6 Books on the Future of Work That Every HR Professional Should Read
What do the next 50 or 100 years have in store for organizations and workers? Read this blog post for six books on the future of work that every HR professional should read.
As HR professionals and organizational leaders, it seems we are increasingly bombarded with messages about disruptive innovations and the changing nature of work. While calls to prepare strategically for the "future of work" might sometimes seem over-the-top, it doesn't change the fact that we've seen tremendous shifts in the global economy (including the labor economy) and technological innovation over the past 50 years that have had significant implications for the nature of work.
So what do the next 50 years have in store for organizations and workers? How will disruptive technologies like robotics, artificial intelligence/machine learning, pharmacogenetics, quantum entanglement, virtual presence/augmented reality, 3-D printing, and blockchain (among many others) influence future labor markets?
Here are six books I believe every HR professional and organizational leader should read to better understand these trends and the drivers influencing the shifting trajectories in the future of work.
1. The Future of the Professions: How Technology Will Transform the Work of Human Experts(Oxford University Press, 2017) by Richard Susskind and Daniel Susskind
The Future of the Professions closely examines the intersection of rapidly advancing innovative technologies and the shifting nature and transformation of work and the professions, providing theoretically grounding and ample examples of emerging technologies, organizations and work arrangements. It is intended for organizational leaders and policy practitioners of all stripes who are interested in the effects of disruptive technologies on the future of work.
2. The Future of Work: Robots, AI, and Automation (Brookings Institution Press, 2018) by Darrell M. West
In The Future of Work, West sees the U.S. and the world at a "major inflection point" where we have to grapple with the likely impact of an increasingly automated and technologically advanced society on work, education and public policy. The insights provided will be useful to those who manage others and to those who are managed in the workplace of the future.
3. Rise of the Robots: Technology and the Threat of a Jobless Future (Basic Books, 2016) by Martin Ford
Rise of the Robots is a somewhat unsettling vision of a future world dominated by artificial intelligence, machine learning and highly automated industries, where most members of the current workforce find themselves replaced by technology and machines; in other words, a jobless future. Based on recent economic and innovation trends, Ford argues that the rapid technological advancement will ultimately result in a fundamental restructuring of corporations, governments and even entire societies as middle-class jobs gradually disappear, economic mobility evaporates and wealth is increasingly concentrated among the elite super-rich.
4. Gigged: The End of the Job and the Future of Work (St. Martin's Press, 2018) by Sarah Kessler
Gigged examines the shifting psychological contract between organizations and workers, discusses trends in the organization of work, and documents the movement in recent decades away from traditional employment models and toward part-time work and contingent employment arrangements such as independent contracting and project-based "gig" work. While such work has always been a part of informal economies around the world, the trend is increasingly common in traditional organizations as well, bolstered by the success of companies like Uber and Airbnb.
5. The Future of Work: Attract New Talent, Build Better Leaders, and Create a Competitive Organization (Wiley, 2014) by Jacob Morgan
In The Future of Work, Morgan continues the argument that the world is changing at an accelerated pace. He demonstrates that the way we work today is fundamentally different from how previous generations worked (due to globalization, technological innovation and shifts in the composition of national economies) and suggests that the future of work will be drastically different from what we experience today (a shift from knowledge workers to learning workers), where employees can work anytime and anywhere and can use any devices.
6. Shaping the Future of Work: A Handbook for Action and a New Social Contract (MITxPress, 2017) by Thomas A. Kochan
Probably the most academic book on this list, Shaping the Future of Work acknowledges an increasingly digitized economy and examines the resulting shift in social contract with regard to work and the professions. Kochan provides a road map for what leaders across contexts need to do to create high-quality jobs and develop strong and successful businesses.
What Does All This Mean?
In the next 50 years, we will likely see:
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A continually shifting geopolitical landscape.
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Continued movement from linear organizations to a more latticed/connected framework.
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The displacement of jobs and the hunt for talent in a more automated economy.
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An increasingly mobile and flexible labor force, and a push toward a reskilling agenda within organizations to continually leverage human capital value.
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Technological advancements that continue to disrupt traditional organizational models and shift the very nature of work and professions.
So what does this all mean for HR professionals and organizational leaders? What are the core competencies of organizations that are prepared for these technological disruptions? How does the shifting nature of work influence needed HR competencies?
Regardless of what the future holds, these are questions we need to be asking and discussions we need to be having so that we are prepared for the future of work.
SOURCE: Westover, J. (5 September 2018) "6 Books on the Future of Work That Every HR Professional Should Read" (Web Blog Post). Retrieved from https://www.shrm.org/hr-today/news/hr-magazine/book-blog/pages/6-books-on-the-future-of-work-that-every-hr-professional-should-read.aspx/
Business meal deductions likely here to stay after new IRS guidelines
Business meal deductions are expected to continue to qualify for deductions. After much confusion following the IRS’s decision to end deductions for client entertainment, they are expected to release guidance regarding business meal deductions. Read on to learn more.
Employers wondering whether they can still deduct business meals from their tax returns may soon be getting an answer from the Internal Revenue Service.
