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The Advantage

July 2000

Volume 14, No. 1, July, 2000
Personnel Management Consulting, Training and Support Newsletter

The Management Advantage, Inc.
P.O. Box 3708, Walnut Creek, CA 94598
(925) 671-0404 - FAX: (925) 825-3930

Please Note: The Advantage is published quarterly for the benefit of our clients and friends. The information contained herein has been abridged from numerous sources and should not be construed as legal advice or opinion, and it is not a substitute for the advice of counsel.

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This Issue Is Sponsored By

Click here to go to Profiles in Diversity Journal

"Profiles In Diversity Journal is the most realistic and practical tool available today for human resource and diversity managers.
Highly Recommended."
Bill Truesdell, Author, Secrets of Affirmative Action Compliance and Before Diversity

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New OSHA 300 Log Next Year

OSHA (the Occupational Safety and Health Administration) has issued new regulations on annual reporting requirements. The old annual report, or OSHA 200 Log as we used to know it has been replaced. The new annual report is called OSHA 300A and must be posted each year from February 1 through April 30. It's not just the month of February anymore. The 300A report is an annual summary of the OSHA 300 Log on which each incident is recorded in detail throughout the year.

All of this begins on January 1, 2002. California employers are subject to penalties after that date if they don't comply with the new requirements. Those penalties are brought to you by A.B. 1127 which specifies the new record keeping requirements.

The new annual log (OSHA 300) is available in PDF format only. It must be printed and completed manually. Electronic files are not currently available from the Department of Labor. To get your copy of the PDF file, go to www.hrwebstore.com and look in the "What's New" department. You can download your personal copy of the PDF file from there. You should know that the government has supplied the document in 8.5" X 14.5" (legal-size) format rather than the standard 8.5" X 11" (letter-size).

The new log requires (in most cases) job title, date of injury, employee name, and description of injury or illness, and were the injury or illness occurred. What we used to know as the "lost time" category has been eliminated as too difficult to define and it is replaced with new categories: "death," "days away from work," and "remained at work." The final category includes job transfers or restrictions and other recordable cases. On the new form, injury and illness reporting require the same information with the exception of the final column of information that asks for classification of the incident in one of the following:

  • injury
  • musculoskeletal disorder
  • skin disorder
  • respiratory condition
  • poisoning
  • hearing loss
  • all other illnesses

Get your copy of the PDF file and be sure you know if you are subject to these new regulations or not. Here is a partial list of key Standard Industrial Classification (SIC) codes that will be subject to the new regulations:

SIC Employer Description
553 Auto & Home Supply Stores
555 Boat Dealers
556 Recreational Vehicle Dealers
571 Home Furniture & Furnishing Stores
572 Household Appliance Stores
593 Used Merchandise Stores
596 Nonstore Retailers
598 Fuel Dealers
651 Real Estate Operators & Lessors
655 Subdividers and developers
721 Laundry, Cleaning, and Garment Service
734 Services to Buildings
735 Miscellaneous Equipment Rental/Leasing
736 Personnel
833 Job Training and Related Services
836 Residential Care
842 Botanical & Zoological Gardens

In addition, the following California industries are regulated by the federal rule:

SIC Industry Description
52 Building Materials, Hardware, Garden Supply & Mobile Home Dealers
53 General Merchandise Stores
54 Food Stores
55 Automotive Dealers and Gasoline Service Stations
57 Furniture, Home Furnishings & Equipment Stores
70 Hotels, Rooming Houses, Camps & Other Lodging Places
75 Automotive Repair, Services & Garages
76 Miscellaneous Repair
781 Motion Picture Production & Allied Services
79 Amusement & Recreation Services, Except Motion Pictures
80 Health Services

Each "establishment" must maintain its own Log 300 report. According to the regulations, an establishment is a single physical location that is expected to be in existence one year or longer. That means employers with multiple locations must maintain a separate Log 300 for each location. And, the annual summary (Form 300A) must be posted at each location or the employer must meet the requirements for central recordkeeping.

