All posts by David Shadovitz

NAHR Welcomes New Fellows

The National Academy of Human Resources inducted its 2017 class of Fellows at its annual dinner and installation ceremony Thursday night in New York.

NAHR Class of 2017 Fellows (from left to right) Donna Morris, Peter Fasolo, Christine Pambianchi and Tim Bartl.

One association executive and three senior HR leaders were welcomed into the academy by their peers in recognition of their level of achievement, including Timothy Bartl, executive vice president, general counsel and secretary of the HR Policy Association and CEO of the Center on Executive Compensation; Peter M. Fasolo, executive vice president and chief human resources officer at Johnson & Johnson; Donna Morris, executive vice president for customer and employee experience  at Adobe Systems Inc.;  and Christine Pambianchi, senior vice president of human resources for Corning Inc.

The NAHR’s first class of Fellows was inducted 25 years earlier. To acknowledge the milestone, six members of the founding committee who were present at the induction ceremony were asked to stand and be recognized.

To date, with the addition of its 2017 class, 172 individuals have been named Fellows of the NAHR.

Tim Bartl joined the HR Policy Association as its assistant general counsel and vice president of corporate affairs in 1997, when it was known as the Labor Policy Association. He’s been instrumental in expanding the association beyond employment policy into areas such as healthcare and executive comp. At the Center on Executive Compensation, he oversees operations, policy and federal advocacy activities and has played a key role in growing its “subscribers” over the past 10 years from 26 to 134.

Peter Fasolo joined Johnson & Johnson in 2004, after 13 years in management at Bristol-Myers Squibb. Under his leadership, J&J has transformed its approach to HR strategy and service delivery by establishing a global network of shared services. He also has played a key role in leveraging analytics capabilities to better align J&J’s talent and innovation strategies. During his tenure, the company has been able to place internal successors in 80 percent of all senior-management positions.

Donna Morris joined Adobe 15 years ago. She has played a key role in reshaping virtually every aspect of Adobe’s employee experience over that period and, in 2015, her responsibilities were expanded to include the customer experience. Morris is a champion of diversity, and is responsible for  developing cutting-edge benefits aimed at attracting and retaining talent. She’s a member of the board of directors at the Society for Human Resource Management.

Christine Pambianchi joined Corning in 2000 as a division HR manager and has led the company’s global HR function since 2008. Among her achievements are creating a Talent Management Center of Excellence, expanding Corning’s MBA recruiting process at core schools and enhancing the company’s leadership-development curriculum. Her efforts in the area of diversity has led to increases in the number of women, African-Americans and other minorities in leadership roles—39 percent, 17 percent and 83 percent respectively.

Next year’s annual dinner and installation ceremony is scheduled for Nov. 8.

Researching with Care

In today’s digitally connected world, HR leaders should tread carefully as they research and evaluate their technology options.

That was a recurring theme in a presentation delivered by Blackbox Consulting Principal Consultant Jonathan Grafft and Aptitude Research Partners Co-founder Madeline Laurano at a session titled “Research to Practice: How to Use Industry Resource to Make Better HR Technology Decisions” at the 2017 HR Tech Conference.

To be sure, the hunt for new technologies is fraught with danger.

“There are more and more vendors in the HR technology space,” said Laurano, adding that a report by the research firm CB Insights estimates that investments in HR technology have gone from $400 million in 2012 to $2 billion today. “That indicates a lot of new providers, a lot of new opportunities and a lot of confusion.”

Between the dozens of different analyst firms dedicated to covering human capital management and the hundreds of bloggers and vendors that do their own research, the process of selecting new technology can be extremely difficult.

Grafft said that the process needs to start with figuring out the problem you’re trying to solve.

Then, he said, the next step needs to involve collecting the information that’s going to help you solve your problem. “It might be research reports,” he explained. “It might be [talking to] colleagues in the space. It might be coming to HR Tech and talking to vendors.”

