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
Strategies for communicating with all five generations in the workforce
Did you know: Thirty-eight percent of Americans work for a boss who is younger than they are. According to the Labor Department and U.S. Census Bureau data, there are more employees over the age of 85 working than ever before. Read this article for strategies for communicating with all five generations in today's workforce.
The age gap in today’s workforce is getting increasingly wide. Just look at the Democratic primary for the nation’s highest office.
With Pete Buttigieg, 37, and Sen. Bernie Sanders, 78, running for president, the age range of the job applicants for the biggest job in the U.S. now spans four decades. There are also more workers over 85 working than ever before, according to Labor Department and U.S. Census Bureau data.
Here’s another fact: Today 38% of Americans work for a boss who is younger than they are, said Lindsey Pollak, author of “Remix: How to Lead and Succeed in the Multigenerational Workplace,” at the Atlantic’s Aging Up conference on Wednesday.
“This is the first time in our country's history that we have five distinct generations in the workplace,” said Pollak, who has spent more than 10 years researching and studying millennials. “They are the largest generation in the workplace. You've heard a lot from millennials today, but all of the rest of us are here too.”
“To succeed in this environment, however you approach it, you have to think about all of those generations,” she said.
How can employers win the war on talent with such a diverse age range in the modern workforce? Pollak uses the example of a music remix to frame various engagement strategies — an idea she got based on her interview of a DJ. For example, playing a remix of a classic song at a party could entice both the younger and older generations to get on the dance floor, she said.
“[The DJ] said the trick is to play a remix because the older people at the party recognize the classic and say I know that song. And they come and dance,” Pollak said. “The younger people recognize the remix… and they come and dance. So the solution to a five-generation workplace is not either-or. We did it the millennial way or we do it the boomer way. It's always about, how can we bring everybody together?“
Pollak offered three examples of how employers can appeal to multiple generations. The first centers on recruitment. Employers should recruit from across generations. One example was a solution by a pool and beach club in Galveston, Texas, which began recruiting older workers after they experienced a downturn in teenage applicants, she said.
“[The beach club] looked around and said, who really comes and swims here every day? It's the people over 50 who want a low-impact exercise,” she said. “And so they started putting up posters saying, do you want to turn your passion into a career?”
The idea worked. Lifeguard staff became people over 55 including one 83-year-old lifeguard, Pollak said.
A second strategy involves communication, she said. Asking employees about their preferred communication style is one key way to ease multigenerational differences.
“The simple [strategy] here is to not look for the one way that everybody wants to communicate. There isn't one. It depends on your personality. It depends on the work that you do. It depends on your personal preferences,” she said.
The solution is to simply get in the habit of asking everyone at work how they prefer to communicate. Asking employees their communication style of preference — whether that be over text, a phone call or social media — can help improve communication.
Employers should look for mentoring opportunities, along with reverse mentoring experiences, where younger workers can help guide older workers on new skills, she said.
“Mentoring is an example of a classic practice that should never go out of style. There is nothing old fashioned or outdated about mentoring,” she said.
Mentoring also goes in both directions. Junior staff may be more proficient using various apps, for instance, and be good candidates to train other colleagues. To have a successful multi-generational workforce, employers should consider input from employees in a variety of age groups.
“Think of yourself as having a multigenerational board of advisers,” Pollak said. “What if you had a person from each generation who was advising you on how to look at the world and how to think about your job and your career?”
SOURCE: Siew, W. (31 October 2019) "Strategies for communicating with all five generations in the workforce" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/strategies-for-communicating-with-all-five-generations-in-the-workforce
Putting Humanity into HR Compliance: 3 Steps to Active Listening
How is your HR department communicating with your employees? One of the most common complaints people hear about HR professionals is that they don't listen. Read this blog post from SHRM for three practices of active listening.
When I work with executives and managers, a common complaint I hear about HR professionals is "They don't listen. They just tell."
So when I work with HR professionals, I encourage them to adopt three practices of active listening:
- The period-to-question-mark ratio.
- The EAAR listening method.
- Confront, then question.
The Period-to-Question-Mark Ratio
When you're engaged in a conversation, what's the ratio of your sentences that end with periods to those that end with question marks? If you're like most people, the ratio is overwhelmingly tilted toward sentences that end with periods. This could show that you are telling people what to do more often than you are looking for consensus on how to solve a problem. When you engage in a discussion with an executive, manager or employee, keep the ratio in mind. Strive to correct the imbalance by making yourself ask questions. The fact that you ask matters more than what the question is.
People I've coached have found that keeping the ratio in mind acts as a self-regulating device to ask more questions.
The EAAR Listening Method
E: Explore
A: Acknowledge
A: Apply
R: Response
It's a sequence. Begin the discussion with an exploratory, open-ended question: "Ms. Manager, what are the reasons that led you to conclude Mr. Employee should be fired?" "Tell me more." "Please share some examples." "Help me understand."
Once you've explored the other person's position and reasons for it, move to acknowledgment. Get the person to acknowledge that you understand his or her point. "So, Ms. Manager, if I understand you correctly, you believe Mr. Employee should be terminated because of the following reasons… Is that correct?
Although critical, the acknowledge step is often overlooked. Instead of confirming the understanding, the listener makes an assumption, which often proves erroneous and leads to unnecessary conflict. The EAAR method eliminates this possibility. If the person says, "No, that's not my position," simply go back to the exploration step: "I'm sorry. Please explain what I missed."
In your response, apply portions of what the person said, even actual words the person used. Even if your response isn't substantively what the person originally sought, this approach creates optimal conditions for acceptance.
"Ms. Manager, I agree with you that Mr. Employee's behavior is unacceptable. What you described [list the employee's actions] makes a compelling case. However, because of the following reasons, I think termination now would be premature and present undue legal risk.
"Nevertheless, I'm happy to work with you on an intervention strategy. If Mr. Employee is willing and able to close the gap in your legitimate management expectations, he will do so. If not, we will be in a much stronger position to terminate his employment, and I will support you."
Many HR professionals have told me that when they've used the EAAR method, conversations they feared would turn ugly became positive. Instead of a clash of wills and arguments, the discussion became collaborative and solution-oriented.
Confront, Then Question
What if you are the bearer of bad news? You must deliver a message you know won't make the recipient happy.
The approach here is to confront, then question. Make a short opening statement. State your position succinctly and without elaboration. Next, switch to question mode.
You can think of this approach as beginning the EAAR method with a short opening response to frame the conversation.
