What to do when your state says you need a retirement plan
Did you know: Almost 25 percent of U.S. adults lack any retirement savings. In response to these findings, many states are beginning to require employees to participate in state-sponsored retirement programs. Read the following blog post to learn what to do when your state requires you to participate in a state-sponsored retirement plan.
We’re all too aware of the looming retirement crisis. Almost 25% of adults in the United States lack any retirement savings, according to the Federal Reserve. In response, a number of states have decided to enact legislation that require employees to participate in their state-sponsored retirement program.
What does this mean for business owners not currently offering a plan?
For businesses operating in a state where legislation has been proposed, it’s very likely that they will have to make some changes in the not-so-distant future. Some state plans come with penalties for not enrolling, while others offer appealing incentives for involvement. However, the real question may not be whether you want to offer a state-sponsored plan, but rather, whether a state-sponsored plan is the right option.
Most state-sponsored plans are designated as Roth IRAs, using investments chosen by the state, and are low-cost. However, there are also benefits to creating a customized plan that works for you and your employees. Issuing your own plan allows you to:
- Select your own investments to include the right fund variety and offer user-friendly models like target-date funds;
- Create your own plan design so you have more control over things like company matching and eligibility rules;
- Derive significantly greater tax benefits because a 401(k) plan allows deductions of pre-tax earnings of up to $19,000 whereas an IRA only permits deductions of up to $6,000 in earnings;
- Borrow against your plan in times of emergency; and
- Keep costs equally low thanks to new entrants and advanced technology that eliminates overhead.
- While state-sponsored plans are getting the conversation started, it’s important to look at the bigger picture strategy and determine the best short- and long-term decisions.
To better understand the urgency behind any retirement plan decision, it’s worth digging deeper into the specific requirements of your state. But regardless of what state you’re in, there are many perks to offering a company-sponsored retirement plan such as tax incentives, recruitment and retention benefits, and investing in your employee’s future. And thanks to new entrants and advanced technology, many traditional inefficiencies and excess fees have been eliminated, keeping costs down.
States are putting emphasis on the retirement crisis and stepping in to help. But at the end of the day, this is about setting your employees — and yourself — up for retirement security. Look at the current proposals in your jurisdiction, think about what you’re trying to accomplish, and determine what will offer the greatest value for you and your team. Everyone deserves retirement security.
SOURCE: Brecher, A. (22 November 2019) "What to do when your state says you need a retirement plan" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-to-do-when-your-state-says-you-need-a-retirement-plan
Key factors in choosing your benefits during open enrollment
Employers are now realizing that in order to attract and retain talent, they have to provide the best benefits. But, how do employees select the right benefits out of all the available options? Read the following blog post from Employee Benefit News for a few key factors to consider when choosing your benefits during open enrollment.
Even if you are a veteran in choosing employer-sponsored benefits, the landscape is shifting. Over the past years, we’ve seen changes to mental health counseling stipends, extended maternity/paternity leave and family building. Companies across industries are realizing that in order to attract and retain talent, they need to provide best in class benefits that save employers unforeseen costs in the long run, and shows employees that their employers are invested in their wellbeing — in and out of the office.
With all these available options and only a short window to select what’s right for you, here’s what should you look out for during open enrollment.
Which benefits matter to me?
The beauty of a diverse workforce is that employees may represent various walks of life. However, this means that not all benefits make sense for every person. Perhaps your boss is prioritizing childcare for his toddler while your colleague is looking to refinance student loans. Whatever your life circumstance, ask yourself, “Which benefits are most pertinent to my life and life goals in the coming year?”
For instance, fertility benefits may not be immediately attractive at first glance, even if you’re actively thinking about starting a family. But 1 in 8 couples will be impacted by infertility and treatment without coverage can be wildly expensive. It’s important to make sure you’re thinking critically and getting all the necessary information when browsing for your benefits. Rule of thumb: if this could impact you in the coming year, even if you’re not 100% sure, opt-in for coverage.
What’s actually covered?
During open enrollment, be sure to ask your benefits team about how robust each offering is and what’s included. A particular benefit may look like it has a lot to offer, but after further investigation, you may uncover restrictions, unforeseen out of pocket costs and other obstacles that may make it harder for you to utilize the benefit.
With fertility benefits, many conventional carriers offer coverage with a dollar maximum, meaning you’d max out on coverage before completing a full IVF cycle. Plus, there are additional costs outside of the basic IVF procedure, like diagnostic testing, medications, and genetic testing which may come with a hefty price tag you’d have to pay for. Without adequate coverage, many people have to make cost-based decisions, forgoing the technology they need to reach a successful outcome.
As an alternative, Progyny’s coverage is bundled, meaning your entire treatment event is covered and you do not have to worry about what is or is not included, or fear running out of coverage mid-way through. Many vendors have similar disruptive solutions to ensure they’re not leaving their members high and dry during difficult times.
When sifting through options, be sure you’re asking what’s covered and not covered under your plan. A lot of benefits may seem expansive, but make sure you’re getting the most out of the coverage that’s available to you. Ask: Are the best clinics in your area included in your plan as “in-network”? Do you have to meet medical necessity requirements before being allowed to access your benefits?
