Table Of Content

2004 January 2005 ae itorial Index Covering January-December 2004 Issues HRfocus Month:Page Month:Page Benefits ™ House blocks options expensing M@ASUFE .............ccccceseceeseeeeseeeees 9:12 401(k) plan advice: Some is better than None ..............cceceeeseeeee 8:12 How are employees investing in 401(k)S? .......ceccesessecsececeseeseeseeeee 2:12 Average 401(k) plan account balances grew last year How employers are trying to control health-care costs—again.......... 6:7 Balance insourcing and outsourcing of benefits administration ...... 5:12 How HR is addressing domestic partner benefits ................ccccceees 7:$1 Benefits are better at large COMPANIES .............csseesceseestesteseeneentees 1:12 How to encourage generic drug USAGE .............eccecsecseceeseceeeseenes . 12:12 Benefits cost growth hits a 20-year high Law creates health SAVINGS ACCOUNTS .............ceceesessecseseesseeecsesteneens 1:12 Change your culture and lower your benefits costs The Medicare Act: HSAs and more ...........ccccccccsessessecsessesseceeesesecseeees 2:1 Consumer-directed health care plan enrollment grows ..............+. 9 7 More employer plans cover Contraceptives ............cccccecseseesesseseeeeees 9:12 Dealing with the implications of the mutual funds scandal................ 3:6 Multiple employer initiatives: Working for “better” health care ........ Eh Despite rising health-care costs, few companies have cut benefits ..... 9:3 New report on how to cut health-care COStS ...........ccccccsecseseseseeseens 4:12 Do cash balance plans actually boost COStS? ..........ccccsecceseceeseeseees 7:12 Periodic checkup: Consumer directed health plans DOL releases final COBRA notice rule... ceeeeesteseeseeneeeeeens 9:12 Questions and answers about domestic partner benefits ............... 7:82 DOL says ERISA will not cover HSAS .............seesessescecseesentestentenees 7:12 Retirement investment advice is more available Domestic partner benefits reSOUFCeS .............ccceseesecseeestsseeseeeeteeee 7:83 Retirement savings plan guide available ..............c.ccscseseeeseenee 3:12 Drug spending rises faster than other health-care costs ................ 3:12 ‘TRIG! FOTLETY OF WOTTITIS DIAS... .sssansssessssssasszesonssscossnsacscessscavonsenessions 41 EEOC okays age bias exemption for retiree health plans .............. 7:12 Supreme Court nixes retirement plan amendment ...............:cccc0ee0 8:2 Eldercare policies: Scarce but needed ............ccccccccessesessesesteseeeseens 4:12 Ten ways to get the most from self-service Employees take more STD, LTD, FMLA leave ...........ceeeeceseeseeeees 1:12 Using weight management programs to cut health-care costs ....... 5:10 FASB reaffirms plan for options expensing Why HR should encourage employees to take vacations.................. 8:7 Final rule issued on ERISA safe harbor rollover distributions 11:2 Workers aren't very worried about mutual fund scandals ................. 5:8 Guidance released to help with HSAS ..........c.ccccccesessesesseseeeeeseenees 6:12 Health-care cost increases expected to slow slightly in '04............. 2:12 Health-care cost increases to slow How one midsize employer cut costs and improved service by Health-care costs rose 11.2% from spring ‘03 to '04 coo anaoas dsgaapdeatoaymsdeonaraaietostaarsdoteaesreanaieictond 4 | Hospital-care costs are up; but drug spending sIOWS ..............0 8:12 How Sears is meeting the competition Nead-ON «00... cece 4:3 NOW! 