The Performance Review Process Can Be a Lot Easier. Here’s How.
The annual performance review has long been a fraught ritual that both managers and employees dread. Now that it's evolved, in many companies, into a less formal, yearlong process often called a "continual conversation," managers face new challenges.
Perhaps most notably, managers are now saddled with more work: conducting check-ins with multiple employees twice a month, holding quarterly meetings that can include feedback from colleagues and subordinates, writing detailed reports, and analyzing feedback surveys. The annual meeting about salary and bonuses remains on the docket as well.
"It can be a big problem," said Brian Kropp, a human resources expert at the Gartner Group, a Connecticut-based research and advisory company. "Managers spend an average of 210 hours per year on performance management, and our data shows their No. 1 frustration with the process is how time-consuming it is."
Experts say there are several ways to make this new era of performance reviews less cumbersome. For example, managers should get employees more invested in the process by having them do the bulk of the prep work for the check-ins and meetings. Managers should also act more like coaches and make the frequent sessions less formal, with an emphasis on keeping them collaborative. And they should use feedback technology to automate more parts of the process.
As far as workload goes, "you don't have to take all that responsibility on yourself," said Dick Grote, a Texas-based management consultant who has worked at General Electric, United Airlines and Frito-Lay. "Put that work on the employee."
Give employees standard templates and frameworks with directed questions to answer. These questions can include "What are my priorities right now?," "What obstacles am I running into?" and "What feedback have I received?"
Managers can also change the dynamic that is typically associated with the process. BJ Gallagher, a Los Angeles-based workplace consultant who has worked with IBM, John Deere and Chrysler, has seen many performance evaluations get bogged down by a judgmental and adversarial interaction. She said managers can improve employee performance more effectively and efficiently by using a collaborative approach, and that can start with the initial conversation in the yearlong check-in process. "The start of the year is when mutual goals can be established as a manager-employee team looking together at the big projects on the horizon," she said. "Use that check-in session to establish three to five goals and stay away from subjective behavioral goals. Make them measurable."
To that end, managers should approach the process like "a great coach, not a traditional boss," said Ben Wigert, director of research and strategy in the workplace management division of Gallup. "It's about changing their lens and thinking about what a great coach looks like."
Studies show that employee performance improves when managers give workers meaningful feedback and make the conversations more team-oriented. For instance, managers can get an employee's peers to give feedback. Peer input can help reduce some of the burden on the manager and emphasize the team aspect of the process.
But Kropp pointed out that there is a downside to peer feedback: It can be vulnerable to bias, especially when the input is given in an "open box" format. "We suggest organizations direct peer feedback with targeted questions about specific actions and outcomes," he said.
Another tool to make the process more manageable is feedback technology. For instance, a manager can formally capture all performance conversations and feedback in the organization's human capital management system, Kropp said.
Ultimately, revamping the process from an annual review to a yearlong conversation should lead to less work for managers, not more, consultants said.
SOURCE: Rosenkrantz, H. (28 April 2020) "The Performance Review Process Can Be a Lot Easier. Here’s How." (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/people-managers/pages/ongoing-performance-reviews-.aspx
Employees feel less connected working remotely but say work quality is improved
Dive Brief:
- Two recent surveys provide different impressions of how U.S. workers are adjusting to remote work during the COVID-19 pandemic, one painting a picture of engaged, productive employees and the other reporting disconnects
- Most employees in a KPMG survey said they felt prepared to transition to remote work and that their teams are collaborating better as a result of the changes. More than half (54%) said their productivity had improved since the transition, while 64% said the quality of their work improved.
- But most younger workers in particular have found the transition difficult, according to a survey by software platform Smartsheet. More than 90% of both Generation Z and millennial employees in that survey reported difficulty working from home, while more than 80% of both groups said they felt less connected. Half of respondents in both groups said they found it hard to get status updates.
Dive Insight:
As remote work becomes routine for companies that can afford to make it work during the pandemic, experts have questioned whether the trend will continue after the threat of the novel coronavirus has passed.
Early research showed many employees, at least, believe this will be the case. A survey conducted in early April by OnePoll and Citrix found more than a third of employee respondents believed their organizations would be more relaxed about remote work following the pandemic. Similar to the KPMG and Smartsheet surveys, however, employees had a mixed reaction to different components of the remote experience. For example, a third of the OnePoll/Citrix respondents said they felt overwhelmed by their remote work situation.
Even before the arrival of the pandemic in the U.S., a January survey by Robert Half found that employees felt deterred from taking advantage of remote work perks over concerns about technology and fears that distractions would hurt productivity.
Telework, reduction of hours and other impacts of the pandemic are also compounding employees' stress levels, an April 7 Gallup report found. Even so, more than half of respondents to a Gallup poll included in the report strongly agreed that they had a clear plan of action, a figure that rose by 15 percentage points since mid-March.
Employers are taking steps to address issues that may affect remote workers during the pandemic. Education company Chegg, for example, is offering childcare reimbursement worth up to $500 per family to employees who are working parents. Vendors are also pitching solutions to employers ranging from "wellness boxes" full of snacks to virtual, video-game like representations of their offices.
Emotional stability and autonomy can be important predictors of whether employees can successfully transition to remote work, a 2018 study published in the European Journal of Work and Organizational Psychology found. Besides providing support, employers also need to prepare employees by giving them the proper equipment, sources previously told HR Dive.
SOURCE: Golden, R. (27 April 2020) "Employees feel less connected working remotely but say work quality is improved" (Web Blog Post). Retrieved from https://www.hrdive.com/news/employees-feel-less-connected-working-remotely-but-say-work-quality-is-impr/576809/
Viewpoint: How to Lead in a Crisis
As many leaders have been faced with uncertainty during the trying times the coronavirus pandemic brought upon them, it's important for them to lead with the advantage that the uncertainty can bring. Read this blog post to learn more.
