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11 years ago · by · 0 comments

Is Diversity Training Effective?

During the past decade, diversity training has become a huge industry, with many companies implementing programs aimed at helping all employees feel valued while reducing bias and unfairness. That’s the stated purpose, and it sounds great; but when you get right down to it, the reason most companies implement diversity training programs is to, hopefully, reduce liability issues including potentially costly lawsuits. And what’s more, recent studies have been indicating that most diversity training programs simply don’t work.

In fact, one study from Harvard University looked at 829 companies over three decades and found that the training resulted in “no positive effects in the average workplace.” Even worse, the researchers also found that in workplaces where diversity training is mandatory, the training “actually has negative effects on management diversity.”

The researchers noted that the very nature of diversity training forces people to think in terms of categories. In the end, employees are more likely to dehumanize people than to see them as individuals.

Mentor programs appear to be very effective, the study says. Such programs can provide everyone with connections to “higher ups,” and they are generally better accepted than training programs, possibly because they are available to everyone, not just specific groups.

“Mentor programs put aspiring managers in contact with people who can help them move up, both by offering advice and by finding them jobs,” the study authors found. “This strategy appears to work.”

The study found another good approach to ensuring diversity in the current workplace and in hiring practices is to put one person or a group of people in charge, acting as a diversity manager or task force. Managers and task forces can be effective because they focus on identifying both specific problems and remedies.

“Managers and task forces feel accountable for change, and they monitor quarterly employment data to see if their efforts are paying off. If not, it’s back to the drawing board to sketch new diversity strategies.”

The take-home message: Don’t give up on diversity programs in your company, but do spend time exploring other options that may be more effective.

 

 

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11 years ago · by · 0 comments

Five Employee Safety Tips

Best practices and laws, policies and rules are important foundations for building a workplace safety program. But, they are not nearly enough. A truly safe working environment is then management and line employees share in the workplace safety effort. Employees who name a hazard should never feel threatened or that he or she will be subject to recriminations. Words of praise are the least for alert people and tickets to a sporting event, movie, or show let them know their alertness counts. Following are some common issues found in most workplaces that management and floor employees should look for.

1. Identify Hazardous Places
When employees first start, assign a person to take them on a tour. Point any places that are hazardous, even if proper signage is up. Explain to new employees the nature of the hazard and if they need protective clothing in the area.

2. Instruct employees in a way to maintain the right posture to protect their backs.
People, who work at desks, keep your shoulders lined up with your hip to avert back issues. Any worker who has to pick something up needs to know the correct position of the back to avoid injury. So do not stoop or twist. Whenever possible use ergonomically designed furniture and equipment to protect your back. Ergonomic equipment and furniture help keep your muscular-skeletal system in the proper place.

3. Report unsafe conditions.
The span of management keeps getting larger. Managers have more difficulty walking through their areas to make sure all areas are safe. They are dependent on their workers to help find unsafe conditions. Safety is everyone’s job — as soon as you suspect a condition is not safe report it to your manager.

4. Be aware of your surroundings.
If you work on a factory floor, in the fulfillment center or a warehouse be aware of your surroundings. Forklifts are racing around keeping to their schedules and intersections are especially dangerous. Walk the floor with the same caution, you do when crossing the street at a busy intersection.

5. Dress for safety.
Always make sure you have the proper safety equipment on. Hard hats, goggles, ear protection, and other safety items significantly cut the amount of employee injuries and illnesses.

Managers who share these and other safety tips with their team show that they care about their employees past “legislative directions.” This caring attitude goes a long way towards employee safety awareness, less on the job injuries, and higher productivity thanks to improved morale.

 

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11 years ago · by · 0 comments

Editor’s Column: Frustrated with HR People

I find myself frustrated because companies and those in the HR Function won’t allow me to help them as much as I can. I’m frustrated when I see the trivial feud of HR Executives truly trying to make a difference and be excellent. I’m frustrated when I speak and exhibit at a conference and the attendees are more interested in getting their CEU credits and whatever you’re handing out at your exhibit than they are truly learning things from the speakers or the vendors. I am frustrated because HR Executives as a group have not exhibited the dedication, vision, nerve, defiance, edginess, etc. that I like to be associated with. And unfortunately, we have relegated the concept of relationships at our companies to these executives.

