The New Analytics of Workplace Culture
Workplace cultures vary significantly depending on the workplace itself. With new technology and various ways to analyze employees' viewpoints on their workplaces' culture, new ways are being implemented to analyze and measure cultures around different businesses. Read this blog post to learn more about different methods to process employees' thoughts behind their workplace culture.
A business's culture can catalyze or undermine success. Yet the tools available for measuring it—namely, employee surveys and questionnaires—have significant shortcomings. Employee self-reports are often unreliable. The values and beliefs that people say are important to them, for example, are often not reflected in how they actually behave. Moreover, surveys provide static, or at best episodic, snapshots of organizations that are constantly evolving. And they're limited by researchers' tendency to assume that distinctive and idiosyncratic cultures can be neatly categorized into a few common types.
Our research focuses on a new method for assessing and measuring organizational culture. We used big-data processing to mine the ubiquitous "digital traces" of culture in electronic communications, such as emails, Slack messages and Glassdoor reviews. By studying the language employees use in these communications, we can measure how culture actually influences their thoughts and behavior at work.
In one study, two of us partnered with a midsize technology company to assess the degree of cultural fit between employees and their colleagues on the basis of similarity of linguistic style expressed in internal email messages. In a separate study, two of us analyzed the content of Slack messages exchanged among members of nearly 120 software development teams. We examined the diversity of thoughts, ideas and meaning expressed by team members and then measured whether it was beneficial or detrimental to team performance. We also partnered with employer-review website Glassdoor to analyze how employees talk about their organizations' culture in anonymous reviews to examine the effects of cultural diversity on organizational efficiency and innovation.
The explosion of digital trace data such as emails and Slack communications—together with the availability of computational methods that are faster, cheaper and easier to use—has ushered in a new scientific approach to measuring culture. Our computational-lingustics approach is challenging prevailing assumptions in the field of people analytics and revealing novel insights about how managers can harness culture as a strategic resource. We believe that with appropriate measures to safeguard employee privacy and minimize algorithmic bias it holds great promise as a tool for managers grappling with culture issues in their firms.
The Studies
Our recent studies have focused on cultural fit versus adaptability, the pros and cons of fitting in, cognitive diversity and the effects of diversity on organizational performance. Let's look at each in detail.
Fit versus adaptability. When managers think about hiring for cultural fit, they focus almost exclusively on whether candidates reflect the values, norms and behaviors of the team or organization as it currently exists. They often fail to consider cultural adaptability—the ability to rapidly learn and conform to organizational cultural norms as they change over time. In a recent study two of us conducted with Stanford's V. Govind Manian and Christopher Potts, we analyzed how cultural fit and cultural adaptability affected individual performance at a high-tech company by comparing linguistic styles expressed in more than 10 million internal email messages exchanged over five years among 601 employees. For example, we looked at the extent to which an employee used swear words when communicating with colleagues who themselves cursed frequently or used personal pronouns ("we" or "I") that matched those used by her peer group. We also tracked how employees adapted to their peers' cultural conventions over time.
We found, as expected, that a high level of cultural fit led to more promotions, more-favorable performance evaluations, higher bonuses and fewer involuntary departures. Cultural adaptability, however, turned out to be even more important for success. Employees who could quickly adapt to cultural norms as they changed over time were more successful than employees who exhibited high cultural fit when first hired. These cultural "adapters" were better able to maintain fit when cultural norms changed or evolved, which is common in organizations operating in fast-moving, dynamic environments.
These results suggest that the process of cultural alignment does not end at the point of hire. Indeed, our study also found that employees followed distinct enculturation trajectories—at certain times in their tenure demonstrating more cultural fit with colleagues and at other times less. Most eventually adapted to the behavioral norms of their peers, and those who stayed at their company exhibited increasing cultural fit over time. Employees who were eventually terminated were those who had been unable to adapt to the culture. Employees who left voluntarily were the most fascinating: They quickly adapted culturally early in their tenures but drifted out of step later on and were likely to leave the firm once they became cultural outsiders.
To further assess how cultural fit and adaptability affect performance, Berkeley's Jennifer Chatman and Richard Lu and two of us surveyed employees at the same high-tech company to measure value congruence (the extent to which employees' core values and beliefs about a desirable workplace fit with their peers) and perceptual congruence (how well employees can read the "cultural code" by accurately reporting the values held by peers). We found that value congruence is predictive of retention—employees with it are less likely to voluntarily leave the company—but is unrelated to job performance. We found that the opposite is true of perceptual congruence: It is predictive of higher job performance but unrelated to retention. These results suggest that companies striving to foster a stable and committed workforce should focus on hiring candidates who share similar values with current employees. Employers needing people who can quickly assimilate and be productive should pay greater attention to candidates who demonstrate the ability to adapt to new cultural contexts.
The benefits of not fitting in. When might it better to hire a cultural misfit? People who see the world differently and have diverse ideas and perspectives often bring creativity and innovation to an organization. But because of their outsider status, they may struggle to have their ideas recognized by colleagues as legitimate. In a recent study two of us conducted with V. Govind Manian, Christopher Potts, and William Monroe, we compared employees' levels of cultural fit with the extent to which they served as a bridge between otherwise disconnected groups in the firm's internal communication network. For instance, an employee might have connections with colleagues that bridge both the engineering and sales departments, allowing her to access and pass on a greater variety of information and ideas.
Consistent with prior work, we found that cultural fit was, on average, positively associated with career success. The benefits of fitting in culturally were especially great for individuals who served as network bridges. When traversing the boundary between engineering and sales, for example, they could hold their own in technical banter with the former and in customer-oriented discourse with the latter. People who attempted to span boundaries but could not display cultural ambidexterity were especially penalized: They were seen as both cultural outsiders and social outsiders without clear membership in any particular social clique. However, we also identified a set of individuals who benefited from being cultural misfits: those who did not have networks spanning disparate groups but instead had strong connections within a defined social clique. By building trusting social bonds with colleagues, they were able to overcome their outsider status and leverage their distinctiveness. These results suggest that an effective hiring strategy should strive for a portfolio of both conformists—or at least those who can rapidly adapt to a company's changing culture—and cultural misfits.
Cognitive diversity. Proponents of cultural diversity in teams presume that it leads to cognitive diversity; that is, diversity in thoughts and ideas. But the findings about whether cognitive diversity helps or hinders team performance are inconclusive. Part of the problem is that these studies use imperfect proxies for cognitive diversity, such as diversity in demographics, personalities or self-reported beliefs and values. Moreover, this line of research has rarely looked at how diversity is actually expressed in communications and interactions, which is problematic given that team members are sometimes reluctant to share their real feelings and opinions. Finally, cognitive diversity is often assumed to be static, even though we know team dynamics frequently change over a project's life cycle.
In a new study, which two of us conducted with Stanford researchers Katharina Lix and Melissa Valentine, we overcame these challenges by analyzing the content of Slack messages exchanged among team members of 117 remote software-development teams. We identified instances when team members discussing similar topics used diverse meanings, perspectives and styles, and then analyzed the impact of that diversity on performance. For example, in discussions of customer requirements, different interpretations of the desired look and feel of the user interface in some cases led developers to talk past one another and fail to coordinate, but in other cases sparked creative new ideas.