Which benefits are supported?
Once you’ve opted in for benefits during open enrollment, how do you access your benefit? How do you move forward with treatment? Does your benefit provide access to the doctors in your area? Since many of these offerings are complex and without proper onboarding, how can you be expected to understand the next steps?
With the growing emphasis on mental health and concierge member experience, companies like Progyny try to eliminate some of the member’s burden and create an easy to use benefit model that provides member support. For example, our dedicated Patient Care Advocates — a concierge-style fertility coach — helps members navigate the clinical and emotional aspects of your fertility treatment, making a difficult process a bit easier.
Another important factor to consider when shopping for benefits is access to care where you live — are the doctors that your insurance covers close by and easy to get to? When choosing your benefits, look out for any information about access to support. The goal of a benefit is to make your life easier, not leave you feeling confused and stressed in times of need.
What do I do if I’m unhappy with the benefits offered during open enrollment?
Often times, employers are unaware of what an employee wants until it’s brought to their attention. If you are unhappy with the benefits offered, raise the issue with your HR team! You are your own best advocate and change begins with you.
Not sure where to start? If you are comfortable, speak with your colleagues. Seek out a company resource group to see if others have similar needs. This way you can help form a plan or a way to approach HR. Once you have an idea of what you need, talk to HR to explain why the proposed benefit would be pertinent to you and your colleagues. Employers understand that the key to keeping good talent is making sure they’re happy.
Open enrollment can be overwhelming but take advantage of the resources you have. Ask questions, do your research, and discuss the options with experts in your office. With an arsenal of helpful information at your disposal, open enrollment should be stress-free and get you excited for all of the incredible employer-sponsored benefits in your future.
SOURCE: Ajmani, K. (25 November 2019) "Key factors in choosing your benefits during open enrollment" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-to-choose-benefits-during-open-enrollment
How employers can prevent a new parent penalty in the workplace
The new parent penalty, a bias against new parents, often occurs when employees return from parental leave. The penalty presents itself in managers and colleagues who assume individuals are no longer interested in the upward growth of the company. Read this blog post from Employee Benefit News for ways employers can prevent a new parent penalty in the workplace.
Returning to work after parental leave is a rigorous experience for many employees. It can be a difficult time filled with adjustment pain points and career growth setbacks, all stemming from a surprising cause: the new parent penalty.
This penalty — or bias against new parents — presents itself by way of managers and colleagues assuming these individuals are no longer interested in or dedicated to upward growth in the company in the same way they were prior to taking time off. Unfortunately, this is an all-too-common hurdle. This bias often has a negative impact on the morale and career potential of employees who experience it.
Yet there are several actionable steps that HR leaders and employers, in general, should keep in mind to help new parents get back into the swing of things at work.
Evaluate your current leave options. The first step to ensuring a smooth re-entry to the workplace is implementing a leave policy that allows employees enough time to adjust to their new roles as parents. Only 14% of Americans have access to any paid family leave for the birth of a child, according to Pew Research Center. Even more, 23% of mothers are back on the job within 10 days of giving birth whether they're physically ready or not, according to the Department of Labor. This often results in mothers leaving the workforce, even if though they want to stay. Paid family leave is critical — it improves health outcomes for recovering mothers and new babies and improves retention of new parents.
Set the entire team up to succeed. One thing I often hear from clients at Maven who struggle with returning to work is that there is pressure from managers to resume a business as usual mindset, ignoring the significant shift in their lives. Managers should be trained to help mitigate this by providing better re-entry support. Employers can no longer expect parents to work at all hours or travel at the drop of the hat without some flexibility. Providing a transition or ramp time can be extremely successful in helping parents juggle their often competing work priorities and the needs of their children. Transition time also helps set expectations for other team members who may feel frustrated and overworked when parents come back to work unable to operate in the same capacity that they once did — enter parental bias.
Support career advancement with individualized plans. A client who recently returned to work after maternity leave was surprised to learn during a progress meeting that her manager had placed her on a so-called mommy track. She had requested a flexible work schedule upon her return from leave. Her manager assumed that meant she was no longer interested in opportunities for growth at the company.
This mother is not alone, many new parents face similar roadblocks in career advancement as a result of employers scaling back on assigning them responsibilities that would keep them on the leadership track. Instead of assuming what the new parents are looking for, employers should offer individualized paths for success. This ensures that new parents can continue to grow their careers even if they choose more flexible schedules.
Create a support system. Implementing employee resource groups can be an invaluable tool for new parents looking to connect and receive advice from their colleagues, who have been in their positions. Connecting employees with peers who can speak first hand about the pain points of new working parenthood, and how to make the transition easier can go a long way. Having easy access to a network like this lets employees feel like their concerns are heard and their needs are being met. These employees are in turn more likely to confidently stay in their careers rather than dropping out.
