Views: Mitigating COVID-19’s catastrophic impact on retirement readiness
As the coronavirus has placed many financial worries onto families, it has also placed a sense of worries for those that are planning for their retirement. Read this blog post to learn more.
It’s bad enough that more than 50 million Americans have filed claims for unemployment benefits since the start of the COVID-19 pandemic and lockdown. But in addition to the disruption, financial hardship, and uncertainty that unemployed Americans (and their families) are experiencing right now, this crisis also threatens their financial security during retirement.
As I have written many times before in this column, defined contribution plan participants will seriously diminish their retirement savings if they prematurely cash out all or part of their 401(k) savings account balances. According to our research, a hypothetical 30-year-old who cashes out a 401(k) account with $5,000 today would forfeit up to $52,000 in earnings they would have accrued by age 65, if we assume the account would have grown by 7% per year. In addition, the Employee Benefit Research Institute (EBRI) estimates that the average American worker will change employers 9.9 times over a 45-year period. With at least 33% and as many as 47% of plan participants cashing out their retirement savings following a job change, according to the Savings Preservation Working Group, that means workers switching jobs could cash out as many as four times over a working career, devastating their ability to fund a secure retirement.
Even before COVID-19 and “social distancing” became part of the national lexicon, cash-outs posed a huge problemto Americans’ retirement prospects. At the beginning of this year, EBRI estimated that the U.S. retirement system loses $92 billion in savings annually due to 401(k) cash-outs by plan participants after they change jobs.
These alarming trends were uncovered long prior to the pandemic and lockdown. Since the start of the COVID-19 outbreak, theCoronavirus Aid, Relief, and Economic Security (CARES) Act stimulus has temporarily eased limits, penalties, and taxes on early withdrawals from retirement savings accounts made by December 31, 2020. While the CARES Act measures are clearly well-intentioned, participants who take advantage of these provisions risk creating a long-term problem while resolving short-term liquidity needs.
Heightening the temptation to make 401(k) withdrawals is the recent expiration of another CARES Act provision—the extra $600 weekly payments to Americans who lost their jobs due to the COVID-19 pandemic. These additional federal unemployment benefits expired at the end of July, and as of this writing no deal to extend them has been reached in Congress. For Americans who had been relying on this benefit, or continue to experience financial hardship and stress about paying expenses, it is understandable that 401(k) savings could look like an attractive source of emergency liquidity.
However, given the long-term damage that cash-outs inflict on retirement outcomes, plan sponsors and recordkeepers should take this opportunity, as fiduciaries, to educate their current and terminated participants about the importance of tapping into their 401(k) savings only as an absolute last resort.
Institutionalizing portability can help
The lack of a seamless process for transporting 401(k) assets from job to job causes many participants to view cashing out as the most convenient option. And without an easy way to locate the mailing addresses of lost and missing terminated participants, sponsors and recordkeepers are unable to ensure holders of small accounts receive notifications about the status of their plan benefits.
Fortunately for participants, sponsors, and recordkeepers, technology solutions enabling the institutionalization of plan-to-plan asset portability have been live for three years. These innovations include auto portability, the routine, standardized, and automated movement of a retirement plan participant’s 401(k) savings account from their former employer’s plan to an active account in their current employer’s plan.
Auto portability is powered by “locate” technology and a “match” algorithm, which work together to find lost and missing participants, and initiate the process of moving assets into active accounts in their current-employer plans.
By adopting auto portability, sponsors and recordkeepers can not only discourage participants from cashing out, but also eliminate the need for automatic cash-outs. And these advantages come at a time when the hard-earned savings of tens of millions of Americans are at risk of being removed from the U.S. retirement system.
Before the COVID-19 pandemic, EBRI estimated that if all plan participants had access to auto portability, up to $1.5 trillion in savings, measured in today’s dollars, would be preserved in our country’s retirement system over a 40-year period. Now more than ever, the institutionalization of portability by sponsors and recordkeepers is essential for helping Americans achieve financial security in retirement.
SOURCE: Williams, S. (31 August 2020) "Mitigating COVID-19’s catastrophic impact on retirement readiness" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/how-to-mitigate-covid-19s-potentially-catastrophic-impact-on-retirement-readiness
What employers are missing in their workforce data
If employers don't analyze their data thoroughly, they may be missing valuable information that could save their establishment of many costs. Read this blog post to learn more.
Employers are missing out on valuable healthcare information and cost-saving opportunities if they don’t analyze their data thoroughly, panelists at the annual Disability Management Employer Coalition digital conference said.
According to professionals from an insurance company in Portland, Ore., many employers have access to three types of data: healthcare, absence and productivity. HR departments are typically tasked with collecting and analyzing this data, but rarely do they use all three together. But maximizing these findings can help employers better inform their benefit decisions, the panelists said.
“Most employers want to know how much they’re spending on healthcare, but they can learn so much more than that,” said Case Escher, managing partner of the insurance company in Portland, “Very few [employers] use it to explore how health of the workforce is affecting productivity.”