The agency is expected to release guidance saying that business meals will continue to be 50% deductible, according to an article in the Wall Street Journal.
The confusion over the deductibility of business meals stems from the IRS’s decision to end deductions for client entertainment, a move that was part of the government’s tax overhaul. Previously, the entertainment-related deduction was 50% of qualified expenses.
The elimination of deductions for client entertainment left many tax professionals wondering whether client meals might be considered entertainment and therefore no longer qualify for deductions.
The anticipated IRS guidance — which comes at the urging of the American Institute of Certified Public Accountants and other groups — is expected to preserve the 50% deduction for the cost of meals with clients and elaborate on how the 50% meal write-off meshes with entertainment expenses, the Wall Street Journal said.
If a business owner or employee, for example, takes a client to a ballgame, the cost of the tickets is not deductible because the expense is for entertainment. Hots dogs and drinks purchased at the event, however, could still be 50% deductible, the IRS is expected to say, according to the Wall Street Journal.
The IRS, which did not respond to a request for comment, is not likely to change the normal requirements corporate executives must meet to take deductions for client meals.
They must discuss business with the client before, during and after the meal, and the meal must not be “lavish or extravagant,” the Wall Street Journal said.
SOURCE: Correia, M. (28 September 2018) "Business meal deductions likely here to stay after new IRS guidelines" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/business-meal-deductions-likely-here-to-stay-after-new-irs-guidelines?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
5 ways benefits educators can ease the open enrollment process
Are you prepared for open enrollment? HR professionals are responsible for effectively communicating plan options and changes to employees so they make informed decisions regarding their coverage and healthcare. Continue reading to learn more.
Open enrollment season is on its way, which means that HR’s already full plate just got a bit fuller. In addition to developing competitive health plans that attract and retain top talent – talent of all ages and with varying needs – HR pros are also responsible for effectively communicating plan options to employees to ensure that individuals make informed, cost-conscious decisions about their coverage and care.
See also: Here’s how HR pros can breeze through open enrollment
As the healthcare landscape becomes more complex, so do employee questions around their health care benefits. Many healthcare consumers today don’t feel comfortable navigating the health care system – which is why most roll over the same plan year after year. While HR teams want to manage the influx of employee questions around their benefits options, they struggle to provide the necessary guidance given their current bandwidth. Covering health plans in a large townhall meeting won’t provide the personalized information that employees need to make educated decisions. To deliver a more personal, empowering experience, organizations can look to benefits educators to supplement strapped HR teams.
Benefits educators can help individuals better understand the plan options available to them and select the package that offers the coverage they need at the price that best fits their budget. To ensure that benefits educators are aligned with the organization’s strategy, HR teams should arrange for educators well in advance of open enrollment so they are equipped to best explain the employer’s benefits plan options. Once up to speed, benefits educators can hold one-on-one conversations with employees to:
1. Define healthcare terms that employees don’t understand. With low healthcare literacy rampant across the U.S., disturbingly few employees are comfortable defining basic health terms such as “deductible,” “copay” or “coinsurance.” benefits educators cannot only explain these important terms but also help employees understand their significance in their coverage selection process.
2. Compare different plans to suit each employee’s needs. Benefits educators will work to understand the specific needs of each employee they meet. By taking the time to sit and get to know each employee, the benefits educator can recommend options that provide the coverage that best meets the needs of the employee and his or her family.
See also: Avoid these 12 Common Open Enrollment Mistakes
Third-party, independent benefits educators can be particularly valuable for employees who do not feel comfortable posing personal questions to their coworkers. By meeting one-on-one with an outsider who understands both benefits in general and company options in particular, employees are often more inclined to raise specific health or personal details that should guide their benefits selection. In fact, 45 percent of employees say they would prefer to speak to a benefits expert when choosing their coverage.
3. Equip employees with the information they need to choose their coverage. Left to their own devices, 83 percent of employees spend less than an hour reviewing their plan options before open enrollment – a lack of preparation that does not bode well for educated benefits selection. benefits educators can focus on the details that matter – saving the employee time and effort.
4. Explain voluntary benefits. Despite the increasing popularity of voluntary benefits, many employees are still confused about what they are, how they work and why they might be helpful. In reality, certain voluntary benefits can help control health costs and bridge the gap between medical coverage and out-of-pocket costs – added expenses that concern 61 percent of employees. In today’s multigenerational workforce – where employees have very different priorities when it comes to their health and financial wellness – benefits educators can dispel some of the mystery and suggest options that might meet individual needs.
5. Empower employees to make the most of their benefits year-round. Benefits educators can lay the groundwork for more educated health care consumers by directing employees to resources where they can find more information about their coverage and how their plans work after the open enrollment ends.
See also: 5 tips to make this the best open enrollment ever
More informed employees not only make smarter choices about their coverage and care but also better appreciate their employers – which has the potential to help with retention and business productivity. Ultimately, organizations see a win-win-win: happier employees who save on care, happier HR teams who save on time and happier executives, who see a significant return on their health care investments.
