Internships Growing in Northeast Ohio

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According to the results of the 2011 ERC/NOCHE Intern & Recent Grad Pay Rates & Practices Survey, more Northeast Ohio organizations are planning to grow or maintain internship programs compared to those planning to reduce or eliminate their interns.

Results from the 2009-2010 surveys, conducted annually by ERC in collaboration with the Northeast Ohio Council on Higher Education (NOCHE), highlight a trend in the overall percentage of organizations that plan to increase their number of hired interns from 23% in 2009 to 35% in 2011.  In addition, survey results show a steady decline in the number of organizations who plan to reduce or eliminate their internship programs over the same period.

Organizations Planning to Make Modifications to Internship Programs

Results also show that an increased percentage of organizations find value in hiring interns to (among other cited reasons) develop a talent pipeline, assist with special project work, test potential employees before hiring them, obtain affordable workforce support, increase exposure at local colleges and universities, and to improve retention of new college graduates in Northeast Ohio.

View the Intern & Recent Graduate Pay Rates & Practices Survey

This survey reports data from Northeast Ohio employers about their internship and recent graduate employment and pay practices.

View the Results

What You Don't Know

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Ignorance may be bliss, but it won’t keep you out of court. Here are a few scenarios in which what you don’t know could truly hurt your organization.

Scenario 1: Till adverse employment action do us part

Here’s what you know. Joe and Mary are husband and wife. They both work for your organization. Joe’s performance and attendance is poor. Despite multiple meetings, warnings and disciplinary actions, he consistently doesn’t show up and even when he does, he doesn’t get much accomplished. As a result, you plan to let Joe go later this week.

Here’s what you don’t know. For the last three months, Mary’s new supervisor has been harassing her. The conditions have gotten so bad that she just filed a sex discrimination charge with the EEOC.

Here’s how this could hurt you. If you fire Joe, you may also get sued for retaliation – and lose. In early 2011, the U.S. Supreme Court ruled that an employer unlawfully retaliated against an employee after his fiancée filed a sex discrimination charge with the EEOC and it then fired him three weeks later. As a result of this ruling, employers must be mindful of the relationships between employees when taking any adverse employment actions that could be construed as retaliatory in nature, even if the potential third-party “person aggrieved” wasn’t engaged in any protected activity.

Scenario 2: It’s in the details

Here’s what you know. Emily works for your organization. She recently applied for a new position in the organization that would give her a promotion and an increase in pay. While considering Emily for the promotion, you note that she has displayed a consistent pattern of clerical errors and a lack of attention to detail in her work. You tell Emily that you believe she may lack the concentration or mental capacity to handle the additional responsibilities of the new position, and as a result, you deny Emily the promotion.

Here’s what you don’t know. Emily was recently diagnosed with a learning disability.

Here’s how this could hurt you. Based on the final rules for the Americans with Disabilities Amendments Act of 2008, taking an adverse employment action because an employee is “regarded as” having a disability is a no-no, and the definition of “disability” has been greatly expanded. In this scenario, Emily could file a claim with the EEOC that you regarded her as having a mental impairment or learning disability, and as a result, discriminated against her by denying her a promotion.

Scenario 3: Unemployed need-not apply

Here’s what you know. You have a job opening for a production manager at a facility in New Jersey. You’ve had a lot of turnover at this position, which your management team at your headquarters in Canton, Ohio, believes is the result of a lack of qualified job candidates. As a result, two weeks ago they ordered that you change your online job ad to include “must be currently employed” as a requirement of the position. You made the change at the beginning of the month, and have already started interviewing candidates this week.

Here’s what you don’t know. This week an unemployed former production manager filed a discrimination charge against your company with the Commissioner of Labor and Workforce Development in New Jersey.

Here’s how this could hurt you. As of June 1, 2011, employers in New Jersey are prohibited from knowingly or purposefully publishing a job posting in print or on the Internet that states, among other things, that current employment is a job requirement. In this case, your organization could be fined $1,000 for its first violation – up to $10,000 for a third (or subsequent) violation.

New Jersey is the first state to enact a law protecting unemployed workers from employment discrimination. New York has adopted the same legislation.

Elements of an Incentive Program

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Looking for a way to motivate or incentivize employees to meet a goal or objective? Whether it’s sales, productivity, service, quality, teamwork, or just a change in behavior, incentive programs can be an effective tool to meet your organization’s needs and objectives. Here are the most important elements of an incentive program.

