Contribution #14: Tax Rates for High Earners Increasing Around the Globe

Staying in line with Chapter 15, I found an article from the SHRM website that highlighted the intensity of the global tax rate market and the effect it might on offshoring employees. Especially for American companies, it is important for their HR department to keep an eye on the personal income tax rate when trying to relocate employees or giving input to management regarding their expansion to a country overseas. HR managers might have a hard time convincing employees to move to Europe for business when personal income tax rates are roughly 50 percent in the U.K. If the company expects to move operations to the U.K., HR must be able to offer better benefits or a higher salary to compensate for the high tax rates. However, if they wanted to send operations and employees to Denmark, it would be a little easier because they just lowered their top rate by 7 percent. HR might also recommend against moving to Sweden, Japan, or Chile, countries that hold the highest rates in their respective global regions. I find this similar to what is happening in the United States. Even in recent free agent negotiations in sports, teams are making note to players that their state has no state income tax which means they make more money than they would in a state that has a high state income tax. It is just another benefit that the “employer” can offer to its demanding “employee.”

Contribution #13: Education-Human Capital

The role of managing HR globally, including different strategic goals, depends upon the education available to the workforce. HR managers must assess the type of work that makes the most sense to send to foreign countries. Countries that give their citizens more educational opportunities have higher levels of human capital. The amount of human capital that a country offers determines whether companies send their low-skill work offshore because it costs less, due to the lack of education offered in the foreign country. The usually involve jobs that require both low skills and low wages, as previously mentioned, to give the company a competitive advantage in that market. How educated the workforce is affects HRM because they have to know the knowledge, skills, and experiences that have economic value in that country; which directly impacts how much training HR has to do and how much training it might have to give to expatriates to train those employees.

Contribution #12: Managing the Economic Downturn

Chapter 15 is all about managing Human Resources globally. In the brief article I found, I was clueless as to how other countries might perceive their own jobs in society and the implications it has on organizations, especially in India. It talked about the paternalistic nature of the companies and how they are less likely to proceed with layoffs during an economic crisis. This is crucial for businesses from around the world to understand, from an HR point-of-view because if they are looking to expand to India, they must do their homework on the customs and culture of how organizations are run in India. Indian companies resort to HR practices with labor that include: restructuring, slower rates of salary increase, and hiring freezes. In India, the article says that labor issues in an economic crisis are just as much about the social safety net as it is economic. To be laid off in India means that that person was unqualified or incompetent for their job. That puts a lot of pressure on the individual to perform well, and in most cases, that is what leads Indian companies away from the common U.S. human resource practice of layoffs. All in all, HR managers have to be aware of the perception in society of handling the labor force, when looking to expand business operations globally.

Contribution #11: Obama Freezes Payroll

Chapter 14 is focused on Collective Bargaining and Labor Relations and a decision made today by President Barack Obama, shows the role of a union and the cost saved to American peoples by de-unionizing labor. The National Treasury Employees Union is vehemently against President Obama’s decision to freeze pay increases for nearly 2 million federal government employees. The President of the NTEU said that they plan on fighting the measures taken by Obama, in Congress.
‘The administration had examined pay levels, "and the data we get back indicates that high-skilled workers in government are slightly underpaid. Lower-skilled workers are slightly overpaid relative to the private sector," Obama said. "And that's not surprising," he added, "because it's a unionized workforce" in government, while the private sector typically is not.’
The proposed cuts will save American taxpayers roughly $30 billion over the next five years. At the end of the chapter, I also learned that it is illegal to strike at the federal level of the public sector and most states. However, this hasn’t prevented work stoppages in state and local governments. Therefore, in regards to the Obama administration’s new policy, we should not fear a strike of our national government, but do expect the NTEU and the American Federation of Government Employees to file grievances and fight for this to be reversed in Congress.