SOURCE: Murdock, G (21 September 2018) "5 ways benefits educators can ease the open enrollment process" (Web Blog Post). Retrieved from https://www.benefitspro.com/2018/09/21/5-ways-benefits-educators-can-ease-the-open-enroll/
The approaching ACA premium tax moratorium – take 2
In 2010, Congress scheduled the 2014 Affordable Care Act premium tax. Then in 2015 Congress introduced a one-year moratorium on the premium tax that would take place in 2017. This past January, Congress placed another moratorium for the ACA premium tax in 2019. Continue reading to learn more.
In 2010, Congress scheduled the 2014 introduction of the Affordable Care Act premium tax (aka the health insurer fee). Then, via the PACE Act of October 2015, Congress placed a one-year moratorium on this 4% or so premium tax for calendar year 2017. You might recall our ensuing discussion a couple of years ago about how employers sponsoring fully insured medical, dental and/or vision plans could leverage this 2017 moratorium to their advantage.
See also: ACA: 4 things employers should focus on this fall
Meanwhile, did you notice back in January that Congress placed another moratorium on this tax, this time for 2019? To review:
- 2014-2016 – Tax applies
- 2017 – Under moratorium
- 2018 – Tax applies
- 2019 – Under moratorium
- 2020 – Tax scheduled to return
Fortunately, in moratorium years, fully insured medical, dental and vision premiums should be about 4% lower than they would have been otherwise, with these savings passed along proportionately by most employers to their plan participants.
Unfortunately, the budgetary challenge of this on-again-off-again Congressional approach is that when the tax returns, fully insured renewals naturally go up about 4% more than they would have otherwise. For example, an 8% premium increase becomes 12%.
See also: Proposals for Insurance Options That Don’t Comply with ACA Rules: Trade-offs In Cost and Regulation
Another complication occurs as employers annually compare the expected and maximum costs of self-funding their plans versus fully insuring the plans. Because this tax generally does not apply to self-funded plans, in “tax applies” years, any expected savings from self-funding will show about 4% higher than in moratorium years. This math especially complicates the financial comparison of level funding contracts to fully insured contracts (almost all level funding products are self-funded contracts).
With the Jan. 1 fully insured medical, dental and vision renewals beginning to cross our desks, what should employers do?
First, they should review the renewal’s rating methodology page and ensure that this tax was not included in the proposed 2019 premiums. If the rating methodology page was not provided, request it. If this request fails, ask for written confirmation that this tax is not included in your plan’s 2019 premiums.
Second, when comparing 2019 expected and maximum mature self-funded plan costs to 2019 fully insured premiums, extend the analysis to 2020 and project what will happen when this 4% fully insured tax tide returns.
See also: Pre-existing Conditions and Medical Underwriting in the Individual Insurance Market Prior to the ACA
Finally, complicating matters, several states, including Maryland, introduced new or higher state premium taxes for 2019. Ask your benefits consultant if these actions will impact your plans. For Maryland employers sponsoring fully insured plans, for example, the new additional one-year premium tax will essentially cancel out the 2019 ACA premium tax moratorium.
SOURCE: Pace, Z (27 September 2018) "The approaching ACA premium tax moratorium – take 2" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/the-approaching-obamacare-premium-tax-moratorium?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
30 employee handbook do’s and don’ts from the NLRB
Recently, the National Labor Relations Board (NLRB) released a list of rules to help employers comply with the National Labor Relations Act. Read this blog post to learn more.
To help employers craft handbooks that don’t violate the National Labor Relations Act, the National Labor Relations Board has issued a compilation of rules it has found to be illegal — and rewritten them to illustrate how they can comply with the law.
It was issued as a memorandum by NLRB General Counsel Richard F. Griffin, Jr. to “help employers to review their handbooks and other rules, and conform them, if necessary, to ensure they are lawful.”
Specifically, the memorandum points out employer policies found to violate and conform to Section 7 of the NLRA.
The main area of concern
Section 7 mandates that employees be allowed to participate in “concerted activity” to help improve the terms and conditions of their work.
The NLRB has made it abundantly clear recently that it’s on the lookout for rules that:
- explicitly restrict protected concerted activity, and/or
- could be construed to restrict protected Section 7 activity.
One thing the memorandum makes very clear: extremely subtle variations in language could be the difference between having a legal policy in the NLRB’s eyes and having one that’s viewed as violating the NLRA.
What to say, what not to say
Here are many of the dos and don’ts highlighted by the memorandum, separated by topic:
Rules regarding confidentiality
- Illegal: “Do not discuss ‘customer or employee information’ outside of work, including ‘phone numbers [and] addresses.'” The NLRB said, in addition to the overbroad reference to “employee information,” the blanket ban on discussing employee contact info, without regard for how employees obtain that info, is facially illegal.
- Illegal: “Never publish or disclose [the Employer’s] or another’s confidential or other proprietary information. Never publish or report on conversations that are meant to be private or internal to [the Employer].” The NLRB said a broad reference to “another’s” information, without clarification, would reasonably be interpreted to include other employees’ wages and other terms and conditions of employment.
- Illegal: Prohibiting employees from “[d]isclosing … details about the [Employer].” The NLRB said this is a broad restriction that failed to clarify that it doesn’t restrict Section 7 activity.