 

Clarify the objective of the incentive program.

What is the purpose of providing the incentive? Will it be designed to improve the productivity of your production staff, increase sales, improve customer service, and enhance management? Usually, the objective of an incentive plan is tied to meeting some organizational or departmental goal or objective or motivating/changing a specific behavior. This may be general or specific to a certain work group or department.

Define the incentive.

Define the type of incentive you will provide and make sure that it aligns with the objective. Individual incentives should be tied to individual goals and performance, team incentives should be tied to team goals and performance, and so on. Also, will it be offered in addition to a salary increase or instead of one, and will it be considered part of the total compensation package? Below are three (3) types of incentives to consider.


Type of Incentive

Description

Individual incentives

  • Tied to the achievement of individual and/or organizational goals
  • Typically only distributed to specific individuals
  • Differentiates top, average, and bottom performers

Gain-sharing

  • Tied to the margin of profit or savings attained through a group or team’s performance
  • Typically only distributed to certain groups or teams
  • Rewards and encourages teamwork

Profit-sharing

  • Tied to the margin of profit attained by entire organization
  • Typically distributed to all employees or certain executives/managers
  • Provides employees with “line of sight” – how their contributions impact the organization’s success

 

Create a measure for the incentive.

Having a clear objective will make measurement easy. Measurement could be as simple as determining whether the goal was achieved or not achieved. You may also weight what percent of an objective was met (i.e. 75% of goal achieved or 110% of goal achieved). One key question your organization will need to consider is if you will payout for not reaching goals completely or if you will payout extra for exceeding goals.

Determine who is eligible to receive the incentive.

If the objective of the incentive plan is specific to a certain work group or department, eligibility should be constrained to only employees in those areas. If the objective is general, eligibility may be widespread, applicable to nearly all of the workforce. We find that incentive plans typically follow one of these two tracks.

Establish the size of the incentive.

This is, first and foremost, dependent on what your organization can afford to pay – which may vary from year to year and depend on cash flow, revenue, and profitability. The size of the reward may be a fixed dollar amount or a percentage of salary. On average, we find that variable pay costs account for 3% of revenue (variable compensation divided by total revenue) – compared to compensation costs which typically account for 25% of revenue. Below are average target percentages, maximum threshold percentages, and percentages of total cash pay that incentive/bonus pay represents.


Type of Employee

Average Target %

Max. Threshold %

% of Total Cash Pay

Production, Maintenance, Service

4.4%

6.6%

4.1%

Clerical, Technical

4.0%

7.7%

4.3%

Supervisory, Managerial, Professional

8.1%

12.1%

6.6%

Source: 2011 ERC Pay Adjustment & Incentive Practices Survey

Identify the form of payment.

Some incentive/bonus payments are paid out in lump sums annually, while others may be distributed across paychecks throughout the year. Annually is by far the most common frequency of payout, but quarterly is a close second. Monthly and semi-annual payments are extremely rare.

Incentive programs can be effective in promoting the behavior and results we want in our organizations, but in order to do that, they need to constructed effectively. This starts with clearly identifying the objective of the program and then aligning all of its pieces and parts (type, work groups eligible, size, form of payment, etc.) with that purpose.

Additional Resources

Pay Adjustment & Incentive Practices
Benchmark your organization’s pay adjustment and incentive plan practices with our ERC Wage & Salary Adjustment Survey. For more information about this survey (including pricing information), please click here.

Consulting & Project Support
For assistance in developing incentive/variable pay plans and compensation systems or benchmarking compensation practices, please contact consulting@yourerc.com.

Healthy Living Ideas: Sleep

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The importance of sleep is underscored by the symptoms experienced by those suffering from sleep problems. People suffering from sleep disorders do not get adequate or restorative sleep, and sleep deprivation is associated with a number of both physical and emotional disturbances.

Below are suggested herbal sleep aids supplements to help get a good night's sleep.

1. Chamomile: Chamomile is one of nature's oldest and gentlest herbal sleep aids. It is most often drunk as a tea, which has a mild and pleasant taste. In addition to promoting calm and restfulness, chamomile is also used in cases of stomach irritation.