Laurano pointed to research her firm conducted last year that found word of mouth and reference calls with customers were the two sources employers trusted the most. “When I look at ratings or reviews, whether it’s to buy shoes or clothes, I look at what other people are saying,” she said, adding that the same is often true for those evaluating HR technology.

Both Grafft and Laurano advised employers to take a lot of the information out there with a grain of salt.

“Is your source a trusted analyst firm … or a vendor that’s trying to push a particular message?” Laurano asked. “You need to figure out where the information is coming from.”

Often, Laurano said, the information might be coming from someone with a relationship with one the firms.

HR leaders should look at multiple sources of information as they weigh their options, Laurano said. “Don’t just depend on one source.”

Laurano placed analyst firms in three buckets: Those that receive all of their revenue from vendors for writing a report; those that have a membership model and work with corporations to conduct research; and hybrids of the two.

In evaluating analysts, she said, it’s important to ask about their expertise, their knowledge of the space they’re covering and their business model.

At the end of the day, Laurano and Grafft said, you need to narrow the field of vendors down to a manageable number and be comfortable with the decision you ultimately make.

Salesforce’s Efforts to Engage

Most employers are looking for better ways to engage employees—and Salesforce is no exception.

Speaking a mega-session on Tuesday afternoon (“Building and Maintaining an Engaging Company Culture”) during the opening day of the HR Technology Conference and Exposition®, Salesforce’s Senior Vice President of Employee Success and Operations David Kingsley described employee engagement as the secret sauce for achieving the tech company’s principal goal of “improving the state of the world.” (You thought I was going to say something like generating greater profits or satisfied shareholders, right?)

Kingsley recounted the story of Salesforce Chairman and CEO Marc Benioff, who learned about the concept of ohana—the idea that family, in the broadest sense of the word, are bound together—during a sabbatical he took in Hawaii. Benioff, he explained, has since made ohana part of Salesforce’s DNA.

As you might expect, Salesforce—which now employs about 28,000 employees globally—has made a concerted effort to leverage technology to better engage its employees.

While the world outside has become more app-centric, Kingsley said, employers are continuing to use the same playbook in the workplace. “Employees are asking, ‘Why can’t work be more like my personal life,’ ” he said.

Everything comes down to whether or not “we can create a better employee experience,” Kingsley said. He cited the way Salesforce previously onboarded new hires as a prime example of a process that was in disrepair.

“When you started working at Salesforce,” Kingsley said, “you received a printout with 17 IT tickets you had to submit on the first day that gave you access to all of the systems you would use. We’d say, ‘Here’s your laptop [and] here’s your Wi-Fi, now go online and stay there for an hour-and-a-half to fill out these tickets … .

“We were making the employees do the work on behalf of the organization,” he said.

In response, Kingsley and his team looked at the data to identify ways to streamline that experience and change it from being organization-centric to being employee-centric.

Later in his talk, Kingsley shared a related story of an employee who joined Salesforce three years ago. “He came in for orientation and his laptop wasn’t ready, his phone wasn’t provisioned and, worst of all, his boss didn’t know he was starting that day,” he recalls.

By the end of the day, he said, the employee sent an email from his personal account informing the recruiter who hired him he was resigning.

That email, Kingsley said, was sent around the globe with the subject line: “ ‘New World Record,’ ” referring to the fact that Salesforce had lost a new hire after just one day.

“That was our Apollo 13 moment,” he said.

Today, he said, Salesforce is using the cloud, social, mobile and the Internet of Things to create an experience in the workplace that mirrors the one employees are having outside of work.

SHRM in the Big Easy

The heat and humidity of New Orleans in mid-June didn’t keep folks away from the Society for Human Resource Management’s 2017 annual conference, which, according to the association, drew a crowd of more than 15,000 attendees.

In her Monday morning remarks, the SHRM Board Chair Coretha Rushing noted that it was the largest SHRM ever.

If you’re an HR leader, I suppose you can read this to mean that employers are continuing to invest in their HR teams.