“By comparing health data and absence, you can see if a health condition is causing an employee to miss more work than usual,” said Brycie Repphun, account executive at the insurance company in Portland. “You can use this information to help better inform that person about the services available to them to help them be successful at work.”
Employers can also use their productivity data to help determine if individual employees, or an entire team, are struggling, Escher said. Since productivity is measured differently at every company, and in various positions, employers have to exercise their own judgement about how to interpret it, he said.
“Obviously, if it’s a sales position, and one of your top performers is out because of medical issues, or another personal reason, the productivity of that team is going to suffer,” Escher said. “And if that person is going to be out for a while, the data will likely show that the rest of the team is getting burned out faster to compensate for being understaffed.”
Since the majority of the nonessential workforce is working from home due to the pandemic, Repphun recommends that employers start looking at their data to see how employees are coping.
“Health conditions can definitely impact work performance, but we’re finding that this is happening because of the current work from home situation,” Repphun said. “People aren’t working in ideal conditions, and many have children learning at home as well.”
Escher said self-funded employers are better positioned to make use of their workforce data because they don’t have to go through multiple third-party providers to access all of it. But other employers can still benefit from the information if they’re willing to put in the time and effort to retrieve the reports. While employers can certainly survey their workforce to gauge how working remotely is affecting their productivity, Escher and Repphun said they can get a clear answer by looking at all three data points.
“There’s an indisputable link between health and productivity,” Escher said. “As an employer, you can take this information and use it to make smart decisions to help your employees continue to be successful.”
SOURCE: Webster, K. (31 August 2020) "What employers are missing in their workforce data" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/what-employers-are-missing-in-their-workforce-data
5 ways to prepare for open enrollment during COVID-19
As open enrollment draws near, it's time to critically prepare for it especially during the crazy time that the coronavirus pandemic has brought to many families. Read this blog post to learn more.
The COVID-19 pandemic has focused consumer attention on health care, germs and the impact a single illness can have on their lives, livelihoods and loved ones. With the fall open enrollment season just months away, you have the opportunity to think more critically about the specific plans you choose for yourself and your family, as well as any voluntary benefits that may be available to you, including childcare, elder care and critical illness. In a world where it feels like health is out of the individual’s control, we all want, at the very least, to feel control over our coverage.
As we know all too well, there’s a lot to consider when it comes to choosing and using health care benefits. The most important piece of becoming an informed health care consumer is ensuring you have access to — and understand — the benefits information you need to make smart health care choices. Here are five tips to keep in mind as you prepare for and participate in open enrollment.
1. Prepare for COVID-19 aftermath
As if dealing with the threat of the virus (or actually contracting it) wasn’t enough, consumers must consider the unexpected consequences. Quarantines, stay-at-home orders and business shutdowns have resulted in missed preventive care visits — including annual immunizations. For instance, many children will have missed their preschool vaccinations, which could result in an uptick in measles, mumps and rubella. If school is conducted virtually, the risk of catching one of these highly contagious diseases is somewhat reduced, though consumers should still proceed with caution as states reopen. In fact, with continued waves of COVID-19 expected well into the school season, you and your children may have to wait even longer to get vaccinations due to pent up demand and possible shortages.
Don’t forget that preventive care is covered by most plans at 100% in-network regardless of where that care is received. Schedule your appointments as soon as possible (and permissible in their area), and research other venues for receiving care, such as pharmacies, retail clinics and urgent care facilities. Most are equipped to provide standard vaccinations and/or routine physicals.
Unfortunately, there are also the long-term implications of COVID-19 to consider. Research suggests that there are serious health impacts that emerge in survivors of COVID-19, such as the onset of diabetes and liver, heart and lung problems. And many who were able to ride out the virus at home are finding it’s taking months, not weeks, to fully recover. As a result, you should prepare for the possibility that you, or a loved one, may be ill and possibly out of work for an extended period of time. Be sure to evaluate all of the plans and programs your employer offers to ensure your family has the financial protections you need. For some, a richer health plan with a lower deductible, voluntary plans such as critical illness or hospital indemnity insurance, and buy-up life and disability insurance may be worth investigating for the first time.
2. Re-evaluate postponed elective procedures
Many employees or their family members have postponed or skipped elective procedures — either from fear of exposure to COVID-19 at hospitals and outpatient facilities, or because their hospitals and providers cancelled such procedures to conserve resources to treat COVID-19 patients. As a result, an estimated 28.4 million elective surgeries worldwide could be canceled or postponed in 2020 due to the virus.
As hospitals reopen, it may be difficult to schedule a procedure due to scheduling requirements and pent up demand. A second opinion may be in order if your condition stabilized, improved or worsened during the delay; there may be other treatment options available.
A delay in scheduling also provides an opportunity to “shop around” for a facility that will provide needed care at an appropriate price — especially if you are choosing to go out-of-network or have a plan without a network. Researching cost is the best way to find the most affordable providers and facilities with the best quality, based on your specific needs.
