By Belinda Weber, SPHR, GMA SHRM President

As we approach our new fiscal year, one of the primary responsibilities of the Finance Committee is to present the GMA SHRM Board with a budget for the 2006-2007 fiscal year. Each year, great consideration is given to the chapter’s competing needs for annual operating funds as well as financial investments for future growth within the chapter in order to “serve the professional” and “advance the profession”. This is particularly challenging because we are a non-profit organization, operating within a zero budget from year to year and we have limited sources of revenue. As one evaluation step of the budget process, we conduct an evaluation of the practices within other chapters to ensure we are providing the membership with valuable services while remaining fiscally sound and responsible.

Benchmarking the current practices of other local chapters within Wisconsin, the committee found significant differences between GMA SHRM and the other chapters both in our member benefits/services and our local fee structure.

The research indicated that GMA SHRM offers significantly more membership benefits and services compared to any of our sister chapters, including the Human Resource Management Association (HRMA) of Southeastern Wisconsin. The major ones follow:

Free programs through the Wednesdays in the Park (WIP) series and the four Professional Emphasis Groups (PEGs)
Regular monthly chapter meetings (others hold less regular chapter meetings)
One professional and two student scholarships awarded annually
A local compensation seminar co-sponsored with World at Work offered at a discounted rate
A One-Day Professional Development Conference at a drastically reduced registration rate
A variety of outreach programs in focus areas such as workforce readiness, volunteer recognition and leadership development
The Local Net – a professional to professional resource for HR-related issues and questions.

And these are just some of the highlights. There are always more innovative and valuable services that we cannot pursue because we just don’t have the financial resources to do so. This is the reality for a non-profit, volunteer organization.

In contrast, GMA SHRM is the only chapter that offers local membership benefits at no cost to National SHRM members. The annual dues charged in the other Wisconsin chapters range from a low of $10.00 to a high of $100.00 annually. Our closest peer chapter, HRMA, represents the highest membership dues of $100.00.

As a result of these findings, the Board has had numerous discussions and feels it is appropriate to approve changing the annual membership fee structure effective July 1, 2006 as follows:

GMA SHRM Chapter Dues	National SHRM Member	Local Only / Non-National SHRM
Application Fee (one-time charge)	$ 15	$ 15
Annual Membership Dues	$ 50	$ 75

This revenue will allow the chapter to continue improving upon the superior programming and professional services that you are accustomed to receiving, leverage technology to deliver new services, and advance our networking opportunities. These are all important chapter benefits, according to the 2005 Membership Survey.

More details of the actual invoicing cycle will be provided to the membership prior to June 30 th. In the meantime, if you have any questions or concerns, please feel free to call me or any member of the GMA SHRM Board.

Can You Hire a Retired Employee as an Independent Contractor?
By David R. Friedman, Friedman Law Firm

Companies are always looking for ways to operate in a more cost effective manner, and some companies have looked at recently retired employees as a way to keep costs down while employing qualified workers. Companies also know that if a person is an independent contractor, they do not have to make FICA payments or pay premiums for worker’s compensation insurance and unemployment insurance. So why not hire back that recently retired employee as a consultant – an independent contactor? The strategy may be a good idea, but as with many good ideas in the HR profession, you’ll first have to deal with some government regulations.

Some of you may remember that the IRS had a 20 part test to determine if a person is an independent contractor. That test has been abandoned. In its place, there is a new set of criteria that the IRS divides into three main areas with subparts. The three main areas are:

Behavioral control
Fiscal control
Type of relationship

“Behavioral control” covers facts that show how work is completed through instructions, training, or other means. These facts demonstrate whether the business has the right to direct or control the worker. The business does not have to actually direct or control the way the work is done; it just need to have the right to do so. If a business has this right, then the worker is an employee.

“Fiscal control” covers facts that show whether the business has a right to control the financial and business aspects of the worker's job. This includes:

The extent to which the worker has unreimbursed business expenses,
The extent of the worker's investment in the facilities used in performing services,
The extent to which the worker makes his or her services available to the relevant market,
How the business pays the worker, and
The extent to which the worker can realize a profit or incur a loss.

