I'm off to Atlanta this morning to talk to some employers about environmental factors impacting their unemployment costs.  Unemployment is all over the news of course, so they see what is happening on a daily basis, but do we hear the whole story on the news?

We are looking at another extension of unemployment benefits.  This extension would be funded by extending for a year a federal unemployment tax on employers that has been in place for 30 years.  Even though past benefit extensions were funded by the Federal Government, not by employers, we are kidding ourselves if we don't think employers are impacted.  I can't even begin to tell you the amount of paperwork employers receive on individuals collecting unemployment benefits.

Some states send out weekly requests for information for the entire duration of the claim.  If the current legislation passes, we would be looking at some individuals receiving 92 weeks.  Other states send out 2 forms for each claimant, both asking for similar information. 

All that paper has to be processed and responded to by someone and whether an employer uses a 3rd party administrator like TALX or does it themselves the employer is impacted.  I'm not saying that the unemployed don't deserve help during these hard economic times; I'm just saying that it would have been nice to provide a solution that didn't bury employers in paperwork.  It takes them away from their core goals of growing their business and hopefully creating jobs.  

Tammy Mullin

At a time when employers are facing higher unemployment costs due to increased benefit payouts, forced expansion of benefits for states accepting stimulus money and interest charges for necessary federal loans to name of few, the North Carolina Bar Association has issued an opinion that if it becomes binding would require employers to contract with a licensed attorney in the state of North Carolina if they wish to have representation at an unemployment hearing.

This change in essence means that employers will have to either pay more to be represented at a hearing, or skip representation altogether.  Skipping representation altogether is a bad choice for employers.  The current average cost of an unemployment claim to the employer is running about $4,500 and eligibility rules vary by state.  Without an expert at the hearing with them, the employer runs a higher risk of losing a winning case simply due to lack of knowledge.

I'm not in any position to dispute whether the NC Bar Association's opinion is valid or not.  I haven't read it and don't know the facts of the case.  What I do know is that in today's economy, employers are struggling to stay afloat.  They really can't afford to have many more legislative changes that end up costing them dollars they could be using to expand their businesses and create jobs.

Tammy Mullin

 

 

Well, it’s been awhile. I didn’t realize quite how long until a member of my team sent me an article about corporate blogging as a gentle reminder and another one point blank said, “You haven’t written since July 6th.” The fact that he knew the exact date was certainly telling.

So, I thought I better come back with some really useful information. Anyone who has ever attended an unemployment hearing for their employer knows it is really a stressful situation. I know, because I actually attended one when I worked for another company. I was nervous about the process and didn’t quite know what to expect. Someone from HR was with me, but I’m not sure they really knew what to expect either. Facing my former employee and telling my side of the story was nerve racking.

Well, I thought it might be helpful to pass along some advice from our very own resident expert, Doug Johnson, Director of Appellate Services here at TALX and here’s what he said:

Don’t ignore instructions on the Hearing Notice

• Note the date, time and whether the hearing is in-person or on the phone
• Remember to put the appointment on your calendar
• Familiarize yourself with specific state instructions and protocol in your state
• Follow all instructions exactly or else you may be precluded from participating in the hearing

Don’t be late

• Sometimes claimants and employers wait for the hearing officer, but the hearing officer might not wait for you.
• Yes, it’s a double standard, but you don’t want to get off on the wrong foot with the person who is deciding your case.

Don’t attend without an eye-witness

• The best person to testify at an unemployment insurance hearing is one with personal, first-hand knowledge.
• Although an HR representative may be able to testify about company policies and procedures, if he or she is limited by information or documentation provided by others, then his or her testimony might be given little weight.

Don’t forget to bring pertinent documentation

• The saying, “if it isn’t documented, then it didn’t happen” is very true in the unemployment insurance arena. Written policies, procedures, acknowledgments and warnings are among critical documents that can help you prove your case.
• Again, read the instructions on the Notice of Hearing. If you fail to comply with instructions, your documents may not be admitted into evidence.
  • In telephone hearings you will probably be required to mail proposed exhibits to the hearing officer and to the claimant in advance of the hearing.
  • For in-person hearings, you will probably be required to bring additional or “give-away” copies with you.

Don’t be unprepared

• A hearing officer, who conducts many hearings on a tight schedule, can become irritated or impatient if the parties are not organized and prepared.
• It’s important to collect your thoughts in advance, to know the points you’d like to make and to anticipate questions that may be asked.
• If you are fumbling through papers or are slow in providing answers to basic questions, you will not leave a good impression.

Don’t approach the process with a cavalier attitude

• Although an unemployment hearing is not a trial or a court of law, it is a “quasi-judicial” process that has definite and defined consequences for both the claimant and the employer.
• Hearing officers appreciate a serious and professional attitude on the part of the witness. Joking around or being too familiar or casual is not the best way to behave.

