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 our experience, 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 article.
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 Strategypage, or simply contact us – we’d love to hear from you.
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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., 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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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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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 Samantha 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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I’ve received a couple of complaints about one of our managers because he is quick to jump to conclusions and doesn’t listen well to his team. I want to provide him with some coaching on active listening. Can you offer suggestions on how to teach him to be a good listener?
HR Answer:
How many times have you walked away from a conversation with someone, whether it was your boss, co-worker, friend, or family member, saying “they just don’t listen to what I am saying!”? This is a common frustration for many, and it happens for a variety of reasons. Whatever the reason, it causes dissatisfaction and can lead to hurt feelings or feelings of distrust.
Listening is a leadership skill that is rarely taught, yet it is a critical one for managers. And listening is getting more challenging in the world of remote employees, remote customers, and remote meetings. In more than thirty leadership and HR articles published on our website alone, listening is cited as an important component in the advice, training, or program being recommended. So, as you look to provide active listening coaching, you want to help the manager to understand both why it is important and how to become a better listener.
Why Listening Skills Matter
The ability to make others feel valued for their contributions to a project, a team, or an organization as a whole is a reflection of an effective leader. Being a good listener and ensuring that employees feel heard is essential in developing trust, respect, and loyalty.
In a recent Fast Company and the Harvard Business Review dive into science-based, specific steps on how to become a better listener. To break down their suggestions to the barest components, both sources recommend these basic essential steps:
Be Quiet
Listen
Repeat
Sounds easy, right? But what do each of those steps really entail? To implement them correctly, you must:
Focus all of your attention on the other person. Stop what you are doing with your computer, phone, or even distracting thoughts from a previous conversation running through your head. Use all of your senses to focus on what the person in front of you (in person or on-screen) is saying.
Use non-verbal cues to communicate that you are listening, like making eye contact and nodding your head. Also, pay attention to the speaker’s non-verbal clues to see if they are congruent with the words they are saying.
Remain calm and control any emotional response you have to what they are saying. Allow them to finish their statements before you say anything in response, and do not plan your response in your head while they are still talking. Listen to everything they have to say first.
Restate the last few words they said, and clarify what you believe they were saying. Ask follow-up questions. If the person’s words do not match the non-verbal signs the speaker is giving, carefully inquire about the differences.
Finally, make sure you understand why they shared this message with you, and if you do not, then ask. A good listener seeks to understand the speaker’s intent, i.e., were they just venting, were they sharing an accomplishment and they need praise, or do they expect you to take some action as a result of what they shared?
Active Listening Enhances Your Professional and Personal Life
It takes practice to be a good listener. It may come more naturally for some than others, but it is a skill that everyone can develop. As you work on finetuning the skill, ask for feedback about how well you listen… and listen to the response! Listening is a skill that will not only enhance your communication and leadership at work, but it’s valuable in your personal life as well. Working on your active listening skills will be time well spent – your employees, friends, and family will appreciate your efforts.
Thank you to Lorrie Diaz, MS, for contributing to this HR Question of the Week.
Carefully choosing the right words and the best approach can make the difference between achieving your goals or having your efforts go awry. Managing your HR Communications doesn’t have to be hard – as long as you have the right tools and training. Learn more about how Strategic HR can help with your HR Communications or contact us about your needs.
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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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Do I really need job descriptions for my employees? Are they legally required? We have a small staff and everyone has to be willing to do everything. What is the value of having job descriptions?
HR Answer:
No, job descriptions are not legally required documents, however, they can help your employees (and their supervisors) to understand their responsibilities and how their roles contribute to the mission of your organization. They are also an important part of compliance and, when written well, can help to protect your organization should you face employment law disputes.
To achieve optimal performance, it’s important that your employees understand the scope of their responsibilities. Job descriptions help to define a job by determining and documenting the responsibilities of the position and the physical requirements of the job. This document is not a “how-to” or a procedure outline (which can change frequently), but rather it should capture what individuals are accountable for in their job.
Job descriptions add value because they:
Provide a clear picture of the job to applicants applying for the position
Help current employees to understand what they are accountable for
Serve as a helpful tool for supervisors to coach employees on how to improve performance
Help to determine appropriate salary levels for a position based on the expectations, education, and experience requirements for the role
Allow individuals to evaluate the physical requirements necessary for the position and what the work environment is like (i.e., Does it require heavy lifting? Is it a “desk job”? Does it involve frequent travel, evenings, or on-call availability, etc.)
Allow organizations to determine if an employee can perform the physical functions of a job or if an accommodation could be made for those applying for a job (or coming back from a medical leave or workers’ compensation leave, for example)
Getting Started: What to Include in a Job Description
If you’re beginning the process of creating job descriptions, it can be helpful to conduct a job analysis to understand the necessary tasks and responsibilities for the position and how the job is performed by employees at your organization.
Common components of a job description include:
Job Title
Reporting Structure: Role the position reports to and role(s) the position supervises, if applicable
Job Summary: It is helpful to provide a brief, general overview of the position.
Essential Job Duties/Function: Describe the duties that must be performed in the job. Focus on the function of the job rather than the means used to achieve that function. It helps to identify the required outcomes of the job tasks rather than describing the tasks themselves.
Physical Demands/Requirements
Work Environment
Minimum and Preferred Requirements
Disclaimer: Explains the job description isn’t designed to list every responsibility and is subject to change.
Acknowledgement/Signatures of Incumbent and Supervisor
For additional components to consider, see this step-by-step guide provided by the Society for Human Resource Management (SHRM). We also recommend that you consult your legal counsel for guidance to ensure your job descriptions are appropriate for your organization and legally compliant.
Out of Date Job Descriptions Pose a Risk
It is important for your job descriptions to be kept up to date, otherwise they can potentially cause more harm than good when it comes to providing HR Compliance support. However, when written well, the positive aspects of a job description outweigh the negatives and can provide you with documentation on the job requirements and support actions that you may have taken. Therefore, whenever your organization goes through significant changes or the nature of your work or specific jobs shift, be sure to revisit and revise your job descriptions accordingly.
An Easy Way to Keep Job Descriptions Updated
If finding the time to revise your team’s job descriptions feels like a daunting task in and of itself, consider addressing them one at a time. An easy way to work updates into your routine is to have supervisors take a few minutes during the performance review process to work with each employee to make any necessary updates their job descriptions. Approaching the updates one at a time during your reviews can help to make the process more manageable.
Job descriptions are too important to fall to the bottom of the “wish list.” When done correctly, they serve a multitude of functions. However, we understand busy workloads often relegate job descriptions to a “when time permits” activity. If you are putting off creating or revising your job descriptions due to a lack of time or staff, contact us. Dare we say it’s “in our job description” to help!
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Creating a strategic plan for your business or new division is like creating a map for an exciting, but unfamiliar, journey. This map will help to keep you on course if you start going in the wrong direction, but it isn’t so stringent that you can’t check out different roads along the way. As a business owner, I use this process each year during my strategic planning sessions: I map out where I am, where I want to go, and how I think I can get there. During the year, my map is both a guide for what I should be focusing on, as well as a resource to help me “check where I am” whenever I am tempted by something new and different. Sometimes, I rewrite my plan based on unforeseen changes (i.e., technology, COVID, economy, emerging trends), but many times it has helped me realize what is most important for the business and make the right decisions with various opportunities and threats to ensure my long-term goals are met.
There are many formulas or formats used for strategic planning, but for the most part, they cover the same points and reach the same goals. Below is an overview of the process that I use personally, as well as what we use with many of our clients.
How to Complete Internal and External Analysis
Part of mapping out your journey requires you to take a strategic look at your business. Your first step will be to determine where you are in the market by doing a “SWOT” analysis — identifying your internal Strengths and Weaknesses as well as external Opportunities and Threats.
