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What Are The Top 5 Commonly Missed Records In Employee Files?
For human resources professionals, there are many things you simply have to get right in order to protect your organization, and recordkeeping is one of them. Employee files, also known as personnel files, are a key component of the recordkeeping process for any organization. They provide a written history of each employee’s tenure with an organization including important information such as pay increases, promotions, disciplinary action, etc. Additionally, there are several documents that are required to maintain HR compliance at the federal level in the United States. For example, check out the U.S. Department of Labor’s reference for federally required new employee documentation.
These documents and comprehensive files can be maintained physically on paper or digitally ideally using a defined data storage strategy supported by an organization’s IT department. Many employers utilize the U.S. Department of Labor’s digital data storage guidelines when developing a digital data storage strategy.
5 Most Commonly Missed Records in Employee Files
Out of all the documents required to be maintained in employee files, below are the five most commonly missed. Do you have these records in your employee files?
1. Pre-Hire Documents
Pre-hire documents include the employee’s resume and application, the signed offer letter or employment contract, a signed handbook acknowledgment, tax withholding forms, a signed code of conduct, and emergency contact information.
2. Wage and Salary Information
Wage and salary information include any increases given (e.g., merit, cost-of-living adjustment (COLA), or promotion-related increases), bonus information, and significant changes to an employee’s position relative to the Fair Labor Standards Act (FLSA) exemption status.
3. Performance Reviews
The performance review documentation that should be stored within an employee file may be a 30 or 90-day review or a signed copy of the employee’s quarterly/semi-annual/annual review. Follow your organization’s timeline and policies for performance reviews and ensure these are added to all employee files.
4. Disciplinary Action
Disciplinary action forms and performance improvement plans (PIPs) are key to maintaining a comprehensive and documented narrative for the employee’s performance. If for any reason an employee is terminated, it can provide information with the potential to protect an organization from litigation. Learn more about at-will employment termination risks and how to reduce your liability.
5. Training and Development
Training and Development documentation can include training plans or checklists, verification of federal or state-required training, as well as the employee’s attained certifications, degrees, and licenses.
How to Properly Store Employee Records
It’s important to understand and follow proper employee record storage procedures. For example, did you know it is recommended that the I-9 Form be stored separately from the employee files? According to the U.S. Citizenship and Immigration Services, I-9 Forms should be stored in a way that best fits your organization, yet is easily available for USCIS inspection. As a result, best practice leads to storing I-9s separately from other files.
Although there is some leeway with employee record storage, best practice is to maintain the following five separate sets of files:
- Employee/Personnel
- Medical
- Confidential – Non-Medical
- Form I-9
- Candidates Not Hired
For more on what should be included in each of these files, read our article explaining how to organize employee records and remain compliant.
Regardless of the storage process you choose, be sure to audit your employee files to ensure compliance. We recommend creating an employee file document list for new hires and ongoing employment by reviewing federal and state requirements, record retention guidelines (which can vary for federal contractors), benefit documentation, and organization-specific documents. This will provide a starting point to validate that your organization’s current files aren’t missing any key forms.
Thank you to Mary Mitchell, MBA, SPHR, SHRM-SCP, CHRS, Senior HR Business Advisor for contributing to this Emerging Issues in HR.
Keep the guesswork out of how to store and maintain your employee files. Strategic HR has a handy Recordkeeping Desktop Reference that outlines the employee documents you should have on file and how long to keep them. Learn more about our HR Compliance & Recordkeeping Services or Contact Us for help!
Marijuana in the Workplace
HR Question:
Now that Issue 2, legalizing recreational marijuana in Ohio, has passed, what does it mean for my employment policies? Does this mean my drug-free workplace policies are no longer valid? How should I navigate marijuana in the workplace?
HR Answer:
Medical marijuana was legalized in Ohio in September 2016, and retail sales began in January 2019, when the first four licensed dispensaries opened for business. On December 7, 2023, Issue 2, decriminalizing non-medical marijuana use, will go into effect – opening the door for adults 21 and over to legally possess, purchase, and share up to 2.5 ounces of cannabis. As reported by WCPO, the law isn’t without its limits, however, as it prohibits:
- Using marijuana in public
- Operating a vehicle while under the influence of marijuana
- Being a passenger in a vehicle and using marijuana at the same time
Additionally, landlords and employers can still prohibit marijuana use based on their policies. So, what do employers need to consider as they navigate this new law?
Considerations for Recreational Marijuana in the Workplace
First and foremost, it’s up to the organization to decide if the use of the drug will be tolerated or affect current drug testing policies. The employer would potentially need to reevaluate, for example, whether or not there is an acceptable amount of marijuana that could be found in someone’s drug test, and how that amount may impact the decision of whether or not to terminate an employee (or not to hire). Additionally, it’s necessary to consider how to ensure current employees aren’t using marijuana at work or before they come in.
Depending on how your organization wants to proceed, there are a few paths to take:
- You could choose to eliminate confusion and maintain (or start) a zero-tolerance drug-free workplace. The drawback here is that you could have a harder time finding applicants for job openings. If that’s the case, you could remove or modify any existing testing policies to eliminate cannabis, much like many employers don’t test for alcohol.
- If you open up your organization’s policies to permit legal marijuana use, one option is to shift the focus from testing what’s in someone’s system, which may linger for weeks after the fact, and instead come up with a new standard aimed at determining whether an employee is actually impaired. Some employers have begun to implement alertness assessments such as AlertMeter, which allows employers to test someone’s cognitive function that day. Of course, this would require training your leaders and managers and communicating expectations across the board to all employees.
Considerations for Medical Marijuana in the Workplace
What about medical marijuana? In outlining employers’ rights, Ohio’s Revised Code 3796.28 states that an employee has no specific protections, which could be interpreted that you do not have to accommodate an employee’s need to use the substance. An employer has the right to not hire an employee based on medical marijuana use, possession, or distribution. At this time, the law does not allow a cause of action against an employer if an employee believes he or she was discriminated against due to medical marijuana use. An employer is allowed to have a zero-tolerance drug-free policy in place, with or without special accommodations for those who use medical marijuana.
The Bottom Line
No, this does not mean your drug-free workplace policies are no longer valid. But what this does mean is that this is a key opportunity to review any drug-related policies to make sure they are up-to-date, accurate, and reflect the needs of your organization. And, as always, consult your legal counsel to ensure that you’re avoiding discriminatory actions and complying with federal, state, and local laws. If you make any changes, be sure to distribute and explain the policy and have employees sign off on the acknowledgment.
Thank you to Alisa Fedders, MA, SPHR, and Samantha Kelly for contributing to this edition of our HR Question of the Week.
Do you struggle with doing what is right for your company and right for your employees when it comes to creating a Drug-Free Workplace? Sometimes the “right” solution isn’t always easily identified. Strategic HR understands your dilemma of being between a rock and a hard place. We can provide you with best practices, policies, and training when it comes to creating a Drug-Free Workplace or any needs concerning the health and well-being of your workforce. Please visit our Health, Safety, & Security page for more information on any of these services.
What Are the Latest ACA Reporting Changes and Deadlines?
HR Question:
I know it’s almost time for the next ACA reporting period. What changes do I need to be aware of for the 2023 tax year?
HR Answer:
You’re right – the ACA (or Affordable Care Act) reporting season is right around the corner! While there are no major changes to the ACA forms and codes for the 2023 tax year, there are some items or updates to be aware of as we head into 2023. If you’re unsure whether you need to report, check out our article on ACA reporting requirements.
Paper Filing Deadlines
The employee distribution deadline for the 1095-C forms is March 4, 2024. In previous years, employers could file their 1095-C and 1094-C forms in paper format to the IRS by mail as long as they did not exceed 250 forms in total. Moving forward to this coming reporting year, the IRS is requiring all employers with more than 10 forms to report through electronic methods. This could be either directly through the IRS’s system or through a third-party provider set up to send to the IRS’s system (such as many HRIS providers). Any corrected forms would also be required to be submitted electronically. If there are less than 10 forms, the paper filing deadline will be on February 28, 2024.
If the employer’s coverage is not affordable under one of the safe harbors and a full-time employee is approved for a premium tax credit for marketplace coverage, the employer may be subject to an employer shared responsibility payment under Section 4980H(a) or Section 4980H(b).
E-Filing Deadlines
The deadline for e-Filing 1095-C and 1094-C forms to the IRS is April 1, 2024 (since March 31st falls on a Sunday). Keep in mind that there could be additional ACA state reporting requirements for your organization with differing deadlines. The states to pay special attention to are California, New Jersey, Massachusetts, Rhode Island, and the District of Columbia.
Be aware of the full list of form types that are required to be sent to the IRS electronically based on the total number of forms submitted.
• Forms 1042–S
• 1094-series
• 1095–B and 1095–C
• 1097-BTC
• 1098, 1098-C, 1098–E, 1098-Q, and 1098–T
• All 1099 series
• Forms 3921 and 3922
• 5498-series
• 8027
• W–2G
• Forms W–2 (Wage and Tax Statement)
• U.S. Territory Forms 499R–2/W–2PR (Withholding Statement (Puerto Rico)
• U.S. Territory Form W–2VI (Virgin Islands Wage and Tax Statement)
There have always been fines attached to late filing with all of these forms. However, the amount has increased to $290 per W-2 from $250 (even if they are mailed in paper format and should have been sent electronically).
Updated Affordability Percentage and Penalties
For the 2023 tax year, the affordability percentage – the maximum amount of an employee’s pay that can be spent on “Employee Only” coverage in order to be considered “affordable” by ACA – decreased from 9.61% to 9.12%. Although there are no major changes to the ACA forms and codes for the 2023 tax year, the IRS has updated the ACA affordability percentage to 9.12%.
Additionally, the IRS has declared that the penalty under Section 4980H(a) will increase to $2,880 or $240 per month, and the penalty under Section 4980H(b) will increase to $4,320 or $360 per month. With these increasing costs associated with noncompliance, it’s important for employers to carefully assess their group health plan offerings to make sure they’re aligning with ACA best practices. It is also essential to ensure that these plans provide comprehensive coverage to full-time employees, including at least one affordable self-only option that meets minimum value benefit requirements.
Thank you to Mary Mitchell, MBA, SPHR, SHRM-SCP, Certified Healthcare Reform Specialist, for contributing to this week’s HR Question of the Week.
Whether you’re new or experienced when it comes to ACA reporting, it can be a confusing process. Clark Schaefer Strategic HR are here to help! If you are unsure if your company should be reporting for ACA, we can help assess your employee calculations to determine if it is needed. We also have the ability to check your employee data for compliance and electronically file your company’s ACA forms with the IRS on your behalf. Contact us for your ACA reporting needs.
How To Handle Drug and Alcohol Abuse in the Workplace
HR Question:
I am part of our HR team, and a supervisor approached me because they suspect one of their employees may be drunk or on some type of drug that is inhibiting their performance. We have a policy prohibiting workplace drug and alcohol abuse that allows us to test if we have reasonable suspicion. Is that enough? What should I do?
HR Answer:
First, we recommend that you talk with the supervisor to understand and specifically document the employee’s behavior that’s causing concern. Is it behavior that is not typical (i.e., appearance, odor, etc.)? It is ideal to have two parties observe and document the behaviors to independently confirm reasonable suspicion of drug and alcohol abuse. However, it is not required if you do not have the ability to do this. If you’re able to have two observers, one party is often the supervisor and the other party is typically someone in management or HR.
If the employee has a safety-sensitive job or appears to present a safety concern for others, the manager and/or HR professional may need to remove the employee immediately from their work area. In this case, escort the employee to wait in a safe and private location (i.e., a conference room, an office, etc.) to discuss the concerns and observations.
How to Communicate the Concern
After documenting the employee’s behaviors, it is important to promptly discuss this information with the employee. It’s helpful to approach this type of conversation from a position of care and concern for the employee versus an accusatory approach. The observations should be shared in a fact-based manner. It is not necessary to specify the drug or alcohol you suspect they may have used. Instead, focus on the concern that they appear to be impaired in some way.
The company’s workplace drug and alcohol abuse policy should be reviewed with the employee, and it should be explained that they are being required to be tested as outlined in the policy. It is also important to explain the consequences if they refuse to comply. (And this should be addressed in your policy as well.) If you have any doubt about your policy’s ability to protect your organization or your employees, we recommend having your attorney review it.
Drug and Alcohol Testing
Given the nature of the situation, the employee should not be allowed to drive themselves to the testing facility. Rather, the employee will need to be transported to the drug/alcohol screening facility. It is best practice to have someone in management or HR alert your testing facility of the situation and to transport the employee. Keep in mind, if you use a facility that does not provide instant results, you will also need to transport the employee to their home or ask them to identify someone who can pick them up and take them home.
It is best practice to not have the employee return to work until the test results are available. If you’re wondering how to handle the employee’s pay during this time, you are not obligated to pay an hourly (non-exempt) employee for time missed from work while waiting on the test results. This may not be the case for salary (exempt) employees according to the FLSA.
Negative Test Results
If the test results are negative, the manager or HR professional should contact the employee and advise them they can return to work on their next scheduled day. It’s also best practice to pay employees for time missed from work while waiting on the results.
Positive Test Results
If the test results are positive, you should follow your company’s policy and procedure. This may involve a last-chance agreement, treatment and/or Employee Assistance Program (EAP), or immediate termination if the company has a no-tolerance policy.
Whether the result is positive or negative, the situation must be handled respectfully and professionally. Keep in mind this is an uncomfortable situation for everyone and should be treated with the utmost discretion for all parties involved.
Special thanks to Marie Frey, SHRM-CP, HR Business Advisor for contributing to this HR Question of the Week.
Handling drug and alcohol use in the workplace can be stressful…especially if you don’t have the right policies, procedures, or training. Strategic HR can provide you with best practices, policies, and training when it comes to creating a Drug-Free Workplace or providing an overall safe and healthy work environment. Visit our Health, Safety & Security or Training & Development pages to learn more.
Can I Fire Someone During Their Introductory Period?
HR Question:
Can I fire someone during their introductory period? Are there ways to reduce our risk?
HR Answer:
The short answer can be yes. As long as an employer has a properly written (and implemented) introductory period, there should be little concern over terminating someone during their new hire period. In fact, sometimes it is actually easier to terminate someone during this period of employment. A key component is to ensure that your introductory period policy and practices apply the employment-at-will status, as allowed by your state or locality. In that case, you should be able to rest easy with your decision, although we recommend consulting your attorney if you have any doubts.
On the other hand, if you don’t have a well-designed introductory period, your organization is at higher risk. If you’re unsure about your policy or implementation, read on to learn why introductory periods are important, what to consider in their design, and ways to reduce termination risks.
