California Companies Say Y2K Is Business as Usual; Survey of End-of-Year Staffing Schedules Reveals Most Companies Will Not Ask Employees to Work Over New Year's Weekend.

LOS ANGELES--(BUSINESS WIRE)--Nov. 1, 1999--

California companies are preparing to ring in the first year of the new millennium by giving employees the weekend off, according to a survey released Monday by the Employers Group, one of the nation's largest and oldest human-resources organizations.

Sixty-three percent of businesses surveyed said they will not significantly alter their staffing schedules, and 77 percent said they would not limit their employees' use of vacation or personal time because of Y2K concerns.

The Employers Group's "End of Year/Y2K Staff Planning Survey," which queried a diverse group of 619 California companies about end- of-year staffing requirements, also reveals that Y2K staff- preparedness plans were far more likely to be observed by organizations that provide public services, including financial firms, banks, utilities, government agencies and hospitals.

"California's economy is dominated by small- and mid-sized companies, and these firms are not changing their staffing schedules as the Y2K weekend approaches," said William R. Dahlman, president and chief executive officer of Employers Group. "Clearly, our survey shows that concern over the transition to the year 2000 is greatest in the public-service sector."

Survey results show that the larger the company, the more likely key employees will have vacation time limited or be required to remain on call during the Y2K transition period.

According to the Employers Group survey, the most common Y2K staffing plan, reported by 24 percent of firms, involves requiring key employees to be on company premises between Dec. 31, 1999, and Jan. 2, 2000. The next-most-common practice -- reported by 23 percent of firms -- requires that employees be "on call" during the months of December and January.

California companies seem confident that current staff levels can handle any possible Y2K disruptions -- only 2 percent of all companies surveyed said they plan to add personnel as a preventive measure.

The survey also found that the majority of employees who are affected by scheduling changes for the Y2K transition period will not be bringing home bonus checks, said Juan P. Garcia, Employers Group research director. "Very few companies plan to offer bonuses to affected employees," Garcia said. "Rather, the vast majority of these employees will receive compensatory time off."

The survey is available to the approximately 5,000 member companies of the Employers Group, as well as nonmembers and the news media.

Employers Group is dedicated to helping California companies maximize the efficiency of their personnel by providing expert human-resources information and counsel. Nearly 5,000 companies and their more than 2 million employees rely on Employers Group to answer their workplace questions and issues.

Employers Group is an effective ally for California businesses seeking to successfully compete in the country's most dynamic and varied business arena. For more information and detailed survey findings, visit the Employers Group Web site at www.employersgroup.com/whats.htm or call 213/748-0421.