Despite a host of warnings about the impending COVID-19 crisis, it caught most of us by surprise. I recall attending the regular leadership team meetings of a few of my clients the week of March 9, and by March 15, the world had changed. It was no longer a potential crisis; it was a full-on global pandemic where new terms such as "social distancing" and "flattening the curve" became part of our lexicon. A spectrum of responses emerged, from reactive chaos to deploying well-practiced business continuity modes.
The challenge that leaders face in a crisis is that their organizations aren't typically set up to operate with such uncertainty. Leaders create visions, plans and metrics to attempt to control their environments and minimize uncertainty as best they can. In a crisis many leaders default to what they know how to do in order to reduce frustration and quell their own and others' fears. This default mode is simply not productive and rather than reduce uncertainty and anxiety, it increases both.
Today all organizations are faced with a new normal—uncertainty and inability to control the environments in which they operate. We know the pandemic will end but it won't truly be over until a vaccine is available. We know the curve will eventually flatten but projections seem to change hourly. We know people will get back to work but we don't know whether social distancing will continue to influence the economy. We know that remote work is possible on a broad scale but it's not clear if this will work long-term.
Ralph Stacey and Douglas Griffin's definition of a leader is one that lends itself to today's environment: "One recognized as a leader has a greater capacity to live with the anxiety of not knowing and not being in control. The leader is recognized as having the courage to carry on interacting productively and creatively despite not knowing." This definition certainly applies to today's environment of tremendous uncertainty and great anxiety. Clearly there is much we don't know about what the future will hold. It is also clear that leadership today requires an ability to embrace uncertainty and interact productively.
While it's a relatively small sample size, we have been amazed by the approaches our clients have taken to navigate their way through these challenging times. None have had an easy time, and some were certainly more prepared than others, but most have quickly overcome their natural tendency to control and shifted to doing their best to operate in crisis mode. In each case a few important themes emerged for how to embrace the uncertainty – humility, transparency, engagement, focus and patience.
Positive humility. In their own ways, each CEO acknowledged their fear about the unknown and that they didn't have all the answers, but they exuded a sense of calmness and confidence in their organizations to work smart and hard to get through the crisis. By reinforcing and modeling positive humility CEOs have established a tone for their leadership teams to cascade throughout their organizations.
Transparency. CEOs and their leadership teams are proactively communicating difficult information openly and being clear when they don't have answers to important questions. For example, they are not promising that no jobs will be lost but they are committing to pursuing all avenues necessary such as the SBA CARES Loans to secure jobs as long as possible.
Engagement. When in doubt these organizations are doing their best to negotiate clear expectations (i.e., daily check-in sessions with supervisors) and over-communicate (i.e., using email, internal web site and supervisors to reinforce that hourly workers will be paid weekly). They are also encouraging managers and staff to use multiple channels to remain in contact both formally and informally (i.e., Virtual Team Meetings, Virtual happy hours, random watercooler calls).
Focus. After a short period of getting their remote offices working, CEOs and their leadership teams redoubled their efforts to ensure their organizations remained focused on the core mission (i.e., executing loans, building interiors, registering / renewing members). They also reinforced that today's plans would likely change tomorrow and that learning from mistakes and helping employees and customers manage uncertainty is a big part of their jobs.
Patience. In a crisis adults often revert to overdone strengths – people who are naturally decisive might become arrogant or people who tend to be naturally empathetic might become overly protective. These CEOs and their leadership teams recognize this tendency to revert. They are working hard to have patience with each other by giving space, not overreacting themselves and providing gentle feedback.
These are extremely challenging times and despite efforts by the smartest scientists, economists and business leaders in the world, there is no clear path to when things will get back to normal. Ambiguity is a daily obstacle for most business leaders, but today we are dealing with ambiguity on steroids. It is not easy but we are so encouraged to see so many CEOs and their leadership teams embrace the ambiguity to help their organizations get to the other side of this crazy time.
Jack McGuinness is co-founder and managing partner of Relationship Impact, a consulting firm focused on helping great leaders build great leadership teams.
This article is excerpted from www.ChiefExecutive.net with permission from Chief Executive. C 2020. All rights reserved.
SOURCE: McGuinness, J. (20 April 2020) "Viewpoint: How to Lead in a Crisis" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/employee-relations/Pages/Viewpoint-How-to-Lead-in-a-Crisis-Coronavirus.aspx
Guidance Clarifies COVID-19 Diagnostic Testing Mandate
As many know, on March 18, 2020, the president had signed the Families First Coronavirus Response Act (FFCRA), which ultimately includes a requirement that health plans cover COVID-19 testing. Read this blog post for frequently asked questions and their answers provided from SHRM.
The Departments of Labor, Health & Human Services, and the Treasury recently issued a set of frequently asked questions (FAQs) that provide guidance to group health plan sponsors on various issues related to implementation of the COVID-19 diagnostic testing mandate.
Background
On March 18, 2020, the president signed the Families First Coronavirus Response Act (FFCRA), which includes a requirement for group health plans to cover COVID-19 diagnostic testing—including the cost of office, urgent care, ER and telehealth visits in order to receive testing—without cost-sharing or prior authorization. The following week, he signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which expands the COVID-19 diagnostic testing mandate provisions.
Departments' FAQs
The Departments of Labor, Health & Human Services, and the Treasury (the departments) issued a set of FAQs on April 11 that provide guidance to group health plan sponsors on various issues related to the implementation of COVID-19 diagnostic testing requirements. The departments anticipate releasing additional guidance in the future.
