Pandemic drives business support for paid leave, study finds
A new study has found strong support from U.S businesses for a national paid leave policy after months of navigating the coronavirus pandemic and the ensuing recession.
Researchers found that 75% of U.S. companies and U.K.-based companies with U.S. operations said they support a government leave plan to help cope with future public health and economic crises. So far during the COVID-19 outbreak, 1 in 5 U.S. workers have taken a leave of some kind.
More than 40 companies of various sizes were surveyed in the study conducted by the nonprofit groups Promundo and Paid Leave for the U.S., which promote gender equity and paid leave policies, respectively.
The U.S. is alone among 41 industrialized countries in not guaranteeing paid sick or parental leave, according to the Organization for Economic Cooperation and Development. President Joe Biden has introduced a $1.9 trillion stimulus bill featuring temporary paid leave amid signs that support is on the rise on Capitol Hill and in corporate America for paid leave legislation.
“We’re beginning to see is a real demand for a permanent public policy solution,” said Annie Sartor, senior director of business partnerships at Paid Leave for the U.S.
The Families First Coronavirus Response Act passed at the onset of the pandemic included two weeks of paid sick leave and as much as 10 weeks of paid family or medical leave for employers with fewer than 500 employees. It expired in December.
Biden’s current proposal includes provisions for as much as 14 weeks of paid sick, family and medical leave and a significant expansion of eligibility. The plan could reach as many as 106 million more Americans than the last emergency bill, expanding coverage to workers at companies with fewer than 50 employees.
Biden’s rescue plan is “a first step” toward permanent legislation, said Michelle McGrain, director of congressional relations at the National Partnership for Women & Families.
“The lack of paid leave in this country was a huge crisis,” she said. “That crisis has continued throughout the pandemic and will continue to exist if big, structural changes are not engaged.”
Almost 45% of companies said more than half of the employees who took leave were women, who often bear the brunt of household and care-giving responsibilities.
Gary Barker, chief executive officer and founder of Promundo, said companies with leave programs cut their job losses, especially for women. In December, women accounted for all of the net jobs lost in the U.S., with 156,000, while men gained 16,000 jobs, according to the U.S. Bureau of Labor Statistics.
“It points to the importance of making leave normal for women and men, and for us to achieve the equality in salaries that women deserve,” Barker said.
Barker said companies in nations with mandatory leave have built a workplace culture that doesn’t penalize taking time-off.
“Workers worry about taking it,” particularly in the U.S., Barker said. “European countries, because they’ve been doing this for a very long time, you’re not considered a slacker because you take leave.”
SOURCE: Gardner, A. (26 January 2021) "Pandemic drives business support for paid leave, study finds" (Web Blog Post). Retrieved from https://www.benefitnews.com/articles/pandemic-drives-business-support-for-paid-leave-study-finds
How the latest stimulus bill impacts student loan benefits
With passage of the COVID-19 stimulus bill in December, Congress granted a five-year extension to a temporary provision of the CARES Act that allows employers to contribute up to $5,250 annually toward each employee's student debt on a tax-free basis.
This tax exemption was set to expire on December 31, 2020. Congress has now extended that deadline through December 31, 2025. The legislation allows employers to help pay down their employees’ student loan debt without employer contributions being taxed, similar to a 401(k) match.
By utilizing this benefit, both employers and employees avoid federal payroll and income taxes on employer payments to principal or interest on a qualified education loan, which is defined as a student loan in the name of the employee and used for their education. Federal, private and refinanced student loans are all eligible for pre-tax employer contributions. This tax exemption, however, does not apply to education loans for an employee’s spouse, children, or other dependents.
Addressing student debt at work has been a burgeoning trend in employee benefits in recent years. Even prior to this tax exemption, the number of employers offering student loan repayment benefits doubled from 4% to 8% of U.S. employers between 2018 and 2019. Providing student loan assistance has rapidly gained traction as an employee benefit because it’s often a win-win for employers and employees.
Some 47 million Americans collectively owe $1.7 trillion in student debt and that figure is not slowing down. The Congressional Budget Office estimates that over $1 trillion dollars in new student loan debt will be added by 2028. With 70% of college students graduating and beginning their careers with an average of $40,000 in debt that will take 22 years to pay off, employers have begun to recognize the social cost and impact such an astronomical level of debt has on recruiting, retention, and employee productivity.
By the age of 30, employees with student debt hold less than half the retirement savings of their peers without student loans. Student loan borrowers have delayed homeownership, getting married and having children because of their debt. Stress over how to repay student loans causes 65% of borrowers to report losing sleep at night and 1 out of 8 divorces are attributable to student debt.
