by admin | Jul 23, 2025 | Human Resources
When considering employee retention, HR professionals must realize that turnover doesn’t begin with a resignation letter. It starts much earlier—and it’s quieter. A skipped lunch, a missed meeting, fewer Slack messages. These small signs often signal something much bigger: an employee pulling away. Long before someone quits, they disconnect. And in today’s networked workplace, social withdrawal is often the first—and most reliable—indicator that someone’s already halfway out the door.
While voluntary turnover has dropped to 13.5 percent—a sharp decline from 24.7 percent in 2022—that doesn’t mean employees are engaged. According to Gallup, more than half of U.S. workers are either actively searching or watching for new jobs. One in three say they’re ready to quit—even without something else lined up. This isn’t just dissatisfaction. It’s detachment. And it’s quietly reshaping our workforce.
Gallup calls this the “Great Detachment.” Employees are still showing up—but they’ve stopped buying in. They’re physically present, but relationally and emotionally checked out. And if left unchecked, this detachment becomes the precursor to departure.
Employee retention: Why people leave before they leave
Network analysis has consistently identified one of the most powerful—and overlooked—predictors of employee turnover: social isolation. While compensation, career mobility, and flexibility certainly matter, they rarely tell the whole story. People don’t just leave because of what they’re missing in their role. They leave because of what they’re missing in their relationships. When employees feel disconnected from their peers, excluded from informal conversations, or cut off from trusted collaborators, a sense of belonging erodes. And once that sense of belonging fades, disengagement—and eventual departure—often follows.
Employees on the edge of the network—those with limited connections—are two to three times more likely to quit. Without strong ties, they’re often left out of critical conversations, informal support, and growth opportunities. In fact, disengagement typically begins at the edges, long before it shows up anywhere else.
But a new pattern is emerging inside organizations: some employees aren’t just stuck on the edges—they’re choosing to move there. They’re intentionally stepping back from collaboration, reducing their interactions, and moving to the periphery of the network by design rather than by default.
Just consider the organization below, it represents an operations group of just over 40 employees within a global consumer goods company, a network analysis revealed a disturbing trend. Six employees—represented in yellow nodes (Figure 1)—were only connected to one other colleague. Several more had just two connections. And while that level of isolation is concerning on its own, what made it worse was that nearly half of these individuals were previously well-connected just a year earlier. They hadn’t just become isolated. They had chosen to pull back.
A recent study from Thred provided even more compelling evidence: employees who had recently resigned had 36 percent fewer connections than the company average. Even more telling, they were twice as likely to report having no meaningful friendship relationships at work. These findings point to a deeper insight—relational connectedness is more than a cultural asset; it’s a predictive signal. Building strong interpersonal ties may be one of the most underutilized levers in improving employee retention.
The contagious nature of the center
Research has long shown that employees at the center of an organizational network—those with many active connections—are 24 percent less likely to leave. These individuals, much like the red nodes in Figure 1, are deeply embedded and often serve as the glue that holds teams together. Their centrality provides access to information, influence and support.
And when those connections go beyond the professional—when they include genuine friendships—their likelihood of staying increases even more. Research has found that employees engaged in dual-purpose relationships—blending both professional collaboration and personal rapport—were 37 percent less likely to quit than those with purely transactional ties. When relationships go beyond the task at hand, people are more likely to stay—not just for the work, but for the sense of shared connection.
But here’s where it gets more complex. When well-connected, central employees become burned out, disengaged or disillusioned with the organization’s direction, their influence can shift from stabilizing to destabilizing. According to Thred’s research, when a central employee leaves, as much as 25 percent of their immediate network is likely to follow within months. These aren’t isolated exits—they’re relational chain reactions.
In highly collaborative environments, the ripple effect of a single departure can quickly cascade across a team. Employees who leave often hold more than just a role—they serve as connectors, mentors and informal leaders whose influence stretches far beyond their job title. When they exit, it disrupts not only workflows but the underlying trust networks that hold teams together. Like a contagion, quitting spreads through connection: the closer someone is to a departing colleague, the more likely they are to re-evaluate their own sense of belonging, purpose, and place within the organization.
The effect can cascade across teams, departments and even geographies—especially in highly collaborative organizations. Like a virus, quitting spreads through proximity. The closer you are to someone who leaves, the more likely you are to consider it too.
