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Relocation Announcements

Scale Computing, a developer and manufacturer of data storage technology, announced that it will relocate its headquarters and begin building its operations in Indianapolis.

Did the Playing Field Really Change Yesterday?

Yesterday the U.S. Supreme Court released its long awaited ruling in Ricci vs. New Haven. For the reader who may be not up to the latest in this case, it began when the City of New Haven conducted tests for promotion to a higher level within the city fired department. When the results came in, the city determined that there were not enough representatives from non-white personnel in the promotional pool. The court determined that the City had arbitarily thrown out a job-related test illegally.
The question is thus in light of the Ricci decision, has the playing field really changed? I am not a lawyer, although I come from a family of them. In my view the decision just means that we as human resource professionals need to more then ever ensure that the tests we provide to assist us in making human resource staffing decisions must accurately reflect the ability on one to complete the bona fide occupational qualifications. There is nothing in the decision as I have read that says we are off the hook in this regard.
In this global economy we need the wide array of views and cultures in the workplace so while New Haven apparently may be wrong in their decision it does not eliminate our need to continue to recruit, hire and promote all equally qualified members of our human capital resources.

Round and round we go

On four separate due dates the government has chosen to extend the implementation of the E-Verify system, which is designed to check the legal standing of the individuals preparing to enter the United States or to begin work at a new employer. Now Senator Schurmer of New York wants to totally scrap the E-Verify program and replace it with a system centered around the use of biometrics.

Have You Really Looked at Your Population lately?

The demographics of the marketplace will change over the next decade according to the US Census. Their latest data indicates that the world's 65-and-older population is projected to triple by mid-century, from 516 million in 2009 to 1.53 billion in 2050. In contrast, the population under 15 is expected to increase by only 6 percent during the same period, from 1.83 billion to 1.93 billion. In the U.S. those 65 and older will more than double by 2050, rising from 39 million today to 89 million, the Census Bureau reported. While children are projected to still outnumber the older population worldwide in 2050, the under 15 population in the U.S. is expected to fall below the older population by that date, increasing from 62 million today to 85 million. Are you prepared to change your way of conducting business to deal with the change. There are seminars all across the US as to how the boomers will change the workplace. Get prepared now!

The Workplace Has Changed

Let me begin with a statement of fact--In order to survive in the global workplace we have to actively engage in collaboration between the organization's non-owned assets, it's people. In a recent posting from the Wharton School they ran an article which confirmed this position. In the article they stated whether it's a faster way to move data, a cheaper way to power a car, or a cleaner way to sweep up dust bunnies, the right innovation can deliver huge profits to an organization. But given today's fast-paced global marketplace and limited resources for research and development, companies often struggle simply to survive, let alone innovate.Yet the same forces that have flattened our world may also yield new directions for the future of innovation. During a recent conference at the Mack Center for Technological Innovation, academics and business leaders argued that, rather than going back to the drawing board, companies should go outside their walls and tap into "innovation networks." An "innovation network" is a web of people, institutions or companies outside of a firm that help it solve problems or come up with new ideas. While organizations have formed alliances and strategic partnerships for hundreds of years, experts say this web of connections is becoming increasingly important today.
The full article can be found at http://knowledge.wharton.upenn.edu/article/2272.cfm

DBAI Creates Client Platform on LinkedIn

Daniel Bloom & Associates, Inc. has created a group on LinkedIn located at http://www.linkedin.com/groupRegistration?gid=2056101.
It is designed to be a central location where the client base of DBAI, can share ideas, keep in touch with each other and have a resource to ask for assistance on questions that might arise in the process of conducting your daily business processes.

Trailing Spouse Income requirements may change

Worldwide ERC reports that in its recently issued June 8 guidelines, among other changes, Fannie Mae reversed a long-standing policy that permitted mortgage applicants to include the income of trailing spouses in the household income data supplied to qualify for a loan sold to that organization, before the spouse actually had procured new employment. Going forward, its underwriting guidelines may have deleterious implications for relocating families, since transferees applying for mortgages can no longer include the co-borrower’s income, unless employment in the new location is secured and documented. Freddy Mac has retained its guidelines, however, that do allow the inclusion of a trailing co-borrower’s income.