2. Valerian: Valerian is a root that has long been used as an herbal sleep aid. It has a characteristic smell – just like old socks. Valerian can be used to help occasional sleeplessness, but is also particularly helpful taken long-term.

3. Melatonin: Melatonin is a hormone that the body produces at night. It is sometimes called the "sleep hormone" because it is so important to healthy sleep. People who are blind, who suffer from jet lag, or who live in places with extended sunlight hours may have trouble sleeping because their bodies do not produce enough melatonin.

4. SAMe: SAMe (S-adenosyl-methionine) is an amino acid derivative, and is found normally in the body. It is typically used as an antidepressant, but is also commonly used to treat chronic fatigue syndrome or as an herbal sleep aid. Its actions in the body help to promote healthy sleep cycles, especially when taken daily for several weeks.

5. Tryptophan: Tryptophan is an amino acid that is a precursor to seratonin. Low serotonin levels can cause irritability, anxiety, and sleeplessness, so adding more tryptophan to your diet can help you relax and will promote healthier sleep patterns.

Over 2/3 of Local Employers Still Offer Incentives/Bonuses

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The results of the 2011 ERC Pay Adjustment & Incentive Practices Survey show that the majority of employers are still offering an incentive/bonus plan. However, the percentage is down from the past few years.  

The survey reports that 67% of organizations surveyed have an incentive/bonus plan, compared to 79% in 2010 and 89% in 2007. Although this is the lowest percent reported in years, it’s important to note that the majority of respondents continue to offer an incentive/bonus plan.

The survey also shows that incentives including annual bonuses, profit sharing, spot-achievement awards, and individual incentives remain the most common incentives offered by employers. Gain-sharing, small-group incentive pay, and stock options continue to be less common.

Additional Resources
More info about this survey and other compensation surveys: click here

HR Guide to Summer in the Workplace

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It’s that time of year again. Memorial Day signals the return of warm weather, summer activities, and plenty of HR and workplace issues from enforcing dress code and attendance policies to planning a company outing or event. This is your guide to managing summer in the workplace.

Spell out specifics in your dress code policy.

Dress code tends to become more open to interpretation during the summer (sleeveless tops, open-toed shoes, flip flops, capris, skirts, etc.), so be sure to specify exactly what you mean by “business casual” attire instead of leaving it to the employee’s discretion.  Spell out acceptable and unacceptable types of clothing and shoes (and examples), colors and styles (depending on your industry or type of organization), and specific days or situations that require different attire (such as formal or casual) that the usual. Also, be sure that you apply the dress code policy uniformly and consistently.

Provide flexible scheduling.

Now is an ideal time to remind employees of your attendance policy as issues of consistently coming into work early or late or “calling off” tend to become more of a problem during the summer months. Another way to address this issue is by introducing flexible scheduling options to allow employees to better self-manage their work/life throughout the summer. In the summer, employees are typically faced with greater work/life constraints such as more activities, family obligations, and children home from school. Seasonal perks like flex-time, shorter hours on Fridays, compressed work weeks, and revised work schedules are all offered by some employers during the summer to help employees achieve better balance.

Hire an intern or new graduate.

Another useful way organizations provide relief to their employees during the summer months is by hiring an intern or new graduate. Interns offer a variety of workforce support and assistance with special projects at an affordable cost. They also bring fresh ideas and perspectives, technical knowledge, and a desire to learn. New graduates offer similar capabilities. If you’re not sure where to start in terms of hiring and compensating an intern or new graduate, check out our Intern & Recent Grad Pay Rates & Practices Survey for detailed information about recruiting, hiring, training, engaging, and paying interns and new graduates.

Offer time off from work.

Time off is a common request during the summer with three major holidays (Memorial Day, 4th of July, and Labor Day). Be sure to communicate the paid time off your organization intends to provide for these holidays. Consult our Holiday Practices and Paid Holiday Survey for information about which paid holidays employers plan to offer this year.
Additionally, scheduling and coordinating summer vacations requires an efficient and fair process to ensure that employees are able to take time off when desired, but also that the business is able to meet its demands. Here are some common ways organizations effectively coordinate vacations and paid time off:

  • Use a vacation planner or vacation planning system.
  • Create a method for employees to request or “bid” on preferred dates of vacation – such as a vacation request form. Build in supervisory approval.
  • Require employees to schedule time off in advance, but be reasonable about how far in advance they need to schedule.
  • Have employees coordinate vacation time with their coworkers and/or self-manage vacation time.  This helps ensure that “back-ups” exist.
  • Develop policies that specify what criteria will be used to approve vacations (first come, first served, seniority, rotation, etc.).
  • Specify the limits of taking vacation (i.e. people with the same skill set can’t be out at the same time, maximum number of days, etc.).
  • Monitor and take into account other leaves (FMLA, maternity/paternity, sick, disability, etc.).
  • Remind employees that the business’ needs need to come first when scheduling vacations. As an employer, you do have the right to require an employee to postpone a vacation or require advanced notice. If you do promise vacation, however, you may be legally bound to it, according to Ohio law.

Start (or re-energize) your wellness program.

There’s no better time to start or re-energize a wellness program than at the beginning of summer. Summer is an ideal time for employees to get into shape and improve their well-being and the workplace can help them do that. Employees also tend to be more interested in wellness at this time of the year given the nice weather, outdoor activities, and greater availability of fresh and healthy foods. This can boost participation rates which help you keep your workforce healthier and manage the sting of rising health insurance costs. Here are some ideas for your summer wellness program:

  • Introduce a walking program
  • Hold company-wide wellness/fitness competitions, challenges, or team-building functions
  • Coordinate informal pick-up sports at lunch-time or after work
  • Provide fresh fruit and vegetables
  • Hold seminars on nutrition-related topics
  • Encourage employees to go outside during their lunch break, or even hold meetings outside

Plan a company outing or event.

The summer is a great time to plan a company outing or event and many businesses take advantage of the nice weather to spend time informally socializing with their employees.  Outings and events are great opportunities to get to know your staff, show appreciation, and do some team-building. Here are some tips for planning a summer event, provided by ERC’s own event experts:

  • Form a committee. Don’t plan your event alone. Get other employees involved in planning the outing and event and delegate responsibilities.
  • Define the event or outing’s purpose. Is the outing intended to be a social or networking event? Or is it an event that celebrates or recognizes something?
  • Determine the location. Outdoor locations are ideal for summer events, but make sure that the venue fits your audience and the type of event you are creating. A formal event will need a formal setting.
  • Set a date. Identify a couple potential dates and confirm the availability of the location as well as those that need to attend the event. Provide confirmations.
  • Create an agenda or timeline for the event. Lay out the entire event in terms of breaks, activities, meals, etc. and the times that they should take place. Assign roles to people on your committee and have them “own” certain tasks.
  • Communicate details. Be sure that your guests have all the information they need about the event or outing (i.e. location, directions, timing, attire, meals provided, response directions, and contact information).
  • Select food and activities. Make sure these are relevant to the type of event and the people attending, and also consider any dietary restrictions ahead of time. For example, if children will be attending the event, activities and food selections should be fitting.
  • Test-drive the event. Test equipment, walk through the venue, and get familiar with the things you’ll need during the outing. Pretend like you’re the guest.
  • Make it unique. Traditions are great, but try to build an element of surprise into your outing or event to make each year exciting. This could be a new location or venue, different entertainment, or a new giveaway.

Continue to train and guide performance.

Engagement can often become stale in the summer months. That’s why performance management, training, and development should not wane during the summer months. It’s important to keep investing in these practices so employees stay engaged and productive. For example, the summer signals mid-year, which is an ideal time for employees to meet with supervisors to discuss their performance and progress towards goals and objectives set at the beginning of the year. This discussion can help refocus employees on their goals, help establish new projects and objectives, and identify what additional support is needed. Additionally, while many employers refrain from scheduling training during the summer due to vacations, this actually can be an ideal time for training and development – especially if business is slower than normal during this season. 

Have a contingency plan for severe weather.

More severe weather is being predicted for this summer. Be sure that your organization has contingency and disaster recovery plans in place to deal with unexpected power outages, damages, and other issues that severe weather (such as thunderstorms, tornados, flooding, etc.) could cause for your business and its employees.

Prepare for budgeting. 

The summer passes quickly and budgeting will be just around the corner. With most employers planning to provide salary increases this year, it may be worthwhile for your organization to benchmark your employees’ compensation so that you are prepared to make good decisions about market adjustments and compensation increases when budgeting time approaches. Keep a compensation project on your agenda this summer and use our recently published 2011 compensation surveys as resources. Similar to compensation, use the slower summer months to catch up on major HR projects that have been on your to-do list.