Internally, this includes assessing both the strengths and weaknesses of your human, financial and technological resources, as well as the culture and values of the organization. The best way to do this is by brainstorming. Create two columns — one for strengths and one for weaknesses — and begin writing down anything that comes to mind as a strength or weakness to your business. For example, one of Strategic HR’s strengths is the “ability to be a change agent — very flexible and adaptable as needed” while a challenge is “managing our team’s growth.”
An external analysis requires you to evaluate what’s going on “outside” your business and how it may affect you. As discussed in Christine Keen’s book, Effective Strategic Planning: A Handbook for Human Resources Professionals, you should consider issues in the following four categories: economic (i.e., unemployment, interest rates, recession), political (i.e., current or pending legislation or court cases), social (i.e., values, lifestyles, and demographics) and technological. For example, from my external analysis, an opportunity was “Volunteer opportunities with complementary organizations” and a potential threat was “Growth of individuals starting to do human resources consulting.”
Gathering this internal and external information will give you a snapshot of where you are now — the starting point on your journey. However, a starting point, by itself, will not enable you to achieve your goals. Like going on a trip, you need both a starting point and a destination. This reminds me of my favorite quote from Alice’s Adventures in Wonderland:
“I just wanted to ask you which way I ought to go?”
“Well, that depends on where you want to get to,” said the Cat.
“It really doesn’t matter…” said Alice.
“Then it really doesn’t matter which way you go,” said the Cat.
Developing Your Vision and Mission
Next, you’ll need to determine your destination — in other words, your Vision or preferred future. A Vision can be summarized in a short statement that is quickly and easily understood by anyone; it describes something different for the organization. As a sample, below is Teach for America’s Vision statement (at one point in time):
“One day, all children in this nation will have the opportunity to attain an excellent education!”
Next, you need to develop your Mission statement or a statement explaining why you exist. Like the Vision, the Mission is also a short statement. But, a Mission statement describes what the organization does which will help it progress toward its ultimate future, the Vision. For example, Tesla’s Mission statement is
“To accelerate the world’s transition to sustainable energy.”
As you begin to develop your Vision and Mission, you will find it easier if you brainstorm again. This time, think about what’s important to you and to your business — who are your customers, what makes you different, how would your clients describe you, what can you contribute or offer to others, what would you like to do or be tomorrow? Developing the Vision and Mission are the most difficult. Initially, this may take a number of rewrites with input from others. For additional examples, check out HubSpot’s 17 Truly Inspiring Vision and Mission Statement Examples. Once you have both the Vision and Mission clearly defined the rest of your plan will fall right into place.
Create Specific and Measurable Objectives
Now to answer Alice’s question to the Cat… Once you know where you are and where you want to go, you can then map the directions for getting there. In other words, you can identify the key objectives that must be met after this planning period to progress toward your Mission and Vision. Generally, your objectives should be specific and measurable. In addition, they need to be ambitious but realistic, and only focused on what needs to be done rather than how. For example, an objective may be:
“Develop a partner program to help grow business referrals.”
Your list of objectives will quickly grow but you have to narrow down the top four or five that help advance your business toward meeting your Vision and provide you with a competitive advantage. If the list is too long, your plan will quickly become a “dead” document rather than a “living” document that you can use and refer to throughout the year.
Develop an Action Plan for How to Meet Each Objective
For each of your objectives, you will then need to create a detailed action plan identifying “how” you will meet the objective. I’ve had the most success with this by completing the following formula for each objective:
Desired Results
What are you hoping will happen or your desired result if the objective is met?
How will you benefit?
Potential Obstacles / Barriers
What might prevent you from completing this objective?
Supports
What resources, people, or tools are available to help you with this objective?
Process
What steps must we take to achieve this objective?
Be specific on each step indicating who will do what and when.
Evaluation
How will we know when we’ve successfully met this objective?
This may seem like a lot of work for each objective, but if you map out the answer to all five of these steps, you will have a very clear and unquestioned plan for how your objectives will be met.
Implementation and Evaluation of Your Business Strategic Plan
The hardest step in this process is the next one — implementation! Don’t let yourself do all of this planning and throw the end product on the shelf until next year. If you do, where will you be at the same time the following year? Will you be any closer to your preferred future? (Hint — the answer is no!)
To help ensure that you are proactively working toward these goals, you need to check back on your business plan often — at least quarterly or when anything significant happens to change your plan (i.e., pandemic, economic shift). Has anything changed? Are you on target? Do you need to modify any of the plans? The strategic plan for your business is a living document, so it may change; this is okay as long as you are aware of the changes and make them yourself rather than them being made for you.
Developing a strategic plan for your business isn’t an easy process and can be extremely exhausting. But, if you create an effective and realistic strategic plan for your business, you will begin to focus resources today toward meeting your goals for tomorrow. Plus, you will have a tool to help you minimize the threats and maximize the opportunities. One of the most important benefits of effective strategic planning is that it provides you with a fresh start by clarifying where you are, where you are going, and how you are going to get there. You should re-evaluate your strategic plan on an annual basis using a planning horizon between 2-5 years. Each year, you may find that a great deal changes but your preferred future will stay status-quo until you reach it – and you will!
Thank you to Robin Throckmorton, MA, SPHR, SHRM-SCP, HR Consultant Emeritus, Retired Shareholder in Charge for sharing her expertise on Strategic Planning.
Need help tackling your HR Strategy for the rest of the year? Let our team of HR experts assist in laying out your road map.Please visit our HR Strategypage, or simply contact us – we’d love to hear from you.
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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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To thank my employees for their extra efforts, I have provided them with a $50 gift card. Accounting is telling me I have to report the value of the gift cards as taxable benefits. Is that true?
HR Answer:
Yes, it’s true! According to the IRS, cash, gift certificates, and gift cards are considered taxable fringe benefits and must be reported as wages. But you may be relieved to know that this rule doesn’t apply to all gifts or perks that you may give to employees.
The IRS tells us that we can exclude the value of a “de minimis” benefit from an employee’s wages. For those unfamiliar with a “de minimis” benefit, the IRS defines it as “any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable.” Most employers tend to categorize de minimis gifts in the under $50 range, but for some, it can go upward of $100.
In comparison to cash or cash equivalents which are always considered taxable benefits, small gifts have much more flexibility when it comes to tax responsibilities according to the IRS. But how organizations denote “small” is still up for negotiation. When deciding on a gift or fringe benefit for an employee, consider the value and the frequency of the gift or benefit. For example, purchasing a book for an employee for their birthday would be excluded. Purchasing a book every month for an employee would not be excluded due to the frequency of the gift, regardless of the value of the book.
Additional Examples of Tax-Exempt Benefits
Other examples of de minimis benefits include such things as some meals, occasional parties, occasional tickets for events (not season tickets), holiday or birthday gifts (other than cash or cash equivalents). Essentially, occasional gifts that can’t be redeemed for cash value can be considered as these exempted benefits.
There is also an exemption for achievement awards, which come with additional rules of their own. Examples of these gifts include gifts for achievements such as safety milestones or length of service or anniversary milestones. Certain achievement awards can be excluded from the employee’s wages if the awards are tangible personal property and meet certain requirements. Notable exceptions from The Tax Cuts and Jobs Act prohibit certain property as an employee achievement award, including vacations, lodging, stocks, bonds, and securities. Limitations are further detailed in the Act, including $400 maximum for non-plan awards and up to $1600 if you have a documented, non-discriminatory program surrounding the awards.
Additional requirements exist for these achievement awards. For example, length-of-service awards can’t be received during the employee’s first five years of employment or more often than every five years. Also, safety awards can’t be given to more than 10 percent of eligible employees during the same year.
