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PPT 11-50
Compensating Teams
COMPENSATING TEAMS
11-50
LO 11-8
• Team-based pay programs are more challenging
than individual pay systems.
• The two most common methods for teams
involve:
– Skill-Based: Pay is increased as skill increases.
(Eastman Chemical uses this system.)
– Gain-Sharing: Pay is increased as performance
increases. (Nucor Steel uses this system.)
1. Skill-based pay is increased when teams learn and
apply new skills. Gain sharing bases team bonuses on
improvements over previous performance.
2. Nucor Steel calculates bonuses on quality—tons of
steel that go out the door with no defects. There are
no limits on bonuses a team can earn; they usually
average around $20,000 per employee each year.
PPT 11-51
Fringe Benefits on the Job
FRINGE BENEFITS on the JOB
11-51
LO 11-8
• Fringe Benefits — Sick leave, vacation pay, pension
and health plans that provide additional compensation
to employees beyond base wages.
• In 1929, fringe benefits accounted for less than
2% of payroll cost. Today it’s about 30%.
• Healthcare has been the most significant increase
in fringe benefit cost.
The rising cost of healthcare and the cost of employer pro-
vided health insurance is unsustainable in the long term. This
requires both management and employees to create systems
that keep cost down, but still provide meaningful coverage.
This could include employee wellness programs and/or high-
er deductibles.
PPT 11-52
Healthcare, a Perk Not to Be Taken
Lightly
HEALTHCARE, a PERK NOT
to be TAKEN LIGHTLY
11-52
Source: Kiplinger’s Personal Finance, November 2010.
LO 11-8
• Compare all the costs, not
just premiums.
• Take part in wellness
programs. The average
wellness bonus is $386!
• Order generic drugs when
you need prescriptions filled.
1. Many companies now ask their employees to pitch in
for healthcare costs.
2. This slide shows students how to cope with those
costs and find what’s best for them.
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PPT 11-53
Who Pays for Employee Benefits?
WHO PAYS for
EMPLOYEE BENEFITS?
11-53
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
LO 11-8
• 74% of full-time workers
have employee-provided
retirement plans.
• 39% of part-time workers
have employee-provided
retirement plans.
• 71% of workers have
medical care benefits.
1. Entrepreneur used statistics from the Bureau of La-
bor Statistics to create this list.
2. Ask the students: Did you think more Americans had
retirement plans sponsored by their employer? What
about health care?
PPT 11-54
The Range of Fringe Benefits
The RANGE of
FRINGE BENEFITS
11-54
LO 11-8
• Fringe benefits include incentives like:
– Company cars
– Country club memberships
– Recreation facilities
– Special home mortgage rates
– Paid and unpaid sabbaticals
– Day-care and elder care services
– Dental and eye care
– Legal counseling
– Short or compressed work weeks
PPT 11-55
Special Perks at Dreamworks
SPECIAL PERKS at
DREAMWORKS
11-55
LO 11-8
• Free DVDs and screenings
of current films.
• Free breakfast and lunch
plus dinner when working
late.
• Free snack rooms on every
floor.
• Profit sharing.
• Ping-Pong and poker
tournaments during work
hours.
1. Employee perks can take different shapes. Compa-
nies like Dreamworks try to offer benefits to keep the
work environment loose and creative.
2. Have students read this article from Entrepre-
neur.com
(http://www.entrepreneur.com/humanresources/comp
ensationandbenefits/article171630.html) with ideas
for twenty low-cost employee perks.
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PPT 11-56
Cafeteria-Style and Soft Benefits
CAFETERIA-STYLE and
SOFT BENEFITS
11-56
LO 11-8
• Cafeteria-Style Fringe Benefits — Allow
employees to choose the benefits they want (up to a
certain dollar amount).
• Soft Benefits include:
– Onsite haircuts and shoe repair
– Concierge services
– Free meals at work
– Doggie daycare
– Onsite farmer’s markets
The name of the game today regarding employee benefits is
creativity!
PPT 11-57
Let’s Go to the Beach!
LET’S GO to the BEACH!
Average Vacation Days by Country
11-57
Source: Reuters, June 24, 2010.