The third area is called “t ype of relationship” and it looks at:

Written contracts describing the relationship the parties intended to create,
The extent to which the worker is available to perform services for other, similar businesses,
Whether the business provides the worker with employee–type benefits, such as insurance, a pension plan, vacation pay, or sick pay,
The permanency of the relationship, and
The extent to which services performed by the worker are a key aspect of the regular business of the company.

If you are looking at employing a salesperson, there are additional factors to consider.

For more detailed information on what makes a person an independent contractor, see IRS publication 15A.

Even if your company can meet the IRS tests, the inquiry needs to continue because, in some cases, your company may successfully pass the IRS tests but fail the Wisconsin ones. Among other things, you need to consider the statutory tests for independent contractor under Wisconsin’s Worker’s Compensation statute (sec. 102.07 (8)(b)) and Unemployment Insurance statute (108.02 (12)(bm).

Under the Worker’s Compensation law there are 9 tests that must all be met to determine if a person is an independent contractor. The test include such things as (1) whether the person has a separate office, (2) does the person have a federal employer identification number and (3) does the person realize a profit or suffer a loss under contracts to perform work or services.

The Unemployment Insurance law has 10 standards and the person has to meet 7 of the “conditions by contract and in fact.” These tests are almost identical to those used by worker’s compensation.

So where does all this lead? Simply put, nothing prevents your company from hiring independent contractors – you just need to make a thorough analysis before making a decision. Without such an analysis, you might guess wrong, and your company may be liable for the costs you were trying to avoid.

The opinions expressed or implied are those of the author and may not represent the official position of GMASHRM. This article is intended for general information purposes and highlights developments in the legal area. This article does not constitute legal advice. The reader should consult legal counsel to determine how this information applies to any specific situation.

From the National SHRM Bulletin Board…

Topic: Compensating Mentors

Posted: 4/21/2006 9:39:11 AM

Post: I have a situation where we have a select group of front line employees that also double as mentors whenever we have a new hire training class. At this time, we are not able to promote them or give an increase in salary. Does anyone have any ideas on other ways to make these employees feel "special" or "compensate" them without money for the extra role they play?

Number of Replies: 4 by 4/26/2006 11:41:10 AM

Posted Reply 1: It sounds as though your "front-line employee mentors" are not managers or senior level. Why not recognize them for their above and beyond contributions in their performance evaluations? I wouldn't compensate them for this task individually but it does allow them to show leadership. Build the program on what opportunities if provides for the mentor - not just compensation for a task.

Posted Reply 2: At another company I worked for these "type" employees were often awarded gift cards to restaurants or other stores in increments of $25, $50 & $75. We usually did something yearly, but you may need to do it at least twice a year.

Website of the Month: Performance Management Articles

Visit the Center for Organization Effectiveness and click on the Performance Management page of the Consulting section. Then scroll to the bottom for articles related to performance management. Each article is an easy-to-read, two-page summary that can provide you with the additional background and information you may need to examine or refresh your performance management system. In addition, please join one of the Center’s consultants, Diane Hamilton, at our May conference for her presentation entitled Better Performance Management System—From the Inside Out.

Best Practices in 360 Degree Assessment: Single- vs. Dual-Scale
By Wayne Reschke, Diane Hamilton, Paul Dillenburg

Amidst the array of slick 360 technologies and innovative process features, the survey output is often an afterthought. Ultimately, of course, if the output doesn’t readily transfer to development actions, we’ve significantly underutilized the potential of the 360 assessment. We believe that dual-scale surveys are essential to understanding the feedback and creating specific and targeted development plans.

Most 360 degree assessments use a single scale – rating the extent to which the participant demonstrates the skill/behavior or some evaluation of the level at which they perform each item. The following graphic illustrates a leader’s competency results using a single-scale, 360 degree survey instrument (i.e. rate this individual on their demonstration of behavior X.) The survey scale used by raters is as follows: 1-never, 2-rarely, 3-sometimes, 4-regularly, 5-always.

Rater Groups: S = Self, M = Manager, D = Direct Reports, P = Peers

At a glance you can see that this leader’s direct reports give her high marks across all three competencies – communication, results orientation, and strategic thinking. Her manager’s ratings are lower and close to her self-ratings. Peers’ ratings fluctuate a bit but are all 4.0 or better. What can you conclude?