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Date Signature Copy and Subscriber Services send to: HRfocus Address 3 Park Avenue, 30th Floor New York, NY 10016-5902 City/State/Zip Fax: 212-564-0465 / Phone: 212-244-0360 E-mail: [email protected] HRfocus January 2005 Month:Page Month:Page How two HR professionals help sustain their companies’ Benefits cost growth hits a 20-year high business strategies 12: Best practices for cutting payroll EXPENSES .....e.eec .ee.ece.ee.ee.ere.ee e 4:10 A “marriage” of HR and finance yields benefits «0.0.0... eceeeeeeeeee 9:7 Change your culture and lower your benefits costs A succession planning model that can work for YOU ...........cccseeeee 30 Companies cut salaries, hiring, benefits to pay for health care 12:8 Despite rising health-care costs, few companies have Compensation ; 1s S| Sea ee ann Ss gee aE fy aiken ee oma Te 9:3 Answers to your most pressing pay QUESTIONS ............ tsetse: 1 Financial performance is higher at companies with more PETRI HANONS Ss. cucs. aren io rodeo ena aatamenivened 3:8 Companies cut salaries, hiring, benefits to pay for health care 12:8 Focusing on productivity and costs makes a business case Congress challenges new overtime rule MOTIONNC G core scsescoteseecestoceecstCeorvnetsqs craete imteesttearins 4:8 Formulas to help with “grossing Up” WaQES ..............cseeceseeeeseseeeeees 12:7 Formulas to help with “grossing up” wages Gender pay equity: Some gains made Health-care cost increases expected to slow slightly in 04 How employers plan to pay for future growth Health-care cost increases to slow How to avoid “fallout” from pay COMPFeSSION .............cseeeseeseeteneees 11:3 Health-care costs rose 11.2% from spring '03 to ’04 How to keep a lid on compensation costs Hospital-care costs are up; but drug spending slows ..................0. 8:12 How your peers are coping with their biggest pay problems ............ 2S How to encourage generic drug usage Little change seen for 2005 pay raises HR moves to adopt business planning for strategic success. ............ 3:9 Living-wage laws have little impact on government budgets .......... 2:12 An HRIS “shopping list” for the NEW YEaF ou... eesseseeseesseneeeeeeseenees 10 PAGBE TNS PLIGG TRU AY TMS coco ssccscicscsscussn dacseeistsecanestcnctansdastuseoss 6:1 How employers are trying to control health-care costs—again......... 6:7 Moderate pay raises projected for 2005 How to conirol state Ul expenses New employer rewards for low-wage WOFKETS ............cceseseseeee 10:12 How to keep a lid on compensation COStS ..........cccccseseseseseeeeseeseees So Pay is starting to rebound for certain positions in HR Measurement musts to cope with “metrics mania” ..............ccceeee 6:5 Paycards are the wave of the future 00.0... eceesseseeseteseeteseeee 8:12 New reference guide for HR department operations and Reasons for gender pay gap still UNClear oo... eeeeteetestesesseeeenee 212 COST COMIN sci fis 22s catesste eee docapezertense eae roeeleeteeeaaeinesd 1:9 Still waiting for the new FLSA: The latest .....c0ec e.ces.ese.eee.see.eseceee s 5:2 A simpler way to determine the ROI of talent management ERI Sr Re ee ee en 4:7 Three approaches to adding Value ..................-sscssssescssssscssessesseseerees Lie Wage and salary administration is HR’s responsibility at Using weight management programs to cut health care costs ....... 5:10 INI aoe SA seivensoctitiecinccatesipioaruaals 4:12 Wanted: More and better HR metrics and benchmarks .............:+ 4:8 Wage increases may rise early next year Will cost-cutting initiatives finally start to ease in 04? wee 2:9 Will employees perform better if you reward them? ...............000 12:10 With compensation, size apparently does matter oo... eee O12 Government Agencies/Regulation Diversity/Discrimination BUSH SIGNS FORA UDOAIS MILO IAW: .....05ccorsssersssusoccasosesasonecseoessusisacenvs 12 Congress challenges new overtime rule Bias claims rise; big settlement is a cautionary tale «0.0... eee 9:2 DOL priorities and goals for 2004 Both genders have similar executive career aspirations DOL releases final COBRA notice rule California domestic partner law could affect other states ................. 