Bringing ‘Up in the Air’ down to earth

Kathleen Pender
Thursday, January 14, 2010

In the movie “Up in the Air,” the character played by George Clooney works for a firm hired to come into a company, lay off people and make a quick exit.

The idea of hiring a hit man to do your dirty work seemed pretty harsh and got me wondering whether firms like this exist in real life.

The answer is not exactly, although the film reflects trends in the American workplace.

As employment laws grow more numerous and complex, and workplace litigation explodes, many firms are hiring outside consultants to help them downsize. Some operate behind the scenes but their presence is still felt; others participate directly in layoffs, but usually alongside the employer.

More small and midsize employers are outsourcing their human resource operations to outside firms, sometimes called professional employer organizations. These firms handle tasks such as payroll, workers’ compensation, benefits administration, and hiring and firing workers.

Laying off employees “is a service we provide,” says Lisa Pinkard, vice president of human resources with Emplicity, an HR outsourcing firm in Irvine. “Usually we have long-term relationships with our clients. It’s not like we have mass layoffs and then leave.”

All of the firm’s consultants will do layoffs as one of their many jobs.

Emplicity prefers to have the employer deliver the bad news or at least be in the room, but some don’t.

“It is very personal and upsetting,” Pinkard says. “Because we do it all the time, it really comes natural to us. It’s less emotional, we don’t know the people. It’s easier to have someone else come in and be the bad guy.”

Pinkard thought the painful scenes where Clooney gave someone the ax “were pretty accurate. I told my husband, ‘Now you see what I have to go through.’ “

But unlike Clooney’s character, Ryan Bingham, who was “very impersonal and couldn’t get attached to people, our people - outside the nasty stuff they have to do for work - are very caring. I compare it to a doctor who has to cut your leg off. Nobody wants to do that, it’s just part of the job.”

Pinkard says layoffs at client companies “have gone through the roof” in the past year. She is also seeing employers using the economy as an excuse to get rid of employees for performance reasons.

Rebecca Heyman says laying off workers “is a small part” of her job as a senior human capital consultant with TriNet, an HR outsourcing firm based in San Leandro.

“My role is to be the out-of-house HR manager for these companies that are our clients,” she says. “If they are going through layoffs, I help them manage that process. But I would not go in by myself and terminate an employee without a representative of the company delivering that message. I’ll do a lot of coaching up front. I might be in the room to be a witness/note taker and to answer operational questions.”

‘Character study’

Heyman thought “Up in the Air” “was a great character study on this isolated individual. But from an HR perspective, I didn’t think it was reality,” she says. “There is a lot of preparation that goes into making the decision (to terminate someone). That would be too boring to show in a movie. It’s analysis, financial considerations. You’re not going to watch George Clooney work on a spreadsheet.”

Robert Conlon, a senior vice president with Sibson Consulting, agrees. “To the extent it is portrayed in the movie, I’m not aware of companies that are hired to parachute in, deliver the message and escape out of Dodge.”

As a “strategic HR consultant,” Sibson helps companies figure out staffing, but “we do not get involved in actually delivering the (layoff) message,” Conlon says.

In the book that the movie is based on, the Clooney character was not a hatchet man, but more of an outplacement counselor who helped the newly downsized.

For the movie, his role was probably changed “as a dramatic device to say not only is he disconnected from the world, his job is to disconnect people from their work,” says John Challenger, head of outplacement firm Challenger Gray and Christmas.

Hired help

Many firms hire outplacement firms “to cushion the shock” of a layoff, but not to deliver the news, Challenger says. They help with resumes, interviews and emotional support.

Challenger thought the reactions of workers in the film, many of whom were real layoff victims, “was cinema verite. You see all kinds of reactions. Some people are in shock, some are angry or torn up,” he says.

Challenger says he thinks the movie will resonate not only with road warriors, but also with “millions of managers whose company came to them and said, ‘You have to cut two people from your department and have to tell them they have been let go.’ “

Check Credit History

Be sure to get copies of your credit report and look it over thoroughly. Make sure if you find any negative problems that you fix them as soon as possible. If you do not you may not get approved for any loans to pay for the mortgage on the home.

Get Pre-Approved

After your credit report is in good standing it is time to get pre-approved by a lender. By getting pre-approved by a lender, this will ensure that you do not go outside your means and try to buy a house you won’t be able to afford. This will also put you in a better position to make a serious offer when you do find the right house.

Look for Homes in your Price Range

A lender will help you out with this but there are many financial calculators on the internet that can also be utilized. These calculators are based on your income, debt, and expenses etc. I read that you can buy housing that runs about two-and-one-half times your annual salary.

