Published in the Democrat & Chronicle
April 5, 2009
© 2009 Democrat & Chronicle

In 1979, Lilly Ledbetter accepted a supervisor job at Goodyear Tire and Rubber. Of the four supervisors at the plant, Ledbetter was the only female. In 1998, she received an anonymous note listing the four supervisors' salaries. Hers was $3,727 per month. Her male counterparts were being paid between $4,286 and $5,236.

Ledbetter sued and was initially awarded $3.8 million, but Goodyear appealed. By 2006, her case reached the Supreme Court, which determined that Ledbetter had not filed her complaint in a timely manner. The justices interpreted the law as providing 180 days from the date of a decision affecting compensation to file a complaint.

The flaw in this logic is that women often don't know they're being paid less than their male counterparts. Many corporations prohibit employees from discussing compensation and impose disciplinary action on those who do.

Published in the Rochester Business Journal
June 25, 2010
© HR Works, Inc.

Good talent is hard to find, hard to retain, and expensive. If your objective is to ensure new employees feel welcome, prepared and ready to make a positive impact as soon as possible, consider implementing a structured employee “onboarding” program.  

Published in the Rochester Business Journal
February 19, 2010
© HR Works, Inc.

According to the Conference Board survey, only 45 percent of U.S. workers are satisfied in their jobs. Additionally, nearly one-quarter of those surveyed anticipate leaving their jobs within the next year.

As the effects of the recession linger, employers should examine the level of job satisfaction among employees, and take steps that will help their workforce feel valued. 

Published in the Rochester Business Journal
July 3, 2009
© HR Works, Inc.

“Wanted: An easy-to-use template for conducting effective annual performance appraisals, adaptable for all industries and for employees in all departments, from middle managers to account executives to receptionists. Must be designed to minimize awkwardness, save time and result in improved employee performance. Will pay top dollar!”

Published in the Rochester Business Journal
December 28, 2008
© HR Works, Inc.

For those who manage organizations, there’s no avoiding the realities wrought by an economic climate as difficult as this one.

Those who emerge on the other side of the recession as stronger organizations will have done so by communicating exceptionally well, retaining and motivating key employees, and containing rather than slashing costs.

We’ve all heard the “definition” of insanity: Continuing to do the same thing and expecting different results. That’s why it’s always troubling to meet with a CEO who has dedicated years and long hours to building a business, only to see the company continue to struggle.

Several factors determine why one company quickly evolves from start-up to successful, profitable enterprise, while another organization languishes for years. But the most important issue may be the ways in which the CEOs and senior managers use their time.

Lisa Withers keeps the three-year strategic plan for Spectracom Corp. on her desk and looks at it weekly. From that document comes the company’s operating plans, which in turn dictate the senior team’s goals.

While Withers, president and CEO, calls herself a “compulsive planner,” her systematic focus on the bigger picture reflects what research has shown to be necessary if a CEO – and his or her organization – is to thrive in a challenging marketplace.

As baby boomers retire, and as global competition raises performance expectations for many technical and professional positions, employers increasingly struggle to find the talent necessary to grow their organizations. Meanwhile, more employees are seeking arrangements that allow a better balance with family life.

To recruit and retain such workers - typically parents, retirees, students, and those caring for aging relatives - more employers are offering work-life balance initiatives, including part-time/job-sharing, flex-time and telecommuting options.

Every individual has the right to advance his or her career, including sometimes leaving what may be an attractive position in order to take a chance on a new opportunity. Problems arise, however, when a highly placed employee resigns from a company to join a competitor or, worse, to set up a rival venture. While non-compete and non-disclosure agreements are prudent and essential, they do not always provide full legal protection for the former employer. Nor do they mitigate all of the disruption and sense of betrayal that flourish in the wake of a defection.

Pick up any day’s news, and one is likely to read about another government or business leader accused of wrongdoing. At the same time, we’ve heard a great deal recently about how Robert Wegman’s deep-rooted integrity and genuine commitment to people drove his every decision and set the stage for the grocery chain to blossom into one of the nation’s most admired employers.

