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Steps Toward a Successful Recruitment Process

HR Question:

I understand that we’re living in a “candidate’s market,” which means I need to be both efficient and effective when recruiting for new talent. I want to know what best practices are to create a strong candidate and brand experience. What steps should I take to build a successful recruitment process?

HR Answer:

You’re right – today, businesses are operating in what’s called a “candidate’s market.” This means that job seekers have more opportunities and professional options to choose from. More importantly, though, it means that the top-tier candidates have the most leverage for the best opportunities. Secondly, it means that you can no longer use the same old hiring practices that you’ve used in the past when there were more candidates than there were jobs.

While the recruitment process may look different depending on factors such as business size, industry, or seniority of the position, some fundamental steps can be taken to help ensure a successful recruiting process.

Define the Position

The most successful recruiting efforts are built on clearly defined roles, which means creating (or updating) the job description for the role. You should meet with the relevant stakeholders (i.e., managers and peers) to understand which skills, tasks, and experiences are critical to the success of the position, and possibly missing from the team and organization, to update the job description.

Then, for clarity and effective candidate screening, a best practice can be to identify the top three to five skills or qualifications that are essential to the position (rather than providing an exhaustive list of potential needs) and build your job ad around those items.

The difference between job descriptions and job ads

It’s important to note that your job description and your job ad are not the same thing! Your job description should provide a detailed view of the job requirements, expectations, reporting structure, etc. Your job ad should give a brief overview of the position and highlight the most critical qualifications needed to be successful.

Your ad should also provide compelling reasons why candidates would love to work for your company. Remember, your job ad needs to be intriguing enough to potentially woo someone away from their current job. This is your chance to highlight why they should consider making that leap.

Another key task in these early stages is making sure that you have a clear description of the culture and what a “strong fit” may look like for the existing team. Be sure you understand your “need-to-have” qualities (such as the ability to pivot quickly or experience with certain software) versus “nice-to-have” qualities (i.e., it would be great if the candidate came with these skills, but I can teach them if they don’t).

When it comes time to put pen to paper (or fingers to keyboard), consider the following:

  • Job ads should be easily read on a mobile device with minimal scrolling, as almost 70% of job seekers in 2021 applied via their mobile devices.
  • Utilize catch statements at the beginning of the ad (i.e., are you looking for a fast-paced, creative environment?) that speak to the candidate you may be looking for.
  • Use a short paragraph to summarize the major responsibilities of the position. No more than three to five sentences.

Post the Position

Once your job ad is written, it’s time to cast a wide net to attract a diverse candidate pool.  Consider major job boards like Indeed, LinkedIn, and ZipRecruiter, as well as a number of free job boards, niche/industry-specific job boards, diversity job boards, and social media groups. Don’t forget to leverage your own network, including LinkedIn alumni groups and associations in the area you are recruiting in. Be sure to post it on your company’s career page too.

As you post the role, be sure to simplify the candidate’s ability to post/apply to positions. Remove any unnecessary steps that make the application process lengthy or complex, which may turn off the candidates from even applying in the first place.

If you use pre-screen questionnaires, make sure they are optimally designed and easy to complete. Wait until after initial conversations with a candidate before making them complete lengthy applications or assessments. This allows for an opportunity to “sell” the position and the employment brand of the company and to get the candidate interested in moving forward through those tasks.

Be Proactive!

In a tight candidate market, you may not want to solely rely on waiting for the candidate to come to you. Research organizations, social media outlets, or other networking options that are relevant to the position or company. Routinely connect with your network, share news, and let them know that you are hiring.

And if you are competing for the same candidates as other organizations, be ready to sell the candidate on why your company will be their best choice. This is not just a discussion of pay and benefits, but more about the culture, mission of the company, and potential career growth. So, if your organization does a great job of providing career paths and development opportunities, be proud of that, put that message first and foremost ahead of pay and benefits.

Focus on Candidate Experience!

As candidates come rolling in, you’ve reached a crucial time in a successful recruitment process – you need to make sure you’re reviewing and responding to candidates in a timely fashion. A best practice is responding to the candidate with an acknowledgment, if not the next steps, within one to two business days. This can be a simple email that thanks them for their interest and includes an explanation of what the next steps in the process will be. The candidate will appreciate the follow-up, which will also help protect the employment brand of your company.

Other best practices include:

  • Utilizing readily available technology to find alternate ways to reach out to candidates. For example, texting can be an effective way of quickly getting in touch with candidates, as it boosts engagement and may cut down on the amount of time spent playing phone tag. This is especially true if your organization has a lot of high-volume recruiting.
  • If you know that there will be multiple steps in the process, communicate that as early as possible. This also opens the door to encouraging the candidate to keep you informed as well should there be any developments in their current job search.
  • Simplify the interview process as much as possible. Avoid having candidates come on-site multiple times for interviews by scheduling as much as necessary in one or two visits, max. Top-tier candidates are usually currently employed, which makes it very difficult for them to take time off to interview.

Be sure that your entire hiring team prioritizes the recruitment process and that they are actively involved in the hiring process so that you do not lose top talent to roadblocks caused solely by the hiring team. More often than not, your best candidates may come in the first round of resumes that you receive. Encourage anyone involved in the hiring process to keep this in mind as they recruit and to be timely in making decisions.

Thank you to Lisa Johnson, CIR and Samantha Kelly for contributing to this edition of our HR Question of the Week!

A successful recruitment process is much more than just posting an ad. It requires a targeted message, the right resources, and a significant amount of candidate engagement. Are you overwhelmed with your recruiting? Our on-demand recruitment services can give you the support you need no matter where you are in the process. Visit our Outsourced Recruitment page to learn more, or contact us today! 

Clark Schaefer Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping, and Health, Safety & Security

What Are The Top 5 Commonly Missed Records In Employee Files?

HR professional going through electronic records in employee files on a laptop.

For human resources professionals, there are many things you simply have to get right in order to protect your organization, and recordkeeping is one of them. Employee files, also known as personnel files, are a key component of the recordkeeping process for any organization. They provide a written history of each employee’s tenure with an organization including important information such as pay increases, promotions, disciplinary action, etc. Additionally, there are several documents that are required to maintain HR compliance at the federal level in the United States. For example, check out the U.S. Department of Labor’s reference for federally required new employee documentation.

These documents and comprehensive files can be maintained physically on paper or digitally ideally using a defined data storage strategy supported by an organization’s IT department. Many employers utilize the U.S. Department of Labor’s digital data storage guidelines when developing a digital data storage strategy.

5 Most Commonly Missed Records in Employee Files

Out of all the documents required to be maintained in employee files, below are the five most commonly missed. Do you have these records in your employee files?

1. Pre-Hire Documents

Pre-hire documents include the employee’s resume and application, the signed offer letter or employment contract, a signed handbook acknowledgment, tax withholding forms, a signed code of conduct, and emergency contact information.

2. Wage and Salary Information

Wage and salary information include any increases given (e.g., merit, cost-of-living adjustment (COLA), or promotion-related increases), bonus information, and significant changes to an employee’s position relative to the Fair Labor Standards Act (FLSA) exemption status.

3. Performance Reviews

The performance review documentation that should be stored within an employee file may be a 30 or 90-day review or a signed copy of the employee’s quarterly/semi-annual/annual review. Follow your organization’s timeline and policies for performance reviews and ensure these are added to all employee files.

4. Disciplinary Action

Disciplinary action forms and performance improvement plans (PIPs) are key to maintaining a comprehensive and documented narrative for the employee’s performance. If for any reason an employee is terminated, it can provide information with the potential to protect an organization from litigation. Learn more about at-will employment termination risks and how to reduce your liability.

5. Training and Development

Training and Development documentation can include training plans or checklists, verification of federal or state-required training, as well as the employee’s attained certifications, degrees, and licenses.

 

How to Properly Store Employee Records

It’s important to understand and follow proper employee record storage procedures. For example, did you know it is recommended that the I-9 Form be stored separately from the employee files? According to the U.S. Citizenship and Immigration Services, I-9 Forms should be stored in a way that best fits your organization, yet is easily available for USCIS inspection. As a result, best practice leads to storing I-9s separately from other files.

Although there is some leeway with employee record storage, best practice is to maintain the following five separate sets of files:

  • Employee/Personnel
  • Medical
  • Confidential – Non-Medical
  • Form I-9
  • Candidates Not Hired

For more on what should be included in each of these files, read our article explaining how to organize employee records and remain compliant.

Regardless of the storage process you choose, be sure to audit your employee files to ensure compliance. We recommend creating an employee file document list for new hires and ongoing employment by reviewing federal and state requirements, record retention guidelines (which can vary for federal contractors), benefit documentation, and organization-specific documents. This will provide a starting point to validate that your organization’s current files aren’t missing any key forms.

Thank you to Mary Mitchell, MBA, SPHR, SHRM-SCP, CHRS, Senior HR Business Advisor for contributing to this Emerging Issues in HR.

Keep the guesswork out of how to store and maintain your employee files. Strategic HR has a handy Recordkeeping Desktop Reference that outlines the employee documents you should have on file and how long to keep them. Learn more about our HR Compliance & Recordkeeping Services or Contact Us for help!

Marijuana in the Workplace

A marijuana leaf next to the text "Marijuana in the Workplace"

HR Question:

Now that Issue 2, legalizing recreational marijuana in Ohio, has passed, what does it mean for my employment policies? Does this mean my drug-free workplace policies are no longer valid? How should I navigate marijuana in the workplace?

HR Answer:

Medical marijuana was legalized in Ohio in September 2016, and retail sales began in January 2019, when the first four licensed dispensaries opened for business. On December 7, 2023, Issue 2, decriminalizing non-medical marijuana use, will go into effect – opening the door for adults 21 and over to legally possess, purchase, and share up to 2.5 ounces of cannabis. As reported by WCPO, the law isn’t without its limits, however, as it prohibits:

  • Using marijuana in public
  • Operating a vehicle while under the influence of marijuana
  • Being a passenger in a vehicle and using marijuana at the same time

Additionally, landlords and employers can still prohibit marijuana use based on their policies. So, what do employers need to consider as they navigate this new law?

Considerations for Recreational Marijuana in the Workplace

First and foremost, it’s up to the organization to decide if the use of the drug will be tolerated or affect current drug testing policies. The employer would potentially need to reevaluate, for example, whether or not there is an acceptable amount of marijuana that could be found in someone’s drug test, and how that amount may impact the decision of whether or not to terminate an employee (or not to hire). Additionally, it’s necessary to consider how to ensure current employees aren’t using marijuana at work or before they come in.

Depending on how your organization wants to proceed, there are a few paths to take:

  • You could choose to eliminate confusion and maintain (or start) a zero-tolerance drug-free workplace. The drawback here is that you could have a harder time finding applicants for job openings. If that’s the case, you could remove or modify any existing testing policies to eliminate cannabis, much like many employers don’t test for alcohol.
  • If you open up your organization’s policies to permit legal marijuana use, one option is to shift the focus from testing what’s in someone’s system, which may linger for weeks after the fact, and instead come up with a new standard aimed at determining whether an employee is actually impaired. Some employers have begun to implement alertness assessments such as AlertMeter, which allows employers to test someone’s cognitive function that day. Of course, this would require training your leaders and managers and communicating expectations across the board to all employees.

Considerations for Medical Marijuana in the Workplace

What about medical marijuana? In outlining employers’ rights, Ohio’s Revised Code 3796.28 states that an employee has no specific protections, which could be interpreted that you do not have to accommodate an employee’s need to use the substance. An employer has the right to not hire an employee based on medical marijuana use, possession, or distribution. At this time, the law does not allow a cause of action against an employer if an employee believes he or she was discriminated against due to medical marijuana use. An employer is allowed to have a zero-tolerance drug-free policy in place, with or without special accommodations for those who use medical marijuana.

The Bottom Line

No, this does not mean your drug-free workplace policies are no longer valid. But what this does mean is that this is a key opportunity to review any drug-related policies to make sure they are up-to-date, accurate, and reflect the needs of your organization. And, as always, consult your legal counsel to ensure that you’re avoiding discriminatory actions and complying with federal, state, and local laws. If you make any changes, be sure to distribute and explain the policy and have employees sign off on the acknowledgment.

Thank you to Alisa Fedders, MA, SPHR, and Samantha Kelly for contributing to this edition of our HR Question of the Week.

Do you struggle with doing what is right for your company and right for your employees when it comes to creating a Drug-Free Workplace? Sometimes the “right” solution isn’t always easily identified. Strategic HR understands your dilemma of being between a rock and a hard place. We can provide you with best practices, policies, and training when it comes to creating a Drug-Free Workplace or any needs concerning the health and well-being of your workforce. Please visit our Health, Safety, & Security page for more information on any of these services.

HR Wheel for Recruitment Services from Clark Schaefer Strategic HR.

How Can My Company Choose Between Different Types of Recruitment Services?

Partial view of several job seekers sitting and waiting to interview with a recruitment service.

If your organization is struggling to get candidates to apply or remain in your selection process, can’t seem to find the right person to fill a key role, or simply don’t have the bandwidth to fill the volume of open positions, it may be time to consider external recruitment solutions. There are many types of recruitment services that can often help you find and hire the right talent faster, improve your recruitment function’s effectiveness, and save you money in the process.

So, how do you get started and what should you look for?

Four Types of Recruitment Services

We’ll break down four different types of recruitment services to help you understand what they can do, their typical pricing/fee structure, and how to decide if it’s right for you.

1. Recruitment Process Outsourcing (RPO)

RPOs, also known as outsourced recruitment services, are described by the Recruitment Process Outsourcing Association as being similar to business process outsourcing, where “an employer transfers all or parts of its recruitment processes to an external service provider.” An RPO can manage some or all of your recruiting process while also offering options for establishing or improving your internal hiring function.

How do RPOs work?

Full-service RPOs act similar to an internal recruitment team as they work on your behalf representing your organization and employer branding. Many times, because they are a seamless extension of your company, candidates don’t know these recruiters aren’t on your staff unless it is shared.

These recruiting experts can tackle all aspects of your recruiting from initial scope to onboarding including:

  • Creating compelling job ads and posting to their curated networks
  • Screening resumes and sourcing candidates
  • Conducting interviews, setting up interviews for your hiring managers, and gathering feedback
  • Communicating with your decision makers and candidates – ensuring an excellent client and candidate experience throughout the process
  • Conducting reference and background checks
  • Extending offers and assisting with negotiations
  • Arranging and leading onboarding

There is additional value as you leverage their candidate reach, discounted job ads packages (including social media), technology, and applicant tracking tools. Many outsourced recruitment services can use your applicant tracking tools, provide their own, or even help you establish new ones.

RPOs are often strategic consulting partners for your organization. In addition to supporting or managing your hiring process, they can address underlying issues with your recruitment strategy, refine your processes, and identify cost-saving opportunities.

This structure allows for an on-demand approach, as outsourced recruitment services can manage as much (or as little) of your recruitment as you prefer. Some companies choose to use an RPO to manage their entire recruiting function – eliminating the need for an in-house recruiting team. Others take an à la carte approach using outsourced recruitment services to support their biggest area of need, such as advertising or initial screening.

Ideal for:

  • Organizations of any size that have limited, overburdened, or no dedicated staff for recruiting. They allow business owners and managers to focus on their business.
  • If you don’t have the resources or your plate is too full, an RPO can keep your timeline moving with a minimal time commitment on your part.

Pricing/Fee Structure:

As you can imagine, not all RPOs are alike, and neither are their pricing structures. Some charge an hourly rate for time worked while others charge monthly, project-based, or cost-per-hire rates. So it’s important to do your homework!

For companies seeking recruiting support with the most flexibility and time and cost-savings, outsourced recruitment services that charge by the hour may be the best fit. That way, you’re only charged for their time working on your needs, and not charged when they’re not.

2. Interim/Temporary Staffing Agency:

This type of recruitment service is also a third-party entity that operates entirely independently of your company. Temporary agencies usually have a database and network of individuals who can quickly fill in for short-term needs. These candidates may be on the payroll for that staffing agency or simply be employed on contract as needed.

Ideal for:

  • Quickly filling an interim position
  • Bulk hiring for short-term projects or seasonal staffing needs

Pricing/Fee Structure:

Employers typically pay an hourly rate to the agency and the agency determines the temp’s pay rate.

Some agencies may also offer the contract-to-hire option, where you pay the hourly rate, but have an option to hire the temporary employee long-term. At that point, you often pay a conversion rate or a placement fee when you hire.

3. Retained Executive Search

These companies specialize in recruiting for senior and executive-level positions and tend to have an extensive network of qualified candidates. Executive search firms often take a deep dive into understanding the needs and expectations of the open role, in addition to their clients’ company branding, culture, vision, and mission. They use this information to identify ideal candidates more accurately.

Retained executive search firms often find and present a few top candidates after conducting thorough screening and interviews. They also help with ongoing communications with those candidates if you choose to interview them. The firm will also help negotiate and provide offer expectations for their candidate(s).

Ideal for:

  • When your recruiting team doesn’t have the appropriate network or time to dedicate to this key position
  • Guaranteeing you’ll get a hire for a hard-to-fill senior or executive level position.

Pricing/Fee Structure:

Many firms charge 30-40% of the position’s first year salary. Employers pay an upfront retainer fee and get a “guarantee” of a hire, often accompanied by a prorated rate refund or replacement if the hire leaves within a short period.

4. Contingency Recruiters

These recruiters set themselves apart as they are only paid if you hire their candidate(s). They recruit for entry- all the way through senior-level positions and work to develop a wide network of candidates for various roles in multiple industries.

To increase their chances of securing a hire (and getting paid!), they tend to recruit for multiple companies and may submit the same candidate to more than one company. Because of this, it is important that you act quickly if a candidate is a great fit so as not to lose them to a competitor.

When using this recruiting approach, you’ll want to understand what happens to your search if you opt for a contingent option while the firm’s other clients are using the retained search model. This can lengthen your time-to-hire.

Ideal for:

  • Similar to a retained search, when your recruiting team doesn’t have the appropriate network or time to dedicate to the position
  • In tight labor markets when you need to search your competitors’ rosters

Pricing/Fee Structure:

You pay only if you hire the candidate they present. Typical fees range from 25-35% of the new hire’s first-year pay.

How to choose the best recruiting service for you

No matter which of the types of recruitment services you choose to explore, we recommend that you:

  • Check client and candidate references to understand their reputation with both groups.
  • Ask how they find and recruit candidates. Do you still have to pay for job ads, professional membership fees, etc.?
  • Learn about the process including if they utilize your ATS or their own.
  • Understand the average or expected time to hire or similar analytics.
  • Know your time/involvement needed upfront and on-going.
  • Ask how they provide a positive candidate experience, as well as who/how they will handle all follow-ups.
  • Do the math! Compare costs between your top options. You might be shocked at how much you can save.

Bottom line, any of these staffing options can offer support when you need it. The key is to find the best fit for your needs, as well as budgetary and time constraints.

Thank you to Andrea Whalen, Senior HR Business Strategist, and Melinda Canino, MS, Senior HR Communications Advisor, for contributing to this Emerging Issues in HR.

Do you need recruiting help? Our Outsourced Recruitment Services may be the perfect solution. We’ll manage the full process or support just where you need it for one or all of your positions. Plus, we now offer Executive Search solutions through Clark Schaefer Executive Search! Call Strategic HR today at (513) 697-9855 or email us for a free recruiting consultation. 

If you don’t have openings but still want to evaluate that your process is top-notch, it may be the ideal time to take our Free Recruitment Checkup.

Clark Schaefer Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping, and Health, Safety & Security

How Do I Prepare for an HR Leave of Absence?

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What Is the Difference Between FSAs and HSAs

Stethoscope laying next to a piggy bank representing saving money for an FSA or HSA.

HR Question:

We’ve been fielding a lot of benefits questions from our employees and some are trying to choose between opting into an FSA or HSA. What’s a good way to describe the difference between FSAs and HSAs?

HR Answer:

HR professionals play an important role in helping employees understand their benefits options so they can make the best decisions for themselves and their families. When it comes to managing healthcare expenses, it’s important for employees to be aware of the various options available to them. Two popular options are Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). Both accounts are designed to help individuals and families save money for medical expenses, but they have distinct features and eligibility criteria.

What are Flexible Spending Accounts (FSAs)?

A Flexible Spending Account (FSA) is a type of tax-advantaged savings account offered by many employers as part of their benefits package. FSAs allow an employee to set aside pre-tax dollars from their paycheck to cover eligible medical expenses. These expenses can include medical, dental, and vision costs that are not covered by their health insurance plan, such as co-payments, deductibles, prescription medications, and certain over-the-counter items.

One important characteristic of FSAs is the “use-it-or-lose-it” rule. This means that any funds contributed to an FSA must be used within the plan year, or the employee risks forfeiting the unused balance. Some plans offer a grace period or a limited rollover option, but these rules can vary, so be sure to explain your specific plan options.