The FAQs address the following issues.
Which group health plans are subject to the mandate?
Most group health plans are subject to the mandate. This includes grandfathered plans under the Affordable Care Act, non-federal governmental plans, and church plans. The mandate does not apply to retiree-only plans or to excepted benefits, such as dental, vision, and most EAPs.
When are plans first required to comply and for how long?
Plans are required to cover items and services relating to COVID-19 diagnostic testing that were furnished on and after March 18, 2020, and to continue to do so through the end of the public health emergency. Unless extended or terminated earlier, the public health emergency related to COVID-19 will end on June 16, 2020.
What types of testing must be covered?
The guidance clarifies that in addition to tests that determine whether an individual has the virus based on the presence of COVID-19 virus genetic material in the body, a group health plan must also cover serological testing to detect COVID-19 antibodies. All tests must be either: (1) authorized by the Food and Drug Administration (FDA), (2) under review by the FDA, (3) developed and authorized by a state, or (4) determined appropriate by the Secretary of Health & Human Services.
What items and services must be covered in full during a visit?
Health plans "must cover items and services furnished to an individual, during visits that result in an order for, or administration of, a COVID-19 diagnostic test." The FAQs clarify that if the attending provider determines that other tests, such as influenza or blood tests, should be performed during a visit to help determine whether COVID-19 diagnostic testing should be conducted, "and the visit results in an order for, or administration of, COVID-19 diagnostic testing," the plan must cover those services in full.
If COVID-19 diagnostic testing is not ordered or administered as a result of the visit, full coverage for these services is not required.
Can a plan impose any cost-sharing, prior authorization, or medical management requirements for COVID-19 testing?
No.
Does the requirement to cover COVID-19 diagnostic testing without cost-sharing apply to out-of-network providers?
Yes. This requirement applies to out-of-network providers, including HMOs that otherwise do not cover non-emergency out-of-network services. Out-of-network providers would be reimbursed based on the cash price listed by the provider on a public website or the amount negotiated by the plan with the provider.
Under what circumstances are services considered to be furnished during a visit?
The FFCRA requires plans to cover COVID-19 diagnostic testing services during office visits including in-person and telehealth visits, as well as urgent care centers and emergency rooms. The guidance defines the term "visit" broadly "to include both traditional and non-traditional care settings in which a COVID-19 diagnostic test … is ordered or administered."
While the guidance does not require group health plans to include a benefit with a telehealth provider, any services offered by a provider through a telehealth visit or other remote visit for COVID-19 diagnostic testing must be covered in full.
What participant communication requirements apply?
The ACA requires group health plans to provide participants with at least 60 days' advance notice of a material modification to information contained in a Summary of Benefits and Coverage (SBC). The FAQ states that the departments will not enforce this advance notice requirement to the enhanced coverage of items or services related to the diagnosis or treatment of COVID-19. The non-enforcement policy will also apply to the addition or expansion of telehealth and other remote care services. However, plans "must provide notice of the changes as soon as reasonably practical." The guidance notes that the departments would continue to take enforcement action against a plan that attempts to offset the cost of the COVID-19 diagnostic testing requirement by eliminating or limiting benefits or increasing cost-sharing on other services.
The non-enforcement policy applies during the public health emergency period. If the benefit changes are continued beyond the public health emergency period, then plans will be required to update plan documents and terms of coverage.
Employers should communicate the coverage changes to participants as soon as possible. Using updated SBCs for this communication is an option for employers, but not required.
What about SMMs?
Unlike the SBC requirements, unless there is a material reduction in benefits, a group health plan does not have to issue a statement of material modification (SMM) for a change until 210 days after the close of the plan year in which the change was adopted. Nevertheless, sponsors may want to consider providing notice of the changes in the form of an SMM.
Can an employer offer benefits for COVID-19 diagnostic testing under an EAP or onsite medical clinic that constitute an excepted benefit without impacting its excepted benefit status?
Yes, diagnostic testing coverage can be provided without impacting the excepted benefit status of the EAP or onsite medical clinic.
While the guidance strongly encourages plan sponsors to promote the use of telehealth services, similar relief was not provided for telehealth benefits. Some employers are considering offering a standalone telehealth benefit to employees who are not eligible for medical coverage, or who have waived coverage. However, a standalone telehealth benefit would not satisfy the ACA market reform requirements unless it qualifies as an excepted benefit.
Use of onsite medical clinics to provide testing could be part of an employer's return-to-work program.
In Closing
The FAQs provide important guidance for employers on implementation of the diagnostic testing requirements and include actions employers need to take to communicate these provisions to employees.
Richard Stover, FSA, MAAA, is a principal at HR advisory firm Buck. Leslye Laderman, JD, LLM, is a principal in the firm's Knowledge Resource Center. This article originally appeared in the April 15, 2020 issue of Buck's For Your Information. © 2020 Buck Global LLC. All rights reserved. Republished with permission.
SOURCE: Stover, R.; Laderman, L. (21 April 2020) "Guidance Clarifies COVID-19 Diagnostic Testing Mandate" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/guidance-clarifies-coronavirus-diagnostic-testing-mandate.aspx
What Happens When Employers Violate Shelter-in-Place Orders?
During the coronavirus pandemic, many states are allowing only essential businesses to stay open to the public, while other businesses are on a shelter-in-place order. Read this blog post to learn more.
In many states, only essential businesses can stay open to the public and only critical staff can remain at the worksite during the coronavirus pandemic. So what happens when employers ignore the rules? In some jurisdictions, employers can face civil or criminal penalties.
Officials in some states, including California, Georgia and New York, are asking people to report businesses that are violating shelter-in-place orders.