While plenty of organizations talk and write about high standards, many companies’ actions are clearly falling short. Often, companies engage in formal programs such as developing written codes while paying little attention to informal ethics practices. But it’s precisely those day-to-day activities and attitudes that tell the real story about just how ethically the organization and its people behave.

As most traditional, transactional human resources work is mechanized or outsourced, HR professionals must either transform their approach or find work in another field. Demonstrating the significant economic value that cutting-edge HR approaches can deliver requires professionals to invest in understanding the enterprise and the climate in which it operates. HR must learn to speak the language of business and recognize that excellent HR strategy is whatever allows the people who work in a company to serve the organization's purposes to the greatest degree possible.

Published in the Rochester Business Journal
July 1, 2005
© HR Works, Inc.

Most entrepreneurs and business owners have an important characteristic in common: They’re high achievers who are motivated by the sheer joy of their work. As business founders move to grow their organizations, however, they must hire additional competencies, and the senior-level executives who can offer those skills will expect realistically competitive total rewards and compensation packages.

For small to mid-sized companies with limited resources, offering the exorbitant compensation deals that some large corporations favor is not an option, and small-company founders may wonder how they can possibly compete for top talent. The good news for smaller companies is that talented executives are often driven by factors other than money.

Research has shown that only 10 to 20 percent of CEO or senior manager time is spent on significant priorities linked to long-term business results. Many CEOs, lacking clarity about what they're paid to do, get caught up in low-level matters that should be delegated, outsourced or ignored. But by taking time to regularly assess their activities, CEOs can better focus their precious time on growing, rather than merely maintaining, their companies.

A recent survey of 298 HR professionals by the Society for Human Resource Professionals showed that 58 percent of organizations outsource one or more HR functions. This trend is expected to burgeon as employers continue to pursue alternative arrangements for operating most efficiently and reducing their risks.

Published in the Rochester Business Journal
January 28, 2005
© HR Works, Inc.

Over the past few decades, as the concept of empowerment has gained favor, managers have become increasingly hands-off. Repeatedly warned against "micromanagement" - a term that conjures up visions of employees being asked to account for every paper clip and restroom break - managers have aimed to hire good people and then leave them alone to do their best work.

But as managers have fled en masse from the "micro" label, is it possible the pendulum has swung too far? Have today's managers become so hands-off that they have abdicated their day-to-day responsibilities and left their key performers to flounder?

Seminars, books and articles telling us how to grow sales, improve marketing, strengthen the balance sheet, and manage one's time multiply daily. But it's much harder to find guidance in the business literature for an equally important imperative: deliberately stepping away from the workplace and taking time to reflect on new ideas, trends and ways to strengthen our companies.

Published in the Rochester Business Journal
May 30, 2003
© HR Works, Inc.

When a company finds itself in jeopardy, the quest for black-and-white simplicity takes hold. Typically, officials decide to retain the services of restructuring or “turnaround” professionals. These consultants work urgently to uncover the causes of operating and financial problems. They then devise and help implement plans for “fixing” the company – usually via operating strategies, finance and cash-flow projections.

But what about the people strategy? In times of crisis, how can the human resources function impact the company’s survival and shape its long-term health?

“Of all the things I’ve done, the most vital is coordinating the talents of those who work for us and pointing them towards a certain goal.”

-- Walt Disney (1954)

Nearly 50 years later, Arunas Chesonis espouses a similar corporate philosophy, one that treats the employees of PaeTec Communications Inc. as the most important components in the company’s formula for success.

Published in the Rochester Business Journal
Aug. 3, 2001
© HR Works, Inc.

The need for effective performance appraisal systems is indisputable. Research on performance improvement indicates that performance feedback systems succeed only one-third of the time. In another third of cases, they have no effect. Alarmingly, in the final third of cases, feedback processes actually worsen performance.

