by admin | Oct 4, 2023 | Hot Topics, Human Resources
Pushback on Remote Work
Nowadays, many employers are insisting that workers return to the office in full force. Last week, HR Exchange Network reported on Goldman Sachs enforcing a five-day RTO rule. The Street recently reported on how Dimon longs for the same at JPMorgan Chase. This is not new news. Some have suggested the big banks are concerned about compliance with However, The Street speculates that Dimon is most interested in strict RTO as a result of the organization’s real estate investments.
Walmart Lowers the Minimum Wage
Apparently, Walmart is paying some new hires less than it was paying others three months ago, according to the Wall Street Journal. The writer suggests that this is a sign that companies are trying to cut labor costs after significant wage increases during the Great Resignation. Most new hires will now earn the lowest possible hourly wage for their store.
“The wage-structure change comes after Walmart and other large employers have for years steadily raised wages and added benefits to attract workers in a tight labor market. The retailer’s latest move suggests that the stresses companies are facing in trying to find employees are easing and that they need to find ways to offset those wage increases,” according to WSJ.
UAW May Strike
The summer of strikes might just turn into the fall of strikes. The United Auto Workers (UAW) told General Motors that their proposal was insulting, according to CNBC. The contract for GM’s 46,000 UAW-represented workers included a 10% increase in wages. But the union rejected it and within days the UAW may go on strike.
“Despite the proposed wage increase being the largest under a UAW contract since 1999, it still falls far short of the union’s demands of a 40% hourly pay increase, a reduced 32-hour workweek, a shift back to traditional pensions, elimination of compensation tiers, and restoration of cost-of-living adjustments, among other items on the table,” according to CNBC.
Millennials Are the Hybrid Workers
LinkedIn is sharing data points from its latest Workforce Confidence survey, and it showed a difference in the way generations are experiencing work at the moment. About 20% of Millennials, compared to 17% of Gen X and 15% of Baby Boomers, are hybrid workers.
Cybersecurity Sees Layoffs
Cybersecurity was once considered a safe role to have because of the great necessity to protect data and technology from breaches. However, in the last month, nine cybersecurity companies have laid off employees, according to Axios. IronNet, Malwarebytes, Fortinet, NCC Group, Rapid7, Dragos, HackerOne, and Bishop Fox are among those that cut jobs. The publication reported that the companies have cut between 10% and 20% of their workforce, which amounts to hundreds of layoffs.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Sep 13, 2023 | Hot Topics
In the U.S., the outstanding balance is $1.75 trillion in student loan debt. Approximately 55% of students from public four-year universities have student loans, with a balance of $37,338 owed per borrower. Beginning in October, workers nationwide will need to resume payments on their student loans for the first time since March 2020. The pandemic-related pause on both payments and interest accumulation that is ending is a stressor for employees who are increasingly seeking financial assistance from their employers.
People across all age groups struggle to balance student debt and retirement savings. It is reported that as many as 81% of people with student loans have needed to delay important life goals such as retirement or buying a home. Contributing early to a workplace retirement account is important so that employees can maximize the effect of compound interest in retirement.
3 Major Ways That Employers Can Help Their Workforce Pay Off Their Student Loans and Save for Retirement:
- Student Loan Repayment Assistance Programs – Employers can offer their employees student loan repayment assistance (LRAP) as a recruiting and retention tool. With LRAP, the employer makes monthly student loan payments to the employee’s lender, helping the employee to repay their student loans quicker. Additionally, through 2025, employers can repay up to $5,250 a year tax-free on employee student loans through the 2020 CARES Act.
- 401(k) Match for Student Loan Repayments – In December 2022, the Securing a Strong Retirement Act (SECURE 2.0) became law. This law – which starts in January 2024 – allows employers to match contributions to workplace plans – including 401(k)s, 403(b)s, 457(b)s, and simple IRAs – based on an employee’s qualified loan payments.
- Financial Literacy Programs – These educational tools can help teach employees how to develop a budget and savings plan, create attainable goals, project retirement needs, purchase a home and manage mortgage options, and manage debt- including student loan and credit card payment options.
Let’s face it, work isn’t the only thing stressing employees out – money can be a huge source of anxiety and a constant source of stress. With millions of Americans struggling to repay their student loans and/or save for retirement, this financial pressure can seep into their performance in the workplace. And managing finances isn’t just stressful – it’s time-consuming. Having access to financial well-being benefits and resources can empower employees to get on the path to financial prosperity.
by admin | Aug 1, 2023 | Employee Benefits, Hot Topics
- Fertility Treatments Coverage: Fertility treatments, such as in vitro fertilization (IVF) or intrauterine insemination (IUI), can be expensive and may not be covered by traditional health insurance plans. Fertility treatment coverage can help employees overcome financial barriers and access the fertility treatments they need to start or expand their families.