Using FSAs for Dependent Care:

One noteworthy advantage of FSAs is their potential use for dependent care expenses, including childcare. If your organization offers a dependent care FSA, employees can contribute pre-tax dollars to cover eligible expenses related to the care of their children, disabled spouse, or elderly relatives who require care while they work or attend school. Eligible childcare expenses can include daycare services, after-school programs, summer day camps, and more. This feature can provide valuable financial relief for families with young children or dependents requiring care.

What are Health Savings Accounts (HSAs)?

A Health Savings Account (HSA) is another type of tax-advantaged account designed to help individuals save for qualified medical expenses. HSAs are typically paired with high-deductible health insurance plans. To be eligible for an HSA, the employee must be enrolled in a high-deductible health plan (HDHP) and cannot be covered by other health insurance, such as Medicare or another non-HDHP plan.

One significant advantage of HSAs is that the funds contributed are not subject to federal income tax, and they can grow tax-free over time. Unlike FSAs, there is no “use-it-or-lose-it” rule for HSAs. Any unused funds in an HSA can be carried over from year to year, allowing the employee to build up savings for future medical expenses or even retirement.

5 Key Differences Between FSAs and HSAs:

1. Eligibility

  • FSAs: Generally available to employees regardless of their health insurance plan.
  • HSAs: Available only to individuals with a qualified high-deductible health plan (HDHP).

2. Contribution Limits

  • FSAs: The IRS sets annual contribution limits, and these limits can vary from year to year. The FSA contribution limits for 2023 are $3,050 with a maximum allowable carryover amount of $610.
  • HSAs: The IRS also sets contribution limits for HSAs, and these limits are generally higher than those for FSAs. The limits may vary based on whether the employee has individual or family coverage. The HSA contribution limits for 2023 are $3,850 for self-only coverage and $7,750 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

3. Tax Treatment

  • FSAs: Contributions are made with pre-tax dollars, reducing the employee’s taxable income.
  • HSAs: Contributions are made with pre-tax dollars and can be invested, with earnings growing tax-free. Withdrawals for qualified medical expenses are also tax-free.

4. Rolling Over Funds

  • FSAs: Typically have a “use-it-or-lose-it” rule, with limited exceptions for grace periods or rollovers. You should clarify your plan options to ensure your employees are correctly informed.
  • HSAs: Funds can be carried over from year to year, and they remain available even if you change employers or health insurance plans.

5. Ownership

  • FSAs: Generally owned by the employer, though employees can use the funds for eligible expenses.
  • HSAs: Owned by the individual, allowing for more control over the account and its investments.

Choosing the Right Option:

When deciding between an FSA and an HSA, employees should consider their current health insurance plan, medical expenses, and financial goals. If an employee has a high-deductible health plan and wants the flexibility to save for future medical expenses, an HSA might be the better choice. On the other hand, if the employee prefers to use funds within a specific plan year and has a more traditional health insurance plan, an FSA could be more suitable.

Remind your employees that both FSAs and HSAs can provide valuable tax benefits and help them manage their healthcare costs more effectively. Encourage them to review the specific terms, contribution limits, and rules associated with each option before making a decision.

FSAs and HSAs are valuable tools for managing healthcare expenses, each with its own set of advantages and considerations. Understanding the key differences between these two accounts can empower employees to make a well-informed choice that aligns with their financial and medical needs.

Special thank you to Paula Alexander, MA, PHR, SHRM-CP, HR Business Advisor for contributing to this HR Question of the Week.

Do you find yourself without answers to tough Benefits and Compensation questions? Whether you need an analysis of your current benefit offerings, a review of your salary structure, or outsourced payroll/benefits administration, Clark Schaefer Strategic HR can do the job. Please visit our Benefits & Compensation page for more information or Contact Us.

 

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What Are the Latest ACA Reporting Changes and Deadlines?

Affordable Care Act (ACA reporting) information booklet with stethoscope

HR Question:

I know it’s almost time for the next ACA reporting period. What changes do I need to be aware of for the 2023 tax year?

HR Answer:

You’re right – the ACA (or Affordable Care Act) reporting season is right around the corner! While there are no major changes to the ACA forms and codes for the 2023 tax year, there are some items or updates to be aware of as we head into 2023. If you’re unsure whether you need to report, check out our article on ACA reporting requirements.

Paper Filing Deadlines

The employee distribution deadline for the 1095-C forms is March 4, 2024. In previous years, employers could file their 1095-C and 1094-C forms in paper format to the IRS by mail as long as they did not exceed 250 forms in total. Moving forward to this coming reporting year, the IRS is requiring all employers with more than 10 forms to report through electronic methods. This could be either directly through the IRS’s system or through a third-party provider set up to send to the IRS’s system (such as many HRIS providers). Any corrected forms would also be required to be submitted electronically. If there are less than 10 forms, the paper filing deadline will be on February 28, 2024.

If the employer’s coverage is not affordable under one of the safe harbors and a full-time employee is approved for a premium tax credit for marketplace coverage, the employer may be subject to an employer shared responsibility payment under Section 4980H(a) or Section 4980H(b).

E-Filing Deadlines

The deadline for e-Filing 1095-C and 1094-C forms to the IRS is April 1, 2024 (since March 31st falls on a Sunday). Keep in mind that there could be additional ACA state reporting requirements for your organization with differing deadlines. The states to pay special attention to are California, New Jersey, Massachusetts, Rhode Island, and the District of Columbia.

Be aware of the full list of form types that are required to be sent to the IRS electronically based on the total number of forms submitted.

• Forms 1042–S
• 1094-series
• 1095–B and 1095–C
• 1097-BTC
• 1098, 1098-C, 1098–E, 1098-Q, and 1098–T
• All 1099 series
• Forms 3921 and 3922
• 5498-series
• 8027
• W–2G
• Forms W–2 (Wage and Tax Statement)
• U.S. Territory Forms 499R–2/W–2PR (Withholding Statement (Puerto Rico)
• U.S. Territory Form W–2VI (Virgin Islands Wage and Tax Statement)

There have always been fines attached to late filing with all of these forms. However, the amount has increased to $290 per W-2 from $250 (even if they are mailed in paper format and should have been sent electronically).

Updated Affordability Percentage and Penalties

For the 2023 tax year, the affordability percentage – the maximum amount of an employee’s pay that can be spent on “Employee Only” coverage in order to be considered “affordable” by ACA – decreased from 9.61% to 9.12%. Although there are no major changes to the ACA forms and codes for the 2023 tax year, the IRS has updated the ACA affordability percentage to 9.12%.

Additionally, the IRS has declared that the penalty under Section 4980H(a) will increase to $2,880 or $240 per month, and the penalty under Section 4980H(b) will increase to $4,320 or $360 per month. With these increasing costs associated with noncompliance, it’s important for employers to carefully assess their group health plan offerings to make sure they’re aligning with ACA best practices. It is also essential to ensure that these plans provide comprehensive coverage to full-time employees, including at least one affordable self-only option that meets minimum value benefit requirements.

Thank you to Mary Mitchell, MBA, SPHR, SHRM-SCP, Certified Healthcare Reform Specialist, for contributing to this week’s HR Question of the Week.

Whether you’re new or experienced when it comes to ACA reporting, it can be a confusing process. Clark Schaefer Strategic HR are here to help! If you are unsure if your company should be reporting for ACA, we can help assess your employee calculations to determine if it is needed. We also have the ability to check your employee data for compliance and electronically file your company’s ACA forms with the IRS on your behalf. Contact us for your ACA reporting needs.

 

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5 Key Points To Use Assessments in the Employee Life Cycle

Employee completing an assessment on their work computer.

What is so significant about the term experience? Experience is how we remember life. An experience awakens the senses and, for better or worse, leaves a lasting impression. Often, those impressions are shared with others, especially with the ease of the Internet and social media. Driven by this, organizations today strive to leave a positive impression on the experience of customers, clients, and employees. For our purposes, we’re going to focus on how employers can significantly impact the employee experience.

We often hear, “Timing is everything.” So, when should you focus on the employee experience? Successful organizations are thinking about the employee experience along every phase of the employee life cycle. The good news is there are many new tools and technologies to help organizations build a unique and impactful employee experience, and one that remains tried and true is the use of assessments across the employee life cycle.

Below are five key points in the employee life cycle where the use of assessments can make a lasting impression on your employees and play an important role in your organization’s ability to attract, develop, and retain employees.

1. Enhancing Hiring Decisions

Let’s start at the beginning of the employee life cycle – recruitment. Assessments used in this stage, such as pre-screen questionnaires, can significantly enhance the accuracy and effectiveness of the hiring process.

Try using assessments in two ways – internally and externally. Before you begin sourcing or searching for candidates, consider using assessments to help internally benchmark what you’re looking for in the role, including the competencies required. Are there skills or traits your current team is missing, or are there different perspectives that could help create diversity of thought? Once you identify these measurable competencies, you can highlight them in your job ad.

When the external search begins, assessments can provide additional insights that screening and interviewing may not be able to. Plus, assessments can provide unbiased and data-driven results that traditional screening methods can’t.

Whether it’s cognitive, personality, or behavioral assessments, you can glean valuable insights into a variety of different competencies. This can help your organization minimize bias, reduce turnover, and hire candidates who are more likely to succeed.

2. Identifying and Developing Potential

After a successful hire, your focus should shift to engagement and retention. From our research findings of generational preferences in the workplace, we know that growth and development opportunities are among the top three reasons employees choose to join an organization. This presents a great opportunity to use assessments to help identify and develop an employee’s potential within your organization.

Don’t believe us? Consider Estée Lauder’s example as they embedded the CliftonStrengths assessment into their culture, processes, and key metrics. When employees understand their strengths and how to leverage them for themselves, their team, and the organization as a whole, it can be a powerful realization for employees and a winning combination for employers. For Estée Lauder, by identifying and cultivating individual strengths, employees felt valued, empowered, and motivated to do their best work, thereby leading the company to award-winning heights.

Today’s expected employee tenure is already short – a median of just over four years, according to the BLS. However, when organizations leverage assessments and subsequent reports to support the employee’s career path within the company, it allows the employee to pursue roles that are more aligned with their interests and career goals. These growth and learning opportunities help to increase that tenure (and potentially turn employees into ambassadors for your organization).

3. Designing Training and Development Programs

On an organization-wide scale, assessments can empower HR to offer training and development programs that meet targeted and personalized needs. Depending on the kind of assessment (technical, cognitive, behavioral, skill, leadership, etc.), the appropriate training programs or providers can be brought in to support a team’s growth and learning in areas that are aligned with the desired organizational outcomes.

Assessments aren’t just for your human talent, however, they can and should be used to evaluate the effectiveness of training programs as well. Pre- and post-training assessments can measure the impact of training, enabling organizations to assess knowledge gain, skills application, and overall program success.

4. Strengthening Career and Performance Management

Assessments can do much more than identify strengths and potential. By providing data-based assessments, employees and employers can work together to identify areas for improvement without the interference of human opinion, limiting the impact of ego and emotion in early performance conversations. Employees can understand where they scored, employers can understand where to support their team members, and both parties can agree on goals together.

By building in regular performance assessments, employees can also find motivation as they see their skills and competencies improve along the way. This can also empower them to reach for new heights within the organization, especially if those roles are benchmarked in similar fashions.

5. Building Effective Teams

Finally, don’t forget about the importance of building strong and competent teams. While this happens at all stages of the employee life cycle, assessments can play an integral role here. With assessment data and well-designed training, HR and management can build diverse, balanced teams across the organization, and even call attention to potential issues or challenges ahead of time to minimize interruptions and conflict.

For example, we have found the Everything DiSC® assessment to be a highly effective tool in helping people to work better together. The DiSC assessment, coupled with training and follow-up resources, helps employees to understand their own personalities, how they are similar or different from their co-workers, and how to improve communication and collaboration across different work styles. This has been a valuable tool to help people better understand themselves and those around them leading to decreased conflict and stronger, more productive workplaces.

When choosing team assessments, you’ll want to look for tools that align with your organizational goals, encourage self-awareness, and foster a culture of mutual understanding and respect. By understanding individual strengths and limitations, team members are better equipped to complement each other’s skills.

Assessments for the Win!

Building out a thoughtful employee experience along every phase of the employee life cycle is critical to support retention, productivity, and employee morale. When considering the employee life cycle, we highly recommend exploring opportunities to add assessments into the process that support your organization’s goals and help you to build a strong employee experience in a consistent and sustainable way.

 

Special thanks to Julie A. Johnson, PHR, SHRM-CP, Sr. HR Business Strategist, Melinda Canino, MS, Sr. HR Communications Advisor, and Samantha Kelly, Sr. Sales & Marketing Strategist for contributing to this Emerging Issues in HR.

Do you need help identifying or implementing the right assessments for your employees and your organization? Don’t worry. The HR experts at Strategic HR can help you find the best employee assessment tools for you. We’re also an Authorized Partner for Everything DiSC®, so we’re happy to be your go-to resource for the DiSC assessment and training too. Contact us to get started!

How To Handle Drug and Alcohol Abuse in the Workplace

Employee covering her face feeling ashamed.

HR Question:

I am part of our HR team, and a supervisor approached me because they suspect one of their employees may be drunk or on some type of drug that is inhibiting their performance. We have a policy prohibiting workplace drug and alcohol abuse that allows us to test if we have reasonable suspicion. Is that enough? What should I do?

HR Answer:

First, we recommend that you talk with the supervisor to understand and specifically document the employee’s behavior that’s causing concern. Is it behavior that is not typical (i.e., appearance, odor, etc.)? It is ideal to have two parties observe and document the behaviors to independently confirm reasonable suspicion of drug and alcohol abuse. However, it is not required if you do not have the ability to do this. If you’re able to have two observers, one party is often the supervisor and the other party is typically someone in management or HR.

If the employee has a safety-sensitive job or appears to present a safety concern for others, the manager and/or HR professional may need to remove the employee immediately from their work area. In this case, escort the employee to wait in a safe and private location (i.e., a conference room, an office, etc.) to discuss the concerns and observations.

How to Communicate the Concern

After documenting the employee’s behaviors, it is important to promptly discuss this information with the employee. It’s helpful to approach this type of conversation from a position of care and concern for the employee versus an accusatory approach. The observations should be shared in a fact-based manner. It is not necessary to specify the drug or alcohol you suspect they may have used. Instead, focus on the concern that they appear to be impaired in some way.

The company’s workplace drug and alcohol abuse policy should be reviewed with the employee, and it should be explained that they are being required to be tested as outlined in the policy. It is also important to explain the consequences if they refuse to comply. (And this should be addressed in your policy as well.) If you have any doubt about your policy’s ability to protect your organization or your employees, we recommend having your attorney review it.

Drug and Alcohol Testing

Given the nature of the situation, the employee should not be allowed to drive themselves to the testing facility. Rather, the employee will need to be transported to the drug/alcohol screening facility. It is best practice to have someone in management or HR alert your testing facility of the situation and to transport the employee. Keep in mind, if you use a facility that does not provide instant results, you will also need to transport the employee to their home or ask them to identify someone who can pick them up and take them home.

It is best practice to not have the employee return to work until the test results are available. If you’re wondering how to handle the employee’s pay during this time, you are not obligated to pay an hourly (non-exempt) employee for time missed from work while waiting on the test results. This may not be the case for salary (exempt) employees according to the FLSA.

Negative Test Results

If the test results are negative, the manager or HR professional should contact the employee and advise them they can return to work on their next scheduled day. It’s also best practice to pay employees for time missed from work while waiting on the results.

Positive Test Results

If the test results are positive, you should follow your company’s policy and procedure. This may involve a last-chance agreement, treatment and/or Employee Assistance Program (EAP), or immediate termination if the company has a no-tolerance policy.

Whether the result is positive or negative, the situation must be handled respectfully and professionally. Keep in mind this is an uncomfortable situation for everyone and should be treated with the utmost discretion for all parties involved.

Special thanks to Marie Frey, SHRM-CP, HR Business Advisor for contributing to this HR Question of the Week.

Handling drug and alcohol use in the workplace can be stressful…especially if you don’t have the right policies, procedures, or training. Strategic HR can provide you with best practices, policies, and training when it comes to creating a Drug-Free Workplace or providing an overall safe and healthy work environment. Visit our Health, Safety & Security or Training & Development pages to learn more.

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Can I Fire Someone During Their Introductory Period?

A sheet of paper with "notice of employee termination" at top

HR Question:

Can I fire someone during their introductory period? Are there ways to reduce our risk?

HR Answer:

The short answer can be yes. As long as an employer has a properly written (and implemented) introductory period, there should be little concern over terminating someone during their new hire period. In fact, sometimes it is actually easier to terminate someone during this period of employment. A key component is to ensure that your introductory period policy and practices apply the employment-at-will status, as allowed by your state or locality. In that case, you should be able to rest easy with your decision, although we recommend consulting your attorney if you have any doubts.

On the other hand, if you don’t have a well-designed introductory period, your organization is at higher risk. If you’re unsure about your policy or implementation, read on to learn why introductory periods are important, what to consider in their design, and ways to reduce termination risks.

Why is a new hire introductory period important?

Introductory periods are an important phase of employment as they allow the new hire and employer to evaluate their fit with each other. These programs typically range from the first thirty days of employment up to six months and can be extended, if necessary.

Keep in mind that appropriate design and implementation are critical. According to the Society for Human Resources Management, some labor experts warn of the legal implications of introductory periods (including discouraging the use of the term “probationary period”). However, if implemented properly, employers can use the time to sufficiently train and evaluate the hire.

Setting appropriate expectations

During the introductory period, the employee has the opportunity to learn their role, acquire and demonstrate the skills necessary to perform the duties of the job, and understand how their role fits into the overall organization. Employers typically use this time to evaluate the employee to determine if they are a good fit for the position by reviewing their skills, knowledge, abilities, overall job performance (quantity and quality of work), work habits and behaviors, and attendance.

Although employees in this defined new hire period are essentially the same as all other employees, there are often special requirements placed on the individuals during this evaluation period. For example, some employers put in place stricter attendance requirements during the introductory period, (i.e., requiring new hires to work on-site for a defined period of time before allowing remote work situations). Other employers reduce the productivity requirements for new hires during this period as they are learning their roles.

Whether you are making the expectations more or less strict as compared to other employees, it is important to ensure that new hires are made aware of the expectations and how they will change after the completion of the introductory period.

Reduce termination risk during the new hire introductory period

Termination of employment at any time can be inherently risky. Here are some suggestions to consider that may bolster your new hire period policies and implementation:

  1. Clearly define the introductory period, including the length of time, and state that it can be extended, if necessary.
  2. Clearly express employment-at-will, if allowed in your jurisdiction and it applies to your situation. This statement indicates that the employment relationship is terminable at any time, including during the new hire period, and completion of the introductory period does not change that status.
  3. Provide a clear explanation to the new hire of how they will be evaluated, including specific expectations during the period and if/how these expectations are going to change once the new hire period is successfully completed.
  4. Evaluate your new hire regularly. Provide frequent and immediate feedback including written evaluations.
  5. If the new hire is failing to meet expectations, discuss what must be done to achieve acceptable performance as well as the next steps if there is no improvement.

Following these guidelines will help to ensure the new hire is treated fairly during the process. We also recommend that you consult your attorney to be sure that your introductory policies and procedures are optimally designed to mitigate your organization’s risk.

Special thanks to Patti Dunham, MBA, MA, SPHR, SHRM-SCP, for contributing to this edition of our HR Question of the Week. 

Terminations are one of the most difficult aspects of Human Resources. Strategic HR can walk you through a termination, assist with the investigation, and provide a third-party objective look at each case. Visit our Employee Relations page to see how we can help you navigate through challenging situations while also building a positive relationship with your employees.

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Why Do I Need An Employee Handbook?

A blue spiral bound handbook with "employee handbook" with a pen beside it

HR Question:

Why do I need an Employee Handbook? Are they required?

HR Answer:

While it is not a requirement to have an employee handbook, having one can be an effective tool for you to communicate expectations throughout your organization. The employee handbook can be a quick reference for commonly asked questions such as “When am I eligible for vacation?” or “How do I call in sick?” Beyond communication with employees, a well-crafted employee handbook can provide many benefits to your organization.

Benefits For Employees

Orientation and Onboarding

For new employees, the handbook serves as an important introduction to your company. In addition to explaining work rules and expectations, it introduces new employees to the vision, values, and mission of your organization. An employee handbook can be a roadmap during orientation to help new employees get onboarded more quickly and reduce misunderstandings.

Organizational Culture

Your employee handbook is also an introduction to your company culture. The way that policies are phrased – such as expected working hours and location(s), ways to submit PTO requests or time off, how to communicate family/personal crises should they come up, etc. – can speak to your organization’s flexibility, inclusiveness, open-mindedness, or work-life balance expectations. Drafting policies that promote and reward desired behaviors (and perhaps, even explain the reasons behind them) can help nurture a healthy workplace culture.