When one takes that into consideration, it should not be surprising that many job seekers are drawn to employers that offer to help pay down their student loans. When young adult job seekers were asked “What percentage of your benefit compensation money would you allocate for student loan debt repayment versus an alternative benefit?” In all cases, respondents chose more money going toward student loan repayment, ahead of all other benefits, including 401(k) match, health insurance, and paid time off.
At Goodly, we work with employers to help them offer student loan repayment as an employee benefit. Across the hundreds of clients we work with, employers typically contribute between $50 to $200 per month, with the median employer contribution being $100 per month toward the employee’s student debt.
Many Goodly clients fund student loan benefits by simply redirecting existing benefits budgets, often from tuition assistance programs. This is a fairly straightforward proposition when one considers that roughly half of employers already offer tuition assistance benefits that allow employees to go back to school. Yet, these programs often see abysmal utilization with less than 10% of eligible workers taking advantage of a tuition benefit on an annual basis.
The most common approach to employer-sponsored student loan repayment is to have employees continue making their regular student loan payments. Employer payments are then made on top of that to the principal of the student loan, similar to a 401(k) match. By taking this approach, we’ve found that the average student loan borrower on Goodly can pay off their student loans 25% to 30% faster than they otherwise would with the help of their employer.
SOURCE: Poulin, G. (20 January 2021) "How the latest stimulus bill impacts student loan benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-the-latest-stimulus-bill-impacts-student-loan-benefits
Addicted: How employers are confronting the U.S. opioid crisis
The COVID-19 pandemic has killed more than 381,000 Americans, but the isolation and remote work environment caused by the rapidly spreading disease has exacerbated an already terrible opioid epidemic in the country.
In the 12 months prior to May 2020, the U.S. recorded 81,230 drug overdose deaths, an 18.2% increase over the previous 12-month period, according to the Centers for Disease Control and Prevention.
The CDC announced in December that overdose deaths had already accelerated in the months before the coronavirus came to the U.S., but sped up even more during the pandemic.
“The disruption to daily life due to the COVID-19 pandemic has hit those with substance use disorder hard,” says Robert Redfield, the director of the CDC. “As we continue the fight to end this pandemic, it’s important to not lose sight of different groups being affected in other ways. We need to take care of people suffering from unintended consequences.”
One way to do that is to better educate the public about the opioid crisis, the nature of addiction and how employees and their families can seek help during times of crisis. Congress acknowledged the problem in its latest pandemic relief bill, including $4.25 billion for mental health services to address the recent surge in substance abuse, anxiety, depression and suicidal thoughts.
Shatterproof, a nonprofit organization founded to help people better understand the nature of addiction, created an educational platform for employers to teach their employees about addiction and the many resources available to them. The goal is to destigmatize addiction so that people who are being negatively affected by it can continue to work and get help for themselves and their families.
“The problem with addiction and COVID is that drugs and alcohol are used to self-medicate people, to temporarily make them feel better when they are not feeling great,” says Stephen D’Antonio, executive vice president of Shatterproof.
Add the fear and anxiety associated with the coronavirus, or the economic hardship associated with losing their job or having their hours cut, and “it’s almost a perfect storm,” he said.
Employers are the first to admit that employee opioid and alcohol addiction costs them a lot of money every year in the form of healthcare treatments and missed work. But, before COVID-19, employees didn’t have a lot of free time to do drugs or drink while at work. With remote work, they are even more isolated from society and nobody is around to see them drinking or taking drugs.
“Employers, as the decision makers of health plan design, have the unique ability to educate and build support systems for employees, particularly those at-risk,” said Cigna’s Dr. Doug Nemecek, chief medical officer for behavioral health. “This not only improves the health of employees, it improves the culture and overall wellbeing at the organization.”
Cigna offers many programs to help its clients and customers overcome and prevent opioid addiction, including comprehensive pain management and narcotics therapy management programs, pharmacy coverage oversight, and designated centers of excellence for substance use.
Ilyse Schuman, senior vice president of health policy for the American Benefits Council, said that the opioid crisis and mental health issues in general go hand in hand, and there is a general lack of access to qualified mental health providers and behavioral specialists in the United States.
“Our employer plan sponsor members are very concerned and very focused on addressing the mental health aspects of the pandemic too,” Schuman says. “If any good can come from this horrible, horrible pandemic and the fact that so many people have lost their lives and so many people are suffering in silence is to highlight the importance of really addressing the opioid crisis nationwide and the mental health crisis,” she said.
Telehealth has allowed benefit providers to expand access to services like behavioral and mental health during the pandemic. The digital platform removes some of the barriers that health professionals face regarding where and how they can practice medicine.