CENTRAL RECORDKEEPING

Central recordkeeping is permitted only when the following criteria are met:

  • Information on any injury or illness must be transmitted from the establishment to the central location within seven days of the occurrence of a recordable case;
  • When an employee, former employee or employee personal representative requests the Log 300, the annual summary (Form 300A) or Incident Report (Form 301), the business must be able to provide it by the end of the next business day;
  • When an employee, former employee or employee personal representative requests the Log 300, the annual summary (Form 300A) or Incident Report (Form 301), the business must be able to provide it by the end of the next business day;

Terminology has also changed somewhat from the old reporting system. Some key terms in the new program are:

  • New Case: either a case in which the employee has not previously experienced the same type of recordable injury or illness affecting the same part of the body - or ? the employee had a previous case of the same type affecting the same part of the body but had recovered completely.
  • Days away from work: Regular work days not counting the day of injury or illness-causing exposure.
  • Restricted work or transfer to another job: Results when an employee is unable to perform one or more of the routine functions of the job or the employee's workday is work restricted.

REPORTING EXCEPTIONS

Only work-related injury and illness is reportable under the regulations. Therefore, non-work-related injury and illness is not reportable. Makes sense? Here are some of the exceptions that are not recordable on your new safety reports:

  • The employee is present as a member of the general public, not as an employee.
  • A non-work-related event results in symptoms that appear at work.
  • Voluntary participation in any fitness, medical or recreational activity.
  • The injury results from eating, drinking or preparing food or drink for personal consumption regardless of its source unless employer-provided food or drink is chemically or bacteriologically contaminated.
  • Personal tasks unrelated to employment performed outside of assigned work hours.
  • Intentional self-inflicted injuries or those inflicted as a result of personal grooming or self-medication for non-work-related conditions.
  • Motor vehicle injuries sustained on the employer's parking lot, access roads or during commuting to/from work.
  • Illnesses due to common cold or flu infection; more serious infections (like tuberculosis, hepatitis and legionnaire's disease) are work related if contracted at work.
  • Mental illness in the absence of a medical opinion to the contrary, is not work related.
  • Employees on travel status are considered the same as commuters and their injuries are work related only when engaged in work activities or travel en route to specific work tasks, customer contacts or similar functions.
  • Telecommuters injuries are recordable only if suffered while performing a work task for the employer.

For a complete copy of the new federal regulations, go to: OSHA Regulations and OSHA Recordkeeping. It is here you find the specific industry information you may want for your organization.

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Being a Successful Manager

Payal Nanjiani

After a 12 year stint with the company, John, the Technical Manager submitted his resignation. On his last working day, his staff looked downhearted. None of the staff members wanted John to leave. He had earned himself the title of "the best manager." His staff believed that he had "something special" that made him so amiable. They hoped that he would always be there with them.

How many of us wish that our staff would think the same way about us? Nevertheless, this is not always possible. During these challenging times, it is a Herculean task to win the hearts of your employees. Most managers prefer to follow the traditional management styles of command and control. However changing times demand a shift in the managers' attitude. How does one acquire "the best manager" title or have that "something special" quality? It is just one word ... "MANAGER."

Taking each letter, lets get into the MANAGER shoes.