Why is a new hire introductory period important?
Introductory periods are an important phase of employment as they allow the new hire and employer to evaluate their fit with each other. These programs typically range from the first thirty days of employment up to six months and can be extended, if necessary.
Keep in mind that appropriate design and implementation are critical. According to the Society for Human Resources Management, some labor experts warn of the legal implications of introductory periods (including discouraging the use of the term “probationary period”). However, if implemented properly, employers can use the time to sufficiently train and evaluate the hire.
Setting appropriate expectations
During the introductory period, the employee has the opportunity to learn their role, acquire and demonstrate the skills necessary to perform the duties of the job, and understand how their role fits into the overall organization. Employers typically use this time to evaluate the employee to determine if they are a good fit for the position by reviewing their skills, knowledge, abilities, overall job performance (quantity and quality of work), work habits and behaviors, and attendance.
Although employees in this defined new hire period are essentially the same as all other employees, there are often special requirements placed on the individuals during this evaluation period. For example, some employers put in place stricter attendance requirements during the introductory period, (i.e., requiring new hires to work on-site for a defined period of time before allowing remote work situations). Other employers reduce the productivity requirements for new hires during this period as they are learning their roles.
Whether you are making the expectations more or less strict as compared to other employees, it is important to ensure that new hires are made aware of the expectations and how they will change after the completion of the introductory period.
Reduce termination risk during the new hire introductory period
Termination of employment at any time can be inherently risky. Here are some suggestions to consider that may bolster your new hire period policies and implementation:
- Clearly define the introductory period, including the length of time, and state that it can be extended, if necessary.
- Clearly express employment-at-will, if allowed in your jurisdiction and it applies to your situation. This statement indicates that the employment relationship is terminable at any time, including during the new hire period, and completion of the introductory period does not change that status.
- Provide a clear explanation to the new hire of how they will be evaluated, including specific expectations during the period and if/how these expectations are going to change once the new hire period is successfully completed.
- Evaluate your new hire regularly. Provide frequent and immediate feedback including written evaluations.
- If the new hire is failing to meet expectations, discuss what must be done to achieve acceptable performance as well as the next steps if there is no improvement.
Following these guidelines will help to ensure the new hire is treated fairly during the process. We also recommend that you consult your attorney to be sure that your introductory policies and procedures are optimally designed to mitigate your organization’s risk.
Special thanks to Patti Dunham, MBA, MA, SPHR, SHRM-SCP, for contributing to this edition of our HR Question of the Week.
Terminations are one of the most difficult aspects of Human Resources. Strategic HR can walk you through a termination, assist with the investigation, and provide a third-party objective look at each case. Visit our Employee Relations page to see how we can help you navigate through challenging situations while also building a positive relationship with your employees.
Why Do I Need An Employee Handbook?
HR Question:
Why do I need an Employee Handbook? Are they required?
HR Answer:
While it is not a requirement to have an employee handbook, having one can be an effective tool for you to communicate expectations throughout your organization. The employee handbook can be a quick reference for commonly asked questions such as “When am I eligible for vacation?” or “How do I call in sick?” Beyond communication with employees, a well-crafted employee handbook can provide many benefits to your organization.
Benefits For Employees
Orientation and Onboarding
For new employees, the handbook serves as an important introduction to your company. In addition to explaining work rules and expectations, it introduces new employees to the vision, values, and mission of your organization. An employee handbook can be a roadmap during orientation to help new employees get onboarded more quickly and reduce misunderstandings.
Organizational Culture
Your employee handbook is also an introduction to your company culture. The way that policies are phrased – such as expected working hours and location(s), ways to submit PTO requests or time off, how to communicate family/personal crises should they come up, etc. – can speak to your organization’s flexibility, inclusiveness, open-mindedness, or work-life balance expectations. Drafting policies that promote and reward desired behaviors (and perhaps, even explain the reasons behind them) can help nurture a healthy workplace culture.
Benefits For Employers
Protection for Employers
The employee handbook serves as a legal statement of policy on behalf of the employer. When signed by both the employee and employer, it can stand as evidence that not only were expectations communicated, but they were also agreed to as a requirement of working within the organization. For example, including anti-discrimination and anti-harassment policies, as well as bystander reporting requirements and complaint filing procedures, can provide guidance and protection for both employees and the employer should difficult situations arise.
An employee handbook can also clearly communicate the organization’s right to end employment based on performance, reorganization, financial downturn, or any other reason (commonly known as an “employment-at-will” statement). Without this, an employee may claim that an employment contract was made through other means of communication. Having a clear at-will-employment statement in the handbook may provide some protection from these types of claims.
It is critical for your handbook to be constructed properly for it to provide protection versus risk. Therefore, we highly recommend having your legal counsel review your handbook to ensure that it provides optimal protection for your organization.
HR Compliance
Your employee handbook can be used to meet the requirements of federal, state, and local laws. For example, federal law requires employers who are covered by the Family Medical Leave Act (FMLA) to inform employees of their FMLA rights. If FMLA applies to your organization, an employee handbook provides an opportunity to inform employees of their rights, your internal processes, and answer any frequently asked questions that come up when addressing FMLA needs.
In addition, businesses that have employees across states, cities, and towns may have to comply with the laws in those work locations. Creating state handbook policy addendums for different states or jurisdictions can help the organization in communicating these requirements.
Consistency in Work Rules
An employee handbook formalizes the company’s policies on workplace matters, ideally encouraging a fair and consistent workplace. Managers can refer back to the handbook as a guide when it comes to discipline, internal processes, expectations, or review policies to ensure consistent treatment for each employee.
Including policies such as a progressive disciplinary policy can inform managers and employees of the company’s expectations on how disciplinary issues will be handled, providing a sense of trust and reducing confusion in challenging situations.
Additional Considerations
Evaluating Policies and Communicating Changes
Maintaining company policies in an employee handbook provides an opportunity to examine your policies for contradictory, illegal, or outdated rules. Annual revisions to your handbook will encourage you to identify policy changes that should be made based on company goals, new laws, court rulings, and industry standards.
As with any HR policy revision, it is important to communicate the changes to employees. As a best practice, many organizations require employee signatures verifying that they have received the revised handbook.
Yes – Your Handbook Can Be Used Against You
An employee handbook is significant for what it includes, as well as what it does not include. It should provide policy direction, flexibility when necessary, and a clear outline of practices that your organization can follow consistently.
It is also essential not to include things in the handbook that you are NOT doing. For example, if your handbook indicates that you plan to review employee performance every year, but you haven’t reviewed anyone in over five years, then it would be important to review and revise that statement to reflect the practices you actually follow.
Ensure Your Handbook Is Customized For YOU
Be cautious of handbook templates or copying another organization’s handbook. Avoid including policies that do not apply to your company such as policies for companies with over 50 employees because you think you might be over 50 employees within the next 3 years. Also, make sure you have your attorney review your handbook to ensure they are comfortable defending you, should something ever go to court, based on what is written in the handbook.
Wondering if you’re up to date on policy trends? Learn more about the Top Employee Handbook Policies to Include this Year.
Thank you to Colleen Mahoney, PHR, HR Business Advisor, for contributing to this week’s HR Question of the Week.
Don’t have a handbook and not sure where to begin? Concerned that your current handbook is outdated? Don’t worry. Clark Schaefer Strategic HR can help you to create or revise your handbook to ensure that it serves as a meaningful communication tool helping to protect your employees and your business. To learn more, request a free handbook consultation today.
How do I manage compensation increases with inflation?
HR Question:
How do I best manage compensation increases with inflation still rising?
HR Answer:
This is a question many companies continue to wrestle with as the US economy experiences rising inflation. According to the Bureau of Labor Statistics (BLS), the consumer price index (CPI) reached its highest annual increase (8.6%) in over 40 years in May 2022, and we continue to watch the CPI on the rise. These increased daily costs put significant pressure on employees to stretch their income further, which in turn, puts pressure on employers to increase wages to cover the gap.
Employers also need to consider other factors when assessing pay strategies, such as the state of the labor market. With employment rates at record lows, it can be harder to find and attract qualified candidates, making salary a sticking point in many employment conversations.
What does this mean for organizations as they try to meet the needs of employees and remain competitive in the market? How are they supposed to be competitive when navigating rising costs across the board? What if salaries have already increased – should they be expected to continue to climb so soon? We recommend the following considerations to help manage your compensation increases amidst inflation and a tight labor market.
Keep Inflation In Mind When Strategizing
With these external influences, HR leaders need an effective rewards strategy that retains current high performers, attracts top candidates, evaluates business costs, and is applied equitably. Easy, right? Not only that, but the approach should align with organizational strategy, have market-based salary data, include review processes, and consider non-monetary compensation. Then, that complex plan should be communicated throughout the organization.
This presents an opportunity to ensure that your annual compensation review process includes an assessment of how the cost of living impacts your pay strategy. Consider adding inflation into your review model utilizing data from the Department of Labor and additional government agencies, along with the criteria you use to determine annual pay increases. While you don’t have to directly increase your salary rates in step with the inflation percentage, not doing so may put your organization at a competitive disadvantage in the candidate market.
Salary Benchmarking
Rather than relying on inflation to exclusively guide your salary increases, consider utilizing salary benchmarking tools for each role in your company. This is also a great opportunity to weave in any feedback you’ve learned from job candidates, stay interviews, or exit interviews. The compensation review process could then use current market-based salary ranges to recommend increases.
And, while it makes sense to consider what’s happening in the economy, an increase in the cost of living may or may not lead to a proportional pay increase. Although prices may be going up, it doesn’t mean that compensation market data has moved at the same rate as inflation. For example, if the CPI has increased by 8%, salaries may have increased by less than 8% or more than 8% in the market. This is why conducting salary benchmarking is crucial for each position.
Benchmarking against what other organizations are planning for salary increases can help give a sense of perspective as well. According to a recent survey conducted by WorldatWork, increases in 2024 are budgeted for 4%. You may want to review several resources to compare compensation data across your industry for a reasonable comparison.
Non-Monetary Compensation
Take-home pay is the predominant concern when inflation hits, but other variables can still be vitally important to employees. Evaluate benefits and non-monetary rewards offered and consider additional low-cost options.
For example, are there ways to enhance health benefit subsidies, HSA contributions, flexibility, paid time-off, retirement contributions, tuition reimbursement, etc.? Providing more generous offerings in this category could help ease the impact of inflation without necessarily increasing your immediate costs.
Communication and Transparency
Before finalizing compensation increases, collaborate with other leaders to determine the overall economic impacts on the organization. Perhaps additional revenue streams or other increased costs may impact the feasibility of compensation increases either way.
Once decisions have been made, effectively communicating with employees is crucial. Tailor the message based on the employee’s perspective and make sure to be transparent and empathetic while explaining the reality of what is and isn’t possible. Doing this authentically will help people feel valued.
Compensation analysis is an ongoing process, and HR Leaders should consistently evaluate the organizational strategy and market data to stay competitive. With a robust strategy, sound framework, and effective communication, any factor can be considered and incorporated appropriately.
Thank you to Becky Foster, Sr. HR Business Strategist, for contributing to this HR Question of the Week.
Let the HR Business Advisors at Strategic HR review your strategy and conduct a compensation market analysis to make sure you’re not missing any opportunities to have a rewards strategy that attracts, retains, and engages your team. Learn more about our Benefits and Compensation Services or Contact Us for help.
Why Is Harassment Training Important?
HR Question:
Do I really need to provide harassment training? Isn’t having an anti-harassment policy sufficient?
HR Answer:
While it’s definitely a great place to start, having an anti-harassment policy isn’t enough. It’s crucial to ensure that your entire team is on the same page when it comes to definitions, expectations, and consequences surrounding harassment in the workplace. Because harassment can look and feel differently depending on the situation and the context, you want to leave no room for misunderstandings or confusion – especially when trying to create a psychologically safe work environment.
Three Reasons Why You Need Harassment Training
1. It promotes and fosters a positive, inclusive, and diverse work environment. Harassment training helps to create a workplace culture that values respect, dignity, and inclusivity. It raises awareness about inappropriate behavior and ensures that employees have an understanding of the importance of treating their colleagues with respect. It eliminates confusion, helps educate and share perspectives that employees may not have experienced or had access to, and helps raise the value of all experiences in the workplace.
2. It can mitigate legal issues. Providing harassment training allows organizations to educate their employees about their rights and responsibilities in relation to harassment laws. This also provides an opportunity for everyone in the organization to have clear outlines of what is not acceptable. It’s part of the employer’s responsibility to create a safe workplace for their employees, and this is just one of many steps in doing so.
3. It can protect employees and promote a psychologically safe work environment. Harassment can have severe emotional, psychological, and even physical effects on individuals. By providing regular harassment training, organizations can aim to protect their employees from experiencing or witnessing such behavior by clearly outlining actions that are unacceptable in the workplace. Training provides employees with the knowledge and tools needed to identify, report, and address harassment more effectively and in a timely manner.
Keep the Training Going!
Between the 2018 and 2021 fiscal years, the Equal Employment Opportunity Commission (EEOC) received a total of 98,411 charges alleging harassment under any basis and 27,291 charges alleging sexual harassment. Since an employer can be held legally responsible for the actions of their employees, it stands to reason that every effort should be made to regularly remind employees of the expectations of their behavior, rather than assuming the training can be a “one and done” scenario.
So how can organizations continue the thread of anti-harassment throughout their organization?
- Start at the beginning of the employee life cycle. Include training on the types of harassment, the consequences of engaging in harassment, and the steps to prevent harassment to get new employees started off on the right foot, ensuring that they are familiar with what personal conduct will and will not be accepted in the workplace.
- Make sure you regularly repeat the training. Many organizations conduct annual education/training sessions that include harassment as part of the training. This is a great opportunity to refresh your employees’ knowledge of the subject matter and to further emphasize the company’s no-tolerance policy with regard to harassment.
- Be sure to review your anti-harassment policy regularly. Remember, the policy is still a great tool in your anti-harassment toolbelt. If you’re not sure where to start, the Society for Human Resource Management provides five ways to update and upgrade your current policy to make sure it’s in line with best practices.
Keep in mind, while federal law advises periodic harassment training, some states may require such training. For example, in California, employers with 50+ employees must provide two hours of sexual harassment training for supervisors every two years. Be aware of the specific requirements of your state or locale when it comes to harassment education for your employees.
Special thanks to Julie Schroer, SHRM-CP, for contributing to this edition of our HR Question of the Week!
Are you overdue on harassment or other annual training? Does your current training curriculum need to be refreshed to reflect changes in company policy or legal requirements? Strategic HR has the expertise and resources to help. Visit our Training & Development page to learn more.
Do I Need a Heat Safety Plan? How Do I Build One?
