Client Spotlight

The Boston Debate League was created in 2005 to help improve students’ academic achievement. The league offers a host of after-school, weekend, and summer programs to help Boston students become advocates and intellectuals. Competitive academic debate offers a powerful means of engaging students in their own education and reversing negative trends.  Debaters come from across the academic spectrum, including those who do not attend school regularly or are not thriving in the traditional classroom.  The Rev. Dr. Gregory Groover, chair of the Boston School Committee, was this year’s Taking Sides for Success honoree. The event raised over $100,000 from the community to support local debate programs.  The league’s 2012-2013 debate season began on October 19.  Click here to view a complete tournament calendar.

Combating Absenteeism

The zombie apocalypse is upon us. It’s real, and according to recent studies it costs employers billions. But the zombies aren’t taking the form of the undead rising from the grave in a quest to consume the living. Instead, they take the form of exhausted, sick, injured, or demoralized employees showing up to work yet not performing to their full potential.

That’s the conclusion of a new study out of Brigham Young University, which determined that when it comes to damage to employers, the cost ratio of presenteeism versus absenteeism is three to one.

Researchers found that presenteeism was highly correlated with outside factors, including poor health, poor eating habits, financial stress, relationship problems, and other emotional problems originating outside the company. Workers become stressed and distracted and, because they are only human, their problems spill over into the workplace.

According to its chief researcher, the study looked at more than 20,000 workers. Among its findings:

  • Those with bad diets were 66% more susceptible to presenteeism than those with healthy diets.
  • Smokers reported productivity losses 28% more often than nonsmokers.
  • Regular exercisers were 50% less likely than those who only exercised “occasionally” to succumb to presenteeism.

Contributing Factors
In addition to the normal litany of unavoidable minor issues, such as sick children at home or minor financial matters, employee problems can arise if management shuts down important stress valves:

Putting too much emphasis on attendance in workplace performance reviews
Disciplining or stigmatizing workers who call in sick on short notice
Expending managers’ valuable time “verifying” illnesses (a cost sink in itself!)

The Solution
The authors of the study concluded that the use of the cat-o’-nine-tails to improve workplace morale is probably suboptimal. Instead, they suggested some basic leadership and resourcing measures, such as helping managers and workers prioritize what is important and providing “sufficient technological support.” Other suggestions included implementing targeted wellness programs designed to address employees’ specific stressors. For example, where employees may be struggling with financial stressors, distracting them from their work, make financial-planning services available. If health issues are paramount, establish programs to help workers stop smoking, improve eating habits, and address physical and mental health issues.

Lowering presenteeism will require that employers have realistic expectations of workers, help workers prioritize, and provide sufficient technological support. Financial stress and concerns may warrant financial planning services. Health-promotion interventions aimed at improving physical and mental health also may contribute to reducing presenteeism.

Other ideas include sponsoring a workplace flu vaccination program, sending sick workers home immediately, and implementing a “no questions asked” PTO policy, as opposed to segregating sick days and personal-leave days. Leaders can also reward and encourage midline managers who are creative in allowing staffers flexible work arrangements — though care should still be taken to comply with wage and hour laws.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your business objectives, takes into account state and federal laws, and capitalizes on incentives and innovative solutions now being offered.

Update to Federal Service Contracts

The Department of Labor’s Wage and Hour Division has issued a final rule to implement Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts. This final rule will be effective once the Federal Acquisition Regulatory Council (FARC) issues regulations for the inclusion of the nondisplacement contract clause in covered federal solicitations and contracts, as required by the Executive Order.

In our last newsletter we told you that this order and final rule requires contractors and subcontractors that are awarded a federal service contract to provide the same or similar services at the same location to, in most circumstances, offer employment to the predecessor contractor’s employees in positions for which they are qualified. Successor contractors are allowed to reduce the size of the workforce and to give first preference to their current employees.

You can follow all the other provisions of this rule under the Federal Register, 29 CFR Part 9. Hopefully this rule will become finalized before year end, as it has been discussed extensively for the past four years.

Questions regarding the order may be addressed to Timothy Helm, Chief, Branch of Government Contracts Enforcement, Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210; telephone number (202) 693-0064.

ALL AGENCY MEMORANDUM NUMBER 211 Reminder

Changes to the 2012 Service Contract Act Health and Welfare Fringe Benefit rates were disclosed on June 11, 2012. The new SCA health and welfare benefits were increased to $3.71 per hour and are posted on the Wage Determination Online (www.wdol.gov) and Wage and Hour Division (WHD) (www.dol.gov/whd) websites.

The HISTORY, Solicitation/Contracts Affected and Wage Determinations for the State of Hawaii on this memorandum are basically the same as the previous memorandums issued by the Department of Labor covering this subject.

Go to www.wdol.gov and click on the Library page for a copy of this memorandum.

Remember, as in the past, do not provide your Service Contract Act employees this change until it has been modified into your contract by the Contracting Activity, which is usually on the anniversary date of your contract.

Types of Wage Determinations

In addition to the basic four types of wage determinations (Area Standard, Nonstandard, Collective Bargaining Agreements, and Contract-Specific), there have been some questions pertaining to other types of wage determinations.

Nationwide wage determinations and hourly day rate (usually for captains of vessels) wage determinations do not specify the odd or even health and welfare rates. On these you should go to the section of the wage determinations that specifies what health and welfare benefit rates apply. Those are the rates to utilize.

Questions about this should be addressed to the Contracting Activity of the Department of Labor in Washington, DC.

Service Contract Act Training Courses

The Professional Services Council (PSC) is offering its two-day Service Contract Act training in Arlington, VA, on October 31–November 1, 2012, in conjunction with the DOL and DOD panels that will be present. If interested, go to www.pscouncil.org or call PSC at 703-875-8059.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.

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