"Mr. Executive, based on our investigation, we found that Mr. Employee in your department engaged in actions that violate our anti-harassment policy. Although we understand he has been with the company for a long time and is one of your best performers, given the seriousness of the misconduct, we believe the appropriate action is termination of his employment."
Next, go to question mode: "What do you think?" "What questions do you have?" "How do you see things at this point?"
Assuming the executive doesn't respond by saying "Great idea! Go for it!" and wants to argue his or her point, pivot to exploration and start the EAAR process at that point. "I want to make sure I understand you, so please tell me what you agree with, what you disagree with and your reasons."
After that comes your acknowledgment: "Let me make sure I understand you. You agree that Mr. Employee's behavior was unacceptable and violated policy. However, you disagree that the proper remedy is termination. Instead, you recommend a suspension and written warning for these reasons. [List the reasons.] Is that accurate?"
Now you're ready to apply. From what the executive said, extract what you can use in your response.
"I appreciate the fact that you support our investigation and finding of misconduct. Our only disagreement is the appropriate remedy. Your points about Mr. Employee's long service and stellar performance are valid. Yet for these reasons [list them], I still believe termination is called for. How do you suggest we resolve our differing views? For example, should we present them to the CEO and let her decide?"
These types of conversations can go in all sorts of directions, including ones you don't anticipate. That's OK, so long as you don't lose sight of the value of questions during a dispute.
Avoid cross-examination questions, such as "Isn't it true that … ?" Your questions should not state or imply your view. They should be curiosity-based, as you're genuinely trying to find out what the other person thinks.
The confront-then-question approach allows you to go directly to the heart of the matter. Even if you sense rising tension and hostility, the negative emotions will soon be arrested by your open-ended, exploratory questions.
When HR professionals make a commitment to active listening, executives, managers and employees become their biggest fans instead of being their biggest critics.
SOURCE: Janove, J. (9 October 2019) "Putting Humanity into HR Compliance: 3 Steps to Active Listening" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/putting-humanity-into-hr-compliance-active-listening-.aspx
U.S. Jobs Increase by 130,000 in August
According to a recent report from the Bureau of Labor Statistics (BLS), U.S. employers added 130,000 jobs this past August and the unemployment rate stayed unchanged at 3.7 percent for the third month in a row. Read this article from SHRM to learn more.
U.S. employers added 130,000 jobs in August, coming in below economists' expectations, and the unemployment rate held at 3.7 percent for the third straight month, according to the latest Bureau of Labor Statistics (BLS) report.
July's employment total was revised down from 164,000 new jobs to 159,000. In the past three months, job gains averaged 156,000 a month after revisions.
"Today's jobs report shows slowing private-sector job growth and slowing wage growth, which—while expected this late in the recovery—is somewhat disappointing after the rapid gains of the past two years," said Julia Pollak, a labor economist at employment marketplace ZipRecruiter.
On Sept. 5, the ADP Research Institute and Moody's Analytics reported private-sector growth of 195,000 new jobs, better than economists' expectations of about 160,000 jobs.
"Despite the slower growth in jobs added, labor force participation did perk up, a sign that the healthy labor market is still drawing in workers from the sidelines," said Glassdoor senior economist Daniel Zhao.
The labor force participation rate—which includes people who are working and those looking for work—ticked up to 63.2 percent, one of its highest readings in years. The proportion of the population currently employed is at 60.9 percent, its highest point since December 2008. And the employment-to-population ratio for workers aged 25-54 reached 80 percent for the first time since January 2008.
Zhao said that the increases signal that the tightness of the labor market is putting upward pressure on labor force participation despite an aging population pulling it down.
Michael Stull, senior vice president at the staffing and recruiting firm Manpower North America, said other positive takeaways from the report are better than expected wage growth and strong hiring in the professional and business, financial and health care sectors.
Job gains in August were led by professional and business services (37,000 new jobs), which includes many technology jobs and the nation's booming health care industry (23,900). Other industries showing gains include finance (15,000) and construction (14,000).
"Health care and professional services have both grown strongly across 2019, carrying the labor market despite weakness in the goods-producing sectors," Zhao said. "Additionally, the increase in temporary help services [15,400 jobs] is a good sign that employers are not cutting back on the most flexible parts of their workforces in the face of recession chatter."
However, Pollak noted that the BLS reported that the private sector only added 96,000 jobs, marking a slowdown from the pace of job growth over the last two years.
Industries like mining and manufacturing are struggling. Mining employment fell by 5,600 jobs and manufacturers have seen a marked slowdown in job creation, with only 3,000 jobs added in August. "In 2018, manufacturing job growth exceeded 10,000 jobs in 11 of 12 months, but this year job growth has been below 10,000 or even negative in six of eight months," Pollak said. "Trade policy uncertainty and a global manufacturing slowdown seem to have brought the 2017-2018 manufacturing boom to a halt."
The retail sector lost 11,000 jobs in August, continuing a trend of month-over-month declines for the seventh consecutive month. "Despite strong consumer spending, increasing labor costs and the rise of e-commerce are keeping retail hiring down even as we begin to enter the holiday hiring season," Zhao said. "We'll be watching the next few reports for signs that the holiday retail hiring season has slowed or that the latest round of tariffs are having a larger effect on the retail industry."
Juiced by Census Hires
U.S. jobs data is now—and will for some time be—inflated by a temporary spike in government hiring for 2020 Census workers. The federal government added 28,000 workers (excluding U.S. Post Office hires) to its payrolls in August. The majority of those—25,000 temporary workers—will go door-to-door over the next several weeks to verify addresses ahead of the 2020 count.
The Census Bureau expects to hire about 40,000 people for this preliminary duty and about 500,000 workers next year for the actual canvassing.
Unemployment Stays Low
The BLS data showed that the national unemployment rate remained below 4 percent for the 18th consecutive month. The number of unemployed people held at 6 million.
"The unemployment rate remains near its lowest level in 50 years, again signaling the strength of the labor market for workers as the number of job openings continues to exceed the number of unemployed workers," Zhao said.
The number of long-term unemployed (those jobless for 27 weeks or more) rose from 1.1 million to 1.2 million in August and accounted for 20.6 percent of the unemployed.
The U-6 unemployment rate—a broader measure capturing both the unemployed, underemployed and those too discouraged to seek work—continued its long decline and held at 7.3 percent for the second month in a row. There were 467,000 discouraged workers in August, about the same as a year ago.