Use Professionals

Get an agent that will help you through the bidding process and help with mortgage advice.

Home Inspections are Crucial

Before buying the home you should hire a home inspector to go through the house and look for any weak spots or problem areas that could prove costly in the future. Make sure the home can also be insured.

The past few years have been difficult in the world of jobs. Many companies have been forced to downsize the number of employees they had just to stay afloat. Being laid off can put you in a jam as finding a job right away is not always the easiest thing to do. Being prepared for the unexpected is a good way to hedge some of the burden of being laid off. It is best to always have a plan and below are some things one can do to ease the stress of being laid off.

Know what your monthly expenses are

Knowing what your monthly expenses are will help you understand how much money you actually need to save in a given month to survive. Make a list of your current assets and debts and determine this. Understanding your current, personal balance sheet will enable you to prepare for a possible loss of income.

Know your job severance package policy

Ask someone in your HR department about the severance package policy. If you are laid off it is good to know how much money you will be getting so you know how much money you are going to need to set aside to save as you look for a new job.

Create a Savings Account

Many people have their companies direct deposit their checks into their checking account. It save time and a lot of times you get your money earlier. It is also wise to set up a savings account and have some money from each of your paychecks sent into it as well. Only use this savings account in emergency situations like if you get laid off. I read someplace that an emergency fund should be equal to 6 months of expenses.

Being prepared is the best defense against being laid off. Understanding what your company’s severance package policies are, knowing on average how much you spend each month and having an emergency fund account can all help you weather the storm when looking for a new job.

Employee award: Mercedes for a month

Posted by Jan Norman, small-business columnist

Emplicity an Irvine human resources outsourcing service, gives its employee of the month something more than a plaque. It’s the use of an E-class Mercedes Benz with “Employee of the Month” on the side.

Here’s the first winner Lorraine Ontiveros, 23, with her company-supplied ride:

Lorraine Ontiveros

The company calls its employee recognition “Driving to Success” and has employees vote on their peer who best exemplifies the chosen theme for the month.

Ontiveros was the landslide winner in July for the theme: “positive attitude.”

“The first time I drove the car, people were waving, giving me a thumbs up and even taking pictures of the car and it was a bit distracting, in a good way,” Ontiveros says.”It kinda felt like I had the paparazzi following me.”

In August she passed the keys to Jennifer Meehan, who fellow employees decided best exemplifies “excellent teamwork.”

Vic Tanon, Emplicity founder

Emplicity founder Vic Tanon says he’s always trying to figure out how to reward and incentivize employees, which isn’t that easy in a recession.

“We have a lot of Gen Y employees who want recognition in different ways,” he says. “We wanted to make a loud statement when recognizing our employees and felt that a nice ride would give people something they could proudly take home and show to mom and dad and to their friends.”

Emplicity is a 14-year-old professional employer organization plus an outsourced human resources service. It has 35 employees and offices in Irvine, San Francisco, Sacramento, San Antonio and Los Angeles.

The monthly award also helps emphasize core company values, Tanon says. Each month’s theme is one value re-enforced on a daily basis.

Employee recognition is a communication tool that reinforces and rewards the actions and behaviors you most want to see people repeat, says Susan Heathfield at About.com.

Her “Five Most Important Tips for Effective Recognition” include:

• Establish criteria for what performance or contribution constitutes rewardable behavior or actions.
• All employees must be eligible for the recognition.
• The recognition must supply the employer and employee with specific information about what behaviors or actions are being rewarded and recognized.
• The recognition should occur as close to the performance of the actions as possible, so the recognition reinforces behavior the employer wants to encourage.
• Don’t want to design a process in which managers select the people to receive recognition.

]]> http://www.hroutsourcing.org/?feed=rss2&p=263 http://www.hroutsourcing.org/?p=245 http://www.hroutsourcing.org/?p=245#comments Thu, 21 May 2009 20:32:54 +0000 admin http://www.hroutsourcing.org/?p=245 As an HR Outsourcing professional I have to deal with team building exercises almost on a daily basis. Clients consistently call to speak with me about scheduling these exercises and possible scenarios they could use in order to get the most effective team building experience. To me, team building exercises are sort of like a double edged sword. They can be effective if you know what you are doing but if you don’t, team building exercises can prove detrimental to both your team and subsequently to your business. Below are a few considerations to take into account when implementing team building exercises:

Have team building activities on company time.

There is nothing employees dislike more than having their free time taken away from them, especially if it is to attend a mandatory team building exercise. Try to schedule these activities during business hours and employees with be more open minded and willing to participate in said activities with an open mind.