  • Motivated: The leader, they say, sets the yardstick. Does it sound strange to be a manager who "sings at his work?" Remember your staff will sing the tune you hum. So sing the right tune enthusiastically. Nothing is as contagious as enthusiasm. Like it or not, you are the role model for your staff. If you feel low and listless about the job, what do you expect from your staff? Excellent results and a high productivity? So, you must be motivated at your work. How can one be self- motivated? The most important thing here is to create a "passion" for your work. If you are passionate about your work, you will always feel motivated.
  • Attitude: Your attitude determines your altitude. So have a positive disposition. Most companies today are having layoffs due to low economy. With this tensed backdrop, how do you expect your employees to work hard and give you their best results? You as a manager can help to build the confidence in your employees. Talk positive. Instead of a negative statement like "because of the economy we will be cutting down on employees," it would be better to say "though there is a depression in the economy presently, we are sure it will improve shortly. However we may need to remove a few disinterested employees." Your positive attitude will help your employees to work scrupulously through tough times.
  • Nonaligned: As a manager you have to be neutral and partial. Your decisions should be unprejudiced. Only then will your staff have confidence in you and your decisions.
  • Appreciate: Every person hired in your organization is an individual human being having his/her own identity. Place this fact at the top before you even view them as your employee. All of us have read and heard that employees are assets of the organization; they are the blood of the company, etc. Evaluate these assets. Appreciate their thoughts and treat them the way you would like to be treated. Let them know that they are of importance to the organization. In the success of the organization, your people play a major and significant role. Each one of them makes a valuable contribution, positive or negative. Show your people that you value them. "If you do not care for your employees, they will not care for your organization."
  • Goal setter: Target your goals seriously. With timely review you can have a clear vision of the end results you want to achieve. Make a systematic procedure as to how you will attain these goals. This will help you to see how far you have succeeded in accomplishing the objectives. Remember your goals should be in co-ordination with the Organizations' plan. Communicate your aims to the employees because ultimately your goals will be achieved only with their assistance.
  • Emotional Quotient: Emotions is an intense mental state that arises subjectively rather than through conscious efforts. They originate from our exposure to different situations. You, as a manager, have to maintain a high emotional quotient. For example, you may generally be an angry person, but how much of anger you control at work determines your emotional level. You have to be "people soft." Understanding your staff is of prime importance. You have to comprehend them on emotional grounds too.
  • Respond: Be a responsive manager. Be approachable by having an open-door policy. Let your staff feel free to discuss their problems with you. Let them sense that warmth. This you can do by responding to their needs. Don?t evade their talks.

Now buckle up the MANAGER shoes with the following :

M B W (Management by Wandering). Come out of the confines of your cabin and be with your staff, talk to them, show interest in them, help them. This way they will open up to you. You will know their needs and desires. This is the most the significant factor. In order to keep abreast of the changing needs, it is necessary that the employees talk to you. People will reciprocate positively when you tell them of the organizational needs. Its all a two way process.

Coach: This is a function that managers will perform in the near future. As a coach the manager is a driving force for the people. Organizations need to recognize the coaching power. It is an implement every manager needs to add to his tool kit. The necessity of this role remains the same, ... "people". HR managers have to be "people soft." As a coach he has to be the employees' best friend and guide. For this he has to be a good and patient listener. It is through his coaching skills that he will be able to retain the employees and make them feel valued and appreciated.

After waiting two weeks, Jack feels that the chances are very slim he will hear anything from ABC and essentially writes off the prospect. He feels bad and cannot understand why he was rejected.

So get going ... be a successful "MANAGER."

Payal A. Nanjiani is an HR consultant with Pearl Consultancy. She can be reached at pearlconsult@usa.net

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Third Quarter Diversity Planning

With many cultures and religions represented in our workforce these days, it is sometimes helpful to have a reminder about the celebrations that are important to people with backgrounds different from our own.

Following is a list of some dates you may find helpful in working with your employees to recognize important dates in their lives.

