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Onboarding should be done during the job interview

We’re trying to improve our department’s capability in hiring given the high turnover rate of our new hires in the first year of their employment. We’d like to change our interviewing strategies to secure the best and the brightest workers and retain them for the longest time. What would you suggest? — Something New.
The owner of a photography studio tells the story of a college teenager who came in with a framed picture of his girlfriend. He wanted the photo duplicated to look like the original. In removing the photograph from the frame, the professional photographer noticed the inscription on the back, written by the girlfriend:
“My dearest Tommy, I love you with all my heart. I love you more and more each day. I will love you forever and ever, I am yours for all eternity.” It was signed “Dianne” and contained the following P.S.: “If we should ever break up, I want this picture back.”
Job interviews are just like conversation between two singles. Interviews and dating are almost the same, except that they should not be treated like “marketing a used car,” says Richard Bolles, author of What Color is Your Parachute?
This two-way “conversation” is best used to decide if they want to go steady, towards a long-term partnership. More often, the prospective employer (or a male suitor) initiates the process by advertising a vacancy, and if there are interested applicants, invites the applicant to a job interview (or a date.) The interview (or date) includes a “data-collecting process for the employer,” says Bolles, who forgets or may have ignored the fact that a job applicant is also equally interested to discover if there is a mutual fit in the long-term.
More often, this is the root cause of the high turnover of new hires. If you’re the employer, your tendency is to fast-track the onboarding of new hires as you focus more on knowing if the applicants are qualified for the job.
But, this is patently wrong! The job interview should also include enough time so the applicants are informed about the company’s culture, vision and values, career development, succession planning, and the management style of its bosses, among others.
In other words, the onboarding process should be done before hiring the new workers, and not after a hiring decision is done. To save time and effort, it is best limited to the top two short-listed candidates, at least for those applying for key positions. Even if the job candidates say they have no questions after the interview, the hiring manager should insist on explaining what’s in store for them when finally hired.
This is to avoid, if not eliminate troublesome “surprises.” Now, here are some of the important topics that the hiring manager should initiate discussing with the prospective new hires so they would know what’s in store for them:
One is the management style of the organization. Does it foster a highly competitive environment among the managers and workers? How does management treat the ideas or suggestions of its people? How are the managers empowered to make basic decisions? How would you describe the style of my prospective boss?
Two, career development and promotion prospects. What’s the average number of years before an employee is promoted? How does the company assist the workers so they can be assured of promotion? How would you describe the system to ensure that its employees are given a fair treatment in promotion? How would you balance meritocracy and seniority?
Three, performance management system. What kind of performance appraisal do you have? What are the things you’ve considered to ensure the objective implementation of such policy? Is there an appeal system in place for those who are bypassed for promotion? Were there instances in the past of people bypassed for promotion? Why did it happen, in the first place?
Four, employee morale and satisfaction levels. What’s the average turnover rate of employees who are occupying the same position? How about absenteeism and tardiness rates of people working in the same department where I am supposed to work? What’s the basic reason for this vacancy?
Five, manpower situation and succession plans. Why did you not promote someone from within? Why are the workers not qualified to replace the resigned employee? Why can’t they be corrected with coaching and training, among many interventions? Were there instances of an employee promotion due to politics?
Six, status of the organization in the industry. What’s the current standing of the company compared to its competitors? If it is number one, how does it intend to maintain that position for the next three years? If it’s holding the second or third ranking in the industry, how does it intend to secure the top spot in the short-term?
The answers to these questions may be confidential. But there are many ways to skin a cat. You can give broad-stroke answers or paraphrase those questions so they would elicit the right answers from job candidates. They can be rephrased by asking situational interview questions instead.
For example, instead of giving an exact figure for your company’s turnover, you can give a rough figure and emphasize how the organization is much better than its competitors. If you’re not ready to give an answer, simply tell the job applicant that you will discuss the matter in your next meeting.
Just the same, you as an employer (or a suitor) who wants to start a relationship should emphasize how an honest and trustworthy work partnership works to the advantage of both parties in the long-term.
ELBONOMICS: If you’re honest, you don’t have to memorize everything.
 