This employee’s direct reports think very highly of her.
In comparison to the other rater groups, the self and manager’s scores are lower, but are essentially in sync regarding her competence in these areas.
The higher scores from direct reports and peers indicates that their needs are being met

Now using a dual-scale survey, raters are asked to what extent a behavior is currently demonstrated by this leader AND to what extent that behavior needs to be demonstrated. The following dual-scale graphic illustrates the same competency results outlined previously, but includes ratings for the needed level of performance.

The gray-shaded area at the top of each bar graphic highlights the gap between current level and needed level of performance

Rater Groups: S = Self, M = Manager, D = Direct Reports, P = Peers

Now what can you conclude with the addition of the “need” ratings?

This leader’s direct reports think very highly of her; from their perspective she is meeting these particular requirements of her position.
Peers show large gaps between current performance and needed performance for all three competencies. They see significant development needed in these competencies that didn’t show up on the single-scale report.
Though her peers rated her higher on strategic thinking than her manager (4.36 vs. 3.43), the gap they perceive is nearly as large. In other words, they generally agree on the extent to which improvement is needed.
While this leader’s view of her current performance in strategic thinking is the same as her manager’s evaluation (3.43), her sense of needed performance in this area is far below her manager’s. The self-assessment score indicates that this leader is unaware that she needs to develop her strategic thinking skills.

Strengths of the Dual-Scale

As we’ve illustrated, single-scale assessments can lead to a misinterpretation of 360 feedback. They lack the rater’s expectations and perceptions of the job requirements and so miss an important context for the ratings of current behavior. We’ve experienced this first hand when coaching leaders using single-scale, 360 degree feedback instruments. The dual-scale takes away the uncertainty that remains with the single-scale approach. For example, we’ve seen leaders receive a 3.0 (on a 5-point frequency scale) for a particular competency. The leader suggested that a 3.0 was all that was necessary or desired. With a single-scale, it is an unknown; with a dual-scale, raters answered that question. The coaching discussion moved from defensiveness in action planning to focused improvement plans. The dual-scale approach has these benefits:

Enables raters to evaluate leaders differently based on need. In this sense it is “self-norming.”
Identifies high priority competencies through the “need scale.”
Highlights differences in job expectations by rater group and generally reveals patterns of various rater groups.
It mitigates the differences in rater standards by providing each rater's measuring stick and accounting for variation through analysis of gaps versus absolute ratings.
Reflects the different levels of need for certain competencies depending upon level within the organization; e.g., senior leaders have higher “need scores” for strategy than middle managers.
Uses a standard that is a “real” need of people you interact with on a regular basis rather than just an average (norm).
Clearly identifies areas to take action on by focusing on closing the gaps.
Highlights strengths where small gaps appear.

We have used and coached from dual scale assessments for many years now and continue to find the quality of the feedback and resultant action plans to be exceptional. Occasionally we find ourselves confronted with coaching from a single-scale report and find it much more difficult to have confidence in any conclusions. The feedback simply isn’t as rich, or as clear. The absence of gap data leaves too much room for speculation, making it difficult to determine an appropriate plan of action.

Wayne Reschke, Diane Hamilton, and Paul Dillenburg are consultants with the Center for Organization Effectiveness. Mr. Reschke will feature a presentation on 360-degree assessment at our one-day conference on May 23 rd.

Democratic Leadership
by Bill Schrum

"Leadership must be greatly participative, but it can never be democratic."

I don't recall where I first picked up that quotation, but I do remember how it struck me as being conflictual and almost autocratic, on the surface anyway. But as I thought more about it, it came through as tremendously profound, and very true.

What ??!! How can we profess to be a learning organization; how can we create this great Leadership Development Program; how can we stand up and talk about "empowerment" and "self-directed work teams" and all the rest, and then say that leadership cannot be democratic? My god, that's un-American! Or is it?

What is democracy? My thought is that in most cases it is reality clouded by perception. The Webster's definition notes that it doesn't mean that everybody necessarily gets a vote in the way things happen, but it does cite majority rule. But just think about that for a minute, do we want to choose our supervisors, managers, department heads, and administrators, by a popular vote? Do we want to put every policy and procedure decision out for vote? We don't do that in our government (no, we don't!), nor do I believe that is really what anyone wants in our organization. There are political leaders, and there are organizational leaders.

