by admin | Oct 21, 2024 | Human Resources
Will employees ever re-gain leverage and grow more engaged in their work?
More than 40 years ago, workers could retire from the same company where they started their career. That implied employment guarantee shifted when the American economy changed from consistent growth to a boom/bust cycle that created uncertainty and volatility, impacting job stability. Since then, the employee-company relationship has entered a push-pull cycle. Companies push employees away via layoffs or involuntary job changes because of updated business models, advances in technology, mergers/acquisitions, consumer habits, and globalization.
Employees, in turn, push companies away by decreasing their level of engagement, causing companies to try to pull workers toward the business with programs or branding designed to re-engage them. According to Gallup, “The first quarter of 2024 continued this downward trend, with engagement dropping three percentage points to 30% among both full- and part-time employees. This decline represents 4.8 million fewer employees who are engaged in their work and workplace, marking the lowest reported level of engagement since 2013.” The cost of lost productivity is estimated at 8.8 trillion dollars.
Meet Employees Where They’re At
When employees are fully engaged, they tend to give a company more of their discretionary effort to help their organization achieve its goals. Less engaged employees tend to not feel excited about their job or experience fulfillment at the workplace. The downward trend of engagement was exacerbated by the COVID 19 pandemic which resulted in many more employees choosing to use their discretionary effort for their personal lives, and not their work. Although employee survey data can pave the way for incremental improvement in employee engagement, one layoff can remind employees of their tenuous relationship with work. Companies will continue to navigate this volatile world with an inevitable impact on their people so maybe it is time to ask a new question – how can companies satisfy employees instead of engaging them?
Factors that affect employee satisfaction with their job include work conditions, total rewards, nature of the work, relationships, advancement, career development, balance, recognition, leadership quality etc. These factors work together to influence an employee’s decision to stay or leave a company. Therefore, focusing on satisfaction is critical to retention and company success because talented individuals produce the products and services that keep a company going and growing. Of all the factors to prioritize, the one that can significantly impact retention is total rewards.
According to Randstad, studies show a direct link between higher pay and higher employee retention rates. A recent study conducted by Harvard University shows that a $1 per hour pay increase among warehouse workers resulted in a 2.8% increase in retention. Even more alarming results show that every $1 per hour loss in pay resulted in a 28% increase in turnover rates. It’s quite simple, if a company isn’t offering competitive salaries, workers are more likely to leave.
A Whole New World at Work
Many people are rethinking their relationship with work and their employers. It’s not just about more pay, more time off, or more expansive benefits. People view total rewards as a continuing negotiation of what they get for what they give. Therefore, a rigorous and ongoing analysis of a company’s total reward program is critical to ensure fair, competitive and equitable pay and benefits. A holistic organizational assessment of compensation and benefit programs can inform how to rebalance total rewards in a fiscally responsible way. Compensation includes guaranteed components like salary and other non-guaranteed parts like incentive, production bonuses, extra shift pay, to name a few.
Sometimes those components become unbalanced, and an assessment can inform the required changes. Even if more investment is required to bolster compensation and benefit programs, those costs can be offset. For example, in the healthcare industry, if average base salaries are below market, and staffing bonuses are overutilized, a company can increase base salaries which enable recruitment of staff and reduce the use and amount of staffing bonuses which contribute to burn-out.
Regarding benefits, hearing the voice of the customer is extremely important. Although changing benefit programs can be stymied by the enormity of effort required, a thorough analysis of program utilization and perceived value of benefits is critical to enable recruitment and retention. Focus groups or surveys can ensure that the benefits offered are valued by employees. Conduct a deep analysis of plan costs and utilization to determine the required changes. This review is also required to fulfill fiduciary responsibilities. Rather than viewing the assessment of total rewards as having the potential to add expense, view the balancing process as a mechanism to shuffle existing investments leading to a more effective use of budgeted dollars.
The shift from engagement to satisfaction can be predicated on a more practical and transparent employee value proposition that resets mutual employment expectations. Transparency in business means that leadership is open, honest, and straightforward about the true nature of the employment relationship. Here is what that proposition could be:
“We will operate our business with the utmost thoughtful decision-making. We will invest in programs to bolster your job satisfaction in exchange for your services and support of the company. However, there may be times when we must make difficult business decisions that will directly affect our people. During those occasions, we will be transparent, fair and respectful to all, especially those impacted.”
An employee proposition such as this one is honest and balanced. Business reality and the importance of employee satisfaction are not mutually exclusive. They can coexist because one does not negate the other. Focusing on employee satisfaction and retention in the context of a new employee proposition can help workers and companies find a healthier, balanced and realistic relationship.
By Vaso Peramenis
Originally posted on HR Exchange Network
by admin | Oct 15, 2024 | Employee Benefits, Flexible Spending Accounts
When it comes to health insurance, there is a lot of jargon and plenty of acronyms. Many people have heard of FSAs, but may not actually know — what is a flexible spending account, exactly?