Benefits For Employers

Protection for Employers

The employee handbook serves as a legal statement of policy on behalf of the employer. When signed by both the employee and employer, it can stand as evidence that not only were expectations communicated, but they were also agreed to as a requirement of working within the organization. For example, including anti-discrimination and anti-harassment policies, as well as bystander reporting requirements and complaint filing procedures, can provide guidance and protection for both employees and the employer should difficult situations arise.

An employee handbook can also clearly communicate the organization’s right to end employment based on performance, reorganization, financial downturn, or any other reason (commonly known as an “employment-at-will” statement). Without this, an employee may claim that an employment contract was made through other means of communication. Having a clear at-will-employment statement in the handbook may provide some protection from these types of claims.

It is critical for your handbook to be constructed properly for it to provide protection versus risk. Therefore, we highly recommend having your legal counsel review your handbook to ensure that it provides optimal protection for your organization.

HR Compliance

Your employee handbook can be used to meet the requirements of federal, state, and local laws. For example, federal law requires employers who are covered by the Family Medical Leave Act (FMLA) to inform employees of their FMLA rights. If FMLA applies to your organization, an employee handbook provides an opportunity to inform employees of their rights, your internal processes, and answer any frequently asked questions that come up when addressing FMLA needs.

In addition, businesses that have employees across states, cities, and towns may have to comply with the laws in those work locations. Creating state handbook policy addendums for different states or jurisdictions can help the organization in communicating these requirements.

Consistency in Work Rules

An employee handbook formalizes the company’s policies on workplace matters, ideally encouraging a fair and consistent workplace. Managers can refer back to the handbook as a guide when it comes to discipline, internal processes, expectations, or review policies to ensure consistent treatment for each employee.

Including policies such as a progressive disciplinary policy can inform managers and employees of the company’s expectations on how disciplinary issues will be handled, providing a sense of trust and reducing confusion in challenging situations.

Additional Considerations

Evaluating Policies and Communicating Changes

Maintaining company policies in an employee handbook provides an opportunity to examine your policies for contradictory, illegal, or outdated rules. Annual revisions to your handbook will encourage you to identify policy changes that should be made based on company goals, new laws, court rulings, and industry standards.

As with any HR policy revision, it is important to communicate the changes to employees. As a best practice, many organizations require employee signatures verifying that they have received the revised handbook.

Yes – Your Handbook Can Be Used Against You

An employee handbook is significant for what it includes, as well as what it does not include. It should provide policy direction, flexibility when necessary, and a clear outline of practices that your organization can follow consistently.

It is also essential not to include things in the handbook that you are NOT doing. For example, if your handbook indicates that you plan to review employee performance every year, but you haven’t reviewed anyone in over five years, then it would be important to review and revise that statement to reflect the practices you actually follow.

Ensure Your Handbook Is Customized For YOU

Be cautious of handbook templates or copying another organization’s handbook. Avoid including policies that do not apply to your company such as policies for companies with over 50 employees because you think you might be over 50 employees within the next 3 years. Also, make sure you have your attorney review your handbook to ensure they are comfortable defending you, should something ever go to court, based on what is written in the handbook.

Wondering if you’re up to date on policy trends? Learn more about the Top Employee Handbook Policies to Include this Year.

 

Thank you to Colleen Mahoney, PHR, HR Business Advisor, for contributing to this week’s HR Question of the Week.

Don’t have a handbook and not sure where to begin? Concerned that your current handbook is outdated? Don’t worry. Clark Schaefer Strategic HR can help you to create or revise your handbook to ensure that it serves as a meaningful communication tool helping to protect your employees and your business. To learn more, request a free handbook consultation today.

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How do I manage compensation increases with inflation?

Money disintegrating

HR Question:

How do I best manage compensation increases with inflation still rising?

HR Answer:

This is a question many companies continue to wrestle with as the US economy experiences rising inflation. According to the Bureau of Labor Statistics (BLS), the consumer price index (CPI) reached its highest annual increase (8.6%) in over 40 years in May 2022, and we continue to watch the CPI on the rise. These increased daily costs put significant pressure on employees to stretch their income further, which in turn, puts pressure on employers to increase wages to cover the gap.

Employers also need to consider other factors when assessing pay strategies, such as the state of the labor market. With employment rates at record lows, it can be harder to find and attract qualified candidates, making salary a sticking point in many employment conversations.

What does this mean for organizations as they try to meet the needs of employees and remain competitive in the market? How are they supposed to be competitive when navigating rising costs across the board? What if salaries have already increased – should they be expected to continue to climb so soon? We recommend the following considerations to help manage your compensation increases amidst inflation and a tight labor market.

Keep Inflation In Mind When Strategizing

With these external influences, HR leaders need an effective rewards strategy that retains current high performers, attracts top candidates, evaluates business costs, and is applied equitably. Easy, right? Not only that, but the approach should align with organizational strategy, have market-based salary data, include review processes, and consider non-monetary compensation. Then, that complex plan should be communicated throughout the organization.

This presents an opportunity to ensure that your annual compensation review process includes an assessment of how the cost of living impacts your pay strategy. Consider adding inflation into your review model utilizing data from the Department of Labor and additional government agencies, along with the criteria you use to determine annual pay increases. While you don’t have to directly increase your salary rates in step with the inflation percentage, not doing so may put your organization at a competitive disadvantage in the candidate market.

Salary Benchmarking

Rather than relying on inflation to exclusively guide your salary increases, consider utilizing salary benchmarking tools for each role in your company. This is also a great opportunity to weave in any feedback you’ve learned from job candidates, stay interviews, or exit interviews. The compensation review process could then use current market-based salary ranges to recommend increases.

And, while it makes sense to consider what’s happening in the economy, an increase in the cost of living may or may not lead to a proportional pay increase. Although prices may be going up, it doesn’t mean that compensation market data has moved at the same rate as inflation. For example, if the CPI has increased by 8%, salaries may have increased by less than 8% or more than 8% in the market. This is why conducting salary benchmarking is crucial for each position.

Benchmarking against what other organizations are planning for salary increases can help give a sense of perspective as well. According to a recent survey conducted by WorldatWork, increases in 2024 are budgeted for 4%. You may want to review several resources to compare compensation data across your industry for a reasonable comparison.

Non-Monetary Compensation

Take-home pay is the predominant concern when inflation hits, but other variables can still be vitally important to employees. Evaluate benefits and non-monetary rewards offered and consider additional low-cost options.

For example, are there ways to enhance health benefit subsidies, HSA contributions, flexibility, paid time-off, retirement contributions, tuition reimbursement, etc.? Providing more generous offerings in this category could help ease the impact of inflation without necessarily increasing your immediate costs.

Communication and Transparency

Before finalizing compensation increases, collaborate with other leaders to determine the overall economic impacts on the organization. Perhaps additional revenue streams or other increased costs may impact the feasibility of compensation increases either way.

Once decisions have been made, effectively communicating with employees is crucial. Tailor the message based on the employee’s perspective and make sure to be transparent and empathetic while explaining the reality of what is and isn’t possible. Doing this authentically will help people feel valued.

Compensation analysis is an ongoing process, and HR Leaders should consistently evaluate the organizational strategy and market data to stay competitive. With a robust strategy, sound framework, and effective communication, any factor can be considered and incorporated appropriately.

 

Thank you to Becky Foster, Sr. HR Business Strategist, for contributing to this HR Question of the Week.

Let the HR Business Advisors at Strategic HR review your strategy and conduct a compensation market analysis to make sure you’re not missing any opportunities to have a rewards strategy that attracts, retains, and engages your team. Learn more about our Benefits and Compensation Services or Contact Us for help.

Why Is Harassment Training Important?

Written phrase "workplace harassment" on a paper pad

HR Question:

Do I really need to provide harassment training? Isn’t having an anti-harassment policy sufficient?

HR Answer:

While it’s definitely a great place to start, having an anti-harassment policy isn’t enough. It’s crucial to ensure that your entire team is on the same page when it comes to definitions, expectations, and consequences surrounding harassment in the workplace. Because harassment can look and feel differently depending on the situation and the context, you want to leave no room for misunderstandings or confusion – especially when trying to create a psychologically safe work environment.

Three Reasons Why You Need Harassment Training

1. It promotes and fosters a positive, inclusive, and diverse work environment. Harassment training helps to create a workplace culture that values respect, dignity, and inclusivity. It raises awareness about inappropriate behavior and ensures that employees have an understanding of the importance of treating their colleagues with respect. It eliminates confusion, helps educate and share perspectives that employees may not have experienced or had access to, and helps raise the value of all experiences in the workplace.

2. It can mitigate legal issues. Providing harassment training allows organizations to educate their employees about their rights and responsibilities in relation to harassment laws. This also provides an opportunity for everyone in the organization to have clear outlines of what is not acceptable. It’s part of the employer’s responsibility to create a safe workplace for their employees, and this is just one of many steps in doing so.

3. It can protect employees and promote a psychologically safe work environment. Harassment can have severe emotional, psychological, and even physical effects on individuals. By providing regular harassment training, organizations can aim to protect their employees from experiencing or witnessing such behavior by clearly outlining actions that are unacceptable in the workplace. Training provides employees with the knowledge and tools needed to identify, report, and address harassment more effectively and in a timely manner.

Keep the Training Going!

Between the 2018 and 2021 fiscal years, the Equal Employment Opportunity Commission (EEOC) received a total of 98,411 charges alleging harassment under any basis and 27,291 charges alleging sexual harassment. Since an employer can be held legally responsible for the actions of their employees, it stands to reason that every effort should be made to regularly remind employees of the expectations of their behavior, rather than assuming the training can be a “one and done” scenario.

So how can organizations continue the thread of anti-harassment throughout their organization?

  1. Start at the beginning of the employee life cycle. Include training on the types of harassment, the consequences of engaging in harassment, and the steps to prevent harassment to get new employees started off on the right foot, ensuring that they are familiar with what personal conduct will and will not be accepted in the workplace.
  2. Make sure you regularly repeat the training. Many organizations conduct annual education/training sessions that include harassment as part of the training. This is a great opportunity to refresh your employees’ knowledge of the subject matter and to further emphasize the company’s no-tolerance policy with regard to harassment.
  3. Be sure to review your anti-harassment policy regularly. Remember, the policy is still a great tool in your anti-harassment toolbelt. If you’re not sure where to start, the Society for Human Resource Management provides five ways to update and upgrade your current policy to make sure it’s in line with best practices.

Keep in mind, while federal law advises periodic harassment training, some states may require such training. For example, in California, employers with 50+ employees must provide two hours of sexual harassment training for supervisors every two years. Be aware of the specific requirements of your state or locale when it comes to harassment education for your employees.

Special thanks to Julie Schroer, SHRM-CP, for contributing to this edition of our HR Question of the Week!

Are you overdue on harassment or other annual training? Does your current training curriculum need to be refreshed to reflect changes in company policy or legal requirements? Strategic HR has the expertise and resources to help. Visit our Training & Development page to learn more.

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What Should We Include On Our Careers Page?

Man completing job application on tablet

HR Question:

What should we include on our company Careers page to ensure we’re keeping up with the times?

HR Answer:

You’re wise to have the quality of your company’s Careers page on your radar. This is a critical recruitment marketing tool to capture the attention of potential candidates. Your page’s content, look, and feel must grab their attention fast to keep job seekers engaged and interested in applying. Otherwise, you lose them before they even apply. You’ll want to make sure that you seize the opportunity to showcase who you are, what you have to offer, and why job seekers would want to work at your organization.

Your Careers page should be designed to intrigue candidates to want to learn more; actively engage them with your content; and compel them to apply. There are many components that you can consider to optimize your Careers page. Here are some suggestions to get you started.

Nine Tips to Optimize Your Careers Page:

1. Showcase your employer brand

Your employer brand encompasses your mission, values, benefits/perks, and overall company culture. It can be viewed as your company’s reputation as an employer, which is a critical piece that job seekers want to understand.

Although this is different than your company brand, your employer branding should be aligned with your company brand. We’ll touch upon some components of employer branding below, but to dive in further, check out this LinkedIn article, “What Is Employer Branding and How Can It Grow Your Business?

2. Share your mission and values

According to Strategic HR’s “Generations at Work” survey, a “values match” between the candidate and the company ranked within the top five reasons any generation would prioritize when deciding whether or not to join an organization. By incorporating your company’s mission and values on your Careers page, candidates can connect to your company’s purpose.

A great way to showcase this can be through testimonials from your employees sharing how your values come to life in your workplace. This presents a good opportunity to ensure that you are indeed living the values that you profess for your company.

3. Include benefits / perks

It should be no surprise that job seekers want to know about the benefits and perks that you offer. This is a prime opportunity to market what you offer to your employees and tout why it’s great to work at your company. Wondering what today’s job seeker values the most? Check out Forbes’s “Best Employee Benefits of 2023.”

4. Shine a light on company culture

Your company culture is what makes your organization uniquely YOU. Candidates want to have a realistic picture of what it’s like to work at your company so they can assess if it feels like a good fit for them. A powerful way to communicate your culture can be through videos. For example, you could share “A day in the life” videos showing real employees at work and hearing about their experiences.

Not sure where to start? Check out 8 Steps to Producing a Great Employment Video for tips and tricks!

5. Ensure a fast and easy application process

If you capture the job seeker’s interest to the point where they’re ready to apply, make sure you don’t lose them in the application process! Many applications are too long, and with the number of current job openings far exceeding the available talent to fill them, job seekers can pick and choose where they want to apply.

Make sure your application only asks for the information that you absolutely need at that stage in your selection process. It should be quick and easy to complete – target completion in 5 minutes or less.

6. Make it mobile friendly

Many candidates (particularly millennials) conduct their job search on the go using their phones, so be sure that your Careers page is mobile-friendly. To the point made above, you’ll also want to ensure that your job application is mobile-optimized as well. If you’re not sure, try it out for yourself!

7. Offer job alerts

Don’t count on job seekers to go back to your Careers page on their own if they don’t see a job opening that interests them when they first visit your page. Your Careers page should offer the opportunity for job seekers to sign up to receive job alerts for the type(s) of position(s) they want to pursue. This push notification can help to re-engage that candidate when an appropriate job becomes available.

8. Allow applications without a job opening

Don’t let a potential candidate slip through your fingers simply because you don’t have the right job opening for them today. Seize the opportunity to engage that candidate in a future job opportunity by allowing them to apply for a future fit position. If you do this, be sure that you source your ATS when new positions become available to ensure that you re-engage these candidates who have expressed an interest in your company.

9. Explain your hiring process

Job seekers want to understand your hiring process. They want to know the expected steps it takes to get hired. They also want to know what they can expect from you in this process. Providing an explanation of your hiring process either through text or video can help to manage candidates’ expectations and answer some of their questions on the front end.

After you’ve completed the suggestions above, consider taking it a step further! Reviewing your entire recruitment process annually – from application to offer to acceptance – is a great way to ensure that you’re creating a welcoming, efficient, and attractive process for potential talent to follow should they want to join your team.

Thank you to Samantha Kelly, Sr. Sales & Marketing Strategist, and Stephanie Kolodziejski, Talent Acquisition Consultant, for updating this HR Question of the Week.

Do you need help creating or updating your Careers page? Give us a call! Our expert Talent Acquisition Consultants can help evaluate, streamline, and suggest ways to build efficiencies into your recruitment process. Or better yet, take it off your hands completely! Visit our Outsourced Recruitment page for more information on how we can help you effectively and efficiently find your next employee.

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How will AI impact the Human Resources function?

Image of AI representing the impact on HR

The rise of artificial intelligence (AI) has sparked debate about its effect on a wide variety of industries and job roles—and the Human Resources function is one of them! Many have wondered if AI’s impact on HR will lead to a significant reduction or complete elimination of HR professionals. Surely, it’s not possible to take the “human” element out of “human resources.”

At Strategic HR, it’s our belief that while AI has the potential to streamline HR processes and provide more information to enhance decision-making, organizations will continue to need HR professionals who have a nuanced understanding of people to lead and manage their HR function. In fact, AI’s continued evolution actually provides HR leaders with a unique position to make a significant organizational impact in a few ways: by understanding, utilizing, and providing guidance within their organization.

How AI can impact HR and recruiting functions

In a world of labor shortages and an increased need for efficiency, many organizations are consistently looking for ways to do more with less. One way that AI can impact the HR function (or better yet, streamline the HR function) would be in the recruiting process. For example, advanced algorithms can swiftly analyze vast amounts of data and eliminate human bias in the initial stages of reviewing resumes. We’ve seen advances in areas such as writing job descriptions, suggesting interview questions, screening resumes, and analyzing hiring criteria. Some AI bots are even conducting initial screening interviews with candidates.

Because of AI’s ability to process and analyze large volumes of data rapidly, HR professionals can leverage AI-powered analytics tools to gain valuable insights into other HR areas such as employee engagement, performance, and overall organizational culture. By identifying patterns and trends, AI can assist HR professionals in making data-driven decisions that optimize recruitment strategies, training programs, and performance evaluations.

Whether AI is handling simple or complex tasks, the key in any HR situation is to empower HR professionals to utilize AI in ways that allow them to focus on more complex or nuanced issues, rather than taking the “human” element away.

Chatbots and ChatGPT have changed the game

AI chatbots are the latest game-changer to impact HR in the evolution of AI technology innovation. For example, some companies use AI chatbots to provide 24/7 support to employees, answering frequently asked questions and freeing HR professionals to focus on more strategic and interpersonal aspects of their roles.

While there are several versions of Chatbots available, the most recent emergence of ChatGPT, an open AI platform that interacts with users in a conversational way, has been highly notable. In addition to synthesizing content like a search engine, this technology also learns relationships between data elements and can reassemble responses in a meaningful way based on the prompt question.  The output is as fast as doing an online search, yet the resulting data far exceeds the robustness and usefulness compared to many internet queries. This tool has the potential to significantly increase the efficiency of HR professionals and employees alike by gathering and synthesizing meaningful data.

According to the Microsoft Work Trend Index Annual Report, far more employees (70%) would choose to maximize the use of AI to lighten their workloads compared to 49% of people who are concerned about losing their jobs to AI. As the world of work moves forward with an increased focus on workplace efficiencies, some use of AI may be inevitable. Perhaps one thing that HR professionals can do to allay employees’ concerns is to identify the skills needed to manage and augment the AI and provide the training, development, and growth opportunities to help employees succeed in the technology transition.

Ethical, legal, and security concerns

While it has great potential, there are still limitations, risks, and lingering questions about the use of AI. It’s important to recognize that many times AI lacks a nuanced ability in analyzing data. A human being who can consider various contextual factors, use intuition, and integrate empathy is needed before making final decisions. There are also ethical implications, legal considerations, and security concerns that must all be addressed before companies can fully take advantage of the technology. We’re not quite ready to let AI replace human judgment.

Geoffrey Hinton, a pioneer of artificial intelligence, quit his position at Google so he could talk more openly about the risks and dangers of AI technology. According to Reuters, Hinton states his primary concern is that the technology could become too smart sooner than experts expected and create convincing false images and texts which would result in not being able to discern what is true. While this may sound like a risk far into the future, there are additional immediate concerns that need to be considered including:

  • ChatGPT is currently based on internet information through 2021, so some recent happenings and facts are not reflected.
  • The answers are based on internet information, so they are only as accurate as the data on the internet. The AI-technology does not have the ability to know what is true.
  • AI systems use historical data, which raises concerns about potential biases. If AI were to take over HR departments entirely, the risk of perpetuating systemic biases could increase.
  • There is the possibility of giving proprietary or personal information that the system may “learn” and repeat in another answer which could cause security and liability risks.

How HR leaders can guide AI adoption

Proactive HR leaders can provide guidance to their organization that can add clarity and peace of mind during a tumultuous time of change. Consider the following actions leaders can take to help frame the discussions and drive decisions in organizations:

  • Understand where the organization is considering and/or could benefit from AI technology.
  • Create a roadmap to define business uses and outcomes for AI technology with guardrails to limit risk.
  • Identify the technology skills and resource gaps that need to be filled to effectively harness the AI options.
  • Develop strategic principles and policies (considering security and accuracy) to aid in the evaluation of how/when to utilize different AI options.

HR Leaders can support and perform these types of activities rather than allow the technology to be introduced without intentional consideration. Helping organizational leaders to consider both the impact and risk of utilizing a framework and strategic actions will lead to more informed decisions.

It is clear that AI technology has the potential to revolutionize HR practices by automating and streamlining processes; however, it is our firm belief that it is highly unlikely for AI to entirely take over the HR department. The human element in HR—empathy, emotional intelligence, and nuanced judgment—remains indispensable for managing a diverse workforce. HR leaders who can maintain a balance between AI and human expertise will make the most significant impact. And, those organizations with leaders that prepare, provide guidance, and make sound decisions will gain a competitive edge and thrive in the AI-enabled future.

Special thank you to Becky Foster, Senior HR Business Strategist, for contributing to this Emerging Issues in HR. 

Do you need help with developing your HR strategy and identifying the tools you need to get there? The experts at Clark Schaefer Strategic HR are here for you! To learn more, visit our HR Strategy Services page or contact us.