"There are still more discouraged workers than we would expect, given the low unemployment rate," Pollak said. "Discouraged workers are those who are out of work but have not applied for a job in the past four weeks because they think there are none available or none for which they qualify," she explained. "If there were fewer discouraged workers, labor force participation and employment rates would be higher, and more vacancies would be filled."
Wages Inch Up
Average hourly earnings increased 11 cents to $28.11, following 9-cent gains in both June and July. Over the past 12 months, average hourly earnings have increased by 3.2 percent.
"At this point in the expansion, we'd expect wage growth to pick up, but it is continuing to stall," said Nick Bunker, a Washington, D.C.-based economist at the Indeed Hiring Lab. "Wage growth continues to be strongest for workers in lower-wage industries."
SOURCE: Maurer, R. (06 September 2019) "US Jobs increase by 130,000 in August" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/bls-hr-jobs-unemployment-august-2019.aspx
Putting Humanity into HR Compliance: Stop Tolerating Toxicity
HR departments who have a detox mission and address toxic workplace relationships can prove incredibly valuable to their organizations. Not only are employees and their well-being impacted by toxic workplace relationships, but also the organizational success and the well-being of employees' family members. Continue reading this blog post to learn more.
In my prior career as an employment attorney and in my current one as an organizational consultant and coach, I have encountered numerous toxic workplace relationships. The cost of these relationships—to organizational success, employee well-being and the well-being of employees' family members—is astronomical.
And the greatest tragedy is this: Almost all of this loss, pain and suffering is preventable.
Why are toxic workplace relationships so common? And why are they tolerated?
The answer to the first question is that good people make bad decisions. Typically, employee relationships start out fine. Employees cooperate and collaborate in their relationships with their bosses and peers.
But then something goes awry. A trust gap opens. The employee does not address the problem promptly, directly and constructively, but the employees' avoidance instinct kicks in. Nothing constructive is done to close the trust gap. As a result, the problem festers and grows. Eventually, any remaining trust evaporates, and the relationship degenerates into aggression, passive aggression or both.
Note that I'm not talking about the incorrigible "work jerk," whose behavior should never be tolerated. Rather, I'm talking about people stuck in toxic work relationships producing jerkish and other negative behavior.
Managers and HR practitioners succumb to the avoidance instinct, too. Although aware of the toxicity, they don't intervene and are wary of wading into others' dysfunctional relationships.
What are the costs of tolerating toxicity?
- Personal suffering. The immediate parties may think they have nothing in common, but they do: They're equally disengaged and miserable.
- Work loss. Toxic relationships do nothing to improve the quantity or quality of work, customer service or on-the-job innovation. There is increased absenteeism and what Colleen McManus, SHRM-SCP, an HR executive with the state of Arizona, calls "presenteeism," in which people are at work but not focused on work, dwelling on negativity instead of doing their jobs properly.
- Secondhand anxiety. Co-workers who witness the toxic behavior suffer, as does their contribution to the organization. They are the truly innocent victims.
- Collateral damage. Employees affected by workplace toxicity typically bring their stress home. This doesn't reduce their stress; rather, it elevates their loved ones' stress. "So true! In the most serious situations," McManus said, "I have seen greater instances of alcoholism and domestic violence due to problems at work."
How HR Can Help
HR departments with a detox mission can prove incredibly valuable to their organizations and the people in them. It's not hard to identify toxic relationships. The challenge is taking action.
I can say with confidence that intervention is always better than tolerating toxicity. You'd be surprised how easily many toxic relationships can be reset when a skilled third party steps in. HR professionals are ideally positioned to help employees stuck in toxic relationships get back on track. Or, if there's too much baggage, HR professionals can facilitate a respectful relocation of the parties to different positions in the organization. This method is a good way to start.
Many times, a toxic relationship is rooted in an unwitting and unaddressed offense one employee gave the other. As a result, the offended party started behaving differently toward the offender, which produced more offensive behavior, and so on. "I'm always surprised," McManus said, "when I ask the parties to the conflict what a resolution looks like. Often, it's simply an opportunity to be heard."
She adds that a sincere apology goes a long way toward rebuilding trust. "They feel validated, which is important to them."
Sometimes there's a structural misfit in the workers' roles that needs to be clarified, or how the jobs interact needs to be modified. HR can help figure out how the jobs can function without recurrent friction. "This is our profession's bread and butter!" McManus said.
There may be a personality conflict, in which case the parties need better understanding of how to interact with people whose styles differ from theirs. If that can't be achieved, though, there can be an agreement to disagree and respectfully move on—whether to a different position inside or outside the organization.
An HR team that makes a commitment to identify and resolve toxic relationships is empowered by the CEO, and is supported by the leadership team will prove to be incredibly valuable to its organization and the people in it. HR team members can directly coach others to resolve conflicts and show managers how to coach their employees who are stuck in toxic relationships.
There's also a risk management, compliance and claim-prevention component. In my employment lawyer days, most of my billable hours arose from conflict caused by toxic workplace relationships. An HR profession with a detox mission will become painfully costly to my former profession.
SOURCE: Janove, J. (Sept 06, 2019) "Putting Humanity into HR Compliance: Stop Tolerating Toxicity" (Web Blog Post) Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/putting-humanity-into-hr-compliance-stop-tolerating-toxicity-.aspx
Illnesses, Deaths Tied to Vaping
New reports are showing that the use of electronic cigarettes (vaping) is believed to be responsible for five deaths and 450 severe lung injuries. Continue reading this article from SHRM to learn more.
The use of electronic cigarettes, also known as vaping, is believed to be responsible for five deaths and 450 severe lung injuries in what appears to be a nationwide epidemic, according to new reports.
E-cigarettes are battery-operated and produce vapor that simulates smoking. They can resemble regular cigarettes, cigars, pipes, pens, USB sticks and other everyday items. They do not burn tobacco, but the device heats a liquid that usually contains nicotine, flavorings and other chemicals.
While most employers ban smoking in the workplace, their policies don't always extend to e-cigarette products. However, a Centers for Disease Control and Prevention (CDC) health alert on Aug. 30 warned that severe pulmonary disease is associated with using e-cigarette products. The agency, which is part of the U.S. Department of Health and Human Services, launched a multistate investigation into the lung illnesses on Aug. 1.
"Although more investigation is needed to determine the vaping agent or agents responsible," wrote Dr. David C. Christiani of the Harvard School of Medicine, "there is clearly an epidemic that begs for an urgent response." He shared his comments in the Sept. 6 issue of the New England Journal of Medicine, along with the preliminary report "Pulmonary Illness Related to E-Cigarette Use in Illinois and Wisconsin."