Yet 80 percent of workplaces continue to use an annual performance review. According to Tom Coens and Mary Jenkins, authors of "Abolishing Performance Appraisals," most human resource departments redesign their appraisal process every three to five years -- creating new forms, altered ratings, more bells and whistles.

Remember when companies managed their people function by assigning one staffer – usually an employee who was considered “good with people” – to inform new hires about company policies and explain a basic menu of benefits? So simple was the “personnel” function in those days that few companies sought specialized skills or training for the HR function.

How times have changed! Strategies that companies relied on for decades to manage their “people function” no longer guarantee success.

Published in the Rochester Business Journal
May 28, 2010
© HR Works, Inc.

How do employers ensure that day-to-day benefits administration is being handled correctly? Awareness and familiarity are good places to start.

In this column we’ll cover some of the basics, including ERISA, plan documents/SPDs, COBRA, domestic partner coverage and Medicare Part D.

Published in the Rochester Business Journal
May 22, 2009
© HR Works, Inc.

If your organization is tinkering with its compensation programs, you’re not alone. According to a recent WorldatWork survey of more than 1,000 U.S. companies, more than half report changing the 2009 projected salary budget increases in light of the current economic situation.

Not surprisingly, more than 90 percent of those making changes are lowering salary increase budgets, and it’s expected that the budgets will fall an average of 1.6 percentage points to 2.3 percent. The report also found that 10 percent of the surveyed organizations will freeze pay in 2009.

There is an expensive secret in benefits that is frequently overlooked but has significant impact on a company’s premium payments and ultimately its bottom line. The secret is that employee benefits costs are impacted not only by carrier rates but also directly by a company’s own internal benefits administration processes.

For companies seeking new cost-containment strategies, automating benefits administration either internally or via outsourcing can provide significant relief.

Published in the Rochester Business Journal
July 4, 2008
© HR Works, Inc.

Imagine giving a big raise to an especially valued employee, hoping to enhance her loyalty -- and then forgetting to tell her about the increase.

Inconceivable, right? Why make a generous gesture and then fail to take credit for it?

And yet many employers effectively do exactly that when they fall short of communicating to their employees the total value of their compensation, the “hidden paycheck” that consists of health premiums, pension plans, vacation days and other benefits.

Defined-contribution plans are the most popular employer-sponsored retirement plans in the United States, generating trillions of dollars in investment capital. These plans - 401(k)s and 403(b)s - provide employees with tax-efficient opportunities to save for retirement and offer employers important recruitment and retention tools.

Their effectiveness, however, is hampered by employers' understanding of the costs and risks involved, especially regarding fiduciary responsibility, and employees' ability and willingness to take charge of securing their financial futures.

A major shift has reshaped Rochester's health-insurance landscape. As the cost of premiums has skyrocketed, local employers have become more aggressive in seeking relief. Many large employers are now self-insured, and many mid-sized companies have moved into experience-rated plans. Aetna and other carriers have entered the market, introducing a new array of options.

As health insurance has become increasingly more complex and competitive, carriers have moved toward retaining brokers to bring them business. While the insured group makes the final decision regarding which insurance plans to buy, the choices can be so confusing that engaging a consultant to help with the process could be helpful - but only if the consultant/broker is acting in the employer's best interests.

Published in the Rochester Business Journal
December 30, 2005
© HR Works, Inc.

Top performers are always in demand, especially at small firms where one person can make a huge difference. Unfortunately, organizations often focus too many resources on trying to improve poor performers at the expense of developing, motivating and rewarding top talent.

Successful organizations are those whose cultures recognize and reward effort and results, typically through incentive-based or variable-compensation programs tied to the achievement of collective and/or individual goals.

Published in the Rochester Business Journal
August 26, 2005
© HR Works, Inc.