- Egg Freezing: Egg freezing allows individuals to preserve their eggs for future use. This can be particularly beneficial for employees who want to delay starting a family due to personal or professional reasons.
- Fertility Preservation: Some medical treatments, such as chemotherapy or radiation therapy, can have a negative impact on fertility. Fertility preservation options, such as freezing embryos or sperm freezing, can help individuals protect their fertility before undergoing such treatments.
- Adoption Assistance: In addition to fertility treatments, companies are expanding their benefits to include adoption assistance programs. These programs can provide financial support, counseling services, and resources to employees who are going through the adoption process. By offering adoption assistance, employers show their commitment to supporting various pathways to parenthood and promoting inclusivity.
- Fertility Education and Support: Many employers are going beyond financial coverage and offering educational resources and support for employees navigating fertility challenges. This can include access to fertility experts, educational seminars, counseling services, and fertility wellness programs.
Since fertility coverage is relatively new, fertility benefits can vary greatly. However, essentially there are two options for coverage:
- Cover specific treatments under their health plan
- Offer to pay a portion of treatment costs as a voluntary benefit
Employee expectations around benefits and workplace support have evolved in step with the growing desire for fertility and family-forming benefits. By offering emerging fertility benefits, employers demonstrate their commitment to supporting employees’ family-building journeys and recognizing the diverse needs of their workforce. These benefits can enhance employee satisfaction, improve work-life balance, and contribute to a more supportive workplace culture.
Did you know that in 2017 the American Medical Association and the World Health Organization recognized infertility as a disease? Approximately 17.5% – roughly one in six couples– are affected by infertility in the U.S.
As societal norms and employee expectations continue to evolve, companies are recognizing the importance of offering comprehensive benefits packages that cater to the needs of their workforce. One area that has gained attention in recent years is fertility benefits. Here’s an overview of emerging fertility benefits and their significance:
- Fertility Treatments Coverage: Fertility treatments, such as in vitro fertilization (IVF) or intrauterine insemination (IUI), can be expensive and may not be covered by traditional health insurance plans. Fertility treatment coverage can help employees overcome financial barriers and access the fertility treatments they need to start or expand their families.
- Egg Freezing: Egg freezing allows individuals to preserve their eggs for future use. This can be particularly beneficial for employees who want to delay starting a family due to personal or professional reasons.
- Fertility Preservation: Some medical treatments, such as chemotherapy or radiation therapy, can have a negative impact on fertility. Fertility preservation options, such as freezing embryos or sperm freezing, can help individuals protect their fertility before undergoing such treatments.
- Adoption Assistance: In addition to fertility treatments, companies are expanding their benefits to include adoption assistance programs. These programs can provide financial support, counseling services, and resources to employees who are going through the adoption process. By offering adoption assistance, employers show their commitment to supporting various pathways to parenthood and promoting inclusivity.
- Fertility Education and Support: Many employers are going beyond financial coverage and offering educational resources and support for employees navigating fertility challenges. This can include access to fertility experts, educational seminars, counseling services, and fertility wellness programs.
Since fertility coverage is relatively new, fertility benefits can vary greatly. However, essentially there are two options for coverage:
- Cover specific treatments under their health plan
- Offer to pay a portion of treatment costs as a voluntary benefit
Employee expectations around benefits and workplace support have evolved in step with the growing desire for fertility and family-forming benefits. By offering emerging fertility benefits, employers demonstrate their commitment to supporting employees’ family-building journeys and recognizing the diverse needs of their workforce. These benefits can enhance employee satisfaction, improve work-life balance, and contribute to a more supportive workplace culture.
by admin | Jun 27, 2023 | Hot Topics, Human Resources
Workers want higher pay, more flexibility, and support from employers, according to ADP’s People at Work 2023 survey. HR professionals can compare the results with their own responses in the most recent HR Exchange Network State of HR report.
Specifically, more than 40% of employees said they are underpaid. The most satisfied employees were those with a hybrid schedule, and the least satisfied were those who worked exclusively in-person. About 47% of respondents said that their work is suffering because of their poor mental health, and about 65% said stress impacts their work.
Recently, ADP Chief Economist Nela Richardson sat down with HR Exchange Network to provide insight into worker’s needs during this fraught time in history, when organizations are simultaneously facing a labor shortage and a possible looming recession.
Important Takeaways about What Employees Want
HREN: What are the biggest takeaways from your study?
