January 3, 2005 How You Can Help the Tsunami Victims
The estimated number of
deaths caused by last Sunday's tsunami have risen to
150,000. Unfortunately, that number will surely
continue to rise as lack of clean water, food,
sanitation and health care, as well as homelessness,
will put thousands at risk for disease.
Help is needed immediately,
and every bit counts. The following organizations are
accepting donations for aid that will be provided to
those affected by the devastation:
For more information on charitable organizations that are helping in the relief effort, click here.
Do You Know?
Astron Solutions’ National Director Michael Maciekowich celebrated his birthday on January 2nd. Look for the birthday party celebration picture in the 1/17 issue of Astronology. Happy Birthday, Mike! Speaking of birthday parties, the Astron team celebrated Michael Sohn’s birthday on 12/27 with a dinner at the ESPN Zone in Times Square. The temperatures inside and outside were cold, but that didn’t dampen our spirits one bit!
From left to right, seated Michael Maciekowich, Michael Sohn, Jennifer Loftus. Standing John Sazaklis, Jason Mitchell, Sharon Terry. Blue lighting for effect to emphasize the chilly temps!
Reader Alert!
Definition of "Dependent" Changes Under the Working Families Tax Relief Act of 2004 Beginning January 1, 2005, the definition of "dependent" will change in order to provide a consistency for various provisions under the Internal Revenue Code. Under the new definition, a "dependent" is an individual who is determined to be a "qualifying child" or a "qualifying relative." A qualifying child must meet the following requirements:
Previously the definition of dependent did not include a residence or age requirement for qualifying children. To satisfy the definition of a "qualifying relative," the individual must meet the following requirement:
The revision initially raised concern that qualified children would lose their status at age 19, making the new definition of “dependent” more restrictive; however, it should be noted that a child can become a qualifying relative at age 19. Due to the definition change, employers may need to make some adjustments to their plans, especially those outlining health and dependent care, in order to ensure compliance with the updated Section 152. The new definition may result in a broader interpretation of who is covered as a dependent requiring updates to benefits plans and any employee communication regarding benefits. For more information, click here.
Happy New Year! With 2005 upon us, it is time to reflect on the events of 2004 that have influenced the human resource profession, as well as look at what may lie ahead. Astronology addressed three main themes during 2004: legal and legislative issues, compensation and benefit issues, and HR management issues. Legal and legislative issues included changes to the Fair Labor Standards Act, employment at will, same sex marriage, Internet usage in the company, political activism, and workplace romance. Compensation and benefits focused on pay compression, “red-circled” employees, job descriptions, voluntary benefits, and compensation pay levels for 2004 and 2005. HR management topics addressed included depression in the workplace, supporting returning soldiers from Iraq, workplace stress, and internships. 2004’s most influential elements on current and future HR management strategies were the 2004 Presidential election and the economy. The re-election of George W. Bush and the increase of Republican Senators to 55 will have a profound impact in 2005. We predict there will be one or two Supreme Court replacements that will have a marked influence on many HR issues. In addition, the Bush Administration’s commitment to Social Security reform could impact other benefit programs. We may see a resulting increase in administrative burden on an already stretched HR staff. 2004 has been a mixed year in terms of the economy. Consumer debt is at an all-time high, while consumer bankruptcies fell by 2.6%. Gas prices are 26% higher than one year ago. Core inflation (excluding food and energy) rose a modest 1.5%. Gross domestic product (GDP) grew 3.5%. New jobs grew by 1.4 million. The Dow Jones Industrial Average gained 3.6%. (www.thestreet.com) While the actual condition of the economy was hotly debated, HR felt increased pressure reminiscent of a few years ago. In many sectors of the economy, the focus was on how best to retain key employees while competing in the market for new talent. According to the Bureau of Labor Statistics, employment rose in November, but the unemployment rate remained essentially unchanged at 5.4%. Several service-providing industries gained jobs. However, the number of unemployed persons (8.0 million) did not change in November. The employment-population ratio, the proportion of the population age 16 and over with jobs, edged up to 62.5%. Over the year, the number of persons who held more than one job increased by 346,000 to 7.6 million, not seasonally adjusted. Predictions for 2005 appear to point towards another year of mixed messages for the economy and the key issues HR professionals will face. In mid-December, the Bush Administration released its 2005 economic forecast. It predicts modest growth for the GDP and jobs over 2004 levels. Many economists, including Mike Englund of Action Economics, LLC in Boulder, CO, see these estimates as conservative and very cautious, perhaps as a reaction to the criticism the Bush Administration took last year for its aggressive 2004 predictions. Mr. Englund sees more aggressive economic growth of GDP and jobs. Amidst the optimism, there is growing concern over inflation. A number of organizations already have announced substantial price increases effective January 1, 2005, including Hershey, Proctor & Gamble, Starbucks, Maytag, Federal Express, Illinois Toolworks, and J.B. Transport. These increases are in response to rising energy costs and shortages in key positions. Note that while most have predicted modest base pay adjustments of 3.0% to 3.5% in 2005, these rates do not reflect [industry-specific] job shortages that often require salary adjustments well above the predicted norm. (www.thestreet.com) According to Mercer Human Resource Consulting the following are 2005’s top ten “hot topics” identified in a survey of clients nationwide:
Future issues of Astronology will explore these topics as well as others that impact HR management. Please let us know what topics you would like explored. Astronology is your information source.
Reader Poll Archive
Wonder what your fellow readers think about critical HR topics? Is your organization unique from or similar to others?Click here to view the results of our past polls!
Have a Question?
If you have a topic you would like addressed in Astronology, or some feedback on a past article, don't hesitate to tell us! Simply reply to this e-mail. See your question answered, or comments addressed, in an upcoming issue of Astronology.
Looking for a top-notch presenter for your human resource organization's meeting? Both Jennifer Loftus and Michael Maciekowich present highly-rated sessions on a variety of compensation and employee retention issues. For more information, send an e-mail to info@astronsolutions.com.
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