Many medical plans offer second opinion and transparency services, and there are independent organizations who provide “white glove,” personalized support in these areas. Read over your enrollment materials carefully, or check your plan’s summary plan description, to see what your employer offers. If nothing is available, ask your employer to look into it, and don’t hesitate to do some research on your own. Doing so can often result in substantial cost savings, without compromising on quality of care.
3. Confirm your caregivers
Because so few elective procedures were performed during the initial phases of the pandemic, many hospitals sustained huge financial losses. As a result, many small hospitals are closing, and large hospitals are using this opportunity to purchase smaller, independent medical practices that became more financially vulnerable during the pandemic. Further, many physicians have opted to retire or close their practices in light of the drastic reductions to their income during local shutdowns.
Be sure to check up on your preferred health care providers — especially those you might not see regularly — to confirm they are still in business and still in network (if applicable). If you live in a rural area, you may have to travel farther to reach in-network facilities. If you’re currently covered by an HMO or EPO, you may want to evaluate whether that option still makes sense, if your preferred in-network providers are no longer available.
4. Look at ALL the options
Voluntary coverages — such as critical illness, hospital indemnity, buy-up disability, and supplemental life insurance — may help ease your concerns about how you will protect your and your family’s finances if you become ill. Pandemic aside, these benefits can provide a substantial safety net at a relatively low cost. Investigate your employer’s offerings — many employers are offering virtual benefit fairs where vendors can provide more information about these benefits while remaining safe from large social gatherings.
When was the last time you changed your medical plan? If you’ve been keeping the same coverage for years, it might be time to look at what else is available. Your employer may have introduced new plans, or you may find that a different plan makes more sense financially based on how often you need health care. Don’t forget — the cheapest plan isn’t always the one with the lowest premiums.
5. Uncover every resource available
Besides your health coverage (medical, dental and vision), many employers offer other plans and programs to support your health. While you’re already focused on benefits, take the time to learn about what else is available to you. These offerings may range from the previously mentioned advocacy and transparency services and voluntary benefits, to personalized, one-on-one enrollment support, to telemedicine services and an Employee Assistance Program (EAP). Also, many employers made temporary or permanent plan changes to address COVID-19 regulations and concerns. Be sure to familiarize yourself with these changes — and when they might expire.
You may also want to consider setting aside funds in a health savings account or health care flexible spending account (if available). If your employer offers a wellness program, this might be an opportunity to start adopting better health habits to ensure you’re better equipped physically and mentally to deal with whatever lies ahead.
While open enrollment may seem daunting, devoting an hour or two to reviewing your plan options, the programs available to support you and your family physically, mentally and financially, and how to get the most from the coverages you do elect, can go a long way towards providing peace of mind as we face the unknowns of 2021.
SOURCE: Buckey, K. (17 August 2020) "5 ways to prepare for open enrollment during COVID-19" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/list/5-ways-to-prepare-for-open-enrollment-during-covid-19
How to Evaluate Hiring Assessments
HR professionals and managers need reliable ways to gather and evaluate various assessments. Read this blog post to learn more about how to evaluate assessments.
When faced with a hiring decision, HR professionals and managers have to consider everything they know about the applicants. But that might not be enough information to make a choice. To get more information and add objectivity to the decision-making process, many organizations use assessments.
"When these tools are used correctly, they're tremendously valuable," said Eric Sydell, Ph.D., an industrial-organizational psychologist and the chief innovation officer at Modern Hire, a hiring platform. "There's a level of objective assessment about a person that can be very predictive."
HR professionals and hiring managers don't have the ability to make accurate predictions in the same way assessments can. "Our brains don't work that way," he said.
But buyer beware, Sydell warned, "There are a lot of tools out there that sound great on the surface" but fail to deliver valid and reliable results.
Multiple Options Present Tough Choices
Ryne Sherman, chief science officer at Hogan Assessment Systems in Tulsa, Okla., said he suspects that most large corporations are probably using reliable and valid assessments, while smaller businesses may not be. Unfortunately, he said, "With this industry, there is no regulating body at all—literally anybody can make an assessment tool and start selling it with no background and no science put into it whatsoever."
Perhaps because of the open nature of the field, there are a lot of tools to choose from and many of them are complex, making the selection of one of them a potentially confusing—and even risky—decision to make.
Must-Haves for Effective Assessment Tools
Ryan Lahti, Ph.D., is an industrial-organizational psychologist and the founder and managing principal of OrgLeader, a management consultancy in Newport Beach, Calif. He uses a variety of assessment tools in his work. There are many factors to be considered when evaluating an assessment tool, he said, but the three key ones are validity, reliability and the population that was used to develop it.
Validity deals with how accurately the tool measures the concepts it claims to measure. Lahti pointed to three forms of validity:
- Content validity indicates how well the tool measures a representative sample of the subject of interest. At a minimum, he said, you want a tool that has content validity.
- Criterion validity indicates how well the tool correlates with an established measure or outcome—for example, correlation to strong performance ratings.
- Construct validity indicates how well the tool measures a concept or trait—for example, conscientiousness.