E-mail your questions to elbonomics@gmail.com or via https://reyelbo.consulting

Packing a whole lot of wallop

By Anthony L. Cuaycong
THOSE NEW to role-playing games should be forewarned. Fallen Legion: Rise to Glory is an acquired taste and takes some getting used to. As a definitive collection of titles and content previously released on the PlayStation 4 and the PS Vita under the Flames of Rebellion and Sins of an Empire banners, it packs a whole lot of wallop. The Switch version, published by NIS America, presents you with a choice to start: Be on either side of a conflict in Fenumia, an empire bent on territorial expansion, with set objectives, and their attainment, dependent on point of view. In the end, though, the need for a full appreciation of the presentation and the content may yet spur you to go through both campaigns.
The good news is that Fallen Legion: Rise to Glory earns its keep. The completist in you will want to get the whole story by first playing Princess Cecille, whose ascent to the throne following the death of her father puts her in the frontlines, and then Legatus Laendur, whose opposition of and to the status quo stems from his belief that corruption has pervaded the empire. Going through the entire experience in reverse order will yield as much enlightenment.
Regardless of perspective, progression in Fallen Legion: Rise to Glory comes by way of a map that shows cutscenes and battle points, with combat drawing on the strengths of your principal character and the other members of the party. Called Exemplars, these companions find their specific attributes enhanced by gemstones, gained through encounters in the battlefield. Which is to say repeating favorable combat situations will yield tangible benefits, a must given the absence of retries or extra lives.
As elaborate as the premise may be, the battles take center stage in Fallen Legion: Rise to Glory. The mechanics border on the complex, but, on the flipside, motivations come from hard-earned victories. And even as the endeavors get easier over time, it helps that the game is visually and aesthetically pleasing, with the hand-drawn art style paying homage to such notables as Odin Sphere and Dragon’s Crown. Meanwhile, the absence of any action and interaction in which the story is told provides a counterbalance; the narrative advances through text on the screen superimposed on still pictures of the characters.
Parenthetically, Fallen Legion: Rise to Glory boasts of outstanding sound direction; gameplay audio is complemented by music tracks that appropriately contribute to the ambience. And while they tend to be repetitive, particularly when you’re done with one campaign and are going through the other, they’re well designed and suited to convey the right sentiments at the right times. Considering how both the narrative and the action can occasionally devolve into tedium, they’re a decided boon.
In terms of controls, Fallen Legion: Rise to Glory is decidedly workmanlike. There are no touchscreen or motion options, so you are left to choose between the Joy-Cons and the Pro Controller. That said, neither presents any handicaps whether docked or on the go. In fact, they more than do the job they’re set out to perform — with no frills and no gimmicks, but no input lags as well.
All told, Fallen Legion: Rise to Glory is an extremely competent title worth its $39.99 price tag. It’s certainly the best version of Fallen Legion in any gaming gadget, bar none, a welcome development if you’re aiming to double dip. And if you’re new to YummyYummyTummy’s creation, you’ll get immersed, if occasionally lost, in its lore; spend enough time learning the intricacies of its combat system, and you’ll find yourself rewarded with some 60-odd hours in Japanese RPG heaven.

How PSEi member stocks performed — June 28, 2018

Here’s a quick glance at how PSEi stocks fared on Thursday, June 28, 2018.

Do stocks go up or down once a lock-up period ends?

Beverage industry wants sugar warnings for food products too

By Janina C. Lim
Reporter
THE beverage industry, on which the government plans to impose sugar content labels, has said that the requirement must apply to packaged food products as well.
Trade Secretary Ramon M. Lopez told reporters on Thursday in a mobile message that in a meeting with beverage industry stakeholders, the latter wanted the warning label policy to apply to sweetened food products.
“The labeling requirement must also cover packaged food, according to the beverage industry,” Mr. Lopez said, referring to the outcome of the consultation.
Mr. Lopez has warned the beverage industry to be ready to comply with warning label rules by August, though he added that the rules are still being worked out.
“I need to still meet FNRI (Food and Nutrition Research Institute) and National Nutrition Council and continue research work to determine a reasonable benchmark for a definition of ‘high in sugar,’ and which products must be included,” Mr. Lopez said.
He also noted that the beverage industry was worried that the labels will be characterized as a “warning” or “caution,” which could “weaken demand further” after the government’s tax reform program imposed excise taxes on sugar-sweetened drinks.
“We emphasized that we are not really taxing but more to raise consciousness of consumers on sugar content — more of making more prominent the sugar content of the product. Similar to calorie content in the labels,” he added.
“There is openness from the industry in putting a mark in front of the product indicating the sugar and calorie content, as long as there is no ‘warning’ sign because they say sugar per se is not totally bad.”
The DTI is proposing that manufacturers indicate the amount of sugar per gram of a product, instead of the current standard where packaging indicates overall sugar content.
“Whatever the decision, we will set a transition period to allow them to use up current packaging,” Mr. Lopez added, noting that this would help keep firms from bearing added costs.