Don’t leave your manners at home

• Be polite and respectful of the hearing officer and the claimant. Address them formally.
• Don’t be sarcastic or argumentative.
• Don’t chew gum, say “Yep” and “Nope”
• In short, behave like your Mother taught you! You want to present yourself as a professional, confident and articulate representative of your Company.

Don’t dodge questions

• One of the most important rules to follow at a hearing is to listen to the question asked by the hearing officer, focus on that question and then answer it directly, clearly and concisely.
• Don’t “beat around the bush,” you may leave the impression of being either unprepared, evasive or untruthful.
• Short and sweet answers are best. Answer “Yes” and “No” questions with just that. If a hearing officer wants more information, he/she will ask you a follow-up question.
• If you don’t know an answer, be honest, rather than making something up.

Don’t squander opportunities

• You will be allowed to ask questions of the claimant. This is a good opportunity to bring out additional relevant information that the hearing officer has not elicited. But, here’s a word of caution: don’t ask a question if you don’t know the answer—or if there’s a possibility that you won’t like the answer.
• Think twice about asking the claimant a “Why?” question. You may get more than you bargained for.
• If given the opportunity to make a closing or summary statement, be short and sweet; hit the high points of your case; offer resolution to any discrepancies or contradictions between your position and that of the claimant, and then stop talking.

I know this was longer than a traditional blog. Bordering on more of an article really, but Doug’s a smart guy and I wish I had this advice before my case. I would have skipped that failed attempt at a joke.

If anyone out there would like to share their advice based on their experiences, we’d love to hear it.

Tammy Mullin

 

This past April, we discussed the fact that 14 states were borrowing funds from the federal government in order to pay unemployment benefits. At the present time there are 18 states who have borrowed $13,576,707,278.17. The state of MN has repaid their outstanding loan, while the states of FL, ID and RI have recently had to borrow federal dollars to keep their trust funds solvent. Currently the federal unemployment fund has $4,950,229,197 in its coffers.

There are signs that things are starting to turn around. For example, In July, employers took 2,157 mass layoff actions involving 206,791 workers. The number of mass layoff events decreased by 606 and the number of initial claims decreased by 72,440 from the prior month. These seem to be positive signs.

However the true marker for the "bottom" in the unemployment area will be when monthly new claim filings drop to below 400,000 per month. Another positive indicator that employment has begun to stabilize will be when consumer spending starts to increase.

We will continue to monitor the economic indicators and report accordingly.

Good marketing begins with strong differentiation in the market. As highlighted in Jack Trout’s Differentiate or Die and proposed by Ted Levitt, a legendary figure in the field of marketing, “… you can differentiate anything.”   Both believed that “… differentiation is one of the most strategic and tactical activities in which companies must constantly engage.”  So, if we can really differentiate anything, how would you characterize how your employment brand is differentiated?  And importantly, what do your employees say makes working for your organization really different and supports the overall organizational brand?

 

Wouldn’t it be great if your employees could be telling others that working for your organization gives them the opportunity to do what they do extremely well and love to do every day?  That view of a job is the essence of employee engagement which many organizations are trying to embrace.  I believe many employees sense that level of satisfaction in their work on a regular basis.

 

HR Organizations can certainly help promote the employment brand, but their employee’s views are much more powerful.  Current and prospective employees will always put more trust in what employees are saying about their work and the employment brand experiences. This video provides a good overview of the importance of an effective employment brand.

 

http://www.youtube.com/watch?v=af052lbuYPU

 

Given the chance, employees will be glad to share their fervor with others.  As suggested in my June 17 blog, find a good way to capture and publish these personal messages of enthusiasm and your employment brand will come more alive to both current and future employees.  The more compelling your employment brand, the easier it will be to attract and engage employees.

 

Mike Smith

 

As unemployment rates continue to rise and state trust fund balances are depleted, the state agencies must look for ways to increase unemployment tax revenues. Along with raising the tax rates, many states will increase the taxable wage base.

Looking forward to 2010, at least thirty (30) states are expected to increase their taxable wage base. Six (6) states have already passed legislation to increase the wage base and five (5) others have legislation pending. The remaining nineteen (19) have automatic escalators that trigger an increase when the trust fund balance falls below a certain level. At this point in time, it is anticipated that the trust fund balances will cause an increase to the wage base.

Of the remaining twenty three (23) states, twenty (20) of them would have to enact legislation in order to increase the wage base. Nothing has been introduced at this time. The remaining three (3) do have automatic escalators, but the trust fund balances have yet to be determined.

In an economic situation such as this, the last thing an employer needs is an increase in taxes. That however is what employers will see in at least thirty (30) states.