“Employers are at the cutting edge of innovative strategies. In respect to behavioral health, they realize the importance of taking the stigma away from it. They are figuring out how to bring it out of the closet to communicate the importance of availability, of access to support services for them,” Schuman says.
In 2019, the State of Minnesota worked with the Minnesota Business Partnership to develop an opioid toolkit for employers who were looking for additional resources to help their employees. In Minnesota, drug overdose deaths increased 31% during the first half of 2020 compared to the first half of 2019, according to Sam Robertson, community overdose prevention coordinator for the Minnesota Department of Health. Most of those deaths were attributed to synthetic opioids like fentanyl that are used in both prescription and illicit drugs.
The goal of the toolkit is to show people that substance use disorder is a preventable and treatable illness and to present it in a user-friendly way so that employers of any size and type could address substance use in the workplace.
Addressing the opioid crisis in the workplace “is good for business,” said Dana Farley, drug overdose prevention unit supervisor for the Minnesota Department of Health.
The state worked with Shatterproof to develop the content of its toolkit.
Shatterproof’s Just Five program gives employers five steps they can take to be part of the opioid epidemic response. Each lesson is just five minutes long and uses video, animation and expert testimony to encourage people to get professional help, get educated, get support from people going through the same thing and take care of themselves.
The program has been adopted by major employers like General Electric, JPMorgan Chase and McKinsey.
“One of the big reasons people don’t seek help is they are worried about their employer finding out about their addiction,” D’Antonio says. This program helps get the message across that their employers stand behind them and want to get them the help they need.
SOURCE: Gladych, P. "Addicted: How employers are confronting the U.S. opioid crisis" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/addicted-how-employers-are-confronting-the-u-s-opioid-crisis
Why your employees need integrative wellness benefits
As employers look for innovative ways to support employee health and well-being during the pandemic, many have been relying on telehealth options and apps. But these alternatives are leaving employees with critical care gaps.
“Conventional care has left people to manage their own healthcare,” says Bill Gianoukos, CEO of Goodpath, a personalized care platform. “There’s been an uptick in telehealth services that do one of the components, but we’re providing a single solution that manages your entire care.”
“People are stitching solutions together, which leaves the patient to mimic what's currently broken in the conventional care system,” he says. “The employee is going out and picking and choosing solutions that may not be right.”
His platform, Goodpath, addresses musculoskeletal, sleep, digestive and behavioral health challenges through an integrated care plan. Clients work with a coach and also receive a box of products, like exercise bands and posture correctors.
“We believe in treating the whole person versus just going after the symptom,” Gianoukos says.
In a recent interview, Gianoukos discussed the health challenges facing employees as COVID persists, and why employers may be hesitant to launch integrative wellness programs.
How does integrative wellness differ from more conventional healthcare solutions?
The U.S. healthcare system is built around things that affect life expectancy, not chronic conditions that affect quality of life. Conventional care has left people to manage their own healthcare — everything from taking prescription medication, to going to see a specialist, to doing imaging, to physical therapy — you're just left on your own to manage your care.
When it comes to behavioral health, people don't necessarily understand how much behavioral wellness affects overall underlying conditions. [At Goodpath], you come to us with a condition and we will take you through that journey. We will manage your physical therapy and exercise. We will create programs for nutrition. We will create and administer behavioral health programs. We look at all of the multimodal approaches to an integrative care program versus a conventional single-point solution.
What are some of the benefits to this approach, from a productivity and cost-saving perspective?
For back pain alone, an integrative approach might save $11,000 in costs per employee per year. There are many productivity gains, not only from days lost in the office, but productivity lost because of inefficiencies. The average person suffering from a musculoskeletal issue sees 12 days of productivity loss a year. We also make a coach available to you. We believe that any program that actually has a human component has a much higher adherence rate than a standalone digital solution.
Building an integrative approach is very difficult. We see upwards of 12 different specialties represented, from physical therapy to a nutritionist, to a pharmacist, to primary care, to pain management experts. It's very difficult to go and build these complete integrative solutions. So I don't necessarily think you're going to see a lot of companies trying to do this.
What health challenges do you think will see the most need in 2021?
We’re focused on three of the largest conditions afflicting the U.S. population today: musculoskeletal, which can be considered as back pain, shoulder pain, knee pain; insomnia, which also includes fatigue; and then digestive issues like IBS. All of these have a large emotional and mental well-being component. We continuously look at improving and offering more solutions. For example, we’ve trained our coaches on good office ergonomics. Our goal is to keep on offering higher quality solutions for each one of the programs that we're dealing with.