LO 11-8
1. This slide presents a comparison of number of vaca-
tion days given and used per year in different coun-
tries.
2. France leads with an average of 38 vacation days
given per year, whereas the United States ties for last
with just 17 days.
3. Even though the United States comes in last with on-
ly 17 days, an interesting fact to share with the stu-
dents is that most Americans don’t even use these 17
days.
4. Ask the students: What impact does this benefit of
number of vacation days have on recruiting at an in-
ternational level? (Most should be able to identify
that domestically, it may not have much of an impact.
Internationally, however, potential candidates would
compare the different countries—especially if they
are from one of the countries that offers a much
higher number of vacation days, such as Italy,
France, or Germany. This may have an impact on the
organization’s ability to recruit.)
PPT 11-58
Cultural Challenges Without Conflict
CULTURAL CHALLENGES
without CONFLICT
11-58
• Managers need to understand the business
needs of each country they operate in.
– Compensation: Conversion to foreign currencies and
special allowances often are needed.
– Health and Pension Standards: Benefits are different
country-by-country.
– Paid Time Off: Vacation time, sick and personal leave
vary.
– Taxation: Tax policies vary.
– Communication: Employees can feel disconnected in
other countries.
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PPT 11-59
Flexible Scheduling Plans
FLEXIBLE SCHEDULING PLANS
11-59
LO 11-9
• Flextime Plan — Gives employees some freedom to
choose which hours to work as long as they work the
required number of hours or complete their tasks.
• Compressed Work Week — Employees work the
full number of work hours, but in fewer than the
standard number of days.
• Job Sharing — Lets two or more part-time
employees share on a full-time job.
PPT 11-60
Using Flextime Plans
USING FLEXTIME PLANS
11-60
LO 11-9
• Most flextime plans require Core Time — When all
employees are expected to be at their job stations.
• Flextime is difficult to incorporate into shift work
and managers have to work longer hours.
• Communication among employees can also be
difficult under flextime and managers have to be
alert to any system abuses.
PPT 11-61
A Flextime Chart
A FLEXTIME CHART
11-61
LO 11-9
Flextime gives employees some freedom and empowers them
to work when it best meets their schedule. The benefits are
obvious and often lead to a more motivated workforce.
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PPT 11-62
Compressed Work Weeks
COMPRESSED WORK WEEKS
11-62
LO 11-9
• Employees enjoy long
weekends after working long
days.
• Productivity is a concern.
• Nurses and firefighters often
work compressed work
weeks.
PPT 11-63
Home-Based Work
HOME-BASED WORK
• About 13 million Americans work from home at
least several days a month.
• 12% of U.S. businesses use some home-based
work.
11-63
LO 11-9
• Bank of America has
My Work that permits
employees to work
remotely about 60%
of the time.
PPT 11-64
Home-Based Work
HOME-BASED WORK
11-64
LO 11-9
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PPT 11-65
Virtually There
VIRTUALLY THERE
Tools to Help You Work From Home
11-65
LO 11-9
• Communication:
– Google Apps
– Skype
– Yammer
• Collaboration:
– Google Docs
– GoToMeeting
– Dropbox
Click on these links to visit pages containing useful tools for
working outside the office.
PPT 11-66
Going Nowhere Fast
GOING NOWHERE FAST
Worst Commutes in the World
11-66
Source: Bloomberg Businessweek, www.businessweek.com, accessed November 2014.
LO 11-9
1. IBM ranked cities from 1 to 100 (100 being the
worst). Factors included traffic, road rage and grid-
lock.
2. 69% of commuters in Beijing have said traffic has
been so bad some days, they turned around and went
home.
3. New York and LA ranked rather low on the list con-
sidering they’re notorious in U.S. traffic problems.
4. Those in Moscow have to normally spend 2.5 – 3
hours in their cars. Ask students: Would you travel
2.5 hours just to get to and from work? Would flex-
time be more beneficial for these workers?
PPT 11-67
Job-Sharing Benefits
JOB SHARING BENEFITS
11-67
LO 11-9
• Provides employment opportunities for many
people who cannot work full time.
• Workers tend to be enthusiastic and productive.
• Absenteeism and tardiness are reduced.
• Employers can schedule part-time workers in
peak demand periods.
