Reference no: EM132887952

During the HR Manager's audit at the India plant, The HR manager also discovered that the plant has not traditionally utilized any form of progressive discipline. Managers keep track of issues in their own way without any formalized process. Now that the plant is part of a global, publicly traded company, the lack of processes puts the entire organization at risk for several areas of compliance. How can HR add value in this context?

• HR stands in position to hold operational managers accountable for their jobs. In this case, appropriate discipline needs to be given to these managers for not abiding by any standard process.
• HR has to evaluate situations in unison with the Legal and Quality departments. All share accountabilities for operational risk and all need to get together for a cross-functional response to the situation.
• The exit process for employment can be lengthy and present too much risk to a business if not handled well. HR is able to assess risk, make recommendations for process improvement, and execute strategic plans.
• HR has a commitment to creating the best employee experience, which stops employees exiting from a business. When processes are not well thought out, the most detrimental impact is first felt by employees.

After looking at the layoff and separation plans, the Finance Manager suggested that the easiest way to protect company profitability is to cut those with the highest pay. How should the HR Manager respond to this perspective?

• Finance does not have any actual involvement in the decision-making process for who will be let go. The accountability rests on Human Resources to decide and then to inform other stakeholders of the actions.
• Those that are highly compensated and even possibly overqualified are usually more experienced workers over the age of 40. This criteria typically puts companies at risk of breaking ADEA laws.
• Those that are highly compensated are also the decision-makers. Laying off all or most of the decision-makers will put the company at risk of complete failure.
• In partnership with Finance, a re-distribution of wages may relieve the pressure of layoffs by structuring labor costs differently. The ADEA allows exceptions for bona fide executives' wages to be reduced as a cost-cutting measure.

Companies face both legislative and social pressure to take care of employees in many areas of life. In relation to the separation process, regardless of reasons for separation, why should HR departments pay special attention to COBRA?

• Providing terminated employees certain rights under COBRA is critical so that the company can avoid potential EEOC claims.
• Providing terminated employees certain rights under COBRA safeguards the company from potential ADEA claims for those over the age of 40.
• Providing terminated employees certain rights under COBRA allows continued coverage under group health plans.
• Providing terminated employees certain rights under COBRA ensures that withdrawals from ERISA backed accounts occur without tax penalties.