[Some employees] need more urgent care than can be provided through digital therapy. So that’s when we work with employers to integrate with EAPs. We definitely believe that EAPs add a lot of value — we're solving slightly different problems, but overall we're trying to improve the health and the quality of life for all employees at these companies.
SOURCE: Place, A. (25 January 2021) "Why your employees need integrative wellness benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/why-your-employees-need-integrative-wellness-benefits
What does work look like in 2021? Workplace experts share their predictions
No one could have anticipated the total upheaval to the workplace in 2020 — the transition to remote work, a new reliance on technology, persistent pressures on employee mental health and well-being, child care concerns — the year was a roller coaster of crisis management for organizations and HR leaders.
With the one-year mark since coronavirus engulfed the U.S. now here, employers and employees are starting 2021 with one question: What will work be like this year?
“We are starting to see light at the end of the tunnel for the pandemic. Companies are better able to plan and make decisions about what is going to happen in the next six to twelve months,” says Brie Reynolds, career development manager at FlexJobs, a remote job searching platform.
While the transition to remote work seemed challenging at the start of the pandemic, employers are feeling more confident about their business success in 2021. Forty-four percent of executives believe the economy will improve this year, according to a survey by the Employer Associations of America. That confidence is leading employers to make important business decisions regarding pay raises and hiring: 64% of employers plan to implement salary increases, and 26% plan to boost their recruiting efforts.
“The pandemic has forced companies to be agile and innovative during these uncertain times,” says Mark Adams, director of compliance for EAA, an advocacy group that helps employers stay compliant with labor laws. “While expenditures are being scrutinized now more than ever before, the need to invest strategically remains important as businesses seek to rebound in 2021 and make up for lost ground.”
Remote work is here to stay
At the start of the pandemic, employees struggled to meet the demands of the digital workplace without many of the resources and benefits of the in-person office. Almost one year later, there’s little doubt that remote work has changed the way we work forever.
“Companies made it through almost a full year of remote work with relatively few problems,” Reynolds says. “Most companies are reporting that remote work was successful, and employees want it to continue. Companies are ready to make the switch now that they’ve really had a chance to test it out.”
Seventy percent of employees would like to continue to work remotely part of the time post-COVID, according to Glassdoor. Not only has remote work boosted productivity for some groups, the trend has offered employees an opportunity for better work-life balance and the freedom to live and work away from expensive corporate hubs, like Silicon Valley and cities such as New York and Los Angeles.
“If you're able to open yourself up to remote work, you can get more diversity in your workforce in terms of people's experience and their backgrounds,” Reynolds says. “That’s becoming increasingly important for employers to pay attention to.”
While organizations like Facebook and Slack have announced their employees can work remotely indefinitely, they’ve also suggested they’d make potential pay cuts for employees living in areas with a lower cost of living. Twenty-six percent of employers plan to base compensation on location, according to Willis Towers Watson. But 62% percent of employees would be willing to take a paycut if it allowed them to work from home, according to a survey from software companies GoTo and LogMeIn.
Thirty-five percent of workplaces do not have a firm plan for fully reopening their office, while 16% hope to reopen during Q1, according to a survey by The Conference Board. Hanging in the balance is the ability to have protective policies in place so that the workplace population feels safe, says Gary Pearce, chief risk architect at Aclaimant, a workplace safety and risk management platform.
“Protection is a must, not a nice to have,” Pearce says. “If you can't demonstrate that you're protecting your own people, you're not going to be able to keep employees.”
Workplace safety and vaccination protocol
With two vaccines currently on the market, a return to pre-COVID life is becoming easier to imagine. But ensuring that employees get the vaccine before returning to the workplace is the newest workplace debate confronting employers.
Just half of employees believe their employer should require a COVID-19 vaccine before allowing employees to return to work, according to Eagle Hill Consulting. Gen Z employees were the most on-board with a vaccine mandate, with 62% supporting a requirement, compared with 50% of Millennials and 46% of Generation X and baby boomer employees.
“If you're going to have that requirement, you have to have all the administrative processes in place. How do you verify as an employer that somebody went and got it? What documentation will suffice?” Pearce says. “I think the best case is when it doesn't have to come down to a mandate, but rather people are persuaded by having been given the best information, that this is the right thing to do to protect their family and to protect their fellow workers.”
Other safety precautions like frequent testing, social distancing and mask wearing will become a new way of life back at the office. The Conference Board found that 82% of employers plan to purchase safety equipment like masks, cleaning supplies and contactless entry devices, and 80% will enforce policies like limiting the number of employees allowed in the workplace at a time.