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At-Will Employment Termination Risks

Page with the text "employment termination" and a pen and glasses

HR Question:

We’ve got a team member who just isn’t working out. The problem is we haven’t taken all of the right steps in documenting the issues, but we’re an at-will employer – can’t we just terminate anyway? What are the risks of at-will employment termination?

HR Answer:

The term “Employment At-Will” is a familiar one for most employees and companies. So, what exactly does this term mean? Conceptually, it means either the employer or the employee is free to end the employment relationship at any time, with or without notice or cause. A majority of employers throughout the United States establish at-will relationships with their employees, either as the result of the law, existing policy, or a combination of both. However, does this mean it gives an employer the freedom from risk should they decide to terminate an employee on the basis of the at-will employment relationship? Not exactly.

At-Will Termination Risks

As a best practice, an employer should not completely rely on an employee’s at-will status to defend a termination decision. Even though good cause is not needed to end an at-will employment relationship, most employers typically have a valid reason for termination, such as continual poor performance.

Prior to terminating an employee under at-will circumstances, keep in mind that it’s not uncommon to receive a retaliation claim, a discrimination claim, or a similar action.

Additional justification is expected when putting an individual out of their job, whether it has to do with the person’s performance, violation of company policy, or another workplace issue entirely. Providing justification can reduce the time and resources related to managing a termination.

Protect Yourself with the Basics

It’s important to establish best practices on the front end, and consistently follow them to reduce your at-will termination risks. Ideally, no one should be surprised by a termination notice. Considering all of the dynamics that are usually in play when it comes to terminations, the best way to approach an at-will termination is to follow solidified HR practices from the beginning. As the age-old HR saying goes “document, document, document!”

Having clearly defined procedures, training, practices, and consistent follow-through allows an employer to navigate the waters of risk when it comes to at-will terminations.

If issues have not been documented, there are a few things to consider:

  • If progressive disciplinary action is listed in the employee handbook, it’s important to follow it consistently.
  • Before taking steps toward termination, consider the approach. Are these actions in line with the company’s culture? Are they representative of the company’s values?
  • It is okay (encouraged, even) for HR to press the “pause” button on the situation and require the necessary documentation before authorizing a termination.

Steps to Reduce Employer Liability and Risks

There are easily established processes and policies that can be implemented to reduce liability and risk throughout the employee’s life cycle. We recommend that employers:

  • Use disclaimers in the new-hire process (offer letters and new-hire orientation) and require signed acknowledgments.
  • Clearly outline employment expectations.
  • Implement a progressive discipline policy.
  • Adopt a grievance procedure.
  • Train supervisors on how to properly document disciplinary actions.
  • Include human resources in the disciplinary process.
  • Review situations carefully and seek legal guidance prior to making adverse employment decisions.

Culture and Morale Matter

It’s important to consider all of the issues that go along with terminating someone who is employed on an at-will basis. Parting ways with an employee, justified or not, can have an impact on your culture and morale. Handling terminations in a manner that is consistent, ethical, and shows dignity and respect for the individual involved plays a critical role in how your remaining employees view the company’s leadership.

There is always a risk in termination. It is always good practice to involve your attorney before pulling the final trigger to ensure support if a legal issue may arise.

Thank you to Julie Schroer, SHRM-CP, for contributing to this edition of our HR Question of the Week!

Let the HR experts at Clark Schaefer Strategic HR help you navigate the employment law minefield. Check out our HR Compliance and Recordkeeping page to learn more, or contact us directly! 

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What Employers Should Know About Pregnancy Discrimination

Do I Need a Heat Safety Plan? How Do I Build One?

Professional working outside in high heat

HR Question:

As an employer, I understand it’s my responsibility to take precautions when employees work outside in the heat. Additionally, I learned that OSHA is now conducting Heat Safety Inspections. Do I need a heat safety plan? If so, how do I build one?

HR Answer:

As summer heats up and the temperatures rise above 80°F, so too will heat-related illnesses. Employers should be aware that OSHA places a duty on employers to protect employees from occupational heat-related illnesses both indoors and outdoors. SHRM reports that employers should prepare for an increase in heat-related workplace inspections by OSHA especially as the heat index rises!

Despite being commonly underreported, the Bureau of Labor Statistics found that since 2011 there have been 436 work-related deaths caused by environmental heat exposure. The death of postal worker Peggy Frank from heat stroke in her mail truck led to legislation that require all postal vehicles to be modified to include air conditioning within three years. In 2021, OSHA announced an enforcement initiative on heat-related hazards, developing a National Emphasis Program on heat inspections, and launching a rulemaking process to develop a workplace heat standard.

Starting a Heat Safety Plan

A job safety analysis will provide a better understanding of the heat risks that your employees experience. Positions commonly at risk for heat-related occupational illness are workers in agriculture, construction, landscaping, and mail and package delivery. Indoor environments such as manufacturing plants and distribution centers can create high-heat environments, which through ambient heat and protective clothing can be just as dangerous as the outdoors. When building your heat safety plan, be particularly mindful of the dangers involved with physically demanding positions and positions requiring bulky equipment or gear in high heat.

Monitor The Heat

When the heat index reaches 80°F or higher, serious occupational heat-related illnesses and injuries increase. This is especially true when employees are not yet acclimatized to the heat, performing strenuous work in direct sunlight, or in radiant heat without frequent access to cool water and shade. Monitor ambient temperatures and prepare for high heat events to ensure adequate measures are taken to protect employee health. Businesses with high-heat environments should establish a heat alert program so adjustments can be made to the physical demands of employees working in high heat. Businesses may consider scheduling hot jobs for cooler parts of the day or planning scheduled maintenance or repair work for cooler seasons.

Evaluate Your Tools

Once there is a thorough understanding of the organization’s heat safety risks, evaluate environmental controls such as air conditioning, fans, heat shields, ventilation, or other ways of reducing radiant heat sources. Investments made in improving employee working conditions will improve productivity and provide a boost to morale. Employers can continue to reduce the risk of occupational heat illnesses by providing frequent breaks, and shaded cooling stations with ample cool water that is easily accessible to workers. Establishing a regular schedule of rest and hydration breaks will promote a culture of well-being where employee health and safety are the top priority.

Pay close attention to new hires in high-heat environments as they have not had an opportunity to acclimate to the environment. Provide even more frequent breaks to new employees and ease them into the physical demands. Providing body cooling and protective clothing such as cooling vests can help reduce the impact of the heat on the employee’s health.

Train Your Managers / Supervisors and Employees

Train employees and managers on heat safety to ensure that everyone knows the signs and symptoms of heat stress and is trained on heat-related illness first aid. OSHA fined a Florida-based employer heavily for exposing workers to hazards related to high ambient heat without adequately training someone to perform first aid and ensure they were available to render assistance in heat-related emergencies. Training is key to ensuring employees are educated on heat-related hazards to manage their exposure, take breaks, stay hydrated, and monitor signs of heat stress. Managers need to be trained on heat-related hazards, safety protocols to reduce heat-related illnesses, and how to obtain first aid for any employee suffering from heat-related illness.

Employers can consult the Criteria for a Recommended Standard: Occupational Exposure to Heat and Hot Environments for more recommendations on how to build a heat safety program and keep employees safe from heat-related illnesses.

Special thanks to Colleen Mahoney, PHR, for contributing to this edition of our HR Question of the Week!

Have you had a safety audit recently? Do you know which OSHA forms you are required to complete? A safe environment plays a key role in keeping a company Healthy, Safe, and Secure. Strategic HR has the expertise you need to ensure your policies and practices are keeping your workers, and customers, safe. Visit our Health, Safety, and Security page to learn more about how we can assist you.

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What Do I Do Now That I-9 Flexibilities Are Ending?

Image of woman signing I-9 employment documentation

HR Question:

In July 2023, the Department of US Citizenship and Immigration Services eliminated the Form I-9 flexibilities put into place due to COVID-19. Recently, I understand they are again allowing the remote review of I-9 documents. Is this accurate?

HR Answer:

Yes, you’re correct – the US Citizenship and Immigration Services (USCIS) confirmed that the temporary flexibilities for verifying documents for I-9 forms expired on July 31, 2023. Any remote team members hired during the COVID-19 pandemic (on or after March 20, 2020) whose I-9 documents were verified remotely, had to have their documents physically inspected. That verification was required to be completed by August 30, 2023.

While we all scrambled to update these documents, USCIS came out with additional guidance on July 25, 2023, that provided an alternative procedure for Form I-9. The Notice indicated that employers who meet the following four (4) requirements may choose an alternative procedure in lieu of physically examining Form I-9 documentation that had been examined remotely under the COVID-19 flexibilities.

To qualify for the alternative procedure, an employer must have:

  1. Performed remote examination of an employee’s documents between March 20, 2020, and July 31, 2023;
  2. Been enrolled in E-Verify at the time they completed the Form I-9 for that employee;
  3. Created a case in E-Verify for that employee (except for re-verification); and
  4. Be currently enrolled in and continue to participate in E-Verify.

Employers who do not meet all four requirements must perform an in-person physical examination of documents by August 30, 2023.

The USCIS provides details on the alternative procedure and examples of properly completed forms.

New Form and Additional Flexibilities

Although many HR professionals celebrated the alternative procedure that was provided, we had more to celebrate when the flexibility was extended. In August 2023, the USCIS allowed permanent remote examination of employees’ Form I-9 documents IF they are enrolled in the E-Verify program. For more guidance, refer to the detailed alternative procedure.

Finally, the department did issue a new I-9 form in August 2023. The form dated “10/19/2019” can continue to be used through October 31, 2023, but beginning November 1, 2023, only the new Form I-9 dated “08/01/2023” can be used.

What if an Employee Refuses?

If an employee is unwilling or unable to provide documentation for physical confirmation or remotely if you qualify, that employee is subject to termination. Employers cannot retain an employee who has not provided documentation for the I-9 form, including presenting their documents for physical inspection. Organizations that retain an employee who is not authorized to work in the United States, or who have not reviewed documentation in person, are subject to hefty fines by the USCIS.

Remember, I-9 forms should be kept in a separate file from the employee’s personnel file, and make sure you retain the updated I-9 forms. For additional information, be sure to check out USCIS’s FAQ for Employers.

Special thank you to Patti Dunham, MBA, MA, SPHR, SHRM-SCP, Director of HR Solutions and Sheryl Fleming, MA, SHRM-SCP, HR Business Advisor for contributing to this edition of our HR Question of the Week!

I-9 forms and other employment verification processes are important to get right – otherwise, you might be subject to costly fines and legal fees. Let our HR experts lend a hand! Learn more about how we can support your compliance efforts by visiting our HR Compliance and Recordkeeping page or by contacting us today.

What Are The Benefits of Providing a Mentoring Program?

Young professional watching her colleague point to a whiteboardHR Question:

Our team members have been asking for additional development opportunities and a mentoring program has been suggested. What are the benefits of a mentoring program, and how do we implement one?

HR Answer:

The benefits of having a mentor can be immeasurable. Almost 80% of CEO’s say they had mentors throughout their careers which led to greater career success. Mentors can provide a different lens to see challenges through; they can also provide excellent advice on both professional and personal fronts – and where those fronts intersect.

Having a mentor can make a clear, positive impact on someone’s career. But what can a mentorship program do for employers, as well?

Benefits of Having a Mentoring Program

For Employees:

Both the mentee and the mentor can benefit significantly from a mentor program. The mentee is able to find guidance, increase their knowledge and their network, and have a trusted and tested ally to bounce ideas off of. For the mentor, this relationship can give them the opportunity to give back or to pay their success forward. Additionally, the mentee may ask questions of the mentor that prompt the mentor to re-evaluate or re-examine their own opportunities through a different lens.

In the end, both parties can benefit from a trusted partner, an honest conversation, and someone they know they can lean on in the workplace, creating psychological safety.

For Employers:

As the University of California, Davis illustrates, the benefits are not for the employees alone! By implementing a mentorship program internally, organizations can:

  • Increase retention by showing a commitment to growth, leadership, and continuous learning.
  • Maintain institutional knowledge and encourage knowledge transfer.
  • Foster an inclusive and diverse environment, improving their employment brand.

How to Implement Successfully

When implementing a mentoring program, follow the Society for Human Resource Management (SHRM)’s five-step plan:

  1. Establish requirements for participation from both groups.
  2. Establish specific activities and guidelines for the mentors.
  3. Acquire mentors and mentees.
  4. Match mentors and mentees.
  5. Monitor and evaluate the program during and after.

While each step is important in its own way, it is incredibly important to connect any activities, actions, or guidelines with your own goals for the organization. For example, do you have a goal of increasing retention and hiring from within? Make sure that you have activities related to how employees could see themselves growing in, up, and through the company. Is your goal to create a safe space and trusted ally between mentors and mentees for mental/physical health? Then make sure exercises, questions, and activities are geared toward building trust and open communication.

What Makes a Mentoring Program Excel

Meeting with your mentor on a regular basis with an outlined agenda will help you utilize your time wisely. Be prepared to talk about your goals and how you have moved the needle closer to the goal. What are the roadblocks you’ve experienced; how did you overcome them; how did you implement your mentor’s previous advice? You should talk about key takeaways and next steps for your next meeting.

When establishing a mentor program, make sure all participants are on the same page. When mentors and mentees aren’t aligned on desired outcomes, mentors might give advice that doesn’t match the situation, or mentees might feel disillusioned or frustrated. The partners don’t always have to agree – nor is each party always right – but setting expectations for open and respectful dialogue and honest feedback can be helpful for both sides.

Be sure to provide an out. If one party isn’t giving the amount of energy necessary for a successful partnership, or if roles aren’t being taken seriously, it’s important that everyone understands that the arrangement should only go on as long as both parties feel it is beneficial.

Special thanks to Tracy Walker and Sammie Kelly for contributing to this edition of our HR Question of the Week! 

Providing impactful training and development opportunities can be a key factor in attracting and retaining the best talent. Learn more about how Strategic HR can help you build the right training and development programs for your workforce. Check out our Training and Development page or contact us today to learn more.

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What is Juneteenth & How Can We Celebrate It In The Workplace?

Colorful sign for Juneteenth

HR Question:

I know Juneteenth is an official federal holiday, but I don’t know much about it. What is its significance and how can we reflect that in the workplace?

HR Answer:

This is a great question, and an important one at that! Here at Strategic HR, we want to recognize the importance and deep meaning behind the history and celebrations of Juneteenth. There is no better way to do so, in our opinion, than to lift and highlight the voices of those who have ties to the joy and the sorrows behind this day. Narcissa Murphy, one of our Cincinnati-based HR Business Advisors, shared what Juneteenth means to her and her thoughts on how workplaces can embrace the celebration.

Narcissa’s Experience

Juneteenth commemorates June 19th, 1865, a day once observed as African American Emancipation Day. Although the Emancipation Proclamation was passed two years prior and the 13th amendment six months prior, enslaved people in Galveston, Texas would not be notified about their freedom until Union troops arrived to share the word. In 2021, Juneteenth was signed in as a federal holiday by President Joe Biden.

As a child, I grew up celebrating Juneteenth alongside my family by attending festivals, parades, and cookouts. We would watch documentaries together to better understand our history – to understand the significance of this celebration and to remind us of the sheer magnitude of suffering our ancestors had endured. This day gave us the opportunity to honor them.

To me, this day reminds me to stay humble, to honor myself and my family, and to pay tribute to what my ancestors went through to get me to where I am today. I’m reminded of a frequent phrase, “You stand on the shoulders of your ancestors.” My ancestors came here unwillingly, made something out of nothing, and survived in spite of the horrors inflicted upon them. And while this day commemorates the losses that we as a people have endured – the loss of life, culture, names, and traditions – we have made it our own celebration and find ways to thrive today.

Celebrating Juneteenth in the Workplace

Supporting and showing recognition for this time in history can be accomplished in various ways. The first step, and potentially the most important step, is understanding the history and its importance. Take the opportunity to educate your team members on Juneteenth’s timeline, important facts about the day, and provide additional resources for those wanting to learn more.

Allow opportunities for your team to volunteer or support local festivals and parades. Encourage respectful attendance and participation, or if schedules don’t allow, find ways to raise money or gather donations for any participating charities.

Bring the celebration into the office! Create an annual company/office celebration, or include this day as an official company holiday to align with the public federal holiday schedule.

Let’s Celebrate!

Not sure where to find a celebration near you? Check out these local and neighboring festivals and celebrations in the Tristate area:

  1. Cincinnati’s 36th Annual Juneteenth Festival
  2. Cincinnati’s Official Juneteenth Parade
  3. Florence Ky 1st Annual Juneteenth “Discovering Your Roots”
  4. 3rd Annual Hamilton Juneteenth Celebration
  5. Juneteenth Panel Discussion & Tasting Event
  6. Springboro 3-on-3 Basketball Tournament Celebrating Juneteenth 2023
  7. Brown Sugar Fashion Gala: Chocolate City – A Juneteenth Celebration
  8. Springboro Juneteenth Jubilee
  9. City of Woodlawn – Juneteenth Fireworks Festival

You can learn more and find additional ways to celebrate at Juneteenth.com.

Juneteenth has been a cornerstone celebration in my childhood, my adult life, and my professional life. Everything that I am today is because of the people who have come before me. They looked beyond their situation and thought of me today; they found ways to fight for freedom so that I could be what I am– a successful professional in corporate America, learning and growing and making my own life.

A special thank you to Narcissa Murphy, HRM, HR Business Advisor for her thoughtful contribution to this week’s HR Question of the Week.

Having an inclusive organizational culture that contributes to your organization’s overall success doesn’t happen by accident. It needs to be nurtured. Learn how we can help you to nurture your culture through our employee relations services, or contact us today.

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Building A DEI&B Roadmap

Diverse group of individuals lined up

When considering how to implement a diversity, equity, inclusion, and belonging (DEI&B) roadmap, many organizations may feel intimidated. It can feel like a mountain to climb when it comes to the sheer number of possibilities, programs, and efforts that you can undertake.

So, what’s a measured and structured way of implementing (or evaluating already established) DEI&B programs within your organization? We will share our recommendations for the steps you can take to develop your program objectives and goals, as well as how to create a Cultural DEI&B Roadmap to help you on this journey.

Step 1: Understand Your Purpose & Define Your Vision

The first step is to identify and define the overall purpose of your DEI program. For example, is your organization considering the program to remain on par with competitors in the market? Is the ultimate objective to establish and nurture an inclusive culture? Or potentially, is a DEI&B program on your radar because the organization lacks the diversity that you would like to see compared to the surrounding community?

There could be many reasons behind it – it could include all the reasons listed above, and more! Whatever your reasons for developing DEI&B programming, they should inform your program goals and objectives.

Step 2: Define Your Strategic Objectives

Before you can effectively build a plan for where you want to go, you must first understand where you currently are. To do this, you will need to do a statistical analysis to understand the makeup of your current workforce by analyzing employee data from your HR information system (HRIS) and/or payroll system. We also highly recommend conducting a confidential employee survey to gather honest feedback on your organization’s DEI&B status.

Once you’ve gathered the data and have a better picture of what your organization’s DEI&B landscape looks like, it’s important to establish a SMART (Specific, Measurable, Actionable, Realistic, and Timebound) goal to drive your strategic objectives. An example goal could be, “In order to accurately reflect the diversity of our community and to position ourselves as an employer of choice, we want to increase our organization’s racial diversity by 20% in the next three years.”

That’s a great goal! Now how do you achieve that?

Step 3: Create a DEI&B Cultural Roadmap

To build a comprehensive DEI&B roadmap to meet your goal, you have to define the strategic objectives that you will use to get there. To define those objectives, you should consider four key pillars: Attract, Belong, Promote, and Influence. Each pillar holds up a different aspect of a comprehensive DEI&B plan and together will help you to develop a cultural DEI&B roadmap.

There are four main pillars in DEI&B Cultural Roadmaps:

  1. Attract – Recruiting a diverse workforce – talent acquisition management
  2. Belong- Employee engagement, belonging, and retention
  3. Promote – Career pathing, career progression, learning & development, and succession planning.
  4. Influence – how are we operating an organization within our community and within the world? Includes community relations and volunteer opportunities. Includes do you have a DEI-focused vendor list?

You MUST include all 4 pillars, or your efforts will fall down just as a three-legged chair. And each one of those pillars, what we do is we roll up various initiatives underneath each one of those pillars over a several-year road map in order to get where we want to go long term.

Attract

If your goal is to increase the diversity of your workforce, it may seem obvious that you will need to attract a more diverse pool of talent. But how can you do this? An excellent place to start is by reviewing your job descriptions and scrutinizing whether any of your current requirements detract diverse candidates from applying. For example, are the education, background, and day-to-day requirements absolute “need-to-haves”, or are you willing to be flexible? Could your requirements be open to experience in exchange for formal education? Do they have to have a driver’s license, or do you just need to confirm that they have reliable transportation to and from work?

Belong

Belonging is one of the newer concepts to enter the diversity, equity, and inclusion conversation, but it requires no less attention. By appropriately promoting and creating the paths for promotion for our diverse team members, it allows team members of any background to see the potential for themselves in roles they may not have had access to before.

