by Johnson and Dugan | Feb 14, 2020 | Employee Benefits, Human Resources
City and County of San Francisco Minimum Compensation Ordinance
Any company with 5 or more employees and contracts with the City and County of San Francisco needs to be aware of the wage law that has been in effect for several years, and the recent amendment that now includes stricter enforcement. The Minimum Compensation Ordinance (MCO) covers most City service contractors as well as tenants at the San Francisco International Airport. The law generally requires covered employers to provide to their covered employees:
- No less than the MCO hourly wage in effect:
For contracts entered into on or after October 14, 2017, the minimum hourly compensation rates effective July 1, 2019 are:
- $17.66/hour – For-Profit entity
- $16.50/hour – Non-profit entity
- $16.50/hour – Public entity
For contracts in effect prior to October 14, 2017, the minimum hourly compensation rates effective July 2, 2019 are:
- $15.59/hour for work performed within the City of San Francisco (SF Minimum Wage)
- $10.77/hour for work performed outside of the City of San Francisco
Rates are subject to change, refer to the OLSE website for the most current information: www.sfgov.org/olse/mco
- 12 paid days off per year (or cash equivalent)
Time off allowed for vacation, sick leave, or personal necessity, and part-time employees are allocated paid days off on a prorated basis.
- 10 days off without pay per year.
Days off of for part-time employees are allocated on a prorated basis. The PTO accrual rate is 0.04615 hours per hour worked and can be used as vacation or sick leave. PTO hours are vested and can be cashed out at termination.
Other requirements:
- The employer must post the Minimum Compensation Ordinance poster in a location where employees can read it easily.
- Employees must be provided a Know Your Rights form for signature.
Failure to meet the requirements could result in penalties, with a look-back period of 10 years when a complaint is filed. If you are not in compliance and want to avoid penalties, there are options to minimize your liability. Any audit based on a complaint will include a review of your employee handbook and your payroll records.
To review the November 21, 2019 amended rules, Click Here.
by admin | Jan 14, 2020 | Hot Topics, Human Resources
In today’s business world, there is more pressure than ever to maintain a high rate of growth and reach new revenue goals. And growth usually means hiring.
The work of HR is an important part of that work, especially where fast-growing companies are concerned. There are many reasons why going beyond borders and hiring talent internationally can help a company reach its objectives.
Why International Hiring?
Growing globally Grab Market Share
Over the last ten years or so, companies have seen huge growth, but they’re starting to exceed their size regionally. As a result, companies are hiring internationally to take advantage of new markets and job applicant pools.
Debbie Millin is the Chief Operating Officer for Globalization Partners, the organization behind the Global Expansion PlatformTM. Millin says one popular way companies kickstart their expansion is by hiring sales people in new countries where they want to expand. At the end of the day, companies need to grab global market share and hiring those workers is a good way to start.
Competitive Advantage
Millin says companies are going global earlier and faster than they used to, because if they don’t, someone else can use the idea and set up an in-country competitor. One example: Didi and Uber. Uber didn’t get into the market quickly enough and lost out to Didi.
Accessing a larger applicant pool
Millin says you must go to the talent. As the world continues to develop, it’s going to feel much smaller than it does now. Organizations must start looking outside their current regional offices to scout the best talent available. Unemployment rates are low, and hiring is competitive so staying in your own backyard could severely limit the talent pool.
The Contractor Trap
But acquiring international talent does not necessarily mean hiring contractors. This is one of the common mistakes companies make. Leaders identify great talent in a place like Brazil or France and attempt to hire those workers. The only problem? International contractor laws are the same as those in the United States; if the person acts like an employee, they are an employee. Following this action opens the company up to significant legal risk and financial penalties.
Falling into “the contractor trap” really is a trap, because it’s not always easy to get out. If the relationship with the contractor begins to deteriorate, they could easily expose the working arrangement to the authorities, and you could potentially owe back taxes, fines, unpaid benefits and more.
When companies are truly ready to go after the best global talent, hiring full-time makes the most sense. The best talent wants a full-time role, with benefits, and opportunities for growth.
Where’s the growth?
Based on data from Globalization Partners, Millin says the following 10 countries are at the top when it comes to expansion.
- Canada
- UK
- Singapore
- Mexico
- China
- Australia
- Brazil
- Germany
- India
- South Korea
The UK tends to be the first stop after Canada 90% of the time, but that’s changing with Brexit. Companies are more hesitant to enter the UK of with the uncertainty of what Brexit will bring, showing how important it is for companies to be aware of the social and political issues in a country as you plan your global expansion.
Millin says for HR professionals at companies that have decided to take advantage of the many opportunities associated with global growth, the next step is to figure out how to make it happen.
The Process
Decide whether to set up shop in another country
Opening a compliant business entity in any country is challenging – and some are much harder than others. If the company chooses to set up a branch office or wholly-owned subsidiary, it can take six months to a year, or longer, before the company is legally able to operate in the region, not to mention several thousands of dollars.
Plus, leaders will need to know about local registrations, bank accounts, corporate/tax filings, administering compliant payroll and benefits in country, and more. Some of the “gotchas” to look out for include bank account setup – it can take months. And some countries require in-person signatures. It’s not always feasible to be physically in-country throughout the entity set-up process.
Lack of At-Will Employment
In the United States, companies can hire and fire at will – as long as the reason for termination isn’t illegal. Outside of the U.S., this is an unknown concept. Employers must prove that an employee dismissal is legally justified, and in many countries, that is difficult to do, and evidence must be documented.
If legal process aren’t followed properly, the company can open itself up to a wrongful termination lawsuit, which can be vastly more expensive, and take years to resolve.
No One-Size-Fits-All Solution
Benefits vary from country-to-country and from individual-to-individual. A global company must adhere to the idiosyncrasies of each country’s laws and customs and still offer “equal” benefits to all employees.
On the plus side, so many countries have statutory benefits plans that in some locations your company may not need to provide supplementary benefits at all.
Understanding the local market norms can help you stand out as an employer of choice.
For global teams, HR should shape equitable benefit offerings around perks that maximize the quality of life for the company’s employees within the context of their own culture. Research what benefits are most valued in a particular location, and what other employers are offering in that market beyond what is required. This helps the company stay competitive, and gives the candidate confidence from the very first interaction with your company.
But all of this takes time, as well as local knowledge and expertise, which can put additional burden on in-house HR teams who are managing the process alone.
Going Forward
So what are the options? One solution to expanding internationally is to use a Global Employer of Record. An employer of record is an organization that serves as the employer for tax purposes, while the employee performs their work at a different company.
Specifically, an Employer of Record such as Globalization Partners helps:
- Onboard employees in over 170 countries
- Manage payroll and taxes – compliantly
- Navigate the complexities of local benefits, PTO, and bonus structures
Working with a Global Employer of Record provides a quick time-to-market, until you reach a critical mass in country, or you can continue with this model indefinitely depending on your business.
By Mason Stevenson
Originally posted on hrexchangenetwork.com
by admin | Jan 8, 2020 | Hot Topics, Human Resources
Today’s workforce looks markedly different than it did just 10 years ago. 1 in 3 workers in the US are millennials and this makes them the largest generation in our current workforce. The way this generation communicates makes it necessary for the office to adjust its messaging strategy. What was seen as top-notch communication tech in the early 2000’s has been replaced by new options. As we peer into 2020, let’s take a look at some new ways to communicate effectively with employees both in an office setting and across the globe.
Video Conferencing
Utilizing tech to communicate in your workplace is essential. Office spaces that were previously filled with people who interacted with one another daily now house screens and common space workstations. Because of this, video conferencing has become a necessity to build a sense of unity and community within a department. Employees that are in the office are able to see and interact with their coworkers that may be at their home office or even across the globe in a different country via video services like Zoom, GoToMeeting, and Skype. Collaborating on projects no longer requires you to sit across the table from your team as you can sit in front of a computer screen and share ideas and update progress.
Project Management
Since it is no longer commonplace to have all employees in the same office each day, managing workflow digitally is a necessity. Sites like Basecamp allow projects to be created and teams assigned to jobs within the project. As tasks are completed, team members update their progress online and everything stays organized. Information is easily shared because anyone can log on and read the latest update or ask for help. Emails aren’t lost in an inbox or spam box as the communication happens on one platform. It’s a great way to manage both a physical or virtual office.
Sharing is Caring
There are so many options for sharing files across platforms and with team members. Dropbox, Google Drive, and OneDrive are just a few examples of online tools to assist your team with sharing data, storing information and files in the cloud, and syncing files across multiple devices. These options can range from very basic and free to very secure and costly depending on your needs. Some services only offer small file storage and sharing capabilities and so you’ll want to do your homework to find an option should you have a large image file or data file that needs to be shared.
TXT 2 TLK
According to a survey with OpenMarket, 76% of millennials say texting is more convenient and allows them to communicate on their own schedule. 19% of them say they never check their voicemails. Why is this important to you? With millennials comprising the largest percentage of of the current workforce, you need to make sure you are communicating with them the best way possible. Texting to communicate upcoming events, meetings, reminders, or even to conduct employee surveys is a great option for relaying information to your staff. One thing to remember is that when sending a message via text, the context or heart behind the message is somewhat harder to convey than when delivering it verbally. Make sure the message is not open to interpretation so that the end result isn’t skewed.
As we ring in the new year, take the time to consider new ways to communicate and conduct business in your physical and virtual offices. Test out the methods mentioned here and maybe you’ll find a great new avenue for connecting with your employees!
by admin | Dec 17, 2019 | Hot Topics, Human Resources
Last year’s 2018 Holiday Party Survey by Challenger, Gray & Christmas found that just 65 percent of companies were holding holiday festivities last year, the lowest rate since the 2009 recession, and this trend is expected to continue into the 2019 holiday season (the 2019 report has not yet been released). While in 2009, holiday parties were skipped for financial reasons, today’s causes are more complex. Andrew Challenger, VP of Challenger, Gray & Christmas, speculated that the two biggest factors are #MeToo and an increase in the number of remote employees.
If your company is among those celebrating the holiday season this year, what can you do to avoid liability from sexual harassment, alcohol consumption, and other categories of risk?
Risk: Harassment Allegations
- Communicate behavior expectations to employees ahead of time. Consider using this language to set standards of conduct. You may even choose to redistribute your sexual harassment policy. Be sure to emphasize that all employee policies apply at the party, even if it is off-site or after work hours. Racial or sexual jokes, inappropriate gag gifts, gossiping about office relationships, and unwelcome touching will not be permitted during the holiday party, just as they are not allowed in the office.
- Do not allow employees to get away with bad behavior. Remind your supervisors to set a good example and keep an eye out for employee behavior that needs managing at the event.
- Follow up immediately on allegations of inappropriate behavior and conduct a thorough investigation of the facts, even if the alleged victim does not file a complaint and you only hear about the behavior through the grapevine. If corrective action is warranted, apply it promptly.
- Invite significant others or families. Employee behavior tends to improve at company events when spouses or partners and children are present. If your budget allows, include the entire family in the celebration. Be sure to review your liability coverage with your broker first.
- Avoid incidents related to relaxed inhibitions by following the tips for reducing alcohol-related risks (see below).
Risk: Alcohol-Related Incidents
- Take steps to limit alcohol consumption. If alcohol will be served, provide plenty of food rich in carbohydrates and protein to slow the absorption of alcohol into the bloodstream. You can also have a cash bar, limit the number of drink tickets, or close the bar early to deter over-consumption. Also have a good selection of nonalcoholic beverages or a tasty signature “mocktail” available. Make sure water glasses are refilled frequently.
- Get bartenders on board. If you have underage workers or invite children of employees, be sure that servers ask for ID from anyone who looks under age 30. Ask servers to cut off anyone who appears to be intoxicated.
- Make sure employees get home safely. Offer incentives to employees who volunteer to be designated drivers, offer to pay for ride shares or taxis, or arrange group transportation or accommodations. Planning for safe transportation can potentially minimize your liability if an employee causes an accident while driving under the influence.
- Do not serve alcohol if your party is at the office and your policies do not permit drinking on company premises or during work hours. Deter employees from an informal after-party at a bar or restaurant where the alcohol could flow.
Risk: Workers’ Compensation Claims
- Keep the party voluntary and social. Typically, workers’ compensation does not apply if the injury is “incurred in the pursuit of an activity, the major purpose of which is social or recreational.” If the carrier determines that the company party was truly voluntary and not related to work, you may not be liable for injuries sustained at the party.
- Go offsite. Hosting your holiday party at an offsite location is a smart idea. Your employees will be thankful for the change in setting, and this could reduce insurance liabilities for your company, especially when it comes to third-party alcohol and injury policies.
- Check with your broker before the party. Review your insurance policies and party plans to make sure you do everything you can to avoid risk and know how to handle any incidents that result from the party.
Risk: Perceptions of Unfairness
- Determine how to handle pay issues in advance of the party. You’re not required to pay employees who voluntarily attend a party after hours. However, nonexempt employees need to be compensated if they are working the party or if attendance is mandatory. If the party is held during regular work hours, then all employees must be paid for attending the party.
- Decide in advance whether and how to include remote employees, independent contractors, temporary employees, or agency workers. Be consistent in sending invitations, and if a category of workers will not be invited to the party, consider other ways to reward them for their hard work throughout the year, such as gifts.
- Do not penalize employees who choose not to attend. The message may be misinterpreted and could create employee relations concerns. Be considerate of those who do not attend the event due to religious beliefs, sobriety, mental health issues, family obligations, child care conflicts, or any other reasons. Avoid religious symbols or themes as they could offend individuals of different faiths.
By Rachel Sobel
Originally posted on thinkhr.com
by admin | Nov 12, 2019 | Human Resources
Diversity isn’t just a moral issue. There is a business case that can be made for promoting diversity and inclusion in the workplace. From recruitment to mentoring, human resources has a main role in the strategy.
Defining Diversity
What is diversity? That’s a two pronged answer. There is inherent diversity. It involves traits a person is born with… gender, ethnicity, and sexual orientation for instance. Then there is acquired diversity. These are traits gained from experience. For instance, an employee who has worked abroad will be more inclined to appreciate cultural difference.
The Harvard Business Review conducted a study focused on two-dimensional diversity. A person with 2-D diversity is said to have least three inherent and three acquired diversity traits. In the study, companies with 2-D diversity out-innovated and out-performed those without it. Those companies were 45% more likely to report growth over the previous year and 70% more likely to report capturing a new market.
Diversity in Practice
TransUnion continues to focus on diversity and inclusion initiatives and has even made key changes in leadership. Instead of positions being held by just men, the company has added some women to the ranks. But it isn’t something that happened overnight and the work continues into 2019. Debra Wasserman is the Senior Director of Compensation and Benefits at TransUnion. She said TransUnion used a top-down approach.
“We started with the senior-most leaders and followed it down throughout the organization,” Wasserman said. “I think to some degree, there needed to be some awareness. So, we had to get this front and center in front of everyone.”
From there, Wasserman says the company has started looking at pay equity. She said some states already require this, but they’ve started looking at it as a global issue as well.
“We don’t have all the answers. We’re just starting to ask questions at this point, but we’re trying to make a move toward a more diverse situation,” Wasserman said.
Impacting Diversity
Diversity and inclusion continues to be one of the dominant topics for HR professionals. There are some way’s HR can really impact change for their respective companies.
In most companies it can be difficult to get a clear picture of what diversity is like for that particular organization.
To combat this, HR teams should monitor diversity. This can be done through audits. This should be done, not only for current employees, but in recruitment practices as well. This will allow for progress to be measured effectively.
When it comes to diversity, HR should focus on building a diverse workforce through recruitment or development. There are a myriad of ways of doing this. Some can be through internal or external partnerships.
Like recruitment, mentoring can be internal or external. For instance, some HR professionals work with schools or local youth groups. This helps with fostering talent early and making sure more diverse individuals are aware of the opportunities.
HR teams should understand it is vital to ensure the diversity of your supply chain. Furthermore, it should reflect your consumer base, but also that there is a business case for supply chain diversity.
In Summation
It is clear HR has a role in diversity. Companies should start, if they’re not already, thinking about making these changes to recruitment, but they will have to implement them as soon as possible.
That said, these steps can help propel the company onto a positive trajectory. Even with positive changes in recruitment, other areas such as mentoring, supplier chain diversity and progression and leadership still need to be focused on to ensure companies are aiding ethnic minority progression within their organizations.
By Mason Stevenson
Originally posted on hrexchangenetwork.com
by admin | Oct 3, 2019 | Hot Topics, Human Resources
Artificial intelligence is pushing humans and machines closer together. It’s exciting! AI’s influences are being felt across the HR space… being used to automate business processes, enhance efficiency, and reduce bias among other things. In fact, McKinsey’s latest forecast of AI’s impact on the global economy is that it will