- Legal: “No unauthorized disclosure of ‘business “secrets” or other confidential information.'”
- Legal: “Misuse or unauthorized disclosure of confidential information not otherwise available to persons or firms outside [Employer] is cause for disciplinary action, including termination.”
- Legal: “Do not disclose confidential financial data, or other non-public proprietary company information. Do not share confidential information regarding business partners, vendors or customers.”
The NLRB said the last three rules above were legal because: “1) they do not reference information regarding employees or employee terms and conditions of employment, 2) although they use the general term “confidential,” they do not define it in an overbroad manner, and 3) they do not otherwise contain language that would reasonably be construed to prohibit Section 7 communications.”
Rules regarding conduct toward the company and supervisors
- Illegal: “[B]e respectful to the company, other employees, customers, partners, and competitors.”
- Illegal: “Do ‘not make fun of, denigrate, or defame your co-workers, customers, franchisees, suppliers, the Company, or our competitors.'”
- Illegal: “Be respectful of others and the Company.”
- Illegal: “No ‘[d]efamatory, libelous, slanderous or discriminatory comments about [the Company], its customers and/or competitors, its employees or management.'”
The NLRB said the rules above were unlawfully overbroad because: “employees reasonably would construe them to ban protected criticism or protests regarding their supervisors, management, or the employer in general.”
- Illegal: “Disrespectful conduct or insubordination, including, but not limited to, refusing to follow orders from a supervisor or a designated representative.”
- Illegal: “‘Chronic resistance to proper work-related orders or discipline, even though not overt insubordination’ will result in discipline.”
The NLRB said the rules above, while banning “insubordination,” also ban “conduct that does not rise to the level of insubordination, which reasonably would be understood as including protected concerted activity.”
- Illegal: “Refrain from any action that would harm persons or property or cause damage to the Company’s business or reputation.”
- Illegal: “[I]t is important that employees practice caution and discretion when posting content [on social media] that could affect [the Employer’s] business operation or reputation.”
- Illegal: “Do not make ‘[s]tatements “that damage the company or the company’s reputation or that disrupt or damage the company’s business relationships.”‘”
- Illegal: “Never engage in behavior that would undermine the reputation of [the Employer], your peers or yourself.”
The NLRB said the rules above “were unlawfully overbroad because they reasonably would be read to require employees to refrain from criticizing the employer in public.
- Legal: “No ‘rudeness or unprofessional behavior toward a customer, or anyone in contact with’ the company.”
- Legal: “Employees will not be discourteous or disrespectful to a customer or any member of the public while in the course and scope of [company] business.”
The NLRB said the rules above are legal because they wouldn’t lead an employee to believe they restrict criticism of the company.
- Legal: “Each employee is expected to work in a cooperative manner with management/supervision, coworkers, customers and vendors.” The NLRB says employees would reasonably understand that this states the employer’s legitimate expectation that employees work together in an atmosphere of civility.
- Legal: “Each employee is expected to abide by Company policies and to cooperate fully in any investigation that the Company may undertake.” The NLRB said this rule is legal because “employees would reasonably interpret it to apply to employer investigations of workplace misconduct rather than investigations of unfair labor practices or preparations for arbitration.”
- Legal: “‘Being insubordinate, threatening, intimidating, disrespectful or assaulting a manager/supervisor, coworker, customer or vendor will result in’ discipline.” The NLRB said: “Although a ban on being disrespectful’ to management, by itself, would ordinarily be found to unlawfully chill Section 7 criticism of the employer, the term here is contained in a larger provision that is clearly focused on serious misconduct, like insubordination, threats, and assault. Viewed in that context, we concluded that employees would not reasonably believe this rule to ban protected criticism.”
Rules regarding conduct between employees
- Illegal: “‘[D]on’t pick fights’ online.”
- Illegal: “Do not make ‘insulting, embarrassing, hurtful or abusive comments about other company employees online,’ and ‘avoid the use of offensive, derogatory, or prejudicial comments.'”
- Illegal: “[S]how proper consideration for others’ privacy and for topics that may be considered objectionable or inflammatory, such as politics and religion.”
- Illegal: “Do not send ‘unwanted, offensive, or inappropriate’ e-mails.”
The NLRB said the rules above were unlawfully overbroad because employees would reasonably construe them to restrict protected discussions with their co-workers.
- Legal: “[No] ‘Making inappropriate gestures, including visual staring.'”
- Legal: “Any logos or graphics worn by employees ‘must not reflect any form of violent, discriminatory, abusive, offensive, demeaning, or otherwise unprofessional message.'”
- Legal: “[No] ‘[T]hreatening, intimidating, coercing, or otherwise interfering with the job performance of fellow employees or visitors.'”
- Legal: “No ‘harassment of employees, patients or facility visitors.'”
- Legal: “No ‘use of racial slurs, derogatory comments, or insults.'”
The NLRB said the rules above were legal because: “when an employer’s professionalism rule simply requires employees to be respectful to customers or competitors, or directs employees not to engage in unprofessional conduct, and does not mention the company or its management, employees would not reasonably believe that such a rule prohibits Section 7-protected criticism of the company.