Held under the theme “All In,” reflecting the need for HR professionals to be fully engaged in what they do, the conference represents the final one under the stewardship of SHRM President and CEO Hank Jackson. In January, Jackson, 65, announced he would be retiring at the end of the year as head of the 290,000-member association. Earlier this month, SHRM announced his replacement: one-time SHRM chair Johnny Taylor, who is currently chairman and president of the Thurgood Marshall College Fund.

SHRM continued its tradition of releasing its annual Employee Benefits survey at the conference.

According to the latest study, one-third of the 3,227 HR professionals who responded said their organizations increased their overall benefits in the past 12 month, suggesting that benefits continued to be an important tool for recruiting and retaining talent. Health and wellness were the two areas most likely to experience increases, cited by 22 percent and 24 percent of those responding, respectively.

Roughly one-third of organizations (34 percent) indicated they offered healthcare coverage to part-time employees, compared to 27 percent in 2014. Meanwhile, about three of every five organizations (59 percent) said they have a general wellness program for employees.

Just 6 percent of the organizations decreased their overall benefits, with healthcare and wellness topping the list of areas being cut.

Workplace flexibility also experienced a modest uptick, with telecommuting and flextime both experiencing increases from a year earlier. Roughly three out of five organizations (62 percent) allowed some type of telecommuting, and 57 percent offered flextime, allowing employees to choose their work hours within limits established by the employer.

Ellen Galinsky, a senior research advisor to SHRM who also serves as president of the Families and Work Institute and is chief science officer for the Bezos Family Foundation, noted that the flexibility findings are consistent with other research she’s done.

“Why are companies helping employees with flexibility?” Galinsky asked during a press conference that gave a first look at SHRM’s Effective Workplace Index, which uses seven components to measure workplace effectiveness. “We found it’s retention, retention, retention.”

In a national study of employers, she said, 39 percent identified retention as the major reason for adding these initiatives. Recruiting was naturally a key factor as well.

Of course, as Laszlo Bock suggested in his Monday morning keynote at the conference, giving employees the freedom to choose what they’re working on also goes a long way to keep them engaged in what they’re doing—and inevitably will lead to greater retention.

Bock, the former senior vice president of human resources at Google who recently announced the launch of a jobs startup called Huma, told those in the audience that “you want to give people a little more freedom than they’re comfortable with.”

The end result, he said, will be increased “productivity and happiness.” (Bock will be keynoting our HR Tech Conference this October, focusing on the role HR can play in building organizations that innovate.)

Bock shared three principles during his remarks.

First, Bock said, companies need to give work meaning. “The most important thing you can do is create an environment that … instills meaning in the work people are doing,” he explained. “If you can connect your work to something more meaningful, [people] will be more productive.”

Second is trust, he said. “Trust comes down to a fundamental question: Do you think people are good or evil? If you believe people are fundamentally good, you’re going to treat them that way. But most organizations [structure themselves in such a way that they] actually don’t assume that they’re good.”

Instead, Bock said, companies need to be more open and transparent with their employees. “One of the things Eric Schmidt at Google always used to do [at every quarterly meeting] was share his entire presentation,” he said. “I don’t know if they’ve been doing it in the last six months, but it never leaked while I was there, and it let people know they were trusted.”

A third principle Bock shared is to “always, always, always, always hire people better than you.”

Know what you’re interviewing for, he said. “I don’t mean the job description. I mean, What are the attributes a job needs.”

He advised HR professionals to not let hiring managers make the hiring decision. Why? “If you’re a hiring manager, you are susceptible to not just the bias inside your own brain, but pressure from outside people.”

Instead, Bock said, establish a hiring committee, one that doesn’t including anyone who’s going to work with the person. The committee’s whole job is to ensure quality, he explained. Was the assessment fair and unbiased? Was it valid?

Over time, he said, companies that hire better than their competitors will emerge as winners.