If they can see someone who looks like them, thinks like them, operates like them, lives like them in a high-achieving role, it can make an incredible impact. Or, if a high-level role isn’t attractive to some individuals, we can still achieve a sense of belonging by engaging mentors and advisors to help guide and educate our team. Having those individuals in our professional lives that have similarities with us, whether that’s culturally, physically, spiritually, or otherwise, can make it a lot easier for people to be motivated and incentivized to engage and remain with the organization.

Promote

So, how can your organization promote diverse candidates internally if your organization is already lacking diversity? Minority entities and groups of individuals who haven’t had the same access to opportunities may already be at a disadvantage when considering growing through the company.

How can the organization provide access to training or education to allow these groups the opportunity to grow within and through the company? Promoting from within requires this key action.

And while promoting from within requires a longer timeline in comparison to attracting diverse talent (potentially three years versus a couple of months), this action will set your organization up for success in the long run. If you’re looking for a truly successful promotion-from-within strategy, be prepared to take steps in these initiatives over five to ten years. Tactics for this strategy can look like career pathing and building lines of succession. By taking smaller steps towards inclusion under the “promote” pillar, you’re creating an even more inclusive environment that will retain the diverse talent that you worked so hard to attract.

Influence

When we consider “influence,” we may initially assume that we’re hoping to influence internally – whether that’s decision-making, culture, or inclusive conversations. And while those are absolutely areas that we should consider and impact through this process, the concept of “influencing” through your DEI&B roadmap actually applies outside of the organization. It involves asking questions such as “How can we show the community that we live and/or operate in that we promote and encourage and support particular minority groups?” Is it engaging in Black History Month, Asian American and Pacific Islander Month, Native American Heritage Month, Hispanic Heritage Month, Pride, or more? And is that engagement something that we (as an organization) can continue year-round?

This external “influencing” goes hand-in-hand with attracting diverse team members – by getting involved and positively impacting community groups, then you’re positioning yourself as an employer of choice.

A successful DEI&B roadmap takes time, effort, planning, and funds. Whether your organization is still in the foundational stages of building a DEI&B program or reevaluating previously made goals for your current program, a roadmap can help guide the key players towards success in achieving the strategic level goals.

Special thanks to Mary Mitchell, MBA, SPHR, SHRM-SCP, CHRS, and Samantha Kelly for contributing to this Emerging Issues in HR!

Building a comprehensive and inclusive diversity, equity, inclusion, and belonging plan can improve team morale, create a welcoming work environment, and position your organization as an employer of choice in a difficult labor market. If you need assistance or guidance in building this plan, visit our DEIB Consulting Services page or contact us today! 

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How Do We Help Employees Who Don’t Get Along To Work Well Together?

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HR Question:

We have two employees who don’t seem to like each other, and it is starting to affect their work. How do we help employees who don’t get along to work well together?

HR Answer:

It can be challenging when co-workers don’t like each other, but it’s our job as HR professionals to help employees work well together. Here are several steps you can take to improve the situation:

Seek to understand first

Investigate the cause or causes of the conflict. It’s easy to jump to conclusions about what is happening. Speak to the employees involved and try to understand the tension between them. Is it a personality clash, a misunderstanding, or a difference in working style? Once you understand the cause, you can work to address it and find a solution.

Encourage open communication

Encourage the employees to communicate openly with each other. You may need to facilitate a conversation to help them understand what open communication is like. If your employees are struggling to communicate openly, they may benefit from training in effective communication, including active listening and conflict resolution.

Serve as a mediator

Sometimes employees can be stuck in their own way of thinking or workstyle preferences and unable to see the situation from another point of view without additional support. In these situations, you can serve as a mediator to help both employees to see and appreciate each other’s perspectives. At Strategic HR, we have found using an assessment tool, such as the Everything DiSC, to be a valuable tool to help employees to better understand themselves and each other, as well as learn specific strategies to work together more effectively. Oftentimes, helping your employees to realize that their personalities are different and teaching them better ways to work with each other can improve their communication and strengthen their relationships.

Set clear expectations

It is important to set clear expectations for behavior and performance and make sure everyone is on the same page. Create a shared vision for the team and encourage everyone to work toward that common goal. Tell your employees that they don’t need to be friends, but they do need to be able to work together and should be professional in the workplace.

Lead by example

Model open communication and positive conflict resolution with your teams and peers. This can be a powerful way to put your expectations into action showing employees how to resolve conflicts and work well together.

Follow up

Follow up to ensure that the solution is working and that your expectations are being met. If one or more of your employees continues to not meet your behavioral and performance expectations, it would be appropriate to discipline them, up to and including termination. As always, be sure to follow any policies that you have regarding how to handle this type of behavior, and be consistent in your approach as you strive to help employees work well together.

Thank you to the HR Support Center and Robin Throckmorton, MA, SPHR, SHRM-SCP, Shareholder in Charge, for contributing to this HR Question of the Week.

One of the stickiest aspects of human resources management is Employee Relations. Are you having difficulties with employees not getting along? Are you struggling to manage disrespectful behaviors? Clark Schaefer Strategic HR have years of experience in employment relations. For example, we can facilitate the Everything DiSC assessment to help your employees work better together. Visit our Employee Relations page to learn how we can help you resolve some of your toughest people challenges.

 

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What Are Stay Interviews and What Questions Should I Ask?

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HR Question:

Can you explain stay interviews – what are they? How should we use them and what should we ask?

HR Answer:

Not to be confused with exit interviews (meant for seeking to understand why departing employees are leaving), stay interviews are a great tool to understand why your employees choose to stay with your organization. They can also help to uncover potential areas of concern that may cause employees to leave if not addressed. Conducting stay interviews shows that you care about employees’ experiences and gives you the opportunity to make changes to retain your most valuable asset – your employees.

Who should participate?

Start with your end goal in mind. Consider why you’re conducting stay interviews and what you want to learn. This will help to determine who should participate. Some organizations may choose to focus on a particular department, a company location, or high performers. Others choose to conduct company-wide stay interviews. There’s not necessarily a right or wrong answer here.

Choosing Stay Interview Questions

Stay interviews typically consist of five to six questions, with at least one question that is quantifiable (i.e., rating satisfaction using a 5 or 7-point Likert scale) while leaving the others open-ended. The quantifiable questions provide a quick way to measure and easily report on employees’ attitudes, opinions, or perceptions of an aspect of work or the work environment. We recommend following quantifiable questions with asking why they chose their answer for additional insight.

Sample quantifiable questions:

  • Would you recommend working here to a friend?
  • Do you have the resources that you need to do your job effectively?
  • Do you have clear goals and objectives?
  • How happy are you to come to work every day? (Use a 5-point answer scale)

On the other hand, open-ended questions dig deeper into your employees’ thoughts, feelings, and experiences. These answers can reveal themes of what is going well and shed light on what can be improved to encourage employees to stay.

Sample open-ended questions:

  • What do you look forward to when you come to work each day?
  • What do you like most or least about working here?
  • What are your favorite aspects of your job? Least favorite?
  • If you could change something about your job, what would that be?
  • What would make your job more satisfying?
  • How do you like to be recognized or rewarded?
  • What skills/talents are you not currently using at work?
  • How can we best support your learning and development?
  • What motivates (or demotivates) you?
  • What might tempt you to leave?
  • What can your manager do more of or less of to best support you?

Choose your questions carefully to ensure they help you to learn what you really want to know. It is okay to go into this process with some assumptions about what is and is not going well. The right questions can help you tease out whether your assumptions are correct. Sometimes addressing the “elephant in the room” is exactly what needs to be done. In other situations, the right questions can reveal issues that you weren’t even aware existed.

Selecting the Best Approach

Once you’ve identified who you want to include in the process and what you want to ask, your next steps are to determine the where, when, and how.

Location

Stay interviews can be conducted in person or virtually. Keep in mind that it is important to maintain privacy and confidentiality when selecting where to host the conversations. If conducted in person, be sure to select a location that is private and away from where others could overhear the conversation.

Timing

If you use five to six questions, they typically can be completed in less than thirty minutes. You can consider conducting stay interviews once a year or more frequently, depending on your needs.

Establishing Trust

It is essential to establish a feeling of psychological safety and trust so that employees feel comfortable being honest and open in sharing information. It is best for the data collection to be anonymous with results reported in summarized themes that are not traceable back to specific individuals. There should be no worry of retribution for sharing their thoughts and opinions. As a result, you’ll want to choose your interviewer(s) carefully.

Many organizations choose to have stay interviews conducted by independent outsourced experts who can guide them through the entire process of participant selection and question development, as well as conducting the interviews and providing follow-up data reports and recommended actions. Independent consultants can apply an unbiased approach throughout the entire process. This often leads to more robust data and action plans as employees are more willing to open up and talk.

The Key to Productive Stay Interviews

Hopefully, it goes without saying that you must go into this process prepared to react to what you learn. Employees are typically excited to have their voices heard. They will be anxious to see what you do with the information they have shared. It would be quite ironic if a lack of acknowledgment of their feedback would lead to employees feeling devalued and choosing to leave.

At the same time, it is unrealistic, and in most cases unnecessary, to address every concern that is raised. There will inevitably be outlier comments in the information collection process that only apply to one specific person or don’t seem to be significant for the broader good of your organization.

Be Transparent

You can position the process for success with clear and transparent communication from beginning to end. Well in advance of the stay interviews, make sure that you have communicated your intentions of conducting the interviews, why you are doing them, and the expected timing of the interviews. Particularly if you are using outsourced HR experts to facilitate the interviews, be sure that employees know who these folks are and what to expect.

In addition, manage employees’ expectations on the front end and throughout the process regarding how you plan to handle what is learned. It is fair and reasonable to say that you don’t expect to be able to solve all of the concerns that may be shared, but you are committed to learning from their perspectives and making some improvements.

Showing that you are committed to listening and taking action to strengthen your organizational culture will go a long way in increasing your employee engagement and their desire to stay.

Thank you to Melinda Canino, MS, Sr. HR Communications Advisor, and Alisa Fedders, MA, SPHR, Manager of Business Advisors, for contributing to this HR Question of the Week.

Are you left wondering why employees choose to stay or leave your organization? Our experts at Clark Schaefer Strategic HR can design and conduct independent, unbiased stay or exit interviews as well as employee surveys, pulse surveys, and more to assess employee satisfaction and engagement. Learn more about how we can help on our HR Communications page or simply contact us today!

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HR’s Role During An Economic Crisis

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High inflation, rising interest rates, record-low unemployment, and strong consumer spending seem to have economists scratching their heads. In today’s economic uncertainty, HR professionals are preparing to pivot to meet the needs of their organizations should the economy go into recession.

HR professionals are no strangers to navigating and leading through turbulent times. Throughout the pandemic, HR was and still remains on the front lines – leading change and creating a culture and space that supported a massive transition to remote work and pandemic-safe work environments. HR professionals demonstrated skills that had not been relied upon by many companies in the past, creating a focus on minimizing costs while engaging staff during challenging times.

HR professionals found themselves providing staffing insights to navigate difficult business decisions, offering creative problem-solving, and managing talent and culture, more than they ever have in the past. In this article, we will highlight several ways in which human resources professionals can continue to pivot and develop creative approaches to help their organizations weather the storm of the current economic crisis.

Assessing and Addressing Talent Needs

It may be expected that HR’s role during an economic crisis would center around talent. As companies make critical staffing decisions, the evaluation of talent and the use of that talent becomes paramount. During cost-saving conversations, significant efforts must be made to make effective use of staff. HR leaders can address these priorities through performance evaluations, development tools, succession plans, and cross-training initiatives.

Despite predictions, unemployment remains at historic lows and the Great Resignation could be seen as the beginning of a long-term shift in the labor market. For many businesses, growth has been slowed because of workforce shortages. Fortune indicates that the U.S. workforce participation rate has fallen to 62.3%, which is down from 67% in the late 1990s. More than ever before, HR professionals need to focus on strategies to help their organizations attract, retain, and develop high performers.

As organizations strive to meet their attraction and retention goals, they are also faced with the realities of the current economic conditions. The soaring cost of living has placed pressure on employers to increase salaries as paychecks are stretched by the significant increase in the prices of household goods. HR’s role is to help the business remain competitive in the job market by developing total compensation programs designed to motivate and reward high performance.

In addition to ensuring compensation and benefits are competitive, employers are challenged with meeting the needs and expectations of a multi-generational workforce. In the Generations at Work Study, two of the top reasons that job seekers across all generations choose to join a company besides salary are the ability to enjoy work-life balance and having growth and learning opportunities. HR can champion programs that motivate all generations of employees by offering ample paid time off, flexibility, and learning and professional development opportunities.

By taking a multifaceted approach, today’s HR leaders have the opportunity to create the workplace of the future that is designed with successful talent attraction and retention strategies built in.

Reskilling for the Future

As technology rapidly advances, one thing is certain – many businesses are finding a skills gap with current employees, and this gap is hindering growth. During times of an economic slowdown, HR can shift the focus to the future and find ways to fill skill gaps with current employees through training and development opportunities.

This can be a win-win situation as it helps the business to better meet its needs, and it addresses the desire of employees who are looking for growth and learning opportunities.

Managing the Mood

Difficult times become the most integral time to “manage the mood” of the company. Another component of HR’s role during an economic crisis is to partner with the leadership team to encourage and embrace a culture open to flexibility, evolution, and giving grace to others.

Particularly during times of economic downturns or layoffs, it can be hard to maintain the psychological safety of the team. This is the time to remain transparent in communications on what is happening in the organization, as well as recognizing what is left unknown. Employees left in the dark can become disengaged, putting your organization at risk of fostering a culture of quiet quitters.

Supporting Mental Health and Well-Being

Economic challenges always take a toll on employees in one way or another, and consideration must be made for the mental health and well-being of those that are at the heart of your organization to assure a thriving and productive environment. Promote your Employee Assistance Plans (EAPs), take advantage of the co-pay waiver of many health plans for mental health, and provide regular communication to staff on financial offers from local banks and community resources.

It’s no secret – HR’s role in this economic crisis has shifted and grown. The current economic crisis has put pressure on HR professionals and business leaders to do more with less. Businesses across the board are all looking for creative ways to engage their workforce, reinforce productive and positive behavior, and retain staff – all while allaying employee concerns and fears.

Human Resource professionals can and should take this unique opportunity to play a significant role in leading their organization through this national crisis. By showing their support of the business and its employees through appropriate economic-driven actions, they can support both the organization’s vision/mission and its employees’ health and wellbeing.

Special thanks to Colleen Mahoney, PHR, HR Business Advisor, for contributing to this edition of our Emerging Issues in HR! 

HR plays an integral role in optimizing your operations during challenging times. Clark Schaefer Strategic HR can help with your leadership and HR strategy. For more information, please visit our HR Strategy page, or simply contact us – we’d love to hear from you.

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What Do I Have to Know Before Filing My EEO-1 Report?

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HR Question:

What is an EEO-1 Report and how do I know if I am required to file one?

HR Answer:

As defined by the Equal Employment Opportunity Commission (EEOC), the EEO-1 Report is an annual mandatory data collection of demographic workforce data, such as race/ethnicity, gender, and job categories. The window for the 2022 data collection will open in mid-July 2023.

Am I Supposed to File an EEO-1 Report?

Great question to start with! Not every employer is required to file an EEO-1 report. That being said, there are a few questions to ask yourself to understand if you need to file:

  • Do you have 100 or more employees?
  • Are you a federal contractor?
  • Are you a first-tier subcontractor with 50 or more employees and at least $50,000 in contracts?

If you answered “yes” to any of the above questions, then you need to file an EEO-1 report annually. Employers also must file if the organization is any of the following:

  • Owned by or affiliated with another company and the entire enterprise has 100 or more employees.
  • Serving as a depository of government funds for any amount.
  • A financial institution that is an issuing and paying agent for US Savings Bonds and Notes.

There are some organizations that are exempt, such as State and local governments, public primary and secondary school systems, institutions of higher education, American Indian or Alaska Native tribes, and tax-exempt private membership clubs other than labor organizations.

What Should I Know Before I File?

It always pays to be prepared! Before you start gathering the data yourself, here are a few tips to help you be better prepared to file your EEO-1 Report.

First, research and understand the requirements for filing. While these requirements don’t change frequently, it’s best practice to double-check the most up-to-date requirements, which can be found on the EEOC‘s website. If you have additional questions, the Message Center provides an outlet to reach out to the EEOC for guidance. This page will open in mid-July as the window for 2022 data collection opens.

Gathering the data yourself can be difficult. While this may not be an immediate solution, investing in an HRIS or a payroll system can be a great resource. Some software includes an HR solution that provides an efficient and accurate way to access the employee data needed to complete the report accurately.

If you do not have an HRIS or payroll software solution, you can have each employee complete an EEO Self-Identification Form. This form is voluntary, however; if an employee declines to identify, the federal government requires you to determine this information by visual survey and/or other available information. Although there is not a specific form that you are required to use for self-identification, here is a sample EEO Self-Identification Form from our Virtual HR Support Center.

How Do I File?

If your company has never filed an EEO-1 Report before, let’s start with the basics – creating an online account. Visit the EEOC Data page, select “Create an Account,” then log in to the EEO-1 Component 1. At that point, new users can link their individual user account to a company record by selecting “Add Company to List” on the Your Company List page and entering your company’s EIN. After you register, you will receive your Company ID and PIN.

You will need the following information to complete the report:

  • Company ID and PIN
  • Company EIN and NAICS code
  • Company DUNS Number (if the company is a federal contractor)
  • Establishment address(es) – for a single-establishment, submit only one EEO-1 data report; for a multi-establishment company, submit a separate report for each location.
  • A count of all full-time and part-time employees during the specified pay period you have selected (for 2022 reporting in 2023, you can select October, November, or December of 2022)
  • Gender and race/ethnicity of all employees
  • Job categories for all employees
  • Employment data from one pay period in October, November, or December of 2022

Once the report is finished, it needs to be certified and submitted. Don’t forget to click the “certify report” button; otherwise, the EEOC will not receive your report.

Thank you to Sherri Hume, SHRM-CP, HR Business Advisor, for contributing to this edition of our HR Question of the Week. 

Recordkeeping is one of the more mundane tasks associated with Human Resources, but it is extremely important and can get you into hot water (i.e., incurring fines) if not done properly. Keeping the right files easily accessible and up-to-date is vital. Need some help? Visit our HR Compliance & Recordkeeping page to learn more.

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Six Ways to Encourage Employees to Set Work/Life Boundaries

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HR Question:

Our entire team would love to find a better balance with work/life boundaries, but it’s tough to find a place to start. What are some ways to encourage employees to set work/life boundaries?

HR Answer:

Most everyone knows what the “hustle” is. It’s been a part of work culture since the early 19th century, when the word was first used to mean “gumption” or “hard work.” Depending on the context, hustle may be a virtue, the antithesis of laziness, or a necessity, the extra effort one must perform to overcome bad luck, oppression, or structural barriers.

In this line of thinking, if you can’t get ahead, it’s your own fault, and you just need to work harder. You can be or do anything you want, as long as you’re willing to put in the effort. It’s what we tell our kids so they can achieve the “American Dream”—you’ve got to work hard to get good grades to get into an elite school to get a lucrative job. In the workplace, hustle means showing how dedicated you are to the organization by being the hardest worker. You’re the first one in the office and the last one to leave. You take calls and check email while on vacation. Even when you’re sick, you’re reachable.

Sometimes all that hard work pays off. Some go-getters get promotions and raises. But success stories notwithstanding, burning the midnight oil doesn’t actually increase productivity. In 2019, CNBC shared a Stanford survey showing that “productivity per hour decline(s) sharply when a person works more than 50 hours a week.”

But hustle can hasten burnout. A 2018 Deloitte survey showed that 77% of employees have experienced burnout in the workplace and nearly 70% of them feel like their employer isn’t doing enough to prevent it. Among the leading causes cited were working long hours or over weekends and having to meet unrealistic expectations.

How to Establish Work/Life Boundaries

If you’ve conducted job interviews recently, you probably know that many job seekers today have little love for hustle culture. Instead, they want the freedom at work to set boundaries so getting their jobs done doesn’t encroach on their lives outside of work. This makes good business sense too. According to Harvard Business Review, when employers support work-life balance, they promote productivity, reduce turnover, improve employee health, and boost diversity.

If you want to encourage better work and home boundaries for your employees but are wondering how to go about it, we have some tips to get you started:

Start at the top.

Encourage your managers to come and go at reasonable times and take days off. Discourage making calls or sending emails after regular working hours. Ensure that leaders are taking breaks throughout the day and are encouraging their employees to do so as well.

Focus on outcomes.

If possible, set substantive goals with your employees rather than focusing on the number of hours they’re working. Train managers how to evaluate performance based on objective measurements of productivity and efficiency. It’s the good work that matters, not the time spent at a workstation, the number of keystrokes logged, or the appearance of busyness. Added bonus: your managers will be better able to manage their time and set healthy boundaries around their work if they don’t feel compelled to monitor their direct reports’ every working moment.