Employee awards are an important part of employee engagement. It is important, however, to make sure you don’t turn that $100 thank you gift card into a much more expensive “gift” by assuring you are properly handling the taxes accompanying such a gift.
Strategic HR knows that keeping abreast of HR Compliance issues can be daunting, especially when the laws keep changing. We can help you stay compliant by fielding your questions and offering resources to help you identify and mitigate compliance issues. Visit our HR Compliance Services to learn more.
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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.
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:
Create a work-from-home policy that includes the requirement to maintain a professional, well-kept, and safe work environment. Include home safety audits.
Require employees to report any work-related injuries or illness immediately to their manager or safety official.
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.
Ask the employee to take pictures of the work area where the injury occurred as well as of their injury, if possible.
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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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.
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:
The shared vision for the new company
The nature and progress of the integration and the anticipated benefits
The outcomes and rough timelines for future decisions
Compensation and benefits
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:
Establish multiple routes of communication (i.e., one-on-one meetings, group sessions, newsletters, intranet updates).
Focus on the themes of change and progress by highlighting projects that are going well and action items that are being delivered on time.
Repeat the common themes of the M&A to increase employee understanding of the rationale behind the transaction.
Provide opportunities for employee involvement and feedback.
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, for sharing her expertise in this article.
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.
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Each time I take on a new role managing staff, I find myself needing to have difficult conversations with employees about sensitive issues. I’ve had to deal with hygiene issues, someone who wore too much perfume, and even someone who wore an unsightly shirt every single day. What is the best way to deal with these issues and talk with employees about these sensitive topics that are impacting others?
HR Answer:
Most business leaders will tell you that having difficult conversations with employees is one of the most challenging aspects of their leadership position. Whether it’s a team member with a notable hygiene issue or a co-worker with an exceptionally sensitive sense of smell, these interpersonal issues are disruptive to business, and we all wish they would just disappear!
It’s human nature to want to avoid that which we find unpleasant, and most of us would rather have a root canal than have a discussion about another person’s body odor. Great leaders understand that avoidance fosters a culture where issues are allowed to become toxic and spread, potentially impacting the entire team. To truly create change, it is important to be sensitive to the concerns of the individuals involved and handle the difficult conversation with a calm professional demeanor.
Build Trust From the Beginning
The best preparation begins long before the sensitive problem even occurs! Building trusting relationships with your team members early on will make difficult conversations less awkward and more productive.
One way to build trust and establish open lines of communication with your employees is to hold frequent and regularly scheduled one-on-one conversations with them. As an additional benefit, maintaining regular communication with your team members may allow you an opportunity to identify potential areas for concern and proactively address these situations before they escalate into a more serious problem.
How to Prepare for Difficult Conversations with Employees
When a sensitive problem does occur and a tough conversation is warranted, you should address the issue promptly, yet also take the time to fully evaluate the situation and properly prepare for the conversation. Review the details and facts as you are aware of them with the understanding that there is likely more to the story that you will need to uncover in your discussion with the employee.
Also, find the right words to tactfully address the concerns that have been raised and brainstorm potential responses and solutions ahead of the meeting. Approach the conversation from a place of empathy and avoid making assumptions as to the root of the problem.
Suggestions on how to have a respectful and productive discussion:
Make sure the employee knows it is not a disciplinary meeting but rather a coaching conversation.
Meet with the employee in a private location without interruptions where you can explain the problem and how it affects the workplace. Have items such as water and facial tissues available if needed.
Allow the employee to lead the conversation which may result in an apology, learning they were not aware of the situation, or possibly a personal discussion as to why the person is having the issue.
Be open to the possibility that the employee may have a disability or religious or cultural factors that are impacting the situation at hand (hygiene, for example).
If they aren’t readily forthcoming in your conversation, try to understand the root of the issue by gently guiding them and allowing them plenty of time to open up.
Holding the meeting at the end of the day may be best as it will allow the employee to leave immediately afterward.
Be compassionate and focus on the company’s future expectations.
Emotions may run high. If it seems the employee is struggling with the information, allow the employee time to process the information on their own. Offer to have a follow up meeting to continue the discussion once they have had time to think about it.
Don’t Fall Into These Complaint Pitfalls
While it is vital for managers to proactively address these issues, it is also important to do so without jumping to conclusions. It must be noted that it is not always the subject of the complaint that needs to be addressed. Be careful when handling issues to ensure that there is validity to the complaint and that it wasn’t a result of one overly sensitive employee, or worse yet – a bully.
Additionally, don’t allow employees to play what Marlene Chism calls “Power of Attorney” by bringing complaints on behalf of others. Ensure that complaints are brought to you by the party involved and avoid falling into secret conversations and gossip with complainers.
You may also find that negative employees can spread negativity resulting in a detrimental impact on the morale, productivity, and profitability of your team. Sometimes the difficult conversation needs to be with the chronic complainer who may allow their own personality flaws to lead to frequent complaints about their co-workers.
Although having difficult conversations with your employees is not likely to be your favorite part of your job, they can be critical to ensure the productivity, health, and well-being of your team. If you can go into the uncomfortable discussions with a professional and development-focused approach, often you can solve issues while also building trust and respect with your employees.
Thank you to Colleen Mahoney, PHR for contributing to this HR Question of the Week.
Communication often seems like a “no-brainer,” until you have a difficult or complex message to deliver. HOW you communicate is often as important as WHAT you communicate when it comes to getting results! Strategic HR has years of experience preparing HR communications for a variety of audiences and topics. Visit our HR Communications page to learn how we can assist you with your HR communications needs.
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I’m a new supervisor. Now that I have oversight of my team, I know it’s my responsibility to keep an eye out for unethical behavior. But what does that behavior look like? How can I prevent unethical conduct on my team?
HR Answer:
Ethics in the workplace can be a broad and, at times, intangible concept. At its root, unethical business practices include any behavior that violates the law, such as theft or violence, but can also include areas that are broader and more nebulous. According to The HR Digest, the five most common examples of unethical behaviors are:
Employee theft. In 2012, one out of every forty employees was caught stealing from the workplace.
Misusing company time. This may include an employee who spends the entire morning placing orders on Cyber Monday or a co-worker who clocks in for an employee who shows up late.
Verbal abuse. This can include bullying co-workers or subordinates or harassing employees.
Lying in the workplace. An example could be a sales employee who tells customers that a defective product has a flawless reliability record.
Taking credit for someone else’s work. This could be an employee who takes credit for a co-worker’s idea for a process improvement and receives a bonus for a job well done.
Is Unethical Behavior Really That Common?
Studies suggest that unethical behavior is something that all managers must confront at some point in their careers. To illustrate this point, in HR Ethical Dilemmas by the Society for Human Resources Management, 30% of surveyed U.S. employees said they felt pressured to compromise their workplace’s ethics, a 14% increase from three years earlier. Almost half of those employees surveyed said they observed misconduct that violated their organization’s ethics standards.
The risks of unethical behavior in business can be devastating. For instance, bad corporate behavior can lead to the loss of valued employees and can discourage new recruits from applying. Employees want to work for a company that has values that align with their own personal values. They’re even willing to take a pay cut for it, as evidenced by MetLife’s recent study that found 89% of employees are willing to trade some of their salary (an average of a 21% pay cut) to work at a company whose values match their own.
But the impact isn’t just felt internally, as customers’ decisions can also be impacted by unethical behavior. According to Accenture’s Global Consumer Pulse Research, 62% of consumers consider a company’s ethical values and authenticity before making their purchasing decisions. Finally, unethical behavior can carry with it legal risk, resulting in fines, penalties, and even incarceration.
