Measuring leaves of absence in concert with the ACA

Originally posted May 7, 2014 by Ed Bray, J.D. on https://ebn.benefitnews.com

I can unequivocally say that administering employee leaves of absence has been the most challenging responsibility of my HR career. Why? For every employee leave you must ensure that an orchestra of different people, laws, and systems play in perfect concert with each other.  Not an easy task when you consider the following:  trying to determine who and when employees are on leave; often abiding by multiple, complex leave laws; and dealing with HRIS tracking shortcomings (if you even have a tracking system).

OK, so what’s my point?  Thanks to the Affordable Care Act, many organizations’ leave of absence orchestras are going to need to start sounding like the London Symphony Orchestra in the next few months.

Organizations that are required to follow the shared responsibility (play or pay) rules that use the look-back measurement period to determine whether variable hour, seasonal, or part-time employees are eligible for employer health insurance benefits must ensure each employee’s average hours of service are calculated accurately for the initial and standard measurement periods.   A key component of the average hours of service calculation is the impact of any employee special unpaid leave (FMLA, leave under USERRA, and jury duty) during the respective measurement period.

The final regulations for the employer shared responsibility rules state that “special unpaid leave” may be defined as unpaid leave under the Family and Medical Leave Act of 1993, the Uniformed Services Employment and Reemployment Rights Act of 1994, or jury duty.  When calculating hours of service for a look-back measurement period, the employer must treat special unpaid leave in one of two ways:

▪       Determine the employee's average hours of service by excluding any periods of special unpaid leave during the measurement period and applying that average for the entire measurement period, or

▪       Impute hours of service during the periods of special unpaid leave at a rate equal to the average weekly hours of service for weeks that are not part of a period of special unpaid leave.

That said, it is critical that each employee’s average hours of service calculation accurately reflects any “special unpaid leave” as any employees that average under 30 hours of service per week or 130 hours of service per calendar month for the respective measurement period do not need to be offered employer-sponsored benefits.  Many employees not offered benefits will be significantly affected as they will be required to enroll in some form of minimum essential coverage or else face a penalty under the ACA individual mandate. In addition, they may feel their hours of service calculation is incorrect and call the Department of Labor to express their concerns.

I recommend organizations focus on making three key business decisions as they prepare for the shared responsibility rules, effective in 2015 for employers with 100 or more full-time employees, including full-time equivalents (FTEs), and in 2016 for some employers with 50-99 full-time employees, including FTEs (certain conditions apply):

▪       How to accurately track employee leaves of absence.

▪       How to handle unpaid state and company leaves of absence for purposes of the measurement period calculations.

▪       Determine which ACA “special unpaid leave” process to use.

Ensure accurate leave of absence tracking

First meet with executive management to make them aware of the shared responsibility rules and noncompliance penalties plus gain support for doing what is necessary to ensure accurate leave of absence tracking. This includes the following (at a minimum):

▪       Making managers and employees aware of the importance of communicating employee leaves of absence to the HR department as soon as they learn about or need them;

▪       Meeting with the IT department to see if they can: 1) accurately track leaves of absence; 2) track different types of leaves; and 3) provide reporting of such leaves during the initial and standard administrative periods. If not, develop a leave of absence tracking mechanism within the HR department.

Handling unpaid state and company leaves of absence for purposes of the measurement period calculations

The federal government has stated its position with regards to three special unpaid leaves, but what about state or company unpaid leaves of absence? How should they be treated under the look-back measurement period calculations?

Given the fact that there is legal uncertainty regarding the answer to this question and handling such a situation incorrectly could have significant ramifications for your organization, I recommend consulting legal counsel to determine the answer for your organization.

Determine which ACA special unpaid leave process to use

I recommend selecting the ACA special unpaid leave process that is going to be the least administratively challenging given all of the new responsibilities associated with the leave of absence tracking process. To date, I have seen more employers select the exclusion method.

So, start tuning up your leave-of-absence orchestra because the effective dates for the shared responsibility rules are right around the corner.


Employers more flexible on telecommuting

Originally posted April 30, 2014 by Dan Cook on www.benefitspro.com

Are company executives all taking yoga? How else to explain the increased flexibility showing up in the workplace?

A study from the Society for Human Resource Management and Families and Work Institute — the 2014 National Study of Employers — indicates that corporate policies about how, when and where people work is loosening up in a number of ways.

The massive study contains considerable detail on trends in the workplace, comparing what’s happening today to what was going on in 2008. And, in just the space of six years, significant policy changes were identified.