SHRM Names Taylor to Post

As many of you know, Society for Human Resource Management CEO Hank Jackson announced his retirement in January, after 12 years at the helm of the world’s largest HR association.

Johnny Taylor

The expectation by some was that the Alexandria, Va.-based group, with 285,000 members globally, would officially announce his replacement around the time of its annual conference later this month. Well, the suspense ended yesterday with the appointment of Johnny C. Taylor Jr., a familiar face in SHRM circles, as the new SHRM president and CEO, effective this November.

Taylor is currently president and CEO of the Thurgood Marshall College Fund, a national organization representing nearly 300,000 students attending 47 publicly supported, historically black colleges and universities. He’s been in that role since 2010.

Before TMCF, Taylor worked for IAC/InterActiveCorp, first as senior vice president of HR for IAC/InterActiveCorp and later as president and CEO of one of IAC’s operating subsidiaries. Prior to that, he was a litigation partner and president of the HR consulting business for the McGuireWoods law firm; executive vice president, general counsel and corporate secretary for Compass Group USA; and general counsel and senior vice president of HR for Viacom’s Paramount Pictures Live Entertainment Group.

Taylor served as SHRM’s board chair in 2005 and 2006. (Gerry Crispin, principal and co-founder of CareerXroads, recalled that when Hurricane Katrina hit New Orleans, Taylor, who was board chair at the time, was “instrumental in honoring many of the HR leaders who reached out to help those who had to leave the area for other communities.”)

Johnny was Chair of the Board of SHRM when Katrina hit N’Awlins and instrumental in honoring many of the HR leaders who reached out to help those who had to leave the area for other communities.

In making the announcement, SHRM Board Chair Coretha M. Rushing called Taylor a “visionary leader and accomplished HR strategist who is committed to the continued advancement of the profession … .”

SHRM board member Patrick Wright, meanwhile, said Taylor will be a great successor to Jackson.

“Johnny has such a breadth of experience: HR, legal, operational, strategic, for profit, not for profit, etc.,” said Wright,  a professor in the Darla Moore School of Business at the University of South Carolina.  “He brings to SHRM a vision for the organization and an even larger vision for the profession. I look forward to working with him.”

It’s been a busy year in terms of leadership changes at HR professional associations. SHRM’s announcement follows the appointment in April of Scott Cawood as president and CEO of Scottsdale, Ariz.-based WorldatWork.

Tackling Turnover at Taco Bell

As you might expect, labor is a huge deal for fast-food restaurants such as Taco Bell Corp.

Making sure stores are appropriately staffed with engaged workers is a top priority for the Irvine, Calif.-based firm, which has 830-company-owned outlets and 30,000 employees (nearly half of whom are 22 years old or younger).

As Taco Bell Vice President of People and Experience Bjorn Erland explained yesterday during a session titled “Taco Bell Enhances Its People Strategy with a New Analytics Recipe” at this week’s WorldatWork Total Rewards Conference and Exposition, controlling turnover is a major challenge for the firm.

During the Great Recession, Erland said, Taco Bell’s turnover rate decreased dramatically; but beginning in 2012, it began to rise again while engagement scores began to fall.

Leadership was hearing that pay was a major reason people were leaving. But in order to come up with the right game plan, HR knew it needed more data. So it brought in global consultancy Mercer to better understand the key drivers behind the high turnover and identify ways  to address it.

When it looked at why workers stuck around, Taco Bell, a unit of Yum! Brands, found that a flexible work environment and strong culture were major drivers. As to why people were leaving, factors such as a high level of stress, lack of training and better opportunities elsewhere emerged as a big contributors.

In an effort to better understand the part pay practices were playing, Mercer studied more than 500 company owned U.S. restaurants and 20,000 employees over a 13-month period.

“We looked at workforce factors such as starting pay, pay levels and bonus payments,” said Rick Guzzo, a partner in the Washington office of Mercer. “Then we looked at how long [people] were working at Taco Bell, their average age … and external factors such as store size and where the store was located.”

