The Global Human Resources Outsourcing (GHRO) team is looking forward to a great 2012.  We’ve put on the future goggles and found some insights into possible HRO industry developments this year.

“In many ways, this is the golden era of HRO,” says Josh Bersin, CEO and president of research and advisory services firm Bersin & Associates.

Bersin is quoted in an article titled “Artful Predictions–HR Thought Leaders Forecast 2012,” which appeared in HRO Today’s December 2011 edition.

According to the article, HRO trends that are currently underway and that auger more of the same in 2012 include:

• The increasing use of predictive and descriptive analytics to glean business insights driving improved performance.
• Higher adoption rates by clients leveraging providers’ cloud-based Software-as-a-Service (SaaS) solutions.
• Greater use of balanced shoring options — combining off-shoring, on-shoring and near-shoring models.

In talent management, expect growing sophistication in services offered by HRO providers, as opposed to just software packages. And chances are the industry will continue to see greater acceptance of a la carte HRO services, rather than binges on entire “soup to nuts” menus from single providers.

Rajesh Ranjan, research director of RPO provider Everest Group in New Delhi, India, has expectations for 2012 in two areas — multi-process HRO and single-process HRO.

“There are some common themes playing out in both areas,” he says. “Buyers, for instance, are approaching HRO with a balanced set of outcomes in mind, as opposed to immed iately alleviating cost pressures. Yes, they’re interested in models that address their short-term needs, but more are looking to create a foundation to realize long-term objectives.”

Shakeups in 2011 likely portend similar actions in 2012:

• Mercer acquired Censeo Corporation to enhance its talent management consulting capabilities and online platform of assessment services.
• Kenexa and NGA partnered with SkillSoft for learning content.
• Talent2 added advisory services and rebranded to simplify its talent management focus; in addition the company become a reseller of Cornerstone OnDemand, widely used for its performance management, succession planning and learning modules.

Several interviewees in the article touted the likelihood of talent management playing a greater role in HR BPO.  Says Linda Merritt, research analyst at London-based BPO analyst firm NelsonHall: “It could be a disruptive force, shaking up the HRO field.”

Merritt predicts that vendors will continue to build talent management capabilities, internally as well as through strategic partnerships and acquisitions. A look back at the recent past confirms this trend. Take, for instance, the breakneck speed of Kenexa’s deals. Although the global HRO provider had developed talent management expertise internally, it enhanced it over the past few years via the acquisitions of Salary.com, which strengthened its compensation management capability, and Gantz Wiley research, which beefed up its employee survey research capabilities.

Generational conflicts in the workplace—the Global Human Resources Outsourcing (GHRO) team has had this highly topical issue on our radar for quite a while. The crossfire can be intense, as revealed in this recent article from The Fiscal Times (TFT), a New York-based digital news, opinion and media service.

In “Gen Y vs. Boomers: Workplace Conflict Heats Up,” author David Koeppel explores the dynamics of the modern business office and the sometimes strained interplay and resulting tensions that arise among the various age groups working together.

Click here for the full article.

Generational conflicts have always been present in the office, but experts say Baby Boomers and Generation Y in particular have characteristics that can clash.

Feelings of desperation and even anger among the millennial generation (those born between 1981 and 2000) towards their Baby Boomer (those born between 1945 and 1964) managers are common among young job seekers according to experts. The recession has put a damper on their career goals—55.3 percent of those 16-29 were employed in 2010, down from 67.3 percent in 2000, and 5.9 million Americans between 25 and 34 lived with their parents, up from 4.7 million before the recession, according to recent census data.

At the same time, statistics show that Baby Boomers are delaying retirement.

A 2010 study by the Carsey Institute at the University of New Hampshire found that while 17 percent of men and 9 percent of women age 65 and over were in the labor force in 1995, by 2009, 22 percent of men and 13 percent of women were still working. Those numbers are expected to grow.