"Each and every one of us is called to work together and cooperate with emergency responders and public officials who are working hard to keep all New Yorkers safe," said New York Attorney General Letitia James.
We've rounded up articles and resources from SHRM Online and other trusted media outlets on shelter-in-place orders.
What Is an Essential Business?
To help combat the spread of COVID-19, the respiratory disease caused by the coronavirus, many state and local governments are issuing stay-at-home or shelter-in-place orders that only permit "essential" businesses to remain open. The distinction between "essential" and "nonessential" businesses isn't the same in each location, so employers need to review the specific orders that apply to their operations. Generally, essential businesses include health care, first responders, food production and delivery, medical supply, public utilities, communications and information technology, grocery stores, and gas stations. Nonessential businesses typically must allow employees to work remotely, close for a period of time or reduce their operations to certain activities that are necessary to preserve the business.
State and Local Coronavirus Decrees Raise Questions
Gray areas in state orders call for careful introspection and decision-making by businesses. Should they find a way to stay open to pay workers and maintain customers, or close for a less tangible public good—helping to prevent the spread of COVID-19? "Those are extremely difficult decisions to make and not the sort of thing most HR professionals were having to deal with five months ago," said Jackie Ford, a partner at Vorys, a labor and employment law firm in Houston, which issued its own citywide shelter-in-place rules on March 24. "It's a whole new skill set."
Civil and Criminal Penalties May Apply
Employers must follow shelter-in-place orders or they could face civil or criminal penalties. In Michigan, for example, violating the state's order is a criminal misdemeanor and businesses that don't comply can be fined and possibly shut down.
States with Shelter-in-Place Orders
Many state and local governments are implementing strict measures, but the duration of the orders vary. For instance, Alabama's order is in place until April 30, Virginia's expires June 10 and California's is effective until further notice. Here's a chart that shows which states have ordered nonessential businesses to close and where public officials have encouraged or mandated residents to stay at home.
Michigan Extends Retaliation Protections Amid COVID-19 Outbreak
Some states are also addressing coronavirus-related issues in their antiretaliation rules. For instance, on April 3, Michigan Gov. Gretchen Whitmer issued an executive order prohibiting employers from discharging, disciplining or otherwise retaliating against an employee for staying home from work because the employee tests positive for COVID-19, displays principal symptoms of COVID-19, or has had close contact with an individual who has tested positive or has symptoms.
Showing Compassion May Minimize Risk of Employee Claims
Care, show compassion, connect, communicate and be flexible—these are COVID-19's HR lessons. Johnny C. Taylor, Jr., SHRM-SCP, president and CEO of SHRM, summed things up as follows: "Every workplace operates under a set of guiding principles, whether overtly expressed or more subtly embedded in the culture. This is the moment to examine the principles that define you as an employer and a corporate citizen, and ensure they are ones you want to uphold and are prepared to live. Employees will rest easier knowing that you are operating under a strong value system that doesn't waver in good times or bad."
SOURCE: Nagele-Piazza, L. (13 April 2020 "What Happens When Employers Violate Shelter-in-Place Orders?" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/when-employers-violate-shelter-in-place-orders.aspx
COVID-19 Changes Internships, Apprenticeships
As the coronavirus pandemic has put a restriction on many plans, it's also raised concerns for organizations with internship and apprenticeship programs for early career development opportunities. Read this blog post from SHRM to learn more.
Travel restrictions and social-distancing mandates prompted by COVID-19 are causing organizations to rethink their approach to apprenticeships and internships, which typically involve hands-on, in-person participation.
The National Association of Colleges and Employers (NACE) is seeing a steady push toward moving internships online or limiting them in size and duration. A quick unscientific poll it conducted April 3 with 130 of its employer members provided insight on how members are adapting their programs:
- 35 percent are making no changes to their program.
- 35 percent are reducing the length of internships by delaying the start date.
- 29 percent are moving to a virtual program.
- 20 percent are moving events such as end-of-program presentations online.
- 15 percent are reducing the number of interns.
Some organizations are considering micro-internships that condense a 10-to-12-week internship into a one-to-two-week experience later in the summer, said Bruce Soltys, head of talent acquisition sourcing strategy at The Travelers Companies based in Hartford, Conn. It has a 450-person internship program at 25 locations throughout the U.S.
He was among speakers at a panel discussion on internships that NACE hosted April 2.
"Companies might put a little bit more of an emphasis on training and development where [interns] are really focused on the learning and development piece and not so much on a personal project," Soltys said.
"From a change management perspective, we've presented the case to our senior leaders to say, 'If we have to go down this path from a virtual-work standpoint, the main question is, can this work be done virtually?' I think a lot of managers are not comfortable with the notion of interns doing the work virtually because [interns] are so new to the organization."
SAS, a computer software company outside of Raleigh, N.C., has a seven-figure investment in its internship program, said Kayla Woitkowski, a university recruiter leader for SAS who spoke on the NACE panel. Her employer is "making sure that any internship that does go virtual … the students have valuable work" to perform.
She has found, based on phone conversations with other employers, that organizations are taking one of three stances toward internships in light of COVID-19:
- Turning their internship program into a virtual one, ensuring that any work interns have been hired to perform can be done remotely.
- Canceling internships.
- Pushing back start dates.
As organizations wrestle with what to do with their internship programs, it's important that they keep in contact with the students they selected, said David Ong, panel moderator and senior director of corporate recruiting at Maximus. The Washington, D.C.-based company is a health and human services provider for state, federal and local governments.
The organization met with all interns and program associates as a group to assure them that they would keep them up-to-date on the program's status.
"It is also just a chance to keep them engaged," Ong said. "A lot of these students have [other] options."