Clarifying comment on Previous Post

This comment came from one of the readers of this blog and an attendee at CRP 2009

Dan,

Your paragraph “And the World Changes” makes some good points but has one misconception. I don’t like the HVCC. It is a power grab by the billionaire that owns LSI, Lawyers Title, Chicago Title and many others. I think his name is Joseph Murin, he was #3 or #4 on the Forbes list of wealthiest Americans last year. He made $159 million last year. He owns something like 75% of the title companies in the country. With his company LSI, an appraisal management company, this HVCC scrapes 40% to 55% of the money out of the residential appraisal business that now goes to these appraisal management companies. The HVCC was brought about by a lawsuit by Andrew Cuomo suing Fannie Mae on the basis that the state of NY was being damaged by bad appraisals. Andrew Cuomo is alleged to be on the board of directors of several of these companies that benefit from the HVCC!

The HVCC controls the process ordering of the appraisal and the communications between the appraiser and the straight commission loan originator or broker. It does NOT, however, affect the ability of the appraiser to contact real estate agents to confirm details of a comparable sale. In a relocation appraisal, it is essential to call the agent of the closed comparables used in the appraisal to confirm the terms of the sale. For instance, if a home sold for a published price of $100,000; but the seller paid $3,000 in loan origination fees and closing costs normally paid by the purchaser, then the net sales price was actually $97,000. The seller walked away from the closing table with $97,000. That is the cash equivalency for that transaction. We must and can continue to confirm sales details from real estate brokers when performing relocation appraisals. We are supposed to do the same for Fannie & Freddie mortgage loans as well. They each came out with directives recently stating that appraisals are to be made on a cash equivalency basis and therefore the appraiser is supposed to contact the real estate broker to confirm the details of closed sales used as comparables. And we are allowed to do so under the HVCC.

The HVCC was passed to eliminate the pressure and appraiser coercion from straight commission loan officers and their processors. It does not hinder the ability of the appraiser to confirm the details of sales comparables.

The HVCC can be easily downloaded and read. It is about 7 pages long. Interestingly enough, a bank does can comply with HVCC without using these awful appraisal management companies. To do so, they must be mortgage lenders, not just mortgage brokers. A mortgage lender funds their own closings, and then sells the loan. A mortgage broker uses money from a wholesale lender to close their loans. The mortgage broker business model may go away as a result of the HVCC and other financial rules coming into play recently. This is a result of political power of the large banks that are using their political clout to eliminate the competition of the small mortgage brokers.

A bank can appoint an employee that is outside of the mortgage origination and processing department to oversee a blind rotation of approved appraisers of that bank. Many banks are using this process to avoid using the appraisal management companies. The borrower and the appraiser both get screwed by the use of appraisal management companies.

Dan, I hope this is helpful. If you have questions about the appraisal industry, email me. My business partner is the chairman of the SC appraisers licensing board and we are both active with the Appraisal Institute and try to keep abreast of trends in our industry.

And The World Changes

For most of the entire history of the relocation industry, it has been the practice of the industry to have the appraisers confirm their data with the local real estate broker. That all changed as of May 1, 2009. Effective on May 1, the terms of the Home Valuation Code of Conduct were implemented following an agreement between New York State Attorney Cuomo and Freddie Mac and Fannie Mae. Under the new code, communication between appraisers, real estate agents, loan officers or mortgage brokers must be conducted through an appraisal management company which have been added as a new middleman in the process. The National Association of Mortgage Brokers, which is trying to get it repealed, estimates that the new code is costing consumers $2.8 billion dollars in extra fees annually. The process essentially circumvents the communication stream between all parties in the process.

Employers Have easier time with Age Discrimination cases

According to the SHRM website, the new Supreme Court ruling in the area of age discrimination changes the playing field. The U.S. Supreme Court June 18, 2009, made it more difficult for workers to prove in court their claims that they were the targets of workplace discrimination because of their age. In a 5-4 decision written by Justice Clarence Thomas, the high court ruled that, in a case alleging disparate treatment in violation of the Age Discrimination in Employment Act (ADEA), it is up to the worker to prove that age was the decisive factor in the action taken by the employer, even if there is evidence that age played some role in the employer’s decision.

Be careful where you tread

Let me pose a question to you? How many of you are Federal Contractors in your business? Let me rephrase that. How many of you are Federal Contractor and don't know it? Consider this scenario-- You are a HR provider or a relocation provider and you contract with say a relocation management firm to provide services to their government client. According to some recent government rulings you may be also considered a federal contractor and subject to EEO/Affirmative Action regulations.