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PPT 11-68
Moving Employees
MOVING EMPLOYEES
11-68
LO 11-10
• Employees are promoted or reassigned.
• Employees are terminated due to
performance or economic situations.
• Employees retire.
PPT 11-69
Terminating Employees
TERMINATING EMPLOYEES
• As the economic crisis grew, more and more
employers have had to lay off employees.
• Even when the economy is booming, employers
are hesitant to hire full-time workers because of
the cost of termination.
11-69
LO 11-10
• Firing employees is more
difficult for employers because
of laws preventing termination
for certain acts.
PPT 11-70
Playing Hooky
PLAYING HOOKY
Crazy Excuses for Missing Work
11-70
LO 11-9
• I woke up in a good mood and didn’t want to ruin it.
• I just put a casserole in the oven.
• I caught my uniform on fire by putting it in the
microwave to dry
• I had been at the casino all weekend and still had
money left to play with on Monday morning.
• I accidentally got on a plane.
Source: Forbes, www.forbes.com, accessed November 2014.
1. This slide shows a small sample of some crazy ex-
cuses people have used to get out of work. It’s no
surprise they’re now without jobs!
2. Ask students: Is it appropriate to call in sick when
you’re not? Should these people have lost their jobs?
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PPT 11-71
Test Prep
TEST PREP
11-71
• Name and describe five alternative compensation
techniques.
• What advantages do compensation plans such
as profit sharing offer an organization?
• What are the benefits and challenges of flextime?
Telecommuting? Job sharing?
1. Alternative compensation techniques include: (1)
commission Plans – rewarding employees with a per-
centage of sales, (2) bonus plans – rewarding em-
ployees with payment based on achievement of a
predetermined goal, (3) profit sharing plans – giving
employees the ability to share in a percentage of the
company’s profit, (4) gain-sharing plans – bonus is
based on improvements over previous performance,
and (5) stock options – granting employees shares of
stocks based on performance.
2. The hope is that profit sharing plans will motivate
employees to think like owners.
3. Flextime benefits include allowing employees to ad-
just to work/life demands. Challenges of flextime in-
clude not being applicable for all businesses, making
communication more difficult, and creating the pos-
sibility of resentment if employees abuse the system.
Telecommuting benefits include cost saving for em-
ployers and allows employees to manage work/life
demands. Challenges of telecommuting include that
it requires disciplined employees to stay focused and
communication with employees may suffer. Job shar-
ing benefits include employment opportunities for
those who cannot (or prefer not to) work full-time,
reduced absenteeism and tardiness, retention of expe-
rienced workers and ability to schedule workers dur-
ing peak times. Challenges of job sharing include the
need to hire, train, motivate, and supervise at least
twice as many employees.
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lecture
enhancers
“The first quality that is needed is audacity.”
Winston Churchill
“If each of us hires people who are smaller than we are, we
shall become a company of dwarfs. But if each of us hires people who are bigger than we
are, we shall become a company of giants.”
David Ogilvy
“Every organization has an allotted number of positions to be filled by misfits.”
Owens’ Theory of Organizational Deviance (Murphy’s Law)
“Once a misfit leaves, another one will be recruited.”
Owens’ Corollary
lecture enhancer 11-1
EHARMONY GETS IN THE HIRING GAME
Recruiting capable and contented employees remains one of the biggest challenges facing businesses
today. In fact, hiring represents a $400 billion global industry as companies the world over vet candidates on
their education and experience. But according to a new generation of HR upstarts, the traditional methods used
to evaluate potential hires are in desperate need of updating. After all, 70 percent of American workers claim
they are dissatisfied in their jobs, and as recently as 2007, 3 million people were voluntarily leaving their jobs
each month.
With so many people disaffected with their work, it’s no wonder why some would clamor for change.
Nevertheless, the company leading this charge against aging hiring practices is rather surprising. Near the be-
ginning of 2013, the dating website eHarmony announced that it would be launching a job-recruiting service.
Although this may seem like an odd marriage, keep in mind that eHarmony was founded in part to combat the
rampant divorce rate. Now studies show that while more than half of standard marital unions are doomed to
dissolve, those who find a mate through eHarmony face much better odds to go the distance. The company
now wants to take those matchmaking skills and apply them to hiring rather than coupling.