Online tools can be an internship program's friend, according to Renato Profico, CEO of Doodle, a Zurich-based online scheduling tool.
"They can translate culture into a digital setting to make interns and new hires feel included," said Profico, who has personally invited every employee to a 15-minute virtual coffee meeting over the next few weeks. "These little things are important at a time when employee engagement and retention could dip significantly."
Apprenticeships
Changes prompted by COVID-19 will likely cause companies to be more pragmatic in how they view the role of apprenticeships, said Jennifer Carlson. She is the co-founder and executive director of Apprenti, which operates in 12 states as a fully paid technology apprenticeship program for minorities, veterans and women.
"COVID-19 is going to force companies to be more deliberate and probably see apprenticeships as an equitable pipeline, equivalent with all their talent acquisition pipelines," Carlson said. "Not all jobs in the science, technology, engineering and math fields, for example, require a college degree.
"You can take people from nontraditional [areas] and train them and create a second pipeline [for talent] using apprenticeships."
One such example is the Youth Technology Apprenticeship Camp (YTAC) in Charlotte, N.C., a major technology workforce site in the U.S. Last year, for example, home-improvement company Lowe's announced the creation of a 2,000-employee global tech hub in Charlotte.
The demand for employees with tech skills "is off the charts for these companies," said Tariq Scott Bokhari, Charlotte city councilman and founder of the Carolina Fintech Hub. The Fintech Hub created YTAC and partnered with the city of Charlotte, the Charlotte Executive Leadership Council, the Bank of America Foundation and Charlotte-Mecklenburg Schools.
Apprentices are high-school seniors who earn a credential after completing the four-week program. Those performing above a certain threshold are guaranteed acceptance into the local Workforce Investment Network training program. After successfully completing six months of training, participants are guaranteed a job as a full stack developer with a starting salary of $55,000.
The pandemic prompted a format change to the apprenticeship: It will be entirely virtual. Participants meet in small virtual breakout groups to work on their project, participate in labs, hackathons and livestream competitions and attend virtual training.
Bokhari thinks the altered format will continue in some way after the pandemic is over. With the virtual setup, overhead costs are lower, so more students can be accommodated. It also mirrors what he thinks will be the new reality for work.
"I think things will change forever after this, but it will probably be some mixture of physical and virtual [format]. We want this experience … to mimic the real-life workforce environment. I think the real-life workforce environment is going to change."
SOURCE: Gurchiek, K. (13 April 2020) "COVID-19 Changes Internships, Apprenticeships" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/organizational-and-employee-development/Pages/COVID19-Causes-Changes-to-Internships-Apprenticeships.aspx
Strategies for making layoffs a last resort during a crisis
Did you know: 6.6 million Americans have applied for unemployment due to the coronavirus pandemic. Many businesses are looking for other alternatives than automatically laying off their employees. Read this blog post to learn more.
In uncertain times business leaders can be faced with an impossible choice, keep every employee or keep their business afloat.
More than 6.6 million Americans have applied for unemployment, according to the Labor Department and there have been over 10 million jobless claims, as a result of the coronavirus pandemic keeping people in their homes and out of work. It is likely that businesses will make further cuts as the latest PwC survey suggests 44% of CFOs expect furloughs and 16% expect layoffs.
The unfortunate reality for many small businesses is that there typically isn’t an alternative to layoffs, but larger organizations have more options.
“There are several firms in the U.S. right now, including our own, that have publicly said layoffs are a last resort,” says Bhushan Sethi, PwC’s global people and organization leader. “What they are looking to do is be creative with the different levers you can pull around the workforce.”
Sethi in a recent interview shared ways in which employers can make layoffs a last resort in times of unpredictability.
How can businesses avoid layoffs during a crisis?
There’s looking at compressed work schedules, reducing costs in other areas, including real estate or business travel. There are other benefits employers may be offering that are not relevant like a car allowance or a travel allowance. Even before COVID-19 we’ve seen clients take a look at a compressed work schedule. Employers need to understand what it means if they offer a compressed work week, whether it is 40 hours across four days or in some areas it might mean one week on, one week off. So the compressed work weeks can take on different forms. Changing the pay would be next, and looking at the areas of your firm that have significant costs and looking at where value is created. What that could mean is changing the mix of pay at the executive level. Certain companies have come out and froze or capped executive pay or said executives won’t take bonuses. So there’s different levers on the compressed work schedules and on the pay models and then there are other kinds of cost control measures you can take.
How are employers designing benefits during this time?
In our CFO survey we saw that 56% of them were also looking at other benefits, specifically things like paid time off and sick leave. A number of them are saying “how do I design benefits around what my people want?” At PwC we said we’re going to give an emergency child care allowance to people who need it for $2,200. We’re seeing this shift around what you can offer your employees from a benefits perspective that might be very relevant to them. I’ve seen other clients say “well if there is a small piece of equipment that will help you with remote working like investing in a different shaped chair or something like that,” it seems trivial but it's really important to people’s experience right now.
How can employers reassure their remaining staff when they have to make staffing cuts?
It’s still an opportunity for firms to start planning beyond just today’s business. You’ve got to project out maybe 12 months and say what will my revenue and my profitability be, based on some assumptions being made around the business. The more you can get employers to actually think about kind of financial impact then you can walk it back and say okay, I‘ve got to ask about the costs I need to manage and how can I be creative by not just looking at payroll and salary and benefits, but how can I think about other levers I can pull? Can I offer sabbaticals to people? Can I do compressed schedules? Can there be job sharing in certain key rolls? Looking at all the different levers around it is going to be important because then you may actually get to a decision that is more beneficial for your employees, for society, and your business because you won’t be in the process of having to lay off a significant amount of people and cause reputational damage to the business.