Our results indicate that the performance consequences of cognitive diversity vary as a function of project milestone stages. In the early stages, when the team is defining the problem at hand, diversity lowers the chances of successfully meeting milestones. During middle stages, when the team is most likely to be engaged in ideation, diversity increases the likelihood of team success. Diversity becomes an obstacle again toward the end of a project, when the team is deep into execution.
Cultural diversity and the organization as a whole. We've seen that there are trade-offs associated with diversity in teams, but how does it affect the performance of entire organizations? Conventional wisdom holds that firms must choose between a homogeneous, efficient culture and a diverse, innovative culture. A homogeneous culture improves efficiency and coordination, the theory goes, because employees agree about the norms and beliefs guiding work, but the benefits come at the expense of fewer novel ideas about how to accomplish tasks. In contrast, a heterogeneous culture sacrifices the benefits of consensus in favor of healthy disagreement among employees that can promote adaptability and innovation. The evidence supporting this thinking, however, is scant and inconclusive.
In a recent study, we analyzed the language that employees used when describing their organization's culture (for example, "our culture is collaborative," "our culture is entrepreneurial," and so on) in anonymous reviews of nearly 500 publicly traded companies on Glassdoor. We first measured the level of interpersonal cultural diversity, or disagreement among employees about the norms and beliefs characterizing the organization. We found that interpersonal cultural diversity makes it difficult for employees to coordinate with one another and reduces the organization's efficiency as measured by return on assets.
We then measured the organizations' level of intrapersonal cultural diversity. Those with high intrapersonal cultural diversity had employees with a large number of cultural ideas and beliefs about how to accomplish tasks within the company (measured as the average number of cultural topics that employees discussed in their Glassdoor reviews). For instance, employees at Netflix conceptualized the work culture in terms of autonomy, responsibility, collaboration and intense internal competition. We found that organizations with greater intrapersonal cultural diversity had higher market valuations and produced more and higher-quality intellectual property via patenting, evidence that their employees' diverse ideas about how to do work led them to be more creative and innovative.
This suggests that organizations may be able to resolve the assumed trade-off between efficiency and innovation by encouraging diverse cultural ideas while fostering agreement among employees about the importance of a common set of organizational norms and beliefs. Again, consider Netflix: Although "multicultural" employees contributed to the company's diverse culture and drove innovation, the culture was nonetheless anchored by core shared beliefs, such as the importance of radical transparency and accountability, which help employees coordinate and work efficiently.
Implications for Practice
How can these findings inform leaders' understanding of culture as a tool for improving the performance of employees, teams and the broader organization?
First, managers can increase retention by hiring candidates whose core values and beliefs about a desirable workplace align well with those of current employees. However, too much emphasis on cultural fit can stifle diversity and cause managers to overlook promising candidates with unique perspectives. Hiring managers should look for candidates who demonstrate cultural adaptability, as these employees may be better able to adjust to the inevitable cultural changes that occur as organizations navigate increasingly dynamic markets and an evolving workforce.
Hiring managers should also not overlook cultural misfits. They can be wellsprings of creativity and innovation. But to make sure they flourish inside the organization, managers should consider assigning them to roles in which they are likely to develop strong connections within particular social groups. That's because misfits need the trust and support of colleagues to be seen as quirky innovators rather than outlandish outsiders.
Second, leaders should be mindful that the expression of diverse perspectives in teams needs to be managed. Cognitive diversity is essential for generating novel, innovative solutions to complex problems, especially during the planning and ideation phases of a project. However, the expression of diverse perspectives can quickly become a liability when the team needs to focus on execution and meet looming deadlines. It is during these times that team members have to unify around a common interpretation of the problem and come to agreement about what needs to get done to solve it. Leaders must be adept at switching back and forth, learning when and how to promote the expression of divergent opinions and meanings and when to create a context for convergence.
An important distinction is warranted here. The term "diversity" is often used to connote variation in the demographic makeup of a firm's workforce. This has been particularly the case in recent years, as companies have tackled pernicious problems such as the underrepresentation of women and minorities in decision-making positions in organizations. In our work, we use "cultural diversity" to refer to variation in people's beliefs and normative expectations, irrespective of their demographic composition. As we pointed out earlier, demographic and cultural diversity are related, but a demographically homogenous group may be culturally diverse, and vice versa. Our research on cultural diversity is relevant to but ultimately independent of efforts to increase gender, race and ethnic diversity in firms.
Third, leaders should foster a culture that is diverse yet consensual in order to promote both innovation and efficiency. Such a culture is composed of multicultural employees who each subscribe to a variety of norms and beliefs about how to do work. These diverse ideas help employees excel at complex tasks, such as dreaming up the next groundbreaking innovation. Managers should encourage employees to experiment with different ways of working—extensive collaboration for some tasks, for example, and intense competition for others. At the same time, a culture should also be consensual in that employees agree on a common set of cultural norms—shared understandings—that helps them successfully coordinate with one another. Leaders can signal the importance of these norms during onboarding and in everyday interactions, just as leaders at Netflix do by rewarding employees for sharing their mistakes with colleagues in order to promote beliefs about the value of transparency.
A New Management Tool
Many of the tools we used in these studies are off-the-shelf products, and there is great potential for managers to use them to help solve practical challenges inside organizations. For instance, Stanford Ph.D. candidate Anjali Bhatt is working with two of us to demonstrate how language-based culture measures can be used to anticipate the pain points of post-merger integration. We are studying the merger of three retail banks, and analysis of emails has revealed stark differences in the rates of cultural assimilation among individuals. Such tools can be used diagnostically to assess the cultural alignment between firms during premerger due diligence, as well as prescriptively during integration to identify where and how to focus managerial interventions.
Yet the accessibility of these tools also raises important ethical concerns. In our work, we maintain strict employee confidentiality, meaning that neither we nor the organization is able to link any employee to any specific communication used in our studies. We also strongly advise against using these tools to select, reward or punish individual employees and teams, for at least four reasons: Accurately predicting individual and team performance is considerably more challenging than estimating average effects for broad types of individuals and teams; culture is only one of many factors influencing individual and team performance in organizations; algorithmic predictions often create a false sense of certainty in managers; and finally, giving any algorithm undue weight can have unintended consequences—for instance, exacerbating human biases that negatively affect women and members of underrepresented social groups.
Algorithms make estimates, but it is ultimately humans' responsibility to make informed judgments using them. Managers must be vigilant about keeping metadata anonymous and must regularly audit algorithmic decision-making for bias to ensure that the use of language-based tools does not have unintended adverse consequences on culture itself—for instance, by breeding employee distrust.
These important ethical questions notwithstanding, we believe that these tools will continue to generate insights that allow managers to finally manage the culture as a strategic resource, and ultimately lead to more culturally diverse and inclusive teams and organizations.
Matthew Corritore is an assistant professor of strategy and organization at McGill's Desautels Faculty of Management. Amir Goldberg is an associate professor of organizational behavior at Stanford's Graduate School of Business. Sameer B. Srivastava is an associate professor and the Harold Furst Chair in Management Philosophy and Values at the University of California, Berkeley's Haas School of Business. He and Goldberg codirect the Berkeley-Stanford Computational Culture Lab.