The CDC is working with the U.S. Food and Drug Administration, states and other public health partners and clinicians to determine what is sickening users, and in some cases resulting in fatalities. On Friday, it suggested that people refrain from using e-cigarette products during its investigation.
SHRM Online has collected the following articles about this topic from its archives and other trusted sources.
5 Deaths Linked to Vaping. Officials Are Urging Consumers to Stop. (Chicago Tribune)
How Are You Handling Vaping at Work? (SHRM Online)
More States Ban Vaping, E-Cigarette Use in Workplaces (Bloomberg)
Florida Adds Vaping to Regulated Indoor Smoking (SHRM Online)
SOURCE: Gurchiek, K. (6 September 2019) "Illnesses, Deaths Tied to Vaping" (Web Blog Post). Retrieved from https://www.shrm.org/hr-today/news/hr-news/Pages/Illnesses-Deaths-Tied-to-Vaping-.aspx
10 trends that will shape HR in 2019
HR professionals across many industries have common challenges to face this year. Some of the biggest headlines of 2018 involved HR-related topics such as discrimination, harassment, diversity and workplace culture. Read this blog post from HR Dive to learn more.
As HR executives turn the page on a new year some will pause to reflect on just how much — and how little — has changed in the span of 12 months.
Increased attention on topics traditionally considered the realm of HR — discrimination, harassment, diversity, workplace culture — made workplaces the convergence point for some of the biggest storylines in 2018. Calls for equal pay, worker protections and better solutions for harassment and discrimination swirled through the boardrooms and shop floors of Google, Tesla, Amazon and CBS, among others.
In the U.S., political figures debated the historic number of people finding work and the policies driving that trend. Experts warned about the opportunities and consequences of artificial intelligence, robotics and other technologies. HR wasn't just an observer in all these developments — it had a lead role, both when things went wrong and when experts searched for success stories.
And through all that turbulence, some elements of the industry remain unchanged. "We're still the stewards of information and our people," Jewell Parkinson, senior vice president and head of human resources at SAP, told HR Dive in an interview. "That is going to be our role."
HR executives and teams across many industries have common challenges to face in 2019. Below, we've recapped what real HR practitioners and industry observers seeing on the horizon.
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The talent acquisition panic
For Ceridian's Chief People and Culture Officer Lisa Sterling, this year's challenging recruiting scene will haunt her into the new year. "The thing … that literally keeps me up at night continues to be the focus on attracting world-class talent to our organization," she told HR Dive in an interview. Sterling isn't the only one vexed by the talent acquisition panic.
"I've been in the industry 22 years, and I've had the most interesting year in 2018," said Scott Waletzke, head of enterprise recruitment strategy at Adecco Staffing, USA. "The utilization of technology is going to make it that much better."
Applications and resumes flooded recruiters' inboxes at alarming rates last year and technology has emerged as a much-needed solution to the deluge. "Tech is allowing our recruiters to have more valuable conversations with those candidates," Waletzke said. With these tools, hiring managers can place candidates in the positions where they are the best fit, according to Waletzke.
Of course, with hordes of candidates and low unemployment comes heavy turnover. And, as Sterling said, organizations need to find and lock down not just any workers, but the best talent for their business. This means companies need to provide a top-notch employee experience, starting with the application process.
"People are sharing on social media what those experiences are like, and in a tight labor market, retention is top of mind," said Jodi Chavez, group president, Randstad Professionals, Randstad Life Sciences, Tatum. Organizations can improve retention rates by amping up company cultures, offering training and creating a robust HR department to manage such initiatives, Chavez said.
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AI as a partner, not a threat
As Waletzke monitored conversations about tech throughout the last two years, he observed a radical shift. "The overall temperature of conversations completely changed. 2017 was robots are going to steal our jobs … now there is starting to be this embrace of technology," he said.
For HR, technology has transformed recruitment, in particular. "We're really looking at ways we can use AI or machine learning to automate the talent acquisition experience so we can dive deeply into the one-on-one relationships," Sterling said. Job search platform CareerBuilder has used machine learning to add a touch of personalization, CEO Irina Novoselsky said in an interview. Those searching on CareerBuilder for jobs at Disney might see the word "client" replaced with the term "guest," a standard swap of lingo for the entertainment company.
"It really is early in that curve of HR users having to become technologists," Novoselsky said. "That really shifts the conversation they're having and what they're looking for."
While these developments may speed up what can be slow, painstaking work, Triplebyte Co-founder and CEO Harj Taggar pointed out that the tech may make the process more efficient, but it does not address everything. "It doesn't help with bias — and in fact, it exacerbates [it]," he told HR Dive in an interview.
That's perhaps why some practitioners endorse a more steady, careful approach to new technologies. "It takes time to figure it out, so I think as recruiters and HR professionals we have to really embrace this change, go with it, try things, fail at times, figure it out, but be comfortable with it," Larry Nash, director of recruiting at EY, told HR Dive.
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Data insights continue to evolve
HR is by now familiar with the calls for data-driven insights — but those insights have to keep people at their core and can't just focus on financial or other success measures.
"It's not good enough to just reduce cost anymore," Art Mazor, human capital practice digital leader and the global leader for HR strategy and employee experience at Deloitte, told HR Dive in an interview. "That's old-school thinking."
Employers have learned the hard way that while working toward a metric may feel modern and effective, the results can be anything but if the focus is solely on improving the number and not on making real, substantive improvements or addressing the underlying issues.
More employers have opted to use data in an effort to better track their workforces, Sam Stern, principal at Forrester, told HR Dive in an interview. "But the problem is, usually the shortest path to success on that metric is to game the system. And to me, to be surprised by that is to be delusional. That's human nature."
Data has its limits, too. An employer can only slice and dice the numbers so many ways, and insights alone don't lead to a lot of change, Jim Barnett, CEO at Glint, told HR Dive in an interview. It's about what HR leaders do with those insights; change happens at the manager and individual team levels. For example, employers can monitor the employee lifecycle from onboarding to exit to get a clear view of why people leave — but without a deeper understanding of who is leaving and why, HR could miss key insights.
"Fundamentally, it comes back to understanding how your team is doing," Barnett said. "These fundamental things haven't changed over the decades."
The pendulum will likely swing back toward qualitative analysis partly to avoid the "paralysis by analysis" that some companies are experiencing, Chavez said.
"You could have all the data in the world and still have high turnover," she added. "There's still a human element. Do exit interviews. You won't see that on a data point."
