Lott showcases several “Please Sue Me” actions, and then talks about how to avoid these expensive situations.
‘Distressed Babies’ Comment Draws Apology from AOL Chief
AOL’s CEO defended a policy change (awarding 401(k) matches annually instead of monthly) that he said was needed to counterbalance healthcare expenses such as those caused by two pregnancies where “distressed” babies incurred more than $1 million each in medical expenses. An employee uproar caused him to reverse the policy.
Please sue me, says Lott.
JPMorgan Chase Will Pay $1,450,000 to Resolve EEOC Class Sex Discrimination Lawsuit [From an EEOC Press Release]
Female mortgage bankers in Columbus, Ohio, were subjected to sex-based harassment and denied lucrative sales opportunities, the EEOC charged.
Please sue me, says Lott.
Dynamic Medical Services to Pay $170,000 to Settle EEOC Religious Discrimination Lawsuit [From an EEOC Press Release]
The EEOC charged in its suit that Dynamic Medical Services, Inc. (DMS) required some employees to spend at least half their workdays in courses that involved Scientology religious practices, such as screaming at ashtrays, staring at someone for 8 hours without moving, and attending courses at the Church of Scientology.
According to the EEOC’s suit, employees repeatedly asked not to attend the courses but were told it was a requirement of the job. In two cases, when employees refused, they were terminated.
Please sue me, says Lott.
Try BLR’s all-in-one compensation website, Compensation.BLR.com®, and get a complimentary special report, Top 100 FLSA Overtime Q&As, no matter what you decide. Find out more.
Pitre Car Dealership to Pay over $2 Million to Resolve EEOC Same-Sex Sexual Harassment Suit
[From an EEOC Press Release]
The Albuquerque firm’s management directed and encouraged the abuse of over 50 male employees for more than a decade, the EEOC charged.
Please sue me, says Lott.
In all these cases there might have been an HR manager saying you can’t, you can’t, you can’t. It’s better, says Lott, to talk to management about risk vs. reward vs. exposure. Instead of saying, “You can’t,” talk about dollars, morale, and negative publicity.
Employee Tenure Is Not Dropping
There’s a perception that employee tenure, that is, how long people stay at a job, has been dropping, but that’s not actually true, says Lott. Today’s average tenure is 4.6 years, while the figure from 30 years ago, 1983, is 3.6 years, according to the BLS.
Perspective
One way to slow down managers is to tell them to imagine their actions on “60 Minutes” or celebrity news website “TMZ.” Would the manager feel OK with this action, policy, or procedure featured in one of these places?
The Tough Question About New Hires
Lott suggests that managers address this question: Are we a destination company for “A” players? Or turn it around—why would an A player come to work for us? What does the answer mean for your hiring? If you’re not an A and wish you were, what could you be doing to improve the situation?
The Tough Question About Incumbents
Then, says Lott, ask this question about your current employees: Do we have A players working for us now? A helpful way to assess this is to ask another question about each of your employees, says Lott: Would you enthusiastically rehire this employee? If not, why not and what are you doing about it?
Try BLR’s all-in-one compensation website, Compensation.BLR.com®, and get a complimentary special report, Top 100 FLSA Overtime Q&As, no matter what you decide. Find out more.
Be Consistent … AND … Make Exceptions!
Consistency is important but it is not always the best policy, says Lott. It is the easy way out. For example, it’s consistent to give everyone the same percentage raise and the same bonus. But do you really want to treat your good and bad people the same? These are the times to be inconsistent for exceptional people, Lott says.
In tomorrow’s Advisor, more of Lott’s tips, plus an introduction to the all-things-comp website, Compensation.BLR.com.