This article is reprinted from Harvard Business Review with permission. ©2019. All rights reserved.
SOURCE: Corritore, M.; Goldberg, A.; Srivastava, S. (07 January 2020) "The New Analytics of Workplace Culture" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/the-new-analytics-of-workplace-culture.aspx
Need a Morale Booster? Therapy Dogs Can Help
Work is stressful by itself, but with added layers of stress from having to process outside emotions and hardships, it becomes difficult to give the best service that is should be offered. Allowing a therapy dog in the workplace can help employees reduce stress, and become calmer throughout the day. Read this blog post to learn more about how therapy dogs in the workplace can be beneficial to the work environment.
The Evergreen Health services facility in Buffalo, N.Y., is buzzing with anticipation several days before Stella arrives. Some staff even seek out Matthew Sydor, the director of housing and retention services at the health care agency, days ahead of time to confirm her arrival. Others have requested a calendar invite from him so they can plan their day around her visit.
The middle-aged golden retriever is a certified therapy dog, and her visits are a hit with employees.
Therapy dogs are common in what Sydor describes as the "helping" fields. Bringing therapy dogs into any workplace, he says, is an opportunity to break up the day for employees and give them something to look forward to at no cost.
"At our agency we work with many people who have gone through traumatic experiences. All work is stressful, but layers of stress are added when you are helping others to process their own emotions and hardships," he explained. "The compounding stress makes it difficult to best serve our patients at a high level. Having a therapy dog in the building helps staff to participate in a self-care activity."
Stella's owner, Krista Vince Garland, Ph.D., is an associate professor of exceptional learning at Buffalo State College. The pair specializes in animal-assisted interventions in educational settings but are receiving an increasing number of requests to visit local workplaces.
"Everyone who visits Stella has the same comments: 'I feel so much better. She's brightened my day,' " Vince Garland said. "Aetna also did a study in 2017 that shows tremendous promise on the benefits of therapy dogs in the workplace. Employee sick days were down, morale was up and interactions among co-workers increased."
Having dogs in the workplace isn't a new concept, but it's a concept that hasn't been widely embraced. Only about 11 percent of companies in the United States allow pets in the office, according to the Society for Human Resource Management Employee Benefits 2019 survey.
Paul LeBlanc is the founder and CEO of Zogics, a Massachusetts-based fitness, cleaning and body care company. S'Bu, a Rhodesian Ridgeback, was LeBlanc's first employee.
"When you look at [Inc. magazine's] list of best places to work, 47 percent of those companies allow dogs in the office," he said. "Studies have shown that petting a dog for five to 10 minutes causes a reduction of blood pressure and the dogs have calming effects on people."
But not all employers are ready to go "all-in" like Zogics. For these workplaces, therapy dogs are a viable alternative. Sydor and Vince Garland share insight into what has made their partnership successful and offer tips any business can use.
Communicate. No one likes a surprise, even if it's a friendly four-legged canine. Talk with staff first to address any questions or concerns. Arrange a quick meet-and-greet to give the dog a chance to get used to the environment before interacting with employees.
"This also gives the administrator a chance to touch the dog and make sure it is clean and well-groomed. Therapy dogs are required to have a bath within 24 hours of any visit," Vince Garland said.
Distributing a fact sheet helps with the introduction of a therapy team. Once a visit is established, send a reminder a day prior.
"I suggest telling your staff why you're bringing therapy dogs in and advertise it as much as possible to employees," Sydor said.
Verify credentials. Ask about the team's training. Certifications are not required of service dogs and emotional support dogs. However, therapy dogs must complete training. Stella is an American Kennel Club (AKC) Good Citizen and has earned certifications through Therapy Dogs International and the SPCA Erie County Paws for Love.
"There's a lot of fake information out there. If someone is shy about sharing that information, that's a clue that more discussion is needed," Vince Garland said.
Sydor added, "We found Krista and Stella through Erie County SPCA's Paws for Love, and it has been a great partnership. They hold liability insurance for any damage that may occur. All dogs are well-trained, and the handlers are consistent with how they conduct their work."
Acknowledge cultural differences. "Care must be taken to respect cultural sensitivities," Vince Garland said. "Some cultures regard dogs as unclean, others view dogs as nuisances, while others believe spirits may appear as animals."
Designate a point of contact. This person handles scheduling visits, interacting with the team, and confirming vaccinations and liability insurance. The ideal individual works well with people and is animal-friendly, according to Vince Garland.
Create a space for the team. Not everyone will embrace dogs. Designating space separate from the main workflow respects the space of those employees who choose not to interact with the dog.
"Evergreen has given us a room for visits," Vince Garland said. "By being out of the flow, we're able to meet with staff who are interested without making others feel uncomfortable."
SOURCE: Navarra, K. (13 January 2020) "Need a Morale Booster? Therapy Dogs Can Help" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/need-a-morale-booster-therapy-dogs-can-help.aspx
Marijuana and the Workplace: What’s New for 2020?
With various states legalizing the medical use and recreational use of marijuana, employers are starting to question the exceptions regarding drug-testing and the marijuana laws towards new hires and current employees. Though there are several questions and concerns being raised, this may become a new trend throughout different states. Read this blog post to learn more about what employers are doing with new state laws.
Employers have been grappling with confusing marijuana laws for years—and the rules are getting tougher to navigate as more states add employment protections.
Kathryn Russo, an attorney with Jackson Lewis in Melville, N.Y., feels that there are so many new developments with drug-testing and marijuana laws, it's hard for employers to keep up. Starting in 2020, some locations will prohibit employers from screening new hires for marijuana or refusing to hire applicants based on a failed pre-employment marijuana screen—though there are exceptions for safety-sensitive positions. This may be the new trend, Russo said.
Here's what employers need to know about the changing landscape for weed and the workplace in the year ahead.
Legalizing Recreational Use
Although all marijuana use is still illegal under federal law, at least 33 states allow medical use, and 11 of those states and Washington, D.C., also allow recreational use.
On Jan. 1, Illinois became the 11th state to legalize recreational marijuana use, and employers are still figuring out what the new law means for the workplace.
"When the act was initially passed, employers expressed concern that they might have to prove an employee was under the influence of cannabis when an employee failed a drug test," said Jennifer Colvin and Michael Furlong, attorneys with Ogletree Deakins in Chicago. "Employers also expressed concern regarding whether they could conduct random drug tests."
So Illinois lawmakers approved an amendment clarifying that employers can conduct reasonable drug and alcohol tests, including random tests, and may discipline, fire or refuse to hire a worker who fails.
"Despite this employer-friendly amendment, workplace drug policies still must be both reasonable and nondiscriminatory," Colvin and Furlong said. Notably, the amendment didn't define a "reasonable" policy.
More states are expected to approve—or attempt to approve—recreational cannabis use in 2020. New York Gov. Andrew Cuomo said he's making it a priority.
"This year, let's work with our neighbors New Jersey, Connecticut and Pennsylvania to coordinate a safe and fair system, and let's legalize adult use of marijuana," he said in his 2020 State of the State address on Jan. 8.