Contribution #10: Labor Unions and Collective Bargaining in the NFL

Reading about Labor Unions in Chapter 14 only increased my own premonitions about what is going to happen to the NFL. The book talks about how effective labor unions have the power to bargain in relation to management. The right to strike is a power tool of labor unions, but it has to be a collective idea from the labor force. In the case of the NFL, the players have a high magnitude of bargaining power over the management because of the costs that are imposed on management without viable labor. While it is true that labor costs in the NFL are going up, I find it hard to believe that the owners of teams will be willing to sit on all the costs of stadiums and not make money for an entire season. Considering that the NFL’s Player Association is so large, owners would also have a hard time finding a quality product that people would still want to watch on Sundays. However, this is where labor relations and collective bargaining gets exciting. The players also know that they would rather play football than bag groceries or be a gym teacher, so they have to find some middle ground to help decrease costs of the owners, whose ultimate goal is to make themselves filthy rich. Another thing to take away from this Chapter is the negotiation process. I view the process as a form of distributive bargaining because the union wants a larger share of the pie, but management also wants to reduce costs because they say they are too much of their profits. My guess is that this will turn into some form of integrative bargaining where players will get more pay, while rookie’s pay will be drastically reduced. That type of agreement might be enough of a middle ground for the owners as well as the players in relieving some of the pressure in agreeing to a new collective bargaining agreement. However, if the owners want to move to an 18-game schedule then they better be prepared to increase wages or else find another incentive for players to make them feel like the beating they take is worth it.

Contribution #9: Bear Stearns’ Brutal Fallout

The story that leads into Chapter 13 is a prime example of investment in your own company’s stock gone bad. Since the fall of Enron, and the collapse on Wall Street, many employees have seen their entire life savings plummet. Even a well diversified portfolio can come crashing down when the stock market takes a nose dive, but imagine if your portfolio included upwards of 50 percent or more of your own company’s stock and suddenly your employee benefits are wiped away because of an unhealthy merger or a hostile takeover with your company. The goal of HR Managers is to inform employees about the certain benefits that come with their job and the potential risk involved with limiting themselves, in terms of stock, to their own company. Employee benefits are supposed to live up to their name, but if the employee is unaware of the potential risks involved with receiving and not receiving some benefits, it can be detrimental to themselves and their families. Many employees of private companies don’t have to fear the risk involved with company stock, so they are more concerned with social security, family-friendly plans, and retirement packages. Usually, those are set in stone with the terms of the contract and provide a worry free benefit to their employees. In the long run, it’s important for employees to understand their benefits packages and use them to the fullest extent, which must be communicated by the HR Managers.

Contribution #8: Google's "One-to-One" Exchange Program

In Chapter 12, there is an article about Google and how in 2009 they issued an exchange program that would allow employees to exchange their stock options that were “underwater.” This means that since Google, as most companies did in the stock market, took a significant hit in stock price, the employee stock options were essentially worthless. The main point of stock options is to provide incentive to employees and increase retention of key executives and employees. Google therefore allows employees to exchange their current stock for the current market value of the stock. The employees benefit from this because if this stock option matures back to the previous stock price that was 58 percent more than what it currently is, they will receive more compensation. In doing so, this allows Google to retain those crucial employees and continue to recruit the best. However, Google does take a financial hit for this decision. It was estimated that they would accrue a $460 million expense in order to satisfy their employees. I found this to be a telling measure of what Google thinks of its employees and the ethical standards which it upholds. Of course the expense was eye-popping, but then I looked up Google’s current financials and found that in the last 12 months they have sales over $27 billion and income over $7 billion. Not surprisingly, the employees who took part in the exchange program see a stock price of $616 today. I think I would be more than willing to go to work for Google.

Contribution #7: Executive Pay Hits China's Radar

Reading the article about the Chinese issue of executive brought to my attention the inequality of skill-based pay, but also reinforced my ideas regarding the subject. While it does seem unfair that these Chinese CEOs of publicly owned companies are making astronomical amounts in comparison to the Chinese urban pay average and even more than government workers. Politically, I am a Republican so I believe that these people are deserving of their pay so long as they warrant it. Just because the discrepancy is exceedingly disproportionate doesn’t mean that executives should give up their pay. As was stated in the article, in order to keep the best and highly skilled workers, they need to be paid accordingly. However, I do not disagree with the fact that measures could be taken to increase the minimum wage in China, but that is why China has a competitive advantage globally, their low labor costs. There is little China can do when it is stuck between a rock and a hard place, that is China’s reality and market competition; when it expects to maintain its status as a leader in the global market. The use of skill-based pay, with some profit sharing bonuses on top of that, helps to retain the most knowledgeable CEOs in China, preventing them from going elsewhere in the world.