July 2001

DATE

  • 2 Canada Day: Known as Dominion Day until 1982, this day celebrates the confederation of upper and lower Canada into the Dominion of Canada in 1867.
  • 3 Independence Day (Algeria): Ruled by Ottoman Turks since the mid-sixteenth century and populated mainly by Arabs who introduced Islam as the country's predominant religion, Algeria became a colony of France in 1848. A war of independence from France bagan in 1954, and Algeria became independent in 1962.
  • 4 Independence Day (United States: Commemorates the day in 1776 that delegates of the Thirteen Colonies signed the Declaration of Independence announcing their separation from Great Britain and the establishment of the United States of America.
  • 10 Independence Day (Bahamas): Commemorates the Bahamas' gaining independence within the Commonwealth of Great Britain in 1973. Observed from July 3 through July 10.
  • 11 Flemish Community Holiday (Belgium): Celebrated in Flemish communities in Belgium, this day commemorates the battle in 1302 in which the Flemish declared their independence from France.
  • 14 Bastille Day (France): This celebrates the fall of the Bastille prison, marking the beginning of the French Revolution in 1789.
  • 20 Independence Day (Columbia): Beginning in 1810, Simon Bolivar led a war of independence from Spain, which ended with his victory over Spanish forces on this day in 1819. National holiday in Columbia.
  • 23 Revolution Day (Egypt): Marks the beginning of the military coup in 1952 that led to the proclamation of the Egyptian republic.
  • 24 Pioneer Day (Morman): This marks the day in 1847 that Brigham Young led other believers in the teachings of Joseph Smith, the founder of Mormonism, into the valley of the Great Salt Lake, where they would establish the center of the Church of Latter Day Saints and build Salt Lake City.
  • 25 Constitution Day (Puerto Rico): The constitution of the Commonwealth of Puerto Rico was approved in 1952 on this day, which is now commemorated each year with official government ceremonies.
  • 25 Republic Day (Tunisia): This day commemorates the end of the Tunisian monarchy and the establishment of a republic in 1957.
  • 27 Seventh Night (China): Seventh Night (Ch'i-hsi), or Weaving Maid and Herd Boy Festival, is a romantic festival based on a tale of a couple who disobeyed the chief diety and are, therefore, held in the sky as stars on either side of the Milky Way. On this night, magpies fly up from earth and join their wings to form a bridge over the Milky Way so that the lovers can meet.
  • 28 Independence Day (Peru): This two-day national holiday celebrates the final defeat of Spanish forces by Simon Bolivar in 1824.
  • 29 Tish B'Av (Jewish): Commemorates the destruction of the Jewish temple in Jerusalem in 586 B.C.E.* and again in 70 C.E.

(* B.C.E. = Before the Common Era)

August 2001

DATE

  • 1 National Day (Switzerland): Commemorates the founding in 1291 of the Swiss Confederation.
  • 4 Ghost Festival (China): Kui chieh - A special ceremony is performed in temples with offerings of food to the lonely ghosts of those who are not cared for in their family's ancestral rituals. This ritual protects the community from harm by the lonely ghosts. Celebrated in communities outside the People's Republic of China.
  • 6 Independence Day (Bolivia): Simon Bolivar, along with Jose de San Martin and Antonio Jose de Sucre, defeated the Spanish armies and declared independence on this day in 1825. Celebrated as a national holiday.
  • 6 Independence Day (Jamaica): After centuries of British rule, Jamaica achieved its independence on this day in 1962.
  • 9 National Day (Singapore): Populated by Indians, Chinese, and Malays, Singapore became independent from Malaysia in 1965.
  • 9 Women's Day (South Africa): Marks the day of the 1956 march of women in Pretoria to protest the system of passes needed to travel from one part of the country to another.
  • 10 Independence Day (Ecuador): Marks the anniversary of Ecuador's gaining independence from Spain in 1830.
  • 12 Janmashtami - Birth of Lord Krishna (Hindu): This is one of the great Hindu night festivals. Worshippers fast and go to temples to see dance dramas enacting scenes from the life of Lord Krishna, one of the incarnations of Vishnu and one of the most popular dieties in Hinduism.
  • 15 Independence Day (India): Commemorates the day in 1947 that India became a self-governing country within the British Commonwealth. Full independence came in 1950.
  • 15 Feast of the Assumption (Roman Catholic): Celebrates the belief by Roman Catholics in Mary's assumption to heaven.
  • 17 Independence Day (Indonesia): Nationalists declared Indonesia an independent nation after withdrawl of the Japanese in 1949. The Netherlands, which had ruled Indonesia, ceded sovereignty to an independent government on this day.
  • 24 Independence Day (Ukraine): On this day the Ukraine gained independence from the former Soviet Union in 1991.
  • 26 Women's Equality Day (United States): Marks the certification in 1920 of the 19th Amendment to the Constitution prohibiting discrimination in voting based on sex.
  • 30 Victory Day (Turkey): Commemorates the end of the war of independence from the Ottoman Empire in 1922.
  • 31 National Day (Malaysia): Marks the day Malaysia achieved independence from Great Britian in 1957.