One of the key features of eHarmony is that it doesn’t allow users to simply scroll through its database
and choose their preferred suitors. Founder Neil Clark Warren felt that overemphasis on physical attraction and
shared interests led to failed marriages, thus bringing in the need for the site’s sophisticated personality–
matching algorithms. In the hiring world, education and experience take the place of “looks and likes” as de-
tails that should not be overemphasized when seeking a job candidate. eHarmony’s questionnaires aim to
measure a person’s cognitive ability, personality traits and how they correspond to a company’s particular cul-
ture. The latter has been the most difficult factor to boil down into a survey. As eHarmony’s hiring division
continues to work the kinks out, it faces competition from a number of startups with strikingly similar business
models. With an established brand at its disposal, though, eHarmony has started its hiring revolution with
some clear advantages.i
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
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lecture enhancer 11-2
MAKING AN IMPRESSION WITH VIDEO RESUMES
In this age of intense employment competition, many job seekers do whatever they can to set
themselves apart from the pack. One of the newer ways to do that is to create a video resume (CV). A
one-page CV can tell an employer about an applicant’s basics qualifications, but offers little room for his
or her personality. Companies that need an employee who can interact well with people often require an
indication of a person’s social skills on the resume. If an applicant’s vibrant character doesn’t exactly
shine through in his or her job history, a multimedia resume can help flesh out those blank spots.
Nevertheless, video resumes are not a traditional way to list one’s qualifications. In a 2008 survey
of senior executives from the nation’s top 1,000 companies, only 24% said they accepted video resumes.
Some bosses even claim they’ve tossed out applications with video resumes if their inbox is too full. But
as the years have passed and personal video technology has grown dramatically, more and more employ-
ers are starting to take multimedia resumes just as seriously as written ones. In this day and age, though,
producing a film of one’s every thought is as easy as ranting in front of a webcam and publishing the
footage to YouTube with the click of a button. Video resumes should be polished and professional, which
can be a feat for a budding careerist armed only with iMovie.
Luckily, a number of websites are available to help job seekers create a professional-quality video
resume. BriteTab.com, for instance, allows users to embed pictures and videos into their standard resume.
InterviewStudio.com leads the user in a mock interview where the person’s answers make up the bulk of
the video. The site even gives vital production tips, such as telling the user where to position their head in
front of the camera. Each of these websites charges a monthly access fee. And just because a job seeker
makes a video resume using one of these sites doesn’t mean he or she is guaranteed the job. Poor lighting
or shoddy sound is still a possibility even with the help of these sites. Recruiters warn that distracting
production deficiencies often do the potential job seeker more harm than if they just would have sent a
standard resume.ii
lecture enhancer 11-3
INTERVIEW BLUNDERS
The following are a few questions interviewers should never ask prospective employees:
• Are you married/single/engaged/divorced/dating anyone?
• Do you have/plan to have children?
• How old are you?
• When was the last time you were thrown in jail?
• Do you rent or own your home?
• Have you ever declared bankruptcy?
• How does someone like you get in and out of airports (to an applicant with a mobility
disability)?
• Would you move if your spouse’s employment required a move?
• What do your parents or what does your spouse do for a living?
• What church do you attend?
• How tall are you?
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-86
• What color are your eyes?
• Did you get any workers’ comp from your last job?
• How would someone your age fit in with young people?
• How did you pay for your education?
• Were you admitted to college under an affirmative action program?
• What is your cultural background?
• Do you usually wear jewelry/makeup?
Why can’t you ask these questions? Because
1. They are not job-related.
2. They are often directed to members of groups that have suffered past discrimination.
Interviewees typically do not think they are in a position to refuse to answer the question. What
should an interviewee do if the interviewer asks such questions?
Stay calm. Be objective and dispassionate. The interviewer probably does not intend to offend
you, and will respond well to your graceful handling of the question.
Respond professionally. Gently lead the questioner in the way that he or she should go.
Never respond directly to the question asked. For example, if the interviewer asks, “Do you
plan to have children?” you might assume that he or she is really interested in your com-
mitment to your career. You can respond, “It is natural for employers to be concerned
about any new employee’s commitment to the job. I have demonstrated my commitment
by interning during the summer, working part-time while in school, taking on the addi-
tional responsibilities of working in. . . .”