The Jackson Lewis Law Firm reported the following result of the scenario we suggested: The broad reach of the Office of Federal Contract Compliance Programs may extend even further under a recent federal administrative board decision. The U.S. Department of Labor’s Administrative Review Board (ARB) has upheld an administrative law judge’s (ALJ’s) finding that three hospitals receiving payments from a health plan for providing medical services to U.S. government employees are federal subcontractors required to comply with OFCCP requirements. OFCCP v. UPMC Braddock, No. 08-048 (DOL ARB May 29, 2009).

Relocation Announcement

Exact Sciences Corp. has received a $1 million loan from the Wisconsin Department of Commerce to relocate its headquarters and operations from Marlborough, Mass., to Madison.The company expects to make a significant investment in its relocated operations, creating as many as 150 jobs over five years, as it achieves its commercial milestones, Gov. Jim Doyle said Thursday in announcing the loan award.

If I only Knew

Reuters is reporting the results of a study by researchers at the University of Western Sydney in Australia, in which the results show that in many cases your personality plays a bigger role in determining what job people ended up with. Apparently education and parent's occupation are not of much influence as thought.
The study also foun d that people in management roles tended to be more open to experience, more committed but less agreeable than others in different job roles. The clerical workers were the most committed but were least open to change. The sales people were the most extroverted and agreeable.
The study looked at 20,000 individuals from the perspective of five characteristics: openness to experience, conscientiousness, extroversion, agreeableness and emotional stability.

How Are You Screening Your Applicants?

Over the past several months I have heard a wide variety of advice being given to job seekers on how to handle their employment history. In many cases, it is like the weather in the Midwest. Wait a minute and it will change. I attended a semianr which discussed the recruiting trends for the 21st century and one of the participants told the presenter that if a resume came across his desk and he had more than two jobs in ten years, he/she automatically became a non-qualified candidate. With Gen Y jumping ship every 18 months or so on average and the nature of the market changing, now corporations are begining to look at job hopping as an asset not a detriment.
In today's marketplace the job-hopper is considered to be more of an asset to the organization because they are able to bring new experiences, new culture background and more in-tune with the marketplace today. Troy Media columnist, Bob Weinstein suggests that if you are staying with one company for longer than two years you better have a really great reason for doing so. See the following link:http://www.reliableplant.com/Article.aspx?articleid=17677

Manpower Releases Survey Results on Job Market

U.S. employers plan to keep their staffing levels relatively stable during Quarter 3 2009, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey, conducted quarterly by Manpower Inc. Based on additional data, the Outlook for Quarter 2 2009 was revised to -2 percent, the same as Quarter 3 2009, to account for seasonal variations.
"When we account for ongoing calibration of the data, employer attitudes about hiring remain essentially unchanged compared to the previous quarter," said Jeffrey A. Joerres, chairman and CEO of Manpower Inc. "While the numbers may not be as optimistic as we would like, it is positive to see no further deterioration."
More than 28,000 employers were surveyed about their hiring plans for Quarter 3 2009. Fifteen percent anticipate an increase in their staff levels, while 13 percent expect a decrease in their payrolls. Sixty-seven percent of employers surveyed expect no change in their July - September hiring plans, and 5 percent of employers indicated they were undecided about their hiring intentions.
"The data shows continued hesitancy among employers," said Jonas Prising, president of the Americas for Manpower Inc. "They are treading slowly and watching with guarded optimism, hoping a few quarters of stability will be the precursor to the recovery."

The national survey data shows employers in seven of the 13 sectors surveyed expect hiring to remain relatively stable in Q3 2009 as compared to Q2 2009. Employers in Construction and Wholesale & Retail Trade anticipate moderate increases, while Non-Durable Goods Manufacturing and Leisure & Hospitality employers expect a slight increase in hiring activity compared to the second quarter.

Employers in two sectors surveyed, Education & Health Services and Government, anticipate a slight decrease in hiring compared to three months ago. Employers in Durable Goods Manufacturing; Transportation & Utilities; Information; Financial Activities; Professional & Business Services; and Other Services sector employers will keep hiring levels relatively stable for the third quarter.

The West has a weaker Outlook compared to Q2 2009, while all regions have a weaker Outlook compared to one year ago at this time. Employer optimism about hiring is relatively stable in the South, Northeast and Midwest.