The key to managing summer in the workplace is to acknowledge employees’ work/life needs, balance work with fun, and continue to engage.

Additional Resources

Supervisory Series
In the series, participants will gain an understanding of their role as a supervisor as well as employment law as it relates to common supervisory issues. They will also learn how to apply basic managerial and interpersonal skills including dealing with the everyday challenges of being a supervisor, communicating effectively with others, resolving workplace conflict, managing performance, and coaching. Click here

Emerging Leaders
This two-part series covers professional etiquette in and out of the workplace, communication skills, and the traits of a strong leader. It is an ideal course for younger professionals, such as new graduates. Participants will learn tools to present themselves more effectively and enhance their contribution to the organization. Click here.

Compensation Surveys
Get a jump-start on budgeting this summer by benchmarking compensation with our Salary Surveys which provide pay information on nearly 300 jobs that are relevant to all organizations and industries. Click here

American Heart Association Names ERC ‘Fit-Friendly Company’

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ERC is proud to announce that it has been recognized as a Gold Level Recipient of the American Heart Association’s Start! Fit-Friendly Companies Recognition program.

The Start! Fit-Friendly Companies Program is a catalyst for positive change in American business. This national award honors organizations that demonstrate progressive leadership by making the health and wellness of their employees a priority.

“We are extremely honored and excited to be recognized by the American Heart Association as a Fit-Friendly Company,” said Pat Perry, President of ERC. “It is important to us to lead by example, as we sponsor the ERC Health (www.erchealth.com) program throughout the State of Ohio.  Our employees have really embraced the healthy culture that we created here.  We see it through participation in events like staff “wellness lunches,” cardiovascular screening sessions and afternoon workout classes.  We are proud of the commitment we’ve made to improve our employees’ health and work-life balance.”

Some HR Management Jobs See Salary Increases

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The results of the 2011 ERC Salary Survey show the rising of some HR management salaries – mainly those specializing in a certain aspect of HR such as compensation, training, and recruiting.

According to the survey, the median salary for a Compensation/Benefits Manager rose 32% from 2009 and 12% from 2010. Additionally, the median salary for a Training Manager increased 24% from 2009 and 3% from 2010. Recruiting Managers also experienced a modest increase of nearly 7% from 2009.

The survey, however, shows that salaries for HR Managers continue to remain flat. The median salary for HR Managers showed no significant change from 2009 or 2010, remaining around $65,013.

Median HR Management Salaries

Additional Resources

More info about ERC Salary Surveys: click here
Other compensation surveys: click here

Majority of Local Employers Hiring New College Graduates

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The results of the 2011 Intern & Recent Grad Pay Rates & Practices Survey, conducted by ERC and NOCHE, showed that slightly over two-thirds (67%) of Northeast Ohio employers were in the process of hiring or planning to hire new graduates for positions in their organizations. The widespread majority of employers hire these graduates for entry-level positions, though some organizations hire them for mid-level/non-supervisory roles.

According to employers, the most common criteria they look for when hiring new graduates is work experience, interpersonal/communication skills, professionalism, major, and work ethic.  Many of these factors are also used to determine salary, along with professional credentials (such as certifications and internships/co-ops).

The survey also shows that average starting salaries for recent graduates vary depending on the type of degree. An engineering degree showed the highest average starting salary, while a communications degree showed the lowest average starting salary in the survey.

Average starting salaries for college degrees

Degree Obtained

Average Starting Salary

Bachelors, Engineering

$51,455

Bachelors, Management

$50,000

Bachelors, Computer Science

$47,250

Bachelors, Information Technology

$43,500

Bachelors, Accounting

$43,400

Bachelors, Sales

$40,000

Bachelors, Marketing

$37,333

Masters, Business Administration

$37,000

Bachelors, Business Administration

$32,571

Bachelors, Communications

$31,000

View the Intern & Recent Graduate Pay Rates & Practices Survey

This survey reports data from Northeast Ohio employers about their internship and recent graduate employment and pay practices.

View the Results

6 Ways to Manage New ADA & Legal Changes

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The final 2011 ADA regulations had important implications for HR and managers when managing employees’ medical conditions and impairments. Here are six ways we gave to strategically manage this issue in particular and other legal changes that may affect your business in the future.