I think there are a couple of really good takeaways. We’ve been asking people [questions] for this work study for three years, and we’ve seen some amazingly impactful results from the pandemic.
The first takeaway is that the trends we’re seeing are starting to stabilize. When we first did this research after the pandemic, the global workforce was really shaken up. You had one-quarter of folks who had lost their jobs or were furloughed, people taking pay cuts, they saw their hours reduced, they saw their friends leave the company, they were given more responsibilities than they had before just to fill in those gaps.
Many of them reported that they took on more responsibilities without an increase in pay. Add on top of that the fact that there’s a global pandemic happening, and it is affecting your friends, your family and yourself. Still, they were optimistic, according to the first survey in 2021. They said that they thought that there could be a silver lining in the pandemic in terms of flexibility, and the chance for career progression.
Let’s fast forward three years, and that’s where we are. The global workforce is really focused on career progression. In the United States, the need for flexibility has stabilized and has been cemented. It’s what people want here. In the rest of the world, we saw progression dominate flexibility. Last year, we saw flexibility dominating career progression globally. In the United States, flexibility is still a big, big deal.
We found in the survey that the happiest workers are the ones who can get that hybrid schedule. It’s not that people want to be fully remote. They really care about flexibility and hours. And they care more about that than flexibility of where they work. That was true last year; it’s true this year.
We’re also seeing people want a caring workforce still. There was a lot of movement in the corporate sector in response to the murder of George Floyd that everyone watched. That seems so long ago, but it had an impact on corporate response, a bigger impact than any singular event people can point to. Much of that response was tied to diversity and inclusion. What the global workforce says is that they don’t want those things to disappear.
Now that the labor market is stabilizing, they want that stuff. Oh, and yeah, they want to get paid like they got paid last year. Many families are battling inflation. They earned about a 6.3% raise in the United States last year. They’re thinking about having about the same raise this year, so the expectations are high in 2023.
Future of Work
HREN: What do you think all this means for the future of work? What’s coming next?
There’s some good news. I think we are experiencing the stabilization of worker priorities. Last year, we were talking a lot about the Great Resignation. That is starting to stabilize but stabilized doesn’t mean go back to normal. Stabilize means reset at a different rate.
The expectation, even as we’re heading into a softer economy, is that peak workers are more likely to come and go than before. With remote and hybrid options, it’s easier to change jobs, it’s also easier to come back to jobs. You should negotiate that exit interview, so it does not feel quite so permanent. How do you engage people who may come back to you in two to three years? That should be the mindset of the HR manager these days. It’s a revolving door, not an exit door.
With these expectations around pay so high, there are creative things that companies are going to do in the future. Maybe people will be willing to pay for vacation days to get more flexibility. Or they will take a pay cut if it means that they have a little more autonomy in their schedule. There are other things that caring corporate culture can do in lieu of pay to get an engaged workforce. The great thing about the pandemic is it forced innovation. It’s important to keep innovating, keep evolving, and keep learning from your workforce and incorporating that in your process.
If people are starting to lean more into career progression, how do companies meet that need, especially when you think about the other trends that are going on like AI and tech? What are the skills needed for the future? Those in the workforce think that they just need people management skills. The workforce isn’t always spot on. We have to make sure that the workforce is aligned with corporate objectives, too.
What comes out of our study is that when people look at future-proof industries, they look to tech. If used correctly, AI can be inclusive. It can actually expand and it has. If you think about the way we’re communicating now, it expands your ability to interact with others, and it could get some sideline workers back into the labor market during a period of labor shortage. It doesn’t require the physical demands that keep people on the sidelines. There’s a way to be inclusive with all these technologies, and it’s really the corporate sector that can set the tone for how they’re used.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | May 16, 2023 | Health Insurance, Hot Topics
Healthcare costs, and consequently employee health benefit costs, have been growing at an alarming rate in recent years. The U.S. as a nation spends more on health care than any other developed country but has worse health outcomes. How is this possible?
Four Key Factors Driving U.S. Healthcare Costs:
Healthcare gets more expensive when the population expands, as people get older and live longer. The Baby Boomers, one of America’s largest adult generations, is approaching retirement age. Because of this, the 65+ population is growing at an unprecedented rate. According to the U.S. Census Bureau, 21% of the entire population will be age 65 or older by 2030. Older Americans will make up almost one-quarter of the population by 2060.