September 2001 National Hispanic Heritage Month

DATE

  • 2 Independence Day (Vietnam): On this day in 1945 the Japanese surrendered, ending World War II and creating the Democratic Republic of Vietnam.
  • 2 Mid-Autumn Moon Festival (China): Chung-ch'iu ? This festival is associated with traditional moon lore. For example, girls wish upon this moon for a good husband; they play games that foretell the future of their marriages. Many people have a picnic dinner at night to enjoy the moon.
  • 3 Labor Day (Canada & the United States): Celebrated as a public holiday in the US & Canada to honor all working people. In most other countries, this celebration occurs on May 1.
  • 7 Independence Day (Brazil): On this day in 1822, the son of Portugal's king, and regent of Brazil, declared Brazil independent of Portugal and himself Emperor Pedro I. He was succeeded by his son Pedro II in 1831, who until his death in 1889 led the development of Brazil as a modern nation.
  • 9 Confucius' Death (People's Republic of China): This day honors Confucius' death. He lived from 551-479 B.C.E.
  • 11 New Year (Coptic Orthodox Christian): This day begins the year for the Coptic Orthodox Church, which follows a Julian calendar very similar to that of the Eastern Orthodox Christian Church. The Copts' religious observance often involves fasting.
  • 15 Independence Day - Central American nations: Commemorates the declaration of independence from Spain of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua in 1821.
  • 15 Respect for the Aged Day (Japan): Keiro No Hi is one of twelve public holidays in Japan and a day for paying respect to the aged and celebrating their longevity.
  • 16 Independence Day (Mexico): On September 16, 1810, in the town of Dolores, in the province of Guanajuato, a parish priest led people in taking up arms against the Spanish colonial government. This was the start of the fight for independence from 350 years of Spanish rule.
  • 18 Independence Day (Chile): Commemorates Chile's gaining independence from Spain in 1818.
  • 18 Rosh Hashanah (Jewish): Sundown begins the Jewish New Year 5762 and the Jewish month of Tishri. Rosh Hashanah signifies the beginning of the Days of Awe, a period of serious reflection about the past year and the year to come. This period lasts until Yom Kippur and is a time for asking forgiveness from both God and people, committing oneself to live a better life in the year to come.
  • 21 Independence Day (Armenia): Celebrates Armenia's reestablishment as a free republic after the collapse of the Soviet Union. A referendum was held on this day in 1991 declaring Armenia an independent Republic.
  • 23 Autumnal Equinox Day (Japan): Shubun No Hi is a public holiday to celebrate the end of summer and the beginning of the fall harvest season.
  • 23 Unification of the Kingdom (Saudi Arabia): Since the end of the seventh century, Saudi Arabia was a collection of separate kingdoms. In 1932 King Ibn Saud began unifying these kingdoms under his rule into the single nation of Saudi Arabia.
  • 25 Cabrillo Day (Portugal): Commemorates the discovery of California by Juan Rodriguez Cabrillo when he sailed into the harbor of what is now San Diego in 1542. Celebrated mostly by Portuguese on the West Coast.
  • 28 Confucius' Birthday (Republic of China - Taiwan): Celebrated as Teacher's Day in Taiwan, this date is the anniversary of the birth of Confucius, the founder of the main doctrines of Chinese philosophy, and is one of the eight national holidays observed in the Republic of China. Confucius is revered by all Chinese as the "Teacher of All Generations." Colorful rites are performed at all Confucian temples on this day.
  • 30 National Farm Workers Association (Mexican American): On this date in 1962 Cesar Chavez founded a union of agricultural laborers, most of them Mexican and Mexican American migrant workers.

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The Business Case for Diversity: Where Does Disability Fit In?

Sue Clark

"Building Business Success through Diversity", "Diversity: the Competitive Edge," "Making Diversity Work for You" familiar workshop titles on diversity conference programs. However, in my experience these sessions rarely mention, let alone focus on, disability as a dimension of diversity. Maybe further down the schedule is a short workshop on "ADA Compliance." The message to participants appears to be that when it comes to disability, all that matters is to avoid litigation.

When human resource managers and diversity consultants talk about the business benefits of diversity they are usually thinking about race, ethnicity and gender. If there is a strong business case for employing a racially diverse workforce, is there an equivalent case to be made for employing a workforce that includes people with disabilities? I believe the answer is yes.