Reliability is a measure of how consistently the tool measures issues of interest. If you were to give the same assessment to the same candidate more than once, how similar would the results be?
Finally, the population used to develop the tool is an important consideration and should be the same as the population being assessed. "For example, you would not want a tool developed on an adolescent population to be used to assess working adults," Lahti said.
Sherman offered the Minnesota Multiphasic Personality Inventory (MMPI) test as an example. The popular assessment tool used by organizations to screen candidates was designed for diagnosis and treatment of mental health conditions, he said. That can be a risky tool to use for assessing the potential of job applicants.
What to Watch Out For
As HR leaders consider various assessment options, they need to thoroughly evaluate whether the assessments they're considering incorporate the must-haves. Look out for companies that don't publish information on validity, reliability and the population used to develop the assessment.
Some companies, Lahti said, will say that their tools are used by a lot of Fortune 500 companies.
"While this argument shows they have good sales and marketing departments, it does not prove the companies have sound assessment tools," he said.
Sy Islam, Ph.D., an associate professor at the State University of New York at Farmingdale and a vice president at Talent Metrics consulting firm in Melville, N.Y., said employers should ask test companies to show their worth. "Vendors should be able to provide you with a validity coefficient, which is a statistic—a correlation coefficient—that indicates how much predictive validity the assessment has," he said. He warned against accepting "black box" explanations like "the tool is proprietary and cannot be explained." The ability to support your assessment could become an issue if your company becomes involved in a lawsuit, he said.
"What you don't want to do is rely on high-level summary statements, marketing statements or hype that is generated by these companies," Sydell said. "There are a lot of different buzzwords and catchphrases that vendors will throw out there. It's really important to look beyond that and dig below the surface." And, while he says you don't need a Ph.D. to do that, it is a good idea to seek help from someone who is familiar with these types of assessments and can help evaluate their efficacy.
"I would strongly advise finding a local industrial and organizational psychologist who can evaluate different vendors and talk to you about best practices," Sherman said. The proper assessment and selection of candidates is just too important, and potentially risky, to cut corners.
SOURCE: Grensing-Pophal, L. (27 February 2020) "How to Evaluate Hiring Assessments" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/how-to-evaluate-hiring-assessments.aspx
3 ways to support workplace well-being during COVID-19
The coronavirus has created many struggles for employees to deal with, and some of the struggles will continue even after measures become lifted. Read this blog post to learn more.
Personal and professional worlds are colliding in ways that have never been seen before, leading employees and employers to navigate new challenges in uncharted waters. As employees continue to struggle with balancing work and personal obligations at home, they are dealing with emotional, physical and financial consequences from the pandemic. Some of these struggles will remain even after social distancing measures are lifted and the economy stabilizes, and they could have a lasting impact on people’s overall wellness.
While many companies are rightfully focused on the bottom line and maintaining business operations throughout the pandemic, it is equally important that they take steps to ensure their employees are supported throughout this tumultuous time. Employee well-being is directly tied to business health, which is why it is so important for organizations to optimize their benefits and deliver the right health and wellness offerings for their workers.
Reassess employee benefit programs
The pandemic is raising awareness that total wellbeing, not just physical health, is a key component to success for businesses and the economy. Employees that are facing at home pressures or feeling financially insecure may be less productive or distracted during the workday, which can impact company success. COVID-19 has hit companies hard. Many are looking for places to trim costs, but benefits and wellbeing programs are not an area they can afford to cut.
Diabetes, depression, mental health and financial stress are on the rise with the majority of employees dealing with unprecedented challenges like childcare, caring for family members who are sick or otherwise impacted by COVID-19 and general anxiety about their future. Cutting benefits programs now may save a few thousand dollars today only to spend tens of thousands of dollars on healthcare costs tomorrow.
Employers who understand the value of employee benefits programs will fare much better than those that guess which programs will be effective. This is an ideal time for businesses to re-assess their current well-being offerings to ensure the programs they are investing in align with the needs of their workforce. It’s also essential that employers make sure employees are aware of the wellness offerings available to them and how to use them. Therefore, it’s important for businesses to increase their communications to employees around wellbeing programs that can help provide physical, mental and emotional support through the pandemic and beyond.
Evaluate current and future employee needs
Not all people are the same, which is why one-size-fits-all programs fail. A successful well-being program should be personalized to best meet employees’ current and future needs. This can be difficult, especially when considering environmental and lifestyle factors, but with the right partner it can be done effectively. Many large employers are working with a partner that leverages social determinants of health data such as household composition, purchasing habits, education and income level and more, to identify individual employee needs.
Employers should also evaluate new types of resources to accommodate the “new normal”. Case in point: we have seen double digit increase in engagement with financial wellbeing and EAP resources. Telehealth and remote condition management programs are on the rise as well as stress management and resilience programs. For example, “Linda” has diabetes, so she needs to know the COVID-19 risks associated with her condition. She may also need extra support to ensure she is keeping up with her healthy eating and exercise regimen during quarantine. Connecting her with a remote diabetes program like Livongo or Virta Health can help Linda feel valued and stay on track. Or, “Tom” has been having severe back pain and his doctor recommends he have surgery to correct a spine-related issue. But not all health systems are offering elective surgeries right now, so he is better off with a telehealth pain management program like Telespine or Hinge Health, Physera and Simple Therapy.