We are monitoring the economic situation of each state to determine the potential impact it may have on our employers

Employers who would like help in budgeting for 2010 should contact Pete Krieshok at (314) 214-7325 or by email at pkrieshok@talx.com

TALX recently held a webcast regarding the impact of the current recession on federal and state unemployment taxes and what employers should expect in 2009 and future years. TALX provided a national economic update on state unemployment trust fund solvency, individual state unemployment rates and impacts on 2009/2010 FUTA taxes. The implications of the American Recovery and Reinvestment Act of 2009 as well as insight regarding budgeting considerations for FUTA and SUI were discussed as well.

The upshot of this discussion is that currently 14 states have requested Title XII loans from the federal government. If they are not repaid within established time frames, those states will lose their FUTA credit, thus increasing employers’ federal taxes. Virtually all states have seen dramatic drops in their trust fund balances which will cause state unemployment rates to increase. Couple this with individual employer claim and benefit charge activity, many employers could be facing significantly higher unemployment tax rates in 2010 and beyond.

TALX has traditionally performed tax rate projections for interested employers. However, an even more robust forecasting tool has been created that will provide an employer with more information with which to make informed decisions regarding unemployment taxes. For more information on the enhanced forecasting tools, please contact Pete Kreishok at 314.214.7325 or via email at pkrieshok@talx.com

Employee portals 2.0 are bound to happen as HR teams begin exploiting the newest Web 2.0 technologies to deliver HR services.  Organizations clearly want to better engage employees, and the employee portal is a proven platform to deliver HR services.  And now, portals provide a terrific source for collaboration too.  To have the biggest impact with these portal upgrades, structuring the employee experience so each individual can quickly obtain just the information they need is vital to creating employee portals that appeal to all.  

 

To meet the desires of the current multi-generational workforce, more attention must be given to managing the user experience.  The user interface has now become even more valuable in addressing the distinct communication preferences of different generations.  Today’s employee portal projects demand well-executed usability testing to ensure each employee has an experience that works for them.  The best portals will offer an authentic experience that reinforces the employment brand already established.  See the article below for a more in depth look into what it means to build an authentic user experience.

 

http://exde.wordpress.com/2009/06/12/designing-authentic-experiences/

 

Leveraging the Web 2.0 outcomes, HR now has the opportunity to engage employees in a different way that allows the employee to actually participate at a new level.  To illustrate, rather than just observe, employees can actually participate which enables employees to define the make-up of an authentic experience.  For example, using popularity features on employee portals can enable employees to give their opinion instantly and find out what other employees think too.  Feedback like this was hard to come by in the past, but in the future HR can leverage these features to get timely reactions and build an authentic employee experience.

 

HR is watching closely as new web technologies gain proponents elsewhere in their organization. Marketing departments are using Twitter to appeal directly to clients.  Wikis have proven useful tools for training employees and for managing projects.  And many PR pros are using blogs to develop and manage public dialogue surrounding their organizations.  HR may find these experiments useful in determining how and when they’ll want to join in to address their own branding and communication needs.

I-9/E-Verify

By: Dave Fowler

 

Well, my speculation was way off! This one surprised me and, I'm sure, many others.

The Administration has decided to move forward with the FAR rule requiring federal contractors to use E-Verify. In a press release dated July 8, 2009 the Department of Homeland Security Secretary Janet Napolitano announced that "After a careful review, the Administration will push ahead with full implementation of the rule, which will apply to federal solicitations and contract awards Government-wide starting on September 8, 2009." Click here for the full press release. I interpret the term full implementation to indicate that the rule will be implemented as it currently stands, which includes a verification requirement for existing employees. No mention was made in the press release of the lawsuit filed against the rule by the U.S. Chamber of Commerce and others.

Read a couple interesting articles this week.

The first ISS - Unemployment reforms sweep nation due to federal recovery incentives talks about reform from the standpoint of the "incentives" states are given in the form of ARRA dollars to expand their programs so that more individuals will be eligible to collect for longer periods of time. The reform here is program expansion.

Another article I read was from the state of Indiana, New Indiana law changes unemployment rules - Fox 28: South Bend, Elkhart IN News, Weather, Sport which talks about new laws around proof of job search where recipients must "submit at least one job application each week" and new rules around acceptance of job offers which outlines when recipients are required to accept offered employment.

State funds pay out billions of dollars a year in unemployment claims due to fraud for numerous reasons. One of those reasons is due to individuals who are not actively seeking to become reemployed. Fraud is a drain on unemployment trust funds and means more taxes for state employers.

I think legislators from Indiana have the right idea, are interested in the right kind of reform and are putting in place laws that are making a permanent impact on the future of Unemployment Insurance as an insurance program. Laws and procedures which address fraud help preserve state fund balances, keep taxes down for employers which in turn I believe will help employers produce more jobs.

Tammy Mullin