How Can a Company Prevent Unethical Behavior?
Companies can take steps to prevent unethical and unlawful behavior. This includes the following steps:
Establish a Code of Conduct. Business leaders, including HR, must establish clear statements that define a company’s values, principles, and conduct.
Train every employee on the company’s values, principles, and code of conduct. Training should be done in a way that helps each employee to see how their work and behavior support these principles.
Establish a means for reporting unethical behavior. One of the most effective ways of enabling employees to report workplace ethics violations is to establish a 24/7 hotline that allows employees to report concerns anonymously and without retaliation. Those staffing the hotline should be a third-party, or employees who are removed from operational management. Concerns should be reported directly and confidentially to a senior executive or, in some cases, to a designated Board member.
Include a question on business ethics in your employee engagement surveys. If employees respond less than favorably to this question, find out why through focus groups or department meetings.
Share your Code of Conduct with your clients and suppliers. Let them know the company will abide by the Code while working with them. Provide them with a means to share feedback on any concerns regarding business ethics while working with the company.
As a supervisor, it goes without saying that your team is likely to emulate the behavior that you model. Therefore, it is important that you uphold the company’s values and Code of Conduct in your own behavior and ensure that your team members receive the appropriate training and understand the ethical standards they are expected to maintain.
Special thanks to Terry Wilson, SHRM, SPHR-SCP for writing this edition of our HR Question of the Week!
Have a new supervisor on your team? Put them on the road to success by signing them up for our Supervisor Training Series! Visit our Training and Development page to learn how we can help your management team to get off to the right start.
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In today’s chaotic environment, many American workers have been searching for ways to cope with the “new normal.” Between the pandemic, civil unrest, a divisive and contentious election, and frequent changes in their day to day life, it’s no surprise that mental health concerns in the workplace are on the rise. What impact can your employees’ mental health have on your organization?
In a recent study of 12,000 employees conducted by the Boston Consulting Group, individuals with better mental health were about two times more likely to maintain or improve their productivity when compared to those who were experiencing worse mental health during the pandemic. When surveyed about their mental health needs, TELUS International found that roughly 80% of workers would quit their current role if a new position provided more support for their mental health needs.
In this unique moment of increased remote work, additional challenges have presented themselves. In that same study, four out of every five workers indicated that they found it difficult to separate their work life and home life when working remotely due to the pandemic. Between the longer days and later hours resulting from a lack of structure when working from home, the mental strain led to an inability to maintain a positive work-life balance. This trend can be very difficult to sustain on a long-term basis, eventually impacting employee productivity and the quality of their work.
So how can HR and business leaders partner together in this remote/hybrid work environment? The same TELUS survey allowed employees to voice the changes they would most like to see implemented.
Encouraging the Use of PTO
Roughly 97% of those surveyed believed that taking vacation days is important to their mental health. In fact, over half of those surveyed have taken a “mental health day” since the pandemic began. Without the ability to travel or get away for vacation, employees may find themselves hesitant to take time off. Leaders should encourage the use of available PTO to disconnect, recharge, and relax – even if it’s within their own backyard.
Creating Flexible Scheduling (Without the Extra Hours)
Nearly nine out of every ten respondents agreed that a flexible work schedule would positively impact their mental health. This would allow employees to take mental breaks during the day, catering to children’s school schedules and family needs while reducing the guilt associated with “not being available.” When implemented correctly, this gives employees a feeling of control, reduces turnover, and boosts morale.
Provide Professional and Personal Interaction
Many employees would benefit from additional coaching or “reach outs” through the week from their managers or leaders. By connecting up and down the ladder and across departments, these unstructured check-ins can allow employees to fill the social gaps they lack from the isolation that naturally comes with remote work. In fact, many businesses have also implemented virtual “happy hours” to have their team gather for social interaction. Be sure to strike a careful balance here to avoid “Zoom Fatigue” by bombarding each other with video calls and check-ins.
Implement Telehealth Initiatives
There has been an increased demand for remote counselors or therapy sessions. In fact, the American Psychology Association has indicated that telehealth counseling can be just as effective as in-person counseling especially for younger generations that are used to using technology. It also allows for easier scheduling, lower costs, and a more private environment than the traditional face-to-face setting. Connecting employees to resources that provide this kind of remote support can allow individuals to work through their stress and develop coping mechanisms with trained professionals.
The COVID-19 pandemic has increased the ongoing conversation around mental health and highlighted the importance of taking care of ourselves, both in mind and in body. HR professionals and business leaders have an opportunity to make a positive impact on their lives and the health of their employees by building bridges for interaction, implementing mental health initiatives, and guiding employees to utilize the resources they have at hand. Strategic HR created this extensive compilation of mental health resources as an easy-to-use reference for employers to support the mental wellbeing of their employees. By encouraging frequent conversations, utilizing available resources without attaching stigma, and establishing positive practices surrounding mental health, businesses can see themselves and their employees through these uncertain times with success.
Special thanks to Mike Coltrane, Talent Acquisition Consultant, for contributing to the Emerging Issues in HR!
Your employees face challenges every day. We can help you to ensure that your company policies and benefits best support your employees’ overall well-being. Visit our Benefits and Compensation page or our Health, Safety, & Security page to learn more. Or, better yet, contact us.
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Our company has employees located in Ohio who all qualify for the protections covered under the Family Medical Leave Act (FMLA), but we also have employees working remotely in other states. Do our remote, out-of-state employees qualify for our FMLA policy?
HR Answer:
Great question. Even if the employees don’t fall within the 75-mile radius that the FMLA takes into account when counting employees towards the requirements, employers are still required to provide FMLA benefits to their employees who work remotely and out-of-state.
Why Does FMLA Compliance Matter?
What happens if those same benefits aren’t extended properly? Well, a lack of FMLA compliance can result in impressive fines. For example, not completing the notice can cost several hundred dollars alone, not to mention the millions in fines that can result from a mishandled claim or wrongful termination, such as the situation this Massachusetts company found itself in.
Even before the COVID-19 pandemic struck, some companies were beginning to branch out of their home states and hire individuals with the necessary talent, but not necessarily the ideal location. Many of these organizations were pioneering the process, working through the requirements and laws as they could. Now that remote work has become such a staple in the business community, it’s easier for any organization to run into this issue, as it’s often the case that many remote employees may be the first or only employee in a particular state.
How to Determine if Remote Employees Qualify for FMLA
There have been no changes to what is defined as “covered employers” as defined by the Department of Labor (DOL), as a “covered employer may be a private-sector employer (with 50+ employees within a 75-mile radius in 20 or more workweeks in the current or previous calendar year), a public agency, or a school.” Employers that fall under this category are required to provide FMLA benefits and protections to eligible employees while also complying with additional responsibilities required under the FMLA.
An eligible employee is one who:
Works for a covered employer,
Has worked for the employer for at least 12 months as of the date the FMLA leave is to start,
Has at least 1,250 hours of service for the employer during the 12-month period immediately before the date the FMLA leave is to start (a different hours of service requirement applies to airline flight crew employees), and
Works at a location where the employer employs at least 50 employees within 75 miles of that worksite as of the date when the employee gives notice of the need for leave.
So why does this rule extend to those employees who fall outside of the 75-mile radius and the 50+ employee count? It’s because the DOL determines their FMLA status based on the office or location that delivers their assignments or that they report to. The purpose of this is to protect the employees’ jobs should they have the need to focus on their own or their family’s health.
If you assume that you don’t have to meet FMLA guidelines for a remote employee, be sure to double-check the Department of Labor’s regulations, as well as your own internal reporting system, before skipping this important requirement.
Special thanks to Alisa Fedders, MA, SPHR, and Samantha Kelly for contributing to this edition of our HR Question of the Week!
