July 2016 STRATEGIC FINANCE 17 Career Center’s Ten Tip.docx

July 2016 / STRATEGIC FINANCE / 17
Career Center’s Ten Tips for
Job Search Success lists
strong ethics as the num-
ber one most desirable
characteristic, advising
candidates to “be honest
with employers. This
includes your online pro-
file, résumé, and cover let-
ter. Honesty is integral
during the interviewing
and job offer process.”
IDENTIFYING INTEGRITY
IN A CANDIDATE
As in past years, JPI hiring
managers say the conversa-
tional interview format still
ranks as the most common
method for assess ing can-
didates, with 73% reporting
that they use the method.
Thus, inter view skills that
demonstrate honesty and
integrity are critical to an
applicant’s success. Hon-
tant trait for applicants at
all experience levels. Re-

spondents suggested they
were most concerned with
honesty, having received
falsified résumés or having
been lied to about a candi-
date’s background in the
past. A strong work ethic,
self-motivation, and ac-
countability follow integrity
in importance for entry or
mid-level positions.
For senior-level posi-
tions, the characteristic of
accountability ranked high,
while abilities to make de-
cisions and solve problems
were next in importance.
Hiring managers didn’t as-
sign as much importance
to higher-order traits of
strategic perspective, busi-
ness acumen, and global
competence as prior-year
respondents did.
DePaul University
The report concludes
that “hiring managers are
able to find valuable skills
and traits more easily than
in prior years.”
INTEGRITY IS MOST
IMPORTANT

This year’s JPI report shows
that character traits rank
higher than job skills. Pre-
vious years’ surveys indi-
cated that it was essential
for all candidates to have
integrity, but in 2015, in-
tegrity was the most impor-
ETHICS
HIRING ETHICAL
EMPLOYEES
Hiring managers are increasingly
prioritizing ethics-related character
traits, such as integrity and accounta-
bility, when evaluating job candidates.
BY CURTIS C. VERSCHOOR, CMA, CPA
FOR THE PAST SIX YEARS, the Ca-reer Advisory Board
ofDeVry University has stud-ied the gaps between traitsand
skills that employersare looking for in job candi-dates and the
actual charac-teristics possessed by the
applicants they meet. The 2015 Job Prepared-
ness Indicator (JPI) surveyed 503 full-time hir-
ing managers who screen and hire applicants
with at least a college education.
esty in portraying a specific
desirable outcome that re-
sulted from a team effort is
a better approach than list-
ing achievements on a ré-
sumé to emphasize

single-handed accomplish-
ments. For example, the
statement, “Working to-
gether with IT, my depart-
ment was able to speed
monthly closing time by
three days” is preferable to
“I was able to shorten
monthly closing by three
days.”
Pre-employment tests
are used by 37% of JPI re-
spondents and are available
for a number of attributes,
including integrity. The
provider of one of the in-
tegrity tests notes they are
used “to evaluate an appli-
cant’s honesty and trust-
worthiness including
attitudes towards risky
workplace behavior, theft,
lying and unethical behav-
ior. Questions are designed
to examine the applicant’s
attitude and approach to-
wards misuse of company
resources, e-mail and Inter-
net abuse, use of drugs and
alcohol, trust with confi-
dential information and
personal responsibility.”
Dependability is an-
other key element of em-

ployee integrity that must
be discussed in a successful
interview. Management
accounting and finance ap-
plicants should be pre-
pared to present a strong
work ethic, including
timely arrival at work, reg-
ular attendance, disincli-
nation to overuse sick days,
and a desire to follow com-
pany personnel policies.
ETHICAL CLIMATE
A key component of suc-
cessful recruiting is assuring
that a new hire fits into the
ethical climate of the organ-
ization. Candidates for
management accounting
and financial management
positions should prepare for
an interview, whether by
telephone or in person, by
researching as much as pos-
sible about the industry and
the organization’s place in it,
especially ethical practices
and reputation. This work
should be done well in ad-
vance of an interview and
followed up by questioning
during the interview. A par-
ticular area for discussion

could be the company’s po-
sition on sustainability and
any related experience the
candidate may have.
It’s especially important
for candidates in finance
positions to inquire about
the organization’s code of
conduct as well as the na-
ture and frequency of ethics
training provided. “Em-
ployers want you to show
that you’ve done your re-
search and prepared for not
only an interview, but also
for a career in their com-
pany and industry,” said
Madeline Slutsky, Chair of
the Advisory Board. “In
today’s job market, candi-
dates must differentiate
their expertise to stand out
from the competition.”
Job seekers should be
aware that hiring managers
have natural skepticism, so
they should develop the
ability to authentically
share instances from previ-
ous work experience in
which they acted ethically.
For example, applicants
could relate how they dis-
cussed and successfully re-