I must say that contrary to what some may believe or want, we will never have total democracy in management or in politics, but we must have participation to thrive and be successful. What do I mean by that? Quite simply, it is everyone (be it administration, department head, manager, supervisor, employee, work team, quality team, committee, etc., or any combination thereof) seeking as much relevant input and ideas on issues and decisions that they deal with. It is people seeking out input and opinions from other people working close to the issues and who would be affected by any decisions made. It is people seeking out as much information as possible within the time available; to enable any decision made to be as fair and equitable as possible and in the best interest of the organization and the people within in it. The most important part of the Webster's definition is something we do strive for, the "principles of social equality and respect for the individual within a community".

Oftentimes decisions may not be popular, and oftentimes leaders really do have to venture out alone and take people where they don't necessarily want to go. Sometimes you just have to do what you’re told and trust that the leader knows why. That's not democracy, that's Leadership. It's not a popularity contest. And, that's what makes real leaders different and perhaps more rare than some people believe.

Bill Schrum is the Vice President of Human Resources at the University of Wisconsin Medical Foundation. He will be speaking at our May conference on the topic “ The Survival of HR. Can it? Will it? SHOULD it?” .

2006 GMA SHRM Human Capital Conference: Building Knowledge and Influence

On May 23, 2006, GMA SHRM will be hosting the first annual Human Capital Conference at the beautiful Monona Terrace in Madison. The full-day event will feature two keynote speakers: Milton Perkins, SHRM’s North Central Regional Director, and Tom Gloudeman, former Vice President of Human Resources at Lands’ End, now with Howick Associates, a Madison-based organizational development and consulting firm. Tom will share his thoughts on how HR can accelerate its position as a true strategic partner. Choose from nine additional topics to create a conference curriculum unique to your professional development needs. A variety of other leading-edge topics will also be presented that will help strengthen your knowledge and help you build influence as an HR professional. Session topics address a wide variety of HR and business related topics required to lead today’s workforce.

The day-long conference is a must-attend event for HR professionals who desire to leverage local resources, to learn more about the latest in HR and strengthen their careers, and to enhance their role, value and influence in their organizations and in the community.

Registration information is available online at http://www.gmashrm.org. Watch for more information in the upcoming weeks via e-mail and postcard. We look forward to seeing you at the conference.

Newly Certified HR Professionals, December 2005 though January 2006

Congratulations to these members who passed the recent PHR/SPHR exam!

Todd Ashburn, PHR	Member Services Leader	Hallman/Lindsay Paints Inc.
Wendy S. Brendel, SPHR	Human Resources Manager	Full Compass Systems Ltd.
Coreen S. Harvey, SPHR
Jacqueline L. Jensen, SPHR	Director of Administration	Wis Sports Development
Laura M. McBain, SPHR	Safety/HR Director	City of Monroe
Jennifer Mead, PHR Kathy Konichek, PHR	Human Resources Specialist Human Resources Manager	Winterthur U.S. Holdings, Inc. First Weber Group

Welcome New Members!

GMA SHRM welcomes the following members who joined our chapter in March.

Tina M. Ahlgrim, CBP	Benefits Consultant	American Family Insurance
Magdalena A. Bartoszewicz	HR Coordinator	IT Convergence
Dena M. Constantineau	Business Service Committee	Employment & Training Association
Rebecca L. Gardner	Human Resource Manager	Palmer Johnson Power Systems
Jack L. Hemb	Partner	Higgins Hemb Insurance Group LLC
Benjamin D. Huber	Human Resource Coordinator	Menards Madison West
Mick Kalscheur	Mgr Compensation & Benefits	Marshall Erdman & Associates
Kathryn Kessler	HR Specialist	The Madison Concourse Hotel
Susan L. Meilahn	Senior Administrator	OpGen, Inc.
Babara Meyer	Senior Compensation Consultant	CUNA Mutual Group
Lisa M. Mortenson	Business Services Team Leader	Dane County Job Center
John A. Palmer	HR Intern	Spectrum Brands
Sheila M. Pichler	Job Developer	Employment & Training
Erin Pinnow	Recruiter	Spectrum Brands
Pat M. Seidel	Principal	Pat Seidel Consulting
Kenneth M. Spuda
Charyl J. Uptegraw	Compensation Analyst	UW Medical Foundation
Sarah Walker	HR Assistant	J.H. Findorff & Son Inc.
Dean E. Welch	VP of Operations	IT Convergence

