Water Cooler Conversations

Written by Pat Perry
President, ERC 

It has been very interesting watching
America’s workplaces react to the recession.  Some organizations reacted without much thought and started slicing jobs back in October.  Other organizations laid off workers after seeing drops in their business.  There are even profitable organizations cutting jobs using the economy as an excuse to “clean house.” 

The cost cutting measure we hear most about from the media is layoffs, because it’s the kind of news the media loves to share.  What the media misses are the other approaches good organizations are taking to reduce costs and improve productivity in good and bad times.  That’s what makes them good organizations.

Reduction of payroll through layoffs is not always the answer to combat a soft economy.  Unfortunately, fear takes hold of too many corporate “leaders” turning them from thoughtful decision makers to reactionaries.  When used as the primary cost cutting tool, layoffs may look good on paper in the short run, but can seriously affect an organizations’ long term business health. 

Challenging times requires new and creative thinking about managing a business and the workplace.   In good times, we hear CEOs echo across the land that “our people are our most important asset.”   Yet, in some organizations that “great asset” has been treated like a number over the past six to eight months.

We all recognize that there will be an economic upturn.  When it occurs, the organizations that take the right steps during these challenging times will come out of the gate way ahead of the competition.  It starts with a balanced strategy on combining cost reduction with talent attraction and retention.  Here are some key elements to consider in developing the strategy:

Compensation – Cutting costs through salary reductions should begin at the top, including paid Board members.  Salary reductions can be very effective in the short term to cut costs and preserve jobs. Nobody likes their pay cut.  But if it means retaining some good employees, it is well worth it in the long run.  Plus, in better economic conditions, those who took the cuts can be rewarded for their short term sacrifices.

Health Insurance – Aside from payroll, this is one of the biggest ticket items for an organization. 

Begin by developing a strategy.  This strategy would include your plan having access to all major hospital systems, integration with health/wellness initiatives and a plan design focused on optimal employee utilization of the program.  Real cost savings come from good plan experience rather than short term price reductions.  Unfortunately, too many brokers “shop” insurance carriers for the lowest price without regard to any benefits strategy.   That is why it is a good idea to ensure you have the right broker.  There are multiple ways outside of price alone to reduce costs with your health insurance these days.  The right broker and carrier will assist you with making this happen this year and years to come.

Employee Benefits - In addition to health insurance, there are a number of opportunities to manage costs while maintaining an excellent, meaningful array of benefits for your employees.  Again, it is critical to have a strategy based upon your employee demographics, interest in attracting and retaining top people and of course budget.  Also, make sure you understand what benefits are most important to your employees.  Ensure that your organization takes advantage of cost saving, flexible spending accounts and voluntary benefits – both designed to enhance individual benefits and add to an employer’s offerings. Depending upon your plans there may be opportunities to reduce expenses without significantly hurting the programs in place.  For instance, one consideration may be to reduce the employer match on the 401(k) plan in the short run.  Employees will still appreciate the pre-tax deferral of a portion of their income and recognize that given economic conditions, a temporary reduction in the employer match may be appropriate, especially if it means saving some jobs.

Bye-Buy – There is no doubt that this is a “buyer’s market” for great talent.  There is a tremendous amount of talent available and smart organizations are hiring these individuals.  Yes…hiring!  These organizations are stocking up on their “A” team now to help them through a tough economy and to take advantage of future market opportunities. On the other hand, this is a very good time to ensure that you are managing the performance of individuals who are not performing to expectation.  Working within the framework of your organization’s performance management system, replace non-performers with the top performers available in the market.

Shop Smart - Your organization probably outsources some HR related services such as payroll, background investigations, temporary staffing, etc.  Sit down with your current vendors to discuss ways to adjust the scope of the services you receive in order to control costs.  For large-scale purchases from one vendor ask about volume pricing.  Chances are there are some cost savings available – you just need to ask.

We are certainly in challenging times, and yet 2009 is abundant with new and exciting opportunities.  Unfortunately, fear has weakened our corporate knees.  It’s time to stand upright, make sound, fearless decisions and maximize what 2009 presents. 