According to data from The Population Reference Bureau, the number of older workers in the next few years will increase by 11.9 million, meaning nearly 25 percent of employees will be seniors by 2016. This backlog of older workers has heightened potential workplace conflict between the generations.

This is evident in some of the comments posted in response to the article.  First, Jen from “Gen Y.”

Jen Zucker—”Boomers are the ones who have gotten us into the financial mess (and just about every other mess). They plucked the system dry for those coming up behind them and then blame the generation they stole from.  Message to Boomers: Pack it in, your time has come and now leave. And by the way, the thing sitting on your desk, its not a microwave.”

But many Boomers don’t quite see things that way.

rdl114—”One gadget does not a summer make. I am 60 and my peers began using computers in the late 1970s. By the mid-1980s they were a part of virtually all white collar jobs. So, weigh it for yourself, younger folks. We have about 35 years of experience in the tech arena.  Being ‘savvy’ about Facebook and iPhones is not what is required in the workplace. Tell us you can run analytics on the price of, for instance, precious metals; show us you know Fibonacci numbers, Chinese Candlesticks and other advanced math processes and maybe we’ll sit up and listen. Or show us you can write a sentence as sharp and clear as diamond. No worry. You’ll get a job then.”

Still, the generational lines aren’t impermeable.  Here’s a contrarian take from one of the younger members of the workforce:

RIPCivility—”‘It’s vital that baby boomers extend an olive branch to Gen Y’?? Are you kidding? What do they need to apologize for? For an economy what wiped out their retirement? For being marginalized after being laid off and unable to find work? For developing the technology so Xers (like myself) and Ys can work from Starbucks? I believe this generation is bright, motivated and they think in new and unique ways. But they also give up easily, feel like nothing is ever their fault and think they have the right to ‘demand’ rather than earn their jobs.”
Today’s challenges facing HR administrators necessitate first understanding and then reconciling the opposing forces currently impacting the modern workplace.  None of this conflict is going away anytime soon, so squarely facing the challenge is the HR order of the day.

Is your small business reasonably accommodating the needs of its new and expectant mothers?  You may have heard the horror story of a new mom who returned from maternity leave, only to have her employer criticize everything from the frequency she pumped her breast milk to the number of weeks she pumped.  When the employer decreed the new mom had to stop pumping when her baby turned a year old, the new mom refused and was fired.  How can you prevent this unfortunate—and avoidable—dilemma from happening in your workplace?

The answer may lie in the health care reform law.  One revision to the Fair Labor Standards Act requires employers to provide unpaid, “reasonable break time” and a place, other than a restroom, that is “shielded from view and free from intrusion” to allow new moms to pump breast milk.  This provision covers all workers subject to overtime-pay requirements and lasts up to one year after the baby is born.  It also provides reasonable workplace policies beyond maternity leave to help new mothers balance career and family.

Remember, except for the 12 weeks of unpaid maternity leave mandated by federal law, many new mothers either can’t afford to take more time off or aren’t permitted to by their employers. Reasonably accommodating nursing mothers meets them in the middle by allowing them to work without giving up breastfeeding.  Not to mention, mom-friendly HR policies are sure to increase employee morale and retention after maternity leave!

Every business has at least one HPE: a habitually problematic employee.  As an owner or HR manager, your lucky day comes when that employee parts ways with the business—lucky, until another employer calls for your opinion of HPE.  Awkward.

So what now?  Do you tell the employer what you really think about HPE?  Do you gloss over HPE’s 2-hour lunches?  Do you fake static and hang up?  Not only is this situation uncomfortable, but it presents potential legal troubles if improperly handled.

Some businesses solve this problem by routing all reference checks through the HR Department.  There, only basic information is verified, such as dates of employment and job title.  This option will definitely keep your business out of legal hot water, but it may displease managers who want to shout HPE’s negative qualities from the rooftops.  In these cases, advise miffed managers how important it is that the business distributes consistent, carefully worded statements.  Even the most truthful statements, if poorly worded, can be twisted into legal ammunition.