Ensure proper staffing and workload.

Set expectations around the amount of work each employee should be able to complete in a standard workday. Share those expectations with the team and get their input on what a reasonable workload should look like and whether they’re feeling underworked or overworked. If you’re understaffed, you may need to assign extra work to employees, but make sure no one’s plate gets so full they’re at risk of burnout. Reward the extra effort and watch for signs of low morale.

Be flexible.

As you are able, give employees the ability to flex their schedule to take care of personal business during the workday without jumping through a lot of hoops. Use a shared calendar so everyone knows who is available and when. If your workplace has a variety of shifts, consider offering employees the ability to work hours across different shifts to find flexibility.

Revisit paid time off (PTO) options.

Review what you currently offer and dig into why you have the PTO plans you do. Make sure you’re offering at least as much as your competitors (if at all possible). In addition to paid time off for vacation and illness, consider offering paid time off for specific activities like volunteering.

Talk with your employees. Ask them how they feel about their workload, whether they currently have healthy work/life boundaries, and what would help them better attend to their personal obligations. Survey them about what’s causing them the most stress at work and what work-related matters may be keeping them up at night. Keep an open discussion going.

You can learn more about good management practices, preventing burnout, PTO, and other topics discussed here on the platform.

Special thanks to our HR Support Center for providing this edition of our HR Question of the Week.

If your organization is struggling with burnout and low morale, Strategic HR can help you to understand what’s going wrong and identify the necessary steps to increase employee engagement and retention. Contact us to help re-engage and re-energize your team!

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Designing a Modern Dress Code for Today’s Workplace

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HR Question:

We’re taking a look at revising our dress code policy. We want to balance today’s increasingly casual approach while still asking our team members to look professional. How can we create a modern dress code policy?

HR Answer:

In today’s modern workplace, the concept of dress code has evolved to reflect a more relaxed and individualistic approach. Many companies have moved away from the traditional suit, skirt, button-down, formal shoes, tie, etc. combinations that were common in the past. One of the main reasons for this shift is the changing nature of work itself.

Many jobs today are more creative and require a more individualistic approach. This means that employees are encouraged to express themselves through their clothing choices, as long as it is appropriate for the workplace. Additionally, as younger generations gain a larger presence in today’s workforce, employers have recognized the need to allow for personal expression through clothing and accessories with a lean toward a more casual dress code to attract and retain top talent.

Designing a dress code for the modern workforce is an important task and requires a delicate balance between creating a professional and inclusive environment. Here are some steps to consider when designing a dress code:

Identify your Dress Code Requirements

First, identify the requirements of your workplace, including the nature of the work, the industry, workplace safety, and the expectations of the customers or clients. It might help to categorize your approach in typical dress code categories that most individuals are familiar with, such as business casual, casual, smart casual, company attire/uniform, and business attire.

For those unfamiliar with those guidelines, providing examples is your best route to clearly outline expectations. For example, you could provide images or descriptions of appropriate attire and accessories. These examples will guide the type of attire that is appropriate for your workplace.

If the nature of an employee’s work and who they interact with varies daily (i.e., Are they customer-facing all of the time? Some of the time? Not at all?), that may result in the expectations for their level of dress to change from day to day depending on these factors. So if your dress expectations do vary, we recommend that you clarify this in your dress code policy to help employees navigate through this appropriately.

Make Sure It’s Inclusive

It’s important to balance the need for professionalism with the desire (or need, in some cases) for individual expression, respect for other cultures, and/or the way individuals identify. For example, establishing expectations or limits around how someone wears their hair could limit someone’s ability to abide by their religious beliefs or could discriminate against hairstyles that have cultural significance. For example,  The C.R.O.W.N. Act was created for this very reason.

Developing an inclusive dress code should also factor in gender identity. Avoid gender-specific language and instead use gender-neutral language, such as “employees should wear professional attire, such as a suit and tie or skirt and blazer” instead of “men should wear a suit and tie.”

Be Flexible & Seek Feedback

Flexibility is key when designing a dress code that is inclusive of all genders. Consider allowing employees to choose from a range of acceptable attire options, rather than prescribing a specific dress code. If your organization maintains a uniform (ideally, one that can be considered gender-neutral), consider allowing employees to express themselves through accessories or subtle variations in attire, while still maintaining an appropriate level of professionalism.

Finally, seek feedback from employees to ensure that the dress code is meeting their needs and is inclusive of all genders. Encourage open communication and consider making adjustments as needed.

Overall, designing a dress code for the modern workforce requires a thoughtful and inclusive approach that balances professionalism and individual expression. While there are still certain expectations and guidelines that should be followed, employees are encouraged to express themselves through their clothing choices. By understanding your workplace culture and asking employees to dress appropriately for their positions, you can help them find and maintain a healthy balance between professionalism and self-expression.

 

Thanks to Cassie Whitehouse, M.Ed., Senior HR Business Advisor, for contributing to this edition of the HR Question of the Week! 

Trying to find ways to create inclusive policies? Want to build a welcoming environment, but not sure how to develop policies and procedures that reflect that? Our team at Strategic HR can help you create policies and procedures that clearly lay out your expectations of your employees while creating a flexible and inclusive environment. Contact us today or learn more about how Strategic HR can help you remain compliant, avoid unnecessary obstacles, and increase employee trust, engagement, and satisfaction through HR Communications.

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What Questions Should I Ask During An Exit Interview?

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HR Question:

We’ve decided to start conducting exit interviews but aren’t sure of the right questions to ask. What are some key questions to ask during an exit interview?

HR Answer:

Exit interviews are an important part of the employee life cycle. These interviews, conducted after an employee has formally turned in their resignation and is in their last few days of employment with your organization, allow you to get feedback to examine and potentially improve processes, expectations, and experiences within the company. While typically conducted with an employee who is leaving on their own terms for another opportunity, you can also conduct exit interviews with those employees who are relocating, retiring, or leaving for personal reasons.

Take the time to discuss topics such as pay and benefits, team culture and expectations, and reasons why someone may have felt prompted to search for opportunities elsewhere. The answers to these questions can help you develop strategies for your HR processes. Plus, this feedback is critical to reducing turnover and creating an environment your employees want to work for. You can’t fix what you don’t know, and you won’t know unless you ask. Preparing ahead of time can allow you to ask focused questions that will lead to the necessary answers.

How to prepare for an Exit Interview

The first step in conducting an effective exit interview is to ask yourself what you are hoping to accomplish by talking to the exiting employee. Are there areas or blind spots that they may be able to shed light on or provide additional insight into? This opportunity will allow you to gather feedback that current and remaining employees may be too hesitant to share.

You may have some suspicions as to the underlying reason(s) for employees’ departures, so this can be an opportunity to test out your hypotheses. For example, you may be concerned that your salary ranges are not up to date with your market and industry, and you are lagging behind your competitors. Or is the employee leaving because of a manager, supervisor, or co-worker? Do you want to look at your culture to see if it promotes teamwork, accountability, and appreciation?

Additionally, be prepared to see the organization through this individual’s lens. They may not have had the best experience, or perhaps they felt consistently frustrated by certain elements. As a result, be prepared to listen to their feedback (and potential negative approach) with an impartial ear and an eye looking for potential opportunities for improvement.

What questions should I ask?

After determining the why, start creating questions that will get you the information you are seeking. Of course, there are many questions that you could ask, so we recommend you identify a set of questions that can be discussed in a reasonable amount of time. Here are some suggestions:

  1. Were you looking for a job (and if so, what made you decide to start looking)?
    Because of the current job market, many employers pursue passive job seekers and provide the employee with a terrific employment opportunity. If the individual was actively applying for new roles, this might help get to the root of why they wanted to leave.
  2. What caused you to accept the position?
    This is where the interviewer can get to a key differentiator between their organization and their competition. More pay, better benefits, remote work, work culture, toxic manager, etc. may be reasons why the offer made couldn’t be refused.
  3. Did your manager meet your expectations for providing appropriate direction, support, and leadership?
    It is often said that people leave a manager, not a job. If their expectations weren’t met, ask probing questions to understand why. This can shed light on any supervision and leadership issues that may need to be addressed.
  4. How can our company improve our training and/or onboarding process?
    For those newer to your company, this question allows you to determine how the employee felt about their first few months in your organization and if they feel they received sufficient training to do their job. If the employee has been with your organization for a longer time period, be sure to clarify that their suggestions can also come from their experience or role in training and onboarding processes as well.
  5. What, if anything, would you have changed about your job?
    A good follow-up question to this one is “if that change were implemented, would you return to work here?” Again, this question can get to the root cause of the turnover, and if the departing employee feels strongly enough about the company to consider returning at a future time. Remember that boomerang employees can be an asset to your organization as they can return re-energized and more engaged, so keep that door open when it’s appropriate to do so.
  6. Would you refer a friend or family member to work here?
    This question can give you additional information about the culture of the organization. If the answer is “yes, but not in my department,” follow-up questions may again reveal issues that should be addressed.

For additional areas to probe, Glassdoor provides more exit interview questions to consider.

What to do after an Exit Interview

After the exit interview, consider how you will use the data. Are you sharing it with the managers or leadership team, or are you checking the exit interview off your list and storing the information? Look for themes, especially if there is increasing turnover in one department or position. For example, are all of your customer service representatives leaving because they didn’t feel as though they were trained appropriately? Do your departing IT professionals complain about a lack of support from their manager? Use the data from exit interviews to create action plans to address issues and concerns.

Exit interviews can be used as a great tool to target turnover and retention issues. An effective exit interview is also valuable in pinpointing management and cultural challenges in an organization if the data is used appropriately. An alternate strategy is to open lines of communication with employees before they leave by conducting employee surveys or implementing stay interviews to identify and address issues before they choose to exit.

Thank you to Sheryl Fleming, MA, SHRM-SCP, for contributing to this HR Question of the Week.

Do you know why your employees choose to leave your organization? Exit interviews, while time-consuming, can be key tools for better understanding your company’s retention opportunities. Our team at Strategic HR can help you construct and conduct stay and exit interviews to learn more about why employees stay or go. Visit our Employee Relations page or Contact Us to learn how we can lend a hand in your employee retention efforts.

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What is Equal Pay Day?

Woman holding two unequal pay stacks

HR Question:

I keep seeing information about “Equal Pay Day” during Women’s History Month. What is Equal Pay Day, and how can I recognize it in my organization?

HR Answer:

Equal Pay Day is a symbolic day that puts into perspective the 23% pay gap between a woman and a man in the same role. Based on the current gap, a woman has to work one full year plus several additional weeks into the following year to make the same amount that her male counterpart made in one year alone.

In 2023, Equal Pay Day is March 14, representing the 2022 US Census Data showing women make 84 cents (all full-time workers) and 77 cents (all full-time, part-time, and seasonal earners) for every dollar paid to non-Hispanic, white men. This translates to an annual wage gap of $9,954. That gap is unfortunately even larger for most women of color, resulting in a gap of $.64 on the dollar for Black women, $.62 for mothers, $.61 for Native Hawaiian and Pacific Islanders, $.54 for Latina women, and $.51 for Native and Indigenous women.

Equal Pay Day was established in 1996 by the National Committee on Pay Equality (NCPE). The day is recognized annually, but not always on the same date due to the pay gap calculation. Even though Equal Pay Day has been around for 27 years, it is more widely recognized today, in part due to the stronger focus on eliminating the gap. Current initiatives, such as pay transparency and salary history ban laws, were introduced by individual cities and state-wide to address the pay gap.

Where are Equal Pay Laws in Place?

On January 1, 2023, three new states were added to the list of city and state governments that passed laws to protect applicants by banning employers from asking about prior salary history and/or requiring that companies list salary ranges in their job advertisements. Currently, the following governments have such laws:

States:

  • California
  • Colorado
  • Connecticut
  • Maryland
  • Nevada
  • Rhode Island
  • Washington

Cities:

  • Cincinnati, OH
  • Ithaca, NY
  • Jersey City, NJ
  • New York City, NY
  • Toledo, OH
  • Westchester County, NY

According to the Society for Human Resource Management (SHRM), pay transparency is one of the top issues people managers will face in 2023. According to Monster’s 2022 poll, 98% of workers believe salaries should be disclosed, with another 53% of applicants refusing to apply for a position if the salary is not disclosed.

How Can I Support the Movement?

So how can employers address the gender gap and honor Equal Pay Day in their organizations? Some recommended ways include:

  • Performing an Equal Pay Audit to review job classifications, salaries, and genders and take corrective actions if inequity is found.
  • Reviewing compensation policies to remove gender bias.
  • Removing managerial discretion on pay and sticking to a salary band of positions for new hires and for annual increases.
  • Removing prior salary history from applications and interviews.
  • Establishing fair scheduling practices to allow for caregiving.

For even more ways to contribute to awareness and celebrate Equal Pay Day you can visit equalpaytoday.org.

Thank you to Paula Alexander, MA, PHR, SHRM-CP, for contributing to this HR Question of the Week!

Performing an equal pay audit can be a complex, but necessary, step toward equal pay for all. Clark Schaefer Strategic HR is ready to assist you with any of your needs around Benefits and Compensation. We offer assistance with everything from job descriptions to policy development to help address your complex issues that impact employee compensation or benefits. Please visit our Benefits and Compensation page for more information on how we can assist you.

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How To Set Up An Employee Bonus Plan

IMAGE of a pile of money to represent setting up an employee bonus plan.

HR Question:

I am having trouble motivating my employees to do more than just the fundamental functions of their job. Could an employee bonus plan help? And if so, how do I set this up?

HR Answer:

Yes! While some people are driven solely by their own internal motivation, many behaviors and accomplishments are encouraged and strengthened by external rewards, prizes, or incentives. Think about your own behavior. Do you eat healthy all week and reward yourself with a sweet treat on the weekend for a job well done? Or is there a meaningful work project that would suddenly become more tempting to tackle if there was a reward for knocking it out of the park?

“Behavior that is motivated by a desire for reinforcement or incentives” is known as the Incentive Theory of Motivation. From this, we learn that providing the right external rewards can drive human behavior. In a work setting, incentives can help to set your employees’ course of action and encourage them to perform projects or tasks that might be above and beyond their daily work responsibilities, stretch and grow them in areas that will further benefit the company, and drive advancement and change in your organization.

While there are a variety of ways to incentivize employees, one of the easiest and most impactful ways is a financial incentive or bonus. Not all individuals are motivated by money, and you have to know your employees well to know if and how much money will actually be motivating, so it might prove to be beneficial to conduct an employee survey to understand your employees’ motivators.

There are many creative ways to structure bonuses to incentivize the behavior you want to see. The Economic Research Institute provides a description of the most common types of bonuses used by employers in their article, “How to Calculate Employee Bonuses.” We are going to focus the remainder of this article on the performance bonus.

How to establish a performance bonus plan

To implement a performance employee bonus plan in your organization, we recommend the following steps:

  1. Work with your company leadership team and chief financial officer to establish a budgeted amount of money that will be available at the time bonuses will be paid out.
  2. Determine who is eligible to participate in the bonus program. Remember that if you include non-exempt employees, the bonus amount will have to be added to the base hourly rate in the calculation of overtime for that time period.
  3. Define the time period that the bonus will cover and how often it will be paid out (i.e., monthly, quarterly, semi-annually, or annually).
  4. Establish maximum bonus amounts for participants – will it be a percentage of their salary or a fixed amount? Will this vary based on the pay grade their job is assigned?
  5. Prepare a policy with all of this information and communicate the program to eligible employees.

Setting goals for bonus payout

Once you have established the structure of your bonus program, the next step is the MOST IMPORTANT one in the process – setting goals. Work with your employees to set stretch goals that will motivate them to perform their essential functions better, improve processes, learn a new skill, or complete specific projects. These goals should align with both the organization’s annual goals and the department’s goals for the year.

As you align your bonus plan payout with your company, departmental, and individual goals, you may want to allocate percentages of the bonus to each of these areas. By tying the bonus payout to multiple relevant factors, you can set minimum expectations for the financial and performance metrics that need to be met for a full payout. This also provides flexibility to offer a partial payout if certain measures are partially met.

For example, you could structure your employee bonus plan like this:

1. Company Goal – A financial goal the company must meet/exceed – 25% of the eligible bonus amount
2. Departmental Goal – A goal the department must meet/exceed measuring quality, performance, customer service, financials, safety, etc. – 25% of the eligible bonus amount
3. Individual Goals – Two individual goals measuring projects, training/development, performance, safety, productivity, attendance, etc. – 50% of the eligible bonus amount

Once the goals are set, your next critical priority is to follow up on these goals. Whether you are setting a bonus goal for the year or for the month, meet with your employees at regular intervals and discuss their progress on their goals. Assure that the goals are attainable and that they continue to make sense as time moves forward. Company leaders should also provide updates on company and departmental goals so employees have a sense of organizational progress and success.

Finally, at the end of the bonus period, meet with your employees to assess their progress in reaching/exceeding the goals. Reward those goals completed at 100% and lessen the reward if the goals were not fully met. Be sure to assess the effectiveness of your bonus plan at the end of the year and tweak it accordingly before rolling it out again next year.

Thank you to Lorrie Diaz, MS, Sr. HR Business Advisor, for contributing to this HR Question of the Week.

Clark Schaefer Strategic HR have the answers to all of your tough Benefits and Compensation related questions. Whether you need an analysis of your current benefit offerings or are looking to create a cost-effective recognition and rewards program, Strategic HR can do the job. Please visit our Benefits & Compensation page for more information or Contact Us.

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How To Follow ACA Reporting Requirements & Avoid Penalties

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Could Sabbaticals Be Your Next Retention Tool?

HR Question:

In today’s fast-paced and high-pressure market, it’s difficult to truly disconnect from work. We’ve been trying to find ways to give our team a break to avoid burnout, but sometimes a week of vacation just isn’t enough. Could sabbaticals be the newest tool in our retention toolbox?

HR Answer:

You’re not alone in considering sabbaticals as they seem to be gaining in popularity. According to a recent World at Work survey assessing US organizations ranging in size and industry, 10% of organizations offered paid sabbaticals (up from 7% in 2019), and 29% offered unpaid sabbaticals (up from 16% in 2019). Now, as we’re well into a period with many different names – the Great Reshuffle, the Great Resignation, the Great Re-Evaluation to name a few – sabbaticals may be the unsung hero that benefits both employers and employees alike when it comes to talent retention, supporting good mental health, and strengthening employee engagement and dedication to their work and your organization.

Time to Re-Charge, Re-Energize, and Reconnect

It’s no secret that the first beneficiary of a sabbatical is the employee. Unfortunately, those who do choose to take sabbaticals may often lack the opportunity to properly enjoy them. In fact, The Sabbatical Project reports that nearly two-thirds of those who do take a sabbatical are often forced into them due to traumatic circumstances out of their control – the loss of a family member, health issues, the need to navigate complex or dissolving relationships, etc. Not exactly the most relaxing setting for a rejuvenating and relaxing period of time.

Although a sabbatical can be used to address such issues, it could benefit organizations to promote them for a broader purpose. Employees should be encouraged to consider using a sabbatical as an opportunity to truly disconnect, re-energize, and re-focus if suffering from burnout or fatigue. They can also be used to discover new passions, chase hobbies, and gain the experiences that many may put off until after retirement.

Sabbaticals Benefit the Employer Too

And while a sabbatical, paid or unpaid, can seem like an intimidating amount of time away from the desk for both the employee and the employer, the benefit of a re-energized and re-engaged employee can pay back dividends. Interviews for a Charter and TIME article revealed employees who returned from a sabbatical found themselves more creative, felt greater feelings of loyalty and energy, and brought new ideas to the table.

When considering the cost of having to replace a long-term employee, along with their organizational knowledge, skills, and work relationships built over time, offering a sabbatical as an opportunity to renew and recharge may be far more cost-effective. In addition, offering sabbaticals as part of your benefits package is not only attractive to retain current employees, but can also be a valuable talent acquisition tool to attract new talent.

Your Team Will Benefit From Your Time Away

The longer nature of sabbaticals creates an opportunity for cross-training. As opposed to managing through vacations where you can push a project or a question off “just a few days” until a person returns, sabbaticals present a fantastic opportunity to engage other team members in new and different tasks, departments, and levels of the organization – providing the employer with a built-in opportunity for the career development and growth that ranks high on job seekers’ lists today.

Sabbaticals Don’t Come Without a Cost

It would be a win-win if sabbaticals came without a cost to the employer or employee, but unfortunately, that’s not the case. That’s why it’s important that employers establish their promises and expectations for sabbaticals. How often and for how long can employees be away? Do they need to serve a certain number of years to qualify? How much of their regular pay will they still receive, if any? How does a sabbatical tie into their PTO or other time off categories?

While the cost may not be a surprise, the money saved by creating an attractive workplace, providing necessary mental health benefits, and showing that you’re an organization committed to putting employees’ needs first may very well pay dividends in attracting and retaining valuable talent.

Special thanks to Sammie Kelly for contributing to this HR Question of the Week! 