“You can't lose those safety protocols,” says Judi Korzec, CEO and founder of VaxAtlas, a vaccine management company. “It's going to take time to get to that point where you say, ‘Enough [employees] are vaccinated.’ If you're vaccinated, you don't need the test, but you need one or the other to keep your population safe.”
Implementing programs that incorporate consistent COVID testing and other safety precautions will be critical to establishing trust with employees after a year of mixed messages and ever-changing protocols, Korzec says.
“Employers are trying to do the very best they can and get their businesses back and follow the rules, but those change very quickly. It was so hard to keep up with and there probably was a little bit of lost trust there,” Korzec says. “The more tools and communication and orderly processes employers bring to the table, they’ll regain [employee] trust, because everyone wants their life back.”
Continued reliance on technology
Despite the challenges of COVID, employees have an overall positive attitude toward their employers and the way they’ve been supported during the pandemic. Seventy-eight percent of employees say their employer has handled the challenges of the pandemic appropriately, according to McKinsey. More than a quarter of employers have boosted employee benefits since the start of the pandemic, research by Fidelity Investments found.
Employers have looked seriously at ways to better support their workplace population, often turning to technology to fill in the gaps. Virtual nutrition programs, online access to therapy and holistic mental health care, virtual parental support groups and other programs will continue to be a critical component to help employees balance the demands of their work and home lives.
“When organizations systematically show that they care for their employees, they get better results,” says Laura Hamill, an organization psychologist at Limeade, an employee experience software company. “I think that something that is front and center to everybody in HR right now is the well-being of our employees and there have been a lot of impressive ways that organizations are emphasizing that.”
Employers must be empathetic to the challenges their employees have continued to face during this crisis, Hamill says. An ability to share openly can be key to building a more loyal and resilient workforce during COVID and beyond.
“It's time to have a radical change in how we think about work. In order for real change to happen, you have to be able to envision it first. You have to be able to say, ‘I could see how caring for people and being more human at work could happen in my company,’” Hamill says. “This global pandemic has forced us to see that when you treat people like human beings, when you care about them, it's just better for the employees — and it's better for your business.”
SOURCE: Place, A. (25 January 2020) "What does work look like in 2021? Workplace experts share their predictions" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/workplace-trends-for-2021
Managers and employees have different attitudes about their COVID workplace
Managers and employees have always had different attitudes about work, and the COVID pandemic has widened that gap even furthur. This divided workforce means most managers believe in the support their company provides, while fewer employees think their employer genuinely cares about them.
Seventy-seven percent of managers feel like their employer genuinely cares about their overall well-being, compared to only 55% of employees, according to a recent survey from Limeade, an employee engagement platform. Similarly, 78% of managers feel as though their employer has engaged in initiatives or offered services to support employee well-being since the start of COVID, compared to 66% of employees.
“This pandemic has not only added to stressors in our life, it’s also taken away some resources we’ve all relied on, like spending time with loved ones, building relationships with coworkers, and getting to explore the world around us,” says Reetu Sandhu, senior manager of the Limeade Institute. “You can see this in the drop that both groups report for their well-being.”
Pre-pandemic, 96% of managers and 86% of employees said that they had favorable well-being levels, Limeade found. However, since the start of the pandemic, those figures have plummeted to 73% of managers and 59% of employees reporting positive well-being.
In a recent one-on-one interview, Sandhu shared what these discrepancies mean for employers and how companies can work to close the gap between employee and manager attitudes in the workplace.
How has the pandemic increased the disparity between managers and employees in the way they view their employers?
The pandemic has emphasized factors that have always been there. Consider power dynamics, for example. Managers are in a position of power that grants them additional permission to prioritize their well-being. This was evident in the findings too — 83% of managers felt comfortable asking for a day off to support their own well-being compared to just 68% of employees. If employees didn’t feel adequately empowered, supported and even expected to prioritize their well-being before the pandemic, they’re only going to continue to fall behind during the pandemic.
Why does this discrepancy exist in the first place?
Organizations haven’t always recognized their role in employee well-being. Unfortunately, companies are only now facing the reality that factors such as power dynamics and organizational norms can have significant impacts on employees. Now, in the face of a pandemic, organizations are scrambling to find the answer. But we can’t expect it to just happen — we need to really consider the employee perspective. Our study revealed that 70.8% of managers feel that since the outbreak of COVID-19, their one-on-ones with their direct reports have focused more on discussing their well-being at work. Only 33.6% of employees actually feel like that is the case.
This disconnect highlights that managers may not be equipped with the resources to lead these conversations, or perhaps there is a gap in trust present in these relationships for genuine conversations about well-being to occur. This isn’t to say that managers do not care. We found that 84% of managers said they feel at least “somewhat” responsible for whether their direct reports experience burnout or not. Instead, it highlights that organizations are missing the mark in enabling both managers and employees to feel supported, cared for and safe to communicate honestly and openly about their experiences.