solved a question of how
much revenue could be
booked in a current period
when the sales organiza-
tion was pushing hard to
meet its goal.
Open communication
between employees and
employers, a key compo-
nent of a strong ethical cli-
mate, can occur only when
there’s an atmosphere of
trust in the workplace. Em-
ployees who can speak up
honestly about workplace
issues facilitate greater
overall worker productivity.
Employers who trust em-
ployees with details of com-
pany policies and explain
the reasons for changes
made in the workplace lead
to greater employee satis-
faction, lower turnover, and
higher productivity. Hiring
managers who can articu-
late the benefits of their or-
ganization’s strong ethical
culture have greater success
in obtaining long-term ca-
reer employees.
Individuals with the
CMA credential should

rank high in integrity as job
candidates, considering
their requirement to annu-
ally comply with the IMA
Statement of Ethical Profes-
sional Practice and to main-
tain high professional
competency in ethics and
integrity through continu-
ing ethics education. Hiring
managers should be able to
rely on the strong ethical
quality expected of all IMA
members.SF
Curtis C. Verschoor, CMA,
CPA, is the Emeritus Ledger & Quill
Research Professor, School of
Accountancy and MIS, and an hon-
orary Senior Wicklander Research
Fellow in the Institute for Business
and Professional Ethics, both at
DePaul University, Chicago. He also
is a Research Scholar in the Center
for Business Ethics at Bentley
University, Waltham, Mass., and
chair-emeritus of IMA’s Ethics
Committee. Trust Across America-
Trust Around the World awarded
him a Lifetime Achievement Award
in 2016 as a top thought leader in
trustworthy business. His e-mail
address is [email protected]
sbcglobal.net.
18 / STRATEGIC FINANCE / July 2016

ETHICS
IMA ETHICS
HELPLINE
For clarification of how the
IMA Statement of Ethical
Professional Practice ap-
plies to your ethical dilemma,
contact the IMA Ethics
Helpline.
In the U.S. or Canada, dial
(800) 245-1383. In other
countries, dial the AT&T USA
Direct Access Number from
www. usa.att.com/traveler/
index.jsp, then the above
number.
The IMA Helpline is designed
to provide clarification of
provisions in the Statement
of Ethical Professional
Practice, which contains
suggestions on how to resolve
ethical conflicts. The helpline
cannot be considered a
hotline to report specific
suspected ethical violations.
SF
ADVICE

Reproduced with permission of the copyright owner. Further
reproduction prohibited without
permission.
reproduction prohibited without permission.
Feel Good Management as valuable tool to shape workplace
culture and drive employee happiness
Frenking, Stefanie
Strategic HR Review; 2016; 15, 1; ProQuest Central
pg. 14

Testing their limits
Rice, Sabriya . Modern Healthcare ; Chicago Vol. 46, Iss. 23,
(Jun 13, 2016): 19-21.
ProQuest document link
ABSTRACT
It's never easy to initiate conversations about age-related
physical and cognitive changes among surgeons, whose
slightest slip-up can cause irreparable harm to patients. The
aging process affects each person differently. And
while some acknowledge the changes that come with getting
older, others may deny them. A growing number of
health systems are creating policies that require clinicians of a
certain age to undergo physical, cognitive and
clinical testing. Given the high-risk nature of practicing
medicine, some are asking if mandatory cutoff ages and

cognitive and physical examinations are needed. The mean age
of retirement for U.S. physicians increased
steadily from 63 to 68 from 2003 to 2014, according to the
Association of American Medical Colleges. A 2015
report from the American Medical Association showed that
poorer performance on quality measures such as
mortality and length of stay were more apparent for clinicians
age 60 and older, especially among those
performing low volumes of the procedures. Most experts who
spoke to Modern Healthcare shared examples of
problematic incidents with elderly doctors.
FULL TEXT
Surgeon Dr. Herbert Dardik wanted to return to the operating
room at Englewood (N.J.) Hospital and Medical
Center soon after recuperating from bouts of serious bladder
and heart conditions in 2015.
But officials at the facility balked. While the 79-year-old chief
of general and vascular surgery performed just a few
complex operations each week, his age and recent health
episodes made hospital administrators apprehensive
about a prompt return.
They had few tools at their disposal, though. Hospital policy
limited interventions to clinicians who had made

medical mistakes. Dardik had never had an adverse event with a
patient under his care.
Surgical chief Dr. Michael Harris offered an alternative. He
asked Dardik to try a program in Maryland that provides
cognitive and physical examinations for aging surgeons.
"I reacted not only negatively, but even with hostility," recalled
Dardik, who still swims laps daily in his pool. In fact,
he challenged Harris to a swim-off. "I kept thinking, 'Who
knows better about my capabilities than me?' "
Harris insisted. "We want to make sure our clinicians are
operating at the top of their game," he said. "That means
that sometimes we need to intervene."
It's never easy to initiate conversations about age-related
physical and cognitive changes among surgeons, whose
slightest slip-up can cause irreparable harm to patients. The
aging process affects each person differently. And
while some acknowledge the changes that come with getting
older, others may deny them.
These difficult conversations have become more commonplace
in recent years, because physicians--like everyone
else--are living longer. Advances in medicine, personal wellness
and public health, along with the desire to preserve
a sense of purpose and their lifelong identity, have led many to