Another way to shield personnel from these uncomfortable inquiries is to deal with HPE proactively.  There are two ways to do this.  First, ask HPE for a signed release allowing the business to give out reference information.  If HPE refuses to sign, explain to reference-seekers that HPE did not consent to release information.  Second, tell HPE at the exit interview that the business won’t be able to provide a positive reference.  That should be enough for HPE to look for support elsewhere.

Who doesn’t want more time off around the holidays?  When the vacation time runs dry, employees may resort to unusual reasons to miss work. One employee said a chicken attacked his mother. Another got a finger stuck in a bowling ball.  Another employee said she couldn’t come in the day after Thanksgiving because she burned her mouth on a pumpkin pie.

The excuses may be strange, but the phenomenon of playing hooky from work is very real.  CareerBuilder’s annual survey on absenteeism revealed that 29 percent of employees skipped work at least once this year by lying about an illness. Even though that’s nearly one in every three employees surveyed, the overall number is down 3 percent from last year.

Aside from extending the holiday cheer, the most popular reasons employees erroneously call out sick are because they just don’t feel like going to work, they need to relax, and they need to catch up on sleep.  Stress may be the real force behind these increased sick days; of employers, 27 percent believe stress and burnout are causing more fake sick days.  If that’s the case, it might be worthwhile to teach employees that their honesty will be appreciated, because stress can adversely impact their health if left unchecked. That can be a legitimate reason to miss work!

Although most employers say they believe an employee who calls out sick, 29 percent admit to checking up on an employee’s story, usually by requiring a doctor’s note.  Other employers called the employee at home or went as far as to drive by the employee’s residence.  At the end of the day, 16 percent of employers admit to firing an employee over unverified sick time.

While that may not be the best way to spread holiday cheer, it may be something to remember when an employee claims Grandma got run over by a reindeer.

Severance pay: an employer’s monetary gesture of goodwill to an employee separating from employment.

In times of layoffs and position elimination, this term has become more relevant to the modern workplace.  It’s a nice gesture to be able to provide severance pay to good employees leaving the business, even if it’s not a legal requirement.  (Be mindful, though, that severance policies might be written into certain employees’ contracts or in the employee handbook, which would create an obligation to pay severance.)

What does a typical severance package look like?  Usually, the higher the climb up the corporate ladder, the higher the severance package.  A severance package for a typical worker would be 1–2 weeks of pay per year of service.  At the executive level, severance may mean up to a month’s pay for each year of service.  An employment contract often imposes severance packages for the most senior positions.  In these cases, severance packages could go beyond additional pay to include extended benefits and outplacement services.

In some cases, a laid-off employee may try to negotiate a more favorable severance package.  If no precedent or written policies exist for severance packages, negotiations may be feasible.  Legally, however, an employee’s attempt to negotiate constitutes rejection of the severance package and entitles the employer to withdraw the offer altogether.  While that seems tempting, it may be best to tell the employee up front that the offer is nonnegotiable, especially if you are laying off other employees and want them to sign release of claims forms.

A release of claim form prevents the laid-off employee from bringing suit against the business in the future, and a severance package is the incentive to sign that form.  Obtaining this form is important; last thing any business needs after downsizing is a torrent of lawsuits!  Also be sure to get a separate release from workers over age 40 to prevent age discrimination suits.  Pay careful attention to any legal deadlines regarding extending and accepting these offers.

In this tumultuous economy, offering severance packages to laid-off employees is a goodwill gesture that acknowledges their dedicated service.  A severance package can also help calm angry, departing employees and can help save the business from legal troubles.  At the end of the day, the decision to offer a severance package is at the employer’s discretion, but a short-term payout may be well worth the long-term benefits of an act of kindness.

