From Sweatshop to Career Destination: The Evolution of a Culture

In 1998, Edelman PR had about 1,300 employees, voluntary turnover was roughly 40 percent and its 'sweat shop' reputation plagued them. Exit interviews indicated that the single biggest cause of turnover was lack of mentoring, coaching and training.

The leadership team took notice! A seasoned HR professional, Laura Smith, Managing Director of U.S. Human Resources, was hired to help address employee retention and evolve Edelman's culture. In turn, the company launched Edelman University and created talent development programs that became the envy of every firm in the industry.

In a three year period the firm more than doubled in size, both in revenues and in employees. Rob Rehg, President of Edelman's DC office, believes that increasing their focus on three key areas — Career Development, Mentoring, and Management Development — through their Managers' Bootcamp (MBC), has contributed significantly to lowering their turnover rate from a high of 40 percent to less than 13 percent in 2009 — all while industry averages continue to hover around 20 percent.

Mandatory participation in MBC focuses on rewards and recognition, providing effective feedback, empowering employees, understanding generational differences and enhancing coaching and mentoring skills. As a direct result of MBC, they have seen measurable improvement in employee conflict resolution skills, performance management, feedback delivery and enhanced employee engagement.

While the work, prestige and brand bring employees to Edelman, it is their strong culture that is cited as one of the top reasons that keeps them at Edelman.

Edelman PR is a 2009 Apollo Awards winner. Register for the Apollo Awards breakfast on June 3rd and learn how other organizations like Edelman are building great cultures that enhance employee engagement, client satisfaction and retention. 2010 Apollo Awards™ Registration.

Worker Misclassification: Risky Business
Christine Poulias, Helios HR

Under the Obama Administration the Department of Labor is teaming up with the Department of the Treasury to crack down on employers who misclassify their workforce. In addition, the Internal Revenue Service has launched a program that will randomly examine 6,000 companies over the next three years for employee misclassifications. The federal government estimates it will raise $7 billion over the next ten years through tighter enforcement.

As an employer, you are at risk for misclassification if your independent contractors have job duties similar to those of your employees. Misclassifying a worker as a contractor costs the government substantial tax revenue, while the worker misses out on benefits afforded to actual employees. For employers that properly classify workers, the improper classification by other employers means higher unemployment taxes and increased workers' compensation premiums.

Whether a misclassification is intentional or a matter of misinterpretation of legal guidelines, the repercussions are firm and no industry is exempt. Major corporations, including prominent shipping, beverage, cable/broadband and software development companies have all fallen under scrutiny and paid the price...to the tune of millions of dollars. And it's not just the big fish being challenged. Smaller businesses have not only paid fines, but have been banned from the public procurement process as well.

So what's an employer to do? If you are concerned that you may be at risk, consider the following*:

1. Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. Are the business aspects of the worker's job controlled by the payer? (How worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3. Are benefits (i.e. pension plan, insurance, vacation pay, etc.) offered? Will the relationship continue? Is the person performing work that is considered a key aspect of the business?

If it is still unclear if the worker is a contractor or an employee, visit www.IRS.gov to file a form SS-8 so the IRS can make an official determination on the worker's status.

* Source: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

• From Sweatshop to Career Destination: The Evolution of a Culture
  

• Worker Misclassification: Risky Business

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Be a part of the positive recognition of DC-area employers and take away practical program practices! To purchase individual tickets or a table sponsorship, visit 2010 Apollo Awards™ Registration for more information.

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Upcoming Events

May 13 - Worker Classification: The Elephant in the Room! Worker classification is one of those tricky compliance issues that everybody knows, but nobody wants to talk about. Be informed and join Aronson & Company and Helios HR for an encore seminar that addresses how your company can prepare for audits and reduce liability. Visit Worker Classification Seminar to learn more!

About Helios HR

Helios HR provides human resources outsourcing, consulting and recruiting services that optimize your workforce and HR operations. With Helios, you gain a strategic business partner with a keen eye on your organization's culture, growth, business strategy and budget.

Additional information is available at www.helioshr.com

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