work well beyond traditional retirement age.
As a result, a growing number of health systems are creating
policies that require clinicians of a certain age to
undergo physical, cognitive and clinical testing. Those
programs have been met with ire by career practitioners,
who argue that age is just a number. Doctors--no matter what
their age--already must renew their medical licenses
at regular intervals with state medical boards.
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But medical groups, patient safety leaders and others counter
that the renewal process does not look for age-
related cognitive and physical decline that could harm the
quality of care provided to patients. "The medical
profession should act now, lest others dictate the direction of
this important issue," concluded a 2013 report that
summarized opinions of medical, legal and public policy
experts.
"Medical boards need to have policies for dealing with this, just
like they should have policies for dealing with

doctors who are not competent or who harm people repeatedly,"
said Lisa McGiffert, director of the Safe Patient
Project for Consumers Union.
The 1967 Age Discrimination in Employment Act gives the U.S.
labor secretary the power to ensure that aging
workers are not displaced from jobs as a result of arbitrary age
limits. The law did exempt some high-risk
industries.
Air traffic controllers, for instance, must retire at age 56.
Federal firefighters bow out at 57. Airline pilots must retire
at 65. Other industries, such as accounting, also have mandatory
retirement policies that are controversial and are
being re-examined. The law allows the Equal Employment
Opportunity Commission to consider other reasonable
exemptions.
Given the high-risk nature of practicing medicine, some are
asking if mandatory cutoff ages and cognitive and
physical examinations are needed. More than 99,500 physicians
in 2014 were still practicing in their 70s and
beyond, according to estimates in the Journal of Medical
Regulation, a publication of the Federation of State
Medical Boards. That was up about 2% from 2012.
"The general public thinks we police ourselves better than we

actually do. The reality is we don't do everything we
should," said Dr. Mark Katlic, chief of the surgery department
and director of the geriatric surgery center at Sinai
Hospital. That 504-bed Baltimore facility is owned by
LifeBridge Health, a system that in 2014 launched the novel
aging-surgeons program where Englewood Hospital and Medical
Center decided to send Dardik.
Dardik's initial negative reaction didn't surprise Katlic. "We all
face an inexorable decline in our physical and
cognitive function. It's a fact of life," he said. "But doctors
don't always believe it."
The mean age of retirement for U.S. physicians increased
steadily from 63 to 68 from 2003 to 2014, according to
the Association of American Medical Colleges. The aging
workforce is likely to become more noticeable in the
years ahead.
A 2015 report from the American Medical Association showed
that poorer performance on quality measures such
as mortality and length of stay were more apparent for
clinicians age 60 and older, especially among those
performing low volumes of the procedures.
Its policymaking body, which consists of 540 physicians
appointed by each state medical association and medical

specialty association, is in the early stages of identifying
research opportunities to inform preliminary guidelines
for assessing senior and late-career physicians.
Likewise, in January the American College of Surgeons
recommended that surgical specialists undergo voluntary
and confidential baseline physical examinations at regular
intervals starting between ages 65 and 70.
Neither group favored mandatory retirement because age-related
decline varies from person to person. Such
policies could have a "deleterious impact on access to
experienced surgical care," the ACS said. Much of the
hesitancy is likely due to a looming doctor shortage.
"There can't be a one-size-fits-all solution," said Dr. Vikas
Saini, president of the Lown Institute, a group that
advocates for a more patient-centered healthcare system. "It
sounds reasonable in theory. But I'm not sure we
want to retire people when they might have some of the most
rich experience and understanding in the field."
Still, most experts who spoke to Modern Healthcare shared
examples of problematic incidents with elderly
doctors. There was the surgeon who fell asleep during an
operation; another who couldn't remember the way to his
own office and had to be led there by residents; and an
obstetrician who did not have the physical dexterity to

deliver a baby.
"Most of us have known a physician in our careers who
probably should have retired well before they did," said Dr.
Ann Weinacker, vice chair of medicine for quality
implementation for Stanford Health Care. The Palo Alto, Calif.-
based system was an early adopter of a late-career practitioner
policy. Such initiatives are proliferating, but they
are not easy to implement, partly because being a physician "is
not just what we do, it's who we are," Weinacker
said. "The idea of someone saying, 'You can't do that anymore'
is frightening."
While industry leaders oppose the government setting
mandatory retirement ages for clinicians, there is support
for hospitals and health systems to introduce mandatory
objective evaluations. Stanford and other systems are
already trying to figure out best practices and are working with
their attorneys to create programs that don't break
federal law.
In 2011 the University of Virginia Health System in
Charlottesville made physical and cognitive exams mandatory