SOURCE: Schappel, C. (18 July 2018) "30 employee handbook do’s and don’ts from the NLRB" (Web Blog Post). Retrieved from https://www.hrmorning.com/employee-handbook-dos-and-donts-from-the-nlrb/
Here’s how HR pros can breeze through open enrollment
Does open enrollment make your HR department tremble with fear? Open enrollment season is right around the corner and can make the most experienced HR professionals shudder. Read on to learn how your HR department can breeze through open enrollment this year.
Three words have the power to make the most experienced HR professional shudder: open enrollment season.
Open enrollment season is a challenge, no matter how well the HR department prepares. Costs for medical and pharmacy benefits continue to rise, which means there are adjusted employee contributions to present to an audience who’s unlikely to understand the reasoning behind cost increases. There may be new benefits offerings that require employees to pay close attention during the decision-making process. There are open enrollment education campaigns and communications meetings to plan and launch.
Employers with multiple generations of workers must accommodate a wide range of health and welfare benefit needs. New laws (like the federal tax law) plus evolving regulations around benefits add more to HR’s already full plate. (No wonder you don’t have time for lunch.)
But, there’s good news. First, open enrollment is made easier if you plan throughout the year for it. Second, these four tips can help HR professionals make open enrollment much easier.
Review trends and projections ASAP. Focus on the renewal rate long before the renewal date. If your employee benefits renew at the beginning of the year, you may not have received your rate yet. But frankly, by now you should have a very good idea where the rate is projected to land. Reviewing claims and trend data alongside benchmarking and industry analyses throughout the year can help you and your broker project, within a few percentage points, how your renewal rate will increase or decrease.
Your benefits broker should be analyzing your program data on an ongoing basis to estimate the renewal rate and avoid a nasty surprise. The broker should also challenge the first carrier rate offered — there’s almost always room for negotiation. Doing pre-renewal work throughout the year can help you prepare for plan changes and position you to make the best decisions for the organization and employees. It will also help facilitate a smoother open enrollment season.
Keep new benefit options simple. After reviewing benefits and trends, you may find that adding a pre-tax benefit, such as a health savings account, flexible spending account or a health reimbursement account, can help the organization save money while giving employees a way to better plan their healthcare and finances. However, with their alphabet soup acronyms, HSAs, FSAs and HRAs are confusing. Even if you did a whole campaign on the topic for the last open enrollment season, it makes sense to repeat it.
The same goes for voluntary benefits: keep them simple. There is a dearth of voluntary benefits available for a multi-generational workforce. While adding voluntary benefit sounds appealing —especially if your core benefits are changing — which products are right for your organization? Survey your employees to get their feedback; they’ll appreciate that you’re asking for their opinion. Once you tally the feedback, resist the urge to offer a slew of voluntary products. Keeping it simple means adding the one (or a few) that are most desired by your workforce.
Voluntary benefits require significant education and engagement — especially products that are newer to the market. (Student loan debt assistance is a good example.) When it comes to a successful voluntary benefits program, timing is everything. If you plan to add student loan debt repayment, pet insurance, long-term care, or any other new voluntary product, the open enrollment season is not the recommended time to do it. Running a voluntary education and communications campaign and open enrollment off cycle will allow employees to focus on their main menu of options during the open enrollment season, then decide later what they want to add for “dessert.”
Educate. Rinse and repeat. You offer employee benefits to help recruit and retain the best talent. But if your employees don’t understand the core and voluntary benefits you offer, you’re unlikely to increase engagement or retention — and you might even see costs rise.
The health and welfare benefits landscape is changing drastically, which means the onus is on the employer and the HR department to educate the workforce on how the plan is changing (if at all). This means putting decision-support tools, such as calculators, in employees’ hands to help them estimate how much insurance they will need to make the best decision. You could run a whole campaign around that topic.
In addition, try using new methods of communication such as social media messages, text messaging, small-group meetings, your company’s intranet, and one-on-one sessions to help employees avoid mistakes at decision time.
Create a 21st-century experience. Manual benefits enrollment and tracking is so 1999. Moving away from paper-based enrollment will save trees — and possibly your sanity — during the open enrollment season and throughout the year. Benefits administration technology allows employees to ponder their options and enroll at their leisure. A decision-support platform enables better enrollment tracking and eliminates typos and mistakes that can pose major issues for the plan participant and the HR team.
Benefits administration technology provides checks and balances that streamline important tactical functions. Mistakes can put you in a world of hurt when it comes to benefit laws and regulations, such as missing those all-important annual HIPAA and COBRA notifications. You can avoid potential government penalties, fines and employee lawsuits with automatic notifications by the benefits administration platform. Technology can also help you identify ineligible dependents, provide employee data to a COBRA provider if employment ends, interface with your payroll platform — the list is almost endless.
The bottom line: Employees won’t enroll in what they don’t understand — which could lead them to choose a benefits plan that is more expensive, or with fewer options, than what they need. Being prepared for open enrollment season, keeping plans simple, focusing on employee education and communications (and the employee experience) can help mitigate issues for plan participants and HR.