What can employers do to make all employees feel supported and cared for?
When employers invest in giving managers support, this pays out in dividends, as managers are then enabled to support their employees. Managers can think creatively about demonstrating care to their employees. This can include sending them a gift or a pick-me-up, asking intentional questions about how they or their families are doing, scheduling time for team connection and bonding where work is not an agenda item. Managers can declare a team well-being day, or celebrate the work that is being accomplished despite the tough times we are in. These seemingly small moments of care make an incredible impact on people.
It is very important that people feel as though they can speak openly about their work experience with HR and their managers. Managers, leaders and even peers need to establish trust within organizations and ensure that open communication is welcomed and not tied to any negative consequences. Then, and only then, will employees feel the safety and support they need.
Authentic care is the most impactful resource an employer can offer. Only when these efforts are genuine, will organizations see the direct benefits these offerings and open conversations have in supporting employee well-being. As a manager, don’t just say you want your team to prioritize their well-being — hold them to it just as you would their performance. This communicates that you take it seriously and want to support in a serious way.
SOURCE: Schiavo, A. (28 December 2020) "Managers and employees have different attitudes about their COVID workplace" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/managers-and-employees-have-different-attitudes-about-their-covid-workplace
HR checklist: 5 things to-do before the new year
2020 has been… a year. But before HR professionals look hopefully to the future, they need to tie up loose ends to ensure their workforce starts the new year off on the right foot.
“This has been a strange year, and a stressful one for both employees and their companies,” says Tauhidah Shakir, vice president of human resources and chief diversity officer at Paylocity, an Illinois-based HR software company. “Anything you can do to get ahead of things to wrap up this year is going to help alleviate that stress and get everyone off to a good start.”
The pandemic has caused a lot of stress in the workplace. In November alone, 42% of Americans reported experiencing cases of anxiety or depression, according to the Centers for Disease Control and Prevention. As an HR manager, Shakir believes that staying organized, and helping employees through end of year changes will help alleviate stress for everyone. To help other employers cope with these unprecedented times, she created an end of the year to-do list to help other HR professionals stay on track.
Note last payroll date
“Keep an eye on the payroll process, and be sure to note the first day of the New Year falls on a Friday so it doesn’t take you by surprise,” Shakir says. “You have to make sure people are getting their sick and bonus time. Have it all plotted out so you’re not rushing at the last minute.”
Open enrollment
“This isn’t like any other open enrollment; HR needs to over communicate what benefits they’re offering, and which ones are going to help their employees the most,” she says. “We don’t know how much things are going to change in the New Year; make sure employees are prepared by making them aware of any mental health, financial wellness and other benefits that can help.”
Go paperless
“Since many of us are not all working in the same space right now, this is the perfect time to switch the workforce over to a completely paperless documentation process,” Shakir says. “Email employees their end of year documents; it’s going to be a lot less stressful than them waiting for it to come through the mail.”
Employee feedback
“This year presented a lot of challenges for everyone, and you’re going to want to take any lessons learned into the New Year,” she says. “You’re looking for lessons learned, ways to improve to make benefits more accessible to employees. There’s always room for improvement, so be sure to be open to what employees are telling you.”
Be flexible
“A lot of employees are fatigued about working from home and feeling like they have no control right now,” Shakir says. “Remember employees have a lot on their plate right now, especially with the winter holidays going on, so be kind and flexible about when they work so they can juggle all their responsibilities.”
SOURCE: Webster, K. (16 December 2020) "HR checklist: 5 things to-do before the new year" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/hr-checklist-5-things-to-do-before-the-new-year
4 benefits of positive recognition to boost employee engagement
As both employers and employees are facing difficult times both in their work-life and home life due to the circumstances that the coronavirus pandemic has brought into the world, it's important that the negativity does not take place of the positivity needed. Positivity is powerful and can play a critical role in the workplace. Read this blog post for four benefits of positive recognition.
With all that’s happening, it’s easy to become overwhelmed with the negativity in the world. Our emotional state is important at work. Positive emotions transform our minds and increase our ability to bounce back from hard times.
The power of positivity should not be overlooked, and recognition plays a critical role in generating these emotions in a modern workplace. Open acknowledgement and expressed appreciation for employees’ contributions can go a long way.
Improve employee retention
The first benefit of positive employee recognition is improving employee retention. In fact, according to industry analyst Josh Bersin, companies that build a recognition-rich culture actually have a 31% lower voluntary turnover rate.
