4 Steps to Managing Absenteeism in Your Organization

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4 Steps to Managing Absenteeism in Your Organization

Life is full of surprises, ones that sometimes lead to employees calling off work unexpectedly. Whether it is a last-minute cancellation by a childcare provider, a case of food poisoning, or another more “creative” reason, absenteeism is a pervasive and costly issues faced by organizations across the board. The four steps outlined below can serve as a basic guide on improving your absence management practices this year.
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Survey Reveals Interesting Differences in How Organizations Select Candidates

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Survey Reveals Interesting Differences in How Organizations Select Candidates

While nearly all (98%) Northeast Ohio organizations conduct interviews as a means of evaluating job candidates for both exempt and non-exempt positions, data from the 2015 ERC Hiring Trends & Practices Survey reveals interesting differences among those that utilize other methods of selection.  

Differences in selection methods for exempt and non-exempt positions

Drug testing, physical exams, and employment knowledge or ability tests are performed more often for candidates applying for non-exempt positions. On the other hand, more employers use reference checks and pre-screening phone interviews for exempt positions. In addition, compared to non-exempt positions, ERC’s research found that 25% more organizations invite candidates applying for exempt positions back for a second interview.
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Recruiting and Hiring Practices of Northeast Ohio Employers Revealed

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Recruiting and Hiring Practices of Northeast Ohio Employers Revealed

The 2015 ERC Hiring Trends & Practices Survey, which assesses the responses of 102 Northeast Ohio organizations, shows that well over a half (66%) of local employers are currently not using a formal applicant tracking system in their recruitment and hiring efforts. The most common reason, as cited by 45% of employers, is that their existing internal process is sufficient. In addition, nearly one-fourth of participating organizations also acknowledge a lack of resources as a reason for not implementing a formal applicant tracking system.

For the 34% of local organizations that do utilize this type of system, ADP is most commonly mentioned as a vendor.
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Wellness Programs: Where We've Been and Where We are Heading

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Wellness Programs: Where We've Been and Where We are Heading

Over the past several years having some form of wellness program for your employees has gone from a cutting edge forward thinking trend, to a mainstream part of many employer’s benefit plans. While the catalysts for this immense growth in the wellness movement are varied depending on the stakeholders involved, most of the changes in strategy, whether being implemented by healthcare providers, the health insurance industry, or even the federal government, are focused on preventative healthcare.

What follows is a brief overview of where wellness programs stand today as well as what these quickly evolving programs and laws could mean for employers and employees alike in the near future.
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3 Ways to Make the Most of Your Internship Program

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3 Ways to Make the Most of Your Internship Program

As a recent New York Times article demonstrates, the days of using interns to fetch coffee, pay them nothing and then unceremoniously dismiss them at the end of the internship without so much as a glimmer of a job prospect are far from over in many industries.

But here in Northeast Ohio, the annual ERC/NOCHE Internship & Recent Grad Pay Rates & Practices Survey demonstrates year after year that many employers are taking a very different approach to their internship programs. In order to attract the best and brightest students to their internship programs, employers need to understand what the internship landscape looks like locally, not only from a legal perspective in terms of pay, but also in terms of how much to pay and what is offered to students through the internship experience itself. Here are a few tips and trends from the ERC/NOCHE survey that organizations may want to keep in mind as they look to hire interns in 2014.
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Local Wellness Programs and the ACA

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Based on the results of the 2013-2014 ERC Policies & Benefits survey, Northeast Ohio employers are well positioned to take advantage of the recently released Affordable Care Act (ACA) regulations increasing the maximum rewards employers may offer employees for participation in wellness programs. Local employers have consistently outpaced the national averages in terms of their wellness initiatives, with specific programs illustrated in Figure 1 below.

One key program that is particularly relevant to Northeast Ohio employers within the context of the ACA regulations is smoking cessation classes. More and more local organizations are placing restrictions on tobacco use as part of their hiring policy and 31.1% of local employers do not allow smoking anywhere on the premises of their organization. In comparison, the national average is 10% lower at 23.1%.
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Engineering Salaries Continue to Thrive

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Once again the ERC Salary Survey demonstrates the strength of the region’s Engineering industry. The 2012 Salary survey reports data on 38 separate engineering positions, with the bulk of the job titles falling into the “Professional” job classification. The strength of the industry is further reinforced by comparing median salaries among engineering positions in lower level job classifications to other job titles outside of engineering. For example, Service Installation Representatives (both junior and senior level) make up 2 of only 9 office/clerical positions with median salaries over $40,000. Similarly, at the supervisory and managerial level, the median salaries for engineering jobs all fall within the top 40%- with Engineering Manager / Chief Engineer near the very top of the list as one of only seven jobs reporting a median salary at $100,000 or above.