Putting all of your ducks in a row throughout the year will ease headaches during the open enrollment season. You might even be able to take a lunch break.
SOURCE: Newman, H (30 August 2018) "Here’s how HR pros can breeze through open enrollment" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-human-resources-can-breeze-through-open-enrollment?feed=00000152-a2fb-d118-ab57-b3ff6e310000
5 SIMPLE STEPS TO DEVELOPING A COMPETITIVE PAY PRACTICE
Have you struggled with employee engagement and building a competitive pay practice? Fortunately, HR Morning has provided us and you with this awesome article, including five simple steps toward a competitive pay practice. Read more below.
In today’s competitive environment, employees are more educated than ever before about the current salary rates in their location and industry. If you want your business to remain competitive, and retain top talent, you need to stay one-step ahead of your competition, and have a solid pay strategy that’s based on accurate salary data – not speculation.
Here are a few simple steps to get you closer to a compensation strategy that retains talent and keeps your company ahead of the curve.
1) Get a Pulse on Your Market
After a series of wage declines in 2009 and 2010, a number of industries are now seeing continual salary growth across multiple industries and locations. If your company’s compensation plan is based on the trends in those leaner years immediately after the recession, it’s probably time to revisit your pay strategy. Or you may be at risk of losing talent to competitors who’ve more quickly adapted to shifts in the market. Keep an eye on the PayScale Index to keep track of quarterly trends in pay by location, industry and job category.
2) Benchmark Your Job Positions
It’s great to have a pulse on the overarching pay trends in your industry and area, but it’s another thing to have confidence that you’re actually paying top employees at the right rates for their job. By engaging in at least once-per-year salary benchmarking, you’ll be able to identify employees who are at a “high flight risk” of turnover, and be able to make smarter decisions about where you allocate your labor budget. Download PayScale’s How to Perform Compensation Benchmarking and Salary Ranges whitepaper for more information.
3) Develop a Compensation Plan
Often times, businesses fear that having a compensation plan will limit their ability to make good business decisions, so they skip building a compensation plan in favor of fewer rules and less structure. But without a formalized compensation plan, companies often miss an opportunity to structure their pay decisions in a way that support business goals. As companies grow, the costs of compensation continue to rise, and without a formalized plan in place, companies often experience problems with pay inequities, employee retention, and engagement. Simply put, it’s easier, and more cost-effective to take small steps toward developing a smart compensation plan now, than it is to alter your course later down the line.
4) Identify Pay Inequities
Some people live by the motto, “What you don’t know won’t hurt you.” That’s a motto your organization cannot afford to live by when it comes to internal pay inequities. Without a formalized comp plan, it’s often common for pay inequities to develop across organizations and departments. Those pay inequities can most definitely hurt you and your organization in the form of heightened turnover, over payment, and even litigation. Learn how to identify and resolve these inequities with PayScale’s guide to pay inequities.
5) Communicate Your Compensation Strategy
If you go through the process of creating a compensation plan, don’t forget to let your employees know about it. In theory, your compensation strategy should reiterate and support your business goals. So, it’s important to communicate to employees how their work aligns with the goals of the organization, and how their compensation reflects that. If you share with your employees, and make your investments in talent clear to them, you’ll be surprised by the positive effect it has on employee morale. Check out PayScale’s Four Tips for Communicating Your Compensation Plan to Employees to help you get started.
Need help developing a competitive compensation strategy, or maintaining salary ranges for your workforce? PayScale offers access to the largest online salary database in the world. With data that’s updated on a daily basis, and software designed to help you maintain salary ranges, benchmark jobs, and allocate raises, PayScale is the choice for businesses who value accuracy and ROI in their pay practices. Request a demo of PayScale compensation software to learn how PayScale’s fresh, detailed data can support good compensation planning.
Read the original article here.
Source:
HRMorning.com (N.D.). "5 SIMPLE STEPS TO DEVELOPING A COMPETITIVE PAY PRACTICE" [Web blog post]. Retrieved from address https://pbpmedia.staging.wpengine.com/5-simple-steps-to-developing-a-competitive-pay-practice/
Grab the sanitizer, you'll want it after you read this
The digital age is giving germs a new breeding ground. But a little extra cleaning can narrow the playing field according to this article from forbes.com.
When it comes to germs, the gold standard for grossness is the bacteria brewing in our bathrooms.
A variety of studies and reports over the years have put the average bacteria per square inch on a toilet seat somewhere between 50 and almost 300 for household potties and over 1,000 for the public varieties. Yet our own handheld electronics harbor even more bacteria than that.
Smartphones Your smartphone is home to your photos, music, contacts, productivity apps and odds are at least one game featuring a bird, zombie, fruit or farm. Oh, and there’s something else on your smartphone, too — loads of fecal coliforms. Joining the coliforms are Streptococcus, Staphylococcus aureus and a host of other -ococci.
A 2013 project at the University of Surrey perfectly illustrates the situation.