FMLA, ADA, and other labor laws can be difficult to understand – let alone enforce. That’s where Strategic HR has you covered. We bring years of experience and know-how to the table. We can assist you with your tough compliance issues and help you sleep more soundly at night. Visit our HR Compliance & Recordkeeping page to learn more.
A performance improvement plan (or PIP), as defined by the Society for Human Resource Management (SHRM), is a tool utilized specifically to provide employees with an “opportunity to succeed,” rather than lose their job. PIPs provide two important features: first, to provide a timeline for improvement; and second, to create documentation of performance-related discussions. This means PIPs can be for anyone in the organization – strong performers, over-achievers, under-achievers, executives, or entry-level employees.
Organizations utilize PIPs in order to provide a clear path to success in partnership with an employee’s manager. Particularly in a difficult or limited candidate market, PIPs are best utilized as a retention tool to re-engage and improve an employee’s performance before the relationship between the employee and employer is beyond repair. However, that’s not always the case.
In early 2022, LinkedIn News published an article encouraging a revolution or reevaluation of performance improvement plans. Many employees identified the negative connotation that they associate with PIPs, arguing that they saw PIPs being used to “manage an employee out” of an organization, rather than being used to provide developmental opportunities to address goals or performance. In fact, some volunteered their own experiences of meeting or exceeding expectations, only to be placed on a PIP when there were internal disagreements or frustrations, encouraging the employee to look elsewhere for a job.
So should organizations abolish the use of performance improvement plans altogether? Or are there ways that we as HR professionals can improve the PIP process to utilize the process correctly and better serve our employees?
Ask Yourself “Why?”
As mentioned earlier, the goal of a PIP is to be used for developmental reasons (i.e. should there be performance goals to meet or behaviors that need to be changed for a successful and harmonious workplace).
As organizations take a closer look at how they utilize a PIP, it’s important to first ask why it may be necessary. Is the employee in question failing to meet performance goals? Or is there a behavior-related concern that’s impacting the workplace? A performance improvement plan may be appropriate here, as long as the intended result is an achievable improvement in a reasonable about of time.
If the answer to “why” is to eliminate a person from the organization, or encourage their resignation, then the PIP is being misused. Sometimes, organizations may utilize PIPs if they don’t have other ways or disciplining or managing poorly improving employees who aren’t a fit for the company. If that’s the case, the solution isn’t a performance improvement plan, but a clearly laid-out warning/discipline process instead.
Clearly Define Your Plans and Language
Some managers use the PIP because it doesn’t sound disciplinary when they’re really trying to manage someone out. As a result, the term has gained a negative connotation because it’s been used as a way to punish instead of encouraging to improve. The term “PIP” has even gained such a negative connotation that employees may immediately start looking at other roles for fear that termination is right around the corner.
To alleviate employee concerns and refocus employees on the real goal of a performance improvement plan, consider changing the language around the PIP. Maybe, instead of a “performance improvement plan”, consider calling it an “individual development plan.” After all, the goal is to refocus both the manager and the employee on the person and their individual success, rather than focusing solely on performance. This allows the tool to be used for anyone at any time – not just when there needs to be a marked performance improvement. By asking questions such as “how do you want to improve, how do you want to grow, how do you want to better yourself?”, managers can turn the implication of performance improvement plans around from “impending termination” to “invested growth.”
But, suppose the goal is truly to encourage an employee to consider another career path or to cut ties. In that case, it’s important to clearly define the language you plan to use while having an honest conversation with the employee and implementing a disciplinary form. Being sure to include an escalating path of written and verbal warnings, performance meetings, and deadlines will make terminations easier from a documentation and expectations perspective.
Timing (Implementation)
We owe it to people to coach and develop them before it’s too late. It’s uncomfortable to have frank conversations about performance, and most people prefer to look away until it’s too bad to ignore. But it shouldn’t be negative – feedback is a gift. There are so many people who don’t give feedback and expect them to read minds.
As in any coaching instance, it’s important to deliver the feedback – good or bad – as close to the instance the action happened as possible. But how you deliver it in the moment can be key. If the message comes from a place of truly caring about the person and wanting them to improve – be it their performance, approach, or level in the company – that should come across. And by being sure to use a coaching tone in the conversation rather than a disciplinary one, encourages employees to become invested in their own improvement rather than fearing being “caught doing something wrong.” In the end, it’s about assessing and respecting the difference between corrective action (which doesn’t have to be negative) and disciplinary procedures.
In this candidate-driven market, it’s difficult to find the talent that you need to continue to grow your business. Retention tools, such as performance improvement plans, can help you fully utilize and elevate your employees to greater heights (when used correctly). As you continue to assess your employee relations and development tools, consider re-evaluating how you might use performance improvement plans and disciplinary action to best support your employees and your company’s strategic goals.
Thank you to Cecilia Vocke, MS, SHRM-SCP, SPHR for contributing to this Emerging Issues in HR.
Strategic HR understands the value of retaining your workforce through good Employee Relations. We’ve helped companies nurture their cultures by designing/updating employee handbooks, creating reward and recognition programs, providing training for safe and productive workplaces, gathering feedback through employee surveys, pulse surveys, focus groups, and more. Learn more about our Employee Relations Services, or contact us.
We’re trying to review our benefit offerings to make sure that we’re meeting each of our employees’ needs. We’re able to offer the basics – health, dental, vision – but are there offerings we haven’t considered yet to keep up with benefit trends?
HR Answer:
In today’s market, it’s as important to retain the talent that you have as it is to recruit the right talent. The conversation around retention has offered employees a greater opportunity to be more vocal about their individual needs. So, what innovative employee benefits trends are employers implementing to retain their workforce and catch the eye of necessary talent? How can employers structure their benefits package with offerings that are appealing and beneficial to each employee?
Now more than ever, employees consider benefit offerings as an essential part of their compensation packages. While it’s obvious that employers can’t offer the sun, moon, and stars, employers can survey their teams to understand the benefits that would truly make a positive impact in their lives (and hopefully retain these employees longer). The results may surprise you, as it’s possible only a few adjustments need to be made to meet the wants and needs of your workforce.
For example, consider these four trending areas to enhance benefits and voluntary options to accommodate employee wants and needs: mental health, policies to support neurodiverse employees, support for life-changing diagnoses, and financial assistance.
Mental Health
Mental health remains one of the most talked-about and pressing benefit trends of this year. Even though the COVID-19 pandemic has receded to levels that allow for a partial return to normal, the impact on mental health remains. Many employers are turning to partnerships with apps like Calm or Headspace, while others (such as Clark Schaefer Hackett) have taken the opportunity to extend their Employee Assistance Programs (EAPs) to cover their employees’ extended family members, such as siblings and in-laws.
Policies to Support Neurodiverse Employees
It has been proven that diverse workforces naturally perform better. But diversity goes beyond race, gender, or age – it can also apply to thinking styles, abilities, and problem-solving practices (also known as neurodiversity). By creating inclusive policies and benefits for neurodiverse individuals – such as people with autism – organizations can open their doors to additional talent, unique perspectives, and innovative individuals, creating even greater diversity and inclusion in their workplace.
Support for Life-Changing Moments
As the conversation around work/life balance ebbs and flows between a balance and an integration, many would agree that personal life priorities impact performance, focus, and success at work. Offering support for moments such as cancer diagnoses and care programs (such as cancer insurance or critical illness insurance) or addressing the needs of female health (such as time and flexible work hours to deal with symptoms of menopause or fertility needs), miscarriages, or adoption needs can go a long way in addressing the work/life needs of your employees.
