ReimagineHR: A Tale of Two Employee Monitoring Programs

ReimagineHR: A Tale of Two Employee Monitoring Programs

As employee monitoring technologies move out of the realm of experimentation and into the mainstream, concerns over their impact on employee privacy, data security, and trust have become even more pressing. In a breakout session at Gartner’s ReimagineHR event in London on Wednesday, Principal Executive Advisor Clare Moncrieff elucidated the difference between the kind of employee monitoring we trust and that which we don’t. She began by asking the attendees if they agreed with the following statements:

  1. “Recording the location, actions and communications of employees is a necessary and important part of business operations.”
  2. “Recording the location, actions and communications of commercial airline pilots is a necessary and important part of business operations.”

Responses to the first statement were mixed, with about half the audience saying they agreed or strongly agreed and the other half saying they disagreed or felt neutral on the subject. On the other hand, every single attendee agreed with the second statement. What’s the difference?

One reason why the recording of commercial airline pilots was uncontroversial is that it has been a standard practice in the industry for nearly 60 years. Flight recorders (commonly referred to “black boxes”) are understood to be a normal and necessary component of air safety procedures. Their value in diagnosing and correcting problems that can lead to catastrophic accidents is unquestioned, and everyone—passengers, crew, airline administrators, regulators, and the public—understands and appreciates why they are needed.

Pilots don’t see these devices as intruding on their privacy, even though they record every conversation they have in the cockpit, because their benefits are clear and because airlines only use the information for a specific and clearly defined purpose. Data from the recorders is only accessed after an incident and is never shared or published. Black box data has never been used for purposes other than intended and there has never been a known breach of flight data security in six decades of using these recorders. Also, data from flight recorders is only one of many inputs into an inquiry, which also incorporates first-hand accounts from the flight crew.

Flight data recorders meet all the key criteria of an effective employee monitoring system, according to our research at Gartner: The purpose and beneficiary of the technology is clear and consistent, access to the collected data is strictly controlled, and employees’ voices are taken into consideration when interpreting the data. When monitoring follows these guidelines, employees are much more likely to trust and accept it.

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American Airlines’ ‘Cadet Academy’ Aims to Make Pilot Careers More Accessible

American Airlines’ ‘Cadet Academy’ Aims to Make Pilot Careers More Accessible

The commercial airline industry is currently facing a shortage of pilots unprecedented in recent decades. As Jon Evans observed at TechCrunch last week, the number of active pilots in the US has fallen from over 800,000 in 1980 to just 600,000 in 2017, a quarter of whom are student pilots who are unqualified to operate commercial flights. And as Evans discovered by taking up pilot training himself, part of the reason behind that shortage is that the training is “complicated, and difficult, and stressful”; many would-be pilots get frustrated and give up long before they make it to the big leagues.

Another barrier to entry, however, is expense. The reason so many commercial pilots have military backgrounds is that the military is about the only place pilots can log the thousands of hours of flight time they need to become certifiable commercial pilots without having to pay for it themselves. With the US airline industry expecting to face a shortage of 3,500 commercial pilots by 2020, Travel Weekly’s Robert Silk takes note of a new vocational training program American Airlines is launching in an effort to build a bigger pipeline to the cockpit:

The Cadet Academy will train participants for up to 18 months at American Airlines’ partner flight schools in Dallas, the Fort Lauderdale area, Memphis or Phoenix. Students will follow what American calls “a carefully choreographed flight-training track, where you will learn the skills to become a safe and competent aviator.”

Those who finish the program will have the opportunity to interview at [American’s wholly owned regional carriers] Envoy, Piedmont and PSA. Program applicants need not have experience in the cockpit. Participants will have the option of receiving financing from Discover Student Loans. The company said it would offer loans at competitive rates, either variable or fixed, that have no fees. Payments can be deferred for up to three-and-a-half years.

American’s new program is in keeping with a trend among employers facing current or prospective shortages of talent in their industries: Rather than wait for governments or educational institutions to produce more qualified candidates, they are taking matters into their own hands. The most notable companies pursuing these self-starting workforce development strategies are tech giants like Google, Apple and Facebook, but other companies are also investing in vocational training on the blue-collar side of the labor market.

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Airlines’ Legal Campaign Against Sick Leave Mandates Targets Massachusetts

Airlines’ Legal Campaign Against Sick Leave Mandates Targets Massachusetts

Airlines For America, a coalition of major airlines including American, United, Southwest, Alaska, and JetBlue, has filed a lawsuit in federal court against Massachusetts Attorney General Maura Healey, seeking to either overturn or exempt their industry from the Bay State’s paid sick leave law. The airlines say the law violates the US Constitution by seeing to regulate interstate commerce, a right granted only to the federal government, and has hurt their business specifically by leading to more employee absences, the Boston Globe’s Katie Johnston reports:

Airlines already provide generous paid sick leave, according to the complaint, and closely monitor attendance to maintain safety and appropriate staffing levels and to keep flights running on time. But the Massachusetts law prohibits employers from disciplining workers for sick-leave absences and requires at least a three-day absence before medical documentation is required, which the industry group said hurts airlines’ ability to investigate abuse of sick leave.

The Massachusetts law, which went into effect in 2015, requires that companies with 11 or more employees provide an hour of earned sick time for every 30 hours worked, culminating in up to 40 hours of paid sick time a year. But flight and ground crews often accrue sick leave in ways that can’t be easily converted into hours worked, according to the trade group.

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United Employees Reject Bonus Lottery Plan

United Employees Reject Bonus Lottery Plan

United Airlines President Scott Kirby issued a memo to employees last Friday unveiling a new rewards program to replace its quarterly performance bonuses for all eligible employees. Lewis Lazare reports at the Chicago Business Journal that, according to the memo, the “core4 Score Rewards” program would have replaced the company’s operational bonus and perfect attendance programs with a chance for eligible employees to win prizes in a quarterly drawing triggered by the reaching of certain performance goals. Those prizes would have included luxury cars and vacation packages, as well as cash awards from $2,000 to $40,000, and even a $100,000 grand prize for one lucky employee.

Sources within United told Lazare that the memo “quickly ignited a firestorm” among employees. Amid the ensuing backlash, United said on Monday that it was putting the plan on hold, according to CNBC’s Leslie Josephs:

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How Investors Failed to See the Talent Connection in American Airlines’ Latest Wage Hike

How Investors Failed to See the Talent Connection in American Airlines’ Latest Wage Hike

American Airlines’ market value took a hit last week after its CEO Douglas Parker told investors of a plan to raise wages for crew members by an average of 6.5 percent, or a total of $930 million through 2019. Amid criticism, Parker stood by his decision, but within 48 hours, the company’s stock dropped by more than 8 percent, wiping out roughly $1.9 billion in American’s market value.

Rising fuel and labor costs are eating into profit margins across the industry, and low-cost competitors are making it difficult for airlines to increase fares. From investors’ perspective, this unexpected pay raise was simply not justified and raised the risk of an industry-wide wage war. So was American’s punishment fair?

Missing the Talent Connection

After the announcement, Citigroup analyst Kevin Crissey wrote in a note to clients: “This is frustrating. Labor is being paid first again. Shareholders get leftovers.” Of course, this simply is not true. As Los Angeles Times reporter Michael Hiltzik observed, “From 2014-2016, American Airlines authorized $9 billion in share buybacks, money that went directly into shareholders’ pockets… By contrast, the pay raises will cost American $1 billion over three years.” It is however, still too common for investors to view payments to employees as a zero-sum loss to shareholder value.

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