Working interviews: How hiring trend can cause compliance issues
The federal government prefers that companies do not bring in applicants for a working interview and without paying them. Continue reading this blog post to learn how this hiring trend can cause compliance issues for companies.
News flash: The feds don’t like it when you bring in “applicants” for a “working interview” – and then refuse to pay them for the work they perform.
The lesson is going to cost a Nashville dental practice $50,000 after a settlement in federal district court.
The practice will pay $50k in back wages and liquidated damages to 10 employees for FLSA minimum wage, overtime and recordkeeping violations.
According to the DOL’s Wage and Hour Division, Smiley Tooth Spa:
- violated the federal minimum wage requirements by requiring candidates for hire to perform a “working interview” to conclude their application, but failed to pay the individuals for those hours worked
- failed to pay registered dental assistants and hygienists time-and-a-half for hours worked over 40 in a workweek
- authorized their accountant to falsify and alter time and payroll records to make it appear that the employer was paying proper overtime for all hours worked, and
- periodically required employees to attend training during their scheduled lunch breaks without paying them for that time.
THE CARDINAL RULE
Although it’s hard to believe that any employer could think such an approach could fly in this day and age, this case is a good reminder that people who perform duties for the benefit of any organization are, almost universally, entitled to be paid.
Even if they aren’t yet considered an “official” employee, they’re performing the work of one, and must be paid for it.
Some good news: With working interviews, employers don’t necessarily have to pay the position’s advertised salary. The law only says workers must receive at least minimum wage for their work, so companies do have some flexibility.
SOURCE: Cavanaugh, L. (1 March 2019) "Working interviews: How hiring trend can cause compliance issues" (Web Blog Post). Retrieved from https://www.hrmorning.com/working-interviews-how-hiring-trend-can-cause-compliance-issues/
4 signs top talent may leave: Best strategies to keep them
Landing new top talent in today's tight labor market is no easy task, making retention an important priority. Read this blog post for four signs that your star employee might be leaving.
There are few things an HR pro dreads more than when a great employee hands in their notice. The challenge of having to replace them can be overwhelming.
And in this tight labor market, landing new top talent is no easy task, making retention an important priority.
Luckily, there are usually signs a valued employee might be thinking about jumping ship, and some proactive steps you can take to try and keep them.
Subtle signs
Experts agree there are a lot of reasons great employees decide they need to move on. Apart from salary, boredom and a lack of recognition and engagement are the biggest issues causing workers to seek employment elsewhere.
While it might seem sudden and jarring when an employee announces their resignation, there were most likely subtle signs it was coming.
Here are the main ones to watch out for, according to Janine Popick, Chief Marketing Officer of Dasheroo:
1. Private calls during work. Everyone needs to take private calls in the office from time to time, but if someone seems to be answering the phone in hushed tones and dashing to the nearest empty office frequently, that’s probably a sign your employee is interviewing somewhere else.
2. Declining work ethic. Many employees mentally check out before they leave a job. While there could be personal issues causing a change in attitude, if an employee seems less enthusiastic and is consistently only doing the bare minimum, they’re most likely ready to move on.
3. Lack of socialization. Someone actively wanting to leave probably won’t go out of their way to make chit chat with co-workers or be overly friendly anymore. Pay attention to any employee who’s suddenly keeping to themselves more than usual.
4. More activity on social networks. If you’re worried an employee may be getting ready to leave, take a peek at their online presence. Is their LinkedIn page completely updated and polished? Are their tweets looking more professional than personal? This kind of online activity could be an indicator an employee is trying to make a good impression on a new employer.
While it may be too late to convince some people to stay, there are still steps you can take to prevent talent from leaving in the future, according to HR Daily Advisor.
Presenting new challenges
Boredom is what’ll disengage your workers the fastest and cause them to seek a new project elsewhere. To get a basic idea of where your employees stand, an engagement survey is a great tool to see who needs a change.
An easy fix is to ask your people if they’d like to tackle different types of assignments. The more you keep things fresh for them, the more likely they are to remain engaged.
Another way to avoid boredom: See who’s due for a promotion. If someone’s been stuck in the same position for so long they’ve grown tired of it, see if there’s a new opportunity for them. The new responsibility could be just what they needed to respark their enthusiasm.
Recognition, feedback
When your people don’t feel appreciated, they’ll have no qualms about leaving the company. To correct this, it’s important to give frequent feedback and let people know when they’ve done a good job.
Gallup research shows employees who are praised are more committed to their work and organizations. Even just quick feedback, positive or negative, can motivate employees and boost their engagement.
Extra communication can only make employees feel more connected to the company.
SOURCE: Mucha, R. (1 February 2019) "4 signs top talent may leave: Best strategies to keep them" (Web Blog Post). Retrieved from https://www.hrmorning.com/4-signs-top-talent-may-leave-best-strategies-to-keep-them/
How to offboard employees with care
How are your onboarding and offboarding programs? While many employers understand and accept the importance of having a great onboarding program, many lose sight of their offboarding program. Read on for more on how employers can offboard employees with care.
Employers understand the importance of onboarding new employees. A Glassdoor report found a strong onboarding process improved new hire retention by 82% and improved productivity by more than 70%.
Talent professionals place more emphasis than ever on creating positive employee experiences — and that pressure starts from an employee's first day. But should that same attention be given to an employee's last day? In a tight labor market, where referrals from former employees and "boomerang" employees are valuable sources of talent, HR might consider: What are the benefits of creating a strong offboarding process?