Providing adequate Benefits and Compensation for your employees is key to the recruitment and retention of a well-performing workforce, and having the right policies in place can make or break a company. Clark Schaefer Strategic HR can help you structure your benefit and compensation system to meet today’s competitive market. Please visit our Benefits and Compensation page for more information today.

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Succession Planning: How Can We Prepare for Exits of Key Employees?

a drawing of people running up an arrow and the text "succession planning" written above

HR Question:

In light of The Great Resignation, I’ve been hearing more and more about the importance of succession planning should any of our key employees or leaders resign. How can our organization make sure we’re appropriately prepared for succession planning so we are well-positioned if we should lose any key players?

HR Answer:

The exit of a key employee can certainly result in turbulence within a business. Lack of preparation in filling such an important role can fuel skepticism about the future of the company among both internal employees and external stakeholders. Organizations can help temper such concerns and instability through succession planning.

Benefits of Succession Planning

Thoughtful succession planning leads to numerous benefits. Organizations that hire their leaders internally may benefit from a better quality of hire than those who look externally. According to a study at the University of Pennsylvania, although internal hires are typically paid less than external hires, they tend to perform better and have lower turnover rates. The success of internal hires may be in part attributed to a deep understanding of the business and culture, along with cultivated relationships amongst the organization, its partners, and customers.

Succession planning also serves to foster goodwill among current employees who see the organization’s faith and investment in its internal talent. Especially considering the challenges in today’s talent market, succession planning may help to increase employee loyalty and tenure within an organization.

To begin succession planning, it is important to consider the strategic direction of the organization. You may pose the questions: what roles will we need to support the future goals of our organization? What kind of growth is expected in the next 1-5 years? Determining the trajectory of the organization will better inform the roles on which to focus your succession planning efforts. Executive leadership and directors constitute critical roles that typically merit inclusion in the process. However, organizations should also include key individual contributors who possess highly specialized skills or knowledge in their succession planning efforts.

Conducting a workforce assessment

Once critical roles are identified, it is important to conduct a workforce assessment to consider factors that may affect the stability of these key roles, such as incumbent retirement eligibility. During this portion of the process, it is also essential to identify members of the internal talent pool who may be able to fill these critical roles, with the right development opportunities. You should consider the current performance of these employees, as well as their future potential. Finally, when evaluating your internal talent pool, you will want to ensure that your pipeline of emerging leaders is diverse and can bring distinct perspectives to these key roles.

Identify gaps in knowledge and skills

Next, you will want to identify any gaps between the knowledge and skills possessed by the incumbents of critical roles and those in the talent pipeline to succeed them. Once these gaps are determined, leaders can begin creating career development plans in partnership with high-potential employees. Such career development plans may include shadowing a key employee, engaging in a mentorship program, or participating in a stretch assignment for exposure to new business functions, geographies, and customers. A career development plan may also include courses or seminars to help hone essential technical or soft skills. Finally, as part of their development process, high-potential employees could be invited to participate in board meetings for additional exposure to strategic planning initiatives.

It is important to note that succession planning is not a one-time initiative, but rather constitutes an ongoing process by which the internal talent pipeline is continually identified and developed. Organizations that implement thoughtful and strategic succession planning will benefit not only from increased stability during the exit of a key employee, but also from enhanced loyalty of employees who see the organization’s investment in its internal talent.

Thank you to Christine McLaughlin, HR Business Advisor, for contributing to this HR Question of the Week.

Whatever HR challenge your business may be facing, Clark Schaefer Strategic HR can help! Whether it’s by developing a robust internal succession planning process, creating or improving your performance management system, or developing a comprehensive strategic business plan through our HR Strategy services, our team of experienced consultants is waiting to partner with you. Contact us to talk through your HR Strategy needs.

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Are You Ready For These Top HR Trends in 2024?

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As we transition into a new year, the world of Human Resources is poised to undergo several transformative trends that reflect the evolving landscape of work. Some transformations are already at work, such as the continued integration of technology in HR processes, with the adoption of artificial intelligence (AI), data analytics, and automation tools. These technologies are not only streamlining administrative tasks but also enhancing decision-making processes, enabling HR professionals to focus on more strategic and value-added activities.

Additionally, an emphasis on employee well-being is gaining momentum, with organizations recognizing the importance of creating a positive work environment that promotes mental health, work-life balance, and overall job satisfaction. Our team anticipates that remote and hybrid work arrangements will persist, prompting HR departments to refine policies and practices to accommodate diverse and flexible work setups that continue to support a diverse workforce with varying needs.

And finally, we expect diversity, equity, inclusion, and belonging initiatives will also remain at the forefront of the HR landscape, as companies strive to create more inclusive and equitable workplaces. DE&I efforts go hand in hand with employee well-being and employee satisfaction. As employers work to foster diverse and inclusive workplaces, they are also challenged to be highly transparent in their communications and actions and to build a high level of trust, which leads to employee satisfaction and retention.

So how do we expect to see these HR trends play out in the coming year?

Generative AI & Upskilling

In a June 2023 survey by Gartner, 81% of HR leaders have already begun to explore and implement AI solutions within their organizations, with 52% exploring potential use cases and opportunities for generative AI. Indeed, the Future of Jobs Report 2023 indicates that by 2027, 43% of work tasks will be automated.

The Future of Jobs Report also emphasizes the growing focus on cognitive skills within the workforce – skills like creative and analytical thinking, technology, literacy, and socio-emotional attributes such as curiosity, resilience, and lifelong learning.

Upskilling in the field of human resources is expected to become increasingly important in the coming years and will play out in a variety of ways:

1. Technology Integration

The HR field is becoming more technology-driven with the adoption of complex HRIS (Human Resource Information Systems), AI-driven tools, and data analytics. HR professionals will need to quickly upskill to effectively utilize these technologies and leverage artificial intelligence for HR tasks such as recruitment, employee engagement, and talent management and development.

As HR professionals explore ways to weave AI into their daily operations, it’s also important to understand the ethical and legal concerns of AI adoption.

2. Data-Driven Decision-Making

HR professionals are increasingly relying on data to make informed decisions in areas such as workforce analytics, recruiting, employee performance, and strategic planning – even more so with the rise of AI. Consider providing data analytics training opportunities to help employees successfully engage and understand the results these technologies can provide.

3. Soft Skills and Emotional Intelligence

With the rise of remote work and digital collaboration, the importance of soft skills and emotional intelligence will continue to be sought after. HR professionals need to be adept at interpersonal communication, empathy, and understanding diverse perspectives – especially when so much interpersonal context is lost from behind a screen. Upskilling in these areas will be vital for effective employee relations, conflict resolution, and fostering a positive workplace culture.

4. Continuous Learning Culture

HR professionals should model and promote a culture of continuous learning within organizations. Reevaluating learning and development strategies, assessing training methodologies, and implementing ideal learning technologies will be essential to support the professional as well as personal growth of employees.

In summary, learning to utilize AI in beneficial ways, as well as upskilling across organizations, will create a mix of technical, interpersonal, and leadership skills that help employees adapt to the evolving workplace landscape and allow HR leaders to contribute to the success of organizations in highly valued ways.

Employee Well-Being

Companies are increasingly recognizing the importance of employee well-being. The employee well-being umbrella includes mental health support, work-life balance and remote work initiatives, and wellness programs, in addition to providing meaningful work and opportunities for learning and development. The expectations of employers are growing by the minute!

The top 5 ways employers can support employee well-being in the upcoming year include a combination of physical, mental, and professional support:

1. Flexible Work Arrangements

Offer flexible work hours and remote work options to accommodate diverse employee needs. A flexible work environment allows employees to better balance their professional and personal lives, reducing stress and enhancing overall well-being. To learn more, check out Gallup’s article, “The Future of the Office Has Arrived: It’s Hybrid,” as well as Techopedia’s Remote Work Predictions for 2024.

2. Mental Health Programs and Resources

Prioritize mental health by providing access to counseling services, mental health workshops, and Employee Assistance Programs (EAPs). Promote a culture of openness and destigmatize mental health issues to encourage employees to seek help when needed.

3. Professional Development Opportunities

Invest in employees’ professional growth by offering training programs, workshops, and opportunities for skill development. Providing clear pathways for career advancement and continuous learning not only enhances employees’ job satisfaction but also contributes to their overall well-being.

4. Health and Wellness Initiatives

Implement comprehensive health and wellness programs that address physical well-being. This can include fitness classes, wellness challenges, health screenings, and initiatives that promote a healthy lifestyle. Consider providing wellness benefits such as gym memberships or wellness reimbursements.

5. Regular Check-ins and Feedback

Conduct regular one-on-one check-ins between managers and employees to discuss workloads, career goals, and any challenges they may be facing. Foster open communication and create a supportive environment where employees feel comfortable sharing their concerns.

Check-ins allow for the opportunity to course-correct, as needed, and to ensure that employees have the resources they need to do their jobs successfully. In addition, providing constructive feedback and recognition for accomplishments contribute to a positive work experience.

These strategies collectively address various aspects of employee well-being, creating a holistic approach that considers both personal and professional needs. Employers need to tailor these initiatives based on their workforce’s specific characteristics and preferences, promoting a culture that values and prioritizes the well-being of employees.

Diversity, Equity, Inclusion, and Belonging

Diversity, Equity, Inclusion, and Belonging (DEI&B) initiatives are more than passing HR trends, but rather, essential for creating a workplace that is welcoming, inclusive, and representative of all individuals. In 2024, employers can take several actions to support and enhance their DEI&B efforts:

1. Establish Clear DEI&B Goals and Metrics

Clearly define and communicate DEI&B goals that align with the organization’s values and mission. We recommend using a DEI&B roadmap as you build your diversity initiatives. Establish measurable metrics to track progress and hold the company accountable for achieving diversity, equity, and inclusion objectives. Regularly assess and report on these metrics to demonstrate transparency and commitment.

2. Cultivate an Inclusive Workplace Culture

Foster a culture of inclusivity where all employees feel valued, respected, and heard. Encourage open communication, apply inclusive decision-making principles, and create platforms for employees to share their experiences and perspectives. Implement training programs to raise awareness about unconscious bias, microaggressions, and other barriers to inclusivity.

3. Diverse Hiring Practices

Implement inclusive hiring practices to attract a diverse talent pool. This includes using diverse interview panels, removing bias from job descriptions, and actively seeking candidates from underrepresented groups. Consider partnerships with organizations focused on diversity recruitment and outreach to expand your talent network.

4. Professional Development and Mentorship Programs

Provide opportunities for professional development and mentorship, particularly for employees from underrepresented groups. Establish mentorship programs that connect employees with mentors who can guide and support their career growth. Ensure that these programs are accessible and inclusive.

5. Employee Resource Groups (ERGs)

Establish or enhance Employee Resource Groups that cater to specific communities within the organization. These groups provide a platform for employees to connect, share experiences, and contribute to the development of a more inclusive workplace. Support and actively engage with ERGs to ensure their success and impact.

6. Equitable Policies and Practices

Regularly review and update policies and practices to ensure they are equitable and unbiased. This includes performance evaluation processes, promotions, and compensation structures. Strive to eliminate systemic barriers that may disproportionately affect certain groups within the organization.

DEI&B initiatives require ongoing commitment and effort. Employers should listen to the needs and concerns of their employees, continuously educate themselves and their teams, and adapt their strategies based on feedback and evolving best practices. By taking a comprehensive and proactive approach, employers can contribute to building an inclusive workplace that reflects the diversity of the global workforce.

For ideas to enhance your DEI&B programs, the Society for Human Resource Management (SHRM) offers “4 Ways to Promote Authentic DE&I Practices.

As we stand on the brink of a new year, the field of Human Resources is on the cusp of significant transformations, mirroring the dynamic nature of the modern workplace. Employers play a pivotal role in steering organizations toward a progressive and thriving future. Recognizing our employees as the cornerstone of success, we can aspire to cultivate environments that prioritize well-being, embrace diversity and inclusion, a new digital world, and adapt to the evolving needs of our workforce.

As we navigate these HR trends and challenges, let us collectively champion a workplace culture that not only reflects the spirit of the times but fosters growth, innovation, and lasting success for individuals and organizations alike.

Thank you to Collen Mahoney, PHR, and Cassie Whitehouse, M.Ed., Senior HR Business Advisors, for contributing to this HR Question of the Week!

Need help tackling your HR Strategy for 2024? Let our team of HR experts assist in building your plans for the new year. Please visit our HR Strategy page to learn more, or simply contact us – we’d love to hear from you.

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How To Limit Liability At Your Company Party

HR Question:

We’re looking forward to hosting our company holiday party to celebrate our accomplishments this year. While we want this to be a fun celebration, we also want it to be responsible. How can we limit liability at the company party, especially if we’re considering serving alcohol?

HR Answer:

The holidays are here, and to many, that means it is time for holiday parties. While holiday events are a great time to bring your team together and increase engagement, there are potential risks to keep in mind as an employer. As you plan your event, below is a list of best practices to consider that may help to limit potential liability:

  • If it is truly a social event for your team, do not require attendance. Remind staff that attendance is not required but voluntary. This may help to limit liability with a potential harassment claim because the event is voluntary and not in the course and scope of employment.
  • To further support the non-work nature of the event, hold the event off-site and outside of regular business hours. Many organizations also allow employees to bring a guest thereby underscoring the non-work component.
  • Set expectations around respectful behavior and encourage employees to drink responsibly. Remind employees that company policies, including harassment and other conduct policies, apply at the event.
  • Determine if alcohol will be offered. Company leaders will need to determine if the company holiday party is the right environment for alcohol. There are multiple factors to consider, including the age range of your workforce, how the timing of the party fits with employees’ work schedules, past history, and the location of the party. If you have employees under the age of 21, your company will need to assess how you will handle this potential liability. If you have employees attending the party before their shift, that is another issue you will need to address.

How to handle alcoholic beverages at the party

If you decide to provide alcoholic beverages, there are a number of considerations you can make that may help limit potential liability at your company party. Here are some good practices to consider:

  • Provide food and non-alcoholic beverages at the event, both for safety reasons and so those who choose not to drink alcohol know you’ve considered them and feel included.
  • Offer a cash bar where employees purchase alcohol. This can reduce the likelihood of a claim that the employer provided alcohol directly to employees. It is also likely to reduce consumption.
  • Provide employees with a set number of drink tickets so that each attendee is limited in the number of alcoholic drinks they will be served.
  • Plan for how employees who have been drinking will get home. This may involve providing taxis or public transit options at no cost to the employees, arranging for group transportation, or encouraging employees to designate a driver at the beginning of the event.
  • Even if you don’t plan to provide a taxi service, don’t think twice about calling and paying for one if an intoxicated employee has no way home other than driving themselves. To facilitate this, someone from management can be designated to stay until the end and maintain their own sobriety to ensure that everyone gets home safely.
  • Have a plan to ensure that no minors or visibly intoxicated attendees are served alcohol. If possible, hire professional servers (or hold the event at a staffed facility) who will, as part of their job, politely refuse to serve anyone whom they perceive has had enough to drink.

How to handle cannabis at the event

Consider the potential use of cannabis at the party. With the legalization of cannabis in many states, employers also need to be prepared to deal with this new potential concern at holiday events. Employees may believe it is appropriate to bring this state-legal drug (in some instances) to the party, but, marijuana remains illegal under federal law.

It may be appropriate to remind staff of your drug-free workplace policy (if applicable) which prohibits consumption in the workplace and at company-sponsored events. If you wish to avoid consumption at your party, clearly communicate the policy to employees before the event. The Society for Human Resource Management (SHRM) offers these additional suggestions regarding cannabis at holiday parties.

While these steps will not eliminate all the risks, they may help to reduce liability and help your employees celebrate the year and their achievements safely and responsibly. For more suggestions on how to limit liability at your company party, SHRM provides these tips to reduce liability while celebrating the season.

Thank you to Patti Dunham, MBA, MA, SPHR, SHRM-SCP, Director of HR Solutions, and our HR Support Center for contributing to this HR Question of the Week.

It’s important to celebrate company success, but don’t throw caution to the wind in the process. Our Strategic HR Business Advisors are prepared to help you celebrate and protect your business and your employees. We can help you to reduce your potential liability by fielding your questions and offering resources to help you identify and mitigate compliance issues. Visit our HR Compliance and Recordkeeping page to learn more about how we can help or contact us for immediate support. 

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Three Ways to Make Holidays More Inclusive

The office holiday party is a time-honored tradition: readers of Charles Dickens’ A Christmas Carol may remember the Christmas party hosted by Ebenezer Scrooge’s old boss, Nigel Fezziwig. While the look and feel of these end-of-year holiday parties have changed since the 1840s, they remain a popular part of the American office culture.

While it’s less common today for companies to host “Christmas parties,” office festivities continue to bear the trappings of that holiday. Christmas trees, wreaths, gifts, and Santa Claus still make appearances in workplace decorations and celebrations.

Is this an issue? It depends. While some people view these symbols as more secular than religious, not everyone sees them that way. Moreover, not every person who follows a particular religion wants to see images and practices associated with their religion brought into the workplace. On the other hand, many employees welcome holiday celebrations at work that honor their own religion and those of their coworkers.

Given diverse religious views and declining rates of religiosity in the United States, employers who would like to be inclusive around the holidays may need to do more than name the year-end holiday party something neutral. Here are three steps to put you on the path toward making the holidays more inclusive.

1. Ask Your Employees What They Want

First and foremost, survey your employees to find out which holidays they would like to see observed and their thoughts on what observance in the workplace should look like. Observing a holiday doesn’t necessarily mean you’ll close up shop for the day, and you may want to make this clear to employees when asking for their preferences. When considering their suggestions, make sure you’re treating everyone equitably. Ending up with decorations related to some holidays but not others may be fine if that reflects everyone’s wishes, whereas allowing people of one religion but not another to take paid time off to attend a worship service could lead to claims of discrimination.

2. Celebrate Occasions Throughout the Year

Once you’ve found out how your employees want to observe and celebrate holidays, mark the company calendar. You might, for example, encourage employees to share how and why they observe certain holidays with colleagues on a general Slack channel or through a company newsletter. Allowing for time and space to talk about religious practices—both celebratory and somber—helps employees understand why a coworker may be fasting, lighting candles, praying during the workday, wearing special attire, or taking time away from work. Observing multiple holidays throughout the year also makes it less likely that an end-of-year party will feel exclusionary.

3. Keep Year-End Company Celebrations Separate from Holiday Observances

Even with ongoing observances, many of your employees may expect some sort of celebration in December. You can avoid people feeling excluded by focusing your celebration on the accomplishments of your employees and the company during the past year, rather than making it about the holidays.

Inclusion doesn’t take a break at the holidays. On the contrary, the holidays, whatever time of year, present a great opportunity to recognize, celebrate, have fun, and help make employees feel that they belong.

Special thanks to the Virtual HR Support Center for contributing to this Emerging Issues in HR. 

Looking for another way to make the holidays more inclusive? Give Flex Holidays a try!

At Clark Schaefer Hackett (Strategic HR’s parent company), employees are offered three “flex holidays” a year in lieu of holidays such as Christmas Eve. By providing these days to be used at the employee’s discretion, the organization is able to meet a diverse range of needs and schedules rather than prioritizing one holiday over another.

Creating a way for team members to celebrate the annual events important to them is just one way of building a strong Employee Relations function and recognizing your team’s diversity. Visit our DEIB Consulting Services page to learn how we can assist you with ideas for improving your DEI&B efforts and nurturing a positive organizational culture.

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Why Is It Important To Get An Employee’s Signature?

Image of an employee's signature being added to a document.

Have you ever had an employee question an employment agreement or say they didn’t mean to agree to a term of their employment? Why is it so important to get an employee’s signature?

This is a critical question for all employers, and the answer applies to more than just employment agreements! At its root, a signature is used to show the intent of an individual to bind oneself to a contract or make a written representation.

Why is an Employee’s Signature Important?

In the case of a new hire’s employment agreement, the signature here binds both the employee-to-be and the company to the agreed-upon terms such as salary, benefits, schedule, etc. – all items you don’t want to have to argue over after the employee has already started.

There are other instances where having an employee’s signature can help to protect your organization beyond the employment agreement. For example, when memorializing a performance conversation, it may be important to have an employee make a written representation of the fact that they were there, they understand the conversation, and they’ve agreed to any future action discussed during the meeting.

Obtaining an employee’s signature on documents such as these not only helps to clarify expectations, but it can also be an important part of your organization’s risk mitigation.

Employee Signature Best Practices

These signed documents are used should the agreement, the conversation, or actions be called into question, whether that’s internally or in a court of law. To eliminate additional confusion, there are best practices when gathering employee signatures.

A signature in ink is recognized as the standard for executing documents. However, should in-person not be an option (as many organizations have experienced a significant increase in remote workers), other legally recognized methods of signing are effective. These may include a scanned PDF of a signed document with an original signature or obtaining an electronic signature using software that is legally recognized, such as DocuSign, Adobe, certain payroll services, etc.