Research reveals that the quality of the communication about employee benefits can be more important than the benefits package itself in boosting employee satisfaction and retention. In companies that offer rich benefits but communicate them poorly, the turnover rate among top performers can be higher than at companies that provide the opposite -- less expensive packages, but excellent benefits communication.

Learn how your organization can enjoy a greater return on the benefit dollars spent by communicating more effectively.

Published in the Rochester Business Journal
October 1, 2004
© HR Works, Inc.

Containing out-of-control health insurance premiums is one of the major challenges facing U.S. employers. Coupled with high-deductible health plans, proponents anticipate that the consumer-driven HSA (health savings account) model will offer many advantages and will save money for employers and employees.

Published in the Rochester Business Journal
August 27, 2004
© HR Works, Inc.

Managing an employee benefits program involves many technical complexities and exposures. Particularly at smaller companies, which often do not employ a dedicated HR professional, the CFO or CEO bears the burden of continually updating his or her knowledge. To gauge your level of understanding, try this quiz.

Published in the Rochester Business Journal
July 23, 2004
© HR Works, Inc.

Successful organizations view a sound, unemotional compensation strategy as an indispensable management tool. Aware of the high costs of payroll and benefits, these companies strive to get the most out of their investment in employees.

Published in the Rochester Business Journal
June 25, 2004
© HR Works, Inc.

As internet technology has blossomed, a flood of free but often unverified information regarding salary and other compensation has generated new challenges for employers. Employees often rely on that information to develop expectations--perhaps unrealistic--about what they're worth. In response, employers must manage the tensions this information creates.

Published in the Rochester Business Journal
May 28, 2004
© HR Works, Inc.

Remember the six blind men who traveled to meet an elephant? Using their incomplete powers of observation, each firmly declared his own conclusion -- that the elephant was like a wall, a spear, a snake, a tree, a fan or a rope. None captured the true nature of the beast.

In the world of 401(k) plan costs, a similar principle applies: By using a narrow perspective to look at only one facet of a plan, an employer can easily miss the big picture - and may suffer potentially severe consequences for that ignorance.

Published in the Rochester Business Journal
June 27, 2003
© 2003 HR Works, Inc.

As a society, angst over such “injustices” quickly consumes us, and we become determined to correct these excesses promptly. Eager to appear responsive to their constituents’ concerns, lawmakers rush to add regulatory constraints that are intended to “control” executive pay.

But history consistently tells us that this is a bad –- really bad –- idea. Regulations that are meant to limit rising compensation in fact often generate precisely the opposite effect.

Published in the Rochester Business Journal
April 18, 2003
© 2003 HR Works, Inc.

The proliferation of HMOs and third-party providers has insulated consumers from the true cost of health care. Our payments are fixed based on deductibles or maximum out-of-pocket expenses. The typical patient doesn’t know whether an MRI costs $200 or $2,000. Ask employees how much an annual physical costs, and their answer is probably $10 or $15, which represents the token co-pay.

And even if we knew the price tags, what would we do differently? Few incentives are in place today to encourage an employee to control health care expenditures. Why question the need for the MRI when “someone else” is paying for it?

Published in the Rochester Business Journal
January 3, 2003
© 2003 HR Works, Inc.

Countless articles have been written about the exorbitant salaries and stock options sometimes found in corporate America. Although it is interesting to read about the executives who earn millions each year, such information has little relevance for most smaller and mid-sized companies. For typical employers, the issue is: In tough economic times, how do we leverage our limited financial resources to create and motivate top performers?

Published in the Rochester Business Journal
May 31, 2002
© HR Works, Inc.

Once the domain of executives and key employees, variable-pay plans are now being designed to work at lower levels, as organizations seek to motivate their staffs to produce better bottom-line results in tough times.

But does variable pay work? It depends on several factors, including the company’s culture and the plan’s design.

Advances in technology continue to strengthen the HR department, moving the focus away from manual processes and massive spreadsheets and toward using HR tools to drive a business’ success. But choosing the right technology and leveraging it effectively require a well-thought-out effort.