SOURCE; Shiavo, A. (13 April 2020) "Strategies for making layoffs a last resort during a crisis" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/strategies-for-making-layoffs-a-last-resort-during-a-crisis
Worker burnout is soaring. Here’s how to reach your employees before it’s too late
Did you know: 77 percent of employees have experienced burnout at their current job. With the coronavirus causing employees to change the way they work, that number may be standing firm. Read this blog post to learn how to reach your employees before they become burnt out during this pandemic.
Coronavirus has caused a total upheaval of the workplace, forcing the majority of companies to work remotely. As workers balance their professional responsibilities with increased stress and anxiety, the risk of burnout is soaring.
The typical signs of burnout in the workplace include missed deadlines, declining relationships, absenteeism and poor performance, and 77% of employees have experienced burnout at their current job, according to a 2019 survey by Deloitte. Ninety-one percent said that feelings of stress and frustration impact their work and personal relationships. The abrupt change in routine caused by coronavirus has pushed more workers to feel the strain.
“Global crises can affect the economy and the job market — even employees who don't deal with mental health issues might need behavioral health support during this time," says Dr. Rachelle Scott, a medical director of psychiatry at Eden Health, an insurance provider. “And in times of high stress, burnout may be accelerated.”
Burnout, when not addressed, can lead to more serious mental health issues. Now characterized as a psychological syndrome, 59% of people diagnosed with burnout were also diagnosed with an anxiety disorder, and 58% were diagnosed with depression, according to a study by Frontiers in Psychology, a medical journal. These mental health diagnoses negatively affect workplace productivity and the company’s bottom line. Burnout is estimated to cost $125 to $190 billion in lost productivity and healthcare costs, according to Gallup.
And while now is a critical time to work collaboratively and communicate openly, even those close virtual quarters can spread feelings of stress and burnout faster than normal.
“Burnout is likely to pop up from employee to employee and affects all levels,” Scott says. “If an employee is burned out, others may have to pick up the slack. And if the employee quits, it takes time and money to replace them.”
Employee healthcare programs can be the first step to identifying the early signs of burnout and addressing a treatment plan, says Matt McCambridge, chief executive officer of Eden Health. A company’s healthcare plan needs to allow employees to have relationships with both a primary care provider and a behavioral health provider within the same network.
“Primary care physicians will be the first people to hear about employee burnout, so the better they know their patients, the earlier they can notice these changes," McCambridge says. “Health plans need to integrate primary care and behavioral health, where a PCP can recommend a behavioral health person within their own practice."
Without the ease and accessibility of comprehensive care, companies and their employees are missing out on essential benefits and cost-cutting measures.
“Unless people can get the services directly, you're not providing the benefits you should," McCambridge says. “Comprehensive health care reduces burnout and reduces cost by 9-17%.”
Beyond healthcare measures, employers should take the lead and be cognizant of changes with their employees, says Kathleen Harris, the former vice president of benefits at WarnerMedia. Offering support through programs like remote lunches or video one-on-ones with managers can help foster a sense of understanding and compassion.
“Employees need that time to have open and honest conversations and raise their issues to their manager," Harris says. “While you can't change company culture overnight, you can put policies and programs in place. Celebrate the wins and give them acknowledgement.”
Without addressing burnout early on, managers and employers are missing an opportunity to provide care to their employees, before it’s too late.
“There are multiple opportunities to step in and support those employees before they get to rock bottom,” Eden Health’s Scott says.
SOUCE: Place, A. (03 April 2020) "Worker burnout is soaring. Here’s how to reach your employees before it’s too late" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/worker-burnout-is-soaring-heres-how-to-reach-your-employees-before-its-too-late
Pandemic Takes a Toll on Employees’ Emotional Well-Being
As the coronavirus pandemic has made working from home a new norm, some employees are facing many challenges whether it be emotionally or mentally. Read this blog post to learn more.
Mental health issues in the workplace have been an area of concern for some time, but with the COVID-19 crisis, the emotional challenges employees are confronting have spiked.
"The coronavirus pandemic has made employees' mental health top-of-mind for employers, as many working adults are feeling a sense of uncertainty," said Nancy Reardon, chief strategy and product officer at Maestro Health, a benefits-management software firm based in Chicago.
Employees are feeling stress and experiencing significant change. They may:
- Be concerned about the stability of their jobs.
- Have been asked to work from home—or required to come onsite despite heightened health risks.
- Be juggling child and elder care issues and responsibilities.
"Having to care for a disabled child, elderly parents or multiple children can be additional stressors that can affect an employee's emotional and physical well-being, especially as many day cares, community agencies and medical offices are being closed," said Kamilah Thomas, a licensed clinical social worker with KBT Counseling and Consulting in Bellaire, Texas.
Anyone could experience crippling levels of stress and anxiety now, so it's important for HR professionals and people managers to be alert to signs that may indicate employees are struggling to cope.
Signs to Watch For
Nate Masterson, HR manager for personal care products company Maple Holistics in Farmingdale, N.J., suggests managers be on the lookout for potential erratic work hours or lack of availability. These may be indications that something is wrong.
"Now, more than ever, it's important to stay on top of employee productivity, not in terms of the company's success, but for employee well-being," even—or especially—if employees are working at home, Masterson said. "It's important to come from a place of concern for health rather than business advancement during this challenging time."
Thomas encourages employers to be alert to "frequent physical complaints, increased anger or irritability, persistent sadness, excessive worrying, poor sleep patterns, suicidal thoughts, increase in substance use, impulsivity or reckless behavior."