BENEFITS OF INCLUSION:

  • Businesses that broaden their recruitment methods have a wider pool of applicants from which to select the best candidates. Around 10-15% of the adult population have a disability - about the same percentage as there are African American or Latino. Businesses can?t afford to ignore the talents of such a significant proportion of the population.
  • Businesses that reduce turnover retain valuable employees and save on recruitment costs. People are more likely to leave if they feel undervalued or if they sense that their work environment is unfriendly. Morale and commitment is highest where employees know that their managers care about the people as well as the profit margin. Since most people with disabilities acquire their disability during their working life, organizations should implement policies that maximize the retention of their disabled employees.
  • Organizations that base selection decisions on the requirements of the job, rather than on irrelevant characteristics of applicants, are much more likely to hire effective people. In most cases disability has no impact on job performance and therefore should not be relevant to the interview panel. The majority of people with disabilities need no workplace accommodations; for the minority who do, there are often straightforward and cost-effective solutions.
  • Having a diverse workforce may help an organization to attract new customers and to understand its existing customers better. Businesses cannot afford to ignore customers with disabilities or their families and friends. Designing products and services with the needs of people with disabilities in mind usually means better design for everyone: the wheelchair ramp makes life easier for the parent pushing a stroller; a large print instruction manual written in plain English is easy to use by any non-technical reader.
  • Diverse teams are said to be more creative and better at problem solving than heterogeneous teams (although the evidence for this claim is actually somewhat mixed). If including team members from different ethnic backgrounds is felt to boost team performance, then presumably the same may be true for team members with disabilities too. In fact the white male team commonly cited as an example of complete homogeneity may already include people of different ages, disabilities, political views, sexual orientations, and personalities.
  • Diversity increases organizational flexibility. The process of thinking through and making job accommodations for employees with disabilities may lead to a less rigid working environment for everyone.
  • Finally, businesses that comply with civil rights legislation avoid the cost and negative publicity of discrimination lawsuits brought by employees or customers.

These arguments will sound very familiar in the context of race and gender. Why then is so little attention paid to the business reasons for improving workplace opportunities for people with disabilities? One reason is that fear of our own physical or mental limitations turn disability into a taboo subject in the workplace.

Another reason is that the "business case" approach to diversity requires us to consider differences as assets, and in general, we don't regard a disability as any kind of asset. Disability is more often viewed as a "lack" of something, an inferiority, an inconvenience. As a human resource manager, if I believe that people with disabilities lack the skills my organization needs, then I will not expect to see any benefits from encouraging more to send me their resumes. As a restaurant owner, if it doesn't occur to me that people who are blind might want to eat in my restaurant, I won't think there are business benefits in providing menus in Braille.

As a society we define certain bodies as "normal," design a world to suit their needs, and then label everyone who doesn't fit in as "disabled." The Americans with Disabilities Act requires employers to make "reasonable accommodations." Having originally designed working practices that exclude certain people, we now say that companies must remove these barriers, but only as long as it isn't too costly or disruptive for them. "You can have equality, as long as you're not too different from us."

Of course, organizations make accommodations all the time. It is expected that companies will provide chairs for their employees to sit on, even though a small proportion those in wheelchairs - already bring their own. Since some employees need to bring a large mass of metal to work with them every day, their employers make accommodations known as parking lots. Yet it becomes contentious when someone with a "disability" asks for an accommodation. For example, if I need to adjust my working hours to fit in with the schedule of the accessible transportation service, I will first have to prove I have a genuine disability sometimes no mean feat in itself - and then show that the accommodation is reasonable. My (non-disabled) coworker is allocated her space in the parking lot without a murmur.

It is not enough to install a wheelchair ramp when requested. We must also ask why the building was designed without a ramp in the first place. And we have to make sure that the next time we design a building, organize a conference, recruit a new member of staff, or serve a customer, we don't add yet more steps up to the front entrance. Disability "accommodations" provide opportunities for employers to put things right.