Employers are understanding that there are significant benefits to supporting their employees’ transition back to the workforce, including an increase in retention, culture improvements, and positive impact on their bottom lines. In short: paid family leave is a good thing, and when combined with individualized support from managers and team members, a parent’s return to work is smoother. By understanding the needs of their employees, employers are better equipped and more prepared to anticipate and prevent parental bias that hinders employee and company growth.
SOURCE: Ferrante, M. (5 November 2019) "How employers can prevent a new parent penalty in the workplace" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-employers-can-prevent-a-new-parent-penalty-in-the-workplace
Know your people, know your data: Keys to measuring employee engagement
According to research, over half of employees believe that health insurance is important in terms of their job satisfaction. Read the following blog post for ways employers can measure employee engagement.
Offering a total compensation and benefits package that fits employee needs drives morale, motivation and performance in the workplace.
Simply put, people who are happy and healthy are more productive. When an organization offers benefits that appeal to employees (and workers know how to use these benefits) employers should see an increase in total productivity.
On the other hand, if a company is off the mark with the total compensation package, or simply hasn’t communicated the benefits to people correctly, it will either see unchanged productivity or a decline. Organizations struggling to find improvement in productivity should look at their employee benefits offerings for answers.
Providing effective group health insurance and well-being programs is a good way to reduce the amount of sick leave worker's take. If employees promptly get healthcare when they’re ill, they’re more likely to be healthier overall. If an organization doesn’t offer appropriate health benefits, the result can be presenteeism.
Additionally, the cost of presenteeism multiplies when sick staff are contagious. One sick person refusing to take a day off can snowball into multiple people arriving ill to work on subsequent days. When illnesses reach critical mass and it’s harder for people to recover from things like the flu or a cold, organizations may find themselves short-staffed when employees finally pay to see a doctor.
Job satisfaction and morale are also linked to employee benefits. Research shows more than half of employees believe that health insurance is important in terms of their job satisfaction — even more crucial if staff live in an area where medical services are expensive.
Strategies to measure benefits engagement. HR staff have multiple ways of measuring how certain workplace functions are performing. Here are some effective methods organizations can use to measure benefits engagement.
Staff surveys. Questionnaires that seek to understand what benefits your staff know they have, and how they’ll use them.
Pulse surveys. Asking staff short, frequent questions about a benefits platform.
Focus groups. Gathering cross-functional groups of staff members together to have a facilitated discussion about benefits.
Exit surveys. Include questions about benefits and satisfaction levels during exit surveys, and then investigate what their next employer might be offering to have lured them away.
If organizations are not regularly questioning how well their benefits plan is performing, they may be missing an opportunity to get key insights into how employees feel about their packages.
Offering employee benefits isn’t just to support an organization’s staff, it should also support an organization’s long-term sustainability. Employee engagement is one key measure. The challenge for organizations is ensuring not only that they include benefits that will be relevant to staff, but also that they properly educate them in what those benefits are.
The less staff are educated on what benefits exist and how they can use them, the less likely they are to engage with them. Not having an appropriate communication strategy can often set benefits plan performance behind.
Working with analytics and claims data can indicate when specific benefits aren’t being used. Knowing what causes the lack of engagement requires a bit of discussion and investigation, but finding sustainable solutions is completely dependent on understanding whether the issue is the benefits themselves, or the communication to staff.
SOURCE: Rider, S. (1 November 2019) "Know your people, know your data: Keys to measuring employee engagement" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/using-data-to-measure-employee-engagement
Company Gifts That Workers Hate
Gift cards, water bottles and coffee mugs are just a few examples of workplace gift ideas that employees do not want or make them feel unappreciated. According to a new survey, more than 8 in 10 employees have received a workplace gift that they didn't want. Continue reading this blog post from SHRM to learn more.
Coffee mugs and water bottles emblazoned with the company's logo. Gift cards to stores that employees rarely visit.
These are among the gifts that companies give to workers—and that workers hate, that make them feel unappreciated, and that leave the impression that their employers are thoughtless.
So says a new survey by Snappy, the New York City-based employee engagement company, which found that more than 8 in 10 U.S. employees have received a workplace gift—mostly from managers—that they didn't want.
As the winter holidays approach, and as companies bestow gifts to show they appreciate their employees, the survey of more than 1,000 U.S. workers demonstrates that leaders may want to give more thought to workplace gift-giving.
No Logos, Please
Almost 3 in 4 workers would prefer to get a gift without their company logo on it, according to the survey, which Snappy conducted in September.
"Some employees have reported to me that they don't mind some gifts with logos, but they resent feeling like a 'walking billboard' for the company," said Paul White, who has a Ph.D. in psychology and is co-author of The 5 Languages of Appreciation in the Workplace (Northfield Publishing, 2019). "Others state that when they are given gifts that have the company's logo, the item immediately is disqualified as a gift—because the focus of the item is the company, not the recipient."
White's research into how more than 100,000 employees feel about the workplace found that only 6 percent identified gifts as the primary way they want a company to show appreciation—far below getting words of affirmation (46 percent), quality time with a supervisor or co-workers (26 percent) and getting help from supervisors or colleagues on a project (22 percent).