Those changes are not always easy to notice when workers are onsite, much less when supervising remote workers. Check in regularly with teleworkers by phone or video conferencing, which provides an opportunity to gauge and respond to these concerns.
What Should HR Do to Ensure Employees Have the Support They Need?
One of the most important things leaders can do is provide an employee assistance program (EAP) or health plan with good mental health coverage, said Aimee Daramus, a licensed clinical psychologist in Chicago. If an EAP is part of the benefits package, now is a good time to remind employees of the availability of such services.
"Companies can also make lists of local mental health resources like therapists, psychiatrists, suicide hotlines, or meditation and yoga classes," she said.
HR professionals can help employees feel supported by role-modeling "the ability to say, 'I'm feeling some anxiety right now,' or other words that normalize talking about mental health," Daramus said. "People will feel less stressed just because they don't have to keep their problems a secret."
Even simply allowing them to talk about their concerns and emotions can help, said clinical psychologist George Vergolias, medical director of R3 Continuum, a behavioral health consultancy in Minneapolis. "HR professionals should strive for early and often communication to employees, including honest and transparent information about what you know and what you don't know" about issues such as job security, as the situation develops.
Employees Working Onsite
Employees still working onsite in industries such as health care, retail, food services and critical manufacturing operations will have different needs than those working from home. Those onsite may have worries about being infected by co-workers or customers. Amazon warehouse employees' concerns on these matters have been much in the news, as an example.
HR leaders and people managers should encourage and support these employees and communicate with them regularly about the safety precautions they are taking and encouraging employees to take. Employees should not report to work if they are experiencing symptoms. Employers may want to screen employees for fever or other symptoms and ask them to go home if necessary.
Employees Working from Home
Employees working from home have additional concerns. Many may not have experience working remotely—or may not be comfortable with it. Some may be dealing with caring for children or others who also are at home. Feelings of isolation may be common.
To support workers at home, Reardon suggests, HR professionals and managers can encourage them to go outside for a walk or to take lunch in another room to get a mental break during the day.
"Another good reminder for employees is to take care of their physical self by drinking a lot of water and eating healthy foods, which can reduce stress and keep employees mentally alert during the workday," she said.
In addition, employers can also encourage home-based workers to take time for their families. "Taking a break from work to walk your dog with your daughter or teach your son math are not only ways working parents can keep their children occupied since they're not in school, but also good mental reminders to prioritize the overall well-being of family members during this time," Reardon said.
Innovative Approaches
These are different times, and everybody is feeling their way through them. It's important to think creatively about supporting employees wherever they are.
At Denver-based Paladina Health, which manages primary care practices, Chief People Officer Allison Velez said that virtual 15-minute meditations are being offered each morning. Teammates who miss the meditation can log in later for a replay.
"The old rules may not apply," Velez said. "This is the time for HR to reinvent themselves. If your old policies and programs aren't meeting the current needs of your teammates, change them." Paladina also has revamped its traditional paid-time-off (PTO) program to create new flexible options like PTO donations to colleagues and allowing employees to borrow against future PTO time they haven't yet accrued.
Diana Vienne, senior partner with Notion Consulting in New York City, offers some ideas for HR professionals to help employees cope:
- Host virtual manager meetups that help support front-line leaders with tips and tricks for managing through this change.
- Offer online toolkits and resources so all employees have what they need to operate productively.
- Conduct a quick round of check-ins from participants at the beginning of every virtual meeting to see what's on people's minds, personally and professionally.
- Provide informal videos from leaders that are empathetic and talk personally about challenges that they understand people are going through.
- Encourage employees working remotely to take time for self-care and movement/exercise during the workday.
Most importantly, during these exceptionally stressful times, keep lines of communication open and remind employees regularly of the resources they have available to them. Remind them we are truly all in this together.
SOURCE: Grensing-Pophal, L. (07 April 2020) "Pandemic Takes a Toll on Employees’ Emotional Well-Being" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/pandemic-takes-a-toll-on-employees-emotional-well-being.aspx
Remote Work Policies Should Now Stress Flexibility
While employers are in the midst of distributing guidelines for employees working remotely, it's important for management to also outline policies and procedures for working remotely. Read this blog post to learn more.
Organizations are implementing remote-work arrangements for their employees due to the COVID-19 coronavirus outbreak—many for the first time—and need to be able to outline expectations and guidelines for working outside the office.
Generally, remote-work policies cover eligibility, working expectations, legal considerations and technology issues, but, during these extraordinary circumstances, flexibility is paramount.
We're undergoing one of the biggest changes in history in how people work, said Brian Kropp, chief of research in the HR practice at Gartner, a research and advisory firm in Arlington, Va. "We have a set of people who have never worked from home who are now doing it full time. We also have a set of managers who have never managed people working from home. Under these circumstances, the policies shouldn't be thought of as managing productivity, but more a set of guidelines and norms for people managing and working in a brand-new way."
Kropp said that employers should design their remote-work policies around outcomes, not workflows and processes. "The idea is that employees are expected to accomplish their goals, but how they do it and when they do it is flexible."
Just applying a traditional telecommuting policy to all workers during this unprecedented situation will lead to problems, Kropp said. "Look at your current policy and see what makes sense in this situation, and, if you're not sure, lean toward flexibility and trust as opposed to measuring and monitoring your employees. If employees are not given flexibility, it will be harder for them in their personal lives and they will feel that they are not trusted, which will come back to bite the organization when we come out of this."
Gregory Abrams, an attorney in the Chicago office of Faegre Drinker, said that being flexible with remote workers right now is not only good management practice but necessary, considering the quickly changing legal landscape.