every two years for medical staff age 70 and older. Lucile
Packard Children's Hospital of Stanford Children's Health
introduced a similar policy around the same time; that policy
was extended to Stanford Hospital and Clinics two
years later. The Texas A&M Rural and Community Health
Institute in College Station, the Pittsburgh-based UPMC
system and Children's Hospital &Medical Center in Omaha,
Neb., have similar policies.
The policies vary in terms of the ages at which clinicians begin
screening and what the exams require. Some call
for clinicians to complete clinical skill and physical health
screening every couple of years. Others require a more
controversial cognitive test, which the AMA is leery of
supporting.
Practitioners at some institutions are allowed to be tested by
their own primary-care physician. Other institutions
have outside physicians conduct the exams to avoid awkward
peer-to-peer encounters.
The exams may take only a half day at one institution, but
several days at another. Some programs solicit peer
reviews ranging from a few to more than a dozen of the
practitioner's clinical counterparts. "There's no blanket
rule. What that means is that we need some kind of uniform way
of judging," said Saini of the Lown Institute. "But

we don't do that even for younger doctors."
That concern was shared by the Consumers Union's McGiffert.
While medical licenses must be renewed regularly,
competency exams are not required after the initial process.
"The fact that somebody gets a medical license in
their 20s and never has to prove their competency again until
they are 70 is pretty weird, especially because the
profession changes so much," McGiffert said.
As groups representing hospitals and clinicians consider
standardizing the efforts, facilities that want to
proactively introduce late-career practitioner policies must
recognize that "it's not for the faint of heart," Weinacker
said. "It's a touchy subject, it's not easy to implement, and it's
not always popular."
Though Stanford Health Care initially included a cognitive
screening, that aspect was ditched the following year
because of disagreement over whether it was a strong indicator
of performance. Instead, they bolstered the peer-
review process and now seek feedback from eight to 10 of the
practitioner's colleagues. To gather, assimilate and
review all that data is also "logistically very time-consuming,"
Weinacker added.
LifeBridge Health's aging-surgeons program takes two days.
Practitioners can travel from anywhere in the country

to voluntarily participate, or it can be recommended for a
surgeon by leadership. The mere recommendation can be
infuriating for long-time practitioners. "At least half a dozen
surgeons voluntarily retired when threatened with our
program, rather than go through it," Katlic said.
That particular program also comes with a hefty $17,000 price
tag. "There is absolutely a financial burden," said
Harris, the surgical chief at Englewood Hospital. That facility's
surgeon, Dardik, reluctantly became the first (and so
far, the only) Englewood physician to go through LifeBridge's
aging-surgeon program launched two years ago.
However, Harris says it was worth the investment. Dardik did
well on the exam, allaying any concerns that his
physical and cognitive health might be a patient safety concern.
He did recently decide to shift some of his
responsibilities and now spends more time on training and
education with another physician taking the role of
chief of vascular surgery.
Dardik also became an advocate who encourages his colleagues
to consider it. That ultimately saved Harris from
potentially losing a swim-off with his now 80-year-old
counterpart.
"I was not going to take that bait," Harris said. "He swims every

day, and there's no way I was going to be able to
keep up with him."
MH TAKEAWAYS Faced with a looming doctor shortage, some
hospitals and health systems are turning to
screening programs for aging surgeons as an alternative to
setting a mandatory retirement age.
DETAILS
Subject: Surgeons; Older workers; Cognitive ability; Testing;
Physicians; Performance
evaluation; Mandatory retirement; Personnel policies; Statistical
data; Regulation
Location: United States--US
Classification: 8320: Health care industry; 6100: Human
resource planning; 4310: Regulation; 9140:
Statistical data; 9190: United States
Publication title: Modern Healthcare; Chicago
Volume: 46
Issue: 23

Pages: 19-21
Publication year: 2016
Publication date: Jun 13, 2016
Publisher: Crain Communications, Incorporated
Place of publication: Chicago
Country of publication: United States, Chicago
Publication subject: Medical Sciences, Health Facilities And
Administration
ISSN: 01607480
CODEN: MOHEDA
Source type: Trade Journals
Language of publication: English
Document type: Cover Story
Document feature: Photographs Graphs Charts
ProQuest document ID: 1797405291
Document URL:
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Copyright: Copyright 2016 Crain Communications Inc. All
Rights Reserved.