Financial Assistance
According to Schwab Retirement Plan Service’s annual survey, 48% of participants found themselves more likely to save more in general due to the pandemic, with over 85% listing a 401(k) plan as a “must-have” benefit. If 401(k) plans fall outside of what your organization can provide, consider offering smaller but still impactful benefits such as reimbursements for work-at-home expenses, stipends for child-care support, or programs to support emergency savings, debt management, and budgeting.
While healthcare costs continue to rise amongst the “Great Resignation” waves, employers are not without ways to attract and retain a larger percentage of their employees – starting with their benefit offerings.
Thanks to Janine Cummings, SPHR, SHRM-SCP for contributing to this edition of our HR Question of the Week.
Strategic HR has the answers to all of your tough Benefits and Compensation-related questions. Please visit our Benefits & Compensation page for more information or contact us to troubleshoot today.
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As a retention and growth opportunity, we have decided to shift to panel interviews to engage our team members in the hiring process. What’s the most effective way to use panel interviews?
HR Answer:
Panel interviews, when planned properly, can greatly exceed the effectiveness of single interviewer methods.
Why Single Interviewer Methods Can Be Difficult
From the perspective of an interviewer, conducting an effective interview can be a challenging task. The interviewer must concentrate on asking good questions and listening to the candidate’s responses. At the same time, the interviewer has to formulate an appropriate follow-up question, monitor how much time is left, jot down interview notes and, most importantly, pay close attention to both verbal and non-verbal responses of the interviewee. These tasks altogether create distractions that cause an interviewer to miss important cues from the candidate.
Panel interviewing addresses the shortcomings of the single interviewer method. As the Society of Human Resources shares, panel interviews allow interviewers to get a broader picture of the candidate and their experience while observing the candidate’s verbal and non-verbal responses and taking good notes. From the candidate’s perspective, it can significantly reduce the amount of time that they must spend interviewing with the employer as compared to interviewing with several employees separately.
How to Build an Effective Interviewing Panel
The interview panel generally should consist of three to five members with one of those individuals playing the role of panel facilitator. Whenever possible, the panel should represent the diversity of your organization. Although the specific individuals selected to participate on an interview panel will most likely change based on the positions you are seeking to fill, once a panel is selected for a particular role, the members of that panel should stay consistent until the position is filled. Panel members should receive training on effective interviewing techniques and be briefed in advance regarding their role in meeting with the candidates.
Before each interview, the panel facilitator will be responsible for a few tasks, such as assigning questions to each panel member, establishing the expectations of the panel, briefing the panel on certain areas for more emphasis or depth of questioning depending on the candidate’s situation, as well as distributing the materials to be used by the panel — candidate resume, application, interview guide, job description, etc. Ideally, these materials should be provided ahead of time for each panel member to review in advance.
During the interview, the facilitator will introduce the candidate to the panel, monitor time and, after the candidate has departed, lead the evaluation and consensus rating of the candidate. Preferably, panel facilitators should have good leadership skills, interviewing experience, and consensus-building skills.
The “Flow” of an Effective Panel Interview
The best panel interviews follow a sequence that allows panel members to get the most information from the candidate. Effective panel interviews will naturally follow the same steps.
First, introductions are made by the main facilitator, who will also detail the process for the candidate. The facilitator should let the candidate know there will be time for their questions at the end, so the candidate can feel at ease.
Using the same interview guide, the facilitator and other panel members will take turns asking questions of the candidate. It’s important that other panel members remain silent and take note of the candidate’s responses when it isn’t their turn to allow the candidate to focus on responding to only one person, as well as to make sure they’ve accurately captured the candidate’s thoughts. Once the panel members’ and candidate’s questions are answered, the facilitator will tell the candidate what to expect next and will escort the candidate from the interview room.
Afterward, the facilitator will lead the discussion on the candidate’s responses, qualifications, and ratings for each area questioned during the interview. Panel members will discuss their ratings, point out the basis for their evaluations, compare their decisions, and support their observations. Finally, a consensus on next steps should be reached.
The Importance of Reducing Candidate Stress
The most effective interviews provide candidate responses that are candid and thorough. Candidate stress can inhibit straightforward responses and reduce the effectiveness of the interview. Therefore, a genuine attempt should be made to put the interviewee at ease. This can be done in several ways, such as:
Giving the candidate enough warning that this will be a panel interview, along with background information on each panelist to help the candidate have a better idea of who they will be meeting with.
Avoid seating panel members behind a massive table or facing the applicant as if it were an interrogation or a trial by jury.
Make sure that each interviewer finishes asking all of their assigned questions before others ask follow-up questions. Without this, the candidate may feel interrogated rather than engaging in an open dialogue.
Special thanks to Terry Wilson, SPHR, SHRM-SCP, Senior HR Business Advisor for contributing to this edition of our HR Question of the Week!
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We’ve all been hearing the same thing: we’re in the Post-Pandemic War for Talent. Some have called it the Turnover Tsunami or the Great Resignation. No matter what it’s called, the reality remains the same: businesses are in a talent crisis. The Bureau of Labor Statistics reported 9.2 million job openings in May 2021 – yet there are only 1.2 available workers per job opening, according to the US Chamber of Commerce’s Worker Availability Ratio. Add to that, roughly 48% of Americans are considering a role change, with 53% contemplating changing industries altogether. And roughly 50% of employees say the pandemic has led them to question their current career goals.
All of these numbers are startling. For many employers, their best resource for talent is the talent that’s already on the team, which makes employee retention more important now than ever. But what are employers actively doing to keep them? While managers may say, “fine, let them go,” the reality is it may be extremely difficult to replace them.
The good news is there are actions that can be taken to improve employee retention. It takes some effort, but in the current climate, businesses can’t afford not to.
A first step to winning the “war for talent” is to lose the intention to return to pre-pandemic business. The workforce has drastically changed since March 2020. Organizations that automatically return to what was “status quo” may find themselves receiving pushback from employees who have enjoyed some elements of COVID work life.
The pandemic forced many businesses into a remote work environment. As the duration of the pandemic continued, employees and leaders had mixed feelings about remote work. Some loved it, while others longed to be back in the office. Many felt the biggest casualties of remote work were communication, collaboration, and relationships. Despite claims of increased productivity thanks to fewer interruptions, the impromptu chats and meetings fell off, eliminating the opportunity to communicate casually, collaborate creatively, and build relationships. So, where do employers go from here?
The Great Debate: Office vs. Remote
Employers who never offered remote work may experience struggles and pushback with deciding what the post-pandemic workplace looks like. A recent Korn Ferry survey found that nearly half of workers would turn down work if it mandated an in-person office presence. For employers, it’s important to be intentional in this decision as it can have a direct impact on employee retention and your ability to attract new talent. Just because in-person was the work norm pre-pandemic, does not mean that it’s right for post-pandemic. With the mixed feelings of employees and leaders, employers might consider a hybrid work environment, with some remote time and some in-office time. Many are finding this can serve as a compromise and still be an effective business model. Talk to your employees. What worked, and what didn’t? Employees want to know that their preferences were considered instead of being handed a mandate. Where possible, offer tangible business reasons for the decision.
Strategies to Improve Employee Engagement
Whether employers choose to be in-person, remote, or a hybrid of the two, it’s critical to maintain an engaged workforce. This can be more challenging with a remote or hybrid work arrangement, but it’s no less important.
Engagement starts with strong lines of communication. The need for communication is often overlooked or not seen to be of value, but choosing to remain silent can be to the detriment of the organization. Some key pointers to keep in mind:
Share key goals and KPIs with the team, and update status on them regularly. Employers can guide employees’ focus by sharing goals and the progress toward meeting them. All too often, leaders create KPIs and then put them aside until performance review season. By keeping them top of mind and visible, the message is clear: their work is critical to the organizational goals.