1:2 DOL says ERISA will not cover HSAS ..........:cccsesssseesessessesesteseesees tate Dealing with religion in the Workplace .............::sccsssseseseeeeeeees 1033 Final rule issued on ERISA safe harbor roliover distributions Domestic partner benefits reSOUFCES ............cceecessessesesseeseseeseeseeses 7:83 Guidance released to help with HSAS ............cccscscssesecseseseeseseseseees 6:12 EEOC commissioner says that color bias charges are rising ........... 6:2 House blocks options expensing MEASUFE .............cccseccseseeeseetesees 9:12 Employer's action after sex bias case alters damages award Jobs law alters taxes for deferred compensation and Employers who lead in diversity ............c.ccssssssessessesssseessesestestesceneees 6:9 other benefits Financial performance is higher at companies with more Law creates health Savings ACCOUNTS .............cccsesecesectsseseeseseeenees Vit2 ce 6 TOE OE ey Sa OE RE ese? 3:8 Mental health parity law to be extended Gender pay equity: Some gains made Online applicant EEO tracking is clarified at last... cesses 6:2 How HR is addressing domestic partner benefits .................csce 7:31 Questions and answers about domestic partner benefits ............... 7:82 Reasons for gender pay gap still UNClear oo... eeeeseesesseeseeeseesee 2:12 Elite lofete) <A eatol cas The 2004 HR Strategic HR Briefing ..............s:sscscsssssssscssessssssessseseees 7:9 Supreme Court denies age bias on retiree coverage claim .............. 4:2 “Domestic Partner Benefits RESOUFCES” ...........c.ccessecsessesseesesneeneeees 7:83 Wachovia to settle a sex bias claim for $5.5 million “Flexible Work Options Resources” "TWMEAIAGS PMNS occas se gf ade sooo cha setae decctonentapaseasGetbesspcoveteatiod 4:82 The HR Department Benchmarks and Analysis 2004 How a new sentencing amendment affects corporate ethics ............ We “HR Professionals’ Satisfaction RESOUrCES” .............ccccsceseeseeeeeees 1:$1 What role should HR play in corporate ethics? ............cccceeeseeseeee 1:3 Managing 401(k) Plan Costs & Fees Reference Guide ................. 3:12 Managing HR Department Costs & Operations Reference Financial Management CTP 2 17 |A EN RE oe ME a Te REST DY Ae ee ane 1:9 Aligning business and HR ODj@CtiVES ............ccssescssesseeseesesseeseeseesees 3:1 SHRM, Harvard Business School Press will publish [2] HRfocus January 2005 Month:Page Month:Page PeUrsa tedC ARMENO S fas Saat o eas capa cus plc caeckesvs dacs Chea dac kee 2:9 Mental heaith parity law to be extended Winning With New Employee Orientation More companies are detecting fraud ... and acting against it ........... 1:9 New FCRA section has gone into effect No coworkers at investigations for nonunion workers ..............es000+. 9:2 Have you upgraded your retention plan yet? ..........cccccsecseseeseeesees 7:6 One in four private companies has been sued by its employees...... 8:2 FUPIFVE) QING TAVOTIS CVO TEV VUNG 0...s cncsesasscsnesessossdassecvenccecsssocessadsassusoca 9:8 “Routine temps” may be employees under FMLA requirements .... 10:2 Hiring expectec to remain steady; layoffs fall sharply Second Circuit says that “interacting with others” is a major FUCK FITETVOU PORCH UIINEENCS: SIS y cases cscascvsescieecescevessssssosteasdesesceusnosscsveesnise n 2:8 life activity The hot jobs of 2004: HR director is near the top! 0.0.0... cece: 1:9 Seeking accommodation under ADA is “protected” ............ceccecsesees 3:2 FIOW 10: COMMON SIBIS UU GXDGNSES coo. ccnsccccessccssssnstecessscseseeacscessnseses 8:9 Some ADA requests for accommodation are hard to spot................ 2:2 Still waiting for the new FLSA: The latest ..........0...ccccsecssseccsseecsseeeseees 5:2 How to do background checks properly ..........ccccccccsessesesseeseeseeneseens 8:11 How to get “buy-in” from the newest generation of employees Supreme Court denies age bias on retiree coverage claim HR proceeds with cautious optimism on hiring ............ceeeeeeeeees 4:$1 Supreme Court nixes retirement plan amendment .........0.ccccccceeeeeee 8:2 Job offshoring will increase quickly over the next two years............. 