Offboarding: part of the employee life cycle
Onboarding has long been an important point in the employee life cycle, while offboarding has always been an afterthought, Jen Stroud, HR evangelist and transformation leader for ServiceNow, told HR Dive. But now, as the entire employee lifecycle is getting attention, offboarding is coming into focus, she said.
"If you have a great onboarding experience and you bring people to work for you and their employee experience and offboarding experience is poor, you spent a lot of money for onboarding that is wasted," she added.
Former employees, particularly those who left voluntarily, are ambassadors of your company's brand, Moses Balian, HR consultant at Justworks, told HR Dive. "A smooth and amiable offboarding is so valuable in maintaining employees beyond active employment," he said. "You never know when you want to rehire someone."
Offboarding may be fundamentally important to keeping potential boomerang employees feeling positive about the organization, maintaining good employer branding, establishing a network of former employees or helping current employees feel engaged despite co-workers' departures. Since offboarding is the final interaction a departing employee may have with an organization, how they're treated — good or bad — during that process can remain top of mind.
Offboarding involuntary separations respectfully
Employers may have a planned-out process for involuntary separations. Even if those employees are not the ones you'd rehire, they still should be treated with compassion, Angela Nino, founder of Empathic Workplace, told HR Dive in an interview.
"Planning for that is important, not just squeezing it into your day," Nino said. From making sure the conversation is done privately, determining if security or police will need to be on site, ensuring the employee has their personal belongings and can get to their car or has transportation home — these are important steps in the offboarding process. It's important that the termination conversation is not a shaming experience for the employee, Nino added. "Treat that person with respect and dignity, respecting the fact that [it is] about to be one of the worst days of their life."
With workplace violence as a concern, handling an involuntary offboarding process carefully is essential. "If you have been in HR, you know that the way that we treat someone on their last day of work or the way that we treat someone during a termination can be [the difference between] whether or not they bring a gun," Nino said.
But mitigating the potential of workplace violence needs to start before the termination meeting, David Moore, partner at Laner Muchin, told HR Dive. "I think it goes all the way back to the process and events leading to an involuntary separation," Muchin said. "Have we treated this person fairly? Have we given them notice of the performance or conduct issues? Have we given them fair opportunity to turn it around? Have we documented that to them so they're not able to say in their mind that 'no one told me that this was going to happen?'"
Offboarding voluntary separations: taking advantage of opportunity
An involuntary offboarding process may be prone to mistakes (i.e. benefits forms filled out and submitted), but a voluntary offboarding process is prone to missed opportunities, Balian said. Exit interviews for voluntary resignations are frequently a formality and employees don't feel their voices are heard. Balian noted that when he worked as in-house HR and conducted exit interviews, he would ask resigning employees, "are you running to or from?," to gauge their reasons for leaving. Combined with additional data gathered through surveys, this information may give HR an opportunity to identify and correct problems. Exit interviews also give employers a chance to show gratitude to the employee and interface with them on a human level, Balian said.
Just as a smooth onboarding process involves ensuring a new employee has a company ID, a workspace and appropriate equipment, a smooth offboarding process, whether for involuntary or voluntary reasons, makes sure those same details are planned for the outgoing employee, Moore said. Will the employee still receive a commission or bonus? When does the next paycheck arrive? Is severance offered? What is the benefits coverage?
Regardless of whether an employee leaves on their own or is terminated, the offboarding process can affect the employee's co-workers as well. If an employee has a poor offboarding experience and tells former co-workers, or if co-workers witness a poor offboarding process, it undermines the value the organization places on talent, Balian said.
It is critical not to think of offboarding as being in a silo or a one-off workflow process, Stroud said. "It is really about the lifecycle of an employee." Organizations that have the greatest impact have added offboarding processes to their considerations of employee experience, Stroud added. To initiate an offboarding process, start by examining the steps in the employee lifecycle and consider what actions are needed to create the best employee experience.
"All it takes is a little bit of time and investment and intention on behalf of your HR team," Balian said. "It doesn't cost anything except effort."
SOURCE: DeLoatch, P. (9 April 2019) "How to offboard employees with care" (Web Blog Post). Retrieved from https://www.hrdive.com/news/how-to-offboard-employees-with-care/552053/
The talent textbook: 4 ideas for giving better feedback
Managers enjoy giving good news during a review, but how can reviewers take the sting out of negative feedback or even constructive criticism? Read this blog post from HR Drive for four ideas on giving better feedback.
"You got a promotion! You get a raise!" It's almost as fun for managers to say it as it is for employees to hear. Giving good news during a review is easy, but how can reviewers take the sting out of constructive — or negative — feedback?
Coaching an employee who needs to improve or who isn't quite ready for more responsibility, higher pay or leadership opportunities is perhaps the most difficult aspect of performance management, so in this installment of the Talent Textbook, we'll offer four guiding principles from experts for giving better feedback.
Many talent experts today recommend retiring the annual performance review and replacing it with frequent feedback instead. Unlike annual reviews, continuous feedback sessions can lessen anxiety for managers and workers both, making the conversations less formal and more focused. They can help send the message that the company culture is one of listening and responding to workers' needs — and they help talent pros and managers minimize the risk that workers will be dissatisfied with or surprised by the discussion.
"That feedback should be coming constantly," said Jim Flynn, CHRO at Sitel Group. "Everyone should know where they stand constantly."
Flynn believes that frequency transforms the feedback session into a chance to reflect and recalibrate on priorities and goals. It can also ensure that workers are aware of their progress toward a pay increase, promotion or increased responsibility because their manager has reminded them more recently.