Limiting Pre-Employment Drug Screens
Another big trend that's taking shape in 2020 involves limits on pre-employment marijuana screening. On Jan. 1, a Nevada law took effect barring employers from considering a pre-employment marijuana test result, and beginning May 10, a New York City law will prohibit employers from conducting pre-employment marijuana tests. Both laws have exceptions for safety-sensitive positions and jobs regulated by federal programs that require drug testing.
Even states that allow employers to refuse to hire job applicants who fail drug tests may require employers to take specific steps before rescinding a conditional job offer.
Some states have laws prohibiting employers from discriminating against workers who use lawful products while they're off duty. Such laws were enacted to protect tobacco users from discrimination, said Jennifer Mora, an attorney with Seyfarth Shaw in Los Angeles, but whether those laws protect off-duty use of a product that remains illegal under federal law is questionable.
Protection for Registered Medical Patients
More states are also passing laws that prohibit employers from discriminating against employees because they are authorized medical-marijuana patients or caregivers of patients.
"In those states, employers may be required to engage in the interactive process to accommodate the use of medicinal marijuana off duty," said Anne-Marie Welch, an attorney with Clark Hill in Birmingham, Mich.
A reasonable accommodation may not be available for a given job, but employers should make a good-faith effort to find one, such as granting time off or altering shifts while the worker is medicated.
Employers should note that they don't have to accommodate on-the-job use or intoxication, even in states where they can't fire or refuse to hire a worker simply for being a registered medical-marijuana user.
But determining how to proceed if an employee has used medical marijuana varies by state, explained David Morrison, an attorney with Goldberg Kohn in Chicago. For instance, in Arkansas, employers may discharge employees based on a good-faith belief that the employee was impaired by medical marijuana on company property or during work hours, but a positive drug test alone is not sufficient grounds for a good-faith belief. The employer also needs to observe something in the worker's conduct, behavior or appearance that indicates intoxication or receive information from a reliable person about the worker's impairment. A positive drug test, however, may be sufficient to bar an employee from working in safety-sensitive positions, Morrison noted.
Alaska, Arizona, Delaware and Minnesota state laws also prohibit employment discrimination against qualified medical-marijuana users.
In contrast, employers in some states, such as California, Colorado, Michigan, Montana, Ohio and Oregon can fire employees who test positive for marijuana, even if the use was off-duty and for a medical condition.
"While many states address these issues in their statutes, state courts also have weighed in," Morrison said. In New Jersey, an employer did not have to waive a post-accident drug test for an employee who was a registered medical-marijuana user.
Although marijuana use is not covered by the federal Americans with Disabilities Act, employees may be able to bring state-law discrimination claims. Courts in Massachusetts and Rhode Island, for example, have allowed such claims in recent years, though older court decisions in California and Colorado dismissed state-law claims as pre-empted by federal laws prohibiting marijuana use.
Consider the Job and Business
So what should employers do in light of these differing laws? "You have to consider the needs of the business, in addition to any applicable state laws," Welch said. Federal contractors, drivers and workers in other safety-sensitive positions may be subject to drug-free workplace laws, whereas general office workers may not. Employers that are struggling to fill vacant positions might want to relax their standards.
"More and more employers appear to be treating marijuana use like alcohol use and allowing recreational off-duty use," Welch observed.
SOURCE: Piazza-Nagele, L. (17 January 2020) "Marijuana and the Workplace: What’s New for 2020?" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/legal-and-compliance/state-and-local-updates/Pages/Marijuana-and-the-Workplace-New-for-2020.aspx
Starbucks Unveils Mental Health Initiatives for Employees
Did you know: One in Five United States adults experiences mental illness. According to the World Health Organization, work is good for mental health but a negative environment can lead to physical and mental health issues. Starbucks has announced that they have launched an app for its employees to improve their mental health along with their anxiety and stress. Read this blog post to learn more about how Starbucks is creating mental health benefits for their employees.
Starbucks has launched an app to help its employees improve their mental health and deal with anxiety and stress.
The global coffee company also announced it will be retooling its employee assistance program based on feedback from employees and mental health experts. It plans to offer training to its U.S. and Canada store managers on how to support workers who experience a mental health issue, substance-abuse problem or other crisis.
Every year, one in five U.S. adults experience mental illness and one in 25 experience serious mental illness, according to the National Alliance on Mental Health. And more people are killing themselves in the workplace, according to the Washington Post. The number of such suicides increased 11 percent between 2017 and 2018. Employers, the Post reported, "are struggling with how to respond."
Business Insider reported that some Starbucks employees it interviewed about the initiatives said much of their stress comes from the company cutting back on hours and relying on employees to work longer shifts with fewer people and no pay increase.
The World Health Organization points out that while work is good for mental health, a negative environment can lead to physical and mental health problems. Harassment and bullying at work, for example, can have "a substantial adverse impact on mental health," it said. There are things employers can do, though, to promote mental health in the workplace; such actions may also promote productivity.
SHRM Online has collected the following articles on this topic from its archives and other sources.
Starbucks Announcements Its Commitment to Supporting Employees' Mental Health
The company released a statement Jan. 6 about additions to its employee benefits and resources that support mental wellness.
"Our work ahead will continue to be rooted in listening, learning and taking bold actions," it said. In the past, that has included tackling topics such as loneliness, vulnerability "and the power of small acts and conversation to strengthen human connection."
(Starbucks)
Mental Illness and the Workplace
Companies are ramping up their efforts to navigate the mental health epidemic. Suicide rates nationally are climbing, workers' stress and depression levels are rising, and addiction—especially to opioids—continues to bedevil employers. Such conditions are driving up health care costs at double the rate of illnesses overall, according to Aetna Behavioral Health.
Starting workplace conversations about behavioral health is challenging because such conditions often are seen as a personal failing rather than a medical condition.
(SHRM Online)
Research: People Want Their Employers to Talk About Mental Health
Mental health is becoming the next frontier of diversity and inclusion, and employees want their companies to address it. Despite the fact that more than 200 million workdays are lost due to mental health conditions each year—$16.8 billion in employee productivity—mental health remains a taboo subject.
(Harvard Business Review)
Viewpoint: Addressing Mental Health in the Workplace
Companies are reassessing their behavioral health needs and are looking to their health care partners for creative, integrated and holistic solutions. Many are turning to employee assistance programs for help.
(Benefits Pro)
4 Things to Know About Mental Health at Work
Kelly Greenwood graduated summa cum laude from Duke University with degrees in psychology and Spanish. She holds a master's degree in business from Northwestern University's Kellogg School of Management, contributes to Forbes magazine and is editor-at-large for Mental Health at Work, a blog on Thrive Global.
She also is someone who has managed generalized anxiety disorder since she was a young girl. It twice led to debilitating depression. She shared four things she wishes she had known earlier in her life about mental health.
(SHRM Online)
Employers Urged to Find New Ways to Address Workers' Mental Health
An estimated 8 in 10 workers with a mental health condition don't get treatment because of the shame and stigma associated with it, according to the National Alliance on Mental Illness. As a result, the pressure is growing on employers to adopt better strategies for dealing with mental health.
(Kaiser Health News)
Mental Health
Depression, bipolar disorder, anxiety disorders and other mental health impairments can rise to the level of disabilities under the Americans with Disabilities Act that requires employers to make accommodations for workers with such conditions.
This resource center can help employers understand their obligations and address their workers' mental health.