Gallup research on recognition also shows that employees who don’t feel recognized at work are twice as likely to quit within a year. In today’s current environment where many organizations are driving more productivity with fewer employees, leaders need to ensure that they’re not forgetting to focus on employee retention. You’d be hard-pressed to find an organization that isn’t concerned about retaining top talent right now; top performers will find new opportunities even when they’re hesitant to move.
Creating a workplace where people want to stay isn’t just beneficial for employees; it’s also good for the bottom line. Turnover cost can be difficult to compute, but I challenge you to consider the costs of recruiting, onboarding, training, and the lost institutional knowledge that comes with poor retention.
Increase employee engagement
The second benefit that is particularly important right now is increased employee engagement. Our own research showed that 84% of highly engaged employees were recognized the last time they went above and beyond at work compared with only 25% of actively disengaged employees. We also found that while 71% of highly engaged organizations recognize employees for a job well done, only 41% of less-engaged organizations did so.
Positive recognition is powerful and has a clear tie to engagement. Yet, many organizations still do not adequately measure engagement. When was the last time you measured engagement with your own team? How much opportunity is there to improve through recognition?
Boost employee morale
The third benefit of positive recognition is boosted morale. I already mentioned the transformative effect of positivity, but the simple act of thanking people can make a tremendous difference. When employees were asked about their experience at work,70% said that motivation and morale would improve “massively”with managers saying thank you more.
How did you feel last time you were recognized?
Positivity has an important impact on employees, but it also pays literal dividends to companies that have figured out how to encourage it. Research from author Shawn Achor shows that happiness raises sales by 37% and productivity by 31%. Consider ways you can encourage your team to recognize each other more often.
Leverage peer recognition
It turns out that peer recognition massively outperforms top-down recognition. Peer recognition occurs when individuals give and receive recognition from their peers, managers, and direct reports.
Being recognized by colleagues is incredibly powerful for employees, especially when it’s done publicly. Peer recognition is 36% more likely to have a positive impact on financial results than manager-only recognition, according to SHRM. Managers can’t see every positive action that occurs, so think about how to encourage everyone to participate in recognition of great work across the entire organization.
SOURCE: Crawford-Marks, R. (14 September 2020) "4 benefits of positive recognition to boost employee engagement" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/list/4-benefits-of-positive-recognition-to-boost-employee-engagement
Employers Consider Child Care Subsidies
Working parents have been put into situations that are causing them to almost choose between their careers and their children due to the coronavirus pandemic bringing families home and requiring work to be done virtually. Employers are now seeking ways to help employees with taking care of their children. Read this blog post to learn more.
Working parents have borne the brunt of the pandemic's impact on employees, as many must juggle their job responsibilities with overseeing their children's remote educations and overall well-being while quarantined. Some have had no choice but to quit their jobs or decided not to seek new employment when their jobs were eliminated due to the downturn, so that they could focus on caring for their kids.
In fact, an August survey by Care@Work of 1,000 working parents with children under the age of 15 showed that 73 percent were considering making major changes at work, such as revising their schedules (44 percent), looking for a different job (21 percent) or leaving the workforce entirely (15 percent).
One approach that is gaining steam among employers seeking to help employees with children is to provide child care subsidies. These typically are employer-provided spending accounts or bonuses designed to help cover the costs, in full or partially, of day care and pandemic-related educational expenses.
"Subsidizing professional child care arrangements for an organization's employees makes sound business sense because it potentially reduces the stress and anxiety that working parents might regularly experience while worrying about their children during their normal work hours," said Timothy Wiedman, a retired associate professor of management and human resources at Doane University in Crete, Neb. "And that stress and anxiety might well divert a parent's full attention from their assigned duties."
Making Sure It's Fair
To be sure, many companies have not considered offering any type of child care subsidy to working parents. A major reason often cited is that single employees, as well as those who are married without children or who have grown children, will feel slighted by an employer that offers a benefit they can't access.
"There is always that fairness doctrine that comes into play when you offer a subsidy to one employee because they have a special need that some other employee may not have or need," said Carol Kardas, SHRM-SCP, founding partner at KardasLarson, an HR consulting firm in Glastonbury, Conn. "Some may consider this a discriminatory practice, and [it] could be a cause for lower morale or productivity."
Some organizations overcome that issue by providing a different benefit instead to offset those perceptions. Wiedman suggested reviewing benefit allotments for such employer-paid offerings as elder care, the deductible required by the company-provided health care plan, the annual contribution to 401(k) retirement plans, health savings accounts, life insurance coverage (or additional disability insurance) and tuition reimbursement. The allotments can vary based on whether the employee also receives a child care subsidy.