HR Question:
As an employer, I understand it’s my responsibility to take precautions when employees work outside in the heat. Additionally, I learned that OSHA is now conducting Heat Safety Inspections. Do I need a heat safety plan? If so, how do I build one?
HR Answer:
As summer heats up and the temperatures rise above 80°F, so too will heat-related illnesses. Employers should be aware that OSHA places a duty on employers to protect employees from occupational heat-related illnesses both indoors and outdoors. SHRM reports that employers should prepare for an increase in heat-related workplace inspections by OSHA especially as the heat index rises!
Despite being commonly underreported, the Bureau of Labor Statistics found that since 2011 there have been 436 work-related deaths caused by environmental heat exposure. The death of postal worker Peggy Frank from heat stroke in her mail truck led to legislation that require all postal vehicles to be modified to include air conditioning within three years. In 2021, OSHA announced an enforcement initiative on heat-related hazards, developing a National Emphasis Program on heat inspections, and launching a rulemaking process to develop a workplace heat standard.
Starting a Heat Safety Plan
A job safety analysis will provide a better understanding of the heat risks that your employees experience. Positions commonly at risk for heat-related occupational illness are workers in agriculture, construction, landscaping, and mail and package delivery. Indoor environments such as manufacturing plants and distribution centers can create high-heat environments, which through ambient heat and protective clothing can be just as dangerous as the outdoors. When building your heat safety plan, be particularly mindful of the dangers involved with physically demanding positions and positions requiring bulky equipment or gear in high heat.
Monitor The Heat
When the heat index reaches 80°F or higher, serious occupational heat-related illnesses and injuries increase. This is especially true when employees are not yet acclimatized to the heat, performing strenuous work in direct sunlight, or in radiant heat without frequent access to cool water and shade. Monitor ambient temperatures and prepare for high heat events to ensure adequate measures are taken to protect employee health. Businesses with high-heat environments should establish a heat alert program so adjustments can be made to the physical demands of employees working in high heat. Businesses may consider scheduling hot jobs for cooler parts of the day or planning scheduled maintenance or repair work for cooler seasons.
Evaluate Your Tools
Once there is a thorough understanding of the organization’s heat safety risks, evaluate environmental controls such as air conditioning, fans, heat shields, ventilation, or other ways of reducing radiant heat sources. Investments made in improving employee working conditions will improve productivity and provide a boost to morale. Employers can continue to reduce the risk of occupational heat illnesses by providing frequent breaks, and shaded cooling stations with ample cool water that is easily accessible to workers. Establishing a regular schedule of rest and hydration breaks will promote a culture of well-being where employee health and safety are the top priority.
Pay close attention to new hires in high-heat environments as they have not had an opportunity to acclimate to the environment. Provide even more frequent breaks to new employees and ease them into the physical demands. Providing body cooling and protective clothing such as cooling vests can help reduce the impact of the heat on the employee’s health.
Train Your Managers / Supervisors and Employees
Train employees and managers on heat safety to ensure that everyone knows the signs and symptoms of heat stress and is trained on heat-related illness first aid. OSHA fined a Florida-based employer heavily for exposing workers to hazards related to high ambient heat without adequately training someone to perform first aid and ensure they were available to render assistance in heat-related emergencies. Training is key to ensuring employees are educated on heat-related hazards to manage their exposure, take breaks, stay hydrated, and monitor signs of heat stress. Managers need to be trained on heat-related hazards, safety protocols to reduce heat-related illnesses, and how to obtain first aid for any employee suffering from heat-related illness.
Employers can consult the Criteria for a Recommended Standard: Occupational Exposure to Heat and Hot Environments for more recommendations on how to build a heat safety program and keep employees safe from heat-related illnesses.
Special thanks to Colleen Mahoney, PHR, for contributing to this edition of our HR Question of the Week!
Have you had a safety audit recently? Do you know which OSHA forms you are required to complete? A safe environment plays a key role in keeping a company Healthy, Safe, and Secure. Strategic HR has the expertise you need to ensure your policies and practices are keeping your workers, and customers, safe. Visit our Health, Safety, and Security page to learn more about how we can assist you.
What Do I Do Now That I-9 Flexibilities Are Ending?
HR Question:
In July 2023, the Department of US Citizenship and Immigration Services eliminated the Form I-9 flexibilities put into place due to COVID-19. Recently, I understand they are again allowing the remote review of I-9 documents. Is this accurate?
HR Answer:
Yes, you’re correct – the US Citizenship and Immigration Services (USCIS) confirmed that the temporary flexibilities for verifying documents for I-9 forms expired on July 31, 2023. Any remote team members hired during the COVID-19 pandemic (on or after March 20, 2020) whose I-9 documents were verified remotely, had to have their documents physically inspected. That verification was required to be completed by August 30, 2023.
While we all scrambled to update these documents, USCIS came out with additional guidance on July 25, 2023, that provided an alternative procedure for Form I-9. The Notice indicated that employers who meet the following four (4) requirements may choose an alternative procedure in lieu of physically examining Form I-9 documentation that had been examined remotely under the COVID-19 flexibilities.
To qualify for the alternative procedure, an employer must have:
- Performed remote examination of an employee’s documents between March 20, 2020, and July 31, 2023;
- Been enrolled in E-Verify at the time they completed the Form I-9 for that employee;
- Created a case in E-Verify for that employee (except for re-verification); and
- Be currently enrolled in and continue to participate in E-Verify.
Employers who do not meet all four requirements must perform an in-person physical examination of documents by August 30, 2023.
The USCIS provides details on the alternative procedure and examples of properly completed forms.
New Form and Additional Flexibilities
Although many HR professionals celebrated the alternative procedure that was provided, we had more to celebrate when the flexibility was extended. In August 2023, the USCIS allowed permanent remote examination of employees’ Form I-9 documents IF they are enrolled in the E-Verify program. For more guidance, refer to the detailed alternative procedure.
Finally, the department did issue a new I-9 form in August 2023. The form dated “10/19/2019” can continue to be used through October 31, 2023, but beginning November 1, 2023, only the new Form I-9 dated “08/01/2023” can be used.
What if an Employee Refuses?
If an employee is unwilling or unable to provide documentation for physical confirmation or remotely if you qualify, that employee is subject to termination. Employers cannot retain an employee who has not provided documentation for the I-9 form, including presenting their documents for physical inspection. Organizations that retain an employee who is not authorized to work in the United States, or who have not reviewed documentation in person, are subject to hefty fines by the USCIS.
Remember, I-9 forms should be kept in a separate file from the employee’s personnel file, and make sure you retain the updated I-9 forms. For additional information, be sure to check out USCIS’s FAQ for Employers.
Special thank you to Patti Dunham, MBA, MA, SPHR, SHRM-SCP, Director of HR Solutions and Sheryl Fleming, MA, SHRM-SCP, HR Business Advisor for contributing to this edition of our HR Question of the Week!
I-9 forms and other employment verification processes are important to get right – otherwise, you might be subject to costly fines and legal fees. Let our HR experts lend a hand! Learn more about how we can support your compliance efforts by visiting our HR Compliance and Recordkeeping page or by contacting us today.
What Do I Have to Know Before Filing My EEO-1 Report?
HR Question:
What is an EEO-1 Report and how do I know if I am required to file one?
HR Answer:
As defined by the Equal Employment Opportunity Commission (EEOC), the EEO-1 Report is an annual mandatory data collection of demographic workforce data, such as race/ethnicity, gender, and job categories. The window for the 2022 data collection will open in mid-July 2023.
Am I Supposed to File an EEO-1 Report?
Great question to start with! Not every employer is required to file an EEO-1 report. That being said, there are a few questions to ask yourself to understand if you need to file:
- Do you have 100 or more employees?
- Are you a federal contractor?
- Are you a first-tier subcontractor with 50 or more employees and at least $50,000 in contracts?
If you answered “yes” to any of the above questions, then you need to file an EEO-1 report annually. Employers also must file if the organization is any of the following:
- Owned by or affiliated with another company and the entire enterprise has 100 or more employees.
- Serving as a depository of government funds for any amount.
- A financial institution that is an issuing and paying agent for US Savings Bonds and Notes.
There are some organizations that are exempt, such as State and local governments, public primary and secondary school systems, institutions of higher education, American Indian or Alaska Native tribes, and tax-exempt private membership clubs other than labor organizations.
What Should I Know Before I File?
It always pays to be prepared! Before you start gathering the data yourself, here are a few tips to help you be better prepared to file your EEO-1 Report.
First, research and understand the requirements for filing. While these requirements don’t change frequently, it’s best practice to double-check the most up-to-date requirements, which can be found on the EEOC‘s website. If you have additional questions, the Message Center provides an outlet to reach out to the EEOC for guidance. This page will open in mid-July as the window for 2022 data collection opens.
Gathering the data yourself can be difficult. While this may not be an immediate solution, investing in an HRIS or a payroll system can be a great resource. Some software includes an HR solution that provides an efficient and accurate way to access the employee data needed to complete the report accurately.
If you do not have an HRIS or payroll software solution, you can have each employee complete an EEO Self-Identification Form. This form is voluntary, however; if an employee declines to identify, the federal government requires you to determine this information by visual survey and/or other available information. Although there is not a specific form that you are required to use for self-identification, here is a sample EEO Self-Identification Form from our Virtual HR Support Center.
How Do I File?
If your company has never filed an EEO-1 Report before, let’s start with the basics – creating an online account. Visit the EEOC Data page, select “Create an Account,” then log in to the EEO-1 Component 1. At that point, new users can link their individual user account to a company record by selecting “Add Company to List” on the Your Company List page and entering your company’s EIN. After you register, you will receive your Company ID and PIN.
You will need the following information to complete the report:
- Company ID and PIN
- Company EIN and NAICS code
- Company DUNS Number (if the company is a federal contractor)
- Establishment address(es) – for a single-establishment, submit only one EEO-1 data report; for a multi-establishment company, submit a separate report for each location.
- A count of all full-time and part-time employees during the specified pay period you have selected (for 2022 reporting in 2023, you can select October, November, or December of 2022)
- Gender and race/ethnicity of all employees
- Job categories for all employees
- Employment data from one pay period in October, November, or December of 2022
Once the report is finished, it needs to be certified and submitted. Don’t forget to click the “certify report” button; otherwise, the EEOC will not receive your report.
Thank you to Sherri Hume, SHRM-CP, HR Business Advisor, for contributing to this edition of our HR Question of the Week.
Recordkeeping is one of the more mundane tasks associated with Human Resources, but it is extremely important and can get you into hot water (i.e., incurring fines) if not done properly. Keeping the right files easily accessible and up-to-date is vital. Need some help? Visit our HR Compliance & Recordkeeping page to learn more.
Six Ways to Encourage Employees to Set Work/Life Boundaries
HR Question:
Our entire team would love to find a better balance with work/life boundaries, but it’s tough to find a place to start. What are some ways to encourage employees to set work/life boundaries?
HR Answer:
Most everyone knows what the “hustle” is. It’s been a part of work culture since the early 19th century, when the word was first used to mean “gumption” or “hard work.” Depending on the context, hustle may be a virtue, the antithesis of laziness, or a necessity, the extra effort one must perform to overcome bad luck, oppression, or structural barriers.
In this line of thinking, if you can’t get ahead, it’s your own fault, and you just need to work harder. You can be or do anything you want, as long as you’re willing to put in the effort. It’s what we tell our kids so they can achieve the “American Dream”—you’ve got to work hard to get good grades to get into an elite school to get a lucrative job. In the workplace, hustle means showing how dedicated you are to the organization by being the hardest worker. You’re the first one in the office and the last one to leave. You take calls and check email while on vacation. Even when you’re sick, you’re reachable.
Sometimes all that hard work pays off. Some go-getters get promotions and raises. But success stories notwithstanding, burning the midnight oil doesn’t actually increase productivity. In 2019, CNBC shared a Stanford survey showing that “productivity per hour decline(s) sharply when a person works more than 50 hours a week.”
But hustle can hasten burnout. A 2018 Deloitte survey showed that 77% of employees have experienced burnout in the workplace and nearly 70% of them feel like their employer isn’t doing enough to prevent it. Among the leading causes cited were working long hours or over weekends and having to meet unrealistic expectations.
How to Establish Work/Life Boundaries
If you’ve conducted job interviews recently, you probably know that many job seekers today have little love for hustle culture. Instead, they want the freedom at work to set boundaries so getting their jobs done doesn’t encroach on their lives outside of work. This makes good business sense too. According to Harvard Business Review, when employers support work-life balance, they promote productivity, reduce turnover, improve employee health, and boost diversity.
If you want to encourage better work and home boundaries for your employees but are wondering how to go about it, we have some tips to get you started:
Start at the top.
Encourage your managers to come and go at reasonable times and take days off. Discourage making calls or sending emails after regular working hours. Ensure that leaders are taking breaks throughout the day and are encouraging their employees to do so as well.
Focus on outcomes.
If possible, set substantive goals with your employees rather than focusing on the number of hours they’re working. Train managers how to evaluate performance based on objective measurements of productivity and efficiency. It’s the good work that matters, not the time spent at a workstation, the number of keystrokes logged, or the appearance of busyness. Added bonus: your managers will be better able to manage their time and set healthy boundaries around their work if they don’t feel compelled to monitor their direct reports’ every working moment.
Ensure proper staffing and workload.
Set expectations around the amount of work each employee should be able to complete in a standard workday. Share those expectations with the team and get their input on what a reasonable workload should look like and whether they’re feeling underworked or overworked. If you’re understaffed, you may need to assign extra work to employees, but make sure no one’s plate gets so full they’re at risk of burnout. Reward the extra effort and watch for signs of low morale.
Be flexible.
As you are able, give employees the ability to flex their schedule to take care of personal business during the workday without jumping through a lot of hoops. Use a shared calendar so everyone knows who is available and when. If your workplace has a variety of shifts, consider offering employees the ability to work hours across different shifts to find flexibility.
Revisit paid time off (PTO) options.
Review what you currently offer and dig into why you have the PTO plans you do. Make sure you’re offering at least as much as your competitors (if at all possible). In addition to paid time off for vacation and illness, consider offering paid time off for specific activities like volunteering.
Talk with your employees. Ask them how they feel about their workload, whether they currently have healthy work/life boundaries, and what would help them better attend to their personal obligations. Survey them about what’s causing them the most stress at work and what work-related matters may be keeping them up at night. Keep an open discussion going.
You can learn more about good management practices, preventing burnout, PTO, and other topics discussed here on the platform.
Special thanks to our HR Support Center for providing this edition of our HR Question of the Week.
If your organization is struggling with burnout and low morale, Strategic HR can help you to understand what’s going wrong and identify the necessary steps to increase employee engagement and retention. Contact us to help re-engage and re-energize your team!