For Jodi Chavez, group president professional staffing group at Randstad Professionals, Randstad Life Sciences, focusing up frequently keeps managers better informed about workers' desires and expectations, potentially preventing turnover and keeping the feedback session from devolving into a bidding war.
"If an employee has a desire and a belief that they want this promotion or to be in that role, there can be instances where you won't be able to undo their desire to leave," she said.
"It can be easier if you catch that earlier on in the process — so constant communication, so they know what you're looking for and you can keep coaching them, is important. It only becomes an issue when no one knows that it's a desire until later in the process."
Just as you wouldn't assess business goals and objectives only once a year, talent pros should expect to assess people often to curb employee disappointment, Flynn said, and this is especially true for employees early on in their careers.
#2: Give a heads up and an open ear
There's still stress for talent pros and managers even when preparing to deliver feedback in a more casual session: Will they feel insulted? Will they disengage afterwards? The fears are relevant, so that's why the way reviewers deliver feedback matters as much as the frequency.
Chavez and Flynn agree that managers and talent pros should begin conversations with what they're going to cover in the session. They can continue to be transparent with workers by providing the reasoning behind the feedback and their expectations for the future, Flynn said.
"I think the old sandwich approach, employees see through that," Flynn said, referring to the tactic of "sandwiching" a criticism between two compliments. "I would rather be more upfront and honest, and that should be the manager's approach to everything."
In that same realm, honest feedback should never come with bias or malice attached. Jeannie Donovan, VP of HR at Velocity Global, wrote in an email to HR Dive that "clear is kind" when it comes to constructive feedback. Whether the manager is discussing goal setting or areas that need improvement, the employee's pay grade or their potential for a future promotion, Chavez said the same principle applies: stick to the facts and strive for objectivity.
"For new talent managers, I think it's important to stay very factual and to hear the employee," she said. "Don't lead with false promises, just very cut and dried — 'The role that you're in and the experience that you have puts you at this level [of pay.]'"
That's not to say that a manager should shut down further discussion, Chavez said. Discussing an employee's strengths and listening to their desires can help them visualize a realistic and reachable future for themselves within the organization.
"It's really important to sit down and talk about the positive things that the employee brings to the table — it's a non-defensive position to put the employee in," Chavez said. "Try to understand what is important to them, and let them tell you. 'I may not be able to be a supervisor, but I'd still like to learn more about how to manage people' — once you know that as a manager, giving them pieces that help fulfill that helps them stay engaged."
#3: Support your managers
Talent pros should focus on workers when they consider their feedback best practices — but managers need their attention and expertise, too. As Flynn put it, "sometimes you have to carry cold water warmly" when delivering feedback, and managers need encouragement, support and guidance from talent pros to pull it off.
"A good HR business partner should understand when those difficult conversations could be occurring," he said, noting that this partnership goes both ways. "If a manager is aware that it might be a tough conversation, it's always a good idea to give your HR business partner a heads up so they can be attuned."
Providing tools or suggestions for approaching reviews can help managers to execute conversations with employees with clarity and mutual understanding. For example, Donovan coaches her managers on the "stoplight exercise," which can be helpful when an employee is making a case for a promotion. She said that managers can take a pen to the job description for the role their charge would like to be promoted into — highlighting current responsibilities in green, responsibilities they have a slight grasp of in yellow and tasks they've never touched in red.
"This is a straightforward way to identify strengths, weaknesses, and gaps to assess readiness for that promotion. Further, if this exercise yields gaps, the results indicate where exactly to focus on growth," she wrote.
Donovan echoed Flynn's belief that managers and talent pros should partner in the feedback process, and that debriefing afterwards is as critical for retention as it is for employee satisfaction.
"Have that second set of eyes to be aware and look for signs of disengagement or other harmful behavior," said Flynn. "Some managers are hands off, so if they've had that difficult conversation make sure you're maintaining that personal connection and increasing your frequency of touch."
#4. Shift the focus forward
The last thing constructive feedback should sound like is a lecture. Reviewers should reiterate that the feedback is in service of plan to get that employee a promotion, salary bump, conference excursion, a chance to lead an internal workshop or whatever the goal is in the future, Chavez said.
"They should feel positive about what they have contributed and what they can continue to contribute," she said. "[It's about] what you can do to help foster that growth for them."
Flynn's approach is similar, keeping the conversation productive and goal-oriented: "I probably spend 25% of the time talking about past performance, and goals reached and past behavior, but I like to focus more on what are the strengths, what are weaknesses and where the potential is."
With the future in mind, Chavez points out that a transparent, frequent and collaborative review process could prevent promising talent from leaving down the road. It can even have ripple effects across an organization, according to Donovan, who saw that workers had a clearer vision of their goals when she transitioned to more continuous feedback.
"As a result of our laser-focus on more frequent performance conversations, our employees have a roadmap of what needs to be done and when, and this approach lends itself to higher productivity and a general sense of purpose across the board," Donovan wrote.
SOURCE: Fecto, M. (10 April 2019) "The talent textbook: 4 ideas for giving better feedback" (Web Blog Post). Retrieved from https://www.hrdive.com/news/the-talent-textbook-4-ideas-for-giving-better-feedback/552276/
HR’s newest mission: Building a culture of trust
How can employers build employee trust? Fifty-eight percent of people report that they trust strangers more than their own bosses, according to a Harvard Business Review survey. Read this blog post to learn more.
NEW YORK -- In an environment of workplace uncertainty and change, building or even just maintaining trust can be a herculean task for employers.