Meralco power sales dampened by cool weather

ELECTRICITY sales in June eased because of cooler weather, tempering power sales growth for the first half to around 6.5%, Manila Electric Co. (Meralco) said.
“For the first five months year-to-date, (we had) growth of 7.5% per annum, but June is trending a little softer because, number one, the rains have started. It’s been cool during the last three months — April, May and June,” Oscar S. Reyes, Meralco president and chief executive officer, told reporters.
“So I think we will probably end June at roughly around 6%, 6.5%,” he added in a chance interview after the annual shareholder meeting of another company on Wednesday where he sits on the board.
He added that sales in the first half should be better year on year, without elaborating.
Based on Meralco’s previously released figures, consolidated sales volume in the first half of 2017 grew by 3% year on year to 20,338 GWh, despite the high base in the previous year.
Mr. Reyes said the sales improvement was “because I think to the country’s credit, industrial and commercial activities have been strong. Maybe, it’s the growth of the economy.”
“We’d like to see what happens after June because June was low,” he added. “Growth for the month of June is below 3%.”
Mr. Reyes declined to give Meralco’s profit projection for the year.
“We’ll probably see whether we can give some guidance by the third quarter,” he said.
In 2017, Meralco’s consolidated energy sales volume rose by 5% to 42,102 GWh despite the cooler temperatures during the first four months of last year. Excluding the power sales of its provincial units, the company breached the 41,000-mark at 41,528 GWh.
Mr. Reyes said electricity supply could be a problem in the coming years because of the delays encountered by some of its power plant projects in securing regulatory approval of their power supply agreements (PSAs).
Banks do not approve funding without an approved PSA as this ensures a steady revenue stream for the developers and improves the chances that loans will be repaid .
“Banks put more money [in a project] . . . They put up 60-70%, and banks will not put money if they don’t see that it will be profitable. People forget that,” Mr. Reyes said.
He said even if Meralco is able to acquire existing power plants, it would not be sufficient to meet future demand.
“It takes five years [to build a power plant],” he said, referring to the company’s pending projects.
“Once the existing capacity has been used up, there will be no supply to answer for load growth and plant outage,” he said.
“We remain hopeful that power supply agreements for new capacity [will be approved]… I think that’s the prudent thing to do,” he said. “It’s in the interest of everyone. It’s in no one’s interest not to build capacity.”
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

Finance dep’t sees GDP targets within reach due to revenue, spending growth

GOVERNMENT revenue and disbursements as a share of the economy rose in the five months to May, the Department of Finance (DoF) said, improving the prospects for achieving economic growth targets this year.
In an economic bulletin, the Finance department said revenue effort grew to 18.17% of gross domestic product (GDP) in the five months to May, 1.43 percentage points higher than the year-earlier rate.
“Tax effort also rose by an unprecedented 1.19 percentage points, from 15.14% to 16.33%, the highest first five months’ tax effort ever achieved,” the DoF said.
Expenditure effort, meanwhile, increased to 20.29%, up 2.48 percentage points from a year earlier, which the DoF said is “the highest first five months’ expenditure effort since 2003, thus boosting its contribution to GDP growth.”
“Fiscal space expanded by TRAIN 1 and tax administration enabled government to boost investment and growth,” the DoF said, referring to the Tax Reform for Acceleration and Inclusion Law, or Republic Act No. 10963 which went into effect in January.
“Strong macroeconomic fundamentals backed by tax reform and the Build, build, build program will continue to boost economic growth closer to the optimum 7-8% level as the competitiveness of the economy rises and more jobs are created,” the DoF said.
The law increased excise tax rates for fuel, automobiles, tobacco, minerals, coal, and imposed new levies on sugar-sweetened beverages, removed some value-added tax exemptions, and reduced personal income, donor, and estate tax rates, while also modernizing tax administration.
The DoF has said that at least nine large-scale infrastructure projects are moving into the construction stage this year. The National Economic and Development Authority (NEDA), meanwhile, said on Wednesday that there are 16 approved big-ticket projects expected to be completed by 2022 — more than the eight initially expected.
The Bureau of the Treasury reported on Monday that overall government revenue in the first five months of the year grew 19% to P1.19 trillion — exceeding its target that period by 7%, or some P81.5 billion.
Of this amount, tax revenue accounted for P1.07 trillion, up 18%.
Government spending, meanwhile, surged 25% to P1.33 trillion by the end of May.
The DoF also noted that the fiscal deficit settled at 2.1% of GDP, well below the 3% target for full year 2018.
The January-May fiscal deficit is P138.7 billion, 118% wider than the year-earlier level.
This is equivalent to 26.48% of the P523.7-billion programmed budget shortfall for the full year. — Elijah Joseph C. Tubayan