Designing a Modern Dress Code for Today’s Workplace
HR Question:
We’re taking a look at revising our dress code policy. We want to balance today’s increasingly casual approach while still asking our team members to look professional. How can we create a modern dress code policy?
HR Answer:
In today’s modern workplace, the concept of dress code has evolved to reflect a more relaxed and individualistic approach. Many companies have moved away from the traditional suit, skirt, button-down, formal shoes, tie, etc. combinations that were common in the past. One of the main reasons for this shift is the changing nature of work itself.
Many jobs today are more creative and require a more individualistic approach. This means that employees are encouraged to express themselves through their clothing choices, as long as it is appropriate for the workplace. Additionally, as younger generations gain a larger presence in today’s workforce, employers have recognized the need to allow for personal expression through clothing and accessories with a lean toward a more casual dress code to attract and retain top talent.
Designing a dress code for the modern workforce is an important task and requires a delicate balance between creating a professional and inclusive environment. Here are some steps to consider when designing a dress code:
Identify your Dress Code Requirements
First, identify the requirements of your workplace, including the nature of the work, the industry, workplace safety, and the expectations of the customers or clients. It might help to categorize your approach in typical dress code categories that most individuals are familiar with, such as business casual, casual, smart casual, company attire/uniform, and business attire.
For those unfamiliar with those guidelines, providing examples is your best route to clearly outline expectations. For example, you could provide images or descriptions of appropriate attire and accessories. These examples will guide the type of attire that is appropriate for your workplace.
If the nature of an employee’s work and who they interact with varies daily (i.e., Are they customer-facing all of the time? Some of the time? Not at all?), that may result in the expectations for their level of dress to change from day to day depending on these factors. So if your dress expectations do vary, we recommend that you clarify this in your dress code policy to help employees navigate through this appropriately.
Make Sure It’s Inclusive
It’s important to balance the need for professionalism with the desire (or need, in some cases) for individual expression, respect for other cultures, and/or the way individuals identify. For example, establishing expectations or limits around how someone wears their hair could limit someone’s ability to abide by their religious beliefs or could discriminate against hairstyles that have cultural significance. For example, The C.R.O.W.N. Act was created for this very reason.
Developing an inclusive dress code should also factor in gender identity. Avoid gender-specific language and instead use gender-neutral language, such as “employees should wear professional attire, such as a suit and tie or skirt and blazer” instead of “men should wear a suit and tie.”
Be Flexible & Seek Feedback
Flexibility is key when designing a dress code that is inclusive of all genders. Consider allowing employees to choose from a range of acceptable attire options, rather than prescribing a specific dress code. If your organization maintains a uniform (ideally, one that can be considered gender-neutral), consider allowing employees to express themselves through accessories or subtle variations in attire, while still maintaining an appropriate level of professionalism.
Finally, seek feedback from employees to ensure that the dress code is meeting their needs and is inclusive of all genders. Encourage open communication and consider making adjustments as needed.
Overall, designing a dress code for the modern workforce requires a thoughtful and inclusive approach that balances professionalism and individual expression. While there are still certain expectations and guidelines that should be followed, employees are encouraged to express themselves through their clothing choices. By understanding your workplace culture and asking employees to dress appropriately for their positions, you can help them find and maintain a healthy balance between professionalism and self-expression.
Thanks to Cassie Whitehouse, M.Ed., Senior HR Business Advisor, for contributing to this edition of the HR Question of the Week!
Trying to find ways to create inclusive policies? Want to build a welcoming environment, but not sure how to develop policies and procedures that reflect that? Our team at Strategic HR can help you create policies and procedures that clearly lay out your expectations of your employees while creating a flexible and inclusive environment. Contact us today or learn more about how Strategic HR can help you remain compliant, avoid unnecessary obstacles, and increase employee trust, engagement, and satisfaction through HR Communications.
What Questions Should I Ask During An Exit Interview?
HR Question:
We’ve decided to start conducting exit interviews but aren’t sure of the right questions to ask. What are some key questions to ask during an exit interview?
HR Answer:
Exit interviews are an important part of the employee life cycle. These interviews, conducted after an employee has formally turned in their resignation and is in their last few days of employment with your organization, allow you to get feedback to examine and potentially improve processes, expectations, and experiences within the company. While typically conducted with an employee who is leaving on their own terms for another opportunity, you can also conduct exit interviews with those employees who are relocating, retiring, or leaving for personal reasons.
Take the time to discuss topics such as pay and benefits, team culture and expectations, and reasons why someone may have felt prompted to search for opportunities elsewhere. The answers to these questions can help you develop strategies for your HR processes. Plus, this feedback is critical to reducing turnover and creating an environment your employees want to work for. You can’t fix what you don’t know, and you won’t know unless you ask. Preparing ahead of time can allow you to ask focused questions that will lead to the necessary answers.
How to prepare for an Exit Interview
The first step in conducting an effective exit interview is to ask yourself what you are hoping to accomplish by talking to the exiting employee. Are there areas or blind spots that they may be able to shed light on or provide additional insight into? This opportunity will allow you to gather feedback that current and remaining employees may be too hesitant to share.
You may have some suspicions as to the underlying reason(s) for employees’ departures, so this can be an opportunity to test out your hypotheses. For example, you may be concerned that your salary ranges are not up to date with your market and industry, and you are lagging behind your competitors. Or is the employee leaving because of a manager, supervisor, or co-worker? Do you want to look at your culture to see if it promotes teamwork, accountability, and appreciation?
Additionally, be prepared to see the organization through this individual’s lens. They may not have had the best experience, or perhaps they felt consistently frustrated by certain elements. As a result, be prepared to listen to their feedback (and potential negative approach) with an impartial ear and an eye looking for potential opportunities for improvement.
What questions should I ask?
After determining the why, start creating questions that will get you the information you are seeking. Of course, there are many questions that you could ask, so we recommend you identify a set of questions that can be discussed in a reasonable amount of time. Here are some suggestions:
- Were you looking for a job (and if so, what made you decide to start looking)?
Because of the current job market, many employers pursue passive job seekers and provide the employee with a terrific employment opportunity. If the individual was actively applying for new roles, this might help get to the root of why they wanted to leave. - What caused you to accept the position?
This is where the interviewer can get to a key differentiator between their organization and their competition. More pay, better benefits, remote work, work culture, toxic manager, etc. may be reasons why the offer made couldn’t be refused. - Did your manager meet your expectations for providing appropriate direction, support, and leadership?
It is often said that people leave a manager, not a job. If their expectations weren’t met, ask probing questions to understand why. This can shed light on any supervision and leadership issues that may need to be addressed. - How can our company improve our training and/or onboarding process?
For those newer to your company, this question allows you to determine how the employee felt about their first few months in your organization and if they feel they received sufficient training to do their job. If the employee has been with your organization for a longer time period, be sure to clarify that their suggestions can also come from their experience or role in training and onboarding processes as well. - What, if anything, would you have changed about your job?
A good follow-up question to this one is “if that change were implemented, would you return to work here?” Again, this question can get to the root cause of the turnover, and if the departing employee feels strongly enough about the company to consider returning at a future time. Remember that boomerang employees can be an asset to your organization as they can return re-energized and more engaged, so keep that door open when it’s appropriate to do so. - Would you refer a friend or family member to work here?
This question can give you additional information about the culture of the organization. If the answer is “yes, but not in my department,” follow-up questions may again reveal issues that should be addressed.
For additional areas to probe, Glassdoor provides more exit interview questions to consider.
What to do after an Exit Interview
After the exit interview, consider how you will use the data. Are you sharing it with the managers or leadership team, or are you checking the exit interview off your list and storing the information? Look for themes, especially if there is increasing turnover in one department or position. For example, are all of your customer service representatives leaving because they didn’t feel as though they were trained appropriately? Do your departing IT professionals complain about a lack of support from their manager? Use the data from exit interviews to create action plans to address issues and concerns.
Exit interviews can be used as a great tool to target turnover and retention issues. An effective exit interview is also valuable in pinpointing management and cultural challenges in an organization if the data is used appropriately. An alternate strategy is to open lines of communication with employees before they leave by conducting employee surveys or implementing stay interviews to identify and address issues before they choose to exit.
Thank you to Sheryl Fleming, MA, SHRM-SCP, for contributing to this HR Question of the Week.
Do you know why your employees choose to leave your organization? Exit interviews, while time-consuming, can be key tools for better understanding your company’s retention opportunities. Our team at Strategic HR can help you construct and conduct stay and exit interviews to learn more about why employees stay or go. Visit our Employee Relations page or Contact Us to learn how we can lend a hand in your employee retention efforts.
What is Equal Pay Day?
HR Question:
I keep seeing information about “Equal Pay Day” during Women’s History Month. What is Equal Pay Day, and how can I recognize it in my organization?
HR Answer:
Equal Pay Day is a symbolic day that puts into perspective the 23% pay gap between a woman and a man in the same role. Based on the current gap, a woman has to work one full year plus several additional weeks into the following year to make the same amount that her male counterpart made in one year alone.
In 2023, Equal Pay Day is March 14, representing the 2022 US Census Data showing women make 84 cents (all full-time workers) and 77 cents (all full-time, part-time, and seasonal earners) for every dollar paid to non-Hispanic, white men. This translates to an annual wage gap of $9,954. That gap is unfortunately even larger for most women of color, resulting in a gap of $.64 on the dollar for Black women, $.62 for mothers, $.61 for Native Hawaiian and Pacific Islanders, $.54 for Latina women, and $.51 for Native and Indigenous women.
Equal Pay Day was established in 1996 by the National Committee on Pay Equality (NCPE). The day is recognized annually, but not always on the same date due to the pay gap calculation. Even though Equal Pay Day has been around for 27 years, it is more widely recognized today, in part due to the stronger focus on eliminating the gap. Current initiatives, such as pay transparency and salary history ban laws, were introduced by individual cities and state-wide to address the pay gap.
Where are Equal Pay Laws in Place?
On January 1, 2023, three new states were added to the list of city and state governments that passed laws to protect applicants by banning employers from asking about prior salary history and/or requiring that companies list salary ranges in their job advertisements. Currently, the following governments have such laws:
States:
- California
- Colorado
- Connecticut
- Maryland
- Nevada
- Rhode Island
- Washington
Cities:
- Cincinnati, OH
- Ithaca, NY
- Jersey City, NJ
- New York City, NY
- Toledo, OH
- Westchester County, NY
According to the Society for Human Resource Management (SHRM), pay transparency is one of the top issues people managers will face in 2023. According to Monster’s 2022 poll, 98% of workers believe salaries should be disclosed, with another 53% of applicants refusing to apply for a position if the salary is not disclosed.
How Can I Support the Movement?
So how can employers address the gender gap and honor Equal Pay Day in their organizations? Some recommended ways include:
- Performing an Equal Pay Audit to review job classifications, salaries, and genders and take corrective actions if inequity is found.
- Reviewing compensation policies to remove gender bias.
- Removing managerial discretion on pay and sticking to a salary band of positions for new hires and for annual increases.
- Removing prior salary history from applications and interviews.
- Establishing fair scheduling practices to allow for caregiving.
For even more ways to contribute to awareness and celebrate Equal Pay Day you can visit equalpaytoday.org.
Thank you to Paula Alexander, MA, PHR, SHRM-CP, for contributing to this HR Question of the Week!
Performing an equal pay audit can be a complex, but necessary, step toward equal pay for all. Clark Schaefer Strategic HR is ready to assist you with any of your needs around Benefits and Compensation. We offer assistance with everything from job descriptions to policy development to help address your complex issues that impact employee compensation or benefits. Please visit our Benefits and Compensation page for more information on how we can assist you.
How To Set Up An Employee Bonus Plan
HR Question:
I am having trouble motivating my employees to do more than just the fundamental functions of their job. Could an employee bonus plan help? And if so, how do I set this up?
HR Answer:
Yes! While some people are driven solely by their own internal motivation, many behaviors and accomplishments are encouraged and strengthened by external rewards, prizes, or incentives. Think about your own behavior. Do you eat healthy all week and reward yourself with a sweet treat on the weekend for a job well done? Or is there a meaningful work project that would suddenly become more tempting to tackle if there was a reward for knocking it out of the park?
“Behavior that is motivated by a desire for reinforcement or incentives” is known as the Incentive Theory of Motivation. From this, we learn that providing the right external rewards can drive human behavior. In a work setting, incentives can help to set your employees’ course of action and encourage them to perform projects or tasks that might be above and beyond their daily work responsibilities, stretch and grow them in areas that will further benefit the company, and drive advancement and change in your organization.
While there are a variety of ways to incentivize employees, one of the easiest and most impactful ways is a financial incentive or bonus. Not all individuals are motivated by money, and you have to know your employees well to know if and how much money will actually be motivating, so it might prove to be beneficial to conduct an employee survey to understand your employees’ motivators.
There are many creative ways to structure bonuses to incentivize the behavior you want to see. The Economic Research Institute provides a description of the most common types of bonuses used by employers in their article, “How to Calculate Employee Bonuses.” We are going to focus the remainder of this article on the performance bonus.
How to establish a performance bonus plan
To implement a performance employee bonus plan in your organization, we recommend the following steps:
- Work with your company leadership team and chief financial officer to establish a budgeted amount of money that will be available at the time bonuses will be paid out.
- Determine who is eligible to participate in the bonus program. Remember that if you include non-exempt employees, the bonus amount will have to be added to the base hourly rate in the calculation of overtime for that time period.
- Define the time period that the bonus will cover and how often it will be paid out (i.e., monthly, quarterly, semi-annually, or annually).
- Establish maximum bonus amounts for participants – will it be a percentage of their salary or a fixed amount? Will this vary based on the pay grade their job is assigned?
- Prepare a policy with all of this information and communicate the program to eligible employees.
Setting goals for bonus payout
Once you have established the structure of your bonus program, the next step is the MOST IMPORTANT one in the process – setting goals. Work with your employees to set stretch goals that will motivate them to perform their essential functions better, improve processes, learn a new skill, or complete specific projects. These goals should align with both the organization’s annual goals and the department’s goals for the year.
As you align your bonus plan payout with your company, departmental, and individual goals, you may want to allocate percentages of the bonus to each of these areas. By tying the bonus payout to multiple relevant factors, you can set minimum expectations for the financial and performance metrics that need to be met for a full payout. This also provides flexibility to offer a partial payout if certain measures are partially met.