This growth is likely to contribute to rising healthcare costs in two important ways:
- Growth in Medicare enrollment
- More complex, chronic conditions
- U.S. Population Is Growing More Unhealthy
According to the Center for Disease Control and Prevention (CDC), 6 out of every 10 adults in the U.S. have at least one chronic disease, such as asthma, heart disease, high blood pressure, or diabetes, which all drive up health insurance costs. In 2020, the health care costs of people with at least one chronic condition were responsible for 86% of health care spending.
Additionally, recent data finds that nearly 20% of children and 40% of adults over 20 in the U.S. are either overweight or obese, which can lead to chronic diseases and inflated healthcare spending.
On average, Americans shell out almost twice as much for pharmaceutical drugs as citizens of other industrialized countries pay. Moreover, prescription drug spending in the U.S. will grow by 6.1% each year through 2027, according to the Centers for Medicare and Medicaid Services (CMS) estimates.
Drug pricing strategies also contribute to rising healthcare costs. Drug manufacturers establish a list price based on their product’s estimated value, and manufacturers can raise this list price as they see fit. In the United States, there are few regulations to prevent manufacturers from inflating drug prices in this way.
Simply put, multiple systems create waste. “Administrative” costs are frequently cited as a cause for excess medical spending. The U.S. spends about 8% of its health care dollar on administrative costs, compared to 1% to 3% in the 10 other countries the JAMA study looked at.
Why is administrative spending so high in the United States? The U.S. operates within a complex, multi-payor system, in which healthcare costs are financed by many different payors. With so many stakeholders involved, healthcare administration becomes a complicated, inefficient process.
These inefficiencies contribute to excess administrative spending. The main component of excess administrative spending is billing and insurance-related (BIR) costs. These are overhead costs related to medical billing, and include services like claims submission, claims reconciliation and payment processing.
Administrative costs, an aging population, rising prescription drug costs, and lifestyle choices all play a factor in ballooning healthcare expenses. While some of these factors are not in your control, others are. Find out where you can make a difference, not only in health insurance costs, but also to your overall health!
by admin | Mar 30, 2023 | Hot Topics, Human Resources
Rage applying is when young employees in professional fields get fed up with the workload, boss, compensation, or all of the above and apply to as many other companies as they can while soaking in their anger. The act of applying to other jobs when one’s morale is low is nothing new. But the term “rage applying” is the latest buzzword to surface in Human Resources as Gen Z and some Millennials grapple with a wide range of disappointments and setbacks.
Many of them began their careers in a pandemic that had people feeling more isolated and forcing them to work from home. As a result, they have not cultivated the kinds of relationships that get people to stay. They might have lacked the mentorship that can fuel a new worker.
Why Is This Happening?
Most importantly, they are now facing serious financial hardship. Some have loads of student debt. Inflation is high, and it is making the prices of housing, groceries, and other necessities skyrocket. Even if wages rose recently, they are not going as far as they might have before the economic downturn. So, sadness quickly turns to anger when the boss asks them to add one more thing to their already overflowing plate or when other colleagues are quiet quitting and leaving them with all the work.
Watching these TikTok videos reveals that rage applying might be a way to deal with anger, but it can also pay off. CNBC reported that one person who was rage applying earned a $14,000 raise. The woman whose viral video introduced the concept of rage applying said she earned $25,000 more annually.
Warning When Rage Applying
Still, experts warn that rage applying comes with its risks. There is no discrimination or vetting of the organization. Sending out mass applications increases the odds of getting an interview and therefore an offer, but applicants could end up in a similar situation to the one they are trying to escape.
“The high that comes from a potential pay bump at another toxic job is going to wear off pretty quickly,” Career Coach Jenna Greco says to CNBC.
This is an excellent point because leaving the devil you know does not guarantee you will find an angel around the corner. Rage applying raises another issue because it is a demonstration of how differently the generations act in the workplace. For instance, Baby Boomers, who are retiring, tend to be more loyal to employers. They also expected to meet with managers in person, and they prefer to be in the office. In addition, they communicate more about their frustrations.
Gen Z and Millennials are used to texting. They are working remotely often. Many of them live behind their screens. As a result, communication is not the way they handle these problems. The issue is that communication is necessary for success. Without expressing these frustrations, the managers will never know what they could be improving or how the workplace could be transformed. No one will ever know what is in this young person’s head or how she would like to grow in her career. Rage applying is a form of hiding from one’s problems.
What Should HR Do?
Frankly, businesses are going to have to fess up to the fact that their cultures are causing these HR trends like quiet quitting and rage applying and the Great Resignation. They’re going to have to address the problems that are motivating Gen Z and some Millennials to react to their employers in these ways. The moral of the story is that the future of work depends on better communication. And the future is now.
By Francesca DiMeglio
Originally posted on HR Exchange Network