This information allows employers to personalize the health and wellness plans they offer to employees and provide them with the right tools to make their healthcare journeys easier as they navigate this new way of life. Employers will also see the benefits in healthier, happier employers, increased productivity and potentially lower long-term healthcare costs.
Have a solid strategy for returning to work
COVID-19 return to work programs will require an increase in spending for heightened safety measures, such as enhanced cleaning and disinfection practices, employee daily temperature checks (which are now required by some states) and developing and implementing policies and procedures that address preventing, monitoring for and responding to an emergence or resurgence of COVID-19 in the workplace.
As businesses begin reopening workspaces, it is critical for leaders to have a solid employee engagement plan in place to keep workers safe. Be sure to clearly and effectively communicate new safety protocols to employees, so they can feel safe going to work as offices reopen. Invite employees to discuss any concerns they may have in an open forum or via a survey and involve them in problem-solving. Listen to their needs both personally and professionally as our lives will be complicated for months, and possibly years to come. It sounds cliché to say that people are companies most valuable assets. However, it could not be more true right now. It’s time for businesses to make employees’ wellbeing a priority and step up to the challenge of evolving their programming to meet current and future needs. Both the business and its employees will benefit.
SOURCE: Hinkle, C. (19 August 2020) "3 ways to support workplace well-being during COVID-19" (Web Blog Post). Retrieved from employeebenefitadviser.com/opinion/3-ways-to-support-workplace-well-being-during-covid-19
Millions of U.S. jobs to be lost for years, IRS projections show
It's estimated that there will be about 37.2 million fewer employee-classified jobs in the next year, than there has been in previous years. Read this blog post to learn more.
The Internal Revenue Service projects that lower levels of employment in the U.S. could persist for years, showcasing the economic fallout of the coronavirus pandemic.
The IRS forecasts there will be about 229.4 million employee-classified jobs in 2021 — about 37.2 million fewer than it had estimated last year, before the virus hit, according to updated data released Thursday. The statistics are an estimate of how many of the W-2 tax forms that are used to track employee wages and withholding the agency will receive.
Lower rates of W-2 filings are seen persisting through at least 2027, with about 15.9 million fewer forms filed that year compared with prior estimates. That’s the last year for which the agency has published figures comparing assumptions prior to the pandemic and incorporating the virus’s effects.
W-2s are an imperfect measure for employment, because they don’t track the actual number of people employed. A single worker with several jobs would be required to fill out a form for each position. Still, the data suggest that it could take years for the U.S. economy to make up for the contraction suffered because of COVID-19.
The revised projections also show fewer filings of 1099-INT forms through 2027. That’s the paperwork used to report interest income — and serves as a sign that low interest rates could persist.
There’s one category that is expected to rise: The IRS sees about 1.6 million more tax forms for gig workers next year compared with pre-pandemic estimates.
That boost “likely reflects assumptions with the shift to ‘work from home,’ which may be gig workers, or may just be that businesses are more willing to outsource work — or have the status of their workers be independent contractors — now that they work from home,” Mike Englund, the chief economist for Action Economics said.
SOURCE: Davison, L.; Tanzi, A. (20 August 2020) "Millions of U.S. jobs to be lost for years, IRS projections show" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/articles/millions-of-u-s-jobs-to-be-lost-for-years-irs-projections-show
Bad managers are costing employers their workforce
Although poor management can create a difficult work environment, there ways that organizations can create a more effective manager as well as a more engaged and productive workforce. Read this blog post to learn more.
Most employees have had an encounter with someone they would describe as a “bad boss,” a manager who makes things more difficult through bullying and incompetence. These ineffective leaders can cause employees significant stress on top of the pressures they are already facing.
At some point in their careers one in two employees has left a job to get away from a toxic manager, according to a Gallup study. Poor managers aren’t just an issue for employees; a bad boss can have a powerful impact on company cost. Indeed, companies lose about $7.29 per day for each poorly communicating manager in their organization, according to Vital Learning, a management and leadership training program provider.
“Managers have a profound impact on the well-being of employees,” says Laura Hamill, chief people officer at Limeade, an employee engagement company. “That just makes sense — how could you feel good and have a sense of purpose if your manager works against you? We know that our feelings about work can play a huge role in our overall quality of life — it can be a main source of stress or something that brings purpose to our lives.”
A good manager can be identified by three qualities, says Alexander Alonso, chief knowledge officer at the Society for Human Resource Management. First, they are someone who is in constant contact with employees, providing engaging, open and transparent communication. Second, a good manager is focused on performance management, meaning that supervisors need to prioritize evaluating each employee's personal growth, and their role within the team, so there is consistent productivity.