Contribution #6-Employee Assistance and Wellness Programs

The topic of EAP’s in Chapter 10 made me think about the specific wellness programs that are offered at my current job at the Packers Pro Shop. The main initiative they have had since I began working there was Packers Pulse. The Packers organization has had players and staff that have passed away at a young age because of issues that may have been preventable. The big issue they are trying to tackle is obesity and having the correct balance of a healthy diet and physical exercise. Packer Pulse is an all-organizational program that promotes both of these crucial elements of living a healthy lifestyle. As we also learned in our trip to Lambeau Field with HR, they mentioned the walks around the stadium to get a half hour of exercise in each day. Healthy employees mean more time spent in the office which leads to higher retention for the organization. Another thing they have is a competition that combines eating the correct foods, eliminating the bad foods, and a dose of exercise each day as a team where you compete against other teams for prizes over a span of 6 months. Lastly, another benefit they give you in terms of wellness is that the Packers sponsor one or two teams for the Bellin Health Run that is offered as an incentive to get out and get fit. The Packers also are pioneering the efforts against certain cancers and health-related issues by posting health facts by the employee elevators for staff to see. Offering these wellness programs is a low-cost way to provide healthy incentives and awareness about potentially life-threatening medical issues. This allows the HR department to prevent high turnover in terms of health conditions and it boosts the morale of employees when they can exercise and eat right.

Contribution #5: Evidence-Based HR

In Chapter 9, there is a small article that gives attention to executive education and tuition reimbursement programs. I found this particularly interesting because I had no idea that universities are now measuring the success of their programs to find out the return on investment for companies to prove how valuable they are. The use of performance measures, action learning, surveys to judge practical values, and on-site college degree programs allow for companies to evaluate their employees and make sure that there is measurable worth in reimbursing their employees tuition and executive education.
As a senior at SNC, I cannot help but to think about the idea of searching for companies that offer tuition reimbursement and programs to help me acquire a Master’s Degree. I also think that from a business standpoint, companies are wise to measure the effectiveness of the education that they are paying for. As a business owner, I want to see increased performance levels at work so therefore, I think it’s a good idea for the business to partner with the universities in creating these measures. These measures also allow businesses the opportunity to identify employees with the most potential for becoming higher-level executives. Also, I think the idea of incentive tuition reimbursement is a good idea. This encourages employees to work as hard as they can because some employees might feel satisfied with a C, but not if they have to end up paying for half of their tuition. Giving full reimbursement for As and Bs is an effective tool is maximizing the results of employees. Lastly, as an employee of a company, I would take the education programs seriously if the company showed trust in me by reimbursing my tuition. It creates a hard work ethic and provides the company the opportunity to assess my skills and abilities in furthering my education.

Contribution #4: Green Bay Packers HR

After the Lambeau Field Tour with the knowledgeable, enthusiastic Grant, the HR 336 class was fortunate enough to hear from Melissa Malfroid, an HR Coordinator for the Green Bay Packers. Melissa works under her boss, Nicole Ledvina, who is the Human Resources Manager. It was surprising to find out that the Green Bay Packers hadn’t had an HR department prior to the completion of the renovated Lambeau Field in 2003. Granted, the renovation allowed for year round activities at Lambeau Field which probably increased the number of employees from a couple hundred to nearly 500 during game days presently. I found it interesting that all HR procedures or activities would have been handled by someone else within the organization prior to the official creation of the HR department. Not to say that HR management wasn’t a large part of the Green Bay Packers strategic plan, but it’s interesting to think that they didn’t have a large need for at least one identified HR Manager to go to if there was ever a problem.
Being an employee of the Packers, I also found it interesting how much HR was involved in the other facets of operations that occur on a daily basis. Melissa stated that they might receive up to 150 resumes just for a part-time job which is incredible to me. Working at the Pro Shop, I see some of the incoming resumes, but I would not have guessed that number by any means. Lastly, I find it amazing that such a large corporate operation still only needs two full-time HR positions and one intern to get through the busy time of the year. I wish I would have asked Melissa what would happen if either of them had to take a leave of absence and how they would try to fill that role. Seems like it could be a case right out of the NFM!

Contribution #3: Unconscious Bias

Reading the article in Chapter 6 on the unconscious bias in America literally “opened my eyes.” The article stated that an advocacy group found that African Americans were less likely to be offered a job. But the more interesting thing that this group concluded was that it is not an obvious prejudice or discrimination, but an unconscious thought process. Using a tool called the functional magnetic resonance imaging (fMRI) tool researchers found that when people were shown images of the different race there was a chemical reaction that normally occurs only with a perceived threat. They said that the speed of the reaction was so fast that it indicated there could be no “cognitive processing of the information” which concluded that the bias had to be unconscious.

Another thing that I found very interesting was that this bias was not only present in Caucasians but African Americans as well. It’s interesting to note that fact because researchers also commented on the fact that African Americans are portrayed negatively in many media outlets including movies, TV, and the nightly news. I agree that not only the media, but in history, African Americans have a negative portrayal and it’s amazing to think that a high percentage of Americans have an unconscious bias above and beyond any formed opinions. I also think that it’s crucial to HR Managers to take in this information and adjust for what might be happening. They need to adapt to these changes and find ways to try and eliminate theses biases. But can they? My guess is no. If these reactions are subconscious, realistically it is going to be hard to maintain the proper protocol for hire employees.