What HR can—and should—do
For HR leaders, the implications are clear: employee connection is no longer a soft metric. It’s a strategic one. The good news? Relationships are something organizations can influence—with intention.
Here are four high-impact ways to foster friendship—and reduce attrition:
1. Use network analysis to spot flight risk early
Conduct regular organizational network analysis to identify employees with few or declining connections. These individuals are not just disengaged—they’re already on their way out. Early detection can inform re-engagement strategies or personalized outreach. And if you can’t run an analysis, just watch. Notice who is leaning back more often than they used to.
2. Facilitate moments of connection
Friendship doesn’t form by accident—especially in hybrid or remote settings. Use tools like interest-based matching (for example, Thred’s Stitches) to facilitate meaningful one-to-one meetups. Host curated mixers, team swaps or mentorship pairings that prioritize human connection, not just transactional interactions.
3. Support relationship-rich teams
Encourage cross-functional initiatives where both personal rapport and professional trust can develop. Invest in psychologically safe team cultures that allow for vulnerability, shared experience and the blending of professional and personal interest.
4. Routinely pulse check with central employees
Central employees with high trust capital have the greatest influence on the network. If they’re thriving, they’ll lift others with them. But if they’re frustrated or burned out, their exit could trigger a talent drain. Keep these employees close—and engaged.
By Michael Arena
Originally posted on HR Exchange Network
by admin | Jul 15, 2025 | Custom Content, Employee Benefits
Want to attract and keep top talent? Your benefits package is crucial! Think beyond just health and retirement. Fringe benefits like Dependent Care Assistance Programs (DCAPs) offer real, meaningful support, especially for employees caring for kids or dependent adults.
What is A DCAP?
A DCAP – also known as a dependent care flexible spending account (DCFSA) (since it functions similarly to a health flexible spending account (FSA)) – helps to ease the financial burden. This program allows employees to set aside pre-tax dollars specifically for eligible dependent care expenses, providing a substantial financial advantage. Through convenient payroll deductions, employees contribute pre-tax funds to this account. These funds can then be used to reimburse them for qualifying expenses such as daycare, babysitting services, or after-school programs.
DCAPs can be standalone benefits or part of a larger “cafeteria plan.” Regardless, they operate under strict IRS rules to ensure proper use of the funds.
What Expenses Qualify for Reimbursement?
To qualify for reimbursement, the expense must be directly related to care that enables the employee (and their spouse, if applicable) to work or look for work. Reimbursement is provided after the care has been rendered.
Eligible Expenses Include:
- Preschool, nursery school, or similar programs (below kindergarten level).
- Before- and after-school care for children.
- Day camps, including specialized camps (e.g., sports, computer).
- Transportation to and from the place of care, if provided by the care provider.
- Employment taxes paid to a caregiver.
- Room and board for a caregiver (in specific cases).
- Application or agency fees related to finding care.
Ineligible Expenses Include:
- Kindergarten tuition or higher education costs.
- Overnight camps.
- Payments made to an employee’s spouse or the child’s other parent (if not their spouse).
Who Qualifies as a Dependent?
Employees can utilize DCAP funds for:
- A dependent child under the age of 13.
- A spouse or dependent who lives with the employee and is physically or mentally unable to care for themselves.
It is important for employees to note that eligibility is calculated on a daily basis. For example, reimbursement cannot be sought for expenses incurred after a dependent’s 13th birthday.
Contribution Limits
Internal Revenue Code Section 129 sets annual contribution limits for DCAPs, ensuring tax compliance:
- Up to $5,000 per year for employees who are single or married filing jointly.
- Up to $2,500 per year for employees who are married filing separately.
These pre-tax contributions are a significant advantage, reducing an employee’s taxable income and thereby increasing their take-home pay. It’s also important for employees to understand that the same expenses cannot be claimed for both a DCAP and the federal dependent care tax credit.
DCAP contributions must be used for eligible care expenses within the coverage period, or they are forfeited. This is often referred to as the “use it or lose it rule.” While a 2.5-month grace period for incurring and submitting claims is permitted, DCAPs do not allow carryovers of unused funds to the next plan year. Additionally, a DCAP is not portable – meaning that if an employee leaves, the funds are forfeited.
