The situation to Discuss: You are the HR Manager of a large customer service center for a global insurance company specializing in supplemental…

The situation to Discuss:

You are the HR Manager of a large customer service center for a global insurance company specializing in supplemental insurance policies. These types of coverage might include cancer insurance, disability income insurance, unemployment supplemental income, and term life for employee spouses and children. These are the types of insurance policies which are offered to employees, but the employer does not pay anything toward the premium. This center handles all incoming customer phone calls. Customer Service Operators (CSO) handle questions about policies, claims for benefits, problems in processing claims or receiving benefits (money), etc. You can imagine that the customers can be in any state of mind, from grief stricken, to angry, to happy about having coverage.In this center you have 500 CSOs, covering the phones from 7 am to 11 pm CST, since you have customers all over the United States. There are other call centers that handle the other markets, such as Asia, Europe, and South America.Each group of CSOs includes about 25 employees, covering an 8-hour shift. The two shifts overlap during the middle of the work shifts: One from 7 am to 3:30 pm, and the other from 3 pm to 10:30 pm (with an unpaid lunch break of 30 minutes).  During the overlap, the shift supervisors meet, discuss what occurred during the first shift, and what needs to be handled on the second.  The CSOs are non-exempt, and are thus paid hourly wages. If they work overtime, which must be requested and/or pre-approved by the Supervisor, they are paid in accordance with FLSA and OFCCP wages: 1.5 times the hourly pay for anything over 8 hours per day or 40 hours per week, whichever is greater.  This is non-negotiable, because to violate could bring the DOL down hard.The Problem:

When the CSOs work overtime, they can make more than their supervisor because the supervisor’s job is exempt and does not qualify for overtime pay. The supervisor position qualifies for comp time, but the company is so busy, it is hard to schedule taking the comp time.You are finding that fewer and fewer CSOs are applying for the Supervisor positions when posted on the internal job opening board. After investigation, you find that CSOs do not want to take a job that might be potentially a cut in pay (no overtime) and take on the headaches of a Supervisor. How can you, as the HR Manager, remedy this situation?Hint #1: Conduct a little research and find out what is occurring “out there” in addition to what is addressed in your textbook.

Hint #2:  Before you post a suggested solution, ask yourself, If I do this, 

  • Will it solve the problem for the long-term?
  • Could it cause other problems in other jobs’ pay, or in the entire organization? 

Hint #3:  If I told you this is not about compensation (which includes pay, benefits, incentives, and other rewards), what would you do? 

Be creative, but legal.                    

RESOURCES:  Find at least two (2) peer-reviewed journal articles and one (1) federal government web page (DOL, FLSA, etc.) addressing this type of situation.  Use your findings to recommend a solution.

Surname 1 NameInstitutionCourseDateHuman Resources Issue On Overtimes and Compensation offsCase SummaryIn this case the company deals with offering of insurance cover to its clients and the…

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