8:8 Timeliness is key in harassment complaints ..............cccceccesesseeseeseeees 6:2 Jobless rate drops, yet few jobs are added to payrolls .............c0. 3:8 STEEer e WGf emRU O B23 2253s sic acedson consisstbeainncadocramnseese e 3:2 Jobs for HR professionals rose in first quarter of 2004 «0.0.0.0... 7:9 Utah: The right to bar guns trumps workers’ right to bear arms...... 10:2 Jobs increase, unemployment stays unchanged in May: BLG........... 8:8 Wachovia io settle a sex bias claim for $5.5 million Latest data show employment outlook continues to improve ........... 6:8 Wal-Mart begins background checks Look before you downsize, or suffer the consequences ................+4. 9:9 Whistleblower claims increasing this year ...............sccscecsecsesseeseeseees 9:2 New national employment indicator debuts this month Why more employers don’t use Mediation ...........cccessesseseeseesesneees 2:2 New surveys: Companies will start to increase hiring ..............cc0c0 2:8 News from the hiring front: Jobs are starting to return... 5:8 Management/Leadership ee Online applicant EEO tracking is clarified at last 0.0.0... cece 6:2 Act like a “consultant” to be a better HR professional Payroll employment and CEO confidence are rising ............:s0 7:8 Aligning business and HR Objectives ............cccccseccsecsesseesseesecseesneenes 3:1 The pros and cons of Online recruiting ..........c.ceeccesessessessestesteseeses 4:S2 re HR professionals strategic? SHRM counts the ways The recovery has begun: Hiring is rising and unemployment dips ... 1:8 Are you inadvertently sabotaging your leadership efforts? ............... a “FRECHE TONY WHI OR GIGG.<-.cicisesesoossussossssossestsvesscoosecnessasvaszeuses 4:$3 Are you ready for Sarbanes-Oxley? ............cccccssessessecsecsecssesssecseenes 9:1 “WOR VIENS:S RcAIATRIOBSIGS COED COCR FRSON 5s ccacscai cs sacstbs las castuscessucnncetssoceenscsnsavs 9:8 The best policies now: Less “spin” and more honesty ................0000+. 4:4 Time to shift your focus to keeping top employees ................cc 1:11 Change management: How to teach it, how to control it... 8:3 Time to start focusing on attracting older WorkeTs ...........c.ccccceeeseeee 2:13 Conquering the strategy vs. financial business challenge ................ 9:5 Using behavioral interviewing to help you hire the best of Few measure success of HR and benefits communications ............ 8:9 RDeSARReR ae let cece Cee arg orca asa ces eals solani vocnscuasiebetes 8:5 How HR can help make their organizations “great” Wal-Mart begins background checks How to succeed at succession plans Why you should update your background CheCKS ..........c.ceeeeeeees 2:11 How two HR professionals help sustain their companies’ business strategies Legal Issues/Cases HR information system trends Are you ready for Sarbanes-Oxley? ............scccseessesecsesseesneeserneesnee 9:1 HR leads in identifying strategic opportunities and outsourcing Bias claims rise; big settlement is a cautionary tale... eee 9:2 other functions Bush signs FCRA update into law .............::ssscssssssecsecssssesseseeseees 1:2 HR moves to adopt business planning for strategic success............ 3:9 California domestic partner law could affect other states ................. i6? Leadership: A peth to HR career Satisfaction ............ccccseeseeseeeeee 1:S2 Communication is key to cutting post-layoff ClaiMS «0.0.0... eee 22 A “marriage” of HR and finance yields benefits Dealing with the implications of the mutuai funds scandal................ 