Ask the interviewer a question. If you aren’t able to redirect the interviewer’s question (i.e., the
question is asked again after you’ve given a response like above), ask “How is that ques-
tion job-related?” or “Why do you ask?” Respond to that answer.
Do not feel guilty about not answering. The interviewer’s questions were out of line, not your
response. Many interviewees feel ashamed when interviewers ask offensive, personal, or
discriminatory questions; interviewers rarely do. If the interviewer has asked you ques-
tions that made you uncomfortable, he or she has probably offended other applicants as
well.
Of course, there are many more issues involving job recruitment cover by federal law. To learn
more, visit the EEOC website at www.eeoc.gov.
lecture enhancer 11-4
MEMORABLE JOB INTERVIEWS
Everybody wants to put their best foot forward at a job interview, but the pressure of the inter-
view can sometimes make interviewees lose their common sense. Here are a few mishaps that are good
enough for a gag reel:
• One candidate arrived at an early morning interview and asked to use the interviewer’s
phone. She then faked a coughing fit as she called in sick to her boss.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-87
• A hiring manager called a job seeker and asked him to bring several copies of his resume
and three references to an interview. An hour before the interview, the applicant called back
and asked to reschedule because his references couldn’t come with him.
• One candidate apologized for being late, said he accidentally locked his clothes in his clos-
et.
• A balding candidate abruptly asked to be excused. He returned to the office in a few
minutes later wearing a hairpiece.
• An applicant wore an iPod to the job interview and explained she could listen to the inter-
viewer and the music at the same time.
• When an interviewer offered to answer any questions the job seeker had, the applicant
asked, “What happens if I wake up in the morning and don’t feel like going to work?”
• An interviewer asked a job candidate, “What do you know about us?” He leaned back in his
chair and replied, “Not much. Why don’t you fill me in?”
• After answering the first few questions, an interviewee picked up his cell phone and called
his parents to let them know how the interview was going.
• Shortly after sitting down, another interviewee brought out a line of cosmetics and started a
strong sales pitch.
• At the end of one interview, the candidate said she was interested in the position but would
have to check with her boyfriend. Then she said, “He’s waiting outside. Can he come in
and say hello?”
• When one applicant was asked why she wanted to work for the company, she replied, “I re-
ally want to work close to Bloomingdales.”
• A man brought in his five children and cat.
• The company was actually pursuing one candidate. He was impressive on the phone, and
an interview was set up at a five-star restaurant. He showed up dressed inappropriately and
smacked chewing gum as he talked. When the gum fell out of his mouth onto the table, it
became stuck to the tablecloth and then to a linen napkin. He wasn’t hired.
• When asked why she was leaving her current job, an interviewee said, “My manager was a
jerk. All managers are jerks.”
• One applicant said “if I hired him, I’d soon learn to regret it.”
• An executive search recruiter asked a candidate, a previous accounting manager, what their
ideal job would be. The candidate responded with, “A Playboy photographer.”
• One candidate disparaged his former boss during an interview, not noticing that the inter-
viewer and the former boss had the same last name and were related.
• When asked about loyalty, an applicant showed the interviewer a tattoo of his girlfriend’s
name.
• During an interview, a call came in from the applicant’s wife. The interviewer heard:
“Which company? How much? When do I start?” The interviewer said, “I assume you’re
not interested in continuing our interview?” He promptly replied, “That depends on wheth-
er you’ll pay me more.” He wasn’t hired, and it turned out there was no other job offer. His
conversation was a scam to get a higher offer.iii
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lecture enhancer 11-5
THE INVASIVE DANGERS OF FACEBOOK
There is a double-edged sword when it comes to social networking websites. To their credit, sites
like Facebook and LinkedIn allow users to easily keep in touch with friends and business contacts. But
what seems at first like a private interaction between a closed network of friends is actually very public.
After all, once something is posted online, it often gets copied to a cache that can still be accessed even
after the object has been deleted. Furthermore, social networking sites frequently receive criticism for
their lax or even invasive privacy practices. The most notable culprit is Facebook, which has been under
fire as of late for its shaky privacy standards.