Indeed, 58% of people say they trust strangers more than their own bosses, according to a Harvard Business Review survey. Trust is a critical component to creating a happy and effective workplace, Andrew Ross Sorkin, co-anchor of CNBC’s “Squawk Box,” said Tuesday at CNBC’s @Work Talent and HR event in New York City.
So how can HR professionals build employee trust? It begins with getting them to believe they have their employees’ best interests at heart.
“I don’t think we’d ever be satisfied until everyone felt that way,” said Jayne Parker, senior executive vice president and CHRO at the Walt Disney Company. “We do a lot of research to look at this because we know how important trust is.”
About 30% of workers aren’t happy with their jobs, according to a recent CNBC/SurveyMonkey survey. Factors contributing to an employee’s sense of work satisfaction are pay, opportunity, autonomy, recognition and meaning, Jon Cohen, SurveyMonkey’s chief research officer, said during another session at the event.
“Workers want to trust their managers and believe they want them to succeed,” Cohen said. “Of the employees who don’t trust their boss, two-thirds said they’d consider quitting.”
With a company the size of Disney, developing teams and building trust within those individual units can translate to overall company trust. Disney has worked hard, Parker said, to make sure employees can say, “I trust the person I work for. I trust they’ll treat me with sincerity.”
Indeed, 65% of employees who don't trust their direct supervisors to provide them opportunities to advance their careers have considered quitting their jobs in the last three months, according to the survey, which was discussed at the event. Conversely, just 17% of people who trust their supervisors "a lot" to advance their career have considered quitting.
SurveyMonkey asked 9,000 U.S. workers whether they were satisfied with their jobs; 85% of respondents said they were “somewhat satisfied” with their work. However, these results shouldn’t give employers comfort, says Cohen. Those employees still have plenty of reasons to look for new jobs — uncertainty being one of them.
“The happiness people report at work is real, but the anxiety is real too,” Cohen says.
Disney recently closed its $71.3 billion deal to acquire large swaths of Fox’s entertainment segment. As such, there is insecurity within the offices of both entertainment giants, Parker explained.
As the closing date approached, reports started circulating that employees of both companies were expecting layoffs. In a situation like this distrust starts to emerge and people begin to ask “backstabbing questions,” Parker said. Employees want to know who will have their back. It’s up to the employer to be as transparent as possible and be honest that there will be changes made.
The employee may not happily skip off after this conversation, but they can have a better understanding of what is going on, easing the tension of the situation.
“We spent the past year focusing on sincerity and authenticity,” Parker said of the merger. “We have to be honest that there is going to be change in the company.”
SOURCE: Schiavo, A.; Webster, K. (3 April 2019) "HR’s newest mission: Building a culture of trust" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/hr-mission-to-build-a-workplace-culture-of-trust?brief=00000152-14a7-d1cc-a5fa-7cffccf00000
How to Develop an Attitude of Gratitude Towards Employees
Are you planning on boosting employee engagement this year? A strong employee recognition program can help set your company apart in today's tight labor market. Read this blog post from SHRM to learn more.
Many companies plan to boost employee engagement in 2019. With benefits for both employees and employers, the strategy is easy to understand. What’s more, a strong employee recognition program can set your company apart in a tight job market.
Indeed, we find that demonstrating pride in our employees leads them to take pride in our company. A human-centric approach creates a company culture that puts workers first. Employees are more likely to trust (and feel trusted by) companies that recognize their value.
Putting employees first can also pay big dividends to the bottom line– a strong connection exists between employee trust and company performance. Companies with high degrees of worker trust consistently outperform in terms of productivity, innovation and retention. Happier employees also contribute to a positive company culture.
That positive culture can stretch far beyond the office walls. When job seekers research your company on social media and third-party review sites – something nearly everyone does these days – they will see positive feedback from your employees. This sets your company apart from the crowd and can help attract top talent to your organization.
Creative ways to show you care
When you recognize the value your employees bring, you demonstrate the company’s values of gratitude and appreciation. Don’t just assume employees already know you think they are amazing, show them. Here are some ideas to help you acknowledge employee contributions:
- Reserve a designated “thank you” time during staff meetings – This provides a chance for managers and team members to express gratitude towards each other.
- Implement a weekly email “shout-out” campaign – Spread recognition of top performers to the entire firm on a weekly basis.
- Recognize individual successes with quarterly awards – Prizes for notable achievements and employees who consistently give 110 percent cannot be overvalued.
- Provide special well-being perks to all – Ideas include reimbursing employees for fitness classes, books or purchases of apps that promote healthy living. Provide periodic yoga classes, chair massages or meditation sessions.
- Plan special team celebrations after wrapping up a big project – Consider generational differences and crowdsource ideas so employees get something they really want.
- Arrange annual team retreats packed with fun activities.
When companies celebrate their employees, everyone wins. Employees are happier. There is less burnout and turnover. We have seen a myriad of bottom-line benefits from on-going employee appreciation programs at Indeed. Recognition truly transforms workers, teams and companies.
SOURCE: Wolfe, P. (4 April 2019) "How to Develop an Attitude of Gratitude Towards Employees" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/how-to-develop-an-attitude-of-gratitude-towards-employees
What Employers Need to Know About Successful Second Chance Hiring
With today's unemployment rate at the lowest it's ever been, many companies are beginning to explore untapped talent pools and unlikely candidates. Continue reading this blog post from SHRM to learn more.