Well, the big “Aha!” for Taco Bell was learning that earnings were far more important to workers than their rate of pay. Were they working enough hours, including overtime, to bring home a bigger paycheck? (Erland noted that Taco Bell’s pay was competitive with others in the industry.)

In light of these finding, Erland said, the company began to increase its use of “slack hours” to increase the amount of employee take home pay. “Turnover improved when employees were able to bring home more earnings,” he said.

Indeed, the study found that employees who worked 100 hours or more a month were 71 percent more likely to stay than those working fewer hours. “This was eye opening. It’s not a guarantee, but it’s almost like a guarantee,” Erland said.

The research also found a strong correlation between poor store performance and regional general manager turnover.

“You can’t stabilize team-member turnover unless you stabilize the turnover above the restaurant [level: area coaches and RGMs],” Erland said.

Erland noted that 600 out of its 900 company owned store managers had new supervisors in 2015. “That’s just not normal,” he explained. “So we put in place a process in which the COO and I approve any area coach moves” and added “a bonus plan for area coaches that was tied to RGM stability.”

The other thing area coaches often did, he said, was take an RGM who was a superstar in an A store and put them in an F store to turn it around. “What you end up getting are two Cs,” he said. “So we told them don’t move them around; keep them at the A store and we’ll figure out the F store… . As a result, they didn’t move RGMs around much at all last year.”

Next year, Taco Bell is also looking to test the idea of applying variable pay to filling its late-night shifts. “It’s hard to get someone to come in at midnight and work until 4 in morning,” Erland said. “So we have to differentiate the pay [for those workers].”

Hours before Erland shared his story, Taco Bell issued a press release that announced the second stage of a partnership with Roadtrip Nation. The partnership highlights various career paths within the organization, in order to make it easier for current and future employees to match their job needs and goals with the firm’s career opportunities.

Stories of current employees and alumni are featured on the Roadtrip Nation platform, so both current and prospective employees can gain a better understand of what needs to be done in order to achieve their career goals, whether it’s managing a Taco Bell restaurant, working in the marketing department at headquarters or taking skills to another industry all together.

“The platform aims to foster networks and communities and empower team members by hearing about their lessons learned and career paths of others,” according to the press release.

One alumni interviewed and featured is Fred Mossler, former senior vice president of merchandising at Zappos and an entrepreneur. Mossler’s first job was cleaning dishes at Taco Bell, where he worked his way up to a supervisor.

Giving Workers a Reason to Stay

If you’re looking for more proof that recognition matters, check out this Friday morning the results of OfficeTeam’s latest survey.

Exactly two-thirds (66 percent) of the 750 workers surveyed said they’d likely leave their job if they didn’t feel appreciated, up from 51 percent who responded that way in 2012. That’s certainly a pretty substantial jump over a five-year stretch. In contrast, just over half (54 percent) of 600 senior managers questioned believe it’s common for staff to quit due to lack of recognition.

Asked to share the best form of appreciation from a boss or colleague that they received, those questioned offered up some wide-ranging answers, including: a handwritten thank-you card from the chief operating officer; a new car; being named employee of the year; an all-expenses-paid trip to Jamaica; and a donation to a nonprofit in my name.

In a press release on the findings, OfficeTeam District President Brandi Britton noted  …

“All professionals like to be acknowledged for their contributions, and not just once or twice a year. While monetary rewards are always crowd-pleasers, companies don’t need to spend a lot to show appreciation to their workers. Regular praise and even tokens of gratitude can go a long way.”

Employees were also asked to share the strangest form of recognition they personally received at work—and their responses included a few dozzies, including a loaf of bread, a custom statuette of the recipient, edible flowers, an expired gift certificate, a $0.03 raise and socks.

Just a few things to consider—and not consider—as you plan for Administrative Professionals Week, which runs from April 23 to 29.