For many people with disabilities, the barriers are more subtle than an absence of ramps. A person with multiple chemical sensitivity must navigate a potentially harmful environment where a chance encounter with a coworker's favorite perfume can trigger a severe reaction . A person with HIV/AIDS may be taking a cocktail of drugs that leaves him feeling nauseous and tired but may be afraid of the reaction of his employer if he explains his condition. A person with obesity has to learn to deflect both verbal abuse from people on the streets and coworkers brandishing yet more articles on the latest diet craze. Attitudinal barriers are usually the hardest to overcome.

All of this may sound far removed from the business case for diversity, with its emphasis on profit margins and cost-reductions. Perhaps. But we have to consider both the financial and the social costs if organizations do not employ people with disabilities. From a financial standpoint we pay higher taxes and disability insurance premiums when people with disabilities are unable to find work. The cost from a human perspective is even greater. The challenge for human resource professionals is to use these broader perspectives on diversity to create more inclusive organizations.

Sue Clark has consulted on diversity/EEO issues in employment in both London, England and Cambridge, MA. She can be reached by E-mail at: sclark65@hotmail.com

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Domestic Partnership Benefits: The "Smart Company's" Beacon in the Quest for Talent

Rickie M. Banning, LCSW, ACSW, CEAP

Definition of Domestic Partnership Benefits (DPB)

Domestic partner benefits cover a wide array. They may include medical and dental insurance, educational and tuition reimbursement, credit union membership, relocation assistance, and proactive inclusion of partners in company events. Commonly, they are extended to the same-sex partners of gay/lesbian employees, and occasionally extend to heterosexual (unmarried) relationships, as well. Benefits packages range from full and equal coverage extended to all groups, to modified packages such as bereavement leave option, or EAP services offered to domestic partners.

Historical Perspective

Six years ago, there were less than 300 work organizations in the USA that offered DPB's. Today, the number is 3,700+, and growing steadily. According to the Human Rights Campaign project that tracks DPB, their current data includes Fortune 500 and private sector companies, public sector organizations, and universities and colleges as getting onboard in growing numbers. In addition, they cite 56 municipalities across multiple US states as offering DP Registries.

Global Trending

DPB are just one sign of a growing global trend towards social justice and equal treatment both in and out of the workplace. The US struggle for equal rights by gay and lesbian persons has extended across decades, and current global trends show the USA as a follower to other more progressive nations. Exemplary illustrations of this trending includes:

  • An increased number of multinational and US companies are implementing official policies prohibiting discrimination based on sexual orientation, along with DP benefits offerings. Notables include AT&T, Ben & Jerry's, Fleet Boston, Chase Manhattan, American Express, and Eastman Kodak.
  • Thirteen countries, including the UK, Australia, Germany, and Canada offer some form of equal rights and privileges extended to gay and lesbian persons. The USA lags far behind these countries in the social, legal, and workplace scope of similar offerings to these groups.
  • As well, social trends towards the extension of equal marriage rights to gay and lesbian persons are surfacing around the globe. In 2001, the Netherlands became the first country to extend full equal and unconditional marriage rights to the group. The US states of Hawaii, Alaska, and Vermont have all had tough legal challenges on this issue, with Vermont having made the only real stride of offering civil union rights to same-sex couples. Court challenges and resistant points continue. One current example is the "Freedom to Marry" Act being introduced by Massachusetts's legislators.
  • In the US alone, the "divide" involves 1,500+ rights and privileges extended to legally married couples (heterosexuals) that are not enjoyed by same-sex domestic partners. These privileges include inheritance rights, medical decisions and privileges for the partner, adoption issues, income tax implications, and pension benefits, just to name a few.
  • Partly as a reaction to hate crimes, and partly as a logical flow of the ongoing struggle for equal rights, prohibitions against discrimination against sexual orientation have been enacted in hundreds of US cities and counties in a growing trend towards social reform.
  • The number of US companies that offer domestic partner benefits has doubled in the past three years, according to a survey of 570 large US employers by Hewitt Associates (Lincolnshire, Ill.): 22% of organizations offer the benefits, up from 10% in 1997. Of responding companies without DPB, 35% are considering implementing them within three years.
  • The US Immigration and Naturalization Service discrimination policies against same-sex partners are being challenged in the courts, and by recent Congressional sponsorship of legislation to correct the situation. The key sticking point is US entry as it relates to residence parameters and equity with married couples. A highly organized national support group has evolved in the USA, with a NYC corporate office and city chapters to help with legal advisement, human resource and employment-related concerns, and general assistance for bi-national same-sex couples facing the immigration maze.
  • A current issue facing hr professionals is equal and fair treatment of transsexual persons in the workplace. Evidence of growing social awareness of this minority group is seen everywhere; in film, the media, online resources, legal challenges, and in dialogue in books and in the social arena. The closet is becoming undone.

