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Welcome
Welcome to the January 2007 edition of the Credential Check Examiner! This month we look at workplace bullying, elearning, and how to effectively scrub data.
As always, please feel free to reply with your comments and suggestions!


Are You Getting the Most From Your Employees?
We have all heard of the adage, “The best predictor of future behavior is past behavior,” but is this true for performance related behavior in the workplace? While more U.S. employers are adopting some sort of pay-for-performance program, recent studies too have examined the link between employee performance and compensation programs. Not surprisingly, the findings of available research cite that money does indeed have an incentive value! However, there exist several methods by which increased employee performance can be accomplished, including but not limited to base pay, lump sum bonuses and merit increases. The real question is which method is most effective?
Psychological and economic research suggests that compensation plans influence individuals through two mechanisms: first, their effects on motivation connected to the incentives inherent in the pay system; second, their effects on motivation based on reactions to the plan’s specific distributions. Sturman (2006) found that both “how much” (the amount of the reward) and “how” the money is paid (the relationship that exists between performance and pay) influence employees’ future performance levels. Further, both raises and bonuses increase future performance, but merit raises were found to have a greater effect than that of bonuses. Specifically, Sturman (2006) found that the benefit of a 1-percent increase in base pay was comparable to the benefit from a 3-percent bonus. Although the absolute level of one’s salary was not related to future performance, relative pay levels made a considerable difference. More over, and perhaps most important, the study also showed that how an employee is paid can also influence performance. The examination into merit raises found that the link between pay and performance was generally unrelated to future performance. Conversely, the extent of the pay-for-performance relationship with bonuses was significantly related to future performance.
Based on Sturman’s (2006) findings, pay structure can be designed to achieve greater employee performance. Simply spending more on employee pay would likely yield minimal results. Improving the merit-increase pool by one percentage point, but otherwise not making any allocation changes would be projected to increase performance only by roughly 2 percent. On the other hand, if the same money was applied to pay-for-performance bonuses, Sturman’s analysis suggests a performance increase of better than 15 percent. In sum, the research suggests that providing a strong pay-for-performance link for bonuses rather than raises had the greatest potential benefit, predicted to improve employee performance by nearly 20 percent.
Source: Sturman, C. M., (2006). Using Your Pay System to Improve Employees’ Performance: How You Pay Makes A Difference. v6, 13. Cornell University. The Center For Hospitality Research.
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Bullying: From the Playground to the Workplace – Part I: The Effect of Workplace Bullying
For many individuals, the word “bully” sparks images of playground fights, name calling, and stolen lunch money. It is rare that one would associate this term with a co-worker or supervisor, but a study conducted by The Workplace Bullying & Trauma Institute (WBTI) found that approximately 1 in 6 employees do experience some form of bullying while in the work environment. Bullying in the workplace is formally defined, by Salin, as: “Repeated and persistent negative actions towards one or more individual(s), which involve a perceived power imbalance and create a hostile work environment.” Bullying is thus a form of interpersonal aggression or hostile, anti-social behavior in the workplace. This can include, but is not limited to, performance prevention tactics, tactics of control (unrelated to getting work done), and violations of civil norms, policies or laws (according to WBTI). Targeted individuals often experience severe psychological and physical reactions in response to persistent harassment and abuse. Victims may have feelings of shame, stress, anxiety, and depression, and can develop gastrointestinal disorders, hypertension, and suffer reduced immunity to infections. It is clear that bullying can be extremely distressing for the victim(s), but it is important to note that cases of workplace bullying can also be costly for employers. Businesses, which tolerate bullying in their workforce, run the risk of increased turnover rates (possibly of top-performers leaving out of fear), absenteeism, low productivity, the development of a poor reputation, and negative public relations from headlines which spotlight litigation and/or violent incidents. What can employers do? The Workplace Bullying & Trauma Institute has developed a blueprint for employers looking to take action against bullying. The blueprint is comprised of recognition training, prohibitive policy, and a mechanism for enforcement. WBTI suggests that employers:
  • Create A New Values-Driven Policy
  • Develop Credible Enforcement Processes
  • Incorporate Restorative Interventions for At-Risk Teams & Individuals
  • Provide General & Specialized Education
The implementation of these principles is voluntary, as there is currently a lack of legislation pertaining to bullying in the workplace; though this may be changing. A relatively new bill, being proposed on the state level, could potentially impact how employees and employers manage and respond to bullying within their organization. Next month’s issue will include a discussion on the future of this bill, its objectives, and the impact it could have on employers.
Additional information on the Workplace Bullying & Trauma Institute’s blueprint can be found at: http://www.bullybusters.org/advocacy/pdf-docs/overview.pdf.
For more information from The Workplace Bullying & Trauma Institute, please visit their website at: http://www.bullyinginstitute.org/.
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Credential Check Tip
Military Verifications - A potential savings of time and money: to verify employment from the United States Armed Forces, ask your applicant to provide a copy of their DD214. This form is given by all branches of the military and includes the information regarding their enlistment and discharge (including circumstances if not honorable).
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    “eLearning” . . . The Future of Workplace Training?
    “eLearning” is the delivery of educational content via any electronic media and is distributed in many different forms, including web-based training (WBT) and computer based training (CBT). The eLearning industry has surpassed 10 billion dollars in the US alone and is expected to grow because it can reduce training costs upwards of 60% by replacing traditional classroom training. “Many eLearning companies allow the organization to set up trainings quickly in-house allowing them to train on the exact items that they are looking to convey, compared to finding a packaged training course that already has set deliverables. This makes trainings quicker, to the point and the organization is often able to create simple quizzes to validate that the information is being understood by their employees” states Timothy Whiting, Director of Business Development with Credential Check Corporation. With a Return on Investment often exceeding five times that of traditional classroom training, it is easy to see why companies of all sizes are turning to elearning as a way to train their employees. One of the largest growing segments of elearning is WBT because of its cost benefits. With in-person trainings, you often have the travel expense in getting employees and trainers to one conference room or training facility. WBT is available 24/7 and users take the courses at a computer at their convenience, with no lost time due to travel. A WBT course can be set up to have an unlimited number of employees take a training as opposed to limiting the number because of classroom size constraints. With better technology, WBT courses are becoming more engaging with video, sound, and role playing scenarios. Business Controls’ Workplace Violence training allows users to click through different workplace scenarios, learning about situations and making decisions on the best course of action for resolution. Users are then tested on how well they know the subject matter and if their decisions are sound, based in fact, and legally viable. Management can track these results, such as the time needed to complete the course, pass/fail rates, and scoring. The ability to track these results helps managers assess their employee competencies and provides insight into their employees’ strengths and weaknesses. They can then refocus efforts on those who may need additional training or support. As technology becomes more imbedded in everyday life, companies need to look at technology as a way to connect with their employees. Younger workers, for instance, are accustomed to computer-driven education, and respond well to interactive programs. eLearning, when done correctly, delivers greater subject matter retention and effectiveness, while drastically reducing time away from the job. Training is a continual need for your workforce to maintain skills, develop new skills, and empower employees to improve, often leading to increased productivity and reduced turnover. eLearning will continue to replace other means of corporate training, bringing greater results and reduced expenses to your organization.
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      Quote of the Month: "Better be despised for too anxious apprehensions, than ruined by too confident security."
      -Edmund Burke (1729 - 1797)