Despite strong local salary data trends, national employment trends suggest that the engineering field may be mixed in terms of job growth projections depending on the specific position. In particular the BLS Occupational Outlook Handbook in 2012-2013 notes that in terms of job growth engineering positions based in manufacturing may struggle to keep pace with those in service industries and architectural fields. However, with an average project job growth rate from 2012-2020 of 10% and much higher for niche areas such Biomedical Engineers (62% job growth) and Environmental Engineering Technicians (24% job growth), engineering appears to be more than capable of sustaining and even improving upon these salary numbers for the foreseeable future.

Additional Resources

To purchase or view the most recent ERC Salary Survey, click here. Or, e-mail surveys@yourerc.om or call 440-684-9700.

Hiring Rates Improving In Transportation, Warehousing and Utilities Industry

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The July 2012 BLS Job Openings and Labor Turnover Survey reports that hire rates for the month of May saw little change when compared to the same statistic from 2011. However, one notable exception can be found in the area of Transportation, Warehousing and Utilities. This group of sub-industries experienced a 1.1% hiring rate increase over May 2011 with a 3.7% of all hires made in May 2012 falling into this industry breakout- approximately 180,000 individuals hired throughout the month.

While this industry is traditionally paid lower than many other hourly positions, a jump in hiring could reflect an increased demand for some of these more physically demanding jobs in the private sector. Reporting hourly wage data from the second half of January 2012, the 2012 ERC Wage Survey did in fact see a modest increase in pay for a number of these positions. For example, a Warehouse Worker earned a median salary $13.68, which is up about 12% from the 2011 survey results. Other positions, such as Drivers (Heavy: $16.25 and Local: $16.80) and Fork Lift Operators ($15.00) saw slightly lower improvements in wages, but do appear to be trending consistently upwards over the past several years.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results

To Pay or not to Pay Interns?

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It's that time of year again. Time to start thinking about hiring an intern to build your business' talent pipeline or support some special projects. As you start to begin the hiring process for an intern, you may be asking: should you pay or not pay the intern? If you do pay them, you may be wondering what should you pay interns to be competitive?

To Pay or Not to Pay Interns

Back in 2010, the Department of Labor released guidelines for internship programs under the Fair Labor Standards Act as well as a Test for Unpaid Interns. According to these guidelines, unless your intern meets all of these factors, e.g., the internship is mainly educational in nature and doesn't benefit the organization, they should be paid. As a result, we recommend playing it safe and paying your interns since most internships do not comply with all of these criteria. In fact, there have been a few recent cases where former interns have sued their companies over unpaid work.

Beyond legal consequences, however, from a talent attraction perspective, talented interns (especially in technical fields) can be in high demand. Paying them helps make the internship more attractive and eliminates a reason to not select your organization for an internship. With so many students seeking internships and a limited supply of technical talent, it's best to pay.

Plus, if your organization is using interns to grow a talent pipeline and has plans to hire the intern as a full-time employee following their internship, it's always a good idea to pay them. It shows that you are willing to make an investment in your intern and not trying to take advantage of their work.

What to Pay Interns

If an intern is considered an employee and is to be paid, you need to comply with minimum wage and overtime provisions when determining what to pay interns. Generally, however, interns are paid more than minimum wage. Compensation usually varies for interns based on their major, degree type, and role. Like employees, differences in pay rates usually stem from skill and labor demand. Across national and local pay studies of interns, here are a few general trends:

  • Engineering interns are one of the most highly paid types of interns, typically earning between $15.00-$18.00 per hour.
  • Information technology/computer science interns are also one of the highest paid types of interns, earning between $12.00-$17.50 per hour.
  • Accounting interns are paid higher generally than other types of interns and earn between $12.25-$15.00 per hour.
  • Research, general business, marketing, health, HR, communications, and social sciences interns, generally earn lower pay as interns, usually between $11.00-$15.00 as their skills are in less demand.

Don't forget that benefits are also part of interns' compensation. Close to one third of local employers do not offer any benefits to interns, but the widespread majority offer at least one perk. Interns are often offered these four benefits:

  • Paid time to attend the organization's social events or networking events
  • Rewards and recognition
  • On-site perks such as a cafeteria or fitness center
  • Training, development, and mentorship

Some organizations even offer interns paid holidays, credit towards benefits for time worked if hired after graduation, performance incentives, subsidized parking, and 401(K) - though these benefits generally aren't common.

Interns are a unique segment of the workforce and similar to employees, it's always a good practice to benchmark your pay rates, benefits, and employment practices for interns to see how they compare with other employers. Make sure you're paying fairly and competitively with other employers in the region. Otherwise, you could lose out on some exceptional young talent to your competitor next door.

Additional Resources

2012 ERC/NOCHE Intern & Recent Grad Pay Rates & Practices Survey

This survey, conducted in partnership with the Northeast Ohio Council on Higher Education (NOCHE), collects information from Northeast Ohio employers about their internship and recent graduate employment and pay practices - including intern pay rates and college graduate starting salaries. This survey provides important information for employers planning to hire interns or new graduates in 2012. Patricipate in our surveys here.