(SHRM Resource Spotlight)
SOURCE: Gurchiek, k. (14 January 2020) "Starbucks Unveils Mental Health Initiatives for Employees" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/starbucks-unveils-mental-health-initiatives-for-employees.aspx
Saver's Credit Can Spur Retirement Plan Contributions
Many employees are not aware of employer-sponsored retirement accounts, or individual retirement accounts (IRA), which could be costing those more money. Tax season is the best time for employers to educate their employees on how they can earn extra tax credits through their 401(k) plans. Read this blog post to learn more about how to educate employees on what retirement account opportunities that are available to them.
Many workers don't know that they're eligible for a tax credit by saving in an employer-sponsored retirement plan or individual retirement account (IRA)—and that could be costing them money. Tax time, however, is prime time for employers to inform eligible workers about the saver's credit.
The Retirement Savings Contributions Credit, or saver's credit, is available to low- and moderate-income workers who are putting money aside for retirement. But only 29 percent of workers with annual household income below $50,000 know about the saver's credit, according to the nonprofit Transamerica Center for Retirement Studies in Los Angeles, which surveyed nearly 6,000 employees last fall.
"Tax season is an ideal time to tell eligible workers how they can earn extra tax credits by saving through their employer's 401(k) or a similar retirement plan," said Catherine Collinson, president of the Transamerica Center. "The saver's credit might just be the motivator for those not yet saving for retirement to get started."
Scott Spann, a senior financial planner with Financial Finesse, a provider of workplace financial wellness programs in Charleston, S.C., said, "Saving for retirement is a challenge for many households in America. Special tax incentives help make the process of saving easier."
What Is the Saver's Credit?
Like other tax credits, the saver's credit can increase a taxpayer's refund or reduce the tax owed. Here's how it works:
The amount of the credit is a maximum of 50 percent of an employee's retirement plan contributions up to $2,000 (or $4,000 for married couples filing jointly), depending on the filer's adjusted gross income as reported on Form 1040. Consequently, the maximum saver's credit is $1,000 (or $2,000 for married couples filing jointly).
The saver's credit "is different than a tax deduction due to the fact that a tax credit is a dollar-for-dollar reduction of your gross tax liability, which is the total amount of taxes you're responsible for paying before any credits are applied," Spann explained.
The saver's credit also differs from the separate tax benefit of contributing pretax dollars to a qualified retirement plan, such as an employer-sponsored 401(k) or an IRA. "Many eligible retirement savers may be confusing these two incentives because the notion of a double tax benefit"—pretax contributions and an additional tax credit—"seems too good to be true," Collinson said.
Who Can Claim the Saver's Credit?
The credit is available to workers age 18 or older who have contributed to a company-sponsored retirement plan or an IRA in the past year and meet the income requirements shown in the table below. The filer cannot be a full-time student nor claimed as a dependent on another person's tax return.
Income Caps for Tax Years 2019 and 2020
For eligible workers, the amount of the available tax credit diminishes as adjusted gross income (AGI) rises. To help preserve the credit's value, income thresholds are adjusted annually to keep pace with inflation. Below are the AGI caps for tax year 2019 (for tax returns filed this year) and 2020 (for returns filed next year).
| 2019 Saver's Credit | |||
| Tax Credit Rate | Single Filers and Married, Filing Separately* | Married, Filing Jointly | Heads of Household |
| 50% of contribution | AGI not more than - $19,250 | AGI not more than $38,500 | AGI not more than $28,875 |
| 20% of contribution | AGI of $19,251 - $20,750 | AGI of $38,501 - $41,500 | AGI of $28,876 - $31,125 |
| 10% of contribution | AGI of $20,751- $32,000 | AGI of $41,501 - $64,000 | AGI of $31,126 - $48,000 |
| No credit | AGI more than $32,000 | AGI more than $64,000 | AGI more than $48,000 |
| 2020 Saver's Credit | |||
| Tax Credit Rate | Single Filers and Married, Filing Separately* | Married, Filing Jointly | Heads of Household |
| 50% of contribution | AGI not more than $19,500 | AGI not more than $39,000 | AGI not more than $29,250 |
| 20% of contribution | AGI of $19,501 - $21,250 | AGI of $39,001 - $42,500 | AGI of $29,251 - $31,875 |
| 10% of contribution | AGI of $21,251 - $32,500 | AGI of $42,501 - $65,000 | AGI of $31,876 - $48,750 |
| No credit | AGI more than $32,500 | AGI more than $65,000 | AGI more than $48,750 |
Deadlines for Retirement Contributions
"You must make eligible contributions to your employer-sponsored retirement plan or IRA for the tax year for which you are claiming the income tax credit," Spann said.
While 401(k) contributions for a tax year can be made only up to Dec. 31, those who are eligible but did not save last year can still make a tax year 2019 IRA contribution until April 15, 2020.
Filing for the Saver's Credit
Employers can advise eligible workers to take the following steps to claim the saver's credit, according to the Transamerica Center:
- If using tax-preparation software, including those programs offered through the IRS Free File program, use Form 1040 or Form 1040NR for nonresident aliens. Answer questions about the saver's credit, which may be referred to as the Retirement Savings Contributions Credit or the Credit for Qualified Retirement Savings Contributions.
- If preparing tax returns manually, complete Form 8880, Credit for Qualified Retirement Savings Contributions, to determine your exact credit rate and amount. Then transfer the amount to the designated line on Form 1040 (Schedule 3) or Form 1040NR.
- If using a professional tax preparer, ask about the saver's credit.
Financial planners advise having tax refunds directly deposited into an IRA to further boost your retirement savings.
The Transamerica Center has additional information, in English and Spanish, on its Saver's Credit webpage, along with a downloadable fact sheet.
IRS Free File Program Is Available
Another potentially overlooked opportunity for workers is the IRS Free File program, which offers federal income tax preparation software at no charge to tax filers with an AGI of $69,000 or less.
Free File opened on Jan. 10, 2020, for the preparation of 2019 tax returns. Eligible taxpayers can do their taxes now, and the Free File provider will submit the return once the IRS officially opens the tax filing season on Jan. 27.
For 2020, the Free File partners are: 1040Now, Inc., ezTaxReturn.com (English and Spanish), FileYourTaxes.com, Free tax Returns.com, H&R Block, Intuit, On-Line Taxes, Inc., Tax ACT, TaxHawk, Inc. and TaxSlayer (English and Spanish).
Here's how Free File works:
- Taxpayers go to IRS.gov/FreeFile to see all Free File options.
- They browse each of the offers or use a "look up" tool to help find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if the taxpayer's adjusted gross income was $69,000 or less, they will find at least one free product to use.
- They select a provider and follow the links to their web page to begin a tax return.
- They complete and e-File a tax return if they have all the income and deduction records they need. The fastest way to get a refund is by filing electronically and selecting direct deposit. For taxes owed, they can use direct pay or electronic options.
Many Free File online products also offer free state tax preparation, although some charge a state fee. Taxpayers should read each provider's information carefully.
"The IRS has worked to improve the program for this year, and we encourage taxpayers to visit IRS.gov, and consider using the Free File option to get a head start on tax season," said IRS Commissioner Chuck Rettig.