HR has to take it on the chin and realize that there’s good reason for the harsh criticism. They have to take it as a wakeup call and an opportunity. HR represents an incredible opportunity that few organizations or individuals are committed to. Those who are committed to the process of building human excellence will generate additional values at their companies and in their personal lives. So, there’s a choice, either you kick ass at HR and receive the rewards or you stay in your comfort zone and continue to get run over.

Perhaps the two greatest impacts on HR over the last few decades have been technology and the law. It’s gotten to a point where we can access all levels of data regarding our operations. Human Resource Management System and Human Resources Information Systems have been designed for every level of size and complexity. Technology has also been utilized to organize performance management. Managing a HRIS system is like managing information on steroids. The reality is that while many of these companies pump the time saving advantages of being able to pull various reports, few executives ever find the time or reason to pull them. As a result, the technology is utilized at its lowest common denominator.

The most drastic employment law changes in the workplace have occurred during my career. When I began my legal career in 1983 most of the law was concerning union work. Few people brought sexual harassment, discrimination, or other statutory claims. That was primarily handled by agencies such as the Federal EEOC and the California DFEH. Over the last 30 years, the amount of law that one has to know related to the HR function has easily quadrupled. Go to an HR conference today and you will see at least half of all presentations being related to compliance.

Don Phin, Esq. is VP of Strategic Business Solutions at ThinkHR, which helps companies resolve urgent workforce issues, mitigate risk and ensure HR compliance. Phin has more than three decades of experience as an HR expert, published author and speaker, and spent 17 years in employment practices litigation. For more information, visit www.ThinkHR.com.

 

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11 years ago · by · 0 comments

Directors and Officers Liability Insurance: how’s your estimating skill?

Getting the job. It’s a tough task where too much optimism can cost dearly, too little can cost receiving the bid. If too many low bids occur, who’s responsible to the stockholders?

Because the construction industry works by a bidding system rather than a negotiated contract, errors can be difficult to remedy. Leaving out the painting number on a half-million foot office building costs dearly.

Computerization of the bid process has helped and hurt. The program will not allow forgotten inputs, but people tend to believe a computer generated number.

Quality control for bids is essential for survival, both for the estimator and the executives. The estimator calculates the bid, but the executive signs the contract.

The decision to sign the contract drives the scrutiny if money is lost. Directors and officers insurance protects the executive financially when stockholders seek redress in response to a catastrophic contract.

Getting fired is the lesser issue to being sued for incompetence or fraud. The directors and officers exposure boils down to one unfortunate fact. The covered position must make decisions in real time ahead of perfect knowledge; the claimant has the benefit of hindsight.

You can protect yourself by knowing your duties as a director or officer:

1. You must act in good faith and give prudent care in your decisions.
2. You are required to be loyal to the business.
3. Disclosure: you must disclose material facts to regulators, other board members, officers, creditors,
bondholders, stockholders, and other potential investors.

Implement a policy of redundant checks on all contracts, bids, offerings, scopes of work, payments, or any other routine agreements which can lull people into complacency. Routine hides defective work well.

Spot check bid numbers against industry averages, or have this capacity in the computer program. If you’ve been in the industry awhile, check your gut instinct against the line items in the bid. If they don’t make sense, recheck. Consider every contract your responsibility, otherwise they may come back to haunt you.

 

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11 years ago · by · 0 comments

Budgeting: right size your insurance expenses

Have you ever compared premium quotes only to discover the policies had different deductibles, limits, or even a different audit basis? Confusing, isn’t it?

Premiums do not compare easily, nor do they necessarily reflect costs of your risk profile. Lower premium is not always your best bet. If it were, going without any insurance would be every company’s default position. But, uncovered risk puts companies out of business every day. So, how do you know the right amount to budget for insurance? You don’t, so budget for risk, and from that, buy insurance.