For instance, telecommuting is becoming commonplace at two-thirds of workplaces. Earlier studies have demonstrated that telecommuting doesn’t diminish one’s productivity, and may even enhance it. Further, the courts are starting to endorse it as a reasonable accommodation for certain workers.

The SHRM/FWI data reveals that, while 50 percent of respondents in 2008 said they permitted at least some employees to occasionally work some paid hours remotely, in 2014, 67 percent offer the option to at least some workers occasionally.

In 2008, 23 percent of respondents said they offered telecommuting as a regular option; by this year, that percent had climbed to 38 percent.

Other signs of increased flexibility showed up in these comparisons of 2008 responses to 2014 input:

  • Workers have control over breaks (from 84 percent to 92 percent);
  • workers have control over overtime hours (from 27 percent to 45 percent);
  • workers can take time off during the workday when important needs arise (from 73 percent to 82 percent);
  • workers have control of starting and quitting times on daily basis: 38 percent vs. 41 percent.

In some areas, the study showed, employers have reduced flexibility. For instance:

  • sharing jobs fell from 29 percent in 2008 to 18 percent;
  • working part-year on an annual basis  dropped from 27 percent to 18 percent;
  • sabbaticals as a flex option fell from 38 percent to 28 percent;

career breaks for personal or family responsibilities dipped from 64 percent to 52 percent.


Protecting the next generation of workers with voluntary benefits

Originally posted May 1, 2014 by Andrea Davis on https://ebn.benefitnews.com

As the Affordable Care Act continues to make its presence felt, and as employers look for new ways to control their health care costs and shift more of the responsibility for benefit decision-making on to employees, the role of voluntary benefits is changing. Once viewed as a nice-to-have benefit, some say voluntary benefits should now be advertised and heavily promoted to employees as an important component in their overall portfolio of benefits.

“It’s part of a trend sweeping the industry,” says Chris Hill, CEO of Spotlite, an online enrollment technology company. “This level of [benefits] engagement has never really been required before.”

Rewind a few years to benefit plans with low deductibles and rich benefits and “these supplemental products [were] less relevant,” he says. “Now you’re asking employees to meet a $2,500 or $5,000 deductible and they have to understand how the [health savings account] or [flexible spending account] works with that and why an accident plan, for example, may be complementary to the high deductible plan.”

Millennials in particular can benefit from education about voluntary benefits. While they may view themselves as invincible, they actually have a lot to protect. “They’re not really thinking about all those what-ifs, but probably more than any other generation, they have something to protect,” says Alison Daily, second vice president of clinical and vocational services at The Standard. “They’re very highly educated. A third of them have four-year college degrees, but that comes with a big price tag for them. The average millennial has $29,000 in student loan debt alone.”

And yet millennials are either unaware of voluntary benefits or reluctant to purchase them. Sixty-nine percent of employees age 25-29 don’t own any voluntary benefits, while 71% of those under age 25 don’t own any voluntary products, according to statistics from Eastbridge Consulting Group. Among older age groups, 60% of 45-49-year-olds own some type of voluntary product.

Still, there’s evidence that millenials value voluntary benefits and that the availability of these products may increase employees’ loyalty to the company. According to MetLife’s 12th Annual U.S. Employee Benefit Trends Study, 86% of Generation Y value having benefits personalized to meet their individual circumstances and age.

The challenges of engaging this tech-savvy group are well-known. Millennials have high expectations when it comes to technology and the overall online purchasing process. This is a group that “sends thousands of text messages on a monthly basis,” says Hill. “You’ve got to compete for their limited attention span so those communications need to be highly relevant.”

But for all the talk about how different Millennials are from other generations, Daily believes good communication resonates with everyone, regardless of age. “I think that maybe one of the mistakes people make, or confusion they have, is that the millennials are very different from their non-millennial peers,” she says. “They’re probably not as different as we think.”

Awareness vs. purchase

Still, there are tactics employers can use to better engage millennials in their voluntary benefits, starting with separating the process in their own minds between initial education and purchase.

“You have the initial communication about benefits – what the benefits are, here’s why you should care,” says Hill. Employers should strive for “concise messaging that drives an action and the action you want to drive upfront is getting the employee to learn about what’s offered to them,” he says.

He encourages employers to actively look at email open rates to get a better understanding of subject lines that resonate with millennials. “Relevant information, relevant subject lines, relevant email layouts, relevant electronic communications are going to drive that action,” he says.

