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Disaster: It Could Happen to You. Is Your Organization Prepared?
"By failing to prepare, you are preparing to fail."
Benjamin Franklin
No one likes to imagine worst-case scenarios, but planning ahead can help you
effectively manage a crisis with mitigated loss and limited property damage. With a
thorough assessment of your existing procedures and a commitment to prevention, you
can put some best practices to work today to ensure employees are safe and important
business information is safeguarded.
The year 2005 might, unfortunately, be remembered best for its devastating disasters - a
costly reminder that misfortune can happen anyplace or anytime. Sadly, it also revealed
that we're asleep at the wheel. As business leaders, you should be making provisions for
disaster recovery planning and preparedness in your organizations - before the next
headline-grabbing disaster strikes.
The transit strike that crippled New York City, the hurricanes and floods that ravaged the
Gulf Coast, and the tsunamis that swept away resorts and villages in Southeast Asia
represent potential disasters that warrant getting a disaster recovery strategy in place in
your organization. These incidents, along with other types of threats such as the avian
flu pandemic, are prompting businesses to go from an "it can't happen here" attitude to a
"we need to be prepared" line of attack.
Is your organization prepared to handle these potential disasters?
Hurricanes
Tsunamis
Floods
Fires
Terrorist attacks
Flu pandemics
Computer viruses
Identity theft
Striking workers
Broad power outages
Transit shutdowns
Make disaster recovery planning a priority
Since all businesses are prone to a multitude of different disasters, then all could benefit
from a disaster recovery plan that helps them prepare, save lives, secure assets and
ensure that they will remain in business long after flood waters recede, fires are
extinguished and buildings are rebuilt. And, because we spend the majority of our
waking hours at work, businesses have a responsibility to prepare for the safety of all
workers and customers in any type of emergency.
An ounce of prevention is worth a pound of cure. That old saying holds particularly true
when it comes to businesses investing resources to withstand a major natural disaster or
terrorist attack. There are resources to help companies establish an effective disaster
and recovery plan. While some plans may be customized according to the business
type, size or location, there are several key elements (see sidebar) that pertain to all
companies, big or small, no matter where they are located.
When creating a disaster recovery plan, it's essential to ask and answer important
questions about your business. Who will declare disasters and how? What are the
critical applications you're trying to protect? How will you convene disaster-recovery
team members if communications are down and members are evacuated to unknown
locations? Do you have arrangements to quickly resume critical applications? How can
you make sure employees continue to get paid?
Create or refine your disaster recovery plan
Here are some tactics to consider when planning or refining your disaster recovery
strategy:
Provide a working, proactive definition of a business disaster.
Recognize the major types of disasters that might impact your business(es).
Establish a planning team that includes a cross-functional group of employees.
Determine ways to communicate the plan to all employees.
Implement optimum shelter and evacuation procedures.
Provide specific guidelines for protecting employees, clients, customers and
workplace facilities.
Determine back-up systems and/or off-site storage to protect key assets,
documents, information (such as financial data, databases, custom software, HR
records, emergency contact lists and insurance files, including copies of signed
contracts and proof of ownership or proof of loss).
Role-play and practice your plan.
Plan for the continuation of business operations, ideally with minimal impact to
customers, and protect the physical and psychological health of employees.
Establish backups and understudies for critical employees.
Establish communication channels to contact all employees who may be
dispersed following evacuations.
Determine ways to ensure payroll and benefit continuity.
Determine how to leverage services available through your employee assistance
program (EAP) or establish one if your organization does not have this program.
To help address these and other issues, you may want to consider retaining a disasterplanning
consultant to help you develop a plan customized to meet your business needs.
Or, request training and consulting on disaster planning from Ceridian LifeWorks
Solutions, a comprehensive Employee Assistance Program and work-life/wellness
solution. Ceridian provides a wide range of services, whether your organization is
creating an in-house plan or seeking outside expertise to design a comprehensive
response to emergency situations.
Your disaster recovery plan should provide specific guidelines for protecting employees,
customers and workplace facilities, and offer advice on business continuation issues.
Plans may also describe the responsibilities of individual employees for a wide range of
emergency and disaster situations, including terrorist attacks, natural disasters,
pandemics and other emergencies that require preplanning and preventive measures.
Whatever the plan, it's critical that companies test it. Rehearsals will reveal holes in
planning that must be filled. One company, for example, had the foresight to arrange for
telephone service at an alternate site, but in a rehearsal discovered that no one had
thought to order telephone handsets. The lines were there, but nobody could use them.
Plans should also be reviewed and updated regularly, as the business and its key
players change over time. Lack of rehearsals and out-of-date plans are the two most
common weaknesses in disaster recovery planning, according to the Disaster Recovery
Journal.
After disaster strikes
All the preparation in the world can't save you from every disaster, but having a wellconceived
and rehearsed recovery plan can be invaluable if disaster strikes.
As immediate danger fades, businesses must reassemble a scattered workforce and
work toward getting the business functioning again - often without telephones, email or
air conditioning or heating. Following the 2005 hurricanes on the Gulf Coast, companies
were creative in tracking down their employees. One company leased an airplane to fly
over an affected area with a banner instructing employees to check in by calling an 800
telephone number. Ceridian in the U.S. helped one of its clients locate employees by
posting check-in instructions on its LifeWorks Online Web site.
Here are some other suggestions to reach employees in an emergency:
Set up a telephone calling tree, a password-protected page on the company Web
site, an email alert or a call-in voice recording to communicate with employees.