Be aware of different personalities and styles.

Everyone is not the same. That is one thing you learn quickly in the HR Outsourcing world. People have different personalities and an exercise that one employee may like, another may not like. Try and do activities that utilize different roles and when appropriate have employees partake in roles that they are not used to so they may gain an understanding of how various groups operate.

Present real world problems.

Presenting real world problems that are present in the company is a good way to team build. Sure going to a go-cart track or a paintball field can be enjoyable for employees and might be good as a capstone to a successful team building experience but a lot of times those types of activities don’t really allow people to get a grasp of how others work and operate. Focusing a team building exercise around streamlining operations etc is a good way to think outside of the box and get good suggestions on how to solve some of the company’s problems.

Choose the right facilitator.

Choosing the wrong facilitator is a sure fire way to waste the efforts a company goes through to implement these team building exercises. Make sure that when you choose a facilitator that they do what you want to do. A good facilitator should be able to tailor their curriculum to fit the needs and wants of your business.

As a professional in the HR outsourcing field, I believe that team building exercises are important for company growth. Done correctly they can improve morale and push the company in the right direction. The main thing to understand what your employees want and to customize a program that can accommodate all employees involved.

HR Outsourcing: How To Be an Honest Reference

Every company has to deal with the loss of a few employees from time to time. These employees can range in caliber, from the respected, hardworking individual at one end of the spectrum, to the disruptive, slack-minded individual seemingly going through the motions on the other. While you may be inclined to give the latter a poor or negative reference, it is important to make sure hard feelings and differences of opinion do not color the references you provide. Under the California Labor Code the consequences could prove very costly and being in the HR Outsourcing industry I have seen firsthand this is entirely true.

The California Labor Code provides that any person including a manager, supervisor, or other employee who prevents a former employee from gaining subsequent employment by making a factual misrepresentation or misleading statement about the employee is guilty of a misdemeanor. In addition, both the individual who made the statement and the employer can be required to pay the former employee “treble damages” (meaning three times the actual damages) for the lost opportunity. Employers and their HR departments should have clear cut protocols for supplying references and should always ensure misrepresentations about a former employee are not made. When setting up ground rules for your company’s reference protocol it is wise to consider the following:

Document the reasons why the employee is leaving

Whether an employee was fired, laid off or quit make sure the reason that particular person left is clearly documented in their employee personal file. This will help referring managers to give accurate and credible information without misrepresenting the former employee.

Designate a reference contact for departing employees

When an employee leaves the company provide them the name or job title of the individual where all reference inquires should be directed. This will allow the company to know who is making statements on their behalf. Supervisors that may have had a troubled history or conflict with a particular departing employee should never be the reference contact.

Never make personal statements about an employee’s character

Always stick with the basic facts when giving a reference. The reference should focus on how well the employee did their job etc without getting into character issues.

Use a neutral reference policy

Neutral reference policies give information such as confirmation of dates worked, job titles, and final salary. By adopting a policy that does not give out personal information it becomes easier to avoid allegations that misrepresentations were made.

The number one factor in making sure that former employees are not misrepresented and then sue is to ensure everyone understands the protocol. Communication is the key to a successful company that runs smoothly and efficiently.

HR Outsourcing Tip: Going Green

As I keep in touch with friends in various HR Outsourcing companies around the state, I have noticed a common theme arising. Many of these HR Outsourcing companies are starting to go green. The company I work for has been green for about a year now and by doing so has saved money and helped the environment. Getting a company to go green can take some time getting started and used to but once the ball is rolling you will find it is easy to contribute and do your part. As an HR Outsourcing professional I go around to different companies and see how managers and owners operate their business. What I have noticed is that some businesses are more environmentally conscious than others. I have compiled a list from various sources for HR Outsourcing companies as well as any other company that wants to save some green by going green.

• Buy recycled and Post-consumer office supplies as well as reusable and energy efficient appliances and products.
• Example: Reusable batteries and energy efficient dish washers and microwaves.
• Print only necessary documents
• Print on both sides of pages, and use PowerPoint slides for presentations. This will save money on paper and toner supplies.
• Green your Commute
• Carpool, ride a bike or take public transportation
• Turn off your computer and monitor at night
• Turning off your computer and monitor at night will save energy and reduce electric bills considerably.
• Bring in a mug or water bottle from home
• Reduce or eliminate use of paper and Styrofoam cups
• Start up or utilize a Recycling program
• Many companies I have worked with don’t even have a recycling program. Start by setting up extra garbage cans made exclusively for recycled materials.

