6 Steps to a More Effective Performance Management Program

 

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Traditional methods of managing performance aren’t working anymore. Companies are moving away from traditional performance management tools, like annual reviews, to new techniques that emphasize real-time feedback. You know the drill: managers and employees sit down once a year to review performance. These performance reviews assess an employee’s performance on a scale, or give it a numerical rating. And then, in some cases, employees are given a ranking compared to other employees.

A performance system used in figure skating or competitive cooking shows may not be the best way of evaluating employees in the workplace. When it comes to the traditional performance review process, consider: Traditional performance management approaches aren’t effective because they weren’t designed for the current workforce. Today, with a tight labor supply and the nature of work very different from the industrial past, organizations must focus on developing people, rather than rating them. This requires a shift to performance development. Here’s how you as an HR professional can help your management team create a thoughtful performance development plan.

This is important for two reasons: to make the case to management that there is room for improvement in your current performance management system and, later, to provide baseline metrics to which you can compare your system after the shift to performance development. Your audit should ask the following questions: As part of your evaluation, also assess current organizational performance. A shift to performance development will see organizational performance metrics improve, and you want to be able to quantify this improvement.

Let your senior management team know that performance management may no longer be meeting your company’s needs. Two-thirds of companies are shifting from traditional performance management to an emphasis on developing talent and providing continuous feedback. Then present the results of your audit to senior management. What are the areas that need to be improved? Provide examples of how performance development will help improve these areas. For instance, if your employees rarely receive feedback outside of their annual performance review, show how alternatives to the review, such as consistent coaching or monthly or weekly , can provide your employees with regular feedback.

—tlnt.com


Saving For Your Children's Education

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This month’s CenterStage features Kevin Hagerty, a Financial Advisor at Saxon. With over 18 years of experience specializing in financial planning solutions, Kevin provides his best advice on educational funding, specifically on 529 Savings Plans.

Educational Funding from Every Angle

In the long run, saving for your children’s education is considerably less costly than borrowing money later. Now more than ever, parents and grandparents are interested in alternate forms of schooling, such as private school. This means educational debt takes place long before college and is why President Trump implemented tax law changes to allow 529 Savings Plans to be used on more than just college.

A key benefit of 529 plans is the potential for compounded, tax-free growth on account funds. Similar to other investments, the earlier the account is started and left untouched, the more funds can grow over the years.

Kevin says, “Whether it’s a car, a TV, a refrigerator, education, retirement, or healthcare – the cost of everything continues to increase.” Having savings to fall back on through the 529 Savings Plan is immensely helpful but most importantly, it gives you options. One of the most frequently asked questions by parents is when they should start saving for their children’s education, and the unfortunate fact is – with inflation – you’re likely already behind. It’s tough for parents, especially new parents, to juggle the high costs of every little thing. “I recommend plugging estimates into an online cost calculator,” Kevin suggests. “Nowadays, those calculators will take into consideration everything – from taxes to inflation to annual income. It’s a great way to see how much a parents’ savings account should aim for.

What is a 529 Savings Plan?

“529 plans are versatile savings accounts that offer federal, and sometimes state, tax benefits. depending on the state you live in, plans are operated in many different ways. You may be able to purchase prepaid tuition credits to use in the future or invest in mutual fund options that grow your 529 account value toward the future educational cost of your child.”

-SavingForCollege.com

K-12 Educational Funding & Unused Funds

Kevin cites the 529 Savings Plan as one of the best educational saving plans on the market due to the new tax law changes. Under the Tax Cuts and Jobs Act, families can now use up to $10,000 annually on tuition expenses at a private elementary or secondary school, increasing educational opportunity for many families. Additionally, under this type of plan, anyone can contribute to the savings – not just the parents. So, family members who would like to help the kids out can contribute.

Many people mistake the 529 Savings Plan to just be for tuition, when in fact the list of eligible educational expenses that it covers is quite broad, including things like books, room, board and supplies. So, that expensive laptop your child’s school requires? Covered. Ask your advisor for a complete list. As far as unused funds in an account go, if you have more than one child and the first child doesn't use all the funds for his or her educational expenses, then you can transfer the funds into the other child's name.

