August 13, 2008

The Latest Business Headlines from WWJ Newsradio 950

GM Fighting Health Fraud | General Motors Corp. is cracking down on workers who are collecting medical benefits for ineligible dependents, Reuters reports, citing The Wall Street Journal. | Story

Ford Will Survive, Exec Says | Mark Fields, Ford's top American executive, says he is confident the company has enough cash to weather losses and make a profit again. | Story

Arvin Innovation IPO | The car-parts business being spun off from ArvinMeritor is on track to becoming a publicly traded company, Dow Jones Newswires reports. | Story

House for $1 | A dilapidated home on Detroit's east side was listed for a buck recently, an example of how depressed the real estate market has become, The Detroit News reports. | Story

Casino Comps Controversy | The state will overhaul a program offering coupons for free meals at restaurants near Detroit casinos, the Detroit Free Press reports. | Story

McCain in Michigan Today | John McCain comes to Michigan Wednesday, in search of votes and campaign dollars. | Story

Stocks Snap Winning Streak | The market fell as the financial sector was hit by more evidence of credit troubles. The damage was offset by crude's retreat to $113 a barrel. | Story

This Week in 'Your People'

A proactive approach is needed to deal with boomer retirements.

Poll: Companies expanding 401(k) programs.

How to balance recruitment and retention efforts.

Federal ruling halts some pension-fund transfers.

Resume lies more common during economic downturns.

Ohio voters could consider paid sick-leave referendum.

Today's Worldwide Automotive Report podcast.

News from CNET.

DEVELOP A PLAN TO PREPARE FOR THE BABY BOOMER RETIREMENT SURGE

Most employers would be in trouble if half their staffs suddenly walked out the door. But without the right retention strategies, succession plans, and training programs in place, an exodus of that magnitude could strike any number of businesses in a few short years.

It's a fact: Many employers are ill-prepared for the impending exodus of 78 million baby boomers from the workforce. And with 25 percent of all U.S. employees nearing retirement age, there's not a lot of time left for companies to develop solid long-term strategies.

While some employers still are doing little to prepare, others are starting to take a closer look at the potential impact of these retirements on their workforce. In a recent survey of 140 mid-size and large employers, for example, Hewitt Associates found that 55 percent already have evaluated the impact that retirements could have on their organizations. And of those surveyed, 61 percent said they have developed or will develop special programs to retain employees nearing retirement. More...

Companies Expanding 401(k) Programs, Poll Finds

For many companies, traditional pensions are a thing of the past, but a recent Charles Schwab Corp. poll of senior finance executives shows that many companies are expanding their 401(k) programs.

Based on the findings, 84 percent of those polled said they believe a 401(k) plan is necessary for attracting and retaining employees, says a recent Associated Press article. Sixty-seven percent said they believe offering a 401(k) plan helps boost a company's reputation, and 58 percent said that offering such a plan contributes to a company's long-term financial success. As part of the increased focus on 401(k)s, an increasing number of companies are encouraging employees to save more through automatic enrollments, increasing matching contributions, and other incentives. To read more, click here.

RECRUITING NEW HIRES, RETAINING OLDER WORKERS: About half of Northrop Grumman's 122,000 employees will be eligible for retirement in the next five to 10 years. But the Los Angeles-based defense and technology corporation is looking into some innovative ways to keep older workers on board, according to a recent U.S. News & World Report story. Ian Ziskin, the company's chief human resources and administrative officer, says the company increasingly is looking at ways it can convince workers to delay retirement and remain in the workplace longer. And over the next few years, it's expected that mentoring and coaching programs will assume greater importance at the company. For more, click here.

U.S. TREASURY RULING HALTS SOME PENSION TRANSFERS: The U.S. Treasury ruled last week that employers are prohibited from transferring pension plans to third-party entities if there is no corresponding transfer of business assets, operations, or employees, according to a recent Reuters article. Federal law requires that qualified pension plans be established by employers for the “exclusive benefit of its employees or their beneficiaries.” According to the U.S. Treasury, however, the transfer of a pension plan to a third party without a corresponding transfer of business assets is a move that benefits the third-party firm, whose sole business aim is to profit from the plan. To read more, click here.

PENSION CUTS IN EUROPE FUEL UNREST, NEW POLITICAL PARTY: Talk of pension cutbacks and changes in Social Security benefits is enough to raise the ire of most workers here in the United States. And in Europe, where some of the talk has turned into action, many workers are up in arms – in fact, some have formed a new political party over the issue, says a recent New York Times article. Several countries have raised the age at which people are eligible for retirement benefits, and some have imposed additional restrictions on who qualifies for them. Italy has raised its retirement age to 59. Germany curbed annual government pension increases and raised its retirement age from 65 to 67. And France has required public-sector workers to put in 40 years of service before qualifying for a pension. In response to some of these changes, a Pensioners Party is gaining ground. Its platform: more generous pensions for retirees. To read more, click here.

ECONOMIC SLOWDOWNS BOOST RÉSUMÉ FIBBING: Recent studies show that a weakened economy and sluggish job market often tempt candidates to stretch the truth on their résumés. Accu-Screen, an employment background screening firm in Tampa, Fla., says false résumé information has spiked in the past 14 years during economic downturns. In fact, the company's data shows that 43 percent of all résumés and job applications contain false information. More...

PAID SICK LEAVE MAY BE HEADED FOR OHIO VOTE: Employers in Ohio soon may be required to provide paid sick leave for workers. A group called Ohioans for Healthy Families is pushing to get the issue on the November ballot – a move that is drawing criticism from business groups and Republican legislative leaders, according to a recent article in the Cleveland Plain Dealer. The initiative would require companies with 25 or more employees to provide full-time workers with seven paid sick days that could be taken in one-hour increments. If passed Ohio would become the first state to require paid sick days. Business lobbyists and lawmakers killed a similar bill in California last week. To read more about the Ohio bill, click here.

PAY IS GOOD, BUT TURNOVER IS HIGH FOR TOP-RANKING EXECS: The pay for executive positions is handsome, but apparently it's not enough to keep most high-ranking executives on the job very long, says a recent ExecuNet survey. Despite an increase of 5.7 percent in executive pay during the past year, top executives only remain at companies for an average of 3.2 years. More companies are having top execs sign non-compete agreements when they hire in, apparently because many tend to go work for competitors when they leave the organizations that hire them. Sixty-five percent of companies use non-competes now, compared to 48 percent in 2007. To read more, from the New York Times, click here.

BE STRATEGICALLY PHILANTHROPIC: While most companies give to charity and other causes, there are ways to make sure your company's goodwill efforts are more strategic, says a recent Harvard Business Review article. If done properly, philanthropy can boost a company's competitive edge. To find out how, click here.

WORLDWIDE AUTOMOTIVE REPORT PODCAST: Ford President of the Americas Mark Fields says he still sees the U.S. moving to small cars. A top supplier executive says Washington needs educated about the auto industry.

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