The Business Case for DPB:

  • Competitive advantage
  • Employee recruitment and retention
  • Promote fairness in the workplace
  • Productivity increases from stress reduction
  • Global parity

Why Should HR Care?

Value Added: 76% of the companies surveyed by the Hewitt firm reported employee recruitment and retention as the prime driver; 30% were motivated by compliance with a nondiscrimination policy; and 17% were spurred by government regulations to implement DPB.

Hiring Incentive: The Society for Human Resource Management (SHRM) found in a survey of 279 human resource professionals from 19 US industries that DPB?s are the #1 recruitment tool for executives, and the third-ranked recruitment tool for management and line workers. DP benefits were found to be a more effective hiring incentive than telecommuting options, hiring bonuses, stock options, and 401K plans.

HR as the Company Conscience: HR "touches lives," and serves as the corporate conscience of all organizations for designing and modeling solid standards for employees. As HR leaders, our duty is to uphold equal pay for equal work by ensuring full and fair adoption of all appropriate options toward compensation parity. DPB falls in the range of "must-do" for the progressive companies. This trend calls out to all others to get onboard as the "right thing to do."

The Business Case Against:

Cost Concerns: Companies must carefully craft DPB's, considering enrollment estimates, employer tax implications (DPB under Tax Code Section 162 as a compensation expense, based on Private Letter Rulings guidelines), and separate account needs in cases where employee benefits premiums are paid from VEBA Trust (Voluntary Employee Benefit Association) accounts. Conversely, employees electing DPB must pay tax on the fair market value of the benefits elected for their partners (imputable income). Consultation with a tax attorney is advised.

Enrollment: Average enrollment for US organizations remains consistent at less than 3% of the total employee population.

Logistics: Further issues to be clarified include whether an affidavit of eligible partnership will be required, if a time requirement will be requested, if termination affidavits will be in the process for notification of relationship dissolution, and if heterosexual unmarried couples (and other alternative relationships) will be included in the mix. Some companies are reluctant to adopt DPB, due to the many unique details needing thoughtful clarification. It is also recommended that companies adopting DPB have clear non-discrimination policies in place, as this synergy is necessary for legal challenges.

Religious Barriers: A small but firm number of companies object to DPB's, and all forms of parity for gay and lesbian persons on expressed religious grounds. These companies may hold steady to their views. But, social and global progressive trending towards diversity sensitivity and inclusiveness are beckoning us all to take the next step towards the light.

Resources for More Information:

  • Worknet
    (Includes full us listing of DPB companies, plus toolkit for starting your own programs, and influencing senior management to come onboard.)
  • Immigration Rights
    (Lesbian and Gay Immigration Rights Task Force.)
  • Transsexual Issues
    (Online resource site and radio show on transsexual issues.)

Change is Contagious:

Look for it... signs of these social and workplace changes are everywhere. As this article notes, DPB's are a start, one step, in a larger theme of global justice, and social equality. The light of this change is coming out of the shadows. Even in the tiny peninsular-island town of Nahant, MA we see the evidence, when during April 2001 "Town Meeting," citizens voted in bereavement leave benefits for domestic partners (60/40 margin). A small step for humankind, and not full benefits, but a step nevertheless. HR professionals have a role to play...take the step... embrace DPB for your workplace.

Rickie M. Banning is the President/CEO of Advanced Development Associates, Inc., a global hr consulting and training firm, specializing in "Corporate Care" options for companies. She wears several professional "hats," including having served a two-year term as International Diversity Director for the Employee Assistance Professionals Association, and currently serving on SHRM?s National Diversity Committee. Contact her for information at Advanced Development.

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