Conclusion

Like most financial planning matters, what will ultimately benefit your family most will be unique to your specific situation. Working with a financial advisor, such as Kevin, to discuss factors unique to your situation and design an appropriate strategy can be easier than you think. Contact Kevin today at 513.333.3886 or shoot him an email at khagerty@gosaxon.com for more information.</span style>

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Competing for talent in a Gen Z world

As 2018 progresses, HR managers are well advised to start stepping out of their comfort zones. Because Generation Z is beginning to surge into the workplace, forcing the reinvention of everything from benefits to recruiting. Your relevance in the war for talent may hang in the balance.

You’ve been hearing for some time now about the challenge of engaging a multi-generational workforce. But it’s time to think beyond the Millennials, and take a good look at the Gen Zs (born after 1995). They have a whole new set of expectations and values that are forcing employers to re-evaluate how they recruit, retain and, especially, engage their people. Start working on your battle plan in 2018 (and beyond) to avoid losing the talent battles.

They have decided views on how they expect to be treated and managed and how they respond if they don’t think their employer is measuring up. It’s a function of their upbringing in a hyper-connected world. According to Pew Research, only 14 percent of U.S. adults had Internet access in 1995, but that exploded to 87 percent by 2014. Small wonder that for the Zs, it’s the always-on and available tech-enabled connections to networks of people and information that rule. It’s how Zs learn and solve problems and it influences their expectations.

Here’s what it all means for your workplace and how you will need to compete for talent moving forward.

 

Legacy benefits and old attitudes need replacing now

The Zs aren’t merely connected. They share aggressively. Studies show that if their experiences – with a brand or a product or an employer – are negative, this generation will happily tell everybody about it online, including on Glass Door, a fast growing site that reviews millions of employers. That makes it important to foster a positive culture and work environment, and provide the types of benefits that will attract the Zs, keep them happy and ideally inspire them to spread the word.

To that end, take a long, hard look at your employee benefits: Too many employers still offer legacy employee packages that have changed little in the last two decades. Will they be good enough to woo the Zs and keep them satisfied? In fact, the Zs are motivated by the total deal, not just financial compensation. They want unique benefits that are personalized for them right down to the individual level.

Think about the 22-year-old who’s working in an urban setting, maybe with a pet at home, doesn’t have a lot of time to shop and is saddled with student loans. What are the priorities? A plan offering vision, life or disability insurance? Or a benefits package that provides a personal concierge and maybe dog walker, student loan repayment and an identity theft program, too? Best-of-class employers will offer up a robust mix of traditional and non-traditional benefits that cater to the individual employee’s lifestyle needs.

 

VR and gamification: Critical tools in winning Gen Z talent

Even as the Zs mature, there’s a trend toward a blending of personal and work lives as outside influences bleed into the workplace. When it comes to virtual reality, this generation of digital natives is enthusiastic over its potential use in the workplace.

There’s been a 250 percent jump in VR companies since 2012 and the technology’s significance is for more than just promoting productivity by connecting people in different locations for virtual meetings. It’s also a good recruiting tool, a way of letting prospective hires “experience” your environment so they are better able to tell before they take a job if it’s right for them.

Gamification is another Z activity that’s bleeding into business and affecting recruitment and hiring. Picture Silicon Valley’s “code-offs,” where prospective developers compete during a set time period to find the best solution to a specific design challenge. The winner gets the job. It certainly makes resume screening seem obsolete by comparison.

This incoming generation has a lot to offer employers who value the kind of fresh perspective it represents. The next big challenge will be reflecting that appreciation in creative approaches to winning and keeping their hearts and minds.

Read the article.

Source:
Barone M. (1 March 2018). "Competing for talent in a Gen Z world" [Web Blog Post]. Retrieved from address https://www.benefitspro.com/2018/03/01/surge-of-gen-z-workers-changing-how-employers-comp/


Spot the differences between productivity and busyness

Productivity and busyness are often used interchangeably. This is a mistake. When you think about it, you can be busy and still get nothing really done.

Productivity is efficiently using time to change something, whether it be improving a project or taking care of an errand. Efficiency is the key word here, as no one would consider, say, spending an entire day writing a letter efficient.

Busyness is being occupied with a particular activity to the point where it becomes a priority. Spending an entire day writing a letter is busyness, but it wouldn’t be considered productive. Yet, we can say “It was a busy day” and it could be, mistakenly, interpreted as productivity.

The difference matters because productivity requires strategy: What works best, what is most important now, what matters over other tasks and other standards. Busyness prioritizes going forward, whether or not it is the best thing to do right now.