For example, you could structure your employee bonus plan like this:
1. Company Goal – A financial goal the company must meet/exceed – 25% of the eligible bonus amount
2. Departmental Goal – A goal the department must meet/exceed measuring quality, performance, customer service, financials, safety, etc. – 25% of the eligible bonus amount
3. Individual Goals – Two individual goals measuring projects, training/development, performance, safety, productivity, attendance, etc. – 50% of the eligible bonus amount
Once the goals are set, your next critical priority is to follow up on these goals. Whether you are setting a bonus goal for the year or for the month, meet with your employees at regular intervals and discuss their progress on their goals. Assure that the goals are attainable and that they continue to make sense as time moves forward. Company leaders should also provide updates on company and departmental goals so employees have a sense of organizational progress and success.
Finally, at the end of the bonus period, meet with your employees to assess their progress in reaching/exceeding the goals. Reward those goals completed at 100% and lessen the reward if the goals were not fully met. Be sure to assess the effectiveness of your bonus plan at the end of the year and tweak it accordingly before rolling it out again next year.
Thank you to Lorrie Diaz, MS, Sr. HR Business Advisor, for contributing to this HR Question of the Week.
Clark Schaefer Strategic HR have the answers to all of your tough Benefits and Compensation related questions. Whether you need an analysis of your current benefit offerings or are looking to create a cost-effective recognition and rewards program, Strategic HR can do the job. Please visit our Benefits & Compensation page for more information or Contact Us.
Could Sabbaticals Be Your Next Retention Tool?
HR Question:
In today’s fast-paced and high-pressure market, it’s difficult to truly disconnect from work. We’ve been trying to find ways to give our team a break to avoid burnout, but sometimes a week of vacation just isn’t enough. Could sabbaticals be the newest tool in our retention toolbox?
HR Answer:
You’re not alone in considering sabbaticals as they seem to be gaining in popularity. According to a recent World at Work survey assessing US organizations ranging in size and industry, 10% of organizations offered paid sabbaticals (up from 7% in 2019), and 29% offered unpaid sabbaticals (up from 16% in 2019). Now, as we’re well into a period with many different names – the Great Reshuffle, the Great Resignation, the Great Re-Evaluation to name a few – sabbaticals may be the unsung hero that benefits both employers and employees alike when it comes to talent retention, supporting good mental health, and strengthening employee engagement and dedication to their work and your organization.
Time to Re-Charge, Re-Energize, and Reconnect
It’s no secret that the first beneficiary of a sabbatical is the employee. Unfortunately, those who do choose to take sabbaticals may often lack the opportunity to properly enjoy them. In fact, The Sabbatical Project reports that nearly two-thirds of those who do take a sabbatical are often forced into them due to traumatic circumstances out of their control – the loss of a family member, health issues, the need to navigate complex or dissolving relationships, etc. Not exactly the most relaxing setting for a rejuvenating and relaxing period of time.
Although a sabbatical can be used to address such issues, it could benefit organizations to promote them for a broader purpose. Employees should be encouraged to consider using a sabbatical as an opportunity to truly disconnect, re-energize, and re-focus if suffering from burnout or fatigue. They can also be used to discover new passions, chase hobbies, and gain the experiences that many may put off until after retirement.
Sabbaticals Benefit the Employer Too
And while a sabbatical, paid or unpaid, can seem like an intimidating amount of time away from the desk for both the employee and the employer, the benefit of a re-energized and re-engaged employee can pay back dividends. Interviews for a Charter and TIME article revealed employees who returned from a sabbatical found themselves more creative, felt greater feelings of loyalty and energy, and brought new ideas to the table.
When considering the cost of having to replace a long-term employee, along with their organizational knowledge, skills, and work relationships built over time, offering a sabbatical as an opportunity to renew and recharge may be far more cost-effective. In addition, offering sabbaticals as part of your benefits package is not only attractive to retain current employees, but can also be a valuable talent acquisition tool to attract new talent.
Your Team Will Benefit From Your Time Away
The longer nature of sabbaticals creates an opportunity for cross-training. As opposed to managing through vacations where you can push a project or a question off “just a few days” until a person returns, sabbaticals present a fantastic opportunity to engage other team members in new and different tasks, departments, and levels of the organization – providing the employer with a built-in opportunity for the career development and growth that ranks high on job seekers’ lists today.
Sabbaticals Don’t Come Without a Cost
It would be a win-win if sabbaticals came without a cost to the employer or employee, but unfortunately, that’s not the case. That’s why it’s important that employers establish their promises and expectations for sabbaticals. How often and for how long can employees be away? Do they need to serve a certain number of years to qualify? How much of their regular pay will they still receive, if any? How does a sabbatical tie into their PTO or other time off categories?
While the cost may not be a surprise, the money saved by creating an attractive workplace, providing necessary mental health benefits, and showing that you’re an organization committed to putting employees’ needs first may very well pay dividends in attracting and retaining valuable talent.
Special thanks to Sammie Kelly for contributing to this HR Question of the Week!
Providing adequate Benefits and Compensation for your employees is key to the recruitment and retention of a well-performing workforce, and having the right policies in place can make or break a company. Clark Schaefer Strategic HR can help you structure your benefit and compensation system to meet today’s competitive market. Please visit our Benefits and Compensation page for more information today.
How To Limit Liability At Your Company Party
HR Question:
We’re looking forward to hosting our company holiday party to celebrate our accomplishments this year. While we want this to be a fun celebration, we also want it to be responsible. How can we limit liability at the company party, especially if we’re considering serving alcohol?
HR Answer:
The holidays are here, and to many, that means it is time for holiday parties. While holiday events are a great time to bring your team together and increase engagement, there are potential risks to keep in mind as an employer. As you plan your event, below is a list of best practices to consider that may help to limit potential liability:
- If it is truly a social event for your team, do not require attendance. Remind staff that attendance is not required but voluntary. This may help to limit liability with a potential harassment claim because the event is voluntary and not in the course and scope of employment.
- To further support the non-work nature of the event, hold the event off-site and outside of regular business hours. Many organizations also allow employees to bring a guest thereby underscoring the non-work component.
- Set expectations around respectful behavior and encourage employees to drink responsibly. Remind employees that company policies, including harassment and other conduct policies, apply at the event.
- Determine if alcohol will be offered. Company leaders will need to determine if the company holiday party is the right environment for alcohol. There are multiple factors to consider, including the age range of your workforce, how the timing of the party fits with employees’ work schedules, past history, and the location of the party. If you have employees under the age of 21, your company will need to assess how you will handle this potential liability. If you have employees attending the party before their shift, that is another issue you will need to address.
How to handle alcoholic beverages at the party
If you decide to provide alcoholic beverages, there are a number of considerations you can make that may help limit potential liability at your company party. Here are some good practices to consider:
- Provide food and non-alcoholic beverages at the event, both for safety reasons and so those who choose not to drink alcohol know you’ve considered them and feel included.
- Offer a cash bar where employees purchase alcohol. This can reduce the likelihood of a claim that the employer provided alcohol directly to employees. It is also likely to reduce consumption.
- Provide employees with a set number of drink tickets so that each attendee is limited in the number of alcoholic drinks they will be served.
- Plan for how employees who have been drinking will get home. This may involve providing taxis or public transit options at no cost to the employees, arranging for group transportation, or encouraging employees to designate a driver at the beginning of the event.
- Even if you don’t plan to provide a taxi service, don’t think twice about calling and paying for one if an intoxicated employee has no way home other than driving themselves. To facilitate this, someone from management can be designated to stay until the end and maintain their own sobriety to ensure that everyone gets home safely.
- Have a plan to ensure that no minors or visibly intoxicated attendees are served alcohol. If possible, hire professional servers (or hold the event at a staffed facility) who will, as part of their job, politely refuse to serve anyone whom they perceive has had enough to drink.
How to handle cannabis at the event
Consider the potential use of cannabis at the party. With the legalization of cannabis in many states, employers also need to be prepared to deal with this new potential concern at holiday events. Employees may believe it is appropriate to bring this state-legal drug (in some instances) to the party, but, marijuana remains illegal under federal law.
It may be appropriate to remind staff of your drug-free workplace policy (if applicable) which prohibits consumption in the workplace and at company-sponsored events. If you wish to avoid consumption at your party, clearly communicate the policy to employees before the event. The Society for Human Resource Management (SHRM) offers these additional suggestions regarding cannabis at holiday parties.
While these steps will not eliminate all the risks, they may help to reduce liability and help your employees celebrate the year and their achievements safely and responsibly. For more suggestions on how to limit liability at your company party, SHRM provides these tips to reduce liability while celebrating the season.
Thank you to Patti Dunham, MBA, MA, SPHR, SHRM-SCP, Director of HR Solutions, and our HR Support Center for contributing to this HR Question of the Week.
It’s important to celebrate company success, but don’t throw caution to the wind in the process. Our Strategic HR Business Advisors are prepared to help you celebrate and protect your business and your employees. We can help you to reduce your potential liability by fielding your questions and offering resources to help you identify and mitigate compliance issues. Visit our HR Compliance and Recordkeeping page to learn more about how we can help or contact us for immediate support.
Why Is It Important To Get An Employee’s Signature?
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.
How To Determine If A Home Office Injury Is Covered By Workers’ Compensation
HR Question:
Our company has agreed to allow employees to work a hybrid schedule, allowing them to work from home on multiple days during the week. Although this has been very well received by employees, we have seen an increase in the number of injuries from employees working from home. How do I know if a home office injury is covered by workers’ compensation, and how do I handle these claims?
HR Answer:
The Bureau of Labor Statistics announced that in 2020, private industry employers reported 2.7 million nonfatal workplace injuries and illnesses. Although down from 2.8 million in 2019, workplace injuries are still an expensive and difficult issue for employers, and with the increase in the number of employees telecommuting and working from home or alternate locations, this task has some additional unique challenges.
What is a compensable injury under workers’ compensation?
In many instances, it is easy to determine if an injury is covered by workers’ compensation. The key words in determining coverage under workers’ compensation are: “arising out of (what they were doing) and in the course of (where were they – time, place, etc.) employment.” Cutting your finger opening a box at work is an easy example of a covered injury. Injuries from a home office are not always as easy to determine coverage. Overall, injuries and illnesses that occur while an employee is working at home are considered work-related (and thus compensable) if the illness or injury occurs while the employee is performing work for pay in the home or alternate workspace and the injury or illness is directly related to the performance of work. If the employee is completing a work task and they can prove they were working in the interest of their employer when they got hurt or injured, it is typically a covered event.
One important note is that employers must also consider the “personal comfort doctrine.” This legal term states that certain personal activities for the employee’s comfort (bathroom breaks, eating/drinking) are deemed necessary and are considered part of an employee’s work activity. According to the personal comfort doctrine, tripping over the dog and breaking your leg while walking to the bathroom at home during work hours could be covered under workers’ compensation. This doctrine, along with the overall lack of witnesses and the inability to control the work environment, can lead to frustration regarding workers’ compensation claims outside of the traditional workplace.
For additional support, OSHA provides instruction on compliance and guidance on interpreting the work-relatedness of injuries resulting from telecommuting.
What can employers do to protect your organization and your employees?
We recommend taking the following steps to establish expectations for safe remote work environments, as well as what to do if you receive an injury claim from a remote worker:
- 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.
What is HR’s Role in the Mergers & Acquisitions Process?
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, Senior HR Business Advisor for contributing to this Emerging Issues in HR.
Ensuring that your HR Strategy aligns with your Company Strategy is critical to the success of your organization. Clark Schaefer Strategic HR has years of experience helping clients develop and implement their HR strategy and goals. Visit our HR Strategy Services to learn more about how we can help to assess your organizational design and HR processes to effectively plan for the future.
As Open Enrollment Season Approaches, What Are Best Practices to Improve Benefits and Remain Compliant?
HR Question:
It’s almost that time again – open enrollment season is quickly approaching! I want to be prepared this year and avoid any last-minute decisions or chaos. Can you recommend any best practices for reviewing, improving, and staying compliant with our employees’ health and well-being?
HR Answer:
It can be an intimidating feeling to see Open Enrollment season coming up on the calendar. Health insurance carriers typically provide an annual renewal timeframe and a deadline for brokers and employers to decide on which health insurance carrier will be utilized for the following year. Mapping out your strategy with this deadline in mind guarantees you have ample time to review your options and make effective decisions. In this article, we will walk you through key considerations you should consider as you review your employee benefits package to ensure you are well prepared and compliant with your open enrollment.
Timing of Open Enrollment
For those employer groups that renew their health insurance on January 1, 2023, the beginning of September is the time to start the review process. If you are a smaller employer, important questions to ask yourself are:
- How will my employees complete the application process?
- Could they use an online application program like Survey Methods, Google Forms, FormFire, or Easy Apps Online?
- When can employees start the process of completing their applications?
Some insurers allow for applications to be dated within 120 days of their renewal date. That means employees could begin the application process as early as September 1, 2022. If your employees are not filling out applications, now is the time to do a quick survey. Getting a pulse from your employees will help to determine what options you need to keep in place and what adjustments you need to make to the health and well-being package.
Cost of Benefits
Cost for the employer and the employee can be a major deciding factor. The type of program may provide discounts, returns of claim funds, or additional benefits. For example, chambers of commerce or associations may offer discounts or additional plan benefits for smaller businesses that can’t afford the discounts that larger organizations have access to. Some plans offer savings to employees for participating in wellness programs. These are all options that you should inquire about at your renewal.
The health insurance plan design you select is as important as the insurance company you choose to provide your benefits. Consider plans that may meet your employees’ immediate needs more readily, such as split-dollar co-payments for office visits, personal nurse benefits, or plans that offer telemedicine at no cost. Carefully review the prescription drug plans available to you, as well. Implementing a tiered deductible network, deductible for brand-name prescriptions, a $0 copayment for emergency room visits (subject to the deductible), or selecting a plan with higher copayments for brand-name drugs and specialty medications can all result in a reduction in premium. Bundling your ancillary benefits like dental, vision, life, LTD, and STD insurance may result in more favorable pricing and/or a multi-year rate guarantee without sacrificing quality.
Maintaining Compliance
Make time to review any compliance requirements. The DOL has a self-compliance tool for employers to use as a guide. Keep in mind the IRS updates guidelines as well, such as HSA contributions limits and the ACA affordability requirement. Therefore, before determining the contribution breakdown between you and your employees, do a quick calculation to ensure the amounts will be within the published guidelines.
There are a lot of factors to consider as you review your health and well-being offerings in your open enrollment process. Setting a timeline for a complete review will help keep the renewal process on track. Considering all your different options will ensure your employees receive the best possible benefits at the best possible price. Educating your employees on their new benefits will give them time to prepare. Wishing you well in this renewal season!
Thank you to Gina Kocevar with LS Benefits Group for contributing to this edition of our HR Question of the Week!