Manpower Releases Survey Results on Job Market

U.S. employers plan to keep their staffing levels relatively stable during Quarter 3 2009, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey, conducted quarterly by Manpower Inc. Based on additional data, the Outlook for Quarter 2 2009 was revised to -2 percent, the same as Quarter 3 2009, to account for seasonal variations.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060221/CGTU012LOGO)

"When we account for ongoing calibration of the data, employer attitudes about hiring remain essentially unchanged compared to the previous quarter," said Jeffrey A. Joerres, chairman and CEO of Manpower Inc. "While the numbers may not be as optimistic as we would like, it is positive to see no further deterioration."

More than 28,000 employers were surveyed about their hiring plans for Quarter 3 2009. Fifteen percent anticipate an increase in their staff levels, while 13 percent expect a decrease in their payrolls. Sixty-seven percent of employers surveyed expect no change in their July - September hiring plans, and 5 percent of employers indicated they were undecided about their hiring intentions.

"The data shows continued hesitancy among employers," said Jonas Prising, president of the Americas for Manpower Inc. "They are treading slowly and watching with guarded optimism, hoping a few quarters of stability will be the precursor to the recovery."

The national survey data shows employers in seven of the 13 sectors surveyed expect hiring to remain relatively stable in Q3 2009 as compared to Q2 2009. Employers in Construction and Wholesale & Retail Trade anticipate moderate increases, while Non-Durable Goods Manufacturing and Leisure & Hospitality employers expect a slight increase in hiring activity compared to the second quarter.

Employers in two sectors surveyed, Education & Health Services and Government, anticipate a slight decrease in hiring compared to three months ago. Employers in Durable Goods Manufacturing; Transportation & Utilities; Information; Financial Activities; Professional & Business Services; and Other Services sector employers will keep hiring levels relatively stable for the third quarter.

The West has a weaker Outlook compared to Q2 2009, while all regions have a weaker Outlook compared to one year ago at this time. Employer optimism about hiring is relatively stable in the South, Northeast and Midwest.

Have we Not Really Grown?

In today's competitive marketplace, the basis of our success is the ability of team members to collaborate on the roads to the completion of change improvement. This means that as self-directed teams, we need to leanr to respect the input of all the team members. In November, the citizenry gave us the impression that we had finally moved beyond the narrow minded beliefs of some, who if applied to the workplace could limit our growth not enhance it.
Then we turn on the news or read the media and find that an individual seems to believe that his picture of the world is the only "correct" view of the world that he has to take violent actions to enforce them. Imagine if we were not talking about such an event as the Holocaust but rather a initiative within our marketplace. Can we continue to not keep our eyes open to the dangers of some of our policies--such as the many states which have in essence created a new protected class by freely allowing our employees to bring firearms to the workplace and that we can't protect our workplace by "discriminating" against those who are gun owners. I don't hold any animosity towards gun owners. I actually owned one at one time, but there is a place for them and our workplace is not one of them.
The killing at the US Holocaust Museum clearly demonstrates that we need to take concrete steps to protect all the citizenry from individuals who believe that the only solution to conflicting views is to pull out a firearm and take out those with opposing views.

DBAI Managing Consultant Reaches Milestone

Daniel Bloom SPHR, SSBB, SCRP has completed the requirements to receive his certification as a six sigma black belt and the Senior Professional in Human Resources with the successful taking of the SPHR exam on June 10.

When Was the Last Time You Really Supported Your Recruiting Efforts?

On May 17, 2009, in the St Petersburg Times, columnist Bill Maxwell wrote a column about a new program at St John's University in New York that was giving tenure tract for professors who teach writing rather than just conducting research.(http://www.tampabay.com/opinion/columns/article1001353.ece).

In reading the article, it raised some very interesting questions.In 2007, the National Center on Educatiopn and the Economy released their report entitled Tough Choices or Tough Times reporting on the skills of the American Workforce. In the report, the Center reported that in 2007 American studentsplaced at the middle or bottom of their fellow students globally in Math, Science and general literacy. We continually hear from you in the trenches that the new workforce is ill prepared to survive in the 21st century workplace. Having said that we turn and allow our institutions of higher learning to spend the majority of their resources on advancing research that may or may not enable our next generation in increasing their skills.
I have to think back to my own college training because it was because of a willingness to buck the trends of the time I got a different perspective on the role of colleges and universities in our knowledge marketplace. In the 1960's and early 70's, there was a alternative program for college education called the "Parsons Plan." Represented by I believe seven colleges at the height of the program (Parsons College in Fairfield, IA was the model), which looked for professors who wanted to teach, not write or research. All of our lectures were taught by Ph.D's, the discussion groups were all conducted by Master's Degree holders. We learned because that was why we were there.
So on this weekend as we commemorate the invasion on D-Day, I pose this question to you. If you believe that the workforce is not being challenged to prepare as contributors to our way of life, then are you ready to challenge the university system who by intent or coercion force universities to concentrate on the research efforts of their professors at the cost of preparing our workforce? Or are you willing to remain in the staus quo?
I believe that the St John's model of giving consideration to those who those who teach our students to write is what we need to enhance the quality of workforce. Let me know your thoughts.