3:6 New HR strategy book available 0.0.0.0... csceseeseesecseeestenteseeneenen 7:9 Disclosure on HR compliance audits ............cceseseeseeestssesteseeteeeeees 4:2 FPV AMINMIINE DC 0 CHUNG ses ro 2o secs ness aces cinancsn cas essepa dus cnasoev av nn cunbtscatae ot Domestic violence: Workplace probleMs ..............ccceseeseesecteseeteeeens 7:2 Succession management: Much talk, but not enough Drug tests survive challenges in COUFt............ccsesesesteseeseeesteseeneees V2 SHANI We ee sa tp po gceas pana vide as caaec dnsyornaiSeedsavtspsavenseoeent 9:9 EEOC commissioner says that color bias charges are rising ........... 6:2 Three approaches to Adding VaIUC ............ cece ceseesessecessestesnestenesneenee 7:1 EEOC okays age bias exemption for retiree health plans .............. 7:12 TUNG TOD) CRANENIIES TOP FES OWE <n oi.-ssinsscccescessassesscaecancassssosesssaunsseans 8:8 Electronic security rules: The next privacy challenge ...............c0 5:2 ‘TPVGE BGA TET ISG: TO, SON a iccccsescstscosscntssanecnscseensrsnddesainennscateansees 1:1 Two attractive advanced HR degrees: MBA or HR master's ............ 2:9 E-mail subpoena risks grow: Do you have a retention policy? ....... 10:9 Employer's action after sex bias case alters damages award Variety and challenges spice up life for HR professionals How a new sentencing amendment affects corporate ethics. ............ Vays WUT VGHEG INES RENAE TEE TESS cna 2acocctccskcaceseusaseccsadesssessnconoouecacatenduaaioens 10:1 How employers are coping with the new FairPay law What role should HR play in corporate ethics? ..........c.cceeeeeeseeeeeee ta How to do background checks properly ..........cscscssesteseseeseeneeeees 8:14 What to do now to protect employees from identity theft An incorrect answer brings no fiduciary responsibility ................ 8:2 The Medicare Act: HSAS And MOF ..........essessessessesssesccesseeseeseessesees 2:1 GEE TS FESAS: Fate DAV UNOS: i. scocdccssessussecenccsviesstessesissnesiorsesnstcscdens 6:1 Balance insourcing and outsourcing of benefits administration ...... 5:12 January 2005 Month:Page Month:Page How one midsize employer cut costs and improved service by Workplace illness prevention tactics from research studies ............. 5:9 RINNE -aciscctiaeccontnsidciesece CO Ene eae ee rs f HR leads in identifying strategic opportunities and outsourcing Safety/Security other functions Focusing on productivity and costs makes a business case Job offshoring will increase quickly over the next two years............. 8:8 FOF QIQOVIONTIGS <0 ss0ssc0sssssbsteneterr naanseehreees etegrpmee cheeenaee e ee4 :8 Organizations that outsource HR plan to continue doing so ............. 78 How to get the best results from your safety programs...............+ 9:14 QVGISERS CUASOUNCHNG COMMIUGS .oi.s.s...scsccssecsassscsecsssessecnsrssssenssescectes 3:9 NSC abandons efforts behind voluntary ergonomics standard ........ 2:9 Pitfalls to avoid if your company outsources payroll Prevent personnel changes from hurting health and PRISMS WINDS oc sa co cs eosa el ioeesposaes eosinb cdincosvineescnasccbanoasagses 5:1 safety programs Yes, outsourcing cuts costs, but that’s not the main goal ................. 9:8 Utah: The right to bar guns trumps workers’ right to bear arms Why you should update your background CheCKS ...........ceceseeeeeee 2:11 Performance Management Workplace Safety 1S iip rovang ioccisi sc. <.ccsssctevsccacsstbscsvsseusepeen cocazereereaees 3:9 Enhancing employee engagement Get the most from teleworkers Special Reports ' Performance management plans perform badly, U.S. DOMESHC PANIVGT GHOTIONES -..2c5<ictscosccascosorcsscesscscducsscccnestaeteiensneee e7 :S1 I an rn ee 6:8 Flexible Work Options Using better process management will save more money PANG siicis asses caceetiniocstens aNd oe Reet eaie eee ee 4:31 IY NING coi A ccccsarcccsce peti ie Geere cena 6:8 HR ‘Professionals’ Satistactony ass iis.c.csdisccassessccoscanacneshppmeneeeed 1:S1 Wanted: More and better HR metrics and benchmarks ...............00. 