Clark Schaefer Strategic HR have the answers to all of your tough Benefits and Compensation related questions. Whether you need an analysis of your current benefit offerings or are looking to create a cost-effective recognition and rewards program, Strategic HR can do the job. Please visit our Benefits & Compensation page for more information.
How Can I Prevent Unethical Behavior On My Team?
HR Question:
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.
How Do I Write and Deliver a Written Warning?
HR Question:
I have an employee who is not following company policy. I have given them several verbal warnings, and I know my next step is a written warning. How do I write and deliver a written warning?
HR Answer:
Disciplining employees can be uncomfortable. That’s why most companies have a Progressive Disciplinary Policy, clearly stating the steps employees need to take to modify unacceptable behavior and achieve the expectations of their role within the company. This can take the burden of deciding the next steps or consequences off of the manager and help them maintain an unbiased disciplinary process.
In order for the Progressive Disciplinary Policy to work as designed, it’s important that managers and supervisors document incidents appropriately. By following this policy and documenting incidents accordingly, companies can make a case for discipline or termination. However, without the appropriate documentation, taking disciplinary action can be potentially risky.
How Do Progressive Disciplinary Policies Start?
Most Progressive Disciplinary Policies start with a verbal warning. It’s important to make sure the employee is aware of what policy they are not following, as sometimes it’s simply a case of not being aware. It’s the “human” part of “human resources” – sometimes, employees make honest mistakes when they aren’t aware that they’re not in compliance. A verbal warning here can do the trick. However, sometimes it takes more than a verbal warning. That is when a written warning comes into play.
What’s Next? A Written Warning.
A written warning is a more formal step in the disciplinary process. A written warning should include:
- Employee Name
- Position
- Expectations
- Details of failed expectations
- Consequences of failing to improve
- Employee comment section
- Manager signature/date
- Employee acknowledgment
It’s important to include factual information should the process or the disciplinary action ever be called into question. Additionally, any emotion or opinions should be kept out of the written warning and subsequent documentation.
The Do’s and Don’ts of Writing a Warning
Susan Heathfield, a writer for Balanced Careers, shares the following excellent examples of the right and wrong ways to document an attendance issue in The Importance of Documentation in Human Resources:
Wrong:
“Mark is usually late for work. Mark misses too much work.”
In this example, the documentation lacks specific examples, dates, and times, and includes the supervisor’s opinion, making a poor case against the employee and a strong case for discrimination or targeting by the supervisor.
Right:
“April 1: Mark called in sick and missed eight hours of work.”
“April 4: Mark arrived at work at 10 a.m., two hours late from his scheduled start time.”
“April 6: Mark scheduled a doctor’s appointment and then, stayed home to have a new furnace installed.”
“April 12: Mark called in sick and missed eight hours of work.”
See how the documentation relies on dates, times, and the amount of work missed? It also details the specific reasons the employee was missing work, rather than letting those facts be forgotten or muddled when recalled later.
Best Practices for Written Warnings
Like most processes in business, there are best practices when it comes to delivering written warnings. First, it’s important to be consistent and timely. Avoid waiting days or weeks to write up an employee for an issue, as the impact of the warning (as well as the clarity of each person’s memory) can fade with time. Additionally, if you write up one employee for an attendance issue, be prepared to write up others who have the same issue. This consistency can help prevent claims of discrimination or favoritism.
At the end of the day, it’s important to provide feedback to your team members to help them succeed. If the employee has improved, be sure to acknowledge their effort. If the employee has not improved in the time allowed, continue to follow your Progressive Disciplinary Policy.
Special thanks to Sherri Hume, SHRM-CP and Samantha Kelly for contributing to this HR Question of the Week.
Employment recordkeeping does not rank high on the list of favorite human resources responsibilities, but it can get you into hot water if not done properly. Keeping appropriate disciplinary documentation is vital to proving your processes are compliant. Avoid the fines and minimize your stress level by having Strategic HR assist with your recordkeeping compliance. Visit our HR Compliance and Recordkeeping page to learn more about our services.
What are the Newest Benefit Trends?
HR Question:
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.
Three Ways HR Can Serve as Cybersecurity Defenders
HR Question:
Why should cybersecurity be a priority for HR professionals? Isn’t that IT’s job?
HR Answer:
Hackers look for more than just passwords and bank information. They can hold personal information hostage like social security numbers, share private health information, or share the results of someone’s less-than-satisfactory performance review with the public.
Human error is often one of the key weaknesses that hackers and cybersecurity criminals will try to exploit in their assaults. As HR professionals and business leaders, it’s up to you to build in defenses amongst your team members to protect the business and the sensitive information it has on your employees.
Implement a Clear Cybersecurity Policy
One of the first lines of defense that HR professionals can put in place is a strong cybersecurity policy. Policies that cover topics such as information sharing and the appropriate use of social media, remote devices, wi-fi, and VPNs can help educate your team members on safe technology practices and put definable consequences (beyond the potential danger of information exposure and distribution) around the misuse of company technology and information.
By partnering with your organization’s IT department, HR can include policies that support employee privacy and the company’s security, such as regularly updating passwords, guidelines to follow in the case of suspected security breaches, reporting procedures, and more.
Foster a Cybersecurity Savvy Culture
You know the phrase, “you have to walk the walk to talk the talk”? Or better yet – “leading by example.” The same concepts apply to how your HR department approaches cybersecurity when fostering your company culture. Without HR putting the same emphasis and care behind IT policies and priorities, these goals may fall flat before reaching the finish line.
As such, there are four ways to help encourage your employees to be aware of potential security risks:
- Check phishing reports quarterly to see what’s trending and what’s changing with how the common scams operate.
- Always be sure to double- and triple-check who’s asking you for information. Attackers are becoming more and more intuitive in how they reach out to you. It doesn’t matter whether it’s your mother, your boss, or your best friend who emailed you, check where the email came from and be certain before you respond.
- Ensure that common behaviors, such as reusing passwords or using unprotected wi-fi networks, aren’t encouraged, practiced, or overlooked.
- Never let your guard down. This is probably one of the most important things to remember. It’s not easy to do, but phishing is only a problem if it succeeds. And phishing will succeed. We’re all human and we will make mistakes. It’s these mistakes that attackers capitalize on.
Remember these four rules, and you’ll be much safer and prepared to deal with any phishing scams that come your way.
Include Cybersecurity in Regular HR Audits
As a part of your HR audits, which should be conducted on a regular basis, it’s important to include cybersecurity features in your regular process. Double-checking things such as password security, ensuring all software is updated, and making sure that policies are up-to-date based on popular apps and technology trends can help to keep your company’s and your employees’ information safe and secure.
Special thanks to Samantha Kelly for contributing to this edition of our HR Question of the Week.
Visit our colleagues at Clark Schaefer Hackett to learn how they can support your cybersecurity needs, or check out our Health, Safety, and Security page to see how we can help develop processes, procedures, and programs to protect your team.
Three Ways Employers Can Promote Work-Life Balance
In the midst of a pandemic and a labor “shortage,” followed by an extremely tight labor market, it has become more important than ever that employers listen to and understand the motivations of their employees in order to best attract and retain them. Over the past two years, many employees have made changes that better support family life, financial security, and their lifestyle through remote or hybrid work situations. Many are realizing that work-life balance is not a “nice to have,” but rather it is a necessity.
In fact, in our “Generations at Work: Insights from our Survey of the Generations” report, our team at Strategic HR discovered that the ability to enjoy a work-life balance closely tied as the top reason employees across all generations both join and stay at a company. When combined with the finding that at least 56% of all workers (regardless of generation) preferred a hybrid work situation, employers are trying to strike the perfect work-life balance to attract and retain desperately needed talent.
During a major cultural shift due to the pandemic, many found they were enjoying the “hallway commute,” the additional time with family, and the lessened stress that came from spending more time at home. But for some, there was no clear boundary between when “work” ended, and “life” began. With employees making themselves accessible by email, text, or phone 24/7, it was (and still is) extremely easy to lose sight of that balance. If an employer chooses to ignore the work-life balance expectations of the current workforce, employees will simply move on to a job that suits their needs better.
Three Ways to Promote Work-Life Balance
Each person has his or her own idea of work-life balance or work-life integration, which is another term that some use for the concept of the give and take, tug and pull between work and personal life. So how can employers meet the diverse needs and desires of their employees and achieve work-life balance, particularly if it means something different to each person? Here are three potential solutions:
1) Offer Hybrid or Remote Work Options
To be competitive in today’s market, consider offering hybrid and/or remote work models to employees, in addition to flexible hours. While this may be a complete shift in culture for many organizations, we have seen just how productive and successful employees (and organizations) can be while working virtually some or all of the time.
Some employers may be concerned that remote work could lead to a decrease in productivity and quality of team collaboration. When comparing the collaboration effectiveness of teams working remotely versus in-person, our Survey on the Generations revealed that well over half (55% – 60%) of all generations reported high or somewhat high collaboration effectiveness, followed by 26% – 31% reporting no change as compared to in-person work, and 12% – 19% saw remote collaboration as highly or somewhat ineffective. So what can you do for those who might struggle with remote work?
Steps to ensure success with remote work
Working remotely can present unique challenges to individual and team productivity, collaboration, and success. We recommend that employers:
- Plan for and build internal supports for those who are working remotely to ensure they have the appropriate support (people and tools) and clear direction to optimally perform.
- Have frequent check-ins with employees to ensure that they are on the right track to meet their objectives, have questions answered, and have the resources that they need to be successful. You might discover that there are easy solutions to ensure that everyone on your team is working optimally.
- Ask for employee input to make sure that you are providing the right tools to help them be productive. Be sure that your employees are also properly trained to use the tools. For some, it may also be a matter of creating new, purposeful habits to collaborate in new ways.
Employers should also ensure that their policies and practices are updated to align with their efforts of supporting employee work-life balance. For example, if you offer remote work situations, you should formalize this through a Remote Work Policy that both supports the need for employees’ work-life balance and meets the demands of the business.
A new term for this balance is called “strategic flexibility,” a concept that allows employees and their employers to view the work-life balance holistically and offers insight into how employers can build trust and empowerment within their employee groups while still maintaining fair expectations of employees in remote or hybrid work environments. By offering the option of (at least) a hybrid work environment, employees can reduce the high levels of stress they’ve carried in the past around personal and family obligations and seek a better balance without long commutes.
2) Encourage Employees to Protect Their “Me Time”
Personal time is extremely important for a healthy balance. We are able to be more productive at work when we infuse our daily schedules with some downtime. However, working where we live can lead to blurred lines between work and homelife causing some to find it hard to turn off the workday knowing that there might be one more email/text/phone call that awaits their attention. Employees can start to feel that they need to be available 24/7… falling down the slippery slope that leads to burnout.
Employers can help employees to protect their “me time” by fostering a culture that supports that behavior. For example, it can help to set expectations and encourage employees to “turn off work” by a certain time each day. If an email request happens to be sent during a time when an employee should be “off duty,” instill the habit of noting when something isn’t urgent and can wait until their next workday. This can help employees to set healthy boundaries between work and personal life.
Encourage team members to set time aside each day by doing something for them, whether it’s for 10 minutes or for an hour. The goal is for this time to be set aside for something that truly calms their mind. It could be anything from exercising, meditating, reading, watching TV, etc.
Another way to encourage employees to protect their time is by maintaining a sense of structure throughout the day, whether employees are virtual, in-person, or hybrid. Be sure that you are continuing to host regular staff meetings, group meetings, and social gatherings to make time for some fun together as well.
3) Work Smarter, Not Harder
Help team members stay in the loop through weekly “huddles” or calls to keep everyone accountable and connected. Regular one-on-one meetings allow managers and employees to continue to touch base and uphold the objectives and goals set for the year.
Evaluate processes already in place. Don’t look for places to cut corners, but rather look for steps in the process that may not be necessary to complete the same high-quality work. It’s easy to get into the daily habit of following processes when there may in fact be an easier way.
Work-Life Balance Benefits for Employers
Whether you call it work-life balance, work-life integration, or strategic flexibility, employers who embrace it will not only thrive in terms of attracting, engaging, and keeping valuable employees, they will help to prevent burnout, increase productivity across the board, and ultimately become employers of choice with a reputation for supporting work-life balance. If an employer chooses to ignore the work-life balance expectations of the current workforce, they run the double risk of losing great employees who leave for opportunities that better meet their needs and the impossible task of attracting new talent into a less-than-desirable work environment.
Thank you to Cassie Whitehouse, M.Ed., Senior HR Business Advisor for contributing to this Emerging Issues in HR.
Creating an organizational culture that is supportive of the diverse needs of employees is imperative to attracting and retaining the talent you need – not to mention critical to your bottom line. Strategic HR can support your culture strategy through employee surveys, establishing remote and hybrid work policies, identifying retention solutions, developing employee recognition programs, and more. Contact us today!
Do I Have to Give Performance Bonuses to Employees on FMLA Leave?
HR Question:
It’s almost time for quarterly performance bonuses, but one of my employees has been out on approved FMLA leave for the past six weeks. I don’t want to penalize the employee for being out, but it doesn’t seem fair to my other employees if I give this individual their full bonus even if they weren’t here. What should I do?
HR Answer:
It’s understandable that you don’t want to negatively impact your present employees or punish the team member out on leave. That being said, it’s important that however you approach this situation, you do so in a fair, equitable, and repeatable manner. You’re correct that the Family Medical Leave Act (FMLA) does provide benefit and job leave protection for leaves. However, there are some areas of total compensation that can be impacted as long as the reduction is due to the quantity of work and not the quality of work being done. That means that performance-based bonuses can potentially be impacted (i.e., reduced or not paid at all) according to the Department of Labor.
The FMLA is a federal leave law that applies to all companies with 50 or more employees; public agencies; and all public and private elementary and secondary schools. Under the FMLA, eligible employees can receive up to twelve (12) workweeks of unpaid leave during a 12-month period. It also requires group health benefits to be maintained during the leave as if employees continued to work instead of taking leave. Employees are entitled to return to their same or an equivalent job at the end of their FMLA leave. To be safe, many employers lean on the side of “no changes” when their employees return, but in this instance, you do have a right to adjust the bonus the employee would typically be eligible to receive.
According to the Department of Labor, an employer may deny a bonus that is based upon productivity goals as long as the calculation is applied equally to those who would be taking a non-FMLA-protected leave. For example, if you have an employee who is on a leave of absence for approved personal reasons and you prorate their bonus based on actual “time at work,” you could do the same for the employee on FMLA-approved leave.
The Department of Labor goes on to clarify that an employer could deny (or reduce) any bonus based on achieving a goal as long as they are treating employees in similar situations the same. That could be due to attendance, safety, and even productivity. A recent article from the Society for Human Resource Management (SHRM) cited a Second Circuit Court ruling that affirmed that such a proration was “allowed,” so long as employees on FMLA-approved leave are treated like others and not penalized in ways that others are not.