Taking Well-being’s Pulse

If there’s a single item that runs through Aon Hewitt’s 7th Annual Consumer Health Mindset Study, released yesterday at the National Business Group on Health’s Business Health Agenda 2017 in Washington, it’s that well-being continues to be a work in progress. (You can pre-register here for the full report.)

The study of 2,503 consumers, mostly employees and their dependents, found that well-being is continuing to have a big impact, with all well-being dimensions (financial, physical, emotional and social) being viewed by employees as important.

The findings suggest that consumers are increasingly looking at well-being in a holistic way, certainly a good sign for employers as they attempt to expand their well-being footprints. In light of this, one of the recommendations offered by Aon Hewitt Partner Joann Hall Swenson at a general session on the survey’s key takeaways was for employers to build workplaces that can support well-being in its entirety.

It’s also worth noting that, according to the study, some of the more traditional elements of physical wellness experienced a decline in importance over the past year. Diet, for example, decreased in importance by 7 percent, from 65 percent to 58 percent. Exercise, meanwhile, dropped 6 percent, from 59 percent to 53 percent.

Swenson suggested that employers might want to refresh their efforts in both those areas.

Employers, of course, would like nothing more than to see a greater percentage of employees become better consumers. Right? Better consumers make better decisions, after all.

Well, if the study’s findings are correct, employers still have more work to do on this front as well.

A takeaway from the study is that savvy consumerism continues to be a challenge as far as healthcare is concerned. Among the data points shared by Swenson: 77 percent of the respondents regretted a health decision they made, and only 40 percent said they know where to go to find out what a particular health service costs, down 7 percent over the past year.

“When you look at the number of people who bring a list of questions to their doctor and the number of people who are looking at costs before having a procedure, those numbers are down,” Swenson pointed out.

Then there’s the high level of frustration and confusion patients experience navigating the healthcare system, another key finding cited by Swenson. “Patients are losing their patience,” especially in the case of emerging millennials, she said.  “Many are giving up and throwing in the towel.”

To address this, she said, employers need to use technology to simplify the health-navigation process.

The survey also took a deeper dive into the area of mental health than in past years, finding that the issue continues to reside “in the shadows.” Not surprisingly, it found that stress continues to be on the rise, with the percentage of respondents reporting high stress levels at 54 percent, up 5 percent over the past year. Of those reporting high stress, 74 percent said they were experiencing more and more obstacles that stood in the way of receiving treatments.

Consumers, Swenson said, would like to see more one-on-one assistance from their employers, greater flexibility in terms of arranging for appointments and an expanded provider network from which to choose.

Finally, Swenson said, consumers want healthcare and well-being to be a multichannel experience, one that includes email, mobile and social. Messages and information, she added, need to be delivered when they’re needed, not when it’s convenient for the employer. (The topic of personalization was addressed at several other points during the NBGH event.)

Farewell to OSHA Rule

Looks like another Obama-era rule is about to bite the dust any day now—this time involving the Occupational Safety and Health Administration.

On Thursday, the Senate voted 50 to 48 (two Republican senators abstained) to eliminate an Obama-administration rule that required companies to retain their records of workplace injuries, illnesses and deaths for five years after an incident occurs. Roughly three weeks before, the House voted 231 to 191 to roll back the regulation. Now, the bill—passed under the Congressional Review Act, which gives Congress the ability to use a simple majority to roll back rules within a 60-legislative-day window—is just waiting for President Trump’s signature. (The president has indicated he would sign it.)

Under the Obama-administration rule, which went into effect in January, OSHA was given the ability to issue citations to employers that failed to track such incidences for five years after they took place. Previously, the statute of limitations was six months.

Senate Labor Committee Chairman Lamar Alexander (R-Tenn.) said the Obama legislation is the result of a policy that “makes no sense, does not help any workers, harms smaller employers most of all, and ultimately is rejected by Congress.”

