| Nardelli Exit Package May Bring New Rules
Home Depot Inc. CEO Robert Nardelli's $210 million severance package may be the catalyst for legislation that tries to rein in executive pay at U.S. companies. Nardelli, 58, was ousted after Atlanta-based Home Depot's shares dropped 7.9 percent and the company lost market share to Lowe's Cos. during a six-year reign in which he earned $225 million. Nardelli's exit pay includes $20 million in cash and compensation earned and not yet received. Congress and the U.S. Securities and Exchange Commission have focused on excessive executive pay in recent months. In July, the SEC began the biggest overhaul of rules covering compensation in 14 years, calling on companies to expand the information they provide to investors about the salary, incentives and perks given to senior executives.
[Source: Bloomberg]
New Center, Jobs Part of Verizon Wireless’ Growth in New Mexico
Today’s official dedication of the new Verizon Wireless Customer Service and Wireless Data Technical Support Center supports the company’s commitment to providing quality customer service in the wireless industry. The opening of the new center also caps a year of a significant expansion of the wireless company’s presence in New Mexico, including new jobs for the Albuquerque community. The company continues to expand its customer service capabilities both in New Mexico and nationally to serve its growing number of customers. Verizon Wireless has added approximately 800 new full-time data technical support and customer service positions in Albuquerque already this year. Verizon Wireless recently announced plans for new customer service centers to open in late 2007 in Huntsville, Alabama and Lincoln, Nebraska.
JobServe IT Board Acquired
IT job site ComputerJobs.com of Atlanta has been acquired by JobServe.com, an Internet recruitment site in the United Kingdom. Terms and conditions were not disclosed, although the transaction is expected to help JobServe expand into the U.S. It presently posts positions on job boards for the U.K. and Australia. ComputerJobs.com was launched in 1995 as an IT recruitment firm and claims to have helped more than 1.5 million people find jobs.
Recruiting Brander Buys WetFeet
Universum Communications Inc., an employer-branding firm based in Stockholm, Sweden, is acquiring recruitment firm WetFeet Inc. of San Francisco. WetFeet provides job search tools, research and other information to students via the Web. Universum, with U.S. operations based in Philadelphia, said the merger strengthens its product portfolio, which aims to help companies create recruitment branding strategies. Terms were not disclosed.
Illegal Internet Activity a Growing Concern for Businesses
8e6 Technologies, a security company dedicated to Internet filtering and reporting, has announced the results of a recent survey to find the most outlandish Internet usage by employees. The results reveal that an increasing number of corporate employees are abusing the Internet for personal gain and putting their organizations at risk of legal liability. The contest sought out stories about the most extreme employee abuse of the Internet during work hours. Of the more than 500 respondents, the winning story went to a computer programmer who discovered one of the employees was using company bandwidth to run his own ‘questionable’ site from the office.
Second prize went to a technology manager who discovered an employee who had downloaded a huge amount of prohibited content such as videos, MP3 files and movies to his workstation. He then set up an internal media server to the rest of the company in order to “save” bandwidth.
Based on the responses from over 500 participants, music and movie downloads were a common problem for network security professionals, posing significant legal consequences for organizations. Hosted Web sites within a company’s network and users setting up wireless access points were among the most common infractions of Internet Acceptable Usage Policies cited in the survey.
Participants were also asked to fill out a questionnaire in which results were compared to a similar survey conducted last year. Recent analysis reports revealed a disturbing 38 percent increase in the incidence of phishing and spam-related breaches from six months ago emphasizing the need for Internet filtering and reporting. In addition, a 17 percent increase in bandwidth consumption resulting from employee time spent on personal e-commerce and personal finance activities were among other serious infractions noted by the participants of the survey. The results also showed a 67 percent increase in the number of respondents who stressed the importance of investing in a real-time monitoring and remediation tool that displays an enterprise’s current security threat level in order to successfully manage the most urgent security breaches as they occur.
Additional highlights:
- More than 77 percent of respondents indicated they would like to incorporate laptop filtering to ensure consistent Internet Acceptable Usage Policies across all computers, regardless of whether they are operating inside or outside the company’s network.
- Nearly half of the respondents are faced with the challenge of incorporating Internet filtering and reporting as part of their company’s overall compliance program and Sarbanes-Oxley audit preparation. This number is up 10 percent from the same survey conducted six months earlier at the Interop Las Vegas conference.