As an employer, you can create policies and precedent that would clear up any potential confusion in the future. For example, you could create a policy that specifies employees must actively be working for the entire month to be eligible for performance bonuses. Another option would be to create a policy that allows for partial payments prorated on the number of days an employee worked in the month. These are two very different options that could be used, as long as FMLA-qualified and non-FMLA-qualified individuals on leave are treated the same.
Finally, be sure that you understand that you cannot discipline an employee for non-performance or for not meeting established productivity goals while out on leave. As an employer, you can maintain work standards, but the quantity of the standard may need to be adjusted as it is directly impacted by the employee’s ability to be present at work – which is protected under FMLA.
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.
Specific Ways HR Can Cultivate an Inclusive Workplace
HR Question:
We’re celebrating the last full week of Black History month, and we want to keep the conversation going. How can our HR department cultivate a more inclusive environment beyond Black History Month?
HR Answer:
While the month of February inspires us to celebrate the successes and recognize the struggles of Black and African American individuals across the US, this focus and spotlight do not have to (and we’d argue should not) be limited to four weeks out of the year. In “The Diversity and Inclusion Revolution,” one of the eight truths the Deloitte Review focuses on is that to create a diverse and welcoming workplace, organizations have to “perform a culture reset, not a tick-the-box program.” Celebrating the work and contributions of Black Americans during one month is not enough to build a diverse culture – rather, it can contribute to a continuous, inclusive facet of a larger and ongoing conversation; one that includes a wide range of abilities, identities, ethnicities, races, and genders.
Studies have shown that increasing the diversity of teams and leadership leads to increased innovation. Additionally, it’s no secret that diverse, inclusive, and equitable workplaces see higher than average financial performance as well. It is easy to see why cultivating an inclusive workplace is not only the right thing to do; it is also a smart business decision. So as you look for ways for HR to continue to nurture and grow a more inclusive environment beyond February, we offer the following suggestions.
Embrace 3 Pillars of Diversity and Inclusion
After studying the most productive workplaces around the world, Gallup identified three requirements for a diverse and inclusive workplace culture:
- Employees are treated with respect
- Employees are valued for their strengths
- Leaders do what is right
By viewing diversity and inclusion through a broader lens as Gallup has, it opens the door for everyone to see how they can play a role. It’s naturally HR’s role to facilitate open conversations amongst employees, managers, and executives, including facilitating eye-opening and bridge-building conversations about how to understand and respect one another’s differences and the value that these differences can bring to our professional and personal lives.
In addition to having meaningful conversations that foster a respectful and inclusive environment, we recommend that you review your employee handbook to ensure that your policies and practices fully support diversity and inclusion in your organization. For example, do you have a clear path for employees to go to HR should they have concerns about the inclusivity of their workplace?
Provide Training that Meets Employees Where They are in the Journey
As your organization continues to foster a culture of inclusion and belonging for everyone, it’s important that your employees have the tools and common language to talk through related topics and issues together. When it comes to understanding diversity and how we can learn from one another, there is not a lack of potential training and development experiences. No matter where your employees are on this journey, it is important to continue to provide education and opportunities for growth. If you don’t feel that you are best equipped to educate employees on the subject matter, you may feel inclined to bring in a reputable speaker or training facilitator to optimize the experience.
Look for Ways to Foster a Sense of Belonging
There are many ways that HR can be purposeful in cultivating an inclusive culture. You can look for opportunities throughout the year to recognize important dates or impactful cultural events and help employees to celebrate them. For example, Juneteenth was recognized as a federal holiday beginning in 2021 – does your organization have plans to celebrate, recognize, or highlight the holiday? Can your employees take time off through established or floating holidays without utilizing their PTO in order to celebrate?
With the goal of creating an inclusive environment, consider providing forums and welcoming spaces for members of various affinity communities to exchange ideas, find mentorships, encourage a sense of belonging, and network. These groups could range from different ethnic and cultural backgrounds to LGBTQIA2S+, women, young and emerging professionals, and more. For example, look to GE’s Employee Resource Groups, which exist for the purpose of welcoming “all employees to learn, connect, advocate, and foster a sense of belonging.”
Get Involved in Your Local Community
As the Deloitte Review emphasized, “match the inside and the outside.” Internal efforts to continue the conversations emphasized during Black History month or other diversity and inclusion initiatives can be more effective when matched with external efforts to make a difference in your local community. Look for outside opportunities through community action groups or nonprofit organizations. You could also consider paying employees for their time and efforts contributing to a more inclusive and welcoming society.
As we mentioned, there are countless ways that HR can cultivate an inclusive workplace, so we hope that these suggestions inspire even more ideas for how you can nurture diversity, equity, inclusion, and belonging in your organization.
Thank you to Mary Mitchell, MBA, SPHR, CHRS; Melinda Canino, MS; and Samantha Osborne Kelly for contributing to this edition of our HR Question of the Week.
Having an inclusive organizational culture that contributes to your organization’s overall success doesn’t happen by accident. It needs to be nurtured. Learn how we can help you to nurture your culture through our DEIB Consulting Services, or contact us today.
How Do We Create An Emergency Preparedness Plan?
HR Question:
We don’t have a formalized emergency preparedness plan, and I think we should probably have one, right? What should we include?
HR Answer:
You’re right. Every employer needs an emergency action plan for many reasons, including to be compliant with the Occupational Safety & Health Administration (OSHA) 29 CFR 1020.38(a) requirement. Beyond the mandate, every employer should want to protect their employees from harm to the best of their ability, as emergencies can be unpredictable, scary, and have impacts beyond your business to the community around you – such as the recent explosion at a Northern Kentucky chemical plant. And finally, if you do not protect employees and they are harmed, they may come back with a lawsuit, as was the case after the recent tornados destroyed a local factory in Mayfield, Kentucky.
Emergency action planning doesn’t have to be hard. You should have a written policy to address a variety of potential emergency situations such as a fire, tornado, hurricane, chemical spill or explosion, active shooter, and major illness or pandemic. When prepping Emergency Response Plans, it’s important that you anticipate the variety of emergencies you might face. Consider the risks that your organization may be exposed to, even if they’ve never happened before, and make a list. Create a separate plan for each separate emergency. After all, how you respond to a flood may be very different than how you would respond to a tornado.
From there, it’s important that you prepare your teams. Clearly communicate these plans to all employees at all locations annually and be sure to practice them on a regular basis. At a minimum, the strongest emergency response plans should include:
- A way of making an immediate announcement of an emergency to employees (e.g., PA system, phones, text, etc.)
- Response procedures including emergency escape routes and safe shelter-in-place designated areas (post these routes/locations at common points in the building)
- Identification of a safety officer and/or employees who may remain to perform critical operations before they evacuate/shelter-in-place (depending on the severity of the emergency) and what those operations are
- Accounting for all employees after evacuating or emergency has concluded
- Rescue and medical duties for employees
- Names or job titles of persons who should be notified of the situation
The beginning of a new year is a great time to remind your employees of your emergency action plans and practice them for a variety of situations. Some resources available to assist in developing plans include:
- Strategic HR’s Emergency Preparedness Toolkit
- OSHA’s How to Plan for Workplace Emergencies & Evacuations
- Ready.gov Business Preparedness Planning and Tools
Special thanks to Lorrie Diaz, MS, for contributing to this HR Question of the Week!
It’s not negative thinking to plan for a devastating event that could harm employees or impact your company’s ability to function – in fact, it’s a good business practice. Bad things happen, but it’s how we prepare for and recover from a disastrous event that often leads to success or failure. Visit our Health, Safety & Security page to learn more about how we can help you with your emergency preparedness needs.
Bonus Grants: A Creative Way to Retain and Reward Key Employees
HR Question:
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.
What to do if the IRS notifies you of Affordable Care Act (ACA) penalty fees
HR Question:
How do I know if my company needs to submit Affordable Care Act (ACA) reporting to the IRS? What are the potential ACA penalty fees if we do it wrong?
HR Answer:
Any employer with self-insured medical benefits or with 50 total Full-Time and Full-Time Equivalent employees is required to report to the IRS. (Not sure if you have 50 Full-Time Equivalent employees? Here’s a guide to do the math.) Failure to report to the IRS could result in two different types of penalty notices, Section 4980H(a) and Section 4980H(b) penalties.
Employers have reported receiving two types of penalty notices
The first type of penalty notice assesses penalty fees for employers who filed in an audited year, but based on the information provided, the IRS does not believe that the employer offered the minimum essential coverage with minimum value to all full-time employees. This could mean that the smallest benefit plan offered to employees was too expensive when compared to their pay. If employers fail to meet this threshold of minimum essential coverage, they could be assessed penalty fees.
The second type of penalty notice that employers have received is a notification that they should have filed as an Applicable Large Employer (ALE), based on their W2s of that year. This means that the company reached the threshold of 50 (or the equivalent of) full-time employees, which triggers a new level of required filings and regulations. This most likely means they should have filed specific forms (the 1094-C and 1095-C), and if they failed to do so, they are being assessed large penalties.
So, what can employers do to potentially reduce the assessed penalties and stop further ACA penalty fees from piling up?
Respond Immediately to ACA Penalty Fees Notifications
The first step – respond without delay! As soon as any notices are received, immediately reach out to the operations manager listed on the notice to let them know that you are actively researching the issue. It is imperative that you do not set this concern to the side. There is nothing more important to take care of in that given moment in terms of cost to your company.
The reason for the urgency in your response time is because the fees will increase exponentially the longer you wait, and they can increase day by day, incurring an astronomical fee. Some employers have seen fees up to $20,000 for missing one form for three years. These fees are typically estimated in the penalty letters, which can be alarming for small employers.
Gather Your Team & Take Action
The second step is to connect with your tax department, tax attorney, and your HR team to begin to gather the information necessary to file any 1094-C and 1095-C forms. If you do believe you should have filed and did not, ask for an extension as soon as possible. This will reduce the ongoing daily penalties. If you don’t respond and ask for an extension, it’s possible that a levy may be filed against your organization after thirty days.
If you did not have an HRIS provider filing for you at the time, it can be convoluted to pull the information necessary. These forms often require enrollment data, benefit waivers, and historical work hours, which is why it’s best to include your HR department while tackling this process.
It’s worth noting that if your organization crossed over the fifty-employee threshold mid-year and filed appropriately in the years following, we would encourage you to work with your tax department or attorney to determine if you qualify for transition relief. It is possible to reduce fees if you qualify and file for the missed year.
As organizations continue to implement and interpret the Affordable Care Act, there may be bumps in the road. Be sure to partner with your HR department and attorney to ensure your organization is following guidelines, filing appropriately, and quickly addressing any notices from the IRS.
Special thanks to Mary Mitchell, Sr. HR Business Advisor and Certified Healthcare Reform Specialist, for sharing her ACA expertise and contributing to this HR Question of the Week.
Keeping up with ever-changing ACA regulations can feel like an insurmountable task when you have so many other things on your HR plate. If you are unsure if your company should be reporting for ACA, Strategic HR can help to assess your employee calculations to determine if it is needed. We can also help you to stay on top of regulations relevant to your company, assist with your recordkeeping, and advise you on when to seek legal counsel. Learn more about our HR Compliance & Recordkeeping Services or contact us today!
This article does not, and is not intended to, constitute legal advice. Information and content presented herein is for general informational purposes only and readers are strongly encouraged to contact their attorney to obtain advice with respect to any legal matter. Only your individual attorney can provide assurances that the information contained herein is applicable or appropriate to your particular situation or legal jurisdiction.
Can I Ask if My Employees Are Vaccinated?
Can we ask if our employees are vaccinated? Isn’t this a HIPAA violation or an illegal inquiry under the ADA or somehow confidential information?
Employers can ask for proof of vaccination unless there is a state or local law or order to the contrary.*
When an employer is requesting or reviewing medical information in its capacity as an employer, as it would be when asking about an employee’s vaccination status, it is considered to be an employment record. In such cases, HIPAA would not apply to the employer. The Americans with Disabilities Act (ADA) will govern the collection and storage of this information.
The Equal Employment Opportunity Commission (EEOC), which enforces the ADA, has stated that asking about vaccination is not a disability-related inquiry, though it could turn into one if you ask follow-up questions about why the employee is not vaccinated. Asking a yes or no question, or requesting to see the employee’s vaccination card, does not violate any federal laws or require proof that the inquiry is job-related.
Finally, just because employees think that something is or should be private or confidential doesn’t mean they can’t be required to share it with their employer. Social Security numbers, birth dates, and home addresses are all pieces of information an employee may not want to advertise, but sharing is necessary and required for work. Vaccination status is similar. However, all of this information, once gathered, should not be shared by the employer with third parties, except on a need-to-know basis.
*It appears that some governors may attempt to prevent certain entities from requiring “immunity passports” (e.g., proof of vaccination) through an executive order (EO), though as of July 31, none of the EOs already issued appear to apply to private businesses and their employees. Also note that if there is a law in place that prevents treating vaccinated and unvaccinated employees differently (like in Montana), you may be able to ask, but not take any action based on the response.
Should we keep a record of who is vaccinated or make copies of vaccination cards? If we do, how long should we keep that information?
If you’re asking about vaccination status, you’ll want to keep some kind of record (so you don’t have to ask multiple times), but how you do this is up to you, unless state or local law has imposed specific recordkeeping requirements. You may want to keep something simple like a spreadsheet with the employee’s name and a simple “yes” or “no” in the vaccination column. If you’d prefer to make a copy of their vaccination card, that should be kept with other employee medical information, separate from their personnel file. Per OSHA, these records should be kept for 30 years.
If we keep a record of who is vaccinated, can we share it with managers who will be required to enforce policies based on that information, such as masking and social distancing?
Yes. We recommend not sharing this information any more widely than necessary. While anonymized information is okay to share (e.g., “80% of our employees are vaccinated”), each employee’s vaccination status should be treated as confidential, even if the fact that they are wearing a mask to work seems to reveal their status publicly. Obviously, managers will need this information if they are expected to enforce vaccination-dependent policies, and employers should train them on how they should be enforcing the policies and how and when to escalate issues to HR or a higher level of management.
Special thanks to the HR Support Center for providing this edition of our HR Question of the Week.
For further COVID-19-related resources, check out our COVID-19 Employer Resources page or contact us for direct assistance.
This article does not, and is not intended to, constitute legal advice. Information and content presented herein is for general informational purposes only and readers are strongly encouraged to contact their attorney to obtain advice with respect to any legal matter. Only your individual attorney can provide assurances that the information contained herein is applicable or appropriate to your particular situation or legal jurisdiction.