All in all, it goes back to showing intent to sign should anyone ever question that an agreement was created.

What Doesn’t Count as a Signature?

What you want to avoid is a question of fraud or whether an individual intended to enter into the agreement. Just typing a name using script font instead of using an original signature is typically not sufficient because it is easier to claim that it was created by someone other than the named party.

Additionally, simply cutting and pasting a picture of a person’s original signature into a document, as is sometimes done on letters, isn’t recommended because it can be more easily used to create counterfeited documents (or alleged to be counterfeit by a party not wanting to be bound by the agreement). Having said that, it is slightly better than typing in script font.

In the end, it is important to protect both parties – the employee and the company – with original or well-documented signatures in the case of disagreements or audits. By taking a little bit of additional time upfront to ensure that you’ve gathered an employee’s signature correctly, you can prevent a significant amount of wasted time and money later down the path.

Special thank you to Emily Smith, JD, General Counsel for Clark Schaefer Hackett, and Sammie Kelly for contributing to this Emerging Issues in HR.

Although maintaining proper recordkeeping practices may not be everyone’s forte, it is a critical piece to help protect both your organization and your employees. But don’t worry, Clark Schaefer Strategic HR are here to help! We can conduct an HR Audit to review your HR policies, procedures, documentation, and systems to identify any areas for improvement or enhancement in your HR function. To learn more, visit our HR Audit page or Request an HR Audit Quote.

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Can I give feedback on a candidate’s or employee’s clothing?

How To Determine If A Home Office Injury Is Covered By Workers’ Compensation

Image of a man with a broken leg working from a home office

HR Question:

Our company has agreed to allow employees to work a hybrid schedule, allowing them to work from home on multiple days during the week. Although this has been very well received by employees, we have seen an increase in the number of injuries from employees working from home. How do I know if a home office injury is covered by workers’ compensation, and how do I handle these claims?

HR Answer:

The Bureau of Labor Statistics announced that in 2020, private industry employers reported 2.7 million nonfatal workplace injuries and illnesses. Although down from 2.8 million in 2019, workplace injuries are still an expensive and difficult issue for employers, and with the increase in the number of employees telecommuting and working from home or alternate locations, this task has some additional unique challenges.

What is a compensable injury under workers’ compensation?

In many instances, it is easy to determine if an injury is covered by workers’ compensation. The key words in determining coverage under workers’ compensation are: “arising out of (what they were doing) and in the course of (where were they – time, place, etc.) employment.” Cutting your finger opening a box at work is an easy example of a covered injury. Injuries from a home office are not always as easy to determine coverage. Overall, injuries and illnesses that occur while an employee is working at home are considered work-related (and thus compensable) if the illness or injury occurs while the employee is performing work for pay in the home or alternate workspace and the injury or illness is directly related to the performance of work. If the employee is completing a work task and they can prove they were working in the interest of their employer when they got hurt or injured, it is typically a covered event.

One important note is that employers must also consider the “personal comfort doctrine.” This legal term states that certain personal activities for the employee’s comfort (bathroom breaks, eating/drinking) are deemed necessary and are considered part of an employee’s work activity. According to the personal comfort doctrine, tripping over the dog and breaking your leg while walking to the bathroom at home during work hours could be covered under workers’ compensation. This doctrine, along with the overall lack of witnesses and the inability to control the work environment, can lead to frustration regarding workers’ compensation claims outside of the traditional workplace.

For additional support, OSHA provides instruction on compliance and guidance on interpreting the work-relatedness of injuries resulting from telecommuting.

What can employers do to protect your organization and your employees?

We recommend taking the following steps to establish expectations for safe remote work environments, as well as what to do if you receive an injury claim from a remote worker:

  1. Create a work-from-home policy that includes the requirement to maintain a professional, well-kept, and safe work environment. Include home safety audits.
  2. Require employees to report any work-related injuries or illness immediately to their manager or safety official.
  3. If an injury occurs, obtain a report of the accident and be sure to include a written statement from the employee. The report should include exactly what the person was doing at the time of the injury. How, when, and where the injury occurred should be detailed in the report. Cumulative injuries and slips, trips, and falls are the most commonly reported home injuries, therefore, getting these details is important.
  4. Ask the employee to take pictures of the work area where the injury occurred as well as of their injury, if possible.
  5. Provide all of the pertinent information to your workers’ compensation carrier or administrator, and let them make the assessment as to work-relatedness. Include legal counsel if necessary.

Overall, treat all workplace injuries the same, regardless of where they occurred. Claims must be actively managed from the time they are reported. Employee safety and health should be a priority for all employers, regardless of an employee’s work location. Actively managing these claims is one step in assuring their well-being and the well-being of the company.

Thank you to Patti Dunham, MBA, MA, SPHR, SHRM-SCP, Director of HR Solutions for contributing to this HR Question of the Week.

Strategic HR understands your concerns with the well-being of your employees as well as your organization. We offer expertise in health, safety, and security to cover any need you may have ranging from creating workplace safety policies to developing a business resumption plan for handling unexpected emergencies. Please visit our Health, Safety & Security page for more information.

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How Can I Stop Candidates From Ghosting After Accepting an Offer?

Image of a Hiring Manager looking confused and frustrated because a candidate ghosted him.

HR Question:

It’s a tough market right now! It feels like every time we find the right candidate and extend an offer, candidates will accept the offer but then ghost or decline before their first day. What can I do differently to ensure my candidates stop ghosting after accepting an offer?

HR Answer:

So, your offer was accepted and a start date for your new hire has been established – congratulations! Unfortunately, the phenomenon of candidates ghosting or changing their minds before a start date has become even more frequent in today’s market. Despite accepting an offer of employment, candidates are still entertaining counteroffers and continue to interview even though they may have signed an offer letter and completed a background check and drug screen. “Yes” no longer means “accepted” until a new hire shows up on the first day.

In recent years, Indeed found that 65% of employers surveyed said that they had candidates accept an offer and fail to show up for their first day – proving that a signed offer letter is certainly not the definitive and final stage of recruitment. So how are hiring managers and recruiters supposed to reduce the chance of a candidate ghosting after accepting an offer?

Prepare to Spend the Time (and Money)

With the current labor shortage, employers are competing for many of the same candidates. Since we are faced with a candidate-driven market, employers have to think about how to engage with new hires (pre-start date) differently.

What does that mean? Most likely – more time and more money. But before you click away from this article, consider this: a recent benchmarking analysis from the Society for Human Resources Management (SHRM) found that the average cost of a hire is $4,700, but when factoring in time, the impact to productivity, the emotional toll on the team, and the cost of competition, the true cost of hiring could be up to three or four times the employee’s salary.

By investing in building and nourishing the candidate’s experience with the company, recruiters increase the chances of acceptance of the offer, reduce the time and money costs to the team, and create a hard stop on the job search front. Small up-front costs, like a welcome basket with company swag sent to the new hire’s home prior to the start date or taking them out to lunch or dinner to meet the team ahead of time, can be a welcoming touch to encourage staying on board.

Welcome Them to the Team

Nobody wants to join a team where they’re not wanted. Make it abundantly clear to your new team member that not only are they welcomed, but they’re also an exciting addition to the team! Some ways to do this are sending emails or notes from team members ahead of time welcoming them and sharing tips for success as a new hire. Or maybe, it could look like asking the team member to share details about themselves so that current employees can find common interests to share with the new hire, making them feel like they’ve got a built-in network with easy topics to talk about from the beginning.

Don’t Be Afraid to Overcommunicate

While your initial response may be to hold back in order to not scare the candidate, the more you can communicate, the better and calmer they’ll feel. Consider sending the itinerary for the new hire’s first day in advance so they know who they’ll be meeting and how the day will flow. Company newsletters or videos of top management media or milestones may help them feel clued in and in the loop. Encourage them to settle into the company and the industry by inviting them to participate in networking events or company gatherings prior to starting so they feel like they have a leg up.

Adopting an engaging strategy to prevent new hires from ghosting after accepting an offer is critical. Regular communication with a candidate during their transition period (typically, as they give their 2-to-3-week notice) will help them feel they’ve made a great decision.

At the end of the day, it is the candidate’s decision. But employers can make the decision to stay an easy one by building an attractive and encouraging engagement process from acceptance to the first day. From there, it’s on to onboarding!

Special thanks to Tracy Walker and Sammie Kelly for contributing to this edition of our HR Question of the Week! 

Clark Schaefer Strategic HR provide a variety of resources to help you find the help you need. We offer outsourced recruiting or contract assistance. We can create a plan that’s custom fit for your specific recruitment needs. Please visit our Recruitment page for more information.

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What is HR’s Role in the Mergers & Acquisitions Process?

Image of people working around a table with the sign "M&A" on it.

Mergers & Acquisitions (M&A) are a complicated process affecting every facet of an organization – most importantly, its people. Because employees are the key to ensuring the success of any organization, it is critical to develop a thoughtful and strategic human resources-focused approach in the M&A process. This requires HR leaders to be involved from the beginning – as Forbes reminded us of several notable failed M&A attempts when employees were not factored into the process from the start. Through early and ongoing inclusion in the M&A evaluation, planning, and integration process, human resources can play an important role in strategic planning, change management, effective internal communication, and cultivating/transitioning culture.

HR’s Role in the Five Phases of M&A

We have found that most mergers and acquisitions include the following five phases, and we have identified how HR professionals can and should play a role in each phase to result in a successful merger.

Phase 1: M&A Evaluation

The first step in the M&A process is for the interested parties to start discussing the possible merger or acquisition. The name of the game here is discretion. Due to the sensitive nature of M&As and the data that will be shared, both parties will need to sign non-disclosure agreements (NDAs) to ensure that no information is leaked before the appropriate time.

These preliminary talks are often highly secretive because they may/may not lead to a merger, so there is no need to cause alarm. Although the level of confidentiality that’s needed can vary, its importance is heightened if either party is publicly traded. It’s critical for HR to be involved early to understand the HR landscape at a high level, including information such as the number of employees and managers, locations, whether or not a union will be involved, etc.

Phase 2: Third Party Engagement

Third parties help both the buyer and seller navigate the process. These third parties are usually lawyers, accountants, investment bankers, financial planners, business coaches, or M&A advisors. These individuals will be involved in the development of the structure and content of the legal agreement.

A merger or acquisition can happen quickly or take months. Although the timing varies, it is not too early for HR to start looking into what management changes need to take place when this deal closes, potential cultural problems, redundancy issues, and what key employees need to be retained. Having thought through these issues early in the process will improve the outcome.

Phase 3: Prep Time and Due Diligence

In this preparatory phase, HR should become even more involved. Initially, as an HR expert, you will want to get as much information as you can from the seller to begin your analysis. This information is usually provided in a secure data room and may be provided in general terms without any names, but it will give you an idea of the “HR side” of the organization. This could include:

  • Leadership compensation
  • Organization chart
  • NDAs
  • Employment agreements
  • Payroll records
  • Benefits that are offered, including 401k/retirement, compliance with ERISA, carriers for the plans, costs, last 2 years’ data
  • Pending legal issues
  • Financial documentation

At this point, the parties will sign a letter of intent signaling that they are all in agreement with the business framework for the deal. Now the due diligence begins. All documents are carefully reviewed by HR and finance to ensure that there are no unexpected surprises that could derail the deal.

Phase 4: The Agreement

In this phase, the finer details and price become the top focus. There are books written about how valuation is calculated in various industries, so we won’t go into that here. The most important thing is that both parties will come to an agreement on the price and legal documents will be drawn up. Be aware that negotiating the finer details of the acquisition may take longer than you would think.

Once the agreement is reached, there are some filings that need to be completed including with the secretary of state, tax documents, workers’ compensation, and other government bodies who will need to be notified of the event. At this point, the information will soon be public, and you should have a communication plan ready.

Once everything is signed, the integration of the two entities begins and management and HR must now bring the two workforces together.

Phase 5: Integration

HR is now tasked with ensuring the new company is fully integrated. The integration phase includes:

  • Communication strategy
  • Combining the organizations and cultures
  • Determining redundancies
  • Formulating strategy
  • Ensuring the retention of staff

The “people” side of the acquisition is extremely critical at this point. HR must find ways to retain key employees and keep employees engaged.

How HR Can Ensure Successful Integration

To weave together a new organization, HR will need to keep an eye on many different threads – first among those is culture. Cultural compatibility issues often arise when bringing together two or more organizations in the M&A process. The M&A integration always has a degree of misalignment, regardless of the perceived similarity between the two organizations. Cultural alignment has been identified as the top challenge in M&A transactions, therefore we recommend HR professionals be prepared to address it early on.

Additional areas of focus, as reflected in the diagram below, include combining policies and procedures, identifying and retaining key employees, conducting talent assessments, combining compensation and benefits, and implementing a well-developed communication strategy.

IMAGE - M&A Integration Chart

Identifying and Retaining Key Employees

Retention of key employees will be critical to the success of the M&A. To retain key talent that will help make the new organization successful, HR and/or management should communicate its intentions to the “star performers” as early in the process as is legally possible to help ensure retention. This will involve requesting access to conduct confidential interviews with key employees in advance of the actual closing date.

HR should advise management to be very careful not to under-commit to these key employees, or they will consider other employment options. Star performers know who they are and understand their personal and professional marketability.

Combining Policies and Procedures

HR will need to look at the policies of both organizations and consider how to handle the differences. You may choose to retain only the buyer’s or seller’s policies or combine the best pieces from both organizations. You will also need to determine how to handle any changes that would cause employees to have less than what they currently have (i.e., PTO, cell phone, etc.). In the end, you may decide to grandfather those items or provide compensation.

Conducting Talent Assessments

HR will need to identify and manage redundancies and reductions. Be prepared to allocate a significant amount of time to assess employee knowledge, skills, and abilities (KSAs) to determine which individuals will be retained and who will be let go. Your strategy may include terminations, early retirements, and a longer-term plan to simply not fill certain positions as they are vacated. A careful strategic approach will be key here – the ways in which these talent management decisions are made will be as important as the actual decisions themselves, as they’ll communicate a great deal about the new organization’s values.

Tips on how to approach talent assessments:

Go through your organizational chart and identify key people. Don’t limit yourself. Consider everyone, not just management. For example, are there key people in your hourly staff?

For each key employee provide:

  • A short summary of their main responsibilities
  • Years of service, specific experience, and retention risk estimate
  • Criticality of the role/employee for the continuation of business and operations
  • Any specific agreements with the employee not included in the data provided (i.e., education, training, bonus, perks)
  • Development ambition/potential for next steps or succession candidate for other roles within the company
  • Other comments to be highlighted by management

You may find a 9-box tool to be helpful in this analysis.

Combining Compensation & Benefits

Depending on the circumstances of the deal – and the compensation policies of the combining companies – HR will likely be called on to splice disparate payment plans into a compensation program that fits the new organization.

It goes without saying that all employees, new and old, will be concerned about what is happening with their pay. Be sure to provide full and early disclosure about the changes being considered to put their minds to rest. Also, members of the senior management team will be anxious to see what types of special arrangements (i.e., stock options, special retirement provisions, severance agreements) will be offered to them given the high-profile nature of the new positions.

In addition to developing compensation programs, HR will likely be required to assess and make recommendations on employee benefits. You can follow a similar process to how you combined policies and procedures for the organization by retaining only the buyer’s or seller’s benefits or combining the best pieces from both organizations. You should also decide if there are any options for which you choose to grandfather in or compensate.

Similar to compensation, employees are sure to be concerned about possible changes to their employee benefits coverage and will want to be informed about “the new package” as soon as that information is available.

Implementing a Well-Developed Communication Strategy

Having a well-planned communication strategy in place is critical throughout the M&A process. It is important to control the message, delivery, and timing, especially when it comes to who gets the information first (i.e., employees, clients, media, investors). When preparing your communication strategy for employees, HR and company leaders should use a concise people-related strategy.

You should include:

  1. The shared vision for the new company
  2. The nature and progress of the integration and the anticipated benefits
  3. The outcomes and rough timelines for future decisions
  4. Compensation and benefits
  5. Key policies, rules, and guidelines to govern employee behavior and related workplace expectations (i.e., attendance, time off, harassment, drug testing, privacy, etc.)

Communicating clear, consistent, and up-to-date information not only will give employees from both organizations a sense of control by keeping them informed, but it also can increase the coping abilities of employees and minimize the impact of the integration on performance.

Five Tips for a Successful Communication Program:

  1. Establish multiple routes of communication (i.e., one-on-one meetings, group sessions, newsletters, intranet updates).
  2. Focus on the themes of change and progress by highlighting projects that are going well and action items that are being delivered on time.
  3. Repeat the common themes of the M&A to increase employee understanding of the rationale behind the transaction.
  4. Provide opportunities for employee involvement and feedback.
  5. Ensure that employees understand there will be problems, but give a commitment that the problems will be identified and addressed as early as possible.

The Importance of Transparency and Compassion

The success of your integration hinges on how your restructuring is implemented. As a result, the highest priority for the acquiring company is to be transparent and straightforward about what is happening and what is planned. Even when the news is bad, the one thing employees of newly acquired companies appreciate most is the truth. This includes being able to say “we don’t know” about certain areas or “we have not yet decided” about others. Being honest also includes sharing information about when and by what process a decision is expected to be reached.

Once decisions are made about functions and people, HR and company leaders must treat those employees who will be negatively affected by the transaction with dignity, respect, and support. Not only is this approach the humane thing to do, but it also is a powerful way to show those who remain what kind of company they are now working for and can help them to begin to develop positive feelings toward the new organization.

Thank you to Cecilia Vocke, MS, SHRM-SCP, SPHR, Senior HR Business Advisor for contributing to this Emerging Issues in HR.

Ensuring that your HR Strategy aligns with your Company Strategy is critical to the success of your organization. Clark Schaefer Strategic HR has years of experience helping clients develop and implement their HR strategy and goals. Visit our HR Strategy Services to learn more about how we can help to assess your organizational design and HR processes to effectively plan for the future.

How Do I Conduct a Training Needs Analysis?

How to conduct Training Needs Analysis
HR Question:

My company is focusing on team member training for next year. To get this started, I have been tasked with carrying out a training needs analysis for all team members. What are the steps I need to take to accomplish this successfully?

HR Answer:

To begin with, let’s first understand what a training needs analysis is and how it can be crucial to the success of a training program. Consider a training needs analysis as a way to investigate and determine what your team members need to be effective in their roles, or what skills they might need to take their career to the next level.

Leadership may have some common training exercises in mind, or perhaps there may be training around compliance that’s required for your industry, but keep in mind that each team member will come to the table with a unique set of skills and experiences. It’s important not to assume that all team members will need the same training. So how do you effectively investigate specific needs?

How to Begin a Training Needs Analysis

To best determine what type of additional training exercises would be beneficial, all you need to do is ask! Create and launch an employee survey or a self-assessment. You can create an online survey or go the pen and paper route.

Questions to include in an employee survey:

  1. What kinds of training have you received in your current position?
  2. What type of additional training would be useful to create more value to the company?
  3. Are there any duties in your job description that you struggle with or feel unprepared for?
  4. Where do you see yourself in 5 years? What tools or training will help you get there?
  5. What are your learning preferences (large group training lectures, small group training discussions, hands-on learning opportunities)?

Finding out the answers to these questions is an important first step. However, there are other methods you can use including the suggestions below.

Additional ways to identify training needs:

  1. Talk to your supervisors and managers. What training are they currently conducting and how are they doing it? What training needs do they see?
  2. If a personal touch may generate more accurate results, consider meeting one-on-one with your team members or creating a focus group. Ask them what they need to be successful at their job and what training would help them elevate their careers.
  3. Review performance evaluations. Do not automatically concentrate on negative performance areas, consider additional learning events to help high performers keep excelling.
  4. If you conduct exit interviews, take some time to review them. Former members of your team may have given you excellent insight into training needs.
  5. Look for customer feedback. Have any customers made complaints? Do you have negative reviews online? Look for patterns in the comments that lead to gaps in training.
  6. Evaluate any new process or system at your workplace. Do you have a new phone system? Are you upgrading to new software or updating a current software version where technical training would be needed?
  7. Check to see if supervisors have made critical incident reports. Are there any written notes about employees who have either done outstanding work on an assignment or had a problem with an assignment or customer? Critical incident reports aren’t official performance evaluations, but they could be helpful to point out areas of weakness that need improvement.

Conducting a training needs analysis can lay a strong foundation for developing or revising your training programs. Conducting this analysis allows an organization to focus its efforts on areas of training that are necessary for employees to successfully carry out the organization’s goals, make optimum use of the company’s training dollars, and motivate employees by contributing to their career development.

Special thanks to Sherri Hume, SHRM-CP, HR Business Advisor, for contributing to this edition of our HR Question of the Week!

Training and Development of your employees is a key factor in remaining competitive. Not only does it keep you up to speed with your competitors, but it also gives you the edge when recruiting or retaining employees. Strategic HR has experience in training needs analyses and developing training programs to keep you on the leading edge. Visit our Training and Development page to learn how we can assist you with your training and development.