Maximizing Benefits for Employees
Offering a DCAP provides meaningful support to employees, whether they are new parents, caring for a loved one with special needs, or simply seeking ways to manage household budgets more effectively. It is a valuable tool that helps team members save money while managing essential care costs.
by admin | Jun 30, 2025 | Custom Content, Employee Benefits
Selecting the right health insurance plans for your family is a critical process that requires careful attention from start to finish. Navigating health insurance becomes much simpler when you understand its terminology. Making sense of these terms empowers you to better understand your costs, benefits, and even estimate the price of a doctor’s visit.
Premium: Your Insurance Payment: The premium is the regular payment you make to an insurance company to maintain your coverage. When you get insurance through your employer, they will specify how much of the premium you are responsible for, and this amount is typically deducted from your paycheck before your taxes are calculated.
Copayment : A copayment, often called a copay, is a specific amount you pay for a covered healthcare service, and it’s usually due when you receive that service. The amount of the copay can be different for different types of care.
Copay Example: For her son’s pediatrician visit for the flu, Heather had a $15 copay that she paid at the time of the appointment.
Deductible: A deductible is the amount you pay for healthcare services each year before your insurance starts covering costs.
Deductible Example: Ashley has a $1,000 annual deductible. Her first arm surgery costs $800. Since she hasn’t met her deductible yet, she pays the full $800.
Coinsurance: Coinsurance is the percentage of the allowed cost for a covered healthcare service that you’re responsible for paying after you’ve paid your deductible.
Coinsurance Example: Ashley’s next surgery costs $3,200 (the allowed amount). She has already paid $800 of the $1,000 deductible so she is responsible for the first $200 of the second surgery. Her insurance has an 80/20 coinsurance split. This means they pay 80% ($2,400), and Ashley pays 20% ($600).
Out-of-Pocket Maximum (OOPM): The OOPM is the maximum amount you’ll pay for covered healthcare costs in a year, not counting your monthly premium. It acts as a financial safety net against very expensive medical care. After you reach your yearly OOPM, your insurance pays 100% of covered costs for the rest of the year. Be aware that some plans have rules about what expenses count towards your OOPM; for instance, some might not include your deductible.
OOPM Example: Ashley has a $3,000 out-of-pocket maximum and has paid $1,600 so far. Her next surgery costs $8,000. She will pay her 20% coinsurance until her total out-of-pocket reaches $3,000. She has $1,400 left to pay. After that, her insurance covers the remaining $6,600.
Preventive Care: Preventive care focuses on staying healthy and catching illnesses early. It includes medical tests, vaccines, screenings, and medications designed to prevent chronic diseases. The goal is to identify and treat health issues in their most manageable stages. Under the Affordable Care Act (ACA), most health insurance plans must cover a range of preventive services without charging copays, deductibles, or coinsurance.
Preventive Care Example: Lori makes an appointment for her yearly check-up and a mammogram with a doctor in her network. Since these are preventive services covered by the ACA, Lori pays nothing – her health insurance covers the full cost.
Other Benefits Terminology
Pre-existing Condition: This is any health issue (physical or mental, including disabilities) you had before your health plan started. Since 2014, most insurers can’t deny coverage or charge more for pre-existing conditions, unless you have a “grandfathered” plan.
Grandfathered Plan: This is a health plan that existed before the ACA (2010) and hasn’t changed much since. These plans don’t have to follow all of the ACA’s rules.
Summary of Benefits and Coverage (SBC): The SBC is a straightforward document that outlines the costs and coverage of a health plan in an easy-to-compare format.
All those healthcare acronyms and terms might seem overwhelming but taking the time to learn them can put you in control. Understanding the lingo makes it easier to pick a health plan that meets your individual needs and budget!
by admin | Jun 24, 2025 | Human Resources
Almost one-third of businesses or 31 percent are planning to invest in business intelligence and data analytics in the next 12 months, according to PEX Report 2024-25. Business intelligence dashboards are used by almost two-thirds of organizations with data visualization and process intelligence coming second and third respectively.
“OPEX and transformative growth hinges on the strategic use of advanced data analytics and business intelligence,” Madhu Kittur, industry analyst, told PEX Network.
Clearly, data is a big deal nowadays. As HR Exchange Network prepares for the All Access: Digital Transformation in HR webinar series, data becomes one of the words in the word cloud. People analytics is necessary storytelling and allows HR leaders to validate their seat at the C-suite table. It provides a way to explain decisions and make informed decisions. With advanced technology helping humans more easily gather disparate data and make sense of it, the data becomes currency.