Nearly 57 million returns have been filed through the Free File program since it began in 2003, and 70 percent of U.S. taxpayers (about 100 million people) are eligible for Free File, according to the IRS.
SOURCE: Miller, S. (10 January 2020) "Saver's Credit Can Spur Retirement Plan Contributions" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/remind-low-wage-earners-about-savers-credit.aspx
The Saxon Advisor - January 2020
Compliance Check
what you need to know
Form W-2s are due January 31, 2020. January 31 is the deadline for employers to distribute Form W-2s to employees. Large employers – employers who have more than 250 W-2s – must include the aggregate cost of health coverage.
Form 1099-Rs are due January 31, 2020. Employers must distribute Form 1099-Rs to recipients of 2019 distributions.
Form 945 Distributions. Form 945s must be distributed to plan participants by January 31, 2020, for 2019 non payroll withholding of deposits if they were not made on time and in full to pay all taxes that are due.
Section 6055/6056 Reporting. Employers must file Forms 1094-B and 1095-B, and Forms 1094-C and 1095-C with the IRS by February 28, 2020 if they are filed on paper.
Form 1099-R Paper Filing. Employers must file Form 1099-R with the IRS by February 28, 2020 if they are filed on paper.
CMS Medicare Part D Disclosure. Employers that provide prescription drug coverage must disclose to the CMS whether the plan’s prescription drug coverage is creditable or non-creditable.
Summary of Material Modifications Distribution. Employers who offer a group health plan that is subject to ERISA must distribute a SMM for plan changes that were adopted at the beginning of the year that are material reductions in plan benefits or services
What Employers Should Know About the SECURE Act
Join us for this interactive and educational Saxon U seminar with Todd Yawit, Director of Employer-Sponsored Retirement Plans at Saxon Financial Services, as we discuss what the SECURE Act is and how it impacts your employer-sponsored retirement plan.
Traditional IRA, Roth IRA, 401(k), 403(b): What's the Difference?
Bringing the knowledge of our in-house advisors right to you...
If you haven’t begun saving for retirement yet, don’t be discouraged. Whether you begin through an employer sponsored plan like a 401(k) or 403(b) or you begin a Traditional or Roth IRA that will allow you to grow earnings from investments through tax deferral, it is never too late or too early to begin planning.
“A major trend we see is that if people don’t have an advisor to meet with, they tend to invest too conservatively, because they are afraid of making a mistake,” said Kevin Hagerty, a Financial Advisor at Saxon Financial.
Fresh Brew Featuring Scott Langhorne
“Pay close attention to detail.”
This month’s Fresh Brew features Scott Langhorne, an Account Manager at Saxon.
Scott’s favorite brew is Bud Light. His favorite local spot to grab his favorite brew is wherever his friends and family are.
Scott’s favorite snack to enjoy with his brew is wings.
This Month's #CommunityStrong:
American Heart Association Heart Mini Fundraising
This January, February & March, the Saxon team and their families will be teaming up to raise money for the American Heart Association Heart Mini! They will be hosting a Happy Hour at Fretboard Brewing Company Wednesday, January 29, from 4 p.m. - 7 p.m. to raise money.
Are you prepared for retirement?
Saxon creates strategies that are built around you and your vision for the future. The key is to take the first step of reaching out to a professional and then let us guide you along the path to a confident future.
Monthly compliance alerts, educational articles and events
- courtesy of Saxon Financial Advisors.
Organizations Will Need Data Analytics to Survive
Did you know: the use of data analytics can improve a company's overall performance. Data analytics can differentiate those companies that are going to be disrupted. Implementing technology is simple, but it is HR's responsibility for managing the technological change. Read this blog post to learn more about why data analytics is becoming a need for organizations.
SEATTLE—HR professionals play a critical role in getting their organizations to use data and analytics strategically to compete more effectively.
Jack Phillips, CEO and co-founder of the Portland, Ore.-based International Institute for Analytics, a research and benchmarking services firm for the analytics industry, urged attendees at the Society for Human Resource Management People Analytics conference on Jan. 14 to get focused on data.
"It's proven that the use of data analytics improves overall company performance," he said. "Organizations invest in many things, but budget dedicated to data and analytics is limited. It needs to be a top priority. The broad use of data and analytics will differentiate the companies [from those] that eventually are disrupted and disappear from the survivors."
And HR is key to the success of winning with data, from sourcing the necessary talent and applying analytics to HR functions to leading change management when adopting a data-driven mindset across the organization.
Implementing the technology is the easy part, Phillips said. Getting your workforce to truly adopt data analytics across the organization is harder. Ultimately HR is responsible for managing that transformational change.
Data Analytics Overview
The data analytics market is in full growth mode, accelerated by the explosion of cloud computing. The technology environment is moving so quickly that it is very hard to keep track of the increasing array and complexity of analytics technology available, Phillips said. But the top-performing companies are investing heavily in data analytics.
"If you are not paying attention through expenditure and [acquisition of] talent you will be behind," he said.
Phillips outlined a maturity model showing the sophistication levels of an organization's approach to analytics. Employers aiming to improve their data analytics function first need to assess where they currently are. Phillips' model includes those at the bottom stages who don't use any data to make business decisions and companies where data analytics may exist in silos without a structure for collaborating across business units.
Most employers likely exist in one of these stages, while many enterprise-level organizations are in the higher aspirational stages where the value of analytics is expressed, or they are data-oriented and use analytics with some internal coordination.
"Only one company we've studied [Amazon] has achieved near perfection as a data-driven company," Phillips said. "You don't come to a meeting without data [at Amazon]. No gut-based decision-making is allowed. Everything is driven by data."
Succeeding with Data
According to Phillips, the key ingredients needed to achieve higher levels of maturity as a data-driven organization include:
- People with data analytics skills.
- Organizational structure, processes and technologies in place for those people.
- Use of the data. "The highest performing companies have superior capabilities on the supply side and business leaders who use the insights that the data analytics teams are providing to drive the business forward," he said.
Another model he presented breaks down the elements that must be in alignment for companies to succeed with their analytics initiatives. "Without alignment, organizations run the risk of poor or limited results," he said. "To make real progress and become a data-driven organization, the capabilities and assets of these five elements must evolve and mature." The five elements are:
Data. It may seem obvious, but to provide meaningful analytics, data must be high quality, organized, reliable, integrated, and accessible. The raw material must be right.
Coordination. Companies must advocate a single and consistent perspective for analytics across the organization.
Leadership. Senior leadership should fully embrace analytics and lead company culture toward data-driven decision-making.
Targets. The organization should prioritize business targets against which it will apply its analytics. "Data and analytics without a targeted reason for it is worthless," he said.
Talent. Organizations require analytical talent that covers a range of skills from accomplished data scientists to rank-and-file employees who embrace being more analytical in how they do their job.
Employers must also understand rapidly emerging analytical techniques and technologies, Phillips said. The widespread adoption of open source tools has resulted in an explosion of analytical methods and techniques, and with the advent of big data, machine learning and cloud computing, creating an effective technology strategy for analytics is a critical ingredient for success.
HR's Role
Human resource professionals play an important part in getting their organizations up to speed and competitive with analytics, including sourcing the right qualified talent—a difficult task in a labor market lacking the requisite skills—and investing in data analytics for its own functions.