Once employers are past that initial awareness phase and on to open enrollment, “you’re adhering to those same principles – how are we going to capture the attention of the user?” says Hill. “Here we actually want to drive decision making about the products.”

It’s that second sale – the actual purchase of voluntary benefits – that gets tricky with millennials, believes Hill, because they tend to say: “I don’t want to call somebody about this product. I want all the information online so I can make a decision. I don’t want to meet with someone or fill out a piece of paper.”

But when it comes to benefits, millennials’ reliance on technology and self-service might be overstated. Face-to-face meetings are still important, even for this generation, says The Standard’s Daily. “I think sometimes [employers] may be thinking it’s got to be glitzy, that they’ve got to text [millennials] or something like that, but really just sitting down with a millennial and going over what these benefits mean … I think it’s the cornerstone to helping them make the right decision.”

The Eastbridge data appear to back up Daily’s assertion. When asked which of several ways they prefer to learn about voluntary benefits, just over half (55%) of employees representing a spectrum of ages chose “speaking with someone in person.” Twenty-one percent, meanwhile, chose “on my own.”

Daily also emphasizes employers shouldn’t feel they have to do all this communication on their own. In fact, she recommends they turn to their benefit brokers and carriers first, before starting any kind of communication program about voluntary. Another tactic, she says, is using peer-to-peer discussions.

“The millennial generation really values recommendations. If you think about looking for a new restaurant you think about Yelp, and the same thing applies to deciding to select disability coverage,” she says. “They’re going to look to their peers to help them make that decision, so having real stories about why colleagues chose to enroll in a benefit may be just what that millennial needs to make that decision to enroll.”

In addition, employers can leverage other successful communication campaigns. “Employers should really think about anything they’ve already done where they successfully communicated to employees and leverage that strategy,” says Daily. “I would look to the leaders of that event and say: ‘What did you do and why did it work?’ Employers may already have some of the skills and they just aren’t thinking about it in that way.”

And while it might seem like a no-brainer, an online enrollment system that facilitates a seamless shopping experience is important for millennials and all employees, for that matter. Not only that, but a mobile site that’s easy to navigate whether employees are using their laptop, iPhone, iPad or Android device.

“If I get an email from Amazon promoting a product I really want and I click on that email and then go on a wild goose chase to find that product, you’re going to lose users and buyers,” says Hill, who also cautions that all the benefit communication in the world is for naught if the buying experience isn’t simple. “If I do a great job communicating these benefits to millennials and then they have to go on to a system that looks like it was built in 1995, and the initial communications are very different than the actual purchase experience, we think that’s really bad. You’re going to lose millennials, who are used to things being easy.”

Among Spotlite’s clients, about 15% of employees use a mobile device to shop for benefits. As mobile devices and smartphones get more sophisticated and make inroads among older generations, Hill only expects this to grow. “Mobile is necessary. It’s something you have to have,” he says. “Enrollment needs to be easy for the end user. So you make it easy by offering it on a computer or a mobile device. It’s a necessary access point for individuals.”


Deloitte: Study Shows Global Talent Squeeze Continues to Affect Employers

Originally posted April 29, 2014 on www.ifebp.org

Even as the economy slowly improves, human resources (HR) professionals around the globe struggle to find the right people for technical and skilled jobs.  This talent shortage makes employee retention and engagement strategies even more critical.

The 2014 "Global Top Five Total Rewards Priorities Survey" from Deloitte, the International Society of Certified Employee Benefit Specialists (ISCEBS), and the International Foundation of Employee Benefit Plans shows that HR leaders globally are acutely focused on talent as the top challenge and priority over the next three years.  With the added challenge of managing the dynamics of four distinct generations in the global workforce, the survey results point to the need for more effective and adaptable talent strategies and rewards programs.

"With global economies continuing their slow rebound amid persistent skills gap issues, it comes as no surprise among over a third  (35 percent) of those surveyed that attracting, motivating and retaining talent is the primary concern of employers around the world," said Jason Flynn, principal, Deloitte Consulting LLP and co-author of the report. "While the alignment of rewards with overall talent management was the top challenge across all geographies, the approaches to achieve this goal truly reflected the economic, cultural and political nuances of the local regions."