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limits

Managing workplace conflict
Formal and informal approaches
The importance of conflict management
In an ideal world, the workplace would be an environment in
which perfect harmony was the
norm. Alas, the reality is often quite different. Companies
regularly witness accord
succumbing to disagreement and dispute. Incidents of this
nature often blow over quickly
and cause little if any harm. But the threat to performance and
organizational well-being
over the longer term is a real one that should not be overlooked.
Many firms are not surprisingly now increasing their focus on
conflict management. Shifts
in policy from successive governments have not harmed their
cause. Fears that too great
an emphasis on formal procedures can negatively impact on
costs and economic growth
has led to a loosening of the regulatory shackles. As a result,
businesses rightly have
greater freedom when it comes to handling employment
disputes.
These developments have coincided with a change in practice
within organizations.
Conflict management traditionally belonged in the human
resources (HR) domain. But a
growing tendency has emerged whereby HR departments are
delegating such
responsibilities to line managers. The various aspects of people

management are thus
added to their operational duties.
Given these growing workplace burdens, line managers will
naturally want to make life
easier for themselves if at all possible. Resolving conflicts
swiftly and efficiently would
certainly help in that respect. Things are rarely that
straightforward though. How to even
approach this task in the first place poses a considerable
dilemma. Should line managers
exploit the greater flexibility that is now apparently open to
them? Or do they simply apply
the formal processes and procedures which are in place?
Why informality breeds fear
When permitted, most managers would once have opted for an
informal means of
tackling any workplace unrest. A quiet word or two here and
there often nipped
problems in the bud and averted any need for formal
disciplinary action. Certain
organizations still recognize the merits of this approach. Line
managers are
encouraged to engage individuals using such as discussion and
counseling. Early
intervention can stop any minor difference escalating into all
out war between employee
and firm. A positive impact on performance is more likely when
consensus replaces
conflict. Such efforts can clearly be worthwhile.
Nevertheless, there is a growing hesitancy among line managers
to take the informal route.
This is especially apparent among junior managers who:

HUMAN RESOURCE MANAGEMENT
INTERNATIONAL DIGEST VOL. 24 NO. 1 2016, pp. 16-18, ©
Emerald Group Publishing Limited, ISSN 0967-0734 DOI
10.1108/HRMID-10-2015-0157
http://dx.doi.org/10.1108/HRMID-10-2015-0157
� Lack the competency and confidence needed to use their own
discretion in conflict
situations.
� Fear that a wrong decision could see them hauled in front of
an employment tribunal.
� Worry that mistakes will lead to internal condemnation of
their performance.
It is easy to conclude that flexibility in this context might be
more of a curse than a blessing.
Another concern is the obvious scope for inconsistency in the
way that issues are handled.
Different people are always likely to deal with similar
situations in different ways. All that
does though is to invite accusations of unfairness or prejudice.
Much of the prevailing anxiety among line managers can be
attributed to their limited
know-how. Such individuals will therefore not possess the
foresight or intuition needed to
identify issues before they reach a critical stage. Training can
equip them with knowledge
of formal processes and procedures. That’s easy enough.
Intuition is an entirely different

matter. It can only come through experience.
This apparent crisis in confidence prompts line managers to
seek greater guidance and
support from HR personnel. This is often not forthcoming
though. The same goes where
senior management is concerned. Hitting performance targets is
deemed a much higher
priority than people management.
The pros and cons of being inflexible
As a result, doing things totally by the book has increasingly
become the chosen option. A
key aspect of formal procedures is consistency of application.
Scope for different
interpretations is low. Greater impartiality is therefore
perceived. Adhering to the rules is
regarded as safer and less risky for all parties involved.
Official acknowledgment of workplace matters does have its
drawbacks. Line managers
believe that formal responses to conflict can:
� Negatively impact on employee morale.
� Damage positive working relationships and harm
productivity.
� Risk key individuals being lost to the firm.
Many likewise argue that going through formal channels is
typically:
� A cumbersome process which runs counter to the aim of
resolving workplace issues

swiftly.
� Demanding on their time to the extent that operational duties
can be affected.
� Too rigid a process that leaves little room for maneuver.
The last point is particularly significant. Most cases will
normally have individual
characteristics that make it almost impossible for one cap to fit
all. Even within the
confinements of a formal approach, some leeway for common
sense to prevail is surely a
must.
The often conflicting signals emitted by HR hardly help to
inspire line managers. On the one
hand, they appear to encourage some use of flexibility and
discretion. Notwithstanding this,
demand for compliance with formal procedures is also readily
apparent. The real danger
here is that confused managers will become disillusioned and
merely go through the
motions when it comes to meeting these obligations.
Perhaps the answer lies somewhere in between. Adding a formal
element to informal
processes might just prove the best way forward. Discussions
are a prime example where
line managers have valuable opportunities to meet with
employees and identify any
problems or concerns that might be emerging. Making a record
of such communications
VOL. 24 NO. 1 2016 HUMAN RESOURCE MANAGEMENT
INTERNATIONAL DIGEST PAGE 17