"Employees are not saying they do not want tangible rewards … for doing good work," White wrote. "But what the data show is that when choosing comparatively between words of affirmation, quality time or an act of service—receiving a gift is far less meaningful than appreciation communicated through these actions. For example, employees often comment, 'If I receive some gift but I never hear any praise, no one stops to see how I'm doing, or I never get any help—the gift feels superficial.' "
Are Companies Catching On?
One would think, given research and books like White's that demonstrate how people feel about workplace gifts, that companies would adjust their gift-giving practices. Often, they don't because no one asks employees what they thought about the present. Workers are in a tight spot: If they complain or don't seem enthused, they may be seen as ungrateful or demanding, White said.
In fact, the Snappy survey found that of those workers who got a gift they didn't like, 9 in 10 pretended they liked the gift anyway.
"The leader needs to be interested in what the meaning or message of the gift is, [but] most often, it is a rather thoughtless process," White said. "In work relationships, it is the thought that counts. For employees who value gifts, either giving everyone the same item or giving them a generic gift with no thought or personal meaning is actually offensive."
Cord Himelstein is vice president of marketing and communications for HALO Recognition, an employee rewards and incentives company based in Long Island City, N.Y. He said he thinks companies are paying attention to their gift-giving practices. He noted recent data from WorldatWork showed that about 44 percent of recognition programs get updated or changed every year.
"If management isn't actively listening and applying feedback in a systematic way, then there's no point in offering gifts at all," he said. "Nailing down the right balance of rewards that employees really love takes time and effort."
Best and Worst Gifts
Respondents said that some of the "worst" gifts employers ever gave them included a pin, a plaque, and a gift card to a store they'd never visited.
In fact, more than 3 in 4 said a gift card is less meaningful than an actual gift, and almost 9 in 10 admitted that they'd lost the gift card or forgotten that it had a balance on it.
"Gift cards feel transactional and impersonal," said Hani Goldstein, co-founder and CEO of Snappy. "Employers fail to realize that gift cards put a price tag on the recipient's value and make them feel like they're worth $25. Our research points to one key insight: The most appreciated gifts aren't impactful because of their actual monetary value. What matters most is what the gifts are and how they are given."
Employers should remember that things like pins and plaques, Himelstein said, "are commemorative add-ons, not whole gifts, and should always be supplemented with more substantial and appropriate rewards."
Employees also described some of the "best" gifts employers gave them, which included an espresso machine, a trip to Paris, an iPad and a television.
White noted that such expensive gifts can be impractical for a company. They may be appropriate in rare situations, White said, such as rewarding a worker who reached an exceptional goal or recognizing someone who's served long and well.
"Generally, meaningful gifts between employees and supervisors are more impactful when they are personal and thoughtful rather than pricey," he said.
Himelstein said more expensive gifts—at least those more expensive than mugs or pins—"aren't only practical, it's a best practice."
"Nobody wants a cheap gift for their hard work, and employees can always tell when the company isn't trying," he said. "Also, don't lose sight of the fact that you don't need to constantly shower employees with expensive gifts to make them feel appreciated."
SOURCE: Wilkie, D. (14 November 2019) "Company Gifts That Workers Hate" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/employee-relations/Pages/gifts-workers-hate-.aspx
DOL’s new fluctuating workweek rule may pave road for worker bonuses
The Department of Labor’s new fluctuating workweek rule could give employers additional flexibility when calculating employee overtime pay and could potentially make it easier for workers to get bonuses. Read the following blog post to learn more about this newly proposed rule.
The Department of Labor’s new proposal would give employers additional flexibility when calculating overtime pay for salaried, non-exempt employees who work irregular hours — and may make it easier for some workers to get bonuses.
The new proposal, released this week, clarifies for employers that bonuses paid on top of fixed salaries are compatible with the so-called “fluctuating workweek” method of compensation, or a way of calculating overtime pay for workers whose hours vary week-to-week. Supplemental payments, such as bonuses or overtime pay, must be included when calculating the regular rate of pay under the Fair Labor Standards Act, according to the DOL.
"For far too long, job creators have faced uncertainty regarding their ability to provide bonus pay for workers with fluctuating workweeks," says Cheryl Stanton, wage and hour division administrator, at the DOL in a statement. "This proposed rule will provide much-needed clarity for job creators who are looking for new ways to better compensate their workers."
Paul DeCamp, an attorney with the law firm Epstein Becker Green’s labor and workforce management practice, says the DOL rule clears up ambiguity surrounding when employers can use the fluctuating workweek rule. A preamble in a 2011 Obama-era regulation suggested that bonuses were contrary to a flexible workweek, DeCamp says.
“The department’s past rulemakings have created ambiguity — paying employees a bonus makes the fluctuating workweek calculation unavailable,” DeCamp says. “During the last administration, some people with DOL took the position that the fluctuating workweek was only available when the compensation the employee received was in the form of salary.”
This new update may make it easier for employers to pay out bonuses or other kinds of compensation to a specific group of workers. Labor Secretary Eugene Scalia says the proposal will remove burdens on American workers and make it easier for them to get extra pay.