- A growing number of enterprises are requiring Internet filtering and reporting as part of an overall strategy to control employee productivity, up 21 percent from the same Las Vegas conference survey.
- Almost a third of respondents see Web filtering as critical to blocking inappropriate content such as MySpace and Facebook, among other social networking sites.
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Fourteen of the Top 28 U.S. Metro Markets Hold Steady
Online job availability increased or remained unchanged in half of the top 28 U.S. metro markets in November, as employers across the country wrapped up recruitment of temporary workers for the holiday season, according to the latest findings of the Monster Local Employment Index. A majority of the markets tracked by the Index showed only marginal changes – plus or minus one-to-two points – suggesting no significant shift in overall online job demand.
Online job opportunities for business and financial operations rose or held steady in 22 of the 28 monitored markets, indicating continued strong demand for finance and accounting professionals, particularly as financial services companies begin preparing for the upcoming auditing and tax season. In addition, online recruitment for education, training and library; as well as food preparation and serving related occupations are up on a year-over-year basis in all 28 monitored markets, showing strong demand nationwide for teachers and food service industry professionals. Cincinnati, which already leads the Index in terms of year-over-year growth for management occupations, registered the largest overall month-to-month rise in November, driven mainly by a sharply higher demand for white-collar professionals in business and financial occupations.
The Houston metro market, which remained the fastest growing online recruitment market on a year-over-year basis by a wide margin, held steady at a level of 120 in November, following a four-month growth streak. Growth in online recruitment in the Houston metro area has been driven by a booming oil and gas industry, rising international trade and a strong aerospace and defense industry. Solid population growth in the metro area also has created new job opportunities in the services sector and helped uphold local demand for housing.
Meanwhile, Dallas, Indianapolis and Philadelphia were among the markets showing greater online job availability between October and November. Increased online recruitment activity in Dallas was fueled by more opportunities in the broad services sector, while Indianapolis benefited from higher demand for researchers and scientists. Widened job offers in office and administrative support occupations, as well as within the installation/repair and cleaning/maintenance industries, helped drive marginal growth in the Philadelphia metro market.
Boston and St. Louis each fell three points and registered the sharpest declines in November, following a three-month period of gradually rising demand. Boston saw online availability ease among business and professional services occupations, as well as in construction related categories. Most categories in St. Louis declined in November, with the notable exceptions of business and financial operations; and transportation.
On a year-over-year basis, Houston is followed by Cleveland, Kansas City and Minneapolis as the fastest growing online recruitment markets. In contrast, Los Angeles, Baltimore and Washington, D.C. occupy the bottom spots.
Protective service occupations remained the strongest growth rate performers over the past 12 months, followed by food preparation and serving; arts, design, entertainment, sports and media; education, training and library; and building and grounds cleaning and maintenance related positions.
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Money Purchase and Profit Sharing Plans on the Rise
While mounting financial pressures have led many corporations to freeze or curtail their defined benefit plans, the pressures to attract and retain top talent while helping employees reach their financial goals for retirement remain. These seemingly divergent business imperatives have led to a dramatic increase in the incidence of 401(a) money purchase plans, such as profit sharing plans funded primarily with employer contributions, according to Diversified Investment Advisors’ recently released Report on Retirement Plans—2006.
Specifically, more than one-third (36%) of large corporate employers now offer a 401(a) plan. This is compared to just 12% of companies only two years ago, the survey revealed.
The Diversified study also found that even before the Pension Protection Act of 2006 provided employers with incentives for offering an automatic enrollment feature as part of their 401(k) plan, 44% of large companies had already implemented auto enrollment for new employees, and in many cases, existing employees. Another 11% of respondents said that they were in the process of implementing this feature at the time the survey was fielded.
In addition, corporate sponsors said that they have already implemented or are currently implementing such automated account management features as automatic deferral increases (15%), automated rebalancing (24%), and managed account options (32%).
Another key finding of the survey is the fact that even though 401(k) plans have been in existence for over 20 years, employee participation in them continues to increase, with 57% of 401(k) plan sponsors reporting participation rates of at least 70%. This is up from 53% one year ago. One of the factors contributing to greater participation in 401(k) plans is the growing popularity of automatic enrollment.
As in previous years, Report on Retirement Plans—2006 also explored the area of total retirement outsourcing (TRO.) While 36% of respondents said they have never considered TRO, 34% said they are either currently considering it, already using it, or are in the process of implementing it. Slightly more (39%) said they are considering it or have implemented total benefits outsourcing (TBO), citing the lower cost of administration as the single greatest advantage. This represents a 6% increase over last year’s TBO findings.