How do organizations, particularly small to mid-sized ones, assess and justify the investment in an automated HR management system (HRMS)? And, once a company has decided on an HRMS, how can it be implemented effectively so that the hoped-for return on investment will be achieved?

To thrive in today’s competitive climate, organizations must focus on managing human capital. Few can continue to devote substantial resources to labor-intensive manual HR systems that contribute nothing to the performance of their people.

As HR information systems such as employee and manager self-service software programs become more popular and affordable, even for small and medium-size companies, proactive human resource professionals are taking on farther-reaching, strategic roles in their companies.

Published in the Rochester Business Journal
April 2, 2010
© HR Works, Inc.

What is an employer’s first line of defense against a harassment or discrimination lawsuit? Employers can begin by protecting employees with a zero tolerance rule that is backed up with formal policies and complaint procedures. 

Employers also must be willing to conduct prompt, impartial and well-documented investigations when necessary and be prepared to take appropriate, corrective action when required.

Published in the Rochester Business Journal
December 25, 2009
© HR Works, Inc.

There was a time when employee handbooks, with their drab green covers and stale, often outdated policies, were considered necessary but not particularly vital to a company's well-being. That view is shifting rapidly today as advances in technology change how we work and communicate, both on and off the job.

Published in the Rochester Business Journal
December 28, 2006
© HR Works, Inc.

Do you know how to protect your business from being damaged by something that appears on the blog of an employee or ex-employee? And, should you find something that you fear will harm your company’s interests, would you know what to do? As twentysomethings move into the workplace in droves, bringing their tech savvy, employers are being forced to take a crash course in new technology applications and the “social media” revolution.

Published in the Rochester Business Journal
February 24, 2006
© HR Works, Inc.

Were a disaster to strike your company tonight, how well prepared are you to respond? If your primary place of business were severely damaged, could your organization function at another site?

While most companies carry business insurance, use non-compete agreements to protect trade secrets and rely on backup IT systems, many are not fully prepared to survive and recover from a long list of potential catastrophes. The American Red Cross reports that some 40 percent of small organizations do not reopen after a major disaster. Yet developing an effective crisis-preparedness plan needn't be daunting or expensive.

Published in the Rochester Business Journal
July 22, 2005
© HR Works, Inc.

Managing the human resources function at a small company involves many technical complexities and exposures. As the legal landscape shifts continually, the risks of being caught out of compliance remain a serious threat. To help small-business leaders gauge their knowledge of relevant rules, and to assist them in identifying where knowledge gaps exist, HR Works offers the following quiz.

Published in the Rochester Business Journal
February 20, 2004
© HR Works, Inc.

For many entrepreneurs and owners of very small businesses, the decision to take on employees represents an exciting step. While a firm that employs only the owner and his or her family members may get along without formal human resource policies, that status changes when others are hired.

At what point in its growth should a very small firm create an employee handbook containing written company policies? And what types of policies should a small-business handbook address?

Published in the Rochester Business Journal
December 19, 2003
© HR Works, Inc.

According to the Chubb Group of Insurance Companies, the Equal Employment Opportunity Commission (EEOC) now handles more than 80,000 employment practices grievances per year. Allegations may include sexual harassment; wrongful termination; wrongful discipline; wrongful failure to employ or promote; retaliation; or discrimination. Total monetary awards to plaintiffs have reached a quarter of a billion dollars annually, Chubb notes.

And that’s only the federal EEOC. State and local human rights agencies and courts also report a steady increase in employment-related grievances.

Published in the Rochester Business Journal
October 3, 2003
© HR Works, Inc.

How can an organization avoid the time, expense and embarrassment of a DOL investigation? The best solution: Conduct an audit of your own HR Department and make sure your pay practices and other policies comply with ever changing state and federal regulations.

Published in the Rochester Business Journal
January 27, 2006
© HR Works, Inc.

