategy and designand can be reached at 215-982-4233or [email protected].

Rebecca Gorman is a consultant inMercer’s Performance Measurement &Rewards business in Washington, DC.Rebecca specializes in executivecompensation strategy and equityplan design. She can be reached at202-331-3685 [email protected].

cont’d from page 39

F A L L / W I N T E R 2 0 0 5 41

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ASSESSMENT/TRAININGTrainingBuz.com . . . . . . . . . . . . . . . . . . . . . . . . . . .40

ATTORNEYSVedder, Price, Kaufman & Kammholz, P.C. . . . . . . . .28

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BENEFITS/COMPENSATIONThe Segal Company . . . . . . . . . . . . . . . . . . . . . . . . .24

CAREER MANAGEMENTLee Hecht Harrison . . . . . . . . . . . . . . . . . . . . . . . . . .4

CONFERENCE FACILITIESThe Rensselaerville Institute Conference Center . . . .12

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CONSULTING, ORGANIZATIONAL DEVELOPMENTCapital H Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

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EDUCATION/MBASyracuse University . . . . . . . . . . . .outside back cover

EDUCATION/TRAININGThe College of Saint Rose . . . . . . . . . . . . . . . . . . . .26

EMPLOYEE ASSISTANCE PROGRAMSAARP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Index of Advertisers

EMPLOYEE BENEFITSMHN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

EMPLOYEE BENEFITS BROKERS/CONSULTANTSCorporate Consulting Services . . . . . . . . . . . . . . . . .40

EMPLOYEE SCREENING & BACKGROUND CHECKSOPENonline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

EMPLOYMENT SCREENINGAccurate Information Systems, Inc. . . . . . . . . . . . . .21

EXECUTIVE COACHINGLee Hecht Harrison . . . . . . . . . . . . . . . . . . . . . . . . . .4

EXECUTIVE RECRUITMENT SERVICESLinium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

HEALTH BENEFITSPOMCO . . . . . . . . . . . . . . . . . . . . . . .inside front coverProAct Pharmacy Services, Inc. . . . . . . . . . . . . . . . .12

HEALTH INSURANCEFidelis Care New York . . . . . . . . . . . . . . . . . . . . . . . .6

HIGHER EDUCATIONThe Sage Colleges . . . . . . . . . . . . . . . . . . . . . . . . . .41

HR EMPLOYMENT SOLUTIONSSt. John Fisher College . . . . . . . . . . . . . . . . . . . . . .42

HR INFORMATION SYSTEMSCTR Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Kronos Incorporated . . . . . . . . . . . . . . . . . . . . . . . .10Mangrove Software, Inc. . . . . . . . . . . . . . . . . . . . . .40

HR MANAGEMENT SOFTWAREBusiness Technology, LLC . . . . . . . . . . . . . . . . . . . .16

HR MANAGEMENT SYSTEMSKronos Incorporated . . . . . . . . . . . . . . . . . . . . . . . .10

HRMS SOLUTIONSDelphia Consulting, LLC . . . . . . . . . . . . . . . . . . .16, 40

HUMAN RESOURCE CERTIFICATIONColumbia University Teachers College . . . . . . . . . . .14

INSURANCERMSCO, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

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INTERNET RECRUITMENTWNYJOBS.com . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

LEADERSHIP DEVELOPMENTLee Hecht Harrison . . . . . . . . . . . . . . . . . . . . . . . . . .4Monad Trainer’s Aide, Inc. . . . . . . . . . . . . . . . . . . . .16

LEGAL SERVICESBond, Schoeneck & King, PLLC . . . . . . . . . . . . . . . . .3

MBAsSyracuse University . . . . . . . . . . . .outside back cover

MEETING OPENERSMonad Trainer’s Aide, Inc. . . . . . . . . . . . . . . . . . . . .16

ORGANIZATION DEVELOPMENTMonad Trainer’s Aide, Inc. . . . . . . . . . . . . . . . . . . . .16

PAYROLL PROCESSINGKronos Incorporated . . . . . . . . . . . . . . . . . . . . . . . .10

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RECOGNITIONS/AWARDSMichael C. Fina . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

RECRUITMENTTMP Worldwide . . . . . . . . . . . . . . . . .inside back cover

RECRUITMENT ADVERTISINGWNYJOBS.com . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

SEXUAL HARASSMENTMonad Trainer’s Aide, Inc. . . . . . . . . . . . . . . . . . . . .16

STAFFING SERVICESAttentive Personnel Staffing Services, Inc. . . . . . . . .41Linium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

TIME & ATTENDANCEWorkForce Software . . . . . . . . . . . . . . . . . . . . . . . .41

TRAINING & DEVELOPMENTMonad Trainer’s Aide, Inc. . . . . . . . . . . . . . . . . . . . .16

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