Your Foundation at Work: SHRM Foundation Scholarships

$50,000 in Regional Scholarships Available

One tangible benefit of the SHRM Foundation is its support of scholarships for SHRM members. All chapter leaders are encouraged to help us spread the word about the 2006 Regional Scholarship Program. 60 scholarships totaling $50,000 will be awarded in 2006. The awards program is designed to assist working SHRM members in meeting their professional development goals. SHRM members pursuing a college degree or professional certification are eligible to apply for either a $1300 education scholarship or a $600 certification scholarship. Twelve scholarships will be awarded in each of the five domestic regions, so applicants compete only with members in their own area. (Members outside the U.S. are also eligible to apply.) The application deadline is July 15, 2006. Note: student members and local-only members are not eligible for these awards. Contact Sandi Peyton (speyton@shrm.org) or your regional coordinator to request a free supply of scholarship brochures for your chapter. The scholarships are made possible by your generous support of the SHRM Foundation. Award applications and information are available online at: http://www.shrm.org/foundation/EducationGrants.asp.

New Barbara Sanchez Scholarships

An additional scholarship program is now available for HR professionals in the media industry. Five $1500 scholarships, one in each SHRM domestic region, will be awarded annually to SHRM members pursuing a college degree. Applicants must be SHRM members working full-time in human resources in the media field (includes print, publishing, cable & satellite, broadcasting, motion picture, internet and communications.)

In 2000, a scholarship fund was created to honor the late Barbara Sanchez, an HR director at Newsday and a dedicated member of the Media Human Resources Association (MHRA) board of directors. MHRA was disbanded in 2003, and it was agreed that the remaining scholarship funds would be awarded through the SHRM Foundation. Funding is available for this scholarship program through 2009.

The application deadline is July 15, 2006 . Award applications and information are available online at: http://www.shrm.org/foundation/EducationGrants.asp. If you have additional questions about either scholarship please contact Terry Finch (tfinch@shrm.org) or your regional coordinator.

Community Events

Movin’ Up

Have you started with a new company? Has your organization recently promoted you to a new position? Or do you want to recognize a new person or promotion within your department? If so, we want to hear about it. Send us an e-mail, and we’ll publish your good news in the next HR InTouch!

HR InTouch Guidelines

Article Writing:

Do you have an interest in writing for the HR InTouch? We have an interest in learning more about your area of expertise!

Why should you volunteer? Top three reasons: 1) to share your knowledge and experiences to educate others; 2) to become more connected in the HR and Dane County communities; and 3) to contribute towards the advancement of GMA SHRM and the HR profession.

The first step is for you to choose a submission option: you can pre-submit an article to GMA SHRM at any time for us to use in any of the upcoming newsletters, you can sign up to write for a particular month, or we can put you on a list of people to contact in future months whenever we need articles.

Article length:

Because the HR InTouch is now in an online format, the size is flexible. The article should be engaging and hold readers’ attention. Include the core information in your article, and we will advise if it is too lengthy.

Solicitation:

GMA SHRM is conscious not to allow solicitation through the articles, in an effort to protect the interests of our partners and members. The nature of the article should be educational (i.e., what are the business advantages of having a product like yours) or informational. Otherwise, if you truly are interested in advertising through the HR InTouch, you can work with our Marketing Committee. As a rule of thumb for article writing, if the submission relates to a for-profit event, or specifically markets your company (vs. your industry), it is an advertisement, and should be purchased. If it is a not-for-profit event that your company is hosting, or an announcement (i.e., a SHRM member recently joined your company), it is an acceptable addition to the HR InTouch content. If you have any questions related to the appropriateness of your submission, please contact us.

If you have questions, or to submit an article, contact GMA SHRM at chapteradmin@gmashrm.org .