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More pressure to become 'agile'
Organizations are increasingly being asked to shape internal operations in a way that mirrors external business trends. To that end, executives have taken to terms like "agile," with more than 80% of C-level executives in one survey calling agility the most important characteristic of a successful organization. But what exactly does that mean?
The term can lend itself to many definitions, but Cecile Alper-Leroux, vice president of HCM innovation for HR technology company Ultimate Software, said in an interview with HR Dive that in an HR context it's closely related to another idea that became popular in the HR world last year: flexibility. Agile organizations embrace contingent work forms, like contracting, to cover particular gaps that employee models may not be able to address. Ultimate Software has experimented with "flex teams," for example, that address business problems as they come up rather than focusing on one specific task.
There's an element of the gig economy in these arrangements; "People want to control their own destiny," Alper-Leroux said, explaining that an agile organization allows workers to do that to some extent, which means it also points to a new way to measure worker satisfaction. "We have to embrace a new set of metrics other than traditional results."
But teams don't always form organically. "There's a push to ensure the work can get done with the fewest barriers and how best to onboard people alongside their new counterparts in the workplace," Mazor said. Those "counterparts" won't always be people, either. "What can we do to influence positively that drive to productivity of the enterprise?"
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The role of culture in employer brand
Consumers are value-driven — meaning employees are now, too, Stern said. Employees and applicants are aware not only of an employer's advertising campaigns and brand communications, but the charitable giving an employer does, the messages it sends and the way it treats its partners and contractors. That info is simply more available now, Stern added, and people want to align with companies that share their values.
Societal shifts have partly enabled the rise of the employer as an "institution of trust," as well, Stern said. Some institutions have betrayed that trust in high-profile incidents, meaning employees are looking to companies to be less passive and to "show up" to certain moral events.
"The contract used to be an employer gives a job for life and a pension, so employees give their heart and soul and expect nothing else. And employers broke that contract," he said. "And employees have wised up. 'I need you to support my lifestyle because who knows how long we will have this relationship.'"
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A new focus on where the work is being done
As employers turn their focus to employee experience, more are considering exactly how and where employees do the work that needs doing, Mazor said. Do workers gather on a campus or at multiple, scattered locations? Do people use virtual tools, like video, to connect and collaborate? HR pros must keep these questions in mind as they design culture.
"It's no longer about redesigning process. It's really around reimagining the work," Mazor said. "How do we blend this mix of workers from so many different sources and blend those with the varieties of tech that are available to us in the HR space and more broadly?"
But that means HR may be held accountable for more aspects of the employee experience than it may have been in the past, including a functional tech experience — something more traditionally the purview of IT.
"Is it needed for the day to day and is it current? Is it glitchy? Does it shut down every three days?" Chavez said of employee tech. "Those are things people are leaving their organizations for." In other words, HR would be remiss to overlook the day-to-day tasks of the frontline employee.
And more employers are keeping an eye on the challenges facing their frontliners, from the work environment, to the tools used and beyond. HR managers will put themselves in workers' shoes in 2019 to ensure no part of the experience is overlooked. Because for all the fancy tech a company can employ — "if it doesn't work right, it won't matter," Chavez said.
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Potential for wage growth, but recession fears loom
The wage conversation will continue into 2019, Waletzke said. While employers may remain conservative concerning wage increases, some industries may “flex their wages up” because they are heavily competing for talent; either way it will be a topic of discussion in 2019.
"I think ultimately the focus then will shift to creating potentially other ways to attract talent, be it through different benefit packages or vacation time — alternative benefits to help attract people to the workforce," Waletzke added.
But as more outlets begin to speculate about a potential coming recession, that instinct to keep wages steady in the face of upheaval may feel justified, especially as automation and tech adoption enable some industries to phase out certain jobs entirely. Recession remains speculation, especially for 2019. The real question for employers is how they will approach the talent market in a potential economic downturn.
Some organizations will double-down on ensuring their employees will be more resilient and productive, Stern said, but "I think that will be a minority." A large cohort may instead go after automation and incorporate AI to streamline the work — and reduce the need to hire at all.
"It's less about people losing their jobs to robots and more people never getting jobs because robots already have them," he said.
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Leveling the playing field for women and minorities
Certainly, the push for gender equality was a dominating theme within the overall employment conversation of 2018. As that dialogue continues in 2019, that theme will likely extend, but may take on different forms. "I think you're going to see more on that," Sterling said. "Not so much on the #MeToo piece, but in neutralizing, leveling the playing field."
With this may come the continued examination of the C-suite. In 2018, the number of female Fortune 500 CEOs plummeted by 25%, according to Fortune. Addressing this disparity may cue the change Sterling predicted. Many experts have recommended that organizations with systemic gender bias or ongoing incidences of sexual harassment trigger a cultural revamp starting at the top. The theory goes like this: If the board of a company features a diverse set of executives who are compensated fairly, teams are more likely to imitate the example.
Even as the #MeToo movement fades, the impetus it gave to issues surrounding sexual harassment and gender parity will likely continue to spark discussions and change. One report found that closing the worldwide gender gap will take 108 years, but initiatives like equal pay laws, better parental leave policies and stricter sexual harassment laws may zip up that gap more speedily.
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Empowering managers to help employees
In 2019, HR execs can't afford to overlook one of their biggest tools in building an engaging culture: front-line managers. Employers will be looking for ways to put insights in managers' hands so they can lead to their teams to greatness. This shift in perspective is one reason why performance reviews have moved away from annual affairs and toward consistent, forward-looking talks, Barnett said.
"Now companies have really realized, it isn't about surveys or getting the number up. What this is really about is empowering managers to have thoughtful conversations with their teams," he added.
To ensure success, managers must be trained to have the right conversations. It's easy to tell employees they are doing well; it's considerably harder to get a problematic employee to change their ways, Barnett said. HR has an opportunity to educate and create real transformation in an organization through management personnel.
In turn, businesses are "really shifting [their] approach to workforce experience and how HR runs to drive those business outcomes. Not to support. To drive."
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Development and training to fill important gaps
Skills gaps have spurred employers, non-profits, universities and even local governments to enter the business of upskilling talent. Such efforts are essential to keeping demand in check and may even involve bringing those who once left certain areas of the job market back into the fold.
"What we are also seeing, too, is this idea of what we would call 'encore careers' — people who exited and want back in," Waletzke said, "those individuals will also need to be reskilled, and I think that is a huge topic that we need to stay at the forefront of. Those jobs can't be left vacant."