Maximizing the value that employees deliver requires companies to hire the best people, clarify performance expectations, and ensure ongoing employee development. Locally and nationwide, organizations are investing more money in workforce training. But rather than simply allot a certain number of hours and dollars, employers are insisting that development initiatives dovetail with crucial organizational objectives.

Published in the Rochester Business Journal
November 28, 2003
© 2003 HR Works, Inc.

Every day, brochures and emails promoting the latest, greatest executive education programs cross managers' desks. Using appealing language and images, these pitches usually promise the world -- to those willing to pay thousands in tuition.

But how good are these executive education programs? And how does one choose?

Published in the Rochester Business Journal
August 3, 2003
© HR Works, Inc.

Rulings from the Supreme Court, the Department of Labor and the Equal Employment Opportunity Commission consistently underline the need for employers to show good-faith efforts by instituting a regular schedule of training for employees, especially supervisors, to ensure that those policies are understood and applied consistently. That training typically focuses on interviewing and hiring practices, preventing discrimination and harassment, managing leaves, managing disciplinary and termination issues, and handling other issues such as proper use of e-mail and Internet use.

Published in the Rochester Business Journal
October 16, 2009
© HR Works, Inc.

Generational differences among employees can be advantageous to any organization. Diversity fosters creativity and expands an organization's approach to problem solving. An age-diverse work force also can help to ensure that a firm's talent pool is fully tapped.

But diversity also comes with challenges. Today's work force is made up of three very distinct generations of employees. Understanding the differences in approach and expectations of each age group can help your organization leverage the strengths of each and create a more satisfied and productive work force.

Published in the Rochester Business Journal
August 21, 2009
© HR Works, Inc.

In an economy weighed down by uncertainty, layoffs and hiring freezes, smart companies in the Rochester area and across the country are turning to a group of highly motivated laborers willing to work hard for next to nothing and have fun doing it: interns.

Every day, it seems, we learn of more victims claimed by economic woes. The airlines announce repeated downsizings. General Motors plans to slash thousands of manufacturing jobs. Here in Rochester, Student Loan Corp. will eliminate one-quarter of its workforce. The list goes on.

Let’s face it: There’s no easy way to lose a job or to deliver the news. But when an employer handles layoffs with respect and attention to protocol, the company may ease employees’ pain, maintain morale among remaining workers, minimize the company’s legal risks and preserve its reputation.

Is your small company still basing its recruitment strategies on job boards, newspaper ads, career fairs and mailed-in resumes? If so, you may as well classify yourself as a recruiting dinosaur, doomed to attract only mediocre applicants.

Successfully attracting to your company the best candidates, ideally, the 5 percent of the work force known to be innovators and game changers, requires a radical change in thinking, recruiting experts say.

Two companies may be in the same industry working in the same city, yet only one is a recognized leader who owns a significant market share. Why do the two companies, selling the same products or services, perform so differently? Because the exceptional company employs exceptional managers and employees. Just as in sports, where championships are won by the teams that recruit well and fully develop the best talent, success in business also is based on cultivating a talented team.

As the pace of growth quickens at many local companies, so does the search for quality employees. Where employers once found it relatively easy to land top candidates, more are now encountering severe talent shortages in certain fields. Today, adopting a competitive approach to winning the talent war is essential if an organization is to ensure innovation; boost productivity, customer service and employee retention; and secure market position.

At this moment, as many as three-quarters of your employees may be looking for a new job, either actively or passively. While some may be alarmed by these figures, successful employers know that, if their companies are to maintain a competitive edge in this knowledge-based economy, they must attract and retain exceptional talent.

Employers must look well beyond pay and benefits and must treat employees much as they do customers. That means asking employees what they need and want, tapping into their innate desire to engage in rewarding work, and remaining flexible enough to offer to each employee the right blend of opportunities, rewards and workplace conditions.