In April 2010, Facebook announced it was adding a new feature to its site called “instant person-
alization.” The idea was to link the interests listed in a user’s profile to outside websites and other Face-
book pages. For example, if a person listed “bowling” as one of his or her favorite activities, then the next
time that person visited Yelp.com, one of Facebook’s partner sites, he or she would find content about
bowling on the home site. The instant personalization feature also turns each one of the user’s interests
into a separate Facebook page that can be accessed by anyone. So if a college student lists “Jagermeister”
as one of his key interests, then he would automatically become a fan of Jagermeister on Facebook. The
problem is that person’s information could then be viewed by people outside his network, such as family
members or job recruiters.
Many Facebook users consider this use of their profiles as an invasion of their privacy. They also
feared that the website tie-ins could be exploited to hack into users’ accounts like e-mail phishers do. As
such, Facebook immediately implemented an opt-out policy, but that didn’t solve the entire problem. A
user must also opt out of instant personalization on each of Facebook’s partner sites, such as Pandora.com
or Microsoft Docs. If you’d like to find out how private your Facebook information is, you can can use
this website to measure just how private your page is:
www.reclaimprivacy.org/.iv
lecture enhancer 11-6
ENCOURAGING HEALTHY WORK–LIFE BALANCE
When it comes to work, Americans have a little problem: We don’t know when to say when.
Nearly half of American workers put in more than 50 hours a week on the job. A quarter work all year
without taking a vacation.
The American work ethic has been hijacked by a culture that encourages overwork, says Joe Rob-
inson, author of Work to Live: The Guide to Getting a Life. We say we like to work hard and play hard,
but we don’t actually leave much time for play. We survive layoffs only to be saddled with multiple jobs.
Then, hoping to protect those jobs, we put in late nights and long weekends and defer comp time or time
off. In the process, we become, if not workaholics, then lousy employees: tired, depressed, mistake prone,
resentful, and eventually burned out.
Ernst & Young, the professional services firm, is trying to get employees to work smarter, not
longer. “People used to wear overtime on their sleeve like a badge of honor,” says audit partner John Be-
atrice. “But we realized that was no way to live.” Employees, women in particular, were leaving the firm.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-89
Now E&Y encourages employees to create flexible schedules that accommodate both their per-
sonal and their professional lives. Some work full–time from January to March, then a reduced schedule
the rest of the year. Others leave work early to pick up kids from school, then work from home later.
More importantly, employees in the flexible work program aren’t considered second-class citizens, says
Maryella Gockel, the firm’s flexibility strategy leader. Since the mid-1990s, 54 have been promoted to
partner, director, or principle.
Such strategies are still in the minority. They work only when people see their bosses doing the
same. This is one reason E&Y partner John Beatrice is assistant coach for the hockey team at Randolph
High School, in Randolph, New Jersey. There are days he leaves the office at 2:30 to make an afternoon
game, and he expects his audit teams to pursue similar outside interests. “We think you’ll do a better job,
and you’ll be more focused, if you have other things going on in your life.” That is, we need to put our
work in context. At best, Robinson says, we should consider our relationship with work in the same terms
as any other relationship. “If you don’t have a perimeter, you’ll get walked on,” he says.v
lecture enhancer 11-7
THE DANGERS OF FLEXTIME
During a time when many employed Americans fear the loss of their jobs, the millions of people
who either telecommute or work on flextime schedules may have the most to worry about. Reduced time
workers and telecommuters fear that they may be the first heads on the chopping block. In some cases
their paranoia is warranted. Certain hard-nosed executives sometimes translate a lack of face time with
bosses and unorthodox work hours as a lack of commitment. Other execs have simply cut out all flexible
work arrangements altogether, preferring to have all employees in-house and under the supervision of the
higher-ups during this time of crisis.
But other less stringent managers see an innate benefit in flexible schedules and telecommuters.