adds the safety and consistency that are viewed as positive
aspects of a formal approach.
Casual discussion can then function in a similar way to
appraisals.
If organizations insist on line managers being responsible for
people management,
changes are urgently needed. Conflict management must become
part of the job profile for
line managers and relevant competencies ascertained. These
should be incorporated into
the recruitment process and subsequent training, development
and performance
evaluation of those hired.
Comment
The review is based on “The challenge of managing informally”
by Richard Saundry, Carol
Jones and Gemma Wibberley. The authors discuss workplace
conflict and examine the
respective merits of adopting formal and informal approaches as
means to resolve
problems. This highly detailed piece notes the growing
responsibility of often
inexperienced line managers to handle such issues and the
challenges facing them.
Saundry et al. illustrate the many significant points made within
a case study involving 12
organizations and conclude by emphasizing the critical need for
firms to identify and
incorporate key competencies into the recruitment and training
of line managers.

Reference
Saundry, R., Jones, C. and Wibberley, G. (2015), “The
challenge of managing informally”, Employee
Relations, Vol. 37 No. 4, pp. 428-441, ISSN 0142-5455. doi:
10.1108/ER-06-2014-0061.
For instructions on how to order reprints of this article, please
visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: [email protected]
Keywords:
Informality,
Workplace conflict,
Line managers,
Procedures
PAGE 18 HUMAN RESOURCE MANAGEMENT
INTERNATIONAL DIGEST VOL. 24 NO. 1 2016
http://dx.doi.org/10.1108/ER-06-2014-0061
mailto:[email protected]
Reproduced with permission of copyright owner. Further
reproduction
prohibited without permission.
Managing workplace conflictThe importance of conflict
managementWhy informality breeds fearThe pros and cons of
being inflexibleCommentReference
· Welcome to Week 6
This week will cover material about HR Policies and
Procedures.
In this lesson, we will discuss:

· Compensation, Benefits Management, and Compensatory
Time.
· What do you recommend for responsive and fair compensation
policies. Compensation, Benefits Management, and
Compensatory Time
· Compensation and Benefit Policy
· Non-Monetary and Monetary Rewards
· Vacation Pay, Sick Pay, and Family Medical Leave Act
(FMLA)
· Insurance
· Retirement
Course Learning Objectives:
By the end of this lesson, you will be able to:
· Examine current literature and resources to evaluate
organizational HR practices and policies in the workplace
· Explore factors that define employee safety and health issues
and evaluate company policies and situations that contribute to
the health and well being in the workplace
· Explore the importance of human resource business
partnership with organizational leaders to ensure effective
implementation of policies and procedures
· Analyze and evaluate an organization's HR strategy and assess
the impact of that strategy on the workforce and the
profitability/success of the company or organizaiton
· LESSONHR Policies and Procedures
LESSON TOPICS
· Compensation and Benefits
· Compensation Strategy
· Compensation and Benefit Policy
· Non-monetary Rewards
· Monetary Rewards
· Vacation Pay
· Sick Pay
· Family Medical Leave Act (FMLA)

· Holiday Pay
· Comp Time
· Insurance
· Retirement
INTRODUCTION
This lesson covers HR Policies and Procedures. Organizations
have HR policies and procedures in place to have consistency
throughout. As discussed in Lesson Five, recruiting,
retention and termination procedures and policies take into
account where, when, why and how positions need to be filled
or eliminated. How these policies and procedures are executed
will depend on the size and type of organization. Lesson Six
continues the discussion and exploration into different HR
policies and procedures with a concentration on
compensation benefits management and time-off policies.
The processes workers use to communicate with each other are
spelled out in the policies and procedures. As with every other
lesson, clear communications are necessary and expected.
Organizational charts may indicate who works for whom, but
policies and procedures dictate how the exchange of ideas
should transpire. Policies and procedures can enhance employee
relations and help form good working relationships. Policies
and procedures often address cultural differences to prevent
discrimination and harassment.Compensation and Benefits
COMPENSATION AND BENEFIT PLANS
Compensation and benefit plans contain monetary and non-
monetary elements. The main purpose of a compensation and
benefits policy is to provide a competitive advantage to the
employer by being able to hire and retain the best talent
available. Compensation and benefit plans must contain costs,
be equitable, and motivate employees. The compensation and
benefits plan should reflect the culture of the owner and the
organization. As a starting point, leadership should develop a
compensation and benefits philosophy.

