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Everybody is talking about it. What does it really mean?

admin — Thu, 03 Nov 2011 19:01:01 +0000

Defining Diversity

by Richard Larsen

“Diversity” has become the key concept driving policies in the workplace, marketplace, institutions of higher learning and philanthropic endeavors, so it should be easy to answer the question: What is diversity?

While the definition of “diversity” in Webster’s New World College Dictionary, fourth edition, is fairly straightforward — “to make diverse; give variety to; vary” — how it translates in programs, policies, mission statements and decision making defies easy definition.

“Talking about diversity can be circular,” diversity speaker, facilitator and newspaper columnist Michelle T. Johnson wrote in “Defining Diversity,” posted Nov. 14, 2010, on the Diversity Executive website, “making it hard to determine which should come first — caring about diversity and then working to figure it out, or working to figure it out so that people will care.”

A good definition of “diversity” is necessary, Ms. Johnson wrote, “because if people don’t like how it’s defined, they will not bother to decide whether the topic is important.”

HispanicBusiness magazine has always believed in the importance of diversity and has a long history of reporting on it. Now we seek to shed some light on the topic in a series of articles that will look at the “concept of diversity” from several different viewpoints—corporate, associations and organizations, and academic.

Evolving Concept
“Diversity” is an evolving concept despite it having deep roots in society. But a very tidy evolutionary change in the underlying concept of diversity occurred March, 6, 1961, when President Kennedy signed Executive Order 10925 establishing the President’s Committee on Equal Employment Opportunity. California’s University of Irvine’s website notes the term “affirmative action” was first used in this order, which included a provision that government contractors “take affirmative action to ensure that applicants are employed, and employees are treated during employment, without regard to their race, creed, color, or national origin.”

Before that date, some efforts that people have belatedly labeled as “diversity” had been more focused on securing for disadvantaged groups the full rights and privileges in the society from which they had been excluded. Actions such as amending the Constitution and endeavors such as the civil rights movement helped create equal status for all.

But with the advent of the federal government decreeing equal opportunity in its hiring and contracting practices, and requiring contractors and subcontractors to pay the same attention to equality in their hiring, efforts to help disadvantaged groups began to move away from securing and safeguarding rights to helping them use those rights to share in the bounty of this nation.

According to The Association of Magazine Media (AMM) website, the use of the term “diversity” came into widespread use about 1980. “Often when one hears the term ‘diversity’ one thinks solely of race and/or gender and thus equates it with affirmative action or equal opportunity,” the website notes. While both concepts “are essential tools to ensuring systemic equity and fairness, neither inspires nor fosters cultural inclusivity and respect.”

Seeking the Framework
AMM noted what it called the differences between affirmative action and diversity in several ways. While the goal of affirmation action was opportunity, the goal of diversity is value; whereas the motivation for affirmative action was legal, the motivation for diversity is competitive presence and increased globalization; and while the driver of affirmative action was government, the driver of diversity is the market.

Some might consider this a cynical assessment that defines “diversity” as merely a business strategy and makes historically disadvantaged groups nothing more than tools to bolster a company’s market penetration and bottom line. Others might balk if “diversity” is defined merely in terms of representation in amounts proportional to the percentage of minorities in the population. Still more might be put off if “diversity” is defined only in terms of doing away with speech and attitudes that can be considered offensive to minorities. Yet, each of these definitions has been used by people involved in making diversity matter.

HispanicBusiness magazine over the next several months will look at “diversity” from these three vantage points — the corporate world, the Hispanic organization and association world, and the academic world. We will look at how these three worldviews on diversity interact and/or clash. We hope that from this discussion the beginnings of a broader framework on which to hang the concept of “diversity” will begin to emerge.

Should you be considering Outsourcing your Human Resources?

admin — Wed, 05 Oct 2011 15:33:52 +0000

Small-business owners are all too familiar with frustration of spending more time than they want or should on non-revenue-generating activities. Dealing with payroll alone on top of all the various other human resources services such as benefits comoensations, could easily have them spend ing at least 40 percent of their precious day engaged in these necessary but time-consuming tasks.

The solution for many of these growing companies may be to hire a professional employer organizations (PEOs). These companies become the legal employer of your staff and handle all the payroll, benefits and HR functions. The multitude of options that a Human Resource services provider can help tremendously with easing the burden for the business owners.