Being productive rather than busy requires stopping, strategizing and consideration before taking action. To be truly productive, you must not be afraid of pausing – and pausing feels like the opposite of being busy. You must let go of the need to feel busy.

One other simple tell: Productivity tends to give energy, while busyness tends to take it away. Getting things accomplished creates momentum as well as confidence, while doing busy work often makes inertia and frustration since it usually doesn’t lead to progress.

Read the article.

Source:
Brown D. (21 February 2018). "Spot the differences between productivity and busyness" [Web Blog Post]. Retrieved from address http://workwell.unum.com/2018/02/spot-the-differences-between-productivity-and-busyness/


Two opportunities created by association health plans

The new regulations around association health plans (AHPs) — which loosen restrictions for small businesses, franchises and associations — create two distinct opportunities in the benefits industry.

The first is for brokers, who will be crucial advisors to employers eligible for the new coverage options now available.

The second opportunity is for benefits and HR tech vendors, who will be instrumental in managing the transactional and administrative challenges that would otherwise hinder AHP success.

What challenges do association health plans represent? Let’s consider an example — the Nashville Hot Chicken restaurant franchise.

Let’s say Nashville Hot Chicken has 1,000 franchisees, each with five full-time employees. Before AHP options became available to this organization, these five-employee groups would either have had to pursue small group coverage, or employees would have had to find individual plans.

Both options likely would have been prohibitively expensive for the organization or the employees. With the new AHP regulations, however, these 1,000 franchisees may be able to pull all 5,000 workers together and create a large group benefits plan.

In doing so, they would reap the advantages of collective purchasing, just like large groups do. However, this AHP would not work like a regular group plan.

If a regular group has 5,000 employees, they would all be part of a centrally-operated payroll system and the insurance companies would receive just one check for all of the employees enrolled at the group. But under an AHP of franchisees, all the payroll systems would operate independently, and there is no clear, centralized entity to pay carriers.

This creates a massive administrative headache for Nashville Hot Chicken corporate, as well as all the individual franchise owners. In other words, who is going to manage the AHP?

Here’s where the brokers come in. Employers need brokers to walk them through all the complexities of AHPs, including sourcing carriers, third-party vendors, and compliance needs.

It would also be incredibly impractical to manage 5,000 employees through 1,000 separate businesses without a benefits and HR platform.

But brokers can provide a solution to this challenge by adopting a platform. With a benefits and HR system, the various administrative differences from franchisee to franchisee can be accounted for, while still allowing the 5,000-life group to enroll in the group offering.

By removing the administrative headache, benefits tech makes AHPs a real option for Nashville Hot Chicken. But it also gives the tech-savvy broker a clear leg up on the competition. A broker without a tech solution will be at a severe disadvantage for Nashville Hot Chicken’s business compared to a broker who has a platform.

So as small employers, franchisees and industry associations band together for group coverage, benefits tech can give brokers a competitive differentiator for this new business segment.

Read the article.

Source:
Tolbert A. (1 March 2018). "Two opportunities created by association health plans" [Web Blog Post]. Retrieved from address https://www.benefitspro.com/2018/03/01/two-opportunities-created-by-association-health-pl/


6 Steps to a More Effective Performance Management Program

Traditional methods of managing performance aren’t working anymore. Companies are moving away from traditional performance management tools, like annual reviews, to new techniques that emphasize real-time feedback. You know the drill: managers and employees sit down once a year to review performance. These performance reviews assess an employee’s performance on a scale, or give it a numerical rating. And then, in some cases, employees are given a ranking compared to other employees.

A performance system used in figure skating or competitive cooking shows may not be the best way of evaluating employees in the workplace. When it comes to the traditional performance review process, consider: Traditional performance management approaches aren’t effective because they weren’t designed for the current workforce. Today, with a tight labor supply and the nature of work very different from the industrial past, organizations must focus on developing people, rather than rating them. This requires a shift to performance development. Here’s how you as an HR professional can help your management team create a thoughtful performance development plan.

This is important for two reasons: to make the case to management that there is room for improvement in your current performance management system and, later, to provide baseline metrics to which you can compare your system after the shift to performance development. Your audit should ask the following questions: As part of your evaluation, also assess current organizational performance. A shift to performance development will see organizational performance metrics improve, and you want to be able to quantify this improvement.