4:8 Why HR professionals are worried about forced rankings ianitelte gy Wiil employees perform better if you reward them? E-mail subpoena risks grow: Do you have a retention policy? ....... 10:9 Exclusive panel discussion: Tips and trends in HRIS .............eee 5:6 Personnel Management How HR can help fight e-mail spam 15% of workers telework at least one day per WeeK ............ cece 5:9 How HRIS is transforming the workplace—and HR's role .............. 3:10 The best policies now: Less “spin” and more honesty ................06 4:4 HR and technology: Now mainstream ..........ceeeseseseseseenseneeseenes 6:9 Boih genders have similar executive career aspirations HR information system trends Employment numbers rise for September; unemployment An HRIS “shopping list” for the NEW YO€P ou... scescesseeseestestesneeneeneens 1:5 unchanged Is it time to move to a new generation of corporate portals? ............ 8:8 Enhancing employee engagement Ten ways to get the most from self-service Few measure success of HR and benefits communications ............ 8:9 Flexibility has become a top priority for today’s workers ...............04. 7:9 Flexible work grows as a work/life solution The ASTD’s training trends for the changing marketplace ............... 4:9 Flexible work options resources Calculating the value of leadership training ............c.sseseseeeeeene Zo Here’s how to “hang up” on cell phone use at WOFK .............eceseee 11:8 Despite economy, companies spent more on training in 02 ............ 2:8 Highly engaged employees lead their employers to faster How to develop cheap, quick, and easy e-learning programs .......... 7:3 ST ates pases sexcessectnat cnc verncoetcakoustnc eo raters Soest eeateseert eee 7:8 Update employee orientations with new ASTD publications How a talent management plan can anchor your company’s Will employees perform better if you reward them? ............csse0 12:10 future How companies are dealing with workplace body art issues............ 4:9 How to get “buy-in” from the newest generation of employees Fewer work stoppages in 03, but more workdays were lost ............ 5:9 How to succeed at succession plans Health benefits and the bottom line star in union negotiations ......... 3:8 Measurement musts to cope with “metrics mania’ ..........ccccceeseee 6:5 How bias patterns could lead to UNION OFgANIZING ............eeseseseeees 2:8 New employer rewards for low-wage workers No coworkers at investigations for nonunion workef .............+sse0 9:2 Research finds management skills lacking among managers Number of union elections fell in 2003; win rates rose for and execs SOVEM VON siicsssnsscezsdpceesieideeoahnec esed ageasssatcnnavandcnsetee see e 8:9 A simpler way to determine the ROI of talent management Union elections fell in 2003, but win rates continue to rise A succession planning model that can work for yOu ..............s:s0s0e00 30 Telework: The star of flexible work options Time to shift your focus to keeping top employees .................00 1:11 Flexible work grows as a work/life solution TENE DR TON I aia scckacsccaeacjennastancetonsacpacsacceosaposicctnes 1 Flexible work options resources Want employee input? Just ASK 0.0.00... cssscssssessessssssessesesseeseeseeees 6:9 The PER: OF WOPKIMIS RAINS: i. cassesccssccsscssessnscadscncthsonsceseseusnctdteccsaoy s 4:1 What do your employees want most from their managers? ............ 11:9 Telework: The star of flexible work options PUT DE GIMINT OUEST Scsckscovcssicsssckevipsenrasecdoraansinteeereoicteeeny 10:1 These six work/life qualities can improve worker performance......... 1:8 Why, exactly, do executives think good workers leave? ................... 7:9 Why HR should encourage employees to take vacations................. 8:7 Why HR professionals are worried about forced rankings o om s — — — — Tha