According to a statement by MIlan Yager,president and CEO of the National Association of Professional Employer Organization ” Most small businesses are under 25 employees, and that means the owner is the most productive, is critical to the success of the business, and has to get out there and generate sales and products,”When small businesses outsource non-core activities, “they can focus on the business of their business”.

The question is, when does it make sense to go with a PEO? PEO‘s are definitely not a one size fits all deal, it isnt for every company. However those that dodo use them can often offer better benefit packages and thus hire better talent.

To determine whether or not you should hire PEO or simply outsource some but not all of your HR, there are several things to consider before you making a decision:

The Size of your Company: Expert opinion varies on how large a company should be before it hires a PEO. A general rule of thumb is “when administrative processes begin slowing down the productivity of the firm,” says Dan Sheridan, president and chief operating officer of Extensis, a PEO. While it is different for every company, “this typically occurs when a business reaches 10 to 15 employees a week,” says Sheridan.
What its going to cost compare to your current expense: Like all professional services, the way a PEO prices services varies depending on the company. Industry experts estimate that the cost ranges from about 2 percent to 11 percent of wages. Another way to look at the expense is per employee. With that measure, it would run between $500 and $1,500 per employee per year. For very small companies with only two to five employees, some PEOs might price their services at a flat fee of $150 per month.
On the flip side, it is important to try and estimate the total cost of your HR functions. Truth is, most businesses “have no idea what their true costs are, as they only think of wages but never add up all the other things,” says Yager.
Control: How much control over HR do you want? The PEO acts as a business partner to the client company. If a business owner wants to control all aspects of a business and is not open to suggestions or following through on recommendations a PEO makes, then a PEO may not be the best fit. It migh make more sense to just outsource some of it in an ASO set up.
Businesses do lose a bit of flexibility in the coverage they can offer when they use a PEO. Related to the issue of control is the perception of your employees. “Employees are used to seeing [your business name] on the check,” and the PEO becomes the check signer, says Sweeney.
Services your Organization needs: Choosing the right PEO is of paramount importance, the PEO should have the necessary credentials and certificationshave experience in the client’s industry and cover that company’s territory, and assess their specialization. Some PEOs specialize in a Web-based high-tech approach, while others are focused on face-to-face support.

Human Resource Departments Rated Worst Performing

admin — Wed, 24 Aug 2011 18:13:44 +0000

Human Resource Departments Get Poor Ratings

In a recent study by The Economist Intelligence Unit, that senior executives around the world rated their HR departments as the worst performing department in their business. Why was this the case? What was the biggest contributor to this?

HR executives were being bogged down with all their administrative tasks that they didn’t have time to look at the big picture and work towards the goals of the company.

With the findings in hand, HR professionals have realized outsourcing administrative tasks such as payroll and benefits administration have increased employee performance and company profitability.

Harry Feinberg, Founder, Chairman, and Chief Executive Officer of Outsourcing Today LLC (the company that publishes HRO Today magazine, HRO Europe magazine and FAO Today magazine), stated the market for HR outsourcing is growing at 25-30% each year.

“The trend of outsourcing HR administration is initially started in larger companies, however, mid market and smaller companies have found outsourcing to be critical in helping them grow,” says Feinberg.

Typical outsourcing can include any or all of the following:

Payroll services

Employee Benefits

Accounts Receivable and Payable

How To Hire Employees in Maryland

admin — Wed, 10 Aug 2011 18:32:32 +0000

Hiring Employees in Maryland

Employers must first determine if the employee will be an independent contractor or w-2 employee. Issues such as tax withholding from employee paychecks and liability may be implicated by this decision. There are federal and state guidelines to determine whether workers are independent contractors or w-2 employees.

As a w-2 employee, employers will need to obtain federal and state employer identification numbers, which are used for tax purposes. Employers will be required to participate in a worker’s compensation insurance pool for Maryland hires.

Compliance with immigration status by obtaining certain documents from the potential employee is required by you the employer. Employers need to also ensure that the employee properly completes forms for federal and state tax withholdings. Information on payments required to satisfy child support or alimony awards should also be gathered, where applicable. Some additional requirements may apply, so be sure to check accordingly with your state.