"HR lags behind other business functions when it comes to using data analytics," Phillips said. "Sales, marketing and finance tend to outpace other parts of the business."
HR should be assertive with leadership when advising on budget and staffing for data analytics positions and in creating and managing a workplace culture that values innovation.
"The top performing companies treat their data analytics function as a product, with design thinking and intentional product management," Phillips said.
One positive for employers who may be overwhelmed by implementing a data analytics function is that best practices are easily transferable. "There are many things that you can just copy," he said.
SOURCE: Maurer, R. (15 January 2020) "Organizations Will Need Data Analytics to Survive" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/organizations-will-need-data-analytics-to-survive.aspx
Beware the Legal Pitfalls of Managing Unpaid Interns
With many college students and recent graduates trying to start a career, their first step to getting introduced to what their degree can hold for them is working as an intern to learn different roles and to learn how a business operates. The U.S. Department of Labor (DOL) has raised concerns regarding what makes an intern an "employee" or a "trainee". Read this blog post to learn more about the guidelines that pertain to bringing an intern or a "trainee" into the workplace.
A college student or recent graduate is eager to make an impression. So is the early-in-career professional who’s been laid off by another company. You placed them both in an unpaid internship program because you want to give your company a chance to evaluate them as future employees. What could go wrong?
At job sites across the United States, interns not paid or earning less than minimum wage are given all sorts of jobs: answering phones, loading paper in the copiers, managing company social media campaigns.
But, federal guidelines released by the U.S. Department of Labor (DOL) in April 2010 raise concerns that employers might decide to provide fewer internship opportunities. The guidelines, which apply to “for-profit” private-sector employers, define what makes an intern an “employee” as opposed to a “trainee.” If a court or government agency decides that interns’ work qualifies them as employees, the company could face penalties that include owing back pay; taxes not withheld; Social Security; unemployment benefits; interest; attorneys’ fees; plus liquidated damages, defined by federal law as double the unpaid wages.
Six Standards
The DOL’s Wage and Hour Division lists six factors to use in determining whether an intern is a trainee or an employee under the Fair Labor Standards Act (FLSA).
- The training, even though it includes actual operation of the facilities of the employer, is similar to what would be given in a vocational school or other educational institution.
- The training is for the benefit of the trainees.
- The trainees do not displace regular employees, but instead work under their close observation.
- The employer that provides the training derives no immediate advantage from the activities of the trainees, and on occasion the employer’s operations may actually be impeded.
- The trainees are not necessarily entitled to a job at the conclusion of the training period.
- The employer and the trainees understand that the trainees are not entitled to wages for the time spent in training.
If all of the factors listed above are met, then the worker is a “trainee,” an employment relationship does not exist under the FLSA, and the act’s minimum wage and overtime provisions do not apply to the worker.
Federal and state labor departments are cracking down on unpaid internships “due to a concern that paid jobs are being displaced and to increase payroll tax revenues,” says employment lawyer Terence P. McCourt of Greenberg Traurig in Boston.
With so much at stake, it’s a good time for HR professionals to review their companies’ internship policies to ensure that they are in compliance with government requirements.
Legal Exposure
The DOL standards state that most nonexempt individuals “suffered or permitted” to work must be compensated for the services they perform for an employer unless certain conditions are met. In general:
- The internship program must be similar to training that would be given in an educational environment, such as a college, university or trade school.
- The intern and the employer must both understand that the intern is not entitled to wages.
- The company must receive no immediate advantage from the internship and in fact may find its operations disrupted by the training effort.
- The intern must not take the job of regular employees.
Unpaid Programs on the Rise
Despite the risks, unpaid internships appear to be on the rise. In a May 2010 survey by Internships.com, an online clearinghouse for companies and would-be interns, two-thirds of the more than 300 college and university career center professionals who responded said that overall internship postings on their campuses increased from 2009 to 2010. However, more campuses reported lower numbers of paid internships than those reporting increases.
“Unpaid internships do appear to be on the rise,” says attorney James M. Coleman of the labor and employment law firm Constangy, Brooks & Smith LLP in Fairfax, Va. Whether the rise is in “reaction to the difficult economy and an effort to save on labor costs is not completely clear.”
Companies can protect themselves by having the college intern ask his professor for academic credit for the internship. Employers should coordinate with an intern’s school to determine requirements mandated by the educational institution, experts say.
An internship is more likely to be viewed as training if it provides interns with skills that can be used in multiple settings, as opposed to skills that are specific to one employer’s work environment.
Interns should be “allowed to observe aspects of the employer’s operations, such as job shadowing, without needing to perform services at all times,” McCourt says. He adds that an intern should not supervise regular employees or other interns, and the company should define the arrangement clearly and in writing, specifying that there is no expectation of a job offer at the conclusion of the internship.
HR professionals and lawyers say it may be useful for companies to keep written records of what an intern expects to gain from an unpaid program. Attorney Oscar Michelen of Sandback & Michelen in New York City suggests preserving memos, e-mails and other documentation covering what each intern does, such as attending scheduled training sessions and luncheon meetings with regular employees, and what type of training and supervision will be provided.
SOURCE: Taylor, S. (17 January 2020). "Beware the Legal Pitfalls of Managing Unpaid Interns" (Web Blog Post). Retrieved from https://www.shrm.org/hr-today/news/hr-news/pages/managingunpaidinterns.aspx
New employee retention tool has four legs and goes 'woof'
The term "a dog is a human's best friend" can get thrown around, but what if dogs lead to increased productivity and less stress? Read this blog post to learn how allowing dogs at work can benefit employee productivity.
There are so many reasons to allow dogs in the workplace, from increasing production and morale to decreasing absences.
And while financial institutions have not traditionally offered such an employee benefit, there are plenty of banks and fintechs that are leading the way in the industry.
For example, JPMorgan Chase not only allows dogs into its branches, but it also hands out dog treats. Wells Fargo is another company with a great pet policy. In fact, Wells Fargo has a host of dogs that have been part of various offices throughout the years.
Other companies are going the extra mile, and providing dog parks on-site or dedicated walking areas for their four-legged colleagues. The online small-business lender Kabbage is well known for its laid-back work culture, including casual dress code, beer on tap and a dog-friendly policy.
Perhaps one of the most pet-friendly companies is Redtail Technology, which is named after the founder Brian McLaughlin’s dog. Not only does the company encourage people to bring their dogs to work, it also has a dog park, and a Slack channel for employees to message each other when they’re about to take their dog out for a play.
Still skeptical about this approach? Here are five scientifically backed reasons that allowing dogs into the office can benefit employees.
First, allowing people to bring their pet along with them to work actually helps to decrease stress for not just them, but everyone in the workspace. Washington State University found that petting a dog for just 10 minutes can help to reduce stress.
Playing with or petting a dog can increase the levels of oxytocin, a stress-reducing hormone; and decrease the levels of cortisol, a stress hormone.
A team of researchers at Virginia Commonwealth University carried out a study that compared three groups of employees: those who brought their dogs to work, those who had dogs but left them at home those who didn’t own a dog. The lead of the study, Randolph Barker, said that "the differences in perceived stress between days the dog was present and absent were significant. The employees as a whole had higher job satisfaction than industry norms."