COMPENSATION AND BENEFIT PHILOSOPHY
A compensation and benefits philosophy is a statement of the
organization's position on employee compensation and benefits.
This is similar to a mission and vision statement and could be a
component of one of those. The compensation and benefits
philosophy statement explains the rationale behind the
compensation and benefits strategy. It does not have to be
complicated or elaborate, but it should be clear and concise.
Let’s look at one element of the compensation and
benefits strategy: compensation.Compensation Strategy
Once a compensation and benefits philosophy is articulated, a
compensation strategy can be formulated. To formulate this
strategy requires leadership to look internally and externally. A
salary survey might be conducted in order to know the salary
range for different positions within the company relative to the
local economy. Then, based on the recruiting objectives, a
decision will have to be made to match, lag, or lead the
competition in regards to compensation. This is how an
organization determines the external influence on the
compensation strategy.
Internal influences would be how different positions compare to
each other from a compensation standpoint. This looks at how
leadership values the different positions within the
organization. In order to ensure equity internally and externally,
a few things should be considered. The first is to make sure you
have a current job analysis for each position. Second, be sure to
have an accurate job evaluation for each position, and third,
establish salary ranges for each position or salary grade. The
salary range should have a low end, midpoint, and high end.
Let’s look into these three areas in a little more detail.
· JOB ANALYSIS
· JOB EVALUATION
· ESTABLISHING SALARY RANGES
The purpose of the job analysis is to determine what is expected
of a person in that position. It will provide the details of duties

of the position and the result of the data collected in a job
analysis can be compiled to write a detailed job
description.Compensation and Benefit Policy
So far, we have covered the importance of a compensation and
benefits philosophy and how that helps to create the
compensation and benefits strategy. The compensation and
benefits strategy is the foundational component used to develop
the actual compensation and benefits policy. Before we go any
further, let’s look at the different components that make up the
compensation and benefits policy. The picture below is a good
demonstration of what could go into the policy. Keep in mind, a
small company or a company in financial straits may not be able
to offer all of the things listed.
There are two categories of benefits; the benefits required by
law, such as Social Security and Workers Compensation
Insurance and those offered as direct or indirect compensation.
For the purpose of this lesson, we will look at employer
provided monetary rewards and non-monetary rewards. Within
the monetary rewards, we will divide the discussion between
direct compensation and indirect compensation. All of these
make up the total rewards or compensation and benefits
package.Non-monetary Rewards
Non-monetary rewards are incentives to employees that do not
come in the form of cash. Sometimes these come in the form of
perquisites, or perks, as they are referred to. Even though there
is no cash incentive with non-monetary rewards, they can still
have a significant impact on recruiting, retention, and morale.
This is just a short list and there are many other non-monetary
rewards are incentives that could make the list. The point is that
they provide an opportunity for the employees without a direct
cost to the employer.
NON-MONETARY REWARDS CAN INCLUDE:
· Job security
· Telecommuting
· Monthly potluck or themed lunch where everyone brings a

dish
· Discount gym memberships
· A small amount of paid time each month to work on a project
or passion not related to work
· Flexible work schedule
· In-house training
· A day or afternoon off with pay for completing a project early
or under budget
· Quarterly or monthly employee recognition
· Allowed volunteer time – specified number of hours per month
or yearMonetary Rewards
Monetary rewards are comprised of direct and indirect
compensation. The purpose of the monetary rewards is to
influence employee motivation and performance. When
administered correctly, this can be a very powerful tool. If not
administered correctly, it can be costly in the form of time,
money, and resources and can cause morale to plummet and
employees to disengage.
MONETARY REWARDS: DIRECT AND INDIRECT
COMPENSATION
DIRECT COMPENSATION
INDIRECT COMPENSATIONVacation Pay
The most common paid time off is annual leave or vacation pay.
This usually applies to full-time employees but some
organizations offer it to part time employees. This is an easy
area to clarify in the compensation and benefits policy.
Typically, the number of days or weeks provided is dependent
on how long the employee has been with the organization.
For instance, some organizations offer no leave the first year.
Others offer it after a probationary period such as 90 days or six
months. At that point, employees will earn a set amount of
vacation hours per payday, which would equate to a set number
of days per year.

A sample policy could read something like this: Employees with
1-5 years of service earn 10 days of paid vacation per year.
After five years of service but less than 20 years, an additional
five days will be earned for a total of 15 days per year.
Employees with over 20 years of service earn 20 days (4 weeks)
of paid vacation per year.
Within that policy, there should be a description of how many
hours an employee can accrue, how many can carry over to
future years, and anything else that would require explanation.
If this is not clear, an employee might think that she could save
up vacation for several years and then take two months off at
one time. The employee may be able to roll over that many
weeks, but the organization may limit the amount of time taken
at any given time. Regardless of the policy, it needs to be clear
and concise.Sick Pay
Sick pay is another common form of indirect compensation.
This could be a part of the PTO bank or it could be separate.
Just like vacation time, sick time accrual and use should be
spelled out clearly in the policy. In addition to what the
company offers, state and federal law may dictate the policy,
how it is administered and how it is used. If you live or work in
California, the laws are even more complex.
PAID SICK LEAVE
Open file: TranscriptFamily Medical Leave Act (FMLA)
In some instances, an organization will have to offer unpaid
sick leave. This could be due to state or local laws or in
compliance with the federal law titled the Family and Medical
Leave Act – FMLA.
The Family and Medical Leave Act or FMLA “entitles eligible
employees of covered employers to take unpaid, job-protected
leave for specified family and medical reasons with
continuation of group health insurance coverage under the same
terms and conditions as if the employee had not taken leave.”
(DOL, 2015, para 2)