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Majority of Employees Go to Work Sick
Fever, chills, and aching bones. It’s flu season and many employees will arrive at work bringing more than just their lunch. The Workforce Institute announced the findings of a new survey conducted by Harris Interactive and sponsored by Kronos Inc. According to the study “Sick at Work,” an overwhelming 98 percent of employees working full time have gone to work when they were sick. The survey of more than 1,000 U.S. employed adults demonstrates that “presenteeism” (sick employees showing up for work) is an issue impacting both employers and employees.
The “Sick at Work” survey uncovered the drivers behind presenteeism and explored how employers can curb the problem. When asked why they go to work sick, the most-cited responses were: I feel guilty for calling in; my workload is too heavy; I save my sick time for personal reasons like family emergencies, sick children, parent care issues and other unexpected events; and I try to have perfect attendance.
The survey also found that presenteeism can have a negative impact on all employees in the workplace. Some employees agreed that when employees come to work sick, it creates a work environment where they are afraid of getting sick, it makes them upset with their employer for not encouraging sick employees to stay home, and it sets a precedent where employees feel like they must go to work even if they are sick. As part of the survey, employees offered advice to employers on how to create a healthy work environment. Employees suggested that they not be penalized for calling in sick, and that employers offer paid time off (PTO) programs that give employees a bank of time to use at their discretion.
Although the majority of respondents who have taken a sick day were ill, 39 percent have abused this time. These employees admitted to going to the beach, going shopping, and spending the day pampering themselves at a spa when they were supposedly “home sick.”
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Younger Workers Want More Connection
When it comes to the workplace, younger employees crave more feedback, access to managers and social interaction than their older counterparts, according to a new survey by Hudson.
To learn more about managing multiple generations, Hudson surveyed 2,000 U.S. workers about what they wanted from their bosses regarding meetings and interaction, communication style, work environment and other issues. For this survey, Traditionalists are defined as workers born 1928-1945, Baby Boomers born 1946-1964, Generation X born 1965-1979, and Generation Y born after 1980.
Beyond formal reviews, one-quarter (24 percent) of both Generation X and Y workers said they would like feedback from their boss at least once a week, if not every day. Comparatively, only one-fifth of Baby Boomers want feedback that frequently, and just 11 percent of Traditionalists would like that level of communication.
Younger workers were also more eager to have access to managers – their own as well as senior management – than older workers. Half of Gen X (48 percent) and Gen Y (55 percent) consider it to be very or somewhat important to work in the same office as their boss. However, that figure was 44 percent and 41 percent for Baby Boomers and Traditionalists, respectively.
When asked how important direct access to senior management was to them, 69 percent of Traditionalists state it is very or somewhat important. That figure jumps to 81 percent for Generation Y. Baby Boomers and Generation X were in the middle, with 76 percent and 77 percent, respectively.
On top of everything else, Generation Y employees also prefer more frequent social interaction with their managers. One-quarter (26 percent) would like to socialize with their boss at least monthly. This is compared to 21 percent for Generation X, 16 percent for Baby Boomers and 17 percent for Traditionalists.
Overwhelmingly, workers of all ages agree that in-person communication is the best means to connect with co-workers. However, not surprisingly, younger generations are more open to email and instant messaging than Boomers and Traditionalists.
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Growth Year for Corporate Training Budgets and Staffing
Bersin & Associates has announced the availability of new research on the state of the corporate training industry. The Bersin & Associates study is based on an online survey of more than 330 corporations in the United States with more than 100 employees.
Findings from the report include:
- Organizations of all sizes and across nearly all industries reported higher budgets this year. Overall, training budgets increased an average of 7%.
- The training budgets of health care companies have shown the greatest increase, up 20% over last year. More than 40% of health care companies also reported training staff increases this year.
- Technology and financial services companies also reported large budget increases of 10% or more. The technology sector has the highest proportion of companies reporting training staff increases (69%), but this group also had a fair number reporting staff decreases (23%). Pharmaceutical companies also show a mixed story, with 40% reporting staff increases and 30% reporting staff decreases.
- Instructor-led classroom training continues to be the delivery method of choice, used for 62% of all formal training. However, use of self-study e-learning continues to rise, now accounting for 15% of all training delivered.
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