"At a time when there are more job openings than job seekers, this proposal would allow America's workers to reap even more benefits from the competitive labor market,” Scalia says.
DeCamp adds that the update will make it easier for employers to provide bonuses to these workers, without being concerned they are going to impact their overtime calculation.
“What this does is it makes it possible for employers who have salaried non-exempt employees to pay other types of compensation too — without worrying that in paying that bonus or other type of compensation they’re going to screw up their overtime calculation,” DeCamp says.
But DeCamp warns that employers should not confuse this regulation with the overtime rule that the DOL finalized in September, which raised the minimum salary threshold for overtime eligibility to $35,568 per year.
“These two regulations are not interlocking. They don’t really deal with the same subject,” he says. “They’re both talking about very different employee groups.”
SOURCE: Hroncich, C. (6 November 2019) "DOL’s new fluctuating workweek rule may pave road for worker bonuses" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/dols-fluctuating-workweek-rule-helps-with-worker-bonuses
A benefits wishlist for millennial employees
Did you know: 63 percent of millennials would struggle to cover an unexpected expense of $500. With millennials becoming the new core of today's workforce, many employers are tailoring their job postings, descriptions and benefits to correspond with the millennial wish list. Read the following article to learn more.
Millennials are the new core workforce. Their concept of work is different than the standards set by previous generations. They bring bold, new approaches of what work should be, how and where it should be performed, and what the rewards for work should be.
While this has made some employers uncomfortable, millennials are not likely to change their ways. Employers must reassess their concepts to bring out the best of the unique millennial personality.
When I look at the U.S. workforce, I see a dramatic shift in the attitudes, personalities and attributes of millennials, which makes up the majority of the workforce. Millennials bring many positive attributes to the table, including a preference for flat management structures, multiple degrees, technological skills, energy and self-confidence. They also have high expectations for themselves, prefer to work in teams, are able to multitask and seek out challenges.
However, millennials have the highest levels of stress and depression of any generation. About 20% of millennial workers have suffered work-related depression. Millennials want their own living space, but they’re less likely to become homeowners because of student loan debt. Only 6% of millennials feel they're making enough to cover basic needs, according to an Economic Innovation Group national survey of millennials. As a result, 63% of millennials would struggle to cover an unexpected $500 expense. This generation wants to live within their means, but they’ve never been taught how — they need and want to be educated on how to achieve financial independence.
Think about your corporate strategy for attracting millennials. Here are just a few of the ways companies are tailoring their job postings, descriptions and benefits to correspond with the millennial wish list.
Working with meaning. Millennials want to have meaning in their work. Past generations may have worked simply because they needed to pay the bills. Millennials want to get paid too, but they also want to know that their employer is doing more than making and selling products or services. They aspire to social causes and want to know why the organization exists and how they can personally participate and contribute in that culture.
Continued personal growth and career advancement. Millennials want to be coached and have work-life balance. They want management feedback, even if it’s negative. Regular pay increases and promotions are important to them too. It shows that you’re invested in their career path and value their contributions.
Flexible hours and the ability to work remotely. They want flexible hours and the option to work from a location of their choice. This flexibility also contributes to their desire for no added workplace stress. Technology has made it possible to connect 24/7 from anywhere on any device. If you have yet to adapt your culture to accept this new norm, you’ll likely be missing out on this generation of candidates.
Technology. Millennials are smart-device people. Who better to move your organization forward than the individuals who grew up knowing how to download and use an app, or create a widget that solves a problem? They think technology-first and is required for any organization looking to remain competitive.
Financial wellness. A robust financial wellness program that includes self-directed education, competitions, games and rewards will pique millennial interest. Products and services like financial coaching, cashflow tracking, early wage access and credit resources that address their financial challenges will keep them engaged. Above all, a financial wellness program must be tailored to each individual employee to achieve maximum participation and behavioral change.
Employers must be vigilant in order to keep the best and brightest talent. They should also be proactive in managing their employees on a personal level, especially millennials. Otherwise, they are likely to be disengaged and move on — and that will cost money.
As managers and leaders of the organization, it is your responsibility to ensure that millennials understand their future in the company and to communicate that they don’t have to go somewhere else to advance. Employers and leaders have a responsibility to provide millennials with a desirable place to land, and a culture that encourages them to thrive. Don’t give millennials reasons to leave your organization. We need to support them, engage them, reward them and give them reasons to stay.
SOURCE: Kilby, D. (6 November 2019) "A benefits wishlist for millennial employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-employee-benefits-do-millennials-want
7 Tips for Coaching Employees to Improve Performance
How do you align coaching with individual employees’ needs? Employee coaching is central to improving the performance of employees, as well as helping with employee onboarding and retention. Read this blog post for seven tips to effectively coach employees to improve performance.
Managers and leaders are critical to the success of a business, and so are effective coaching skills. Consistent coaching helps with employee onboarding and retention, performance improvement, skill improvement, and knowledge transfer. On top of these benefits, coaching others is an effective method for reinforcing and transferring learning.
While there are many important leadership skills and competencies, coaching is central to improving the performance of entire teams.
A coaching leadership style is proving to be much more effective with today’s employees than the more authoritarian styles that many business leaders operate under. Leaders who coach employees instead of commanding them are able to build a much more talented and agile workforce, which leads to a healthy and growing business.
Think back to your peewee soccer days (or any team sport, really). I bet you can think of three kinds of teams:
- The directionless group of kids running around aimlessly, taking frequent breaks for cookies and juice.
- The organized group who focused, but still had fun.
- The hyper-focused, aggressive group.
And how do you think these teams got the way they did? The coach, of course! The first group had a coddling coach, the second had a balanced coach, and the third had an intense coach living out his failed soccer dreams vicariously through a group of 6-year-olds.
Which seems like the healthiest group? Hopefully, you said the second one. But how do you coach in such a way that produces a healthy team?
Good coaching can be easy to spot, but hard to emulate.
First, you need to meet your team members where they’re at. Coaching isn’t a one-size-fits-all endeavor. Some people will need a lot more handholding than others, depending on where they’re at in their job role and overall career.
So before we get to our seven coaching tips, here’s a quick look at how you can align coaching conversations with individual employees’ needs.
How to Coach Employees at Different Levels
The best coaches don’t use the same coaching style for each individual team member. They’re flexible enough to adapt to the situation at hand.
There are five levels of employee performance, and you’ll have to adapt your style for each one to coach them effectively:
- Novices
- Doers
- Performers
- Masters
- Experts
Level 1: Novice
Novices are in the “telling” stage of learning. They need to receive a lot of instruction and constructive correction. If you’re confident in the people you’ve hired, then they probably won’t need to stay in this stage very long. Also, watch out for your own micromanaging tendencies – you don’t want to hold an employee back from moving to the next level!
Level 2: Doer
Once Novices begin to understand the task and start to perform, they transition to the Doer stage. They haven’t yet mastered the job, so there’s still a heavy amount of “tell” coaching going on. But they’re doing some productive work and contributing to the team. So, there are now opportunities to encourage new behaviors, and praise Doers for good results.
Level 3: Performer
As Doers start accomplishing a task to standards, they become Performers. Now they’re doing real work and carrying their full share of the load. And they’re doing the task the way it should be done. With Performers, there’s much less “tell” coaching, if any at all. But there’s still feedback, mostly focused on recognizing good results and improving the results that don’t meet expectations.
Level 4: Master
Some Performers may continue to grow on the job and reach the Master stage. At this point, they can not only accomplish tasks to standards, they can do so efficiently and effectively. Plus, they have a deep enough understanding of what should be done that they can teach and coach others on the task. And they know enough to actually help improve standard processes.
Level 5: Expert
Experts are valuable members of the team and may become front-line team leads. Experts don’t need a lot of direction – they’re highly self-sufficient. If anything, they can provide direction to others. Experts don’t necessarily require a lot of recognition and praise to stay motivated, but that doesn’t mean they don’t want any.
7 Coaching Tips for Managers and Leaders
So, now that we’ve gone over the different performance levels your employees can be at, let’s get to what you came for – the tips!
These coaching tips will work with any of those five levels and can help you have more mutually beneficial coaching conversations that will improve overall team performance!
1. Ask guiding questions
Open-ended, guiding questions lead to more detailed and thoughtful answers, which lead to more productive coaching conversations. As a manager or leader, it is critical that you develop strong relationships with your employees. This will help you determine if your employees are curious, have the capacity to perform and improve, and what kind of attitude they have towards their work.
This is where communication skills and emotional intelligence really come into play. Managers must guide conversations both by asking questions and listening, not by giving directives. Employees learn and grow the most when they uncover the answers themselves.
2. Recognize what’s going well
Coaching well requires a balance of criticism and praise. If your coaching conversations are completely focused on what’s not working and what the employee has to do to change, that’s not motivating, it’s demoralizing.
Your recognition of the things your employee is doing well can be a springboard into how they can build from that to improve. We’re not talking about the compliment sandwich here, though, because that coaching technique often devolves into shallow praise that comes off as insincere.
Giving compliments that you don’t actually mean can have a worse effect than not giving any at all, so take the time to think about specific things that are going well, and let your employees know that you see and appreciate them!
Another aspect of this is how the employee likes to be recognized. This is a good question to ask them from the start of your relationship – does frequent recognition help them stay motivated, or is every once in awhile sufficient? Do they prefer recognition to be given publicly or privately? The last thing you want to do is embarrass someone when you’re trying to be a good coach!
3. Listen and empower
Coaching requires both encouragement and empowerment. As a manager and a leader, your job is to build one-on-one relationships with employees that result in improved performance.
Your employees are likely to have a lot of input, questions, and feedback. It’s important for them to know you care enough to listen to what they have to say, so encourage them to share their opinions.
Some employees will have no problem speaking their mind, while others will need a LOT of encouragement before they share an opinion with you openly. Once they do open up, be sure to respect those opinions by discussing them, rather than dismissing them.
4. Understand their perspective
When you’re coaching employees to improve performance and engagement, approaching things from their perspective, rather than your own, will help enormously with seeing the changes and results you want.
Everyone has different motivations, preferences, and personalities, so if you ask questions to help you understand where their “why” comes from and what their preferred “how” looks like, then you can tailor your coaching conversations to align the way they work best with the improvements you’re both aiming for.
For example, maybe you recently moved from an office plan that had lots of individual offices to a much more open-plan, and one of the reps on your sales team has shown a drastic decrease in successful calls. If you start asking questions and find out that this is someone who is excellent in one-on-one conversations, but rarely speaks up in a group setting, then you can see how they’d feel like everyone is listening in on their call, making them less confident than when they had their own space.
With that perspective in mind, you can work with them more effectively on how to get their numbers back up.
5. Talk about next steps
Coaching conversations are meant to yield changes and results, so be sure to clearly define and outline what needs to happen next. This will ensure you and your employees are on the same page with expectations, and provide them with a clear understanding of the practical steps they can take to make changes and improve.
Also, these next steps should be mutually agreed upon – talk about what is reasonable to expect given their workload and the complexity of the changes being made.
6. Coach in the moment
If an employee comes to you with a question about a process or protocol, use this opportunity to teach them something new. If you’re not able to stop what you’re doing right away, schedule time with them as soon as possible to go over it.
Better yet, keep a weekly one-on-one meeting scheduled with each employee so you can go over questions and issues regularly, while maintaining productivity. Coaching employees with a goal of improving performance means making them a priority each week!
7. Commit to continuous learning
Make a commitment to improving your own skills and competencies. If you’re not continuously learning, why should your employees? Lead by example and your team will follow.
Show that you are interested in their success (why wouldn’t you be?). Ask questions about where they see their career going, or how they see their role evolving in the company. Even if they don’t have a plan laid out yet, these questions will make them think about their career and what they want to accomplish within the organization.
Show your employees that you don’t just want them to do better so you look better, but that you’re actively interested in their career, accomplishments, and professional success.
Emotional intelligence (EQ) is a critical aspect of coaching employees in a way that builds relationships, boosts engagement, and improves performance. Managers and leaders can see greatly improved coaching skills by taking steps to improve their EQ – they go hand in hand!
SOURCE: Brubaker, K. (24 September 2019) "7 Tips for Coaching Employees to Improve Performance" (Web Blog Post). Retrieved from https://www.humanresourcestoday.com/?open-article-id=11617247&article-title=7-tips-for-coaching-employees-to-improve-performance
It’s time to consider a wage and hour audit
A record $322 million of unpaid wages were recovered for the 2019 fiscal year, according to the Department of Labor (DOL). With the new salary threshold taking effect January 1, it may be a good time to consider conducting a wage and hour audit. Read the following blog post from Employee Benefit News to learn more.
Those who believed the Trump administration would scale back the Obama-era Department of Labor’s aggressive enforcement of wage and hour laws may be surprised to learn that the DOL recently announced that it recovered a record $322 million in unpaid wages for fiscal year 2019. This is $18 million more than that recovered in the last fiscal year, which was the previous record.
The agency has set records in back wages collected every year since 2015, according to data released by the DOL. This year, the average wages DOL recovered per employee were $1,025. The agency’s office of federal contractor compliance also announced that it had recovered a record $41 million in settlements over discrimination actions involving federal contractors, an increase of 150% over the last fiscal year.
Effective Jan. 1, the new salary threshold that most salaried employees must earn to be exempt from overtime pay will be $35,568, or $684 per week, under the final rule issued by the DOL in September.
With the new salary threshold taking effect soon, and the DOL continuing to aggressively enforce wage and hour laws, it is a good time to consider conducting a wage and hour audit to ensure that employees are properly classified as exempt or nonexempt and that other pay practices comply with the law.
Employers who did this in 2016, only to find out later that the Obama administration’s proposed hike in the salary threshold would not take effect, may have a strong feeling of déjà vu. But this time, there does not appear to be any viable legal challenge that would delay or block the salary threshold change, so employers must be prepared to either increase salaries of “white-collar” exempt employees (who earn less than $35,568) or reclassify them as hourly employees by January.
Among other things, a wage and hour audit should include the following:
- Review all individuals classified as independent contractors;
- Review all employees classified as exempt from overtime under one or more “white-collar” exemptions (administrative, executive, and professional), who must earn at least the $35,568 salary threshold beginning January 1, 2020;
- Review all other employees classified as exempt from overtime, including computer and sales employees; and
- Review all individuals classified as interns, trainees, volunteers, and the like.
In addition to ensuring whether employees are properly classified as exempt or nonexempt, a thorough wage and hour audit should look at a number of other issues, including timekeeping and rounding of hours worked, meal and rest breaks, whether bonuses and other special payments need to be included in employees’ regular rate of pay for calculating overtime, and payments besides regular wages, such as paid leave and reimbursement of expenses.
SOURCE: Allen, S. (8 November 2019) "It’s time to consider a wage and hour audit" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/employers-should-consider-a-wage-and-hour-audit
Working on Wellness: 5 Tips to Help You Prioritize Your Health
When it comes to personal wellness, it doesn't have to be one or the other when choosing health versus work. Read this blog post for five tips on prioritizing personal health and wellness.
Wellness is such a buzzword these days. It seems like everyone is talking about it, and with good reason. Taking care of yourself needs to be a top priority in your life, but that doesn’t mean it's easy. I know that you may feel stressed and overwhelmed with work, family, friends, or other commitments, but at the end of the day, your health should be your most prized commodity. Most people understand the importance of caring for their health, but cite numerous reasons why they just don’t have the time – namely, work. However, it doesn’t have to be one or the other. You can prioritize your well-being and succeed in the office. In fact, my theory is that an individual's personal wellness must be a top priority in order to achieve one's major corporate goals. Not only do I teach this method, but I live it too. Every. Single. Day.
Here are my 5 tips that will help you prioritize your health while thriving in the corporate world.
Find Your Passion
Deciding that you are going to start focusing on wellness is usually not difficult. However, when you are dreading the time you have set aside to go to the gym, that’s when it gets hard. It’s challenging to motivate yourself to do an activity that you despise doing, and it's even harder to keep it up. This is why it is important to find a task that you enjoy doing within the realm of wellness possibilities. Do you like lifting weights or doing aerobic exercises? Maybe swimming, yoga, or hiking is a better fit for you. There are a multitude of possibilities and something for everyone.
Personally, I’m a runner. I participate in ongoing marathons and IRONMAN 70.3 competitions across the globe. Over the next few months, I will embark on several major races. In September, I will be running a Marathon in Capetown, South Africa. The following month, I am going back for my second year of running 55 Miles through the Serengeti in Africa. To keep the momentum going, in November, I will be running in the TCS New York City Marathon. And then in December, I will be completing an IRONMAN 70.3 Cartagena in Colombia. I did not always compete in these types of races, but I worked up to it through rigorous training sessions. Embracing the open terrain while enjoying some time alone with my thoughts as I run is incredible.
Be Mindful of Your Time
The best advice I can give to those who worry that they don’t have enough time to exercise is to be aware of how you are using your time. Are you using your time efficiently to the fullest potential? Is there anything you can cut or shorten the time you devote to? Get creative. For example, I actually develop many of my business strategies while working out. I am able to let my mind ruminate about work while my body focuses on my wellness. Make time to move. Even if it’s just a little bit every day. Try taking a ten-minute break and going on a walk. Afterward, you’ll feel great and will probably be more productive too. The email can wait; your health cannot.
Follow a Routine
Consciously making the effort to prioritize your wellness isn’t always easy. This is why it is important to follow your routine. Stopping for even a few days makes it hard to get back into it again, and restarting again after a break is always the hardest part. On the other hand, sticking to a routine helps working out feel natural. It becomes a part of your day, an activity that happens somewhere in between waking up in the morning and falling asleep at night. Schedule your fitness into your calendar. If it’s on the calendar, it is real – just like that phone call or meeting you have scheduled after your workout. Setting aside time for your health is like making a promise to yourself to care about your well-being. Honor that promise.
Transfer Your Skills
It’s important to remember that working out is not just good for your body. Exercise also helps develop valuable skills that you can transfer to the workplace. I have completed many races this year, all of which help me to stay focused in my personal life and in the office. Following a schedule and setting goals when training and competing fosters an organized and centered mind when I am at work. I can focus on what I want to execute and achieve. The cadence of training is very similar to the way that I operate in the corporate landscape. Similarly, I attribute many of my most prized leadership qualities – including motivation, perseverance, and a stellar ability to navigate the daily struggle of balance – to an active and healthy lifestyle that is the impetus for day-to-day accomplishment. I first learned how to motivate myself to prioritize my well-being and how to persevere when training becomes a challenge. I worked to find a balance that fits my lifestyle. Then I was able to transfer those skills that I learned to helping others. After all, if you cannot take care of yourself, you cannot take care of your team.
Reward Yourself
Choose a fitness goal and obtain it, whether it's running a 5K or something completely different. Every time you train, you'll become stronger. Then, reward yourself when you make progress, whether it’s with a new outfit, new running shoes, or a pedicure that you have been dying to have. You worked hard for a goal and accomplished it, so treat yourself! Likewise, don’t forget the little victories. Be proud of yourself for training each day and be content with what you achieved. You are setting yourself up to be a happier and healthier you—and that is no small thing. This translates to the business side of things as well, the sense of completion.
Prioritizing your health may seem like something that is out of reach for you, simply because it just doesn’t fit into your schedule. But that’s not necessarily the case. If you have the right mindset going in and make a conscious effort, you can focus on both your wellness and corporate life. And you'll be thankful you did!
SOURCE: Vetere, R. (Accessed 1 November 2019) "Working on Wellness: 5 Tips to Help You Prioritize Your Health" (Web Blog Post). Retrieved from https://www.corporatewellnessmagazine.com/article/five-tips-to-prioritize-health