FMLA UNPAID LEAVE
· FAMILY MEDICAL LEAVE
· MILITARY CAREGIVER LEAVE
Eligible employees are entitled to 12 work weeks of unpaid
leave in a 12 month period for:
· The birth of a child and to care for the newborn child within
one year of birth.
· The placement with the employee of a child for adoption or
foster care and to care for the newly placed child within one
year of placement.
· To care for the employee’s spouse, child or parent who has a
serious health condition.
· A serious health condition that makes the employee unable to
perform the essential functions of his or her job.
· Any qualifying exigency arising out of the fact that the
employee’s spouse, son, daughter or parent is a covered military
member on “covered active duty.
FMLA
Open file: TranscriptHoliday Pay
Paid holidays and personal holidays are two other forms of paid
time off. How and if these days are offered will be dictated in
the time off policy. One mention here is why they are lumped
together. Some employees will not celebrate or recognize
holidays typically provided as time off.
By allowing one or two personal holidays, an employee can
elect to take time off during a holiday they celebrate or
recognize that the organization may not officially recognize and
provide as a paid vacation day. This can also help with religious
accommodations or just show you value your employees. This
does not have to apply to just religious holidays either. For
example, many organizations do not provide time off for
Veterans Day. If you have employees or are veterans, they may
take that day as a personal holiday. As with all of the
categories we have covered, just make sure it is spelled

out clearly in the policyComp Time
What about compensatory time, commonly called comp time,
where does this fit in? Most likely, it does not, but in some
cases, it does. Confusing? It can be. First off, comp time is the
practice of allowing employees who worked overtime to take
that as time off instead of overtime pay. Unless you are working
for the government or in an exempt position, this practice is
probably illegal.
Some states allow private employers to use comp time instead
of overtime, but each state has different rules on how it can be
earned and used. For individual states, one could contact the
state wage and hour or labor office. For federal rules, the
information can be found at the Department of Labor
website.Insurance
When we think of insurance through work, the two main options
are health insurance and life insurance. The laws and options
are so complex; we could not begin to cover them here. What
we can discuss are some common options.
If an employer offers health insurance, they usually offer the
employee at least two options which include a high deductible
option or a lower deductible option, which is more expensive.
The employer may also offer an HSA – Health Savings Plan as
an addition or as another option. With the Affordable Care Act,
there are various dates and time tables employers have to meet
to stay in compliance with the law. From an employee
perspective, they may be offered a few options, or they could be
offered a cafeteria plan. A cafeteria plan is when the employer
agrees to pay a certain dollar amount towards the employee’s
health insurance and the employee will choose what coverage
they want, and decline what they do not want. If the employee
goes over the employer allotted amount, then the employee pays
the monthly difference.Retirement
If an organization offers a voluntary benefit plan, including a
retirement plan, it most likely will fall under the Employee
Retirement Income Security Act (ERISA), which is
administered by the Employee Benefits Security Administration

(EBSA). This is the overarching federal regulation that covers
employer benefit plans. The type of plan offered by an
organization depends on the type of organization and its tax
status. A private employer may offer a 401K plan, while a non-
profit could offer a 403b plan.
Regardless of the plan being offered, the organization will have
to decide if they will fund the plan for employees, match the
plan, or just make the plan available with no matching. As part
of the compensation strategy, the organization will also have to
decide if there are vesting timelines and limits. However this
may be used as part of the overall strategy, it should be clearly
depicted in the compensation and benefits policy.Conclusion
Writing HR policy and procedures is like planning a trip. You
must have a starting point and a destination. Once you know
where you are and where you want to go, then you map out the
route to get there. For organizations, that planned route starts
with a philosophy (where you are) and ends with a strategy
(where you want to go). The road map consists of the policies
and procedures put in place to direct the organizational path. A
compensation and benefits policy is just one leg of the trip. If
the policy takes the organization off course, it may never reach
its destination. If the policy is aligned with the overall goals
and objectives, it will bring the organization one step closer to
reaching the destination.References
Department of Labor. (n.d.). Retrieved September 08, 2017,
from http://www.dol.gov/

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