Between the First Step Act bill being passed and SHRM's efforts towards Getting talent back to work, there are a lot of discussions opening up around second chance hiring. Before, it was pretty standard to assume that if you checked that box of "have you been convicted of a felony," you weren't going to get the job.
Today, our unemployment rate is the lowest it's ever been - forcing companies to explore untapped talent pools and unlikely candidates. As the Founder of a staffing agency for second chances, this makes me very excited. But it also frightens me.
I have worked with inmates, felons, and people in recovery over the past five years by helping them find their passion and meaningful employment. It is not as simple as making a decision to hire people with a criminal background. With this being such a hot topic, I thought I'd give a few tips for those considering hiring people with a criminal background.
1. Non-violent drug charges aren't always the safest bet.
I hear it all the time. And usually people who have never been arrested or spent time in prison. They talk about just hiring people who have non-violent drug charges. In my personal experience, those are usually some of my more difficult cases. A lot of people with non-violent drug charges have one of two addictions: 1. making fast money OR 2. doing drugs. Relapse for either of these are more likely if an individual isn't seeking proper treatment or counseling. A job opportunity alone isn't always enough to keep someone on the right path. I have noticed that my best employees are the most unlikely and most overlooked: Those who lost the most. AKA: People who spent time in prison for harsher charges such as assault, robbery or murder.
2. People who spent time in prison are great manipulators.
Manipulation is a skill best learned in prison. Inmates are very resourceful and know how to get what they want. This is why the formerly incarcerated individuals who are reformed make amazing sales people, debt collectors or call center representatives. But we won't always have a reformed person with a change of heart sitting across from us as we are interviewing for a position. Even your greatest "people-reading" employee can be tricked into making the wrong hire if they are not educated on what to look for and what to ask in the interviewing process. Making the right second chance hire can grow your business tremendously but only if you make strategic hires and give the right second chances to the right people. Not everyone wants to change and we have to accept that as a possibility for responsible hiring.
3. Second chance hiring isn't charity.
When people talk about giving a second chance, it always sounds very charity or philanthropy-like. While I'm glad these discussions are happening, I'm disappointed people speak about second chance hiring like it's a favor to someone. It's actually a favor to your company to bring in a hungry, hard-working, loyal employee that will be grateful you gave them a chance. Growing a team of second chance employees can literally grow your business faster. Your second chance hires will go the extra mile, stay late and come in early. Not for a raise or recognition, but to help grow the company that helped grow them. An organic tea company came to us to make their first official second chance hire a year ago. Today, they've hired 70 people who have a criminal background.
When I first started my company, a for-profit staffing agency for second chances, people thought I was crazy. (I am, proudly) But it seemed like a far-fetched goal to bank on the success of felons. I knew how effective second chance hiring would be, so instead of starting a non-profit and spending my time raising money, I wanted to raise men and women through meaningful job placements. I have seen first-hand the successes and failures when it comes to helping people coming out of prison find employment. My biggest fear is that we are going to successfully create an awareness for second chance hiring and see poor results because of lack of education or tools. This could hurt the reputation of what we are trying to do and hurt the reputation of people who really do deserve real opportunities and have transformed their lives.
SOURCE: Garcia, C. (4 April 2019) "What Employers Need to Know About Successful Second Chance Hiring" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/what-employers-need-to-know-about-successful-second-chance-hiring
This post is the first in a series for Second Chance Month, which highlights the need to improve re-entry for citizens returning to society and reduce recidivism. One of the primary ways to do this is by providing an opportunity for gainful employment. To sign the pledge and access the toolkit with information on how to create second chances at your company, visit GettingTalentBacktoWork.org.
Making the Case for Pay Transparency
Is your organization increasing pay transparency? According to this article from SHRM, pay transparency is a strategic move that delivers measurable business benefits. Read this blog post to learn more.
Recommending to senior leadership that your organization increase pay transparency can be a difficult sell for HR professionals. However, pay transparency is a strategic move that delivers measurable business benefits – and it’s an issue on which HR should lead.
It is important to understand that most executives in America today rose through organizational ranks that viewed compensation as a private matter. Few within organizations had access to salary information, and even fewer talked about it. As a result, many leaders still believe it is appropriate to dissuade or prohibit employees from discussing their own compensation with other employees.
Yet we now understand these outdated cultural norms have contributed to the wage gap for women and minorities, among other negative outcomes. Pay transparency can help close those gaps and produce benefits for both employers and employees.
For example, providing employees with pay ranges for their current position and those positions in their career path sets realistic expectations. This is crucial, as many employees hold unrealistic expectations based on internet salary searches for job titles that often do not account for or accurately reflect important factors such as experience level, geography, company size, actual tasks and responsibilities, or other types of compensation. These unrealistic salary expectations create serious challenges, including employee disengagement, low morale and retention problems.
Clearly communicating your company’s pay ranges facilitates an open dialogue about how those ranges are set, when and why they change, and how employees can move up within them. These discussions in turn increase mutual trust and engagement and foster productive compensation communication — all of which help retain employees, which is especially important in today’s tight labor market.
Increasing pay transparency also helps businesses attract and retain a more diverse workforce, which numerous studies have demonstrated translates into better business results. Sharing compensation data advances this effort by ensuring women and minorities have a clearer picture of the going rate for their skill sets, education, experience and performance. While many factors contribute to pay gaps, women and minority groups may have accepted lower compensation in the past because they could not access the information necessary to determine what they should be making based on what they bring to the table.
While recommending greater pay transparency to senior leadership in your organization may seem daunting, it is an important discussion to have and a compelling case for HR professionals to make. In a highly competitive labor market, businesses that make the right strategic move of increasing pay transparency will ultimately attract and retain the best talent and come out ahead of those that do not.
SOURCE: Ponder, L. (4 April 2019) "Making the Case for Pay Transparency" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/making-the-case-for-pay-transparency-0
DOL Focuses on ‘Joint Employer’ Definition
On April 1, the U.S. Department of Labor (DOL) announced a proposed rule that narrows the definition of "joint employer" under the Fair Labor Standards Act (FLSA). Read this blog post from SHRM to learn more about this proposed rule.
The U.S. Department of Labor (DOL) announced on April 1 a proposed rule that would narrow the definition of "joint employer" under the Fair Labor Standards Act (FLSA).
The proposed rule would align the FLSA's definition of joint-employer status to be consistent with the National Labor Relations Board's proposed rule and update the DOL's definition, which was adopted more than 60 years ago.
Four-Factor Test
The proposal addresses the circumstances under which businesses can be held jointly responsible for certain wage violations by contractors or franchisees—such as failing to pay minimum wage or overtime. A four-factor test would be used to analyze whether a potential joint employer exercises the power to:
- Hire or fire an employee.
- Supervise and control an employee's work schedules or employment conditions.
- Determine an employee's rate and method of pay.
- Maintain a worker's employment records.
The department's proposal offers guidance on how to apply the test and what additional factors should and shouldn't be considered to determine joint-employer status.
"This proposal would ensure employers and joint employers clearly understand their responsibilities to pay at least the federal minimum wage for all hours worked and overtime for all hours worked over 40 in a workweek," according to the DOL.
In 2017, the department withdrew an interpretation that had been issued by former President Barack Obama's administration that broadly defined "joint employer."
The Obama-era interpretation was expansive and could be taken to apply to many companies based on the nature of their business and relationships with other companies—even when those relationships are not generally understood to create a joint-employment relationship, said Mark Kisicki, an attorney with Ogletree Deakins in Phoenix.
The proposed test aligns with a more modern view of the workplace, said Marty Heller, an attorney with Fisher Phillips in Atlanta. The test is a modified version of the standard that some federal courts already apply, he noted.
Additional Clarity
Significantly, the proposed rule would remove the threat of businesses being deemed joint employers based on the mere possibility that they could exercise control over a worker's employment conditions, Heller said. A business may have the contractual right under a staffing-agency or franchise agreement to exercise control over employment conditions, but that's not the same as doing so.
The proposal focuses on the actual exercise of control, rather than potential (or reserved) but unexercised control, Kisicki explained.
The rule would also clarify that the following factors don't influence the joint-employer analysis:
- Having a franchisor business model.
- Providing a sample employee handbook to a franchisee.
- Allowing an employer to operate a facility on the company's grounds.
- Jointly participating with an employer in an apprenticeship program.
- Offering an association health or retirement plan to an employer or participating in a plan with the employer.
- Requiring a business partner to establish minimum wages and workplace-safety, sexual-harassment-prevention and other policies.
"The proposed changes are designed to reduce uncertainty over joint employer status and clarify for workers who is responsible for their employment protections, promote greater uniformity among court decisions, reduce litigation and encourage innovation in the economy," according to the DOL.
The proposal provides a lot of examples that are important in the #MeToo era, said Tammy McCutchen, an attorney with Littler in Washington, D.C., and the former head of the DOL's Wage and Hour Division under President George W. Bush.
Importantly, companies would not be deemed joint employers simply because they ask or require their business partners to maintain anti-harassment policies, provide safety training or otherwise ensure that their business partners are good corporate citizens, she said.
Review Policies and Practices
Employers and other interested parties will have 60 days to comment on the proposed rule once it is published in the Federal Register. The DOL will review the comments before drafting a final rule—which will be sent to the Office of Management and Budget for review before it is published.
"Now is the time to review the proposal and decide if you want to submit a comment," Heller said. Employers that wish to comment on the proposal may do so by visiting www.regulations.gov.
"Take a look at what's been proposed, look at the examples in the fact sheet and the FAQs," McCutchen said. Employers may want to comment on any aspects of the examples that are confusing or don't address a company's particular circumstances. "Start thinking about your current business relationships and any adjustments that ought to be made," she said, noting that the DOL might make some changes to the rule before it is finalized.
"The proposed rule will not be adopted in the immediate future and will be challenged at various steps by worker-advocacy groups, so it will be quite some time before there is a tested, final rule that employers can safely rely upon," Kisicki said.
SOURCE: Nagele-Piazza, L. (1 April 2019) "DOL Focuses on ‘Joint Employer’ Definition" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/labor-department-seeks-to-revise-joint-employer-rule.aspx
A 16-Year-Old Explains 10 Things You Need to Know About Generation Z
What was life like when you were a teenager? The world has been focused on understanding and adapting to Millennials. Now Generation Z is beginning to graduate and enter the workforce. Read this blog post for 10 things the world should know about Gen Z.
Think about what life was like when you were 16. The clothes you wore, the places you shopped. What was most important to you then?
Whenever I speak to an organization eager to learn about Generation Z, I always ask that question. I get responses that include everything from the fleeting fashion trends of the day (bell-bottom jeans, anyone?) to the time-honored tradition of getting a driver’s license.
What I hope to achieve as a 16-year-old in 2018 is probably not all that different from what anyone else wanted when they were my age. It’s the way people go about reaching their goals that evolves over time—and that’s what also forms the basis of most generational clashes.
For the past several years, the world has been focused on understanding and adapting to Millennials, the largest and most-educated generation in history. Born between 1981 and the mid-1990s, this group has inspired important dialogues about generational differences and challenged all industries to evolve to meet their needs. In the workplace, Millennials have helped drive a greater focus on flexibility and collaboration and a rethinking of traditional hierarchies.
Of course, any analysis of generations relies on generalities that can’t possibly describe every person or situation. It’s important to remember that generations exist on a continuum—and that there is a large degree of individual variation within them. The point of this type of research is to identify macro trends among age groups that can help foster workplace harmony. Essentially, it’s a way of attempting to understand people better by getting a sense of their formative life experiences. The generation to which one belongs is among the many factors, such as race, religion and socioeconomic background, that can shape how a person sees the world.
But there’s little doubt that gaps among the U.S. generations have widened dramatically. For example, an 8-year-old boy in the United States who grew up with a tablet will likely have more in common with an 8-year-old in China who used a similar mobile device than he will with his 70-year-old U.S. grandparents.
In thinking about the generations, a key thing to understand is that these groups are typically categorized by events rather than arbitrary dates. Generation Z’s birth years are generally recognized as 1996 to 2009. The start year was chosen so that the cohort would include only those who do not remember the Sept. 11 terrorist attacks. The belief is that if you were born in 1996 or later, you simply cannot process what the world was like before those attacks. For Generation Z, the War on Terror has always been the norm.
Like all other generations, mine has been shaped by the circumstances we were born into, such as terrorism, school shootings and the Great Recession. These dark events have had profound effects on the behavioral traits of the members of Generation Z, but they have also inspired us to change the world.
Earlier this year, XYZ University, a generations research and management consulting firm where I act as the director of Gen Z studies, surveyed more than 1,800 members of Generation Z globally and released a study titled “Ready or Not, Here Comes Z.” The results were fascinating.
We discovered key characteristics about Generation Z and what the arrival of my generation will mean for the future of work. At 57 million strong and representing the most diverse generation in U.S. history, we are just starting to graduate from college and will account for 36 percent of the workforce by 2020.
Needless to say, Generation Z matters. And it is more important than ever for HR professionals to become familiar with the following 10 characteristics so that they know how to engage with my generation.
1. Gen Z Always Knows the Score
Members of this generation will put everything on the line to win. We grew up with sports woven into the fabric of our lives and culture. To us, the NFL truly does own a day of the week. But it’s more than just professional, college or even high school teams that have shaped us; it’s the youth sports that we played or watched throughout our childhoods. This is the generation of elite young teams and the stereotypical baseball mom or dad yelling at the umpire from the bleachers.
Our competitive nature applies to almost everything, from robotics to debates that test mental fortitude. We carry the mindset that we are not necessarily at school just to learn but to get good grades that will secure our place in the best colleges. Generation Z has been thrown into perhaps the most competitive educational environment in history. Right or wrong, we sometimes view someone else’s success as our own failure or their failure as our success.
We are also accustomed to getting immediate feedback. A great example is the online grading portals where we can get frequent updates on our academic performance. In the past, students sometimes had to wait weeks or longer to receive a test grade. Now, we get frustrated if we can’t access our scores within hours of finishing an exam—and sometimes our parents do, too.
2. Gen Z Adopted Gen X’s Skepticism and Individuality
Generations are shaped by the behavioral characteristics of their parents, which is why clumping Millennials and Generation Z together is a mistake. In fact, when it comes to each generation’s behavioral traits, Millennials are most similar to their parents—the Baby Boomers. Both are large, idealistic cohorts with influences that will shape consumer and workplace behavior for decades.
Members of Generation Z, on the other hand, are more akin to their parents from Generation X—a smaller group with a skeptical, individualistic focus—than they are to Millennials. That’s why many generational traits are cyclical. Just because Millennials and members of Generation Z are closer in age does not necessarily mean they share the same belief systems.
3. Gen Z Is Financially Focused
Over the past 15 to 20 years, HR professionals have been hyper-focused on employee engagement and figuring out what makes their workers tick. What drives someone to want to get up in the morning and come to work for your organization?
As it turns out, workplace engagement matters less to Generation Z than it did to previous generations. What’s most important to us is compensation and benefits. We are realists and pragmatists who view work primarily as a way to make a living rather than as the main source of meaning and purpose in our lives.
Obviously, we’d prefer to operate in an enjoyable environment, but financial stability takes precedence. XYZ University discovered that 2 in 3 Generation Zers would rather have a job that offers financial stability than one that they enjoy. That’s the opposite of Millennials, who generally prioritize finding a job that is more fulfilling over one that simply pays the bills.
That financial focus likely stems in part from witnessing the struggles our parents faced. According to a study by the Pew Charitable Trust, “Retirement Security Across Generations: Are Americans Prepared for Their Golden Years?,” members of Generation X lost 45 percent of their wealth during the Great Recession of 2008.
“Gen X is the first generation that’s unlikely to exceed the wealth of the group that came before it,” says Erin Currier, former project manager of Pew’s Economic Mobility Project in Washington, D.C. “They have lower financial net worth than previous groups had at this same age, and they lost nearly half of their wealth in the recession.”
Before Generation Z was decreed the ‘official’ name for my generation, there were a few other candidates, including the ‘Selfie Generation’ and ‘iGen.’
Employers will also need to recognize that members of Generation Z crave structure, goals, challenges and a way to measure their progress. After all, the perceived road to success has been mapped out for us our entire lives.
At the same time, it’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
4. Gen Z Is Entrepreneurial
Even though they witnessed their parents grapple with financial challenges and felt the impact of the worst economic meltdown since the Great Depression, members of Generation Z believe there is a lot of money to be made in today’s economy. Shows like “Shark Tank” have inspired us to look favorably on entrepreneurship, and we’ve also seen how technology can be leveraged to create exciting—and lucrative—business opportunities with relatively low overhead. Fifty-eight percent of the members of my generation want to own a business one day and 14 percent of us already do, according to XYZ University.
Organizations that emphasize Generation Z’s desire for entrepreneurship and allow us space to contribute ideas will see higher engagement because we’ll feel a sense of personal ownership. We are motivated to win and determined to make it happen.
5. Gen Z Is Connected
Before Generation Z was decreed the “official” name for my generation, there were a few other candidates, including the “Selfie Generation” and “iGen.”
I find those proposed names both condescending and misleading. While it’s often assumed that Generation Z is focused solely on technology, talking face to face is our preferred method of communication. Sure, social media is important and has undoubtedly affected who we are as a generation, but when we’re communicating about something that matters to us, we seek authenticity and honesty, which are best achieved in person.
“Gen Z has the power of technology in their hands, which allows them to communicate faster, more often and with many colleagues at one time; but it also brings a danger when it’s used as a crutch for messages that are better delivered face to face,” says Jill Katz, CHRO at New York City-based Assemble HR. “As humans in the workplace, they will continue to seek empathy, interest and care, which are always best received face to face.”
XYZ University’s research found that cellphones and other electronic devices are primarily used for the purpose of entertainment and are tapped for communication only when the face-to-face option isn’t available.
However, successfully engaging with Generation Z requires striking a balance between conversing directly and engaging online. Both are important, and we need to feel connected in both ways to be fully satisfied.
6. Gen Z Craves Human Interaction
Given that members of Generation Z gravitate toward in-person interactions, HR leaders should re-evaluate how to best put the “human” aspect back into business. For example, hiring processes should emphasize in-person interviews more than online applications.
A great way to engage us is to hold weekly team meetings that gather everyone together to recap their achievements. Although members of Generation Z don’t necessarily need a pat on the back, it’s human nature to want to feel appreciated. This small gesture will give us something to look forward to and keep us feeling optimistic about our work. In addition, we tend to work best up against a deadline—for example, needing to have a project done by the team meeting—due to our experience facing time-sensitive projects at school.
7. Gen Z Prefers to Work Independently
Millennials generally prefer collaborative work environments, which has posed a challenge to conventional workplace cultures and structures. In fact, many workplaces have eliminated offices and lowered cubicle walls to promote more interaction. Yet recent studies indicate that totally open offices may actually discourage people from working together. The noise and lack of privacy could prompt more people to work at home or tune others out with headphones. Since different types of work require varying levels of collaboration, focus and quiet reflection, ideal workplaces incorporate room for both togetherness and alone time.
It’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
The emphasis on privacy will likely only intensify under Generation Z. Unlike Millennials, we have been raised to have individualistic and competitive natures. For that reason—along with growing research into optimal office design—we may see the trend shift away from collaborative workplaces toward more individualistic and competitive environments.
8. Gen Z Is So Diverse That We Don’t Even Recognize Diversity
Generation Z marks the last generation in U.S. history where a majority of the population is white. Given the shifting demographics of the country, we don’t focus as much on someone’s color, religion or sexual orientation as some of our older counterparts might. To us, a diverse population is simply the norm. What we care about most in other people is honesty, sincerity and—perhaps most important—competence.
Indeed, we have been shaped by a society that celebrates diversity and openness. A black man occupied the White House for most of our lives, and we view gay marriage as a common and accepted aspect of society.
9. Gen Z Embraces Change
Compared to teenagers of other generations, Generation Z ranks as the most informed. We worry about our future and are much less concerned about typical teen problems, such as dating or cliques, than we are about becoming successful in the world.
The chaos and unrest in our political system have inspired us to want to get involved and make a difference. Regardless of which side of the aisle we are on, most of us are informed and passionate about the issues facing our society today. Witness, for example, the students of Marjory Stoneman Douglas High School in Parkland, Fla., who organized a political movement around gun control in the wake of a mass shooting at their school.
Social media allows us to have a voice in our political system even before we can vote. This opportunity has forced us to develop critical-thinking and reasoning skills as we engage in sophisticated debates about important issues that might not even affect us yet.
“Gen Z has a strong ability to adapt to change,” says Paul Carney, an author and speaker on HR trends and a former HR manager with the Navy Federal Credit Union. “For those of us who have spanned many decades in the workplace, we have seen the rate of change increase and it makes most of us uncomfortable. Gen Z are the people who will help all of us adapt better.”
According to numerous polls, the political views of Generation Z trend fiscally conservative (stemming from our need for financial stability) and socially liberal (fueled by diverse demographics and society).
10. Gen Z Wants a Voice
Given how socially aware and concerned its members are, Generation Z seeks jobs that provide opportunities to contribute, create, lead and learn.
“One of the best ways I have seen leaders engage with Gen Z is to ask them how they would build a product or service or design a process,” Carney says. “Gen Z has some amazing abilities to bring together information, process it and take action. When we do allow them to share ideas, great things happen.”
We’re also an exceptionally creative bunch. Managers will need to give members of this generation the time and freedom to come up with innovative ideas and accept that, despite our young age, we have valuable insights and skills to offer—just like the generations that came before us and those that will follow.