Let your senior management team know that performance management may no longer be meeting your company’s needs. Two-thirds of companies are shifting from traditional performance management to an emphasis on developing talent and providing continuous feedback. Then present the results of your audit to senior management. What are the areas that need to be improved? Provide examples of how performance development will help improve these areas. For instance, if your employees rarely receive feedback outside of their annual performance review, show how alternatives to the review, such as consistent coaching or monthly or weekly , can provide your employees with regular feedback.

—tlnt.com


Boring Little Miracles

From SHRM, this article goes into the importance of "boring little miracles" in the workplace


The success of an organization is often borne on the backs of people performing boring little miracles.

Boring little miracles don’t make headlines. They, perhaps purposely so, fly under the radar, disguised as everyday tasks performed under pressure or work that doesn’t feel like much to the person performing it. People performing boring little miracles get the job done and then pack up and go home like it was no big deal.

But it IS a big deal.

Boring little miracles add up over time. They are the compounding interest of organizational productivity, and they are performed by people who invest early and often. These miracles sneak up on you and can quickly become the expectation rather than the exception.

Boring little miracles are still miracles.

They aren’t jobs or tasks that are easy, they just appear that way because of the person doing the work. Highly experienced and highly trained professionals doing what they do don’t have to sweat the work that other people dread. They just do it.

“Hey, she’s always been good at this stuff”," or “Well, he’s the only one who knows how to do it,” you might hear around the office. But you shouldn’t take it for granted.

Recognize and reward the behavior you want to see more of. Make space for the work that grabs headlines AND the work that doesn’t in your rewards and recognition structure. Pay special attention to the people who prefer to stay out of the spotlight; honor their work and contributions because it is important, not necessarily because it grabs attention.

Make recognition for this work specific. Make it count.

Do it well enough, and your team and organization might just become a boring little miracle itself.

Read the article.

Source:
Escobar C. (26 February 2018). "Boring Little Miracles" [Web Blog Post]. Retrieved from address https://blog.shrm.org/blog/boring-little-miracles


The decline of the employment drug test

Employers are struggling to hire workers in tightening U.S. job market. Marijuana is now legal in nine states and Washington, D.C., meaning more than one in five American adults can eat, drink, smoke or vape as they please. The result is the slow decline of pre-employment drug tests, which for decades had been a requirement for new recruits in industries ranging from manufacturing to finance.

As of the beginning of 2018, Excellence Health Inc., a Las Vegas-based health care company with around 6,000 employees, no longer drug tests people coming to work for the pharmaceutical side of the business. The company stopped testing for marijuana two years ago. “We don’t care what people do in their free time,” said Liam Meyer, a company spokesperson. “We want to help these people, instead of saying: ‘Hey, you can’t work for us because you used a substance,’” he added. The company also added a hotline for any workers who might be struggling with drug use.

Last month, AutoNation Inc., the largest U.S. auto dealer, announced it would no longer refuse job applicants who tested positive for weed. The Denver Post, owned by Digital First Media, ended pre-employment drug testing for all non-safety sensitive positions in September 2016.

So far, companies in states that have legalized either recreational or medicinal marijuana are leading the way on dropping drug tests. A survey last year by the Mountain States Employers Council of 609 Colorado employers found that the share of companies testing for marijuana use fell to 66 percent, down from 77 percent the year before.

Drug testing restricts the job pool, and in the current tight labor market, that’s having an impact on productivity and growth. In surveys done by the Federal Reserve last year, employers cited an inability by applicants to pass drug tests among reasons for difficulties in hiring. Failed tests reached an all-time high in 2017, according to data from Quest Diagnostics Inc. That’s likely to get worse as more people partake in state-legalized cannabis.

“The benefits of at least reconsidering the drug policy on behalf of an employer would be pretty high,” said Jeremy Kidd, a professor at Mercer Law School, who wrote a paper on the economics of workplace drug testing. “A blanket prohibition can’t possibly be the most economically efficient policy.”

Companies are having a hard enough time hiring, with unemployment hovering around 4 percent. “Employers are really strapped and saying ‘We’re going to forgive certain things,’” said James Reidy, a lawyer that works with employers on their human resources policies. Reidy knows of a half-dozen other large employers that have quietly changed their policies in recent years. Not all companies want to advertise the change, fearing it might imply they are soft on drugs. (Even former FBI director James Comey in 2014 half-joked about the need for the bureau to re-evaluate its drug-testing policy to attract the best candidates.)