“The third thing is not making a mess and not falling into a hornet's nest of a mess associated with people management,” Alonso says. “There are some basic things that are just absolutely critical. Don't be the person who tells an inappropriate joke or who tells somebody that you don't like them.”
A team leader with all of these qualities can have a significantly positive impact on employee mental health and well-being.
A good manager can empower, challenge, educate, enable employees to feel part of a team, and find opportunities for professional and personal development, says Patricia Elias the chief legal and people officer at ServiceSource, an outsourced go-to-market services provider that delivers digital sales, customer success and renewal solutions to B2B enterprises.
“Of course, a bad manager does the opposite — at best, creating a disengaged team, and at worst, destroying confidence and potential,” Elias says.
While a poor manager can create a difficult work environment for employees, there are steps organizations can take to create a more effective manager and a more engaged and productive workforce.
There are five skills employees say people managers could improve to create a more positive work environment, according to the SHRM survey: communicating effectively (41%), developing and training the team (38%), managing time and delegating (37%), cultivating a positive and inclusive team culture (35%) and managing team performance (35%).
“There is no relationship in the workplace more powerful than the one between people managers and employees," says SHRM CEO Johnny C. Taylor. "As working Americans challenge organizations to manage and lead differently, those that don't will find themselves left behind. By skilling up managers, HR can spend more time strategizing, cultivating culture and delivering bottom line results.”
Bad managers tend not to recognize that quality in themselves and employees typically don’t report these incompetencies to upper management out of fear of retaliation or of losing their jobs. So it is up to HR to identify and fix these issues.
“Where HR really comes in is their one-on-one interactions with the managers,” Alonso says. “Bad managers tend not to be self reflective, and one of the things that stands out is, they will not hear the things that they say. And HR plays an important role in sort of parroting back what it is that they need to do.”
Another tactic HR can utilize to deal with this issue is interviewing the staff beyond the onboarding and exiting processes, Alonso says.
About 84% of American workers say poorly trained people managers create a lot of unnecessary work and stress, according to the SHRM survey. A further 57% of American workers say managers in their workplace could benefit from training on how to be a better people manager. Half of those surveyed feel their own performance would improve if their direct supervisor received additional training in people management.
“Unfortunately, many of us have had bad managers and have learned how we don’t want to manage others — so we’ve rejected those approaches and embraced a more human management style,” Limeade’s Hamill says. “But it’s hard to be effective without also having positive manager role models and the psychological safety in our organizations to stand up to traditional command-and-control models.”
SOURCE: Schiavo, A. (20 August 2020) "Bad managers are costing employers their workforce" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/bad-managers-are-costing-employers-their-workforce
Personalization helps meet the needs of multiple generations in the workplace
In many workplace organizations, there has been an increase in age demographics. As many generations are beginning to work together, it's necessary for organizations to cater to all generations while catering to their different needs, wants, and styles. Read this blog post to learn more.
Changing demographics are creating more age diversity in the workplace, and this 5-generation age range means employers are increasingly faced with catering to different priorities and communication styles with benefits.
When it comes to health and wellbeing, employees between the ages of 55 and 64 prioritize benefits related to physical health, while younger employees care more about social and mental health, according to a study from Optum.
“The one-size-fits-all approach to communication, benefits and services needs to evolve,” says Seth Serxner, chief health officer at Optum. “The challenges a 35-year-old woman with young kids has is very different from a boomer or an empty nester who are dealing with other issues, so the life circumstances are very different.”
Instead, employers should look towards implementing a personalized communication strategy, or even hyper-personalization of benefits related to life cycles, Serxner says.
“If you think about saving in a health savings account, for example, we like to really target these different groups,” he says. “Once we do that, we see a tremendous increase in contributions and the overall savings averages.”
Wil Lewis, a diversity and inclusion executive and head of global disability strategy at Bank of America, says that since the company functions in several different countries, it emphasizes diversity of experience, culture and generations.
“One of the things that we've done as an organization is focused on how to integrate the wisdom that comes from past experiences and be sure that we leverage some of their ideas and make decisions for the future,” Lewis says.
Bank of America is one of over 1,000 employers who have signed the AARP Employer Pledge Program, a nationwide group of employers that stand with AARP in affirming the value of experienced workers and are committed to developing diverse organizations. They have pledged to promote equal opportunity for all workers, regardless of age.
Bank of America also has an intergenerational employee network, with chapters across the U.S. and other countries. The network has, among other things, created mentoring programs where employees in different generations can come together and learn from each other in person or virtually.
“It's actually one of our fastest growing employee networks inside the company,” Lewis says. “We’re really trying to drive connectivity and opportunity for them to learn from one another.”
The company aims to have a broad and comprehensive benefit range that touches on all individual generations, says Ebony Thomas, a global human resources executive at Bank of America.
“We are really thinking about where employees are in their life cycle, and tailoring services, learning, training or benefits to that life cycle,” she says. “It's really thinking ‘are we inclusive of everyone in the organization, in different stages and points in their lives?’ and how a benefit impacts them.”