Lastly, I believe that it’s the responsibility of the media outlets externally and even HR Managers to internally try and portray African Americans in a more positive light. This would not only improve the hiring process, but hopefully help with the obvious prejudice and discrimination that has plagued this country for over 100 years.

Contribution #2: "Flextime" Scheduling

One topic that seems interesting to me are the ideas involved with alternative work schedules. We briefly discussed in class the idea of “Flextime” scheduling. Basically, flextime allows for employees to choose when the start and end their day as long as there is a certain period during the day in which all employees are on the job (e.g. 10 a.m.-2p.m.). Speaking from personal experience, there are benefits and burdens to flextime scheduling.
I think one of the major benefits of flextime is a decrease in the stress of making it to work before a set time. Mornings are always unpredictable. Everything and anything could go wrong. Missed alarm clock, traffic, car doesn’t start, kids are sick, etc. happens routinely in people’s daily lives. Judgment from employers based on whether you show up at 8 a.m. or 8:02 a.m. adds considerable stress to one’s work day. I have seen this side of the story at both Culver’s and the Packers Pro Shop. At both places of employment, my schedule is strict and regimented. Worrying about being late adds a small amount of stress, no matter what anyone might try to tell you. Being able to have a stress free environment before and on the way to work helps relieve the stress and tension that actual work might bring, not compound it. That’s why it’d be nice to have a flex schedule where I know I can come in, do my work, and leave at a desired time later.
Unfortunately, I also think there are some cons to having a flextime schedule. For one, communication at work can become frustrating. If you never know when a co-worker is going to be in on a consistent basis, it makes it hard for you to communicate and solve problems related to business. I also think that flextime scheduling might make for lazy employees. Allowing them to pick and choose when they start and end gives them options, but sleeping in until 9 a.m. and showing up for work at 10 a.m. could lead to bad habits. Businesses are smart to try and combat this with the mandatory 10 to 2 work hours, but again, I think bad habits tend to lead to other things, possibly poor performance at work. Now those might be assumptions obviously because I have never had a “flextime” work schedule, but I’d like to think that for me, “flextime” would be used as a buffer for some things that could prevent me from being at work by 7:30 a.m. or 8 a.m.

More Twitter from the Sports World

Check out this awesome article from Lisa Horne at FoxSports.com regarding professional athletes and their twitter accounts. Some R-rated, but mostly funny stuff. Click here for the link to the site.

48 Hour Twitter Marathon

As required per the BUAD 336 syllabus, we are just about to wrap up 48 hours of Twitter that started at 11 a.m. on Sunday. I find Twitter to be an amazing tool, not just for networking, but for finding out the daily lives of professional athletes and the famous people whose lives we wish we had. Since it is an HR Management class I wanted to discuss the ramifications of professional athletes tweeting, and especially the likes of Chad Ochocinco. Earlier this preseason, the often suspended loud-mouth was fined $25,000 by the NFL and its commissioner, Roger Goodell. Ochocinco was punished because he tweeted during the game, which breaks the new twitter/social media regulations passed by the NFL. Under the aforementioned Twitter Policy imposed by the NFL, all team personnel including players and coaches are forbidden from using Twitter 90 minutes prior to kickoff and may not resume until all media obligations are met post-game. To some degree, I would have to side with the NFL on this one just because it establishes some focus and respect towards the game, not to mention it gives players a chance to show its owners that they are out there to win a football game. On the other hand, I have to say these guys are surrounded by marketing geniuses and this is just one way the NFL can have some say in their daily operations and how players are managed. Overall, it's a unique opportunity to see what is going on in everyday life of professional athletes and their daily schedule.

Lastly, I'd like to talk about my experience. I've had Twitter for about one year. Last spring, I went on a Twitter binge I guess you could call it, and added all my favorite athletes and sportscasters, as well as a few friends. I found it addicting to see the conversations they had with each other and the type of news information I received before it hit the press. As for this project, I found it interesting that I caught myself thinking about logical things to say, but in the end it was just spur of the moment kind of things. I still think that with the technological advancements of the cell phone, that email is the fastest way to communicate mass paragraphs, Twitter is a nice way to stay connected to any network; be it your coworkers, high school friends, or those in your field of work, for instance HR. I'm sure Twitter will only continue to grow and the key for graduating seniors like me is to find the ability to market ourselves just like Ochocinco and other athletes today.