The focus on employee development has also changed the way managers talk to workers, Taggar said. Those in charge are pressured to provide increasingly continuous and structured feedback. "I think in general everyone wants that, but people aren't happy getting a standard review anymore. People want access to coaching… and all these things to develop their skills more than ever."
But skills deficits also mean recruiters can't rely on the same criteria to fill out their payrolls in 2019. That's a lesson Nash believes has been crucial to staying competitive."In addition to having some of these hard, technical backgrounds, it's really important [candidates] have certain mindsets that will enable to them to grow and change," Nash said. "Just having a growth mindset that things aren't static — they constantly change, and you have to embrace that change."
SOURCE: Moody, K. Golden, R. Clarey, K. (27 August 2019) "10 trends that will shape HR in 2019" (Web Blog Post). Retrieved from https://www.hrdive.com/news/10-trends-that-will-shape-hr-in-2019/545343/
Tracking Employee Life Cycle
The HR landscape is constantly changing. With each new generation that enters the workforce, expectations change. Read this blog post from SHRM to learn more about tracking the employee life cycle.
We who study Employee Engagement are consistently looking for trends in hiring and the direct effect on retention. The Human Resource landscape is slippery, no other profession is tasked with such a diverse cycle of management skills. The ability to find great talent, train, engage and promote are an unenviable set of tasks. Recruiters mirror salespeople, Total Rewards professionals have to have an acumen for numbers and the disparate technologies that represent the progression from hiring through promotion can make one's head spin.
So, we stare down the inevitable:
How do we create a synchronized strategy from recruitment to retirement.... ????
Let's start with the job market....
As a new generation of talent enter the workforce are expectations changing?
Are those escalated in age better equipped with irreplaceable experience?
Is a recession coming?
Do elite talents have any interest in job-hopping?
Those who are great at what they do are probably not interested in switching jobs and there are others who simply do not have the proper qualifications. So, staffing professionals are tasked with finding people who are qualified, able to engage and humble in their entry-level financial expectations.
Prospective employees have a few simple expectations:
- A product/service they believe in
- Leadership that is visionary yet receptive to change
- A culture of transparency
- A manager they enjoy serving
Sounds simple enough but the ability to pull together these traits under a common mission is difficult. Companies are often great at producing quality products but lacking in employee development. Again, our staffers are called upon to sell the good qualities of the company while side-stepping what isn't working.
Sustaining Engagement....
Getting them in the door is one thing. Delivering on promises is another.
Once employees are trained, they need to develop the confidence to acclimate to the culture. Our extended HR team has to sustain the attraction of the hiring process with technology that is accessible and intuitive. HR is then called upon to make sure there is a vessel for strong manager/employee communication while keeping leadership abreast of the action in the trenches.
Take inventory:
- Does training scale to specific functional traits while enhancing soft skills?
- Is your Human Capital Management technology integrated and engaging?
- If employees and managers aren't on the same page, how will you know?
- Does your CEO recognize general employee goals?
Train, Reward, Challenge and Eliminate Silos!
Seeing departures before they happen.....
If exit interviews are part of your engagement strategy, you are a step behind. The popular counter is to have HR integrate "stay interviews". If you need to administer a survey for employees to validate your existence, your workplace relationships might be fractured.
Managers should have an accountability plan for their employees that is more parts celebration of achievement than calling out deficiencies.
Recognize in public, discipline is private.
If in every day you leave people with a firm understanding of what is working and where they need development, there is no guesswork. People know when they haven't performed to their fullest potential, calling them out twice a year doesn't work.
Ask yourself: do our hiring enticements continue through our day-to-day engagement proposition?
We all just want to represent something we believe in among people we respect and an ever-evolving challenge cycle complete with rewards at every step of progression.
Originally published on Dave's Weekly Thought blog.
SOURCE: Kovacovich, D. (6 August 2019) "Tracking Employee Life Cycle" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/tracking-employee-lifecycle
A 16-Year-Old Explains 10 Things You Need to Know About Generation Z
What was life like when you were a teenager? The world has been focused on understanding and adapting to Millennials. Now Generation Z is beginning to graduate and enter the workforce. Read this blog post for 10 things the world should know about Gen Z.
Think about what life was like when you were 16. The clothes you wore, the places you shopped. What was most important to you then?
Whenever I speak to an organization eager to learn about Generation Z, I always ask that question. I get responses that include everything from the fleeting fashion trends of the day (bell-bottom jeans, anyone?) to the time-honored tradition of getting a driver’s license.
What I hope to achieve as a 16-year-old in 2018 is probably not all that different from what anyone else wanted when they were my age. It’s the way people go about reaching their goals that evolves over time—and that’s what also forms the basis of most generational clashes.
For the past several years, the world has been focused on understanding and adapting to Millennials, the largest and most-educated generation in history. Born between 1981 and the mid-1990s, this group has inspired important dialogues about generational differences and challenged all industries to evolve to meet their needs. In the workplace, Millennials have helped drive a greater focus on flexibility and collaboration and a rethinking of traditional hierarchies.
Of course, any analysis of generations relies on generalities that can’t possibly describe every person or situation. It’s important to remember that generations exist on a continuum—and that there is a large degree of individual variation within them. The point of this type of research is to identify macro trends among age groups that can help foster workplace harmony. Essentially, it’s a way of attempting to understand people better by getting a sense of their formative life experiences. The generation to which one belongs is among the many factors, such as race, religion and socioeconomic background, that can shape how a person sees the world.
But there’s little doubt that gaps among the U.S. generations have widened dramatically. For example, an 8-year-old boy in the United States who grew up with a tablet will likely have more in common with an 8-year-old in China who used a similar mobile device than he will with his 70-year-old U.S. grandparents.
In thinking about the generations, a key thing to understand is that these groups are typically categorized by events rather than arbitrary dates. Generation Z’s birth years are generally recognized as 1996 to 2009. The start year was chosen so that the cohort would include only those who do not remember the Sept. 11 terrorist attacks. The belief is that if you were born in 1996 or later, you simply cannot process what the world was like before those attacks. For Generation Z, the War on Terror has always been the norm.
Like all other generations, mine has been shaped by the circumstances we were born into, such as terrorism, school shootings and the Great Recession. These dark events have had profound effects on the behavioral traits of the members of Generation Z, but they have also inspired us to change the world.
Earlier this year, XYZ University, a generations research and management consulting firm where I act as the director of Gen Z studies, surveyed more than 1,800 members of Generation Z globally and released a study titled “Ready or Not, Here Comes Z.” The results were fascinating.
We discovered key characteristics about Generation Z and what the arrival of my generation will mean for the future of work. At 57 million strong and representing the most diverse generation in U.S. history, we are just starting to graduate from college and will account for 36 percent of the workforce by 2020.
Needless to say, Generation Z matters. And it is more important than ever for HR professionals to become familiar with the following 10 characteristics so that they know how to engage with my generation.
1. Gen Z Always Knows the Score
Members of this generation will put everything on the line to win. We grew up with sports woven into the fabric of our lives and culture. To us, the NFL truly does own a day of the week. But it’s more than just professional, college or even high school teams that have shaped us; it’s the youth sports that we played or watched throughout our childhoods. This is the generation of elite young teams and the stereotypical baseball mom or dad yelling at the umpire from the bleachers.
Our competitive nature applies to almost everything, from robotics to debates that test mental fortitude. We carry the mindset that we are not necessarily at school just to learn but to get good grades that will secure our place in the best colleges. Generation Z has been thrown into perhaps the most competitive educational environment in history. Right or wrong, we sometimes view someone else’s success as our own failure or their failure as our success.
We are also accustomed to getting immediate feedback. A great example is the online grading portals where we can get frequent updates on our academic performance. In the past, students sometimes had to wait weeks or longer to receive a test grade. Now, we get frustrated if we can’t access our scores within hours of finishing an exam—and sometimes our parents do, too.
2. Gen Z Adopted Gen X’s Skepticism and Individuality
Generations are shaped by the behavioral characteristics of their parents, which is why clumping Millennials and Generation Z together is a mistake. In fact, when it comes to each generation’s behavioral traits, Millennials are most similar to their parents—the Baby Boomers. Both are large, idealistic cohorts with influences that will shape consumer and workplace behavior for decades.
Members of Generation Z, on the other hand, are more akin to their parents from Generation X—a smaller group with a skeptical, individualistic focus—than they are to Millennials. That’s why many generational traits are cyclical. Just because Millennials and members of Generation Z are closer in age does not necessarily mean they share the same belief systems.
3. Gen Z Is Financially Focused
Over the past 15 to 20 years, HR professionals have been hyper-focused on employee engagement and figuring out what makes their workers tick. What drives someone to want to get up in the morning and come to work for your organization?
As it turns out, workplace engagement matters less to Generation Z than it did to previous generations. What’s most important to us is compensation and benefits. We are realists and pragmatists who view work primarily as a way to make a living rather than as the main source of meaning and purpose in our lives.
Obviously, we’d prefer to operate in an enjoyable environment, but financial stability takes precedence. XYZ University discovered that 2 in 3 Generation Zers would rather have a job that offers financial stability than one that they enjoy. That’s the opposite of Millennials, who generally prioritize finding a job that is more fulfilling over one that simply pays the bills.
That financial focus likely stems in part from witnessing the struggles our parents faced. According to a study by the Pew Charitable Trust, “Retirement Security Across Generations: Are Americans Prepared for Their Golden Years?,” members of Generation X lost 45 percent of their wealth during the Great Recession of 2008.
“Gen X is the first generation that’s unlikely to exceed the wealth of the group that came before it,” says Erin Currier, former project manager of Pew’s Economic Mobility Project in Washington, D.C. “They have lower financial net worth than previous groups had at this same age, and they lost nearly half of their wealth in the recession.”
Before Generation Z was decreed the ‘official’ name for my generation, there were a few other candidates, including the ‘Selfie Generation’ and ‘iGen.’
Employers will also need to recognize that members of Generation Z crave structure, goals, challenges and a way to measure their progress. After all, the perceived road to success has been mapped out for us our entire lives.
At the same time, it’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
4. Gen Z Is Entrepreneurial
Even though they witnessed their parents grapple with financial challenges and felt the impact of the worst economic meltdown since the Great Depression, members of Generation Z believe there is a lot of money to be made in today’s economy. Shows like “Shark Tank” have inspired us to look favorably on entrepreneurship, and we’ve also seen how technology can be leveraged to create exciting—and lucrative—business opportunities with relatively low overhead. Fifty-eight percent of the members of my generation want to own a business one day and 14 percent of us already do, according to XYZ University.
Organizations that emphasize Generation Z’s desire for entrepreneurship and allow us space to contribute ideas will see higher engagement because we’ll feel a sense of personal ownership. We are motivated to win and determined to make it happen.
5. Gen Z Is Connected
Before Generation Z was decreed the “official” name for my generation, there were a few other candidates, including the “Selfie Generation” and “iGen.”
I find those proposed names both condescending and misleading. While it’s often assumed that Generation Z is focused solely on technology, talking face to face is our preferred method of communication. Sure, social media is important and has undoubtedly affected who we are as a generation, but when we’re communicating about something that matters to us, we seek authenticity and honesty, which are best achieved in person.
“Gen Z has the power of technology in their hands, which allows them to communicate faster, more often and with many colleagues at one time; but it also brings a danger when it’s used as a crutch for messages that are better delivered face to face,” says Jill Katz, CHRO at New York City-based Assemble HR. “As humans in the workplace, they will continue to seek empathy, interest and care, which are always best received face to face.”
XYZ University’s research found that cellphones and other electronic devices are primarily used for the purpose of entertainment and are tapped for communication only when the face-to-face option isn’t available.
However, successfully engaging with Generation Z requires striking a balance between conversing directly and engaging online. Both are important, and we need to feel connected in both ways to be fully satisfied.
6. Gen Z Craves Human Interaction
Given that members of Generation Z gravitate toward in-person interactions, HR leaders should re-evaluate how to best put the “human” aspect back into business. For example, hiring processes should emphasize in-person interviews more than online applications.
A great way to engage us is to hold weekly team meetings that gather everyone together to recap their achievements. Although members of Generation Z don’t necessarily need a pat on the back, it’s human nature to want to feel appreciated. This small gesture will give us something to look forward to and keep us feeling optimistic about our work. In addition, we tend to work best up against a deadline—for example, needing to have a project done by the team meeting—due to our experience facing time-sensitive projects at school.
7. Gen Z Prefers to Work Independently
Millennials generally prefer collaborative work environments, which has posed a challenge to conventional workplace cultures and structures. In fact, many workplaces have eliminated offices and lowered cubicle walls to promote more interaction. Yet recent studies indicate that totally open offices may actually discourage people from working together. The noise and lack of privacy could prompt more people to work at home or tune others out with headphones. Since different types of work require varying levels of collaboration, focus and quiet reflection, ideal workplaces incorporate room for both togetherness and alone time.
It’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
The emphasis on privacy will likely only intensify under Generation Z. Unlike Millennials, we have been raised to have individualistic and competitive natures. For that reason—along with growing research into optimal office design—we may see the trend shift away from collaborative workplaces toward more individualistic and competitive environments.
8. Gen Z Is So Diverse That We Don’t Even Recognize Diversity
Generation Z marks the last generation in U.S. history where a majority of the population is white. Given the shifting demographics of the country, we don’t focus as much on someone’s color, religion or sexual orientation as some of our older counterparts might. To us, a diverse population is simply the norm. What we care about most in other people is honesty, sincerity and—perhaps most important—competence.
Indeed, we have been shaped by a society that celebrates diversity and openness. A black man occupied the White House for most of our lives, and we view gay marriage as a common and accepted aspect of society.
9. Gen Z Embraces Change
Compared to teenagers of other generations, Generation Z ranks as the most informed. We worry about our future and are much less concerned about typical teen problems, such as dating or cliques, than we are about becoming successful in the world.
The chaos and unrest in our political system have inspired us to want to get involved and make a difference. Regardless of which side of the aisle we are on, most of us are informed and passionate about the issues facing our society today. Witness, for example, the students of Marjory Stoneman Douglas High School in Parkland, Fla., who organized a political movement around gun control in the wake of a mass shooting at their school.
Social media allows us to have a voice in our political system even before we can vote. This opportunity has forced us to develop critical-thinking and reasoning skills as we engage in sophisticated debates about important issues that might not even affect us yet.
“Gen Z has a strong ability to adapt to change,” says Paul Carney, an author and speaker on HR trends and a former HR manager with the Navy Federal Credit Union. “For those of us who have spanned many decades in the workplace, we have seen the rate of change increase and it makes most of us uncomfortable. Gen Z are the people who will help all of us adapt better.”
According to numerous polls, the political views of Generation Z trend fiscally conservative (stemming from our need for financial stability) and socially liberal (fueled by diverse demographics and society).
10. Gen Z Wants a Voice
Given how socially aware and concerned its members are, Generation Z seeks jobs that provide opportunities to contribute, create, lead and learn.
“One of the best ways I have seen leaders engage with Gen Z is to ask them how they would build a product or service or design a process,” Carney says. “Gen Z has some amazing abilities to bring together information, process it and take action. When we do allow them to share ideas, great things happen.”
We’re also an exceptionally creative bunch. Managers will need to give members of this generation the time and freedom to come up with innovative ideas and accept that, despite our young age, we have valuable insights and skills to offer—just like the generations that came before us and those that will follow.
What HR pros should know about clinical guidelines
Sets of science-based recommendations, also known as clinical guidelines, are designed to optimize patient care in areas such as screening and testing, diagnosis and treatment. Read this blog post for what HR professionals should know about these guidelines.
Your employees and their family members frequently face tough questions about their healthcare: How do I know when it’s time to get a mammogram? When does my child need a vision screening? Should I get a thyroid screening? If I have high blood pressure or diabetes, what is the best treatment for me?
For the providers who care for them, the key question is: How do we implement appropriate, science-backed treatments for our patients, testing where needed, but avoiding potentially harmful or unnecessary (and expensive) care? The answer is to seek guidance from and use clinical guidelines —along with existing clinical skills — wisely.
Clinical guidelines are sets of science-based recommendations, designed to optimize care for patients in areas such as screening and testing, diagnosis and treatment. They are developed after a critical review by experts of current scientific data and additional evidence to help inform clinical decisions across a spectrum of specialties.
Based upon this process, guidelines are then released by a number of sources and collaborations, including academic and non-profit healthcare entities, government organizations and medical specialty organizations.
From preventive care to treatment protocols for chronic conditions, guidelines provide a framework healthcare providers use with patients to help guide care. However, it’s important to note that clinical guidelines are not rigid substitutes for professional judgment, and not all patient care can be encompassed within guidelines.
The impact on healthcare and benefits
Clinical guidelines are used in myriad ways across the healthcare spectrum, and providers are not the only ones who utilize them. Insurers also may use guidelines to develop coverage policies for specific procedures, services and treatment, which can affect the care your covered population receives.
To illustrate a key example of an intended impact of guidelines on health plan coverage, consider those issued by the U.S. Preventive Services Task Force, whose A and B level recommendations comprise the preventive services now covered at no cost under the mandate of the Affordable Care Act.
As another example, the National Committee for Quality Assurance, which accredits health plans and improves the quality of care through its evidence-based measures, uses the American Heart Association guidelines when creating its quality rules for treating high cholesterol with statin drugs.
Other examples exist among commercial coverage policies. For example, some cancer drug reimbursement policies use components from nationally recognized guidelines for cancer care.
Because science is rapidly changing, guidelines are often updated, leading insurers to revisit their policies to decide if they will change how services and medications are covered for their members. Providers and health systems may modify processes of patient care in response to major changes in guidelines and/or resultant changes in payer reimbursement.
Not all guidelines are updated on a set schedule, making it even more important for providers and organizations that rely on guidelines to stay on top of changing information, as it can have a direct impact on how they work. Attending conferences, visiting the recently established ECRI Guidelines Trust, and regularly reviewing relevant professional association websites and journals can help ensure needed guidelines are current. Lack of current information can affect care decisions and potential outcomes for patients. Those who have access to the most up-to-date, evidence-based information are able to work together to make well-informed healthcare decisions.
Why it matters for employers
As employers or benefits consultants, it’s critical to ensure that your health plan, advocacy or decision support providers, and other partners that depend on this information to guide their practices and decisions understand and follow current, relevant guidelines.
Further, by combining information from relevant guidelines and data from biometric screenings, health risk assessments, claims and other sources, it’s possible for clinical advocacy and other decision support providers to identify employees with gaps in care and generate targeted communications (through a member website and/or mobile app) to help them take action to improve their health.
Clinical guidelines are science distilled into practical recommendations meant to be applied to most patients for quality healthcare. By maintaining current, relevant guidelines, organizations and providers who work with your covered population can ensure that all parties have the key information they need to make the best decisions for their health.
SOURCE: Sivalingam, J. (18 March 2019) "What HR pros should know about clinical guidelines" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-hr-managers-should-know-about-clinical-guidelines?feed=00000152-a2fb-d118-ab57-b3ff6e310000