The Optum data also discovered differences in financial service needs among generations. Younger generations are more concerned about debt, student tuition and how to start saving, whereas older generations may be more interested in things like buying a house, family health or retirement, says Optum’s Serxner.
Technology is another area of great discrepancy among the workplace age gap. Serxner says understanding how millennials or younger generations think about text messaging versus older generations can help employers rethink how they’re utilizing technology and what impact it has.
“There can be mental and behavioral impacts from using technology,” he says. “Employees can start to feel isolated, lonely or left out, based on the way an organization might cater to only one group, or might have a bias toward one kind of technology, whereas some people really feel it's critical to be face-to-face or on the phone.”
It’s critical employers learn and understand the makeup of their workforce, and tailor their communication strategy to their needs, Serxner says. Employers can drive up engagement and participation in their benefit offerings.
“I work with one digital company communications company that’s more than 70% millennial, and all of their outreach, benefits and promotions are phone based,” Serxner says. “I have other older energy and utility companies where they still do big pool meetings, and hand out brochures and packages, where they have individuals explaining the benefits. So the employers tend to have a sense of who their populations are, and tailor their approaches accordingly.”
SOURCE: Nedlund, E. (08 May 2020) "Personalization helps meet the needs of multiple generations in the workplace" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/personalization-helps-meet-the-needs-of-multiple-generations-in-the-workplace
3 steps to optimize intern onboarding and training
Internships are often used to help students form a decision of where they may want to continue their career, or what field they may want to pursue. Read this blog post to learn three steps on optimizing interns and their training.
HR leaders face myriad challenges in crafting a positive candidate experience and establishing a strong culture across organizations, and there's an added twist when it comes to internship programs: this must be achieved in an exceptionally short amount of time.
"As much as Facebook is evaluating interns for their long-term potential as future employees, we know for certain that interns are also evaluating whether Facebook is where they want to launch their career," Oscar Perez, diversity recruitment and programs manager at Facebook, told HR Dive. "Interning allows college students to make more informed decisions about the type of company they want to work for and helps them crystallize a vision for the type of employee they want to be."
The intern experience trifecta
Multiple academics and learning experts echoed Perez's sentiments to HR Dive, generally suggesting that HR can find success with three steps: a short, formal onboarding; building in mechanisms for continuous skill-building; and a focus on the value of exposure to the business world.
Some formal onboarding
While some experts suggest that employee onboarding plans should cover at least a new hire's first 90 days, that's obviously not feasible for an internship that may last only 90 days.
"Something on the order of 10 to 15% is not unusual," Brooks Holtom, a management professor at Georgetown University told HR Dive. "Two or three days of up front training, and then maybe two hours a week on a Friday helps to increase both the capacity of the people but also the probability that they enjoy the work and they come back."
Still, an employer's onboarding for traditional employees may provide a roadmap, especially when it comes to the early days. This should include administrative tasks, introductions and acclimation to tasks.
"For all interns [at Facebook], the first day of their internship is spent in New Hire Orientation," Perez shared. "Where you get to hear from employees around the company on guiding principles that we anchor in as a company, critical logistical information that you'll need to navigate your time as an intern, [and] get an understanding of the other interns that will be your ‘home-base' community during your time at Facebook."
From there, interns meet their teams and learn more about the scope of their internship project, Perez continued. They also attend role-specific training on tools, expectations and critical concepts for both their role and beyond.
It may help to think about onboarding in three parts — pre-boarding, orientation and ramping up to productivity — according to Leslie Deutsch, director of learning solutions at TEKsystems. Deutsch previously shared a model for onboarding traditional employees; a similar, albeit more streamlined, structure can help when thinking about interns, she said.
"You want to give them exposure to your organization," Deutsch told HR Dive in a February interview, adding that it's important to make clear company values, mission and vision. Although, if interns are there to support a specific project or initiative, it may need to be more detailed, she said.
Pre-boarding can also be valuable, both as a way to engage the intern as a high-potential full-time candidate and to ensure they are learning as much about the company as they can before their first day. "I've seen pretty commonly [that] the onboarding and training actually starts before they even formally start the job. It's about building the relationship," Nicole Coomber, a professor of management at the University of Maryland, told HR Dive. "There are a lot of smaller interactions that happen before they come on board so that they have a lot of clarity on what they're actually doing when they get there."
Continuous, experiential training
Following formal onboarding, HR will want to focus on continuous learning, according to Holtom.
He noted that such efforts are good for building capacity and making sure that interns feel they are gaining from the experience. There are a lot of ways to deliver this kind of training, however, and it does not need to be formal or in-person; it can be worthwhile, for example, to make learning opportunities experiential.
"[Students] want to gain the experience that prepares them for the next professional opportunity and the chance to build relationships with other professionals in their field. That really sets apart a positive internship experience from a negative one," Rachel Loock, associate director of career services at the University of Maryland's Robert H. Smith School of Business, told HR Dive.
For graduate school interns, experiential learning can be particularly valuable because they are already experienced professionals that may be making a career switch. They may need to get up to speed on certain software or business concepts to successfully make that switch.