Recently, HR Exchange Network spoke with Michael D. Lieberman People Analytics: Statistical Case Studies for Human Resources (independently published, August 2024), who reminds people that getting down to the basics of data analytics is vital to everyone’s success. Discover his ideas:
HREN: Why should professionals entering HR analytics learn basic statistics?
ML: Statistical literacy is essential for making informed HR decisions. HR analytics tools require a solid foundation in statistics to interpret data effectively. Without understanding the basics, it’s difficult to properly analyze workforce data or make evidence-based decisions about employee programs.
HREN: What techniques are commonly used in HR analytics and why were they chosen?
ML: Many techniques used in HR analytics were adapted from marketing research. The focus should be on desired outcomes rather than specific techniques. Regression analysis and sequence waiting are particularly useful for analyzing employee benefits and performance metrics. The key is selecting methods that answer your specific business questions.
HREN: What advice would you give to beginners in HR analytics to avoid feeling overwhelmed?
ML: Take a step back to understand the question and desired outcome before diving into data. Know what event you’re analyzing and what insights you’re trying to gain. Think of analytics as storytelling with numbers – you’re using data to convey insights that drive decisions.
HREN: How can HR professionals approach changing performance review systems?
ML: Consider testing different types of performance reviews or adding new elements to your existing system. Apply design thinking principles to statistical modeling, making it an iterative process of refining ideas based on feedback and results.
HREN: How is people analytics relevant to the broader business?
ML: Happier employees lead to more profitable businesses. HR analytics helps maximize efficiency by understanding and minimizing costs related to turnover, onboarding, and other HR expenses. This data-driven approach allows HR leaders to make stronger business cases for people-focused initiatives.
HREN: What final advice would you give to HR professionals about analytics?
ML: There’s tremendous momentum in the people analytics industry right now. HR professionals should develop data fluency to make better decisions and communicate more effectively with leadership. Balance soft skills with data literacy – both are necessary for success in modern HR.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Jun 10, 2025 | Custom Content, Employee Benefits
The word “cancer” carries a weight that extends far beyond its medical implications. Beyond the physical and emotional toll, a cancer diagnosis can bring significant financial strain. While your primary health insurance will cover many treatment costs, there are often substantial out-of-pocket expenses that can quickly add up. This is where cancer insurance comes in. But what exactly is it, and how does it work?
What is Cancer Insurance?
Cancer insurance is a type of supplemental health insurance policy designed to provide financial assistance specifically if you are diagnosed with cancer. It’s not a substitute for comprehensive health insurance but rather an additional layer of protection to help manage the costs associated with cancer treatment and recovery. These policies typically pay out a lump-sum benefit or provide ongoing payments upon a cancer diagnosis that meets the policy’s definition.
Think of it as a financial safety net tailored to the unique challenges of battling cancer. The funds received from a cancer insurance policy can be used for a variety of expenses that your primary health insurance might not fully cover, such as:
- Deductibles and Coinsurance: Even with good health insurance, you’ll likely have deductibles and coinsurance amounts to pay.
- Lost Income: If you or your caregiver need to take time off work for treatment and recovery, it can lead to a significant loss of income.
- Travel and Accommodation: Traveling to specialized treatment centers can incur substantial costs for transportation, lodging, and meals
- Experimental Treatments: Some cutting-edge or experimental treatments may not be fully covered by standard health insurance.
- Other Living Expenses: The financial burden of cancer can extend to everyday expenses like groceries, utilities, and transportation.
How Does It Work?
- Purchase a Policy: You buy a cancer insurance plan through an insurer, often as an add-on through your employer or directly as an individual.
- Pay Monthly Premiums: Like other insurance policies, you’ll pay a regular premium to maintain coverage.
- Get Diagnosed: If you’re diagnosed with cancer while your policy is active, you file a claim. Cancer insurance will generally only pay benefits for the first occurrence of cancer and will not provide benefits if you have already been diagnosed before purchasing the insurance.
- Receive Benefits: Depending on your policy, you may receive a lump sum or payments for specific treatments and services.
While no one wants to imagine facing cancer, being prepared can make a significant difference. Cancer insurance helps reduce the financial stress of a diagnosis, allowing you to focus more on recovery and less on expenses. However, it’s essential to review your current health coverage and weigh whether supplemental cancer insurance fits your needs and budget.