Another option is to explain that by providing assistance to their colleagues, the workload will remain balanced and not fall more heavily on employees who don't have child care duties.
"Working parents who have to use paid time off to spend time with their children when no other arrangements can be made may also call out at the last minute, since arrangements can be canceled abruptly," Kardas said.
Alleviating Stress and Costs
Working parents who can't afford child care and don't receive a subsidy "are often interrupted by children wanting to share their toys or get a hug from dad," said Laura Handrick, an HR consultant in Phoenix. "I see the stress on parents' faces in Zoom meetings. It's too much to manage a full-time paid job and a full-time unpaid job [parenting] at the same time. The stress affects the worker's mental health, employee productivity and family relationships."
Offering child care subsidies can increase employee satisfaction and engagement, she said. "[Managers] earn employee loyalty and increased productivity from grateful employees who aren't ridiculously stressed by constant kid interruptions while working," Handrick said.
There is a financial benefit as well: Employers that supply child care subsidies can take advantage of an annual tax credit of up to $150,000 if they use it for qualified child care facilities and services. According to the IRS, "the credit is 25 percent of the qualified child-care facility expenditures, plus 10 percent of the qualified child-care resource and referral expenditures paid or incurred during the tax year." To receive the tax credit, employers must complete Form 8882.
Handrick said a company can start a child care subsidy program with flexible spending accounts (FSAs).
"The benefit of providing a child care subsidy to employees in the form of an FSA is that the employer contributes pretax dollars, reducing its payroll taxes," she said. "The employee can choose how much or how little to contribute. Those who prefer to send their children to a more expensive program can fund and pay for it through the FSA using pretax dollars."
Kardas said if workplaces hire essential workers, they could utilize government-run programs in their states, such as Connecticut's CTCARES for Child Care Program for first responders, grocery workers, state facility employees, and child care and group home workers. They could also tap into an employee assistance program (EAP) to help employees find or pay for child care, she said.
Another idea is to grant every employee a certain amount of personal time that can be used in special circumstances, such as when child care is closed or a child is sick or unable to attend a child care program on a given day.
"This type of personal time could also be given to and used by those who do not have children for attending appointments or other obligations that can't be done after work," Kardas said. "This time may not solve the issue of employees being absent, but the fact that all would share equally may help."
As workplaces reopen physical locations, HR can look for child care facilities in the immediate area and work with them to offer a discount to employees, Kardas recommended.
"Single moms and working parents rarely have an extra room at home to carve out a home office," Handrick said. "That means they're likely working from the kitchen or dining room with children at home demanding attention. Toddlers want to play, [and] school-age kids need help with online classes."
Larger employers and those with deeper resources may even consider establishing an onsite child care facility for employees and charging less than a typical child care facility, which experts agree would dramatically boost appreciation among working parents who could then visit their children during each workday.
SOURCE: Lobell, K. (22 September 2020) "Employers Consider Child Care Subsidies" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/many-workplaces-consider-child-care-subsidies.aspx
Employees work an extra 26 hours a month when remote
Only months ago, a growing number of businesses were experimenting with or adopting a four-day workweek, but remote work policies imposed by the coronavirus pandemic have pivoted this trend in the opposite direction.
Full-time employees are working an extra 26 hours a month when remote, adding nearly an extra day of work to the week, according to a new report from Owl Labs, a video conferencing technology company.
Employees may also be filling in the time they spent commuting with more time at work. The report found employees were spending an average of 40 minutes daily on their commute.
“Everybody's situation is different, but I was commuting roughly two to three hours per day, which is 10-15 extra hours per week,” Weishaupt says. “Now I have a lot more flexibility in terms of when my workday starts and ends, and I don't have to give that time to the commute — but can actually give it to work.”
But along with increased work hours are increased levels of stress. Almost 1 in 2 employees are worried that staying remote could negatively affect their career, according to the findings. During the coronavirus pandemic, 91% percent of employees say they’ve experienced moderate to extreme stress while working from home, according to a survey by Ginger, a mental health benefits platform.
Despite these challenges, the flexibility of working remotely has helped many employees achieve better work-life balance. Overall, the report found that workers were benefiting from the perks of remote work, and named avoiding their commutes and having more time with their families as top reasons to continue working remotely.
“When you look at the overwhelming data, it shows that employees are much happier, which is a bigger indication of what this change has meant for people,” Weishaupt says. “Yes, people are working significantly more, but they're not having to sacrifice their personal lives to work. People are happier and feel just as productive, if not more [when working remotely].”
SOURCE: Nedlund, E. (21 October 2020) "Employees work an extra 26 hours a month when remote" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/employees-work-an-extra-26-hours-a-month-when-remote