PCCI warns subsidies to low-wage earners hard to track

A BUSINESS group said subsidies that the government intends to provide to low-wage workers will be difficult to track, suggesting that many payouts could go to undeserving recipients.
“It’s hard to track who will receive the money,” said Philippine Chamber of Commerce and Industry (PCCI) Chairman George T. Barcelon. “It’s government money, it’s taxpayer money.”
The Department of Labor and Employment (DoLE) said earlier this week that it plans to provide subsidies to 4.1 million minimum wage earners, a proposal which is still subject to approval by the Office of the President. The subsidy is P200 monthly over the next three years.
Mr. Barcelon said he prefers helping workers via wage hikes that undergo the legal process and consider the competitiveness of the Philippines compared to other countries.
“There is a process in tripartism so follow the process,” he said when asked for comment about regions where wage increases are being sought.
“But have in mind our competitiveness. Let’s not lose sight of that,” he added.
“I’m very open to talking (about) increasing salary but bear in mind, what is the impact?” Mr. Barcelon said in an interview with reporters on Thursday.
He stressed that DoLE should concentrate on creating jobs for Filipinos, besides focusing on wages.
“It’s not DoLE’s only job to be concerned with those employed. DoLE should help the unemployed by making it easier for them to get jobs,” Mr. Barcelon said.
He added that inflation is a valid reason for a wage increase though he warned against a sense of “entitlement” to large wage adjustments.
“When you add it all up, there is 13th month pay, paid vacation and sick leave,” he said.
Regional Tripartite Wage and Productivity Boards (RTWPBs) are expected to submit by July their recommendations for their regions’ wage adjustments.
Labor Secretary Silvestre H. Bello III said he expects some boards to announce supervening conditions and increase minimum wages before the anniversary of their last wage order.
Wage boards cannot act on petitions filed less than one year since they issued their last order. — Gillian M. Cortez

Transportation dep’t to disqualify bidders with pending gov’t cases

THE Department of Transportation (DoTr) has issued a new memorandum that will keep companies with pending cases against the government from bidding for any contracts.
In a statement on Thursday, the department said it adheres to the Government Procurement Reform Act, which means it will deal with bidders that have a “clean record” as far as litigation with government is concerned.
“Prospective bidders who want to do business with government must have a clean record, and must have a history of good dealings with the government. It’s that simple,” Transportation Secretary Arthur P. Tugade was quoted as saying.
The DoTr told reporters in a Viber message the memorandum was issued on Tuesday by Undersecretary for Legal Affairs and Procurement Reinier Paul R. Yebra.
In the statement, he said interested bidders must now include a certification in their Bid Data Sheets that they have no pending government cases.
“Failure of a bidder to comply with the requirement or submission of a false Certification shall constitute grounds for automatic disqualification,” Mr. Yebra was quoted as saying.
He added this measure is one of the department’s efforts to ensure the government’s bidding projects will not be an avenue for corruption.
The DoTr’s current projects include the construction of the North-South Commuter Railway, the expansion of the passenger terminal building at the Lubang Airport, and the construction of the Higatangan Port in Biliran, Leyte. — Denise A. Valdez

Alien work permits suspended for Boracay employment

THE Department of Labor and Employment (DoLE) has suspended the issuance of alien employment permits (AEP) for those intending to work on Boracay in the wake of the resort island’s six-month rehabilitation.
According to DoLE Labor Advisory 11, Series of 2018, “The temporary suspension on the issuance of AEPs (for persons) intending to be employed on the Island of Boracay is hereby enforced.”
The suspension will last until Boracay opens its doors to tourists again.
The suspension applies to “foreign nationals who intend to engage in gainful employment” and “foreign nationals with AEPs who intend to renew their employment permits” DoLE said in its Labor Advisory.
DoLE has exempted from the suspension foreign nationals who intend to perform research and work related to the island’s rehabilitation.
Foreign nationals who are permanent residents and those who hold temporary/probationary resident visas under Section 31 (a-f) of the Philippine Immigration Act and Section 3 of Republic Act No. 7917 or the Alien Social Integration Act of 1995 are not affected by the suspension. — Gillian M. Cortez