Meanwhile, Congressman Bradley Byrne ( R-Al.), author of the legislation, issued a statement applauding the Senate’s vote: “We should be focused on practive policies that help improve workplace safety instead of punitive rules that do nothing to make America workers safer,” he said. “We took a major step in the right direction today by restricting OSHA from moving ahead with such a flawed regulation.”

Of course, the bill has its detractors, too.

Prior to the Senate vote, Jordan Barab, a former Deputy Assistant Secretary for OSHA (2009 to 2017) posted an article on the Economic Policy Institute site that was critical of Congress’ efforts to kill the rule. Barab points out in the piece that “without being able to enforce any violation within the five-year period, enforcement of recordkeeping accuracy would be almost impossible.”

Yesterday, I asked Edwin G. Foulke Jr., a former assistant secretary of labor for OSHA and a partner in the Atlanta and Washington offices of Fisher Phillips, to weigh in on the potential impact of the move. As he put it:

“When you look back to the ’80s and ’90s, when we used to get the real large penalties of six figures or [more], many times it involved cases with recordkeeping violations going back a number of years. So [the rollback] is going to limit the number of the large citations you’re going to see from a recordkeeping standpoint.”

Of course, he added, employers are still going to be required to maintain those records. “It’s just that OSHA is not going to be able to go beyond the six-month time frame that’s in the act itself.”

As for what other OSHA rules might be in the sights of the Trump administration, Foulke pointed to electronic filing. For now, he said, OSHA is moving forward because no one has told it not to. But once a new Secretary of Labor is confirmed, he added, that could change.

Downsizing the DOL

As many expected, the Department of Labor didn’t escape President Trump’s 62-page budget plan (released yesterday) unscathed. But the extent of the proposed cutbacks should certainly raise a few eyebrows.

On a percentage basis, the DOL tied the Agriculture Department for third place on the list of agencies being targeted for biggest cutbacks (with a 21-percent decrease), just behind the Environmental Protection Agency (31.4-percent decrease) and the State Department (28-percent decrease).

From a dollar standpoint, under the plan, the proposed DOL budget would be slashed by $2.5 billion—to $9.6 billion.

So how will the DOL find these savings?

The budget plan points to areas such as job-training grants, Bureau of International Labor Affairs’ grant funding, the closing of Job Corps centers, the elimination of less-critical technical-assistance grants from the Office of Disability Employment Policy, and Occupational Safety and Health Administration’s training grants. In many of the cases, the administration’s hope is to shift more of the burden onto the shoulders of the states.

But as Washington-based Seyfarth Shaw Senior Counsel Larry Lorber pointed out yesterday in a phone interview, the cited cuts (some with dollar figures attached to them, others without) won’t get the DOL close to its $2.5 billion goal.

“There’s a big gap between the cutbacks announced and $2.5 billion,” Lorber said. “So the big question is, where are you going to make up the difference?”

Lorber said it’s ultimately going to have to come from salaries and expenses. He specifically pointed to the Wage and Hour Division and OSHA as possible candidates, since salaries and expenses make up a substantial part of their overall budgets.

So what does this all mean for employers?

Well, for starters, Lorber said, staff and travel cutbacks at entities such as WHD and OSHA are inevitably going to translate into less enforcement. Many employers, he suggested, may very well welcome the fact that if travel is reduced, enforcement isn’t going to happen.

But, he added, some employers aren’t going to be pleased to see many of the training programs and grants go away, as is being proposed. (The plan specifically proposes the elimination of the Senior Community Service Employment Program, which transitions low-income unemployed seniors into unsubsidized jobs—calling the program “ineffective.”) Lorber said it’s not likely that states are going to pick up the slack here.

Things, of course, can certainly change between now and when a more detailed budget makes its way through Congress. But it’s probably safe to expect that R. Alexander Acosta — assuming he is confirmed as Secretary of Labor — is going to have a fairly downsized department to work with as performs his duties. (Acosta’s confirmation hearings are now scheduled to begin on March 22.)