Designate an out-of-town phone number where employees can leave an "I'm OK"
message, or an address to send their paycheque to, in case of catastrophic
disaster.
Provide all employees with wallet cards detailing instructions on how to get
company information in an emergency situation. Include telephone numbers or
Internet passwords for easy reference.
Protecting your payroll process is critical
Once employees "check in" with employers, they may soon ask about their paycheques.
"When impacted by a disaster, the last thing employees need to worry about is receiving
their pay," says Angie Carfrae, Ceridian Canada's Director of Corporate Governance, a
division which oversees Ceridian Canada's contingency and disaster recovery planning
and readiness. “Ceridian Canada's objective during a contingency event is to maintain a
reasonable level of service to our customers. Our operational and administrative
procedures are designed to enable continuity of operations in our data centres at a local
level for relocation of operations to an alternate. Our Contingency Plan for Production
can guide our business through incidents, including disasters, which would cause
inaccessibility to or inoperability of one of our Production locations. Essentially, we can
redirect the printing of paycheques to an alternate Ceridian site if required.”
Businesses also need to determine if, and how long, they will continue to pay employees
who have no job to return to. Some employers may voluntarily choose to continue
paying their employees, while others may make one-time payments to affected
employees. Whatever the plan, employers should clearly communicate the terms of such
payments to avoid confusion.
The Society for Human Resource Management (SHRM) suggests that employers are
responsible for paying wages during a disaster, especially for time the employees have
already put in; however, policies vary for how employers compensate their employees
during emergency closings.
Leveraging your EAP
Disasters impact every individual differently. While one employee might be ready to
come back to work the day after a disaster, another might need to stay home for a while.
Still another might initially seem fine, only to suffer from post-traumatic stress symptoms
weeks later.
Following a disaster, employers should be on the lookout for the following significant
changes in behaviour or mood as they relate to an employee’s performance:
Irritability
High rate of absenteeism
Tardiness
Reduced productivity
Poor concentration
Anger outbursts
These reactions, although normal and to a certain degree predictable, have the potential
to cause severe distress for employees and significant loss for the company if not
resolved promptly and appropriately. However, as an employer, it is not within your area
of specialty to make a formal diagnosis of depression, post-traumatic stress disorder,
substance abuse, or the like based on changes in mood or behaviour. Instead, address
the performance-related issues with the employee directly, and offer appropriate
supports such as the EAP or recommend that they visit their family physician.
No matter what the situation, all employees can benefit from access to a confidential
employee assistance program (EAP). Employers should communicate the availability of
such programs and contact providers about making qualified counselors available on
site or in areas where large numbers of employees have been affected.
“Ceridian's EAP and work-life offerings have expanded due to the many disasters in
recent years. "We have the organizational infrastructure, technology, leadership and
expertise to provide services during disasters. The breadth and depth of our services are
really unique," says Ingrid Taylor, Director, Ceridian Trauma Services. “For example, we
can provide Crisis Management Briefing and Critical Incident Stress Debriefing so that if
a worksite is affected by disaster and remains accessible, trauma specialists can attend
the site to provide immediate support to employees.”
Some of Ceridian's offerings geared toward disaster victims include around-the-clock
access to master's-level counselors, a comprehensive library of educational materials,
custom research capabilities, local emergency resource lists, state-of-the-art Web-based
services and customized communication capabilities.
Succession planning equals successful planning
Before the dust had settled and before anyone even had a chance to grieve after the
9/11 terrorist attacks, employees at several companies realized that they had lost key
executives in hijacked airplanes or in devastated buildings. They not only had to confront
the reality that company talent and brainpower– and friends– were gone forever, but
they also had to cope with gaping holes in their management structure. They
immediately had to identify positions, competencies and skills that were needed just to
stay afloat.
There's no way to completely plan for such catastrophic disaster, but there are specific
things that organizations can do to prepare for unexpected events. It's essential to know
which employees have the particular skills and competencies required to assume
positions higher on the corporate ladder, what talents will be required in the future, and
how best to train employees for management positions or hire from the outside.
Best-practice organizations use succession planning to prepare for potential problems
and disasters, but they also rely on such plans to develop and maintain the strong
leadership required under normal conditions.
Ceridian can help you prepare for the unexpected
Ceridian offers a variety of products and services that can help businesses prepare for
and recover from disasters. The solutions include an Organizational Preparedness
Checklist, backup systems to ensure customer payroll data is retained and paycheques
are delivered, a variety of resources and counseling services with work-life and
employee assistance programs (EAPs), employee succession planning consulting,
customized training and much more.
Today, Ceridian is gearing up to help customers with another potential disaster - the
avian influenza pandemic. We have already provided businesses with consultative
solutions to help minimize risk, reliable facts and information online, employee
communications planning and much more. To learn more, contact your Ceridian
representative.
Are you prepared?
A good disaster recovery plan can help your organization recover, function and continue
to survive if you're struck by the unthinkable. While leaders continue to delve deep in an
effort to squeeze every efficiency out of their organizations, they may need to be
reminded that disaster recovery planning and preparedness should be a priority and part
of overall business strategy. Chances are, you've got a good thing going. It's critical that
you protect it.
Sources
Disaster Recovery Journal, www.drj.com
Federal Emergency Management Agency (FEMA), www.fema.gov
Small Business Administration, www.sba.gov
Society of Human Resource Management (SHRM), www.shrm.org
This article first appeared in Ceridian Canada’s e-newsletter, The Specialist, April 2006
issue.
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