Why the change? Pre-employment testing is no longer worth the expense in a society increasingly accepting of drug use. A Gallup poll in October found that 64 percent of Americans favor legalization. That’s the most since the company first started asking the question in 1969, when only 12 percent supported changing the plant’s status. Drug tests costs from $30 to $50 a pop, but the potential costs to an employer are far greater than the actual test.

In addition to helping ease the labor market, eliminating drug testing could have even broader benefits for the economy, said Kidd. Employers could hire the best, theoretically most-productive workers, he said, instead of rejecting people based on their recreational habits. Companies have said they lose out to foreign competitors because they can’t find people who can pass drugs tests, a particularly acute problem in the areas most affected by the opioid crisis.

Some jobs, such as those involving the use of heavy machinery, will always require drug tests. Excellence Health still drug-tests any employee working on a government contract, even in states where weed is legal. Companies are also reserving the right to test after an accident or if an employee comes to work notably impaired.

Not all companies are ready to change course. Restaurant Brands International Inc., which owns Burger King, hasn’t altered its corporate marijuana policy, said Chief Executive Officer Daniel Schwartz. Ford Motor Co. still treats pot as an illegal substance, according to a company spokeswoman.

Weed-averse employers have a notable ally: Attorney General Jeff Sessions. A longtime opponent of legalization, Sessions rescinded in January the Obama-era policies that enabled state-legalized cannabis industries to flourish. The uncertainty caused by the Justice Department’s actions may discourage companies from making changes.

Employers can also get discounts on workers’ compensation insurance for maintaining a “drug-free workplace” by, in part, drug-testing workers. But the types of workplaces forgoing pre-employment tests already enjoy relatively small savings. A job in an office setting, for example, won’t have very many workers’ compensation claims, compared to a factory. The money saved by meeting the qualifications for a drug-free zone isn’t worth it.

“We assume that a certain level of employees are going to be partaking on the weekends,” said Reidy, the employment lawyer. “We don’t care. We’re going to exclude a whole group of people, and we desperately need workers.”

Read the article.

Source:
Greenfield R, Kaplan J. (5 March 2018). "The decline of the employment drug test" [Web Blog Post]. Retrieved from address https://www.benefitspro.com/2018/03/05/the-decline-of-the-employment-drug-test/


3 simple ways to get motivated

Getting and staying motivated can be tough, whether you are coming back from vacation, dealing with something you’d rather avoid or getting focused on a Monday. Not every day will be super productive, and there is no sense in punishing yourself because of it, but there are three great ways to get back on track.

One way is to take the simplest task and make it even simpler. For example, if you have to write an email, then focus on doing the first sentence. Make writing the first sentence your goal. It may feel ridiculously easy, which is the point: Once you write that first sentence, then you will likely have the confidence to begin on the second sentence, and so on.

Another approach is to think about being in bed, tonight, right before you go to sleep. What did you accomplish today? Did you feel good about what got done? What do you wish you had gotten done so you wouldn’t be worried about doing it tomorrow? Now you can stop imagining: It’s wonderful that you still have the day ahead of you and you can get things done now.

Lastly, work on your next task for only five minutes. It will be a focused five minutes, which means no multitasking. Set an alarm as necessary. Chances are that the five minutes will go by quickly and, if you like, you can set the alarm for another five minutes.

Our motivation is usually hampered by either inertia, like when we have taken a break, or by timidity, like when we are intimidated by a major goal. By using these three methods, you can move towards success and focus on the next small step towards your big successful goal.

Read the article.

Source:
Brown D. (21 February 2018). "3 simple ways to get motivated" [Web Blog Post]. Retrieved from address http://workwell.unum.com/2018/02/3-simple-ways-to-get-motivated/


Employer Responsibility Under the Affordable Care Act

Here's a helpful chart from the Kaiser Family Foundation to decipher the penalties employers may have for not offering ACA coverage in 2018.


The Affordable Care Act does not require businesses to provide health benefits to their workers, but applicable large employers may face penalties if they don’t make affordable coverage available. The employer shared responsibility provision of the Affordable Care Act penalizes employers who either do not offer coverage or do not offer coverage that meets minimum value and affordability standards. These penalties apply to firms with 50 or more full-time equivalent employees. This flowchart illustrates how those employer responsibilities work.

Read the article.

Source:
Kaiser Family Foundation (5 March 2018). "Employer Responsibility Under the Affordable Care Act" [Web Blog Post]. Retrieved from address https://www.kff.org/infographic/employer-responsibility-under-the-affordable-care-act/