Local Gov’t Code amendments seeking bigger revenue share

SENATOR Juan Edgardo M. Angara has filed bills seeking to reform the present Republic Act No. 7160 or the Local Government Code, including measures to include the local government share of some revenue generated by value-added tax (VAT).
Among them is Senate Bill No. 1788, which aims to increase the source of funds given to local government units (LGUs) by including in the computation of internal revenue allotment (IRA) the VAT paid on imported goods collected by the Bureau of Customs (BoC).
In a statement, Mr. Angara, chair of the Senate committee on local government, said LGUs should have enough power and funds to combat crime and illegal drugs in order to ensure public safety.
He also said the bills were the result of the committee’s public consultations in reviewing the Local Government Code, which remains unchanged since its enactment in 1991.
“These measures will enable our LGUs to effectively perform their duties as frontliners to their constituents. Results from our consultations show that many local government(s) do not have enough funds to implement their programs,” he said in a statement on Thursday.
Aside from Mr. Angara’s bill, Senate President Pro Tempore Ralph G. Recto and Senator Aquilino L. Pimentel III have filed bills that will increase the IRA of LGUs from the current 40% to a 50% share.
Under the current system, LGUs are given 40% share of the country’s internal revenue. LGUs can also collect local taxes and fees or could seek grants and contract loans with any domestic private bank and lending institutions.
While senators introduced reforms for LGUs through legislation, the Constitutional Commission to review the 1987 Constitution is considering including government revenue-sharing provisions in its proposed federal Charter, setting the share to 50%-50% between the national government and federated regions.
“In one of provisions, the sharing was 50-50 for the federal and the local levels on certain income tax collected including — because currently the 60-40 is only on income tax but (Bureau of) Customs taxes, and other taxes are not included. So what we are proposing today is a 50-50 share and again aside from the (income tax) revenue share of LGU, out of the Customs tax collection, 50% will be given to federated regions,” Commission member Eddie M. Alih said during briefing at the Philippine International Convention Center (PICC) in Pasay City.
Mr. Alih discussed the proposed reforms for LGUs after he recounted the concerns raised over LGUs losing their powers under the proposed federal government during their regional consultations. He said the shift to federalism was meant to empower the federated regions, a process which includes giving the LGUs more powers to generate revenue and greater allocations from the IRA.
“We are not thinking of shifting to federalism for the good of the central government. This is for the good of the regional government. This is to address inequality of growth of all the regions today,” he said.
Commission member Susan U. Ubalde-Ordinario also said the consultative body is also discussing transferring the revenue from documentary stamp tax from the national government to the federated regions.
Asked if the proposals of ConCom for LGUs will require amending the LGC once the new Charter is in place, Ms. Ordinario said the law will have been superseded by the new Constitution. She said the Administrative Code of the Philippines will also need amendment.
“This is because the relationships of government agencies and their structures will be affected. But that is now going to be up to the Transition Commission,” she said. — Camille A. Aguinaldo

Peso slips to new low

THE PESO weakened anew on Thursday, slipping to a fresh 12-year low, as the dollar went up amid renewed trade war concerns.
The peso ended the session at P53.515 against the greenback, four centavos weaker than the P53.475-per-dollar finish on Wednesday.
This was a fresh low for the peso in nearly 12 years or since it closed at P53.55 against the greenback last June 29, 2006.
The peso traded weaker the whole day, opening the session at P53.50 against its US counterpart. It slipped to an intraday low of P53.545, while its best showing for the day stood at P53.49.
Dollars traded stood at $621.49 million on Thursday, down from the $918.7 million that switched hands the previous day.
A trader said the peso traded quietly versus the greenback on Thursday due to the “strong dollar.”
“We saw a very large selling at P53.55 level so the market was forced to be locked in range,” the trader said in a phone interview.
“There seems to be a wall — everyone wants to sell at that level,” the trader added, noting that the market saw some big banks at those levels.
Reuters reported that the dollar held near one-year highs as conflicting signals about the trade spat between Washington and other economies prompted buying of the currency.
The dollar index inched higher by 0.3% to 95.51 against a basket of currencies.
Meanwhile, another trader said the peso closed at a near 12-year low ahead of the release of the first-quarter US Personal Consumption Expenditure (PCE) figure.
“A stronger [PCE] reading might bolster expectations of a fourth rate hike from the Fed this year,” the trader said in an e-mail.
For Friday, the first trader expects the peso to move between P53.40 and P53.60 against the dollar, while the other gave a weaker P53.45-P53.65 forecast range.
“The local currency might continue to weaken [Friday, June 29] amid expectations of a higher PCE inflation data for May,” the second trader noted. — Karl Angelo N. Vidal

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