Top five priorities

The "Global Top Five Total Rewards Priorities Survey" series serves as an annual barometer of talent and rewards management challenges. Conducted globally for the second time this year, 22 different countries ranked these the top five priorities for 2014:  Aligning total rewards with business strategy by attracting, motivating, and retaining employees Reducing the costs of providing healthcare and other non-cash benefits to employees Motivating staff when pay increases are flat or non-existent Demonstrating appropriate return on investment for reward expenditures Creating a rewards program that reflects the culture and goals of the organization

Evolving rewards programs and strategies

The study indicates that employers should continue to modify and adjust their total rewards programs in today's dynamic economic environment. Forty-three percent of those surveyed identified an increase in health and well-being initiatives as an action that their organization has undertaken within their overall total rewards strategy. There has been more focus on these initiatives in the Americas (50 percent) than in EMEA (26 percent) and Asia Pacific (33 percent).

Forty percent of employers also responded that they have or plan to change the definition or mix of components within their overall rewards strategy. This remixing was more prevalent in responses from EMEA (45 percent), but still high in the Americas (38 percent) and Asia Pacific (33 percent).

"Employers recognize the critical nature of total rewards as a primary way to recruit and engage employees. Equally important is for employees to understand the value of their total rewards," said Michael Wilson, CEO of the International Foundation and ISCEBS. "Employer-provided education and communication is imperative for employees to better understand and make use of their rewards. Additionally, employers are educating beyond basic benefits literacy to include topics such as personal finance, health and wellness."

 Skills gap paradox and employee consumerism

In an era of limited economic growth compressing job opportunities, it would seem that there should be enough talent to go around, but the reality is quite different.

"There is a talent paradox that we are seeing around the world. Employers are having difficulty finding the right skills and talent to fit their workforce, despite persistent unemployment numbers," said Yon-Loon Chen, senior manager, Deloitte Consulting, LLP and co-author of the report. "This leads to increased competition for the fewer highly-skilled employees; so it's no wonder that the focus comes down to enticing talent away from the competition and keeping the talent you have. And you accomplish all this through your Total Rewards program."

 Global generational considerations: Varied rewards focus

While the workforce populations in the U.S. and most of Europe are aging, India and Brazil are experiencing a high influx of young employees. The report indicates that 60 percent of employers somewhat agree or strongly agree that their organization's leadership team understands the total rewards perspectives and values of the different generations in their workforce, but only 37 percent of employers globally would consider a menu-driven reward mix that allows employees from different generations to build a total rewards package to fit their particular needs.

"Organizations have come to face the reality that their workforces are intergenerational and what may work for one generation in the Total Rewards program doesn't necessarily work for the others," added Chen.  "It will be imperative for organizations to have a flexible Total Rewards program that will support all its employees as they progress through their careers."


2015 is just around the corner. Are you ready?

Originally posted April 30, 2014 by Dorothy Summers on https://ebn.benefitnews.com

Most of the political discussion surrounding the Affordable Care Act involves whether the law will be further delayed and/or repealed. While the government continues its in-fighting, the Obama Administration has pushed forward. In fact, in the first quarter of 2014, the government issued two significant pieces of final guidance related to implementing the major requirements of the law.

Employer mandate final regulations

The first piece of guidance was the employer mandate final regulations. These “play or pay” rules provide some clarity as well as a deadline for compliance. For large employers—businesses with 100 or more full-time and full-time equivalent employees—the deadline is January 1, 2015, or the month in which your health plans renews in 2015. While 2015 seems far off, the reality is that it is only eight short months from now.

Employers with between 50 and 99 full-time and FTE employees have a bit more breathing room—they have until 2016 to comply. Businesses with fewer than 50 full-time and FTE employees do not need to meet the play or pay requirements.

Information reporting

The second set of final regulations from the government addressed information reporting. These regulations include two separate types of reporting: to employees and to the government. The first reports must be completed using information collected in 2015 and then distributed to employees and the government in 2016. The government will issue a Form 1095 for this reporting.

While 2016 seems well into the future, the collection of required data must begin in January 2015. The reporting will be done on a calendar year basis regardless of whether your health plan operates on the calendar year.

So, are you ready to act on the government’s final guidance? Are you certain? To determine the answer, review your current plan against this checklist:

First, count your employees to determine if you are a large employer and subject to the employer mandate in 2015. If you qualify as a large employer in 2015, take the following steps:

▪   Determine whether health coverage is offered to at least 70% of your full-time employees and their dependents.

▪   Review whether the plan being offered to at least 70% of your full-time employees and their dependents provides minimum value by using one of the three available methods: the minimum value calculator; safe harbor checklists; or actuarial certification.

▪   Confirm the information provided from the fully insured carrier on the Summary of Benefits and Coverage.