Help employees see where they fit into meeting those goals and KPIs. Engagement is achieved when employees understand how what they do impacts the organization. Every employee needs to know how their role contributes to the success of the organization. The quality of their work, the timeliness in which it is completed, even their attitudes in doing the work are all critical components to success. The best way to ensure employees care about their work is to help them see how they fit in.
Don’t underestimate the value of morning huddles. A morning team huddle can be brief – no more than ten or fifteen minutes – but it sets the tone and expectations for the day. A huddle can celebrate accomplishments of the day before, provide updates on open issues, and establish the focus for the day. The time spent can minimize issues later. The key is to make the most of the time and adopt a structure to keep it concise.
Demonstrate transparency. Focus on what is going well and the positive aspects, but don’t gloss over challenges. Honestly communicate issues and concerns and be open to discussing possible solutions. One of the best ways to build engagement is to ask the opinion of those that directly impact the end result.
On an individual basis, set clearly communicated performance expectations, and revisit those often. Managers must provide ongoing feedback to correct and reinforce behaviors. An engaged culture encourages employees to be problem solvers and to take ownership for finding solutions. Use problems and challenges as learning opportunities to demonstrate the troubleshooting thought process to employees. This encourages an environment of constant ongoing learning.
What are your individual employee’s strengths, and how can those be leveraged? This can be a great opportunity to recognize an employee and advance the goals of the business while also impacting employee retention.
Renew Your Focus on Professional Development
Another key contributor to employee engagement is professional development. A recent Bamboo HR survey found that 78% of employers working remotely felt their professional development was negatively affected by COVID, averaging a loss of $9,800 in promotional income. During COVID, many businesses found themselves in survival mode, where professional development was well down in the list of priorities. As we emerge from the pandemic, it is essential that employers return the focus to employee development. If it has lapsed, take the opportunity to restart the conversation with employees – revisit previous career goals. Are these still relevant or do they need to be revised?
Don’t forget that the pandemic work environment may have provided some unique learning opportunities. Are there ways to capitalize on these? A returned focus on professional development shows employees that you are committed to them and their success, and it can contribute to increased employee retention as well.
As the business world looks beyond the pandemic and begins to address the challenges that are being presented, wise leaders will recognize this opportunity to re-evaluate the culture, identify lessons learned, make the most of the talent they already have.
Special thanks to Cathleen Snyder, SPHR, SHRM-SCP, for contributing to this edition of our Emerging Issues in HR!
Would you like to find out how engaged your employees are? Strategic HR can help. We will create a custom survey to mirror your work environment and goals for the business, administer the survey as a neutral third party, and summarize the findings with recommendations for improvement. You can learn more on our employee surveys page or contact us now.
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Change – it impacts us at work and in our personal lives. Sometimes it happens suddenly and swiftly where no pre-planning can occur. We find ourselves scrambling to process what’s happened, what it means, and how it will affect us. We are forced to pivot and determine what to do differently so “the change” becomes the “new normal.” Sometimes change is planned for; individuals and organizations create change to improve something. Whether big or small, planned change is enacted because there is a belief that it will produce a positive outcome. Unfortunately, all too often, individual reactions to change or the level of effort needed for change to be embraced is underestimated or overlooked altogether. Managing change can be difficult!
What is Change Management?
According to the Society of Human Resource Management, change management is “the systematic approach and application of knowledge, tools, and resources to deal with change. It involves defining and adopting corporate strategies, structures, procedures, and technologies to handle changes in external conditions and the business environment.”
There are a variety of models for managing change that can be applied when facing a change initiative. Some models focus on an organizational response to change, while others focus on individuals and how people respond and react to change differently. No matter the model you chose to follow, consider these tools and recommendations to smooth anticipated bumps in the road.
Organizational Response to Change
When change occurs within an organization, it’s not unusual for there to be a decline in performance, morale, or overall productivity. Employees tend to enjoy and expect a certain level of status quo. When a major change is introduced, performance drops as individuals react to the change. Even in the best of circumstances, productivity levels aren’t typically perfect right out of the gate. There may be glitches, unforeseen challenges, and learning curves that must be overcome. It takes time for the organization to adapt to the change.
Adaptation Strategies
What can be done to help an organization ‘adapt’ faster? Research shows that organizations can move from ‘adapting’ to ‘thriving’ quicker if the following occurs:
There is regular communication and understanding of the changes occurring and desired outcomes & benefits.
Managers are working closely with their teams and aiding throughout the change process.
There is a focus on employee training and development; individuals are provided with the tools, knowledge, and materials to operate in the new environment.
Individuals are given time to work through the emotional ‘roller-coaster’ that can be part of a major change.
Leadership’s Responsibility When Managing Change
According to a study conducted by the Center for Creative Leadership, they identified 9 critical leadership competencies of successful change efforts and change-capable leaders, later divided into “the 3 C’s of Change.”
Communicate: including the “why” behind the change, rather than focusing only on “what” is changing, creates stronger buy-in and urgency for the change.
Collaboration: leaders can increase their employees’ interest and investment in the change by including them in the decision-making process early on.
Commit: Change can be scary but waffling back and forth on change can intimidate and confuse employees even more. By remaining resilient and dedicating themselves to change, leaders found themselves more successful during the adaptation process.
Individual Response to Change
Charlie Baker, former Vice President at Honda R&D Americas, described how individuals experience change is similar to how people experience grieving. Many are familiar with Elizabeth Kubler Ross’s stages of grief: denial, anger, bargaining, depression, and acceptance. For anyone who has gone through grief, most will tell you it’s not a linear process. The same concept applies to the change curve, which includes: denial, resistance, commitment, exploration, and commitment. For some, it may be a quick process; for others, they may linger in one stage longer than another. It’s also possible for some to travel backward through the curve if the change isn’t managed well.
Strategies to Move Toward Acceptance
What can be done to help move people to the acceptance stage of change? There are multiple activities to consider:
If employees are in the Denial phase, supervisors should be in information mode – providing as much information as possible about the change and communicate a clear business case for why change is occurring. Management needs to “own” the change themselves and reinforce the company’s (or their own) vision for the change.
In the Resistance phase, supervisors should be in empathy mode. To help their employees overcome resistance, supervisors need to be active listeners while allowing employees to express their feelings and thoughts and acknowledge/normalize them.
In the Exploration phase, supervisors should be in facilitation mode. Employees need to see some specific, concrete changes – particularly those that will affect them. This may include providing new organizational charts, new tools, new metrics, or setting short-term goals to allow employees to practice operating under the changed environment and seeing immediate results & benefits. It’s important for supervisors to provide support and clear direction so employees understand what is expected of them in the future. Training, as needed, is most applicable in this phase since employees are over denial and resistance and can concentrate on learning new things.
In the Commitment phase, employees have overcome most of the obstacles and supervisors should begin setting longer-term goals. Employees should continue to be provided with support and encouragement, but supervisors should continue to eliminate barriers and opportunities for learning. It’s important to promote and celebrate the successes that have been achieved, as well as identify and communicate any additional benefits that were not anticipated.
Throughout the change process, supervisors should be doing their best to actively support their employees in potentially difficult times. It’s also important to reinforce the “what’s in it for me” – the benefits of the change for the employees, as well as to the team and organization.
Effectively dealing with change is a critical skill area for all employees at all levels – whether you are an employee who needs to embrace change, a manager who needs to embrace and manage change, or a leader who must embrace, manage, and lead change! Having a better understanding of the challenges and using a variety of strategies to address them can greatly improve your success at managing change in your organization.
Special thanks to Terry Salo, Senior HR Consultant with Strategic HR for contributing to this edition of Emerging Issues in HR.