Bacteriology students made imprints of their phones in Petri dishes, and after three days, they saw examples of many of the aforementioned bacteria — plus one particularly hairy case of Bacillius mycoides. It’s really not surprising that the device that goes everywhere from public transportation to public restrooms to not-so-public germ repositories (aka our own homes) is a hot bed for bacteria.
Even back in 2012, when iPhones only offered us 4.5 inches of germ-covered surface,University of Arizona microbiologist Chuck Gerba found cellphones carried 10 times more bacteria than most toilet seats. In 2013, Mashable put that number much higher, claiming that our phones may boast a whopping 25,107 bacteria per square inch. But your smartphone is just one of the worst offenders, not the only one, as this black-light-enhanced demonstration from British business services group Initial reveals.
Here are four more gadgets to rival any restroom when it comes to germs:
Tablets/e-readers — Just think of them as smartphones with fewer features and more surface area when it comes to the germ load tablets and e-readers pack. One iPad tested by British consumer magazine Which? found 600 units of Staphylococcus aureus alone.
Game controllers — With almost 5 times more bacteria than your toilet seat, your game controller has probably still seen scarier stuff (like that boss faceoff with Sephiroth). Still, E. coli is among the potential offenders.
Keyboards — Your keyboard could be home to anywhere from three times more bacteria than your toilet seat to almost three times that of a public toilet seat. Some studies found 3,000 bacteria per square inch on computer keyboards and 1,600 on the average computer mouse.
Remote controls — While likely cleaner than a public toilet seat, remotes still boast a bit more bacteria than some home-throne estimates with 70 present per square inch.
So how do we handle all of this bacterial buildup?
Step one: Remember the bathroom is no place for a phone (that you don’t want covered in fecal coliforms).
Step two: Wash your hands before handling your devices, or at least use a hand sanitizer.
Step three: Use gadget-friendly wipes to keep your favorite handhelds tidy.
But if you only do one thing, let it be step two. After all, you know what else has more bacteria per square inch than a toilet seat? You do. A lot more.
Protect trade secrets, avoid the burn
Original story posted by Roy Maurer on Society for Human Resources Management website.
An appellate court recently struck down a company’s trade secrets misappropriation claims because the company failed to protect its intellectual property (IP) as confidential or proprietary.
The Massachusetts Appeals Court ruled in Head Over Heels Gymnastics Inc. v. Ware that defendant Harriet Ware did not steal her former employer’s trade secrets because the information at issue was never identified as such.
Ware was hired as an at-will employee in 2006 to work with gymnasts at Head Over Heels gymnastics academy in Norwell, Mass. When she accepted the position, Ware acknowledged that she had received and understood the employee handbook, which failed to include a noncompetition covenant or any mention of trade secrets.
Head Over Heels maintained a list of the people who trained at the school, including their names, addresses, telephone numbers and e-mail addresses. The information was available to all employees and was never identified as confidential or proprietary.
When Ware was terminated in 2012, she opened an academy of her own, taking approximately 30 Head Over Heels gymnasts with her.
The company sued, alleging that Ware misappropriated its trade secrets, violated her duty of loyalty by contacting its customers and unfairly competed with it.
The court held that because Ware was an at-will employee, she owed Head Over Heels no particular duty of loyalty and was free to “plan to go into competition with ... her employer and take active steps to do so even while still employed.” Further, absent a noncompetition agreement, Ware’s ability to compete with Head Over Heels was not constrained. Lastly, the court determined that Ware did not misappropriate her employer’s trade secrets because the school’s customer list was not legally considered a trade secret.
The court said that in determining whether information is proprietary to a business, “we look to the conduct of the parties and the nature of the information.” A determination about confidentiality is based on several factors, “including the extent to which the information is known outside of the business, the extent of measures taken by the employer to guard the secrecy of the information and the ease or difficulty with which the information could be properly acquired.”
Head Over Heels argued that everyone at the company understood that its customer list was intended solely for the purpose of the business and was neither publicly known nor available.
Nevertheless, the court ruled that, “as a matter of law, the [customer lists] are not trade secrets or confidential proprietary information. It is undisputed that the [customer lists] were available to all staff and employees and were distributed to Head Over Heels’ gymnasts and their families. The broad dissemination and availability of the [customer lists] indicates that Head Over Heels was not trying to guard the secrecy of the information. Importantly, much of the information found in the [customer lists] was readily available in the public domain and could have been easily obtained.”
The court therefore deemed Head Over Heels’ trade secret claims “unrealistic.”
Employer Takeaways
What can employers do to protect against confidential information being used by a former employee? “For starters, if you have confidential information, let everyone with access to it know that it is confidential, either through a designation in the company handbook, when they are given access to the information for the first time or any other obvious way,” said Shepard Davidson, a partner at Burns & Levinson LLP based in Boston.
Limiting access to the information and keeping it secure are additional ways to preserve confidentiality, he said. Training and reminding departing employees about their confidentiality obligations during exit interviews are also good ideas.
“The good news is that a company’s efforts in this regard are measured by a standard of reasonableness, not perfection. So if you have information that you believe is important, confidential or propriety, take some time to set up reasonable systems to protect that information,” Davidson said.