Written by Pat Perry
President, ERC 

For many Americans and people across the globe, there is real excitement.  A new beginning…a renewed confidence in
America.  Regardless of your political persuasion it is hard to argue that we have someone in the White House that inspires.  Gosh do we need that…someone to encourage all of us to step it up…to make a difference.

I am truly excited about the next few years…the new administration is not going to be perfect by any stretch – but name one administration that met that lofty goal.  Yet, I wish they could be perfect in one area – honesty.  We can take bad news as well as the good news.  Just give it to us straight.  We can handle it.  If we get into “spin”, then nothing has really changed.  And that would be a shame.

It’s time to drop the political rhetoric and get moving as a country again.  How cool would that be – working together, rather than remaining the fragmented America of so many years gone by…

Go get em’ folks…let’s get behind the President and truly change.

Written by Pat Perry
President, ERC 

Well, here we go…let the final acts of desperation begin.  Between Saturday Night Live, the David Letterman Show and ads on video games I think we are certainly getting a great picture of who should be “king”.  Watching the buffoonery almost makes you see the current occupant at the White House as a leader. Almost.

I believe the Chinese have a proverb “may you live in interesting times”.  Guess what?

Little by little they are wearing us down. From their signs on tree lawns to their unsolicited calls to our homes at the dinner hour - the candidates are in full gear racing towards the goal line…caring only to finish first with little concern about the grace demonstrated during the race.

Each day in the mail we receive a handful of meaningless junk, reflecting negative statements about candidates rather than addressing issues.  This is followed by radio and television ads that are no less damaging to personal character.  These are compounded further by advertising through various technologies with the Internet being used extensively.

On November 5^th, many of us will breath a sigh of relief…it will be over.  And…for most of us, nothing will change in our local, state and federal governments except some of the players.  The people I know are starting to ignore what is going on in government.  They are going to work every day and focused on growing their businesses and jobs while turning a deaf ear to the government noise around them.

The past three weeks I have asked people I have come in contact with how their business is going. Most respond that their business is doing quite well. For many, orders are up, profits are up and some businesses are having banner years. There is a sense that business people are ignoring the media hype and our elected officials. Perhaps this is why many business leaders in our area are not panicking. They are employing good old American work ethic and see the current economic conditions as an opportunity to improve and grow. 

Now…that’s patriotic.

If you listen to the candidates and the pundits you would think we are about to implode. Nothing could be further from the truth. I have great faith in the private sector.  Most of us are geared toward success and we are lucky enough to be in a land that provides unlimited opportunities. If we focus on the basics we will emerge over the next few years as a stronger region. Let’s seize the moment.

Remember…we are the economy.

Written by Pat Perry
President, ERC 

Only in America!  How many times have you uttered those words or heard them in response to the great freedoms we enjoy in this country.  I for one feel incredibly fortunate to have opportunities that would not be afforded to me and my family in most other countries on this good earth. Our Constitution continues to be challenged, but has stood the test of time well. Our forefathers certainly had great vision for the future.

The beauty of our freedom in America is the opportunity to control our destiny.  For instance, how we earn a living is a choice.  I have yet to meet someone who is truly being forced to work in a certain occupation or stay at a company or be satisfied with their compensation.  Unfortunately over the past 29 plus years serving in human resources related jobs I have met hundreds of people who act as if a gun were pointed at their head forcing them to serve a “life sentence” of job dissatisfaction. 

I remain perplexed as to why people stay in jobs they hate.  “Living” for the weekend and only enjoying two out of every seven days is a tough road. 

Retirement is often “sold” to us as the time of our lives when we are truly free to enjoy life. Let’s see if I understand this concept.  I’ll trudge through life until I have enough money to get out of the “rat race”.  Then I can really enjoy every day.  So let’s see - if I work forty years and am fortunate to live a full retirement (about 25 years on average) I can look back an tell my grandchildren how great life was for about 2/5 of my adult life.  Yea, right.  I would not wish this on anyone.

Why not retire today (if you hate your job)!  I propose to folks that they should not put off retirement from jobs where they are unhappy.  When people are dissatisfied with their jobs, they suffer, their company, friends and family also suffer.  Unbelievably, people even get killed over job dissatisfaction.

There is an interesting irony in our American culture.  We publicize and encourage people to follow their dreams in this land of opportunity.  On the other hand, our culture also encourages people to focus on the day when they don’t have to do what they supposedly like to do anymore.  

An ideal situation for many folks is to follow a path that allows them to live out their lives in a way that supports their passion.  From people who love to lay brick to those who put out fires to those who buy and sell companies, a common denominator of their happiness is that their work is their passion.  I am sure you have heard the saying, “love to work at work you love”.

What a country!

If you bought sparklers for your July 4th celebration, you should light one up tonight.  Either celebrate the fact that you are free from job dissatisfaction or make today your Independence Day!  Perhaps one day you can look back and see the foresight you once had to enjoy the great freedom this land has to offer.  What a finale!

Written by Pat Perry
President, ERC 

Well the Presidential hopefuls are now in full stride promising us everything without any concrete plans on how they are going to produce these “miracles” once elected.  The one that gives me the biggest smile is their perspectives on health care.  The candidates blame rising healthcare costs on the usual suspects - hospitals, physicians, insurance carriers and “the system” in general.

No doubt many aspects contribute to the “witches brew” known as healthcare costs.  But let’s not forget the consumers.  We need to share part of the blame.  Overutilization of health insurance programs including prescriptions are the main drivers pushing affordable health care to new limits.  Have a pain…take a pill.  Feel down…take a pill.  Need a new heart…get it replaced or just fix the hoses.

The list goes on and on and on.

There are countless instances where prescriptions, surgery and doctor visits would be unnecessary if we took some responsibility for taking care of ourselves and knowing how to effectively utilize health insurance and the healthcare system.

Healthy lifestyle behaviors are just now beginning to get back into vogue in America - at least according to industry publications.  I hope so, as we need to start reversing many of the trends (we caused) leading to the upward spiraling healthcare costs.  Good diet, regular exercise and an annual checkup go a long way to prevent a lot of bad stuff happening to our bodies. 

Healthcare delivery and access in America is a complicated matter.  The Presidential candidates want us to believe they all have a cure.  Don’t let them kid you - they do not. 

There is need for systemic change to the system, and over time refinement will occur - at least that’s what history teaches us about capitalism, market forces and our country.  We can make things better and we will.

But instead of relying on some politician who is trying desperately to win you over before November, consider making your own promise to yourself that today is the start of your positive contribution to the long term health care solution.  Now that is a “claim” worth incurring.

Written by Pat Perry
President, ERC   

I remember taking a walk at about 6 pm on September 11^th, 2001 attempting to digest what had happened to our country that day.  I remember looking up into the sky and recognizing that there was not an aircraft to be seen.  I remember thinking that America, for at least a few days, was going to be shut down.

I was particularly struck with the thought of all those lives lost in the Twin Towers. Like many of us, I assume that before the attacks they were beginning their daily routines; getting coffee, talking about the Monday Night Football Game, preparing for a big presentation, etc.  Just normal people going about their lives - trying to do the right thing.

Little did they know that they said goodbye to their loved ones in the morning for the last time.  Was it a loving embrace or a glancing kiss as they ran out the door hustling to work?  Did they provide a hug to their kids that would last a lifetime or just yell to them that they better get going or they would be late for school?

Though it has been six years since the terrorist attacks on our nation, I believe that many Americans have not forgotten those that lost their lives.  I also believe that beyond expanding our perspectives on what is going on in the world, many have stepped back and perhaps re-assessed their balance between work and family.

My guess is that many, many people have changed the pace of their daily lives to enjoy the moments with their friends and family.  Work is important, but perhaps for some its placement amongst their priorities has been repositioned.

It is interesting that we remember those people for the lives they lived and family members they left behind and not for the work they performed or did not complete.

There are a ton of lessons learned from 9/11.  One of those is that morning hugs and goodbyes are pretty darn important.