Now more than ever, managing change in your organization requires a coordinated, strategic approach. Strategic HR can help with your leadership and HR strategy through organizational changes – no matter how big or small. For more information, please visit our HR Strategypage, or simply contact us today!
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I’ve been asked to look into how we can use bonus grants as part of our retention strategy. Can you help?
HR Answer:
Changes in the economy – as well as clashing generations in the workforce – have altered the employment landscape. Gone are the days of someone retiring after 40 years with the same company. Job hopping has become the norm, and in the war for talent, top performers are regularly being courted by the competition.
Organizations need to implement new and creative ways to keep their key employees – and keep them happy. While salaries are generally staying level, more employers are focusing on bonuses as a way of rewarding employees. But traditional bonus programs may not be good enough anymore. Enter: The bonus grant.
Bonus grants are different than conventional bonuses in that they are a commitment that the company makes to key employees. Instead of earning raises and/or bonuses that are paid out annually, key employees accrue larger bonuses over a longer period of time. The company also has the option of tailoring the program to the individual employee to provide the most appropriate benefit.
While there are many advantages associated with implementing a bonus grant program, the following are the three most significant:
Retention
Most bonus programs are paid in the year they are earned. While this may immediately inspire feelings of gratitude and loyalty, the effect quickly wears off. With bonus grants, key employees are credited a certain bonus amount each year, but they are not fully vested until a specific date determined by the employer (usually 5-10 years). This is a terrific way to help ensure retention because if an employee leaves the company, they are walking away from the bonus account that was set up for them.
Flexibility
Unlike salary raises that commit employers to funds that they may not be able to spare in the future, bonus grants provide companies the flexibility to determine how much – if any – money is given to a specific employee based on their individual performance, as well as the company’s performance that year. Employers can set a different percentage or flat rate for each employee in the program, and these numbers can vary from year to year at the employer’s discretion.
Simplicity
There are different types of retention tools and tactics in the marketplace, but most are complicated and difficult to understand – for both employers and employees. A bonus grant program can be very straightforward. By keeping it simple, key employees will easily understand the value of the benefit being offered, and the company leadership will understand what they are committing to.
Is a bonus grant program right for your company?
Here are some questions to ask when deciding whether a bonus plan is right for your company:
Are you having issues recruiting and retaining key employees, or competing with larger companies for employees at the executive level?
Do you wish to provide specialized forms of compensation to key executives or employees in lieu of making them partners or part owners in the business?
Is your ability to offer a more robust benefits package to high-performing employees hindered by your business’ lack of free cash flow?
If you answered “yes” to any of these questions, a bonus grant program is worth exploring.
Thank you to our CSH colleagues, Bill Edwards and Lance Drummond, for contributing to this HR Question of the Week.
There is some strategic planning involved in setting up a bonus grant program, but our skilled colleagues at Clark Schaefer Hackett can help your organization set up and administer one. If you’re looking for a creative way to hold onto your best employees, a bonus grant program may be something that sets your company apart from the competition. For more information, please contact us.
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We have employees who occasionally have to travel from one of our offices to another during their work day. Are we required to pay them for their travel time?
Answer:
This is a very common situation, and the quick answer is it depends. Exempt employees generally are not entitled to additional compensation for travel time, so when evaluating whether or not to compensate for travel time you should focus only on your non-exempt staff. Work-related travel time NOT connected to the employee’s regular commute to and from work should generally be compensated and count toward an employee’s hours worked for the purposes of calculating overtime.
You should also have your travel time pay practices and policies reviewed by your legal counsel for the states and localities in which your employees are working to ensure compliance with applicable laws, and to ensure that your policies and practices are appropriate to your particular situation.
If an employee is commuting from home to their usual work site, it is not counted as compensable work hours; however, non-exempt employees who travel as part of their principal working duties should be compensated. Examples might include an office administrator traveling between multiple offices for meetings or a repairman going from one assignment to the next.
Another example of compensable travel time is if the employee is traveling from home to a non-typical work location and back home in the same day. The amount of time that the employee spends traveling to and from the non-typical work location that exceeds the employee’s normal commute is considered compensable travel time.
Generally, employees should be compensated for all time spent traveling during regular business hours.
Please bear in mind that laws exist in numerous states that provide expanded definitions of travel time or impose additional requirements for travel time pay. The Fair Labor Standards Act (FLSA) addresses this issue specifically in Section 29 CFR § 785.38 (Portal-to-Portal Act).
Strategic HR knows that keeping abreast of HR Compliance issues can be daunting, especially when the laws keep changing. We can help you stay compliant by fielding your questions and offering resources to help you identify and mitigate compliance issues. Visit our HR Compliance and Recordkeeping page to learn about our auditing services which can help you identify trouble spots in your HR function.
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This week a hiring manager was excited about a candidate but learned during an interview that the candidate has had a Felony for theft. The candidate mentioned having an Ohio Certificate of Qualification for Employment that they could provide. Although we are not a bank and the role does not handle money, we need to make sure our organization will not be put at risk by making a careless hire. Alternatively, we do not want to be discriminatory or lose an otherwise qualified individual that could make a great fit for the role. So what is a Certificate of Qualification of Employment and how can it help our company?
HR Answer:
Ohio law provides for a certificate to be available that removes criminal-record-based barriers to employment, without erasing or hiding the criminal record itself. The “Certificate of Qualification for Employment” (CQE) will allow persons who have a previous felony or misdemeanor conviction to apply to the court to lift the collateral sanction that bars them from being considered for employment in a particular field. A CQE is only given if an individual has been through an extensive application and investigation process and deemed, by both the Department of Rehabilitation and Corrections (DRC) and the Court, to be rehabilitated. A Certificate of Qualification for Employment may be revoked if the offender is convicted of or pleads guilty to a felony offense committed subsequent to the issuance of the certificate.
Employer Benefits of a Certificate of Qualification for Employment
A CQE can benefit an employer by removing mandatory rules that prohibit licensure or employment of individuals with certain criminal records. The Certificate may be used for general employment opportunities as well. If an employer knowingly hires a CQE holder, the Certificate offers the employer legal protection from a potential negligent-hiring lawsuit. (However, if the employer fails to take action if dangerous or criminal behavior is exhibited after hiring and retains the employee after such behavior, the employer can then be held liable.)
The Ohio Department of Rehabilitation and Correction provides information to learn more about the certificate and a link where you can assure the authenticity of a CQE. You can also contact The Ohio Justice and Policy Center or directly review Ohio Revised Code 2953.25.
Banning the Box
There are many states and cities with laws making it illegal to exclude an otherwise qualified applicant who has had a misdemeanor or felony. At least 16 states have already passed legislation, “banning the box”, which prevents employers from inquiring about a criminal background at initial application. Federal EEO laws, including Title VII of the Civil Rights Act of 1964, prohibit employers from discrimination by using criminal history information in their employment decisions because they can significantly disadvantage protected individuals such as African Americans and Hispanics.
The EEOC also has written the following guidance you may refer to:
This candidate’s Certificate of Qualification for Employment could prove to be a win-win. An applicant who has the qualifications you need and is looking for that long-deserved break may prove to be one of your most grateful and loyal employees if given the opportunity. Remember whether hiring or declining, before making a potentially costly decision, it is important to educate yourself on related federal, state, and local laws and/or seek legal counsel.
Struggling with hiring the right person and figuring out how and where to find candidates? Wondering how to do drug screens, background checks, physicals, references, and assessments? We can help you make sense of it all. Whether you need a complete recruitment solution or just help with pieces of the process, Strategic HR can assist you. Visit our Recruitment page to learn how we can provide you with top-notch outsourced recruitment solutions.
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HR Question:
