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
When Should Managers Call HR?
When one thinks of contacting the HR department, it's often associated with filing a complaint or discussing a workplace issue that is in need of a resolution. There are often more reasons as to why the HR department needs to be contacted. Read this blog post to learn more.
Employers expect supervisors to resolve some issues on their own and to report other things to human resources—or possibly to in-house counsel—rather than to resolve them independently.
But do you know which is which? For example, you probably know that you should report to HR all complaints of unlawful discrimination, harassment or retaliation, even if:
- The employee requests that the complaint be kept confidential.
- The employee implores the supervisor not to consult with HR.
- The complaint appears to lack merit.
But in other instances, the line is less clear. For example, if an employee is frequently late, it's your job to resolve the issue by confronting the employee about his lateness and handling it according to established company policies. But what happens if the chronically tardy employee responds by saying that he has been late because of chemotherapy appointments? That's the kind of information you need to report to HR so a determination can be made about whether a work accommodation is appropriate.
Here are some other clarifications of when to report in suspect categories:
WAGE COMPLAINTS
An employee complaint about not being paid as much as he deserves usually is an employee relations issue, not a legal issue. But when an employee complains that the employer has failed to pay him for time worked or has made improper deductions from his pay, savvy supervisors will see legal red flags. For nonexempt employees, improper deductions may include things like not paying for short breaks. For exempt employees, improper deductions may include deductions inconsistent with the salary basis requirement of the overtime regulations of the Fair Labor Standards Act (FLSA), such as not paying an exempt employee for a holiday when the employer is closed.
By immediately reporting a wage complaint to HR, you let the organization determine whether the complaint has merit. If no money is owed or no improper deductions made, HR can correct—or at least try to correct—the employee's misunderstanding. On the other hand, if there was a mistake, HR can correct it before the employee files a complaint with an administrative agency or court. This should go a long way toward minimizing the employer's exposure to liquidated damages for willful violations of the FLSA, and it also may mitigate an employer's liability under state wage and hour laws, whose requirements and penalties are often more stringent than federal law.
Remember, you must report even minor wage claims. A single employee's small wage loss may signal a systemic problem affecting other employees—in other words, a class action waiting to be born.
ALLEGATIONS OF WRONGDOING BY OTHERS
More and more employees are "blowing the whistle" on alleged wrongs that may not directly affect their terms and conditions of employment—alleged corporate fraud, for example. Managers should report immediately complaints of criminal or fraudulent activity, or violations of statutes such as the Sarbanes-Oxley Act. You also should report alleged violations of core employer policies that may have material legal and business consequences, such as conflict of interest policies, business ethics standards or codes of conduct.
DISCLOSURE OF MEDICAL INFORMATION
Any disclosure of a serious health condition or a physical or mental impairment by a job applicant or employee should be reported to HR—even if the applicant or employee doesn't specifically seek an accommodation. During interviews, you may ask applicants whether they can perform the essential functions of the job for which they have applied—but you may not pursue any medical inquires before making a conditional offer of employment. Likewise, where a current employee's performance or behavior is below standard, managers need to focus on the deficiencies—and not inquire or speculate as to any suspected medical reason that may underlie them.
But what if an applicant says that he cannot perform a particular function because of clinical depression, or an employee acknowledges her performance deficiencies but says that lethargy resulting from her heart condition has caused them? In these cases, even though there was no direct request, the disclosure puts the employer on notice that the applicant or employee may need an accommodation. Accordingly, the employer—that is, HR and not you—may need to begin the interactive process to determine whether a reasonable accommodation is needed.
ACCOMMODATION OR LEAVE REQUESTS
An applicant or employee need not use the legal words "Americans with Disabilities Act (ADA) accommodation" or "Family and Medical Leave Act (FMLA)" to trigger statutory rights. The key is whether a reasonable supervisor would recognize the individual's communication as a request for an accommodation or a leave of absence. With regard to accommodations, for example, you should report requests for help, support, job changes, etc. if the employee—contemporaneously or previously—has disclosed the existence of a serious health condition or impairment.
As for leave, report requests for "time off" for medical or other potential FMLA situations, even if the employee does not utter "FMLA." Even if the employee clearly is not eligible for FMLA leave, you need to report a request for time off because a leave could be a reasonable accommodation under the ADA regardless of FMLA eligibility.
EVIDENCE OF UNION ACTIVITY
If 30 percent of eligible employees in an appropriate bargaining unit sign union authorization cards, the union can petition the National Labor Relations Board for an election. Even if an employer wins the election, the victory can be very costly. The key to avoiding elections is early detection of and rapid response to union activity. But employers often begin their counteroffensive only after the union has obtained the 30 percent showing of interest. Sometimes, this is because supervisors fail to report to HR what they may see as "isolated" signs of union support. A bundle of isolated, minor occurrences may amount to evidence of a serious union campaign.
Direct signs of union activity would include an employee handing out a union flier in the parking lot or wearing a pro-union T-shirt. Indirect warning signs would include unusual off-site gatherings of employees—at barbecues, bowling alleys and bars. You also need to be aware of the restrictions on your behavior under the National Labor Relations Act. Supervisors cannot:
- Spy on employees to see who may be engaging in union activity.
- Promise employees benefits for refraining from union activity.
- Interrogate employees as to whether they or others are engaging in union activity.
- Threaten or take adverse action against employees for engaging in union activity.
While you cannot spy, you can report what you see in plain view. And while you cannot interrogate employees about their union sympathies, you can report what is volunteered or what you inadvertently overhear.
GOVERNMENT COMMUNICATIONS
Inform HR immediately if you receive any communication from a government agency, official or entity, including everything ranging from a charge of discrimination filed with the EEOC or other agency to an on-site visit from a U.S. Department of Labor investigator asking to review certain files in connection with alleged overtime pay violations of the FLSA. It's not your duty to decide whether and to what degree to cooperate. Sometimes, government officials ask for more than they are entitled to have. And even where they have a legal right to the requested information, the manner in which the employer communicates can determine the legal outcome and damages that may flow from it. If an official contacts you by phone, be polite and say, "Our organization/company will cooperate with your request; however, I do not have the authority to respond. Let me give you the name and telephone number of the HR professional with whom you should speak. I also am going to contact HR right now."
LAWYER COMMUNICATIONS
Report immediately—and don't respond—to any subpoenas or letters from lawyers who do not represent the employer. In case of "friendly calls" from lawyers who are "just curious" about a few things, don't provide any information. There is no duty to cooperate with an attorney on a fishing expedition. Instead, say something like this: "I do not have authority to talk with you. Please give me your name and number and I will forward them to HR."
SIGNS OF WORKPLACE VIOLENCE.
Not all workplace violence is preventable. But sometimes there are warning signs that supervisors need to report to HR and/or security immediately, including:
- Discussions of or particular fascination with perpetrators or victims of violence.
- Talk of weapons that seems abnormal in frequency or content.
- Statements about hearing voices or receiving signals.
- Threats of suicide.
SOURCE: Segal, J. (21 July 2020) "When Should Managers Call HR?" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/people-managers/pages/when-should-managers-call-hr.aspx
Employees Look to HR to Evaluate COVID-19 Data Before Reopening
Many employers are looking at the opportunity to allow employees to return to their workplace, but before returning many are asking and reaching out to their HR departments to look and rely on local, state, and federal data in order to make a safe transition back into office. Read this blog post to learn more.
When national staffing and recruitment firm Addison Group began putting in place the necessary measures to reopen the company's offices in Texas, Peg Buchenroth, senior vice president of human resources, relied on local, state and federal data to make the transition.
The company's employees switched to remote work during the week of March 16. Since then, Buchenroth and her colleagues have been monitoring coronavirus cases in Texas, where the numbers are changing fast.
Recent data from Texas health authorities demonstrates why it's important for human resource managers to follow infection and hospitalization rates in different geographies.
According to Texas Department of State Health Services data, nearly 75,000 people tested positive for the coronavirus in the first week of June and more than 1,800 people died of COVID-19. As of July 19, nearly 4,000 people had died from COVID-19 in the state, and the death toll is expected to rise further as reported cases have climbed to over 330,000.
Texas Health and Human Services has posted a warning on its website: "Please note that all data are provisional and subject to change. Probable cases are not included in the total case numbers."
Texas Gov. Greg Abbott began clearing the way for businesses to reopen in May to restart the state's economy but had to roll back those plans after COVID-19 deaths began to rise. In the midst of this, the Addison Group reopened its San Antonio/Houston offices on May 4, its Dallas location on May 18 and its Austin facility on May 20. The company closed its Texas offices for the July 4 holiday and has kept them closed as it considers what to do next.
"While we successfully opened our Texas offices in May for employees who wanted to return to in-person work, we've decided to close these locations and will monitor the situation in case we need to reassess," Buchenroth said. "The safety of our employees remains Addison Group's top priority, and we will continue to leverage federal, state and local data to inform any future decisions."
She said employees who return to the office will need to adhere to Centers for Disease Control and Prevention guidelines, such as wearing a mask and maintaining 6 feet of physical distance from others.
"We want to make sure that employees feel safe when they return to the office," Buchenroth said.
She added that the company takes into consideration the many factors that can influence an employee's decision to return to the office, including child care needs, elder care responsibilities, and serious underlying medical conditions that put individuals at high risk of developing a severe illness from COVID-19.
Coronavirus and COVID-19
Using Data to Inform Reopening
As more businesses reopen, employers will have to decide if going to the office is safe based on the data received from local health authorities. Insight from that data will determine how employers will design their workspaces to allow for adequate social distancing within an office, how many workers will be allowed in the office at a time and whether remote work will continue for the foreseeable future.
John Dooney, an HR Knowledge Advisor at the Society for Human Resource Management, said he has noticed an increase in the number of inquiries from HR professionals about new federal, state and local measures and how to safely reopen businesses. He added that while health officials have gained a better understanding of the coronavirus during the past four months, there is still a lot more to learn.
"The pandemic is evolving, and we haven't had the luxury of time to get the information we need," Dooney said. "I think it's important for HR managers to continually review data from authoritative resources."
HR needs to be aware of the changes states are making as they reverse previous decisions on reopening their economies given increasing coronavirus infections and death rates in states like Arizona, Florida and Texas. The current crisis, Dooney said, should prompt HR professionals to be more involved with their senior leadership teams in the decision-making process.
"HR executives should work with senior managers to come up with the best ideas that protect their employees," Dooney advised. "The leadership team should be looking at not only how to maintain the business, but also how to implement adequate protections."
Employers' responses will also depend on the work environment at each company. Hospitals, supermarkets, pharmacies and delivery services, for example, need employees at their worksites; many knowledge-based businesses, however, are better-suited to rely on remote workers.
Gavin Morton, head of people and financial operations at HR.com, said as discrepancies arise in the actual number of coronavirus infections and deaths caused by COVID-19, employees will want to know that their employers have seen the data, considered it carefully and are concerned about workers' safety.
"We all want to know exactly what's going on, but it is very difficult for medical professionals and coroners to quickly ascribe deaths to COVID-19 or other causes," Morton said. "It is logical that there are both more cases and more infections than are being reported, since the testing numbers are still relatively low, and we may not know for years what the true impact has been."
Morton added that employers are in a powerful position to reduce their employees' anxiety. "Employers need to read carefully to understand what the reliable facts are and use them to inform their employees rather than alarm them. Clarity, calm and honesty go a long way," he said.
Morton said HR professionals should consider and educate the leadership team in two key areas:
- How this information impacts the business and employees. Some data could have little to no impact on a company, depending on such factors as location and type of business, while other information could have a severe impact. An outbreak of cases in a city four hours away may not worry the organization's local employees, but if someone's parents live in that city, he or she may be personally very concerned.
- Employee sentiment. It is critical to understand how employees are feeling and how new data can affect their confidence in their safety.
Contact tracing, new coronavirus cases, new hospitalizations, and increases or drops in the number of people dying from COVID-19 will be critical data that will contribute to HR managers' planning.
Human resource professionals should remember, too, that the data are interrelated.
For example, Morton noted that while an increase in deaths reported is alarming, it doesn't necessarily mean that there are more cases; similarly, falling death rates may not mean that transmission today is low. Information about deaths is only one piece of the puzzle.
Developing measures to secure the safety and encourage the performance of employees during the second half of the year won't be easy, especially if there is suspicion that federal, state and local information on the COVID-19 crisis isn't accurate.
"The numbers are really important, and companies need to pay close attention to information which impacts their employees and their customers," Morton said. "While the data can help guide their decisions, HR leaders and company leaders still need to interpret the data. This is true for any information, and so the uncertainty around death reporting is no different. Company leaders need to use their best judgment based on their knowledge of their business, employees and customers."
SOURCE: Lewis, N. (20 July 2020) "Employees Look to HR to Evaluate COVID-19 Data Before Reopening" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/hr-evaluate-covid19-data-before-reopening.aspx
Health Care Nondiscrimination Notice Requirement Is Going Away
The Department of Health and Human Services' has removed requirements that employers issue non-discrimination statements to employees that will go into effect on August 18, 2020. Read this blog post to learn more.
On Aug. 18, 2020, the Department of Health and Human Services' (HHS's) finalized changes to the Affordable Care Act's Section 1557 nondiscrimination rules will take effect, removing requirements that employers issue health care nondiscrimination statements to employees and add health care nondiscrimination taglines to employee communications.
Prior to the changes under a final rule HHS published on June 19, employers had to ensure that they, along with their insurers (for fully insured plans) or third-party administrators (for self-insured plans), abided by a 2016 HHS rule requiring employer-sponsored plans to:
- Create and maintain a notice of health care nondiscrimination.
- Include it in "significant communications" along with taglines in 15 different languages advising individuals of the availability of language assistance.
- Include similar taglines for other communications but only in three different languages.
These notices are still required until Aug. 18.
"Now more than ever, Americans do not want billions of dollars in ineffective regulatory burdens raising the costs of their health care," said Roger Severino, director of the Office for Civil Rights at HHS.
Less Paperwork and Lower Costs
"The final rule eliminated the requirement to post the discrimination notice and add taglines," said John Kirk, an attorney at law firm Graydon in Cincinnati. "The final rule also eliminated the requirement that the discrimination notice and taglines be included with all significant publications sent by the organization. This change will be a significant cost and administrative timesaver for most entities."
Employers offering employee benefit plans that were subject to the prior 2016 rule "should review any notice and disclosure obligations and may begin revising their disclosures to remove the nondiscrimination statement and required taglines," Kirk advised.
"This is welcome news for employers that were required to create and maintain these complicated notices," according to compliance firm HUB International. "In the preamble to the new final rules, HHS stated that the notices were costing employers and other entities hundreds of millions to billions of dollars, but were not, in HHS's view, providing meaningful additional help to individuals."
HUB noted that "the onerous notice requirement is gone, but nondiscrimination rules still generally apply," prohibiting discrimination in health care on the basis of race, color, national origin, sex, age or disability.
Overshadowed by Transgender Controversy
Most coverage of the HHS final rule focused on its controversial rollback of anti-discrimination protections based on gender identity, which overshadowed the rule's repeal of the notice and tagline provisions under the 2016 regulation.
A coalition of LGBTQ groups and health care providers are suing the Trump administration, alleging the new HHS rule conflicts with the Supreme Court's June 15 decision in Bostock v. Clayton County, Ga., which found that the prohibition against sex discrimination in the workplace under Title VII of the Civil Rights Act covers sexual orientation and gender identity.
SOURCE: Miller, S. (16 July 2020) "Health Care Nondiscrimination Notice Requirement Is Going Away" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/health-care-nondiscrimination-notice-requirement-is-going-away.aspx
How to Prosper When HR Is Understaffed
The HR department often has many things on its plate when the company as a whole has a lack of staff, but what happens when the HR department has a lack of staff that may be caused due to many situations? Read this blog post to learn more.
One of the hardest parts about working in HR is helping a company's managers succeed when the company is understaffed. But what about when the HR department is understaffed, perhaps due to summer vacations, unfilled positions, or team members working fewer hours as they wrestle with child care or illness during the COVID‑19 pandemic?
HR leaders, whether managing a small or large team, can find the weight of a company's needs overwhelming when their department is short-staffed. But HR experts say there are a range of strategies to help address this situation.
"When an HR team is short-staffed, one of the best things to do is try to understand the goals of the company during this time," said Melodie Bond-Hillman, senior manager of HR and administration at XYPRO Technology Corp. in Simi Valley, Calif. She has had many cohorts reach out and express concern that their jobs have expanded out of scope during the coronavirus outbreak as they attempt to handle a range of new duties amid staff shortages. "They need to try and figure out how long term the staffing issue might be to know how to strategically plan," Bond-Hillman said.
Conversely, it's important not to over-promise when seeking staffing solutions for the department in such an unpredictable environment, said Buck Rogers, a vice president at Keystone Partners, a Raleigh, N.C., executive coaching and outplacement firm. "Don't set your team up for a fall," he said. "You need to keep their spirits up as much as possible, but giving them false hope can make them less likely to trust you in the future."
Rogers recommended against giving the HR team exact dates on when operations will return to normal, because no one can say for sure. Instead, he suggested being supportive—but not unrealistic.
Consider Investing in Automation
One positive step an HR leader can take during a period of uncertainty is to look for opportunities to automate required processes to save time, Bond-Hillman said.
"An important question to research is, how well is your HR system set up? Is it driving a lot of your process so you can automate when possible and give employees a strong range of self-service access?" she asked. "Do you have apps so workers can get their benefit cards and policy questions easily answered without your team being called on to step in too often? From getting their pay stubs to making 401(k) changes, the process needs to give employees a chance to help themselves. These are areas HR may get lazy at when times are easier, but it makes a difference" when times are tougher, as they are today, she said.
Even with shortcuts in place, there are other steps that will help the team operate more effectively. One is to provide new opportunities for team members to broaden their contributions, perhaps by giving responsibilities to HR professionals who are ready for a new challenge.
"This is a chance for them to help you out," Bond-Hillman said. But you can also help HR team members advance their careers or become specialists. "Give them the opportunity to come through for the team and further their career."
And despite potential revenue shortfalls due to the faltering economy, now isn't the time to reduce training. After all, if team members are going to be able to assist you more, they'll need the training to succeed, Bond-Hillman said.
"Yes, there's a feeling you don't have time, but if you don't make the time, it will potentially be a disaster in executing the work," she said. "Many HR people struggle because not everyone is cross-trained."
Seek Inexpensive Support
Seeking part-time help from a temp or college intern is another popular option this summer, said Heather Deyrieux, SHRM-SCP, HR manager for Sarasota County, Fla., and president of the HR Florida State Council, a Society for Human Resource Management affiliate. "We've had an intern just for the first couple of weeks of the summer, and she has been very helpful," Deyrieux said. "You can even look for volunteers—there can be many of those, especially if it's remote work."
Keeping morale up also is important and may be achieved by making sure everyone in the HR department sees team leaders rolling up their sleeves and doing tasks that may have been handled by others before the pandemic. It's also wise for those leaders to keep their office doors open and be available early and late to help answer questions and address issues, Bond-Hillman said. "A team has to be just that–a team."
Debora Roland, a Los Angeles-based vice president of HR at CareerArc, said seeking opportunities to allow the team to recharge is critical. "Your team, however big it may be, is working tirelessly during these times, and showing appreciation can go a long way," she said. "One way to do this is to give team members time off when it's needed. We're all in such high-stress times, and providing days off to recuperate and reset can make a world of a difference."
If providing time off isn't possible given the workload, showing appreciation can help. "Give a gift certificate to their favorite restaurant or something else they like," Deyrieux said. "This way you show appreciation, but you also show them that you pay attention to their interests. People need to know they're not just another employee."
6 Ways to Support an Understaffed HR Team
- Identify the company's primary goals during the pandemic and share it with the team.
- Ease the team's hours through automation or help from a temp, an intern or a volunteer.
- Be in the trenches with team members by taking on menial tasks and arriving early and/or staying late.
- Show appreciation, even if just in a small gift.
- Give additional responsibility that could lead to a promotion.
- Provide training so your team members feel they're in a good position to take on new responsibilities.
SOURCE: Butterman, E. (09 July 2020) "How to Prosper When HR Is Understaffed" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/how-to-prosper-when-hr-is-understaffed.aspx
The benefits and pitfalls of remote hiring
Hiring employees remotely can have several benefits, but can also come with several pitfalls. In the midst of the coronavirus pandemic, employers have turned to virtual meetings for several things which also includes virtual interviews. Read this blog post to learn more.
Companies operating remotely over the past few months have found that hiring, onboarding and training can be done virtually, in a way that’s effective and efficient, thanks to today’s technology.
Since stay-at-home orders went into effect, 51% of respondents have interviewed a candidate remotely, and 42% have extended an offer remotely, according to a report from Addison Group, a national staffing and recruiting firm.
And remote hiring could be here to stay, as 21% of hiring managers believe virtual interviewing will be a permanent benefit moving forward. This can help expand a company’s candidate pool, as people who can’t get time off from work or have problems with childcare can still interview for the available position, says Peg Buchenroth, SVP of human resources at Addison Group.
“For larger teams with several interview rounds, it’s not uncommon for candidates to have more than three interviews ahead of an offer,” she says. “The widespread use of virtual interviews in initial interviewing rounds accelerates the process, saves the hiring organization excess expense and shows respect toward a candidate’s time.”
But the technology can also be the reason an interview goes wrong.
“A technical error could reduce face-to-face time or reflect poorly on the party responsible for the technical difficulties,” Buchenroth says. “Ensure any tools you need, such as Skype or Zoom, are properly set up and working well before the interview.”
The rapid transition to remote hiring routines isn’t always easy — for 56% of hiring managers, this is the first time they performed hiring activities remotely, the Addison Group report finds. For job candidates and employers who are used to, and more comfortable with, in-person interviews, adapting to the new normal of remote hiring can be both stressful and frustrating.
“I think there are some positions where an in-person interview can be hard to replicate, especially if that position is going to require a lot of in-person interaction at some point,” says Candace Nicolls, SVP of people and workplace at Snagajob, a staffing firm for hourly and essential workers. “Sometimes that can be hard to assess remotely unless you have a clearly thought out process.”
With many candidates having kids at home, or not having reliable internet access, it’s also important that employers are compassionate and understanding of potential issues that the work-from-home environment can impose, Nicolls says. Managers should take time to explain the process, and leave room for technical difficulties.
“I think the advantages [of remote hiring] far outweigh the disadvantages,” she says. “But when there are circumstances that people just aren’t able to control, that's actually a real opportunity for hiring managers to show empathy, and it can be a really powerful way to show your brand through all of this.”
Having a standardized remote interviewing process, where all candidates are given the same set of questions, can also help improve diversity and decrease adverse impact and bias, Nicolls says.
“Asking objective questions will help you assess candidates based on a criteria that everybody’s already decided on,” she says. “When people are interviewing face-to-face, those initial first impressions can override some of the candidate answers. We know that relying on that gut instinct when someone walks through the door isn't the best way to make hiring decisions.”
Additionally, remote hiring can be a solution to the safety concerns brought on by COVID-19. Candidates do not have to worry about taking physical safety precautions while entering an office, and employers can keep themselves and their employees safe too, says Kevin Parker, CEO of HireVue, a software company that provides pre-employment assessment and video interview tools.
“As you think about all the challenges that we face, whether in the office or not, having long lines of people coming to the office for interviews — with all those risks associated to both the candidate and the hiring company — has jumped up pretty high on the list of concerns,” Parker says. “Companies are having to re-imagine that in a more virtual way.“
With all the benefits of remote hiring, there’s reason to believe it will be the new normal after the pandemic settles, Parker says.
“We almost made a 10-year leap in 90 days in terms of the way we think about work, remote work and hiring and access to talent,” he says. “The employers are looking more broadly than they ever had before, and recognize that they can find good people almost anywhere. And candidates are recognizing that if they can work from home 20 miles from the office, they can work from home 200 or 500 miles away from the office.”
SOURCE: Nedlund, E. (24 June 2020) "The benefits and pitfalls of remote hiring" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/the-benefits-and-pitfalls-of-remote-hiring
Even HR executives have to reinvent themselves to survive
New trends, technology, and modern changes are creating concerns for the trained level of HR professionals. With different changes continuously entering companies, HR professionals are having to go through different pieces of training. Read this blog post to learn about HR professionals having to learn about new and modernized paces.
HR chief executives by and large are ill-equipped to meet the needs of the modern workplace, according to a new report of 500 top executives.
The irony is the HR profession is perhaps entering a golden age for HR leaders, as the role shifts beyond administrative and process-related functions to work that is at the very core of a company’s business strategy to keep top talent.
And yet because the workplace is changing so fast to adapt to technological and demographic shifts, the study by SHRM and another insurance company found that the role of HR hasn’t been able to keep pace to train the latest generation of HR leaders.
Because work functions are constantly in flux, training and development can no longer be considered episodic events but instead will require perpetual reskilling to stay relevant. The study noted that between 2003 and 2013, more than 70% of the Fortune 1000 companies changed and were replaced by nimbler firms.
Most HR executives or chief people officers, or CPOs, will need to reskill to stay relevant — and do so quickly, according to HR People + Strategy, the group’s network of business and thought leaders in human resources.
“As the pace of innovation and technology in the workplace accelerates, CPOs will need to reinvent themselves,” says the study’s co-author Suzanne McAndrew, the global head of talent of another insurance company. “With disruption on the horizon, organizations will require strong, visionary people leaders who can think through the people and talent strategy, and work with management on the business strategy.”
Most executives “are not prepared,” McAndrew says.
“We’re only going to get things done if we have the right people, the right talent in the right functions with the right goals,” Upwork CEO Stephanie Kasriel says in the study. “That to me is the role of HR, to ensure that we have the right people strategy in order to inform the business strategy.”
The study reviewed key changes shaping HR functions for human resources leaders and also found:
•Virtually all respondents (99%) believe HR executives must have the agility and courage to change, yet only 35% said today’s leaders are prepared to respond.
•More than nine in 10 respondents (94%) say it’s important to explore the development of future HR leaders, but only about a third (35%) agree that future staff are receiving the training they’ll need to succeed.
•Only one-third of respondents (36%) are prepared to think about how technology can be used to execute work in the future; only a quarter (26%) say they have the technical acumen to evaluate new technologies.
HR leaders can do five things to help drive change, including acting as an advocate for change and agility, developing digital technology to improve HR functions, using automation to foster new skills and reinvention for staff, focusing on workplace culture and leadership and elevating HR decision-making to include more analytics, the study found.
Alexander Alonso, chief knowledge officer at SHRM, noted that HR executives have the greatest potential to foster the evolution of enterprises by building up their own expertise to meet future workforce demands.
Respondents also recognize much progress is still needed with digital enablement and understanding how to apply digital technology and automation in the workplace. Only 42% had a favorable opinion of their organization’s progress when it comes to embracing technology that builds a consumer experience for employees.
“While CPOs don’t need to be technology experts, they must understand how changing technology can impact work and the workforce,” says Ravin Jesuthasan, a managing director at another insurance company and co-author of the study.
SOURCE: Siew, W. (08 January 2020) "Even HR executives have to reinvent themselves to survive" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/even-hr-executives-have-to-reinvent-themselves-to-survive
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
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