Brandon Carl, our Business Development Manager, chatting about Human Resources outsourcing and GHRO with Ciaran Foley on LookSee.TV!

2010-08-10 Brandon Carl and GHRO Discuss Outsourced HR from Ciaran Foley on Vimeo.

GHRO recently posted a blog about age discrimination and younger workers, and how Generation Y’s stereotypes unfairly prevent them from getting hired.  While no law protects young workers from ageism, the Age Discrimination in Employment Act (ADEA) of 1967 protects employees over age 40 from traditional age discrimination.  Based on this law, the U.S. Equal Opportunity Employment Commission received 22,778 charges of age discrimination in 2009 alone, of which the commission resolved 20,529 and recovered over $72 million in monetary benefits for charging parties and other aggrieved individuals (not including monetary benefits obtained through litigation).  Age-related charges make up roughly one quarter of all discrimination charges filed with the commission.  Despite the number of age-related claims falling since 2008, ageism remains a potential problem for employers, particularly in this volatile economic climate.  So what is age discrimination and how can it be prevented?

Under the ADEA, older workers may not be discriminated against in any aspect of employment, including hiring, termination, wages, job duties, promotions, layoffs, training, and fringe benefits.  Even companywide policies that adversely affect applicants and employees over age 40 may be illegal if they are not based on a reasonable factor beyond age.  While those factors are controlled at the management level, the ADEA also protects older workers against harassment, which can be perpetuated by all levels of the business: supervisors, coworkers, even clients and customers.  Age-related harassment includes making age-related remarks.  Even if such remarks don’t seem to be serious, they can have a severe impact on older workers and can create a hostile work environment.

Training can help raise employee awareness of discrimination and can curtail such remarks.  It may surprise many employees to learn that extensive researched has shown no correlation between age and job performance.  In fact, a seasoned veteran can bring hard-earned experience and positive mentoring opportunities to the business.  Older workers typically show better judgment and care when performing their duties.  They are also less likely to arrive late to work, to be absent, or to quit.  To prevent age-related harassment, educate employees that all employment-related comments and actions should focus on job performance, not employee age.  Also post an anti-discrimination policy that includes harassment definitions, solutions, consequences, reporting processes, grievance procedures, and anti-retaliation language.

Such simple, proactive measures can go a long way toward eliminating ageism in the workplace.  The goal is to create an environment where employees of all ages feel welcomed, included, and valued.

The state of California requires all businesses with one or more employees to carry workers’ compensation insurance.  Workers’ compensation insurance is meant to protect you, the employer, in case your employees are injured on the job.  Not carrying workers’ compensation insurance can have serious consequences for your business.

Workers’ compensation benefits can only help you and your employees with work-related injuries if you are properly insured.  If you’re uninsured and an employee suffers an on-the-job injury, you are responsible for paying any damages relating to that employee’s claim.  Also bear in mind, in addition to filing a workers’ compensation claim, that employee can file a civil suit against you because you’re illegally uninsured.

Most important, it’s a criminal offense not to have workers’ compensation coverage!  Under the California Labor Code, failure to provide workers’ compensation coverage is a misdemeanor punishable by up to a $10,000 fine or up to one year in county jail, or both.  The state’s Division of Labor Standards Enforcement may also issue penalties of $1,000 per employee, to a maximum of $100,000. In addition, if an injured worker’s claim successfully goes before the Workers’ Compensation Appeals Board and the judge finds the employer was uninsured, the employer may be fined up to $10,000 per employee, to a maximum of $100,000.

Don’t get caught in a workers’ compensation bind!  Global Human Resources Outsourcing is here to help.  As one of Southern California’s leading HR professional employer organizations, GHRO can assist your company with its workers’ compensation needs.  GHRO offers workers’ compensation support with all three of its HR PEO packages, from the basic HR Essentials package to the comprehensive HR Total Solutions package to care for all of your company’s human resources needs.  For more information and to receive a free quote, visit our website or call 888-308-0338.