The Hillside Work-Scholarship Connection is a nationally recognized program with a track record of helping at-risk youth stay in school, achieve academic success, and earn their high school diplomas while working part time. Employers that participate enjoy government incentives, improved retention and loyalty, lower recruitment costs and a source of diversity, and feeders for apprenticeship, internship and scholarship programs.

Published in the Rochester Business Journal
January 18, 2002
© HR Works, Inc.

Surveys show that 96 percent of all job seekers now use the Internet, making it their most commonly used search tactic.

The pluses are many: Posting jobs online can cost less than half as much as Sunday newspaper postings and far less than employment agency fees. Online ads can be longer, more descriptive, written any time of the day or night, and posted almost immediately. For employers, online recruiting allows far better targeting of candidates than does advertising in general newspapers, resulting in a greater percentage of qualified applicants.

Published in the Rochester Business Journal
Oct. 5, 2001
© HR Works, Inc.

Great companies are not built with mediocre employees. Yet it's astonishing how often managers postpone firing poor performers and troublesome employees. 

In exploring the reasons why CEOs fail, a 1999 article in Fortune magazine cited the CEOs' chronic failure to place the right person in the right job, and their repeated failure or unwillingness to fix people problems swiftly. Some of those CEOs later admitted to selective deafness - ignoring an inner voice that warned them of a problem, and refusing to listen to those around them who saw the difficulty long before the CEO did. This failure to deal with a subordinate who exhibits sustained poor performance can deeply harm a company and produce a ripple effect that hurts morale on many levels.

Published in the Rochester Business Journal
June 1, 2001
© HR Works, Inc.

What do Oprah Winfrey, professional golfer Tom Lehman and California Senator Dianne Feinstein have in common? They all completed internships. Winfrey began her career interning at WTVF in Nashville, Lehman learned how to organize fundraisers as an intern in the athletic department at the University of Minnesota, and Feinstein spent a year as an intern at The Coro Foundation.

For years, internships, co-ops and apprentice programs have been an integral part of the recruitment process for some organizations. These programs offer short-term supervised work experience usually related to a student's major field of study. They give employers a "previewing" opportunity offering an effectiveness unmatched by other recruitment efforts.

When described in the business press, high-profile M&A targets seem to be viewed as commodities – inanimate objects to be bought and sold quickly, assets broken up or spun off – with minimal attention paid to the pain that human beings typically experience when they’re being bartered.

Poor planning around HR issues and excessive focus on financial and operational details derail many transactions, says Ronald Castor, a partner with JC Jones & Associates LLC, which offers business integration and M&A services. Most companies would do well, he says, to conduct due diligence that involves not just the balance sheet but also core values.

To be effective, strategic HR planning must occur within the context of the organization’s overall business plan. Short- and long-term business strategies will dictate what human resources will be needed in what areas. These strategies also will shape HR decisions on organizational design, selection, retention, training and development, performance management and rewards.

In 2007, proactive organizations will be looking at fresh ways to elicit optimal performance from employees, integrate new technology to streamline the HR function, leverage new pension legislation to support HR and organizational goals, control benefit costs , and communicate effectively with employees about these and other changes.

As more firms opt to grow through acquisition, the need to address crucial HR issues becomes clearer. Inexperience and inflated expectations often lead company leaders to underestimate what’s necessary to retain key talent and manage communications throughout a transition. How can merging companies keep productivity high while avoiding the cultural mismatches that often generate disappointing results?

In 2005, priorities for HR managers in local companies will fall into one or more of the following categories: compliance, benefits, training, technology, performance management and rewards, and leveraging outsourcing expertise. Some initiatives, such as ensuring compliance with the new Fair Labor Standards Act (FLSA) rules regarding employee classifications, are essential to address immediately. Others, such as adding wellness programs to encourage employees to stop smoking or lose weight, are nice-to-haves.

Everyone is looking for E=MC² when it comes to performance appraisals - but there's no perfect formula. Evaluating and motivating employees involves doing a lot of little things right, all the time, rather than creating the perfect form. What are the most important things to do right?