If you have an employer-sponsored health plan, a flexible spending account (FSA) is often available as part of the benefits package. There are two types of FSAs: one for health and medical expenses and another for dependent care/childcare costs. Both are designed to help you set aside money during the year for out-of-pocket expenses while enjoying tax benefits.
When you contribute to an FSA, the money is taken from your paycheck before taxes are removed and is never taxed. The Federal FSA Program estimates that those with an FSA save 30 percent on healthcare expenses on average.
How Does an FSA Work?
- Contributions: You contribute a portion of your pre-tax salary to your FSA. You set a contribution amount to be deducted from each paycheck, up to the federal limit, which for 2024 is $3,200.
- Rollovers, etc.: Employers have the option of allowing employees to roll over up to $640 in 2024 or they can provide a 2 ½ month grace period during which employees can spend their remaining contributions, but they can’t offer both.
- Reimbursement: Use your FSA funds to pay for qualified medical expenses. You typically submit receipts for reimbursement.
- Tax Benefits: Contributions are made with pre-tax dollars, reducing your taxable income.
What Can You Spend Your FSA Money On?
- Medical expenses: Doctor’s visits, prescriptions, dental care, vision care, and mental health services
- Over-the-counter medications: Many OTC medications, like pain relievers and allergy medications
- Medical equipment: Items such as crutches, wheelchairs, and diabetic supplies
- Dependent care expenses: Childcare or elder care costs, which can include before and after school care, preschool, and adult day care. In 2024, employees may contribute up to $5,000 if filing jointly or $2,500 if filing taxes separately.
Key Points to Remember:
- Use-It-or-Lose-It: Generally, any unused FSA funds at the end of the year are forfeited. However, some plans offer a grace period or carryover options.
- Contribution Limits: There are annual contribution limits for FSAs, set by the IRS.
- Dependent Care Expenses: If you have dependent care expenses, you can use your FSA to pay for them up to a certain limit.
Is an FSA Right for You?
Opening an FSA is a great way to save money on taxes and prepare for healthcare costs. As with other types of savings accounts, it allows you to contribute and stash away money, but in this case, that money is taken out of your paychecks in a set amount and is nontaxable. Check to see if your employer matches contributions as well.
Understanding the rules, benefits, and limitations of these accounts will allow you to maximize their value and ensure you’re making the most of this valuable employee benefit.
by admin | Oct 2, 2024 | Human Resources, Workplace
In today’s diverse workplaces, effective communication across generations is essential for fostering collaboration, productivity, and a positive work environment. Understanding the unique communication preferences of each generation can help bridge the gap and create a more inclusive and harmonious workplace. Technology can play a crucial role in bridging the generational gap and facilitating seamless communication.
Understanding Generational Preferences
-
Baby Boomers (born 1946-1964): While comfortable with traditional communication methods like face-to-face meetings and phone calls, Baby Boomers may also benefit from using technology to stay connected.
-
Generation X (born 1965-1980): Gen Xers are generally comfortable with technology and may prefer email or instant messaging for communication.
-
Millennials (born 1981-1996): Digital natives, Millennials are highly proficient with technology and often prefer using social media and collaboration tools.
-
Generation Z (born after 1996): Even more tech-savvy than Millennials, Gen Z is comfortable with a wide range of digital communication platforms.
Leveraging Technology for Effective Communication
-
Choose Appropriate Tools: Select communication tools that are familiar and accessible to all generations. Consider using a combination of platforms, such as email, instant messaging, video conferencing, and project management tools.
-
Set Clear Expectations: Establish clear guidelines for communication, including response times, preferred methods, and expectations for etiquette.
-
Provide Training: Offer training on how to use communication tools effectively, especially for those who may be less tech-savvy.
-
Facilitate Face-to-Face Interactions: While technology can be a valuable tool, don’t overlook the importance of face-to-face interactions for building relationships and fostering trust.
-
Encourage Open Communication: Create a culture where employees feel comfortable sharing their thoughts and ideas, regardless of their generation.
Specific Technology Tips
-
Video Conferencing: Use video conferencing tools to facilitate virtual meetings.
-
Instant Messaging: Choose a platform that is widely used and accessible to all generations, such as Slack, Microsoft Teams, and WhatsApp.
-
Social Intranet: Create a company-wide social intranet to foster connections and facilitate knowledge sharing.
By leveraging technology and understanding generational preferences, organizations can create a more harmonious and productive work environment where employees from all generations feel valued and respected.
by admin | Sep 23, 2024 | Hot Topics, Human Resources
Positive employee experience begets customer experience. It’s the circle of life in business, in fact. The concept is simple to follow. Employees, who feel valued and whose wellness at work is a priority of their managers and executives, will have the motivation to produce and treat customers with respect and white-glove service. Any organization who abides by this philosophy is rewarded with employee retention and repeat business.