Whether you are a HR Outsourcing professional working in a HR Outsourcing company or you work in an automotive shop, recycling is a simple way to help the environment and save your company money. While searching the internet one day I found this website. This a good website to find recycling centers for all kinds of products - http://earth911.com/.

This is a little off the HR outsourcing theme of the site, but I was reading an article on the internet a couple of months back that has stayed with me. The article was about a service company and a manufacturing company that had raised the price of their respected product and in return got an increase in profit as well as an increase in sales. I thought this was an interesting idea because people are always talking about lowering prices to boost sales but in some instances reversing that claim and raising the price of a product could actually be more profitable. Here is my own real life example of this.

I recently went out and bought a new LCD flat screen TV at a local electronics store. As I was looking around I noticed there was a drastic difference in price from brand to brand. They all had the same basic look but right away I noticed myself shying away from the less expensive models. To me the less expensive TV meant it was of lesser quality, either the parts were not up to date or the TV itself was more cheaply assembled or that I would encounter more problems and issues with the less expensive models then I would with the more expensive ones. I ended up buying one of the upper middle priced TVs because in the long run I believe it will outperform and out last the cheaper models. After all you get what you pay for.

Now I am not condoning everyone go out and raise the price of their goods and services just for the sake of trying to get better profits. Rather, what I am saying is there is a perceived notion that higher priced goods have a tendency to be of a higher quality than goods that are significantly cheaper.

Raising the price of a product might be a good idea if the product you want to raise the price for is a constant seller for you and you have not raised prices in a long time. A wise decision is to raise the price gradually and let the customer know, first of all, that you are planning on raising prices, but also let them know why. The example in the article I read was that the company had not raised prices in 4 years and fuel costs had gone up which was affecting their business. Gradually they raised the price and in return got more sales out of the deal. So remember, raising prices can be a profitable decision if it is done the right way.

What does it mean to HR Outsourcing Professionals?

February 16, 2009 – The House  of Representatives passed the American Recovery and Reinvestment Act and President Obama signed the bill this week in an effort to help stimulate the economy. There were provisions within the bill that also benefit Human Resources departments. The two main provisions in the bill are COBRA continuation coverage and Unemployment Compensation.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) will allow eligible workers to receive a 65% subsidy toward their health care coverage premium for up to 9 months. Plus individuals who were involuntarily terminated between Sept 01, 2008 and Dec 31, 2009 and earn and income less than $125,000 for singles and $250,000 for couples would qualify for the COBRA premium assistance for them and their family. If the party chooses to originally decline the use of the COBRA service would be given 2 months after they receive notice of the special election period to choose to participate in the program.

Under the Unemployment Compensation provision there will be both an extension of benefits as well as an expansion of benefits. In regard to the extension of benefits qualified workers would be able to collect unemployment benefits until May 31, 2010. Under the old provision benefits would only be collected until Dec 31, 2009. This will help ease the minds of people who have lost their jobs and have been unable to obtain work.

Not only will there be an extension of benefits, there will be an expansion of benefits albeit it a small one. An increase of $25 per week would be made available to all individuals receiving regular, extended or emergency unemployment benefits. There would also be an extra $15 per week for each of the qualified recipients’ dependents.

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For a company dealing with overtime, less is more. Allowing employees to work overtime can be beneficial when there is a deadline that needs to be met, but letting employees work overtime on a considerable basis can cost a company thousands of dollars. If a company does allow its employees to accrue overtime on a significant basis there are a few factors that should be addressed to make sure there are no liability issues. Companies should tell managers to monitor employee work hours closely, adopt management policies to help monitor these hours and always be on the lookout for employees who abuse their right to work overtime hours and intentionally submit fraudulent time cards.

Poor supervisory habits can lead to errors in employee time cards which can lead to disputes on whether overtime was worked or paid properly. Managers that issue key card or codes to employees to work on the weekend or allow them to take work home on a regular basis are not able to supervise them and hours worked could possibly be exaggerated. The unmanaged overtime costs could result in heavy fines.

Intentional fraud is also a concern for companies. There are a variety of ways for employees to steal overtime if management is loose or there are no set policies set in place to monitor overtime correctly. Ways this can be done is marking down un-worked overtime, punching in other employee’s timecards, or failing to punch out their own time card and when the manager comes to them about it tell them an inflated number of hours you worked and apologize for not punching out.

Overtime is a tricky thing for a company to deal with. The best way to handle it is only allow overtime hours in moderation and have managers check and double check all hours worked. Having pertinent policies set in place will allow your company to cut down on fraudulent overtime charges that can really hurt your business in the long run.

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