Second, when staff bring their dog to work, they will need regular walks throughout the day, which will encourage people to be active. Being physically active not only gives people the satisfaction that naturally comes with exercise, but it will also increases productivity.
Each time someone exercises, new mitochondria produce more energy known as ATP. This gives people more energy physically and for the brain, which boosts mental output and productivity.
Third, workplaces that allow dogs into their offices usually find that employees are more cooperative with each other, and that they have better working relationships. Dogs increase morale and bring a more fun and positive outlook to office life, which encourages people to be friendlier to each other.
Dogs are a common interest between many different people from all walks of life, so having some common ground can help people to connect. Central Michigan University found that when a dog is in the room with a group of people, they are more likely to trust each other and collaborate together effectively.
Fourth, actively encouraging staff to bring their pet to work will foster a really good relationship between employer and employee. It will help to make employees feel valued and increase the likelihood they'll stay long term at the company.
The more satisfied people feel in their job role, the less likely they are to search for work elsewhere, making employee retention rates higher, according to one study.
Fifth, allowing staff to bring their pet to work increases their job satisfaction and reduces stress, which in turn will mean that they are less likely to become ill and need time off work. This can have an added effect on other employees in the business too. With the positive, stress-reducing nature that dogs bring to an office, people will be less likely to take time off.
With such benefits already working for some financial companies, hopefully others will start to catch up with these pet-friendly policies soon.
SOURCE: Woods, T. (09 January 2020) "New employee retention tool has four legs and goes 'woof'" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/pet-friendly-policies-as-employee-retention-tools
5 talent trends to watch in 2020
Although 2020 is a new year, talent may still seem comparable to previous years' trends. In 2020, employers can expect to see talent management move into a more proactive role. Read this article to learn about the five talent trends to watch for in 2020.
2020 may herald a new year (and decade), but today's talent trends will likely seem familiar.
Employer branding, diversity and inclusion, empowering managers and developing employees all remain priorities for talent pros. For example, HR Dive identified "talent acquisition panic" as one of the driving forces of 2019 — and while recruiting won't necessarily remain in a panic state, most experts agree that it will be a strategic focus for all company leaders in 2020.
But experts also said that certain trends may rise in importance in the new year, and five, in particular, will likely stand out.
Talent management will move from reactive to proactive
The workforce now encompasses a large swath of employees, independent contractors and even robots, requiring a new approach, Michael Stephan, Deloitte's US human capital leader, told HR Dive in an interview. "It's going to change the way HR business partners approach … workforce planning," he said. "Not just how many heads you need, but 'where is the best place to access this particular talent?'"
That means employers will need to move from reacting to talent needs to anticipating them, Mark Brandau, principal analyst at Forrester, told HR Dive. "Most organizations look at it from a reactive perspective and not enough time is done on planning," he said.
Expect more proactive talent strategies that encompass tech's undeniable impact on work. Kristen Ruttgaizer, director of human resources at Igloo Software, agreed that employers will have to put more effort into initiatives that draw candidates in over time, such as solid employee experience.
Diversity and inclusion efforts provide a good example of what this shift may look like, as a successful D&I initiative requires that an employer address "the entire employee life cycle," according to Randstad US's report on 2020 trends. Talent is no longer about simple efficiencies; it's now a driving force for C-suite decision-making, Stephan explained.
Contingent hiring will be more integrated
While employers may no longer be in panic mode about talent acquisition, the rise of contingent worker hiring has complicated recruiting by introducing a new variable: When you need more help, do you hire an employee or bring on a contractor?
Employers are "trying to figure out the workforce ecosystem or strategy that cuts across the different sources," Stephan said. "They realize how important figuring out that ecosystem is to that future strategy. They're in rapid investment mode."
In other words, recruiters are starting to press third-party vendors to provide offerings that would allow them to see both employee and contractor availability from the same place, Brandau said. "Why aren't they in the same place and with a nod toward skills?" he said.
Some of this transition also may include adopting development structures that create "gig-like" models within an employed workforce, WorldAtWork's CEO Scott Cawood said in his Top 7 Workplace Predictions emailed to HR Dive, giving workers opportunities to work on a project-by-project basis and understand how their career will develop in the long-term.
'Super jobs' will become more prevalent
Employee learning and talent management are more intertwined now than ever; learning was the No. 1 trend in one of Deloitte's 2019 human capital trend reports. But that push is driven in part by the looming talent shortage and heightening competition. As employers adopt tools that can do some of the work that talent would previously be hired to do — think robots in Amazon warehouses — they're also inadvertently creating "super jobs" that require skill sets that cross multiple domains, Stephan said.
"A package organizer now has to be an expert in robotic tech," he said. Someone who is managing fellow organizers may now have to combine those key leadership skills with minor capabilities in robotics. To make up that gap, employers began to lean heavily on employee development — but how does a company balance necessary development time without disrupting the work?
"People need to be able to do their job and have access to knowledge when doing their job," Stephan said. A global manufacturing company that works on elevators once had a 3,000 page manual, he explained. Now, employees can use an iPad to search for ways to resolve issues on the fly, educating the worker while keeping them productive.
"They're having to adapt to a really fast changing market," Brandau said.
It's not all tech-driven. The rise of super jobs also has forced employers to redefine leadership development and what it means to be a leader in an organization that requires each worker to have a broad swath of skills, Brandau added.
'Agility' will give way to 'adaptability'
Last year, "agility" was the buzzword of choice. But employers and experts have made a semantics shift toward "adaptability" as employers consider how to best prepare for the future of work.
"When you think of agility, you think of being able to bend an arm in a certain way," Brandau said. "But adaptability is an intelligence of...which way do I need to bend and why?"
The concept is not wholly different from agility, which requires an employer to be ready for the rapid changes descending upon the business world, but it does require an employer to more seriously consider how its people work and behave. "Adaptable is about living and breathing around networks," Stephan said.
A company's culture may need to adopt a philosophy about "failing fast and learning fast," he continued. After all, a workplace can't be "adaptable" if its people aren't ready — though Brandau predicts this will continue to be a hurdle for employers to overcome.
"You have to have a workforce that is ready to adapt to change. We hate change," he said. "Adaptive workforces thrive in change. How do you do this in real ways?"
Employers will have to use data to dive local — whether they're ready or not
To find talent faster, some employers have invested in data and "workforce sensing" to get a more accurate assessment of the local talent market. The pressure to do so — and quickly — has only risen in recent years as employers grapple with talent gaps. That data can inform the type of tech an employer needs or even a new location strategy, Stephan said. And that doesn't even account for HR's use of internal data to gauge employee experience.
Unfortunately, HR teams aren't exactly prepared for this deep dive, even if the branding around it has been centered on employee experience, Brandau said. "HR and these areas have not typically been very good at dealing with data," he added. "How are managers going to deal with an intelligent suite? They aren't ready for it."
Employers that want to improve their workforce sensing capabilities will need to invest serious time into understanding external data sources. Where are the "pockets of workforce capabilities"? "Our clients really aren't there yet," Stephan said. But this talent market might just push them there.
SOURCE: Moody, K. (08 January 2020) "5 talent trends to watch in 2020" (Web Blog Post). Retrieved from https://www.hrdive.com/news/5-talent-trends-to-watch-in-2020/570026/