How Can HR Professionals Reduce Workplace Violence?
HR Question:
How can we reduce workplace violence?
HR Answer:
The numbers are staggering and undeniable. According to SHRM’s 2019 study, 48% of HR professionals reported some type of workplace violence incident in their organization. The U.S. Bureau of Labor Statistics also reported in the same year there were 888,220 events or exposures involving injury or illness. Of those, 20,870 were assaults in the workplace. Even worse, 454 of those assaults were fatalities.
Workplace violence has always been on the radar for HR professionals at some level. They are the first to encourage the involvement of an Employee Assistance Program (EAP); they regularly coach supervisors on having difficult conversations with employees; and often, they serve as sounding boards for employees when they are distraught or concerned. Through actions and behaviors, they work to create cultures of engagement, awareness, and even compassion and grace when faced with difficult employee relations issues regularly. Despite all of these efforts, it is sometimes not enough.
What else can be done beyond the EAP to help reduce and prevent workplace violence incidents?
Proper planning and assessment can help to identify risks.
With proper planning and worksite assessment, employers can identify ways to limit potential exposure, reducing the likelihood of incidents occurring. The Occupational Safety and Health Administration promotes a well-written and practiced workplace violence prevention program. But to truly be effective, programs like this need to contain engineering controls and administrative controls in addition to training.
The National Institute for Occupational Safety and Health (NIOSH) has developed specific guidelines to assist with violence prevention in a variety of work environments. Some helpful engineering controls include bright lighting, silent alarms for front desk/access points, video surveillance, access control, and door locks/badge systems throughout the building to limit the access points.
When creating your plan, remember to work with your local firefighters and/or police to get specific direction or even a complete evaluation of your worksite preparedness plan. There are also many paid professionals and consultants that will help write and/or review your plan specifically for your organization. In this situation, one size does not fit all, so be sure to get some expert advice in creating and training on a proper plan.
Encourage open communication – If you see something, say something.
Encourage open communication with employees, as raising and addressing concerns today can protect someone tomorrow. Create a culture where employees are free to voice their issues in a healthy manner and foster respect within the workplace. Remember to take all staff communications seriously. Even the smallest event can trigger individuals, so properly plan all messages and their delivery, especially if you are implementing any type of change.
Ask employees about safety concerns.
Be involved. Ask questions. Ask employees if they feel safe and what could be done to create a safer environment. Ask them how they are doing. Ask them what concerns or issues they have (and follow up). Focus on early detection of potential issues. HR professionals can play an important role by asking questions and being involved with the goal of early intervention and prevention of workplace incidents.
Leverage technology to identify and address incidents quickly.
New technology is quickly becoming helpful in ways we could have never imagined. A few examples include the following tools out in the market today.
Response technologies can be used to quickly activate the need for first responders. There are tools with location and geofencing that allow responders to pinpoint the actual spot where an event is reported. Active shooter research tells us that in many cases there is a very short window to intervene. Having location accuracy helps improve the chances of an effective and timely response.
Digital technology tools continue to evolve in this space. There are apps, for example, that organizations can provide to employees that allow for confidential reporting of workplace concerns. Think “Ethics Line” gone mobile. These tools allow employees to report concerns – confidentially – and in real-time. The employee report can even include uploaded photos, video, or audio of the behaviors or events they are concerned about or have witnessed, assisting with a future investigation if necessary.
Acoustic gunshot detection is another type of technology that has been implemented in some worksites. These types of systems automatically detect the sound and then tie it to the company’s security systems. It can then sound an alarm, notify the security team, and even dispatch help… long before someone onsite can even discern if the noise was a gunshot or make a call for help.
More sophisticated security programs and camera systems can also assist with potentially violent situations. Old camera systems are reactive, sometimes only activating when a commotion activates the camera. New systems today are proactive, using facial recognition. The systems can send signals if an unauthorized person enters a building or even if someone is carrying a weapon onto the worksite.
As the number of incidents continues to grow, HR professionals and business leaders need to prepare their worksites in ways they have never done before. It is important to remember that the culture we create, the programs we provide, and the tools and technology we implement can help to calm a potentially violent situation you did not expect. Human Resources can take an active role “beyond an EAP referral” to prepare the workplace, staff, and employees to handle these unpredictable situations and even potentially save lives.
Special thanks to Patti Dunham, MBA, MA, SPHR, SHRM-SCP for contributing to this edition of our HR Question of the Week!
In 2019, Strategic HR and MYCA Learning partnered together to support organizations in their search for essential training in accessible ways, resulting in the creation of our Active Shooter Preparation e-Learning Course. Geared toward preparing and protecting our communities should they face the unthinkable, this fifteen-minute course seeks to educate participants on how to be aware, how to assess their surroundings, and how to make a plan.
How To Conduct A Workplace Harassment Investigation
In 2020, the EEOC reported over 24,000 claims of harassment and over 11,000 claims of sexual harassment. Harassment in the workplace impacts more than just the individuals in the situation – these conflicts (and how leadership responds) can negatively impact both the culture and the reputation of the company. You must be prepared to quickly respond to harassment claims in order to protect both your employees and the company as a whole. In order to do so, you must have well-known reporting policies and easily implemented workplace harassment investigation procedures.
The first element to consider is to ensure policies and procedures are in place, clearly communicated to employees, and are consistently applied across your organization. When a situation escalates out of an employee’s control, it’s key for them to know how to react, how to report, and who to call.
It can be challenging to uncover the details, key players, and facts in a workplace harassment investigation. It requires an experienced and savvy interviewer to avoid risk and to provide fair and just outcomes. So what steps are important when conducting internal investigations?
Separate the Employees
When HR receives a complaint of harassment, the parties involved should be immediately separated from further contact. This may cause work disruption; however, it’s prudent to prevent any further exposure to what may be harmful interaction. Additionally, it’s important to emphasize that retaliation will not be tolerated under any circumstances.
Conduct Thorough Interviews to Understand the Facts
Conducing the workplace harassment interviews may be the most difficult part of the investigation puzzle. It takes strategic planning and a conscious effort to conduct the investigation without leading the participants in any way. Interviewers should start with basic facts such as details of the incident, when it took place, where it took place, how often the interaction occurred, with whom, how the incident made the employee feel, and the names of witnesses or any evidence such as texts, emails, photos, etc. If the complaining employee is willing to prepare a written statement, the statement can be used to compare interview notes and to ensure nothing was omitted and miscommunicated.
How to approach interviewing the complainant:
When interviewing the complainant, interviewers should explain that every effort will be made to protect the conversations and the individual’s privacy. However, they must also be made aware that in order to properly conduct the investigation, the alleged harasser and other members of leadership may need to be informed. Employees, at times, report an incident, but state that they “don’t want to get anyone in trouble” or “don’t want to get anyone fired.” If you (the employer) are made aware of a potential situation of misconduct, the employee reporting the incident must be informed that you will investigate and take appropriate action in line with organizational policy, integrity, and federal and state laws.
The last part of the interviews should include the timeline for when you plan to conclude the investigation and share outcomes. A best practice is to investigate and return results in no more than two weeks. Rapid closure is the goal.
How to approach interviewing the accused harasser and witnesses:
When interviewing the alleged harasser, interviewers should provide necessary facts about the complaint and ask questions in an effort to provide the employee with an opportunity to share their perspective and/or to provide witnesses and evidence in their favor. Keep in mind, witnesses are not always cooperative. They may wish to stay uninvolved or attempt to protect a friend. The interviewer must gently persuade witnesses, focusing on the importance of their role in the process. Again, the interviewer must ask questions without leading or making any assumptions until all statements and evidence are heard and collected. Impartiality must be maintained for the entire investigation process.
Review the Evidence
Once the investigation is complete, the interviewer should thoughtfully and completely review all notes, materials, and evidence to determine if any company policies have been violated or laws broken. This step can have wide-reaching implications – a flawed investigation can lead to poor morale and discourage employees from reporting future situations. Therefore, the investigator’s role is imperative.
Prepare a Written Report and Concluding Actions
As the investigation wraps up, the investigator should prepare a written report, outlining the facts and violations (if any), used to determine if other action is warranted. If policy or legal violations did take place, management must decide on discipline or corrective action, keeping in mind that this action will set a precedent for future violations.
The final step in the process is to meet with the employee who reported their concerns. The manager or investigator should inform the employee that action was taken to address the problem or that the investigation could not corroborate that company policy was violated. It’s important to note if disciplinary action was taken, the company should not share details about the action with the accusing employee.
If there are concerns with privacy, neutrality, or experienced investigators, outside resources such as HR Consultants or law firms may be engaged to conduct the investigation.
Special thanks to Angela Dunaway, SPHR-SHRM-CP, for contributing to this edition of our Emerging Issues in HR.
Need a neutral third party to conduct internal investigations? Strategic HR can help! Visit our Workplace Investigations page to learn more.
Preparing For a Potential Active Shooter Incident
Active shooter incidents are an unfortunate reality facing us all. Active shooter situations are unpredictable and can evolve quickly. It is important to provide your employees with the information needed to help prevent and prepare for the unthinkable.
How to Prepare – create an Emergency Action Plan:
- Clearly identify possible evacuation routes – have at least two.
- Maintain up-to-date emergency contact information for all employees to provide to local authorities.
- Practice your evacuation and response plan annually.
How to Respond – it is important that you act swiftly as an active shooter situation often evolves quickly:
- Run: Safely evacuate the area when possible to do so and call 911 when out of the line of fire. Help others evacuate when possible and stop anyone from entering the active shooter zone. It is important to keep your hands visible so that responders on the scene do not view you as a threat and follow all instructions given by the police responding.
- Hide: If you cannot evacuate safely, barricade yourself as best as possible and stay quiet. Lock the door or block an entrance with a heavy object. Remember to silence your phone, including vibration, and dim your screen if possible.
- Fight: Lastly, if you are unable to escape or hide, be prepared to fight and to act decisively. Improvise weapons from your surroundings and throw things at the shooter. For example, a fire extinguisher makes an excellent defense tool both in weight and to spray at the shooter. Work as a team to disable the shooter and remember that you are fighting for your life.
Call and Text 911 for Help – provide as many details as possible, including:
- Location of the shooter.
- Your current location.
- Context of the situation.
- Number of shooters.
- Describe the shooter as accurately as possible.
- Number and types of weapons.
- Number of people in the locations.
- Any actions taken.
How to Interact with Law Enforcement on Scene:
- Remain calm, follow instructions and keep your hands visible at all times.
- Put down anything in your hands; raise your hands and spread your fingers.
- Avoid pointing, screaming, or yelling.
- Do not stop an officer for help during evacuation.
- Do not share anything on social media.
Law enforcement will be on the scene to stop the active shooter as quickly as possible. Any injured victims will not be helped until the shooter has been neutralized and the area is safe.
For a more customized approach, visit our Active Shooter Training to learn more about how Strategic HR’s team can create a plan for your organization.
In 2019, Strategic HR and MYCA Learning partnered together to support organizations in their search for essential training in accessible ways, resulting in the creation of our Active Shooter Preparation e-Learning Course. Geared toward preparing and protecting our communities should they face the unthinkable, this fifteen-minute course seeks to educate participants on how to be aware, how to assess their surroundings, and how to make a plan.
How to Handle Unemployment Fraud?
HR Question:
Our company is getting unemployment notices for people that have never worked here, or in some cases, people who are still employed. How should I handle this unemployment fraud?
HR Answer:
The increasing level of unemployment fraud has been a source of frustration for states, employers, and individual employees. Various US congressional packages providing supplement unemployment relief have provided not only relief for the unemployed, but also an opportunity for criminals to seek ways to attempt to benefit. The US Department of Labor has reported “a surge in fraudulent unemployment claims filed by organized crime rings using stolen identities that were accessed or purchased from past data breaches.”
States that were already overwhelmed by the unexpectedly high levels of unemployment insurance (UI) claims are now having to pursue fraudulent claims to recover benefits that should not have been paid. Employers’ unemployment rates may increase as a result, and employees find themselves dealing with identity theft concerns.
In this article, we’ll share information and resources that employers and employees can use to understand who are the most likely victims and what to do should they suspect or fall victim to unemployment fraud.
What Can Employers Do?
There are some measures that employers can take to address unemployment fraud. HR professionals should be on alert to scrutinize any notices that they receive from state unemployment administrators to ensure their accuracy. If fraud is suspected, be sure to follow your state’s reporting instructions. Note that some states require both the employee and employer to file reports.
In addition, it’s important to inform your employees about the prevalence of identity theft and unemployment fraud scams that are occurring across the United States. As a proactive measure, consider sharing the information below regarding what employees can do to understand if they might be at risk for unemployment fraud and what to do if they become a victim.
What Can Employees Do?
Employees who have had a fraudulent unemployment claim filed in their name are recommended to refer to the Unemployment Insurance Fraud Consumer Protection Guide from the U.S. Department of Justice’s National Unemployment Insurance Fraud Task Force. This guide explains:
- Who might be more at risk of becoming a victim
- Signs that you might have been a victim of a crime
- Steps to take if you believe you’re an unemployment fraud victim
- How to protect yourself from becoming a victim
- Unemployment insurance fraud resources and links for each state
According to the UI Fraud Consumer Protection Guide, if a UI claim has been filed in your name that you did not file, you should:
- Report it to your state workforce agency immediately.
- If you’re currently working, notify your employer of the fraudulent claim as they may also need to file documentation.
- File a complaint using the National Center for Disaster Fraud form or by calling the Disaster Fraud Hotline at (866) 720-5721.
Additionally, employees are encouraged to go to annualcreditreport.com to ensure they have not been a victim of identity theft. Employees may also want to place a free one-year freeze on their credit by contacting any one of the three nationwide credit reporting bureaus listed below. When one bureau is notified, they must notify the other two.
- Equifax: 800-525-6285
- Experian: 888-397-3742
- TransUnion: 800-680-7289
Review Cybersecurity Practices
With the rise of unemployment fraud cases using information that was obtained from previous data breaches, it’s important that employers and employees implement good cybersecurity practices. This presents an opportune moment to review how your organization protects personally identifiable information (PII), such as name, address, birth date, social security number, etc. Do you encourage employees to create unique and strong passwords? Do you require two-factor authentication or alternate solutions to increase your cybersecurity? Whatever safety measures you have in place, we recommend that you continue to review them to ensure that you are covering all of the necessary areas and that your employees are following cybersecurity practices consistently.
Special thanks to Cathleen Snyder, SPHR, SHRM-SCP, and Melinda Canino for contributing to this edition of our HR Question of the Week.
Still have questions? Contact our HR experts! Give us a call at 513.697.9855 or email us at Info@strategicHRinc.com.