      How to Effectively Scrub Your Data
      The loss of company laptops and the sensitive information contained on those laptops is unfortunate commonplace in corporate America today. Many organizations attempt to minimize the potential damage by “scrubbing” laptops, or attempting to wipe off existing information from a hard drive so that the only information contained on a laptop is intentional, as opposed to a laptop containing files from previous users and programs, which oftentimes contain sensitive information. But most organizations and their IT departments are not experts in effectively scrubbing laptops. A recent case of laptop theft in Arizona involving Intermountain Healthcare underscored the issue, as Intermountain had attempted to scrub some laptops before donating them to charity. Unfortunately, Intermountain’s scrubbing technique was not effective enough, as information on Intermountain employees was left behind on at least one hard drive. The proper way to scrub hard drives is to use software that writes zeros to a target hard drive over several sweeps, eliminating the possibility of residual data. There are several programs that can accomplish this; a free tool called DBAN (Darik’s Boot and Nuke) is available for free download. top

      Investigating Attorneys May Now Be Sued
      The ruling in Spagnola v. Town of Morristown, NJ (Civ. Action No. 05-577, Dec. 7, 2006) has opened the door for claims against investigating attorneys. In Spagnola, an attorney investigating a claim of workplace harassment did not clearly define who he was representing when he interviewed a municipal employee (Spagnola), who had made a complaint of severe sexual harassment against her employer for having been repeatedly exposed to sexually offensive materials by her supervisor. Spagnola has claimed that the investigating attorney misled her about her rights and stated that no corrective action would be taken against her supervisor. Furthermore, Spagnola has claimed that the investigating attorney was advising her with respect to her legal claims. With the Spagnola ruling, a complainant in New Jersey may sue the investigating attorney for negligent representation. What Spagnola means to workplace investigations in general is that attorneys who are investigating claims need to exercise even more caution when conducting interviews and gathering information, to the extent that obtaining a signed disclaimer from an interviewee acknowledging that the attorney is not providing counsel or that there is no such relationship for the purpose of the interview. Hypothetically, could this precedent be applied to non-attorney investigators who may misrepresent themselves or who incorrectly speak to corrective action during the course of an interview? Attorneys and investigators who conduct workplace investigations will certainly be watching how this precedent is applied in future employment law.
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        Contact Information
        If you are interested in obtaining additional information about these articles or the services offered by Credential Check Corporation, please contact one of the following individuals:
        Michael A. Pachuta
        President
        248-526-5206
        michael.pachuta@credentialcheck.com
        Timothy D. Whiting
        Director of Business Development
        248-526-5214
        timothy.whiting@credentialcheck.com
        Diane M. Diksas
        Controller
        248-526-5210
        diane.diksas@credentialcheck.com
        Michele McDermott
        Business Development Manager
        248-526-7319
        michele.mcdermott@credentialcheck.com
        Tricia A. Kotarski
        Client Service Manager
        248-526-5212
        tricia.kotarski@credentialcheck.com
        Thank you! We'll see you next month!
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