CRP Results

In talking with ERC, they believe that they are on target for a release of the 2009 exam results right about the four week mark. Check the ERC website or your mail for further details.

New Colorado Law Provides Leave for Academic Activities

Governor Ritter has signed the Parental Involvement in K-12 Education Act (House Bill 09-1057). This law becomes effective August 5, 2009, and grants certain full and part-time employees who are parents or legal guardians of children enrolled in public or private school unpaid, job-protected time off to attend academic activities.

Like the federal Family and Medical Leave Act, this Act applies to private employers engaged in interstate commerce employing 50 or more employees and to public agencies regardless of size. To be eligible for leave, an employee must be the parent or legal guardian of a child in grades K-12 and must work in a nonexecutive or nonsupervisory capacity. Eligible employees can take leave for academic activities such as: parent-teacher conferences, special education services, response to intervention, dropout prevention, attendance, truancy; or disciplinary issues. Parental involvement leave is unpaid. The employer or employee, however, may elect to substitute accrued paid vacation leave or other paid leave for this time.

Full-time employees may take up to a maximum of 18 hours in an academic year to attend such activities. Part-time employee leave is prorated based on the percentage of a full-time schedule the employee works. The Act restricts employees from taking more than six hours of leave in any one-month period and allows employers to require leave to be taken in no longer than 3-hour increments.

Except in emergencies, employees are required to provide at least one (1) calendar week advance notice of the need for leave

Growing Issue Facing HR from all companies

We currently have troops in harms way on two fronts - Iraq and Afganistahn. No matter what your feelings are regarding these use of our troops, you need to take careful considerations of the requirements of the The Uniformed Services Employment and Reemployment Rights Act. According to the Employment Law Update, Jackson and Lewis ESQ has reported the results of two different court cases which the courts found in the favor of the employee who was treated differently by the employer when they returned from active duty.
The Uniformed Services Employment and Reemployment Rights Act requires that employers meet certain requirements:
1. Requires the granting of military leave up to 5 years
2. Prohibits discrimination in employment decisions based on military service or potential for same
3. Requires posting of a notice advising employees of their rights under the act.
4. Requires re-employment to a position that the employee would normally have obtained if deployment had not occurred.
5. Re-employed employees are entitled to the same benefits that wold have accrued if deployment had not occurred.
Information regarding the two court cases can be found at http://www.jacksonlewis.com/legalupdates/article.cfm?aid=1743

Relocation Announcement

NCR moving 2000 jobs from Dayton, OH to Duluth, Georgia over the next five years

E-Verify Extension Again

The effective date of the Federal Contractor E-Verify Rule has been postponed once again. The new implementation date is now scheduled to be September 8, 2009, (extended from the most recent scheduled implementation date of June 30, 2009) and is the result of an agreement between the parties to the lawsuit filed by the U.S. Chamber of Commerce and other business groups challenging the rule.

The rule requires federal contractors with contracts for services or construction over $100,000 and a performance period over 120 days, to use E-Verify for all newly hired employees and also for current employees working on the contract. It was originally due to take effect on January 15, 2009, but has been postponed several times to allow President Obama's administration time to review the rule.

Industry Mergers and Acquisitions

Jeffrey Wheeler, president and COO of Coldwell Banker United, REALTORS and C.J. Crankshaw, owner of Century 21 Southern Homes, announced today that Southern Homes will become a part of Coldwell Banker United, REALTORS.

The two companies will combine market share and will have more than 145 agents serving the Greater Charleston area. Southern Homes has 45 agents in its Goose Creek office. Coldwell Banker currently has 100 agents collectively in the Summerville, West Ashley and Mount Pleasant offices.