Meet with your HR and management team. When any new employment law or regulation is implemented, as a strategic measure, it’s important for your HR team and organization to determine how this law will impact your organizational objectives. Meet with your management and HR teams to discuss how the law or regulation will influence your HR operations, affect your ability to attract and retain key talent, and prompt new liabilities or risks that could affect your bottom line or operations. From there, you’ll need to determine what tactical issues need to be addressed, such as implementing training to your management staff, revising and communicating policies, adjusting HR processes, and incorporating new risk management processes.

Revise policies. In the case of the final regulations pertaining to ADA (as well as other laws and regulations), it’s important that you review your policies and employee handbook to ensure that language is adjusted to meet the changing definition of disability and is consistent with the language within the regulation. Remember, the definition of disability has become much broader, so your policies should reflect this change.

Review and adjust accommodation process. No longer is focusing on the question of whether an illness or condition is a disability the focus of the ADA law, as many conditions will now fall under this definition. Rather, the changes to ADA emphasize developing accommodations for employees with impairment. Key questions you should ask are how is your accommodation process administered? Is an HR representative in charge of this process or are line managers? With the new regulations, it’s recommended that HR:

  • Lead and manage the accommodation process consistently throughout the organization versus managers. This ensures that the process is run the same throughout the organization, reducing potential liabilities.
  • Approach the ADA process like FMLA and use standard forms and processes instead of un-standardized doctors’ notes and evaluations. Consider your approaches during the pre-employment process with applicants as well as when current employees develop an illness or condition while they are employed.
  • Create a standard internal form for employees to use which provides a checklist of possible conditions or ability to write the condition or impairment and summarizes alternative accommodations that apply to the condition, or a guide for a discussion of these accommodations. The form may also include a doctor’s signature if necessary versus using doctor’s notes.

Review job descriptions. Ensure that job descriptions specify the essential job functions of each job – and also be sure that these essential functions are actually essential. The courts have been critical of how essential functions are defined. Also, be cautious of defining too many tasks as essential. A good rule of thumb is using a job analysis to rate or rank how important and critical certain tasks are to a job and how frequently they are conducted, and to account for job incumbent and supervisory perspectives.

Train and communicate. When a policy or process is revised, be sure to communicate the changes as soon as possible to managers who are in charge of implementing and executing them. With ADA, front-line managers will likely be the first to know about an employee’s illness or condition and need to understand how to handle requests for accommodations such as:

  • Job modifications
  • Schedule changes
  • Environmental issues (temperature, work setting, stress, exertion, etc.)
  • Motor or cognitive impairments
  • Mental issues (depression, anxiety, etc.)

Managers need to know how to respond, act, and when to refer to HR – and how negative or inappropriate reactions to these requests or even knowledge of a medical condition can cause liability or risk to the organization. They also need to be trained on how to effectively manage employees with mental or physical impairments in terms of scheduling, direction, support, and even modification of interpersonal interactions.

Last but not least, stay ahead of the curve. In HR, we unfortunately tend to react to a problem, a new law or regulation, or a new fad (i.e. what every other employer is doing) versus staying ahead of trends and upcoming legal agendas and issues that will affect our business. This often results in poorly executed tactics, lawsuits, and other issues that could have been avoided had we been more strategic. By being proactive and staying on top of changes emerging in the market, we can help our business manage its risk, legal, and HR issues more effectively, and become a more strategic partner within our management team.

Please note that by providing you with research information that may be contained in this article, ERC is not providing a qualified legal opinion. As such, research information that ERC provides to its members should not be relied upon or considered a substitute for legal advice. The information that we provide is for general employer use and not necessarily for individual application. 

Additional Resources

ERC provides a number of resources to help you stay updated on important legal and HR trends and issues, as well as training for your managers on employment law and employee relations.

ERC Training
To visit our ERC Training Program and Courses page: click here.

Supervisor & Management Training
We offer several courses for supervisors and managers on topics like employment law, workplace bullying, and general employee relations topics like communication, interpersonal skills, and more. To learn more, click here.

HR Project Support
From employee handbook and policy updates to job description revisions, we offer assistance with HR projects to help your organization stay compliant. For more information, please contact consulting@yourerc.com.