“To be the best place to buy, you must be the best place to work,” Shep Hyken, bestselling author, keynote speaker, and customer service thought leader, has said. “Treat your employees the way you want your customers to be treated, maybe even better.”
Therefore, Human Resources professionals, who collaborate with the C-suite and middle management to improve the employee experience, can have a great impact on customer service and therefore the bottom line.
The Impact of Employee Happiness on CX
Recently, on CX Network, a sister portal to HR Exchange Network, writer Jerome Small shared a guide to the connection between employee engagement and customer experience. He offers much in the way of data and case studies. Here is one example:
“Spotify is a standout performer when it comes to employee engagement and its subscribers reap the rewards through innovative personalization, automation and a great customer communication strategy. When it comes to traditional employee engagement Spotify has a range of tech platforms to support collaboration and goal measurements, but the streaming platform offers a range of other competitive perks for its employees that help it stand out from competitors and motivate its huge global workforce.”
Another example is the retail chain Wegmans, which consistently get ranked on lists of the best places to work and leads in customer service, too. The company has made it a priority to connect employee’s purpose to their work as means of ensuring people feel purposeful and find meaning in what they do. They have established different channels of communication for employees to voice concerns or campaign for changes. Often, leaders respond and act on those suggestions. In addition, they have set up an employee advocacy system. And advocates do not report to people in the employees’ chain of command. Instead, they report directly to HR to ensure objectivity.
“We are united in delivering on this mission together, and recognize it takes all 53,000 employees to succeed,” said Peggy Riley, Vice President of Employee Communications and Engagement, on a case study on the website Great Place to Work. “On employees’ first days at Wegmans, we take time to explain our mission, values, and the integral role they play in our success. We explain how every individual’s work and role at Wegmans helps us collectively deliver on our mission.”
Nick Hedderman, Senior Director of Microsoft’s Modern Work business group, has talked at conferences about a study his company led that found a highly engaged workforce had a better performance on the stock market and therefore better profitability, according to CIO.
Key Strategies to Boost Employee Experience
Positive Work Culture – Building a culture that makes employees feel included and safe to share their genuine opinions, findings (even when they’re not positive), and experiences goes a long way to set the tone of a workplace.
The culture should foster a healthy relationship with management that is built on respect. It should also enable teams to get creative, brainstorm, and feel camaraderie. Leaders should demonstrate that they care for the employees, including their well-being, the well-being of their families, and their progress in the company and career.
Recognition and Rewards – Organizations that want to foster a positive employee experience must recognize the hard work and dedication of those who work for them. People need to feel appreciated. There are simple ways to show gratitude for someone’s work. Shout outs at the weekly meeting, an employee of the month, or a reward like a gift certificate can make someone feel valued. A simple thank you does not cost anything.
IAG in Asia-Pacific recently revamped its recognition program. They turned two previous programs into one, put more power into the hands of employees to recognize each other’s work, and created a system to help those with outstanding performances gain monetary rewards when appropriate. Niki Kesoglou, Executive Manager Culture, Diversity, Inclusion and Belonging at IAG and APAC Advisory Board member, shared details with the HR Exchange community recently.
Training and Development – Creating a way for people to learn and continue to grow both in their roles and careers is another way for leaders to show they care. It is also a necessity in today’s business world, which is centered on swiftly advancing technologies and unpredictability in geopolitics and the markets. To create an adaptable and flexible workforce, organizations must provide opportunities for continuous learning or risk getting left behind. Recently, Kathryn Carpenter-Fortin, Senior Technical Account Manager at LinkedIn, talked to HR Exchange Network about the skillsets being lost and how companies fail to teach at their own risk.
Measuring KPIs
HR can work with other departments in the organization to compare the results of employee surveys with those of customers. They can also look at the employee engagement versus sales and bottom-line results. Taking the pulse of the employees and the customers is vital.
Gartner calls this the Total Experience. Taking into consideration the multi-experience (MX), customer experience (CX), employee experience (EX), and user experience (UX) and how they all relate to technology is a strategic way to look at an organization’s road to success. The suggestion is to keep tabs on all these stakeholders and recognize the links in the data for each and how they relate to one another.
The point is that there is no turning back now. Employee experience is forever linked with customer satisfaction. This realization, although perhaps tardy, is motivating companies to simultaneously improve customer and employee experiences. Finding ways to reach employees through the building of a positive culture, recognition, and training are key to beginning this process. Once the plan is in motion, Human Resources leaders are charged with measuring KPIs and continuously tracking performance to ensure no one gets complacent.
By Francesca DiMeglio
Originally posted on HR Exchange Network