As a business owner and entrepreneur, identify and assess your risks. Uncovered liability risks, like driving vehicles or manufacturing a product, can destroy your company. Running out of postage will probably not slow things down. You prioritize and decide what liabilities you want to assume and what liabilities you want to transfer.

For example: automobile physical damage. How large is your fleet, how predictable is this loss? If you have one executive new vehicle with financing, you’re going to buy insurance to cover it; just think deductible versus premium. If you have twenty similar vehicles, say panel trucks, and the fleet is paid for, you may consider not insuring the physical damage for collision or other perils. Why? Because you’re just paying a fee to bank the money while you do the claims legwork anyway. Your drivers can reduce your risk through defensive driving techniques and not drinking, texting or using cell phones. Keep the premium, accept the risk.

How about your products in transit? Is the value in one load big enough to ruin your company financially? Or do you ship relatively small amounts by common carriers. The former requires insurance, the latter, self-retain the loss.

Okay, you’ve thought through your process. Now, in plain English, tell the agents what you want covered. Employee safety and health, if my products cause harm, if my car hits someone, this type of list. Then, how much per incident are you willing to pay? First $1000 of any loss, that type of decision. Now, choose a number or some percentage of your annual gross and limit all claims to that amount; the most you’re willing to pay for all claims, including insurance premiums. Let the agents design around these parameters and compare these programs.

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11 years ago · by · 0 comments

Are You in Compliance with Commercial Vehicle Regulations?

Many businesses use vans, trucks and buses to move their customers, products or equipment. Depending on the size and use of those vehicles, a business and its drivers may be subject to state and federal commercial vehicle regulations. Complying with these regulations is an important part of a fleet safety program.

State and Federal Requirements

Commercial motor carriers are regulated by the states in which they operate. If these vehicles operate in interstate commerce, federal regulations also apply. In general, most states follow the Federal Motor Carrier Safety Regulations (FMCSR) or similar rules.¹

Fedeal_motor_safety_carrier_regulations_graphic
Commercial Driver’s License (CDL)

Motor carriers that operate large commercial motor vehicles, or vehicles used to transport hazardous materials, must comply with additional regulations if they operate the following types of commercial vehicles:

  • Class A – Vehicles with a gross combination weight rating of 26,001 pounds or more including a towed trailer over 10,000 pounds.
  • Class B – Single unit vehicles with a GVWR of 26,001 pounds or more (if pulling a trailer, the trailer must not exceed10,000 pounds)
  • Class C – Vehicles under 26,001 pounds used or designed to transport 16 or more passengers, including the driver, and vehicles less than 26,001 pounds required to display hazardous material placards.

Drivers of these vehicles must have a commercial driver’s license and the appropriate endorsements for the vehicles they are driving. Companies that operate these vehicles must also have a drug and alcohol testing program that meets the Department of Transportation (DOT) alcohol and controlled substances testing program requirements.

Registration Requirements

Companies that provide interstate for-hire transportation must obtain federal operating authority by filing the appropriate application with the Federal Motor Carrier Safety Administration (FMCSA). For-hire and private motor carriers must also register with the FMCSA and obtain a U.S. Department of Transportation (DOT) number. This number must be displayed on all commercial vehicles the motor carrier operates.

Organizations operating commercial motor vehicles in interstate commerce may also be required to register and pay fees under the Unified Carrier Registration Act of 2005.²

More than 30 states currently require intrastate motor carriers to obtain a U.S. DOT number as part of their commercial motor vehicle registration process. Other state registration requirements may include complying with International Fuel Tax Agreement and International Registration Plan, if a motor carrier is operating in interstate commerce.

Additional registration requirement may exist. For information about these requirements visit the Federal Motor Carrier Safety Regulations website and contact the agency in your state that regulates commercial motor vehicles.

Sources:
¹ www.fmcsa.dot.gov/
² www.ucr.in.gov/

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Scurich Insurance Services
Phone: (831) 661-5697
Fax: (831) 661-5741

Physical:
783 Rio Del Mar Blvd., Suite7,
Aptos, Ca 95003-4700

Mailing:
PO Box 1170
Watsonville, CA 95077-1170

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(831) 661-5697

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