▪   Assess the affordability of your lowest-cost single health coverage under one of the IRS’ affordability safe harbors using the W-2, rate of pay, or the federal poverty line.

▪   Provide required information regarding plan coverage and participation in accordance with information return requirements, and file the report in 2016 using 2015 data.

When the government announced last summer that it was delaying the employer mandate, many employers let out a sigh of relief. They relaxed. However, now it’s time to pick up the pace again. Before you know it, 2015 and 2016 will be here and the ACA will be an everyday reality for employers.


IRS Releases 2015 Amounts for HSAs, HDHPs, and Out-Of-Pocket Limits

Source: https://www.shrm.org

The Internal Revenue Service announced higher limits for 2015 on contributions to health savings accounts (HSAs) and for out-of-pocket spending under high-deductible health plans (HDHPs) linked to them.

In Revenue Procedure 2014-30, issued April 24, 2014, the IRS provided the inflation-adjusted HSA contribution and HDHP minimum deductible and out-of-pocket limits, effective for calendar year 2015. The higher rates reflect a cost-of-living adjustment and rounding rules under Internal Revenue Code Section 223.

A comparison of the 2015 and 2014 limits is shown below:

2015 HSA
2014 HSA
2015 PPACA (non-grandfathered plans)
2014 PPACA (non-grandfathered plans)
Out-of-pocket maximum $6,450 single
$12,900 family
$6,350 single
$12,700 family
$6,600 single
$13,200 family
$6,350 single
$12,700 family
Minimum deductible $1,300 single
$2.600 family
$1,250 single
$2,500 family
None None
Maximum deductible None None None (this requirement has been repealed) None (this requirement has been repealed)
Maximum contribution $3,350 single
$6,650 family
$3,300 single
$6,550 family
None None
Catch-up limit (age 55 or older) $1,000 (unchanged) $1,000 Not applicable Not applicable

 


3 goals for work-life balance

Originally posted April 29, 2014 by Brian Tracy on https://www.lifehealthpro.com

Just as a wheel must be perfectly balanced to rotate smoothly, your life must be in balance for you to feel happy and effective. To achieve a good work-life balance, you must tend to these three types of goals:

1.    Goal setting for your business and career (What do you really want?) The first category of goal includes business, career and financial goals. These are the tangible, measurable things that you want to achieve as the result of your efforts at work. These are the ‘‘whats’’ that you want to accomplish in life.

When you go about setting goals for your business and career, you must ensure that they’re tangible. You must be absolutely clear about how much you want to earn, and in what time period you want to earn it. You must be clear about how much you want to save, invest and accumulate, and when you want to acquire these assets. Remember, you can’t hit a target that you can’t see.

2.    Your purpose in achieving your goals. (Why do you want to achieve your goals?) The second goal category consists of personal, family and health goals. In reality, these are the most important goals of all in determining your happiness and well-being. These are called the ‘‘why’’ goals because they are the reasons you want to achieve your business, career and financial goals. They are your true aim and purpose in life.

Many people become so involved with their careers and financial goals that they lose sight of the reasons why they wanted financial success in the first place. They get their priorities mixed up. As a result, their lives get out of balance. They start to feel stressed and become angry or frustrated. No matter how hard they work to achieve their business and financial goals, they don’t seem to enjoy any more peace, happiness or satisfaction.

What they need is to bring their goals back into the right order and realize that work and financial goals are a means to an end—which is enjoying family and relationships. They are not the ends in themselves.

3.    Personal development goals. (How do you achieve your goals?) The third type of goal centers on professional growth and personal development. These are the ‘‘how’’ goals. Goal setting, learning and practicing new skills and behaviors are how you achieve the ‘‘what’’ in order to enjoy the ‘‘why.’’

By working to improve yourself, you can become the kind of person who is capable of achieving your business, career and financial goals. Your personal, family and health goals will come faster and more easily.

By working on these three types of goals simultaneously, you can maintain a healthy work-life balance while continuing to move onward and upward.


American Workers More Physically than Financially Fit

Originally posted April 22, 2014 by Lisa Barron on https://www.benefitspro.com

American employees see themselves as more physically fit (57 percent) than financially fit (28 percent), according to new research from the Principal Financial Well-Being Index: American workers.

The vast majority (84 percent), however, also believe that maintaining physical fitness is an investment in their financial future.

Still, nearly half of workers (46 percent) are stressed about their current financial situation. Fifty-one percent of Gen Y workers are stressed about finances compared to 35 percent of baby boomers.  And those working with a financial advisor were less likely (33 percent) to be stressed about their financial future.