Follow Roy Maurer on Twitter at @SHRMRoy
The Viability of Banning Salary Negotiations
Originally posted by Joanne Sammer on Society for Human Resource Management's website
When Internet company Reddit decided in April 2015 to ban all salary negotiations for both new hires and existing employees, the move garnered a wave of media reporting—and social media discussion.
Although Reddit is not the only company to adopt this policy, the difference is that Reddit tied its salary negotiation ban to an effort to close the pay gap between male and female employees. The fact that Reddit’s then-CEO Ellen Pao had just lost a high-profile gender discrimination lawsuit against a Silicon Valley venture capital firm gave the announcement particular significance. Three months later, Pao resigned as interim CEO under pressure, with some lauding her as a fighter against sexism while others charged her with mismanagement during her controversial eight-month tenure.
Regardless of Pao’s troubles, her decision to ban salary negotiations fired up the conversation about pay disparities. Now, it is fair to ask some key questions about the viability of this no-negotiation approach to compensation.
Reddit, which has about 70 employees, operates in the Internet/technology space in Silicon Valley. Although the company had operated with an informal no-negotiation policy, it was Pao who tied it to the gender pay gap. “She provided more structure to the way it works and formalized the policy,” according to Heather Wilson, a company spokeswoman.
Under the formal policy, Reddit offers new hires and employees set salaries based on competitive market rates for the positions they hold. “The employee is given a choice within that salary to select either more pay or more equity,” Wilson noted. “But the number is the same, just the make-up of pay-to-equity can be determined by the employee.”
Although Reddit is open to changing the policy in the future if circumstances change, “so far it seems to be working quite well,” Wilson said. “Reddit is known as a good place to work and has a strong internal culture, and the pay policy is a part of setting that culture and is in line with the company's core values.”
No Negotiating = Better Relationships?
A key question about any effort to ban salary negotiations inevitably raises questions about the impact on recruitment. Does banning negotiations place an employer at a disadvantage in the hiring process?
For Reddit, the reaction has been positive. “Since news of the policy has spread, Reddit has seen an uptick in candidates seeking to work at the company citing the policy,” according to Wilson.
Gender aside, there are plenty of people who are uncomfortable negotiating and could be attracted to an organization where negotiating salary is not expected. Perhaps that is why other organizations have also had success in hiring after banning negotiations.
Fathom Healthcare, a Valley View, Ohio-based firm that provides marketing services for hospitals and health systems, has banned salary negotiations but not as a way to close pay gaps. The company simply sees negotiating as a negative in the employment relationship.
Negotiating salary “starts the [employment] relationship on a note of distrust and dishonesty,” said Bill Balderaz, president of Fathom Healthcare. “If the company leads with a lower number than it is willing to pay, it is saying, ‘I think you are worth x, but I'm going to offer y and see if you'll take it.’ ”
On the other side of the table, Balderaz sees candidates who name one salary level but settle for another as “leading with a lie.”
To avoid this, Balderaz suggested that employers make only one best and final offer, based on a fair level of compensation. Fathom Healthcare, which has about 40 employees, has had its no-negotiation policy in place since its inception in 2006 and has made 60 or more hires at different levels and with different skill sets since then, with no trouble attracting candidates, according to Balderaz.
Balderaz noted that the company’s decision to make exceptions to the no-negotiation policy for a few candidates over the years has demonstrated the value of the ban. “We made a handful of exceptions in the early days and regretted it each time,” he said. “Salary negotiations inherently set a tone of distrust and [establish an] us-vs.-them attitude.”
Transparency Is Key
In announcing Reddit’s policy, Pao specifically highlighted the idea that the no-negotiation policy would help close the gender pay gap. Her rationale is that women are uncomfortable negotiating pay, frequently don’t negotiate at all and are often perceived negatively when they do negotiate.
Yet some critics of salary negotiation bans argue that these employers are fighting the wrong battle, and they’ve pointed out that the pay gap battle is not limited to gender. Significant pay gaps also exist for black and Hispanic workers, for instance, regardless of gender.
“You have women and people of color who are historically underpaid relative to their white male counterparts,” said Fatimah Gilliam, founder and CEO of The Azara Group, a leadership consulting firm in New York City. “I understand the intent to want to equalize things but I do not believe that the answer is to ban negotiation altogether.”
Moreover, banning salary negotiations does not necessarily guarantee fairness. There is nothing stopping an organization or certain managers from continuing to make higher, nonnegotiated pay offers to some applicants and not to others.
That is why some argue that increasing the transparency surrounding market-based pay levels is the more pressing need. “What enables people to get more money is having a better sense of what companies are paying,” said Gilliam. “If companies simply ban salary negotiations, they instantly have even more leverage. Saying that you cannot negotiate your compensation just limits the amount of leverage you have as a candidate to advocate for yourself.”
While certainly not widespread, some employers are starting to open the compensation books. Social media company Buffer publishes its open equity formula online, including an explanation of each element used to set pay and equity levels and a spreadsheet listing the compensation level and value for all 37 employees, as well as salary and equity formulas and calculations. This transparency effort began last year with the disclosure of the salaries of all employees.