Such arrangements offer savings on real estate and office costs, and workers are often more productive
when their schedules better fit their lifestyles. One part-timer at a Burlingame, California, consulting firm
was so productive as a reduced time worker that her boss kept her onboard while more senior full-timers
were shown the door. Some businesses are seeing such advantages in flextime scheduling that they’re
structuring all new working plans to cut costs. In a 2009 survey of 700 companies, 21 to 32% surveyed
are implementing part-time shifts or instituting four-day compressed workweeks as a means of reducing
overhead.
Normally, in a recession the number of employees working flexibly falls only to recover as the
economy rebounds. Indeed, the number of flextime workers shrank from 9.2 million in 2006 to 8.7 mil-
lion in 2009. Whether or not more companies will restructure their work plans to accommodate more
flexible scheduling remains to be seen, but in the meantime those managers who fire flextime workers
first on the stereotype that they are less committed won’t have such an easy road ahead. Discrimination
complaints to the Equal Employment Opportunity Commission about firing part-timers are rising. For
example, EEOC recently held hearing on bias against people with caregiving duties. vi
lecture enhancer 11-8
THE RETIREMENT CRISIS
For too many Americans today, saving for retirement is an afterthought. Fifty-nine percent of
households headed by people 65 or older have no retirement assets whatsoever. As a result, more than 7.2
million individuals over 65 were employed last year, a jump of almost 67 percent from a decade ago. A
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-90
portion of these working class seniors were thrown back into the job force after the global financial crisis
wreaked havoc on their nest eggs. But many more reached this point simply because they made the mis-
take of not saving carefully enough.
For instance, at the height of his career Tom Palome was earning six-figures and taking first-class
flights to Europe for business. After leaving his job as a vice-president of marketing for Oral-B, he began
a consulting company that boasted big names like Johnson & Johnson as clients. Self-employment pro-
vided Palome with enough money to pay for his kids’ college and support his parents, but unfortunately it
did not provide him with a 401(k). Nor did he ever set up an individual tax-deferred retirement fund of his
own. “I never thought I’d live this long,” Palome says. Instead, the $90,000 that remained of his savings
took a pummeling during the credit crunch, forcing Palome to pick up two part-time jobs to make ends
meet.
Americans are advised to have saved 10 to 20 times their annual working salary in order to main-
tain their lifestyle from their mid-sixties onward. If not, they could find themselves working menial jobs
just to be able to continue living an engaging life. After all, Palome says he could survive without work-
ing. If he lived solely on his Social Security checks and small corporate pension, however, he could never
afford to leave the house. Working part-time as a country club grill cook and a Sam’s Club food demon-
strator nearly doubles Palome’s monthly income, allowing him to travel occasionally while continuing to
save. What’s more, the two jobs Palome currently holds are normally meant for younger people. With so
many older and more qualified candidates willing to work for near-minimum wage, there’s a good chance
that teens and 20-somethings will face increased competition for jobs. vii
lecture enhancer 11-9
USING THE EXIT INTERVIEW FOR FEEDBACK
Getting feedback on problems is the only way to prevent them from recurring. One often-
overlooked way of getting this feedback is through the exit interview. Interviews with employees who
voluntarily leave the organization serve a dual purpose. For employees, exit interviews are a chance to say
many things they haven’t been able to say before. For employers, the interviews can be an excellent
source of information. Many companies, however, do not conduct exit interviews, or conduct them inef-
fectively.
A good exit interview should consist of structured and unstructured questions. If the employee is
counting on a reference, he or she may be unwilling to be too truthful. To put the employee at ease and
get honest information, some human resource professionals recommend writing the reference in advance
and letting the employee know at the beginning of the interview. Then questions such as the following
can be used to get honest information about the company as a whole.
“What did you like most about working here?” This helps gain insight into how the employee
perceives the corporate culture. At AT&T, one of the answers most frequently heard is that employees
appreciated the benefits package. When exiting employees mention this, it reaffirms to the company that
the investment in benefits is paying off.
“What do you feel good about having accomplished?” This helps determine what responsibilities
gave the employee a sense of accomplishment.
“If you were in charge here, what would you change?” This question is used to give the employ-
ee a chance to figuratively change the work environment. Prepare for a candid answer.
“What best helped you achieve your goals?” This is where managers find out which employee–
support systems are working and which are not. If, for example, the vice president’s open door policy was
useful in getting some project underway, the policy could be encouraged among other senior managers.