"American workers recognize the long-term financial benefits of staying healthy, but financial stress is often a constant pressure that can have a significant impact on their physical health," said Luke Vandermillen, vice president at the Principal Financial Group.

"With spring in full swing, now is a good time for Americans to apply their good fitness habits to their financial lives as well. Mark some time on the calendar for financial spring cleaning."

More than half (52 percent) say they have monitored their spending levels in the past year. Thirty-nine percent created a budget to keep finances in check, up from 28 percent two years ago.

Fifty-seven percent have an emergency fund in place, with those working with a financial profession about 1.5 times more likely to have one.

"It's encouraging to see American workers planning for unforeseen hurdles by giving themselves a financial checkup and setting aside money in an emergency fund," said Vandermillen.

"Despite a few missteps, like using the fund on monthly bills, these positive behaviors show individuals are making strides and taking personal responsibility to improve their short and long-term financial well-being."

The Principal Financial Well-Being Index: American Workers was conducted online among 1,123 employees at small and mid-sized businesses from Feb. 4-12.


Know the Secrets of Successful Employee Engagement

Originally posted April 16, 2014 by William Taylor on https://hrdailyadvisor.blr.com

The emotional commitment an employee has toward a company and its main goals is called employee engagement—employees being more focused on helping the company thrive.  This emotional binder has nothing to do with financial compensation but with the personal feelings of that employee for the workplace.

Let’s not confuse engagement with happiness.  Being happy at work doesn’t necessarily mean that you’re working hard to help that organization succeed.

Engaged employees initiate better business results.  Research shows that organizations with engaged workers can easily reach higher profit margins of up to 6%.

Motivated employees often lead to:

  • Better customer satisfaction
  • Better quality of services
  • Enhanced productivity
  • Higher profit levels
  • Increased shareholder returns

Switching from THE Company to THEIR Company

Ownership is the heart and soul of employee engagement.  Your people must feel that they own the company for which they’re working.  It’s paramount to treat them like partners and make them feel like CEOs (even if deep down they are employees and nothing more).  Once you’ve accomplished that, allow them to make important decisions, share vital information with them, let them take part in important meetings to keep them motivated.  Engagement soars when employees feel like leaders.

How do you maintain employee engagement long-term?

Engaged employees are both happy and motivated people.  They feel appreciated by their bosses, they feel valued, and they’re willing to go to extreme lengths to help THEIR Company flourish. However, it’s vital for organizations to make sure the engagement is permanent.  Here are some important aspects you might want to look at to make sure your people stay engaged for as long as necessary.

  • Consistent expectations—whatever you do make sure your expectations are clear and consistent.  Tell your employees exactly what you want from them, but make them feel comfortable and safe in your presence.
  • Value their work—employees want to feel that their work is being appreciated; if you must criticize, do it, and do it constructively.
  • Leave room for advancement in their career—the goal of every engaged employee is to climb up the ladder; the more some advance in their career, the harder they will work to please their superiors.

Constructive Criticism Keeps Engaged Employees Alert

Feedback is important for engaged employees who want to be sure that their actions are good enough.  These people are willing to accept criticism and do everything in their power to turn an observation into a goal.  Communication is equally important between managers and motivated workers.  As boss, CEO, or supervisor, it’s your job to foster that motivation by asking questions and challenging their potential.

Criticism should be constructive; it should be meant to add value to a company.  Engaged people are not afraid to be criticized.  On the contrary, they strongly believe that the only way to nurture their potential is to give them challenges that are difficult to achieve.

A Different Type of Reward

We mentioned that employee engagement is not based on financial compensation.  While that might be true, motivated employees should be given constant rewards for their hard work.  Promotions, free training sessions, better working hours, and paid vacations, are just some incentives companies can offer to their committed people to make them feel esteemed.  There are so many things you can offer to satisfy their needs without breaking the bank.

After working hard on a project for over a month you can take them out for a festive dinner.  People love to socialize and the best way of making them feel good about themselves is to integrate them in your executive group.  Appeal to their social side, have a good time, and interact with them on a human level.

The key word for successful employee engagement is RELATIONSHIP.  Nothing matters more for employees than a good working relationship with their superiors and teammates.  Satisfaction and engagement are deeply connected in a company.  Let’s call it a marriage where two parties enter this “relationship” with extremely high hopes, best intentions, and great aspirations.  In time, the relationship can become unbreakable; however, for that to happen—employees and company workers must value each other equally.