"MBA internships are often used as a ‘bridge' to pivot from one industry or function to another, Doreen Amorosa, associate dean of career services at the Georgetown McDonough School of Business, told HR Dive. "Successful internships allow MBA students to demonstrate newly acquired academic skills which enable those career transitions," she said.
SOURCE: Kidwai, A. (13 April 2020) "3 steps to optimize intern onboarding and training" (Web Blog Post). Retrieved from https://www.hrdive.com/news/3-steps-to-optimize-intern-onboarding-and-training/576014/
Viewpoint: 3 Steps to Make Learning Part of Company Culture
Workplaces are constantly changing, and so is the world of work. Where things are constantly changing, culture is changing as well. Read this blog post to learn helpful tips for learning company culture.
As technology transforms the world of work, learning is moving from the periphery to the core of corporate strategy. Upskilling is quickly becoming a business imperative, and hiring managers are teaming up with talent developers to ensure that business leaders have the talent they need to thrive.
With good reason, LinkedIn Learning's 2020 Workplace Learning Report shows that nearly all of today's talent developers have no problem securing executive buy-in, and CEOs now spend 20 percent more time learning soft skills than their employees spend. But in a workplace where the pace of change continues to accelerate, it takes more than just buy-in to build a learning culture that companies need today. As we work through the pandemic, an agile learning culture is needed now more than ever—one that enables employees to demonstrate their ability to quickly adapt to new environments, new protocol and shifting market demands.
Over the last year, Kraft Heinz's embrace of ownership—a principle that is core to our DNA as a company—has helped us to spark a learning transformation at Kraft Heinz. Here are three practices that can help you do the same.
1. Own your learning.
It's no secret that great leaders lead by example, and it's no different with learning initiatives. Learning champions must inspire and encourage others throughout their organization to pursue learning. That's difficult to do without first fully embracing learning themselves.
As chief learning officer, I needed to put myself in my learners' shoes. I couldn't tell them it was possible to carve out time in their busy lives for learning without first doing so myself. So, in February 2019, I made a commitment to learning something new every day. As part of that daily learning commitment, I completed a variety of learning experiences through our company's corporate learning platform, Ownerversity, and began sharing what I learned through our internal messaging app, the KetchApp.
Using the hashtags #LearnLikeAnOwner and #MakeTimeForLearning, my colleagues were able to follow along on my daily learning journey, picking up work-relevant lessons, tips and insight and—most importantly—seeing just how much I personally valued learning. They saw what was possible. A year later, learning has become a cultural conversation topic across the organization.
2. Build and keep building.
Taking a grassroots approach to building excitement for learning has helped inspire a movement among our employees. But we also knew that movement had to actually lead our workers somewhere worthwhile. For us, it was not a matter of "if you build it, they will come." It was the inverse: The employees were already on their way, and we had to ensure we continued to build and enhance a learning ecosystem that could truly support their aspirations and learning goals.
It started with making a commitment to learning at every level and ensuring that the learning was ongoing and democratic. Anyone who wants to learn can have that opportunity, every day. Requiring more than a one-and-done approach, this initiative needed a team dedicated to developing the tools to make sure that can happen.
Our learning offerings allow for active learning, encourage continuous reflection and help employees see the impact learning can have on their careers. Those offerings include custom courses, as well as access to thousands of LinkedIn Learning courses and other digital resources focused on business, technology and creative subjects to help employees build the skills they need throughout their careers.
3. Activate ambassadors.
One person alone cannot champion learning across an entire company. Learning champions must create a network of like-minded ambassadors at every level who can inspire and encourage their co-workers. Building a learning culture cannot simply be a top-down mandate; it must be a ground-up movement.
We expect all of our employees to seek out high-impact learning experiences, commit to learning—even if for just a few minutes—every day, and encourage others to do the same. On some days, that could be dedicating time to an e-learning course, but on others, it could be listening to a podcast, attending a live learning event or reading a magazine article. Last year, to help promote this goal, we created learning-commitment categories to help guide employees in setting aside time to learn from September through the end of the year. The goals included 15 minutes per month, 15 minutes every other week and 15 minutes per week. Even our CEO and chief people officer pledged to make one of these commitments.
Some employees have become especially invested in this new culture of learning. We recently invited 20 dedicated learners to a #LearnLikeAnOwner retreat, rewarding their commitment to learning, and also providing them with tools and resources they need to inspire others. They returned to their roles within the organization with the knowledge and confidence of being official learning ambassadors. Other employees know they can turn to these learning ambassadors for the inspiration, encouragement and guidance they need to pursue learning every day.
What I've learned over the past year as chief learning officer at Kraft Heinz is that leading by example paired with creating an environment of excitement and inspiration can truly fuel a cultural change.
SOURCE: Bassey, P. (21 May 2020) "Viewpoint: 3 Steps to Make Learning Part of Company Culture" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/viewpoint-3-steps-to-make-learning-part-of-company-culture.aspx