"Clear policies are always advisable, but employers must be ready to adjust quickly as circumstances change," he said, noting that new Department of Labor guidelines could affect remote work. "Policies should clarify that expectations are subject to change quickly and unexpectedly given the current climate."
With flexibility as a guide, there are certain core elements of working from home that should be addressed in a written policy.
Define Eligibility and Duration
First, companies should define whom the policy covers and when it applies, as some workers may still be required to be at the worksite and others may not be able to work remotely. Employers may want to clarify whether the policy is only in effect during the coronavirus-related shutdown.
Kropp advised employers not to promise a definitive date to return to the office or termination of the telework policy due to general uncertainty about the duration of COVID-19.
A remote-work policy should include a clause that it may be discontinued at will and at any time.
Working Expectations
Experts agreed that evaluation of remote workers' performance should focus on work output and completion of objectives rather than on time-based performance.
"There are managers that think their employees are sitting at home watching TV all day instead of in front of their laptop working," Kropp said. "The mistake that these managers make is that they are confusing a remote-work policy with a performance management problem. The same employee who sits in front of the TV all day instead of working was probably already not working to his full potential in the office. That employee is not engaged, or the manager is not effectively providing direction."
An appropriate level of communication between employees and their managers should be spelled out in the policy, including expectations of availability, responsiveness and what modes of communication are to be used.
"When you're not meeting with team members in person, creating processes for collaboration and communication are key," said Rebecca Corliss, vice president of marketing for Owl Labs, a Boston-based telecommunications company. "Consider what types of communication tools work best in situations like manager one-on-ones, team all-hands meetings or employee learning and development activities."
Kropp said that, traditionally, there has been an expectation that video calls and meetings from home would be professional and "office-like." Companies are realizing that can be difficult with what's going on now, he added. "A lot of workers are parents with kids at home or taking care of an older parent. A kid will show up crying during one of your WebEx calls. It's going to happen, so companies are relaxing the constraints around what 'professional' and 'office-like' means. Obviously, you can't walk around in your underwear during a video call, but 'appropriate' rather than 'office-like' is a better way to show understanding of the struggles everyone is experiencing."
Legal Issues to Grant
Remote workers are entitled to the same legal protections that in-office workers have, Corliss said. "Working remotely can present some added challenges that need to be addressed to ensure your company is legally compliant," she noted.
One of the most obvious compliance areas to address with remote employees is recording the hours of workers not exempt from the overtime requirements of the Fair Labor Standards Act (FLSA).
Employers must ensure that hourly employees know "the number of hours they are expected to work, what they should do if they need to work outside of scheduled work hours, how to report time, and how to communicate about unanticipated overtime," Abrams said. "There are legions of cases where nonexempt employees allege that they worked off the clock while at home, and you can see a similar scenario playing out during this crisis."
The policy should be clear that all nonexempt telecommuting employees are required to accurately record all hours worked using the employer's time-keeping system. Hours worked in excess of those scheduled per day and per workweek should require the advance approval of a supervisor. But even if employees are instructed not to work more than 40 hours a week, they still must be paid overtime if they do.
"Set up a process to report hours for hourly remote workers," Corliss said. "To avoid high overtime costs, select times that employees should and shouldn't be working. With clear guidelines, they won't be able to work outside of these hours unless they have permission from their manager. This makes it easier to avoid employees accidentally working more hours than intended."
Abrams added that states have various laws about meal breaks, rest breaks, and how many consecutive hours one can work, and remote work policies need to be mindful of those as well. There could also be Americans with Disabilities Act issues, he said, if accommodations need to be made for remote workers.
Employers are also responsible for remote workers' health and safety. Some companies prefer or require an employee's remote work environment to be approved prior to working remotely.
Injuries sustained by an employee in a home office location and in conjunction with his or her regular work duties are normally covered by a company's workers' compensation policy. Remote employees are responsible for notifying the employer of such injuries as soon as possible.
Technology and Supplies
Remote workers need the right tools to complete their work. Employers need to be clear about what equipment and resources they will provide, whether laptops and videoconferencing tools or payments for office supplies, phone calls, shipping and home-office modifications.
Who pays for home technology is up to the company, but a policy should set expectations to make sure everyone is on the same page, Kropp said. "Both employees and employers must agree on what each is expected to deliver. For example, some companies will pay for high-quality home Wi-Fi, and others are expecting that the worker already have it at home."
For many employees, a laptop and a Wi-Fi connection might not be enough, Corliss said. "You'll also need policies and tools in place for remote team collaboration and communication, like live chat, synchronous screencast recording, live video conferencing and more to ensure technology doesn't get in the way of an effective and meaningful work relationship. Slack and Google Hangouts can act as a virtual water cooler, where employees can discuss the status of a project but also debrief on TV shows, share GIFs and bond over their favorite music."
Companies also should specify the level of tech support they will offer to remote workers and outline what remote employees should do when having technical difficulties.
Employers need to pay extra attention to securing the technology their remote workforce is using. The COVID-19 pandemic is providing plenty of new opportunities for cybercriminals to exploit unsecured technology systems, overworked information technology (IT) staff and panicked employees who are new to working from home.
"In the course of developing communications to employees, examine existing policies closely, such as confidentiality, information security, business continuity, BYOD," said Joseph Lazzarotti, an attorney in the Morristown, N.J., office of Jackson Lewis. "If companies have specific requests, for example if they don't want employees working on public Wi-Fi, then that should be stated in the policy."
SOURCE: Maurer, R. (02 April 2020) "Remote Work Policies Should Now Stress Flexibility" (Web Blog Post). Retrieved from https://www.shrm.org/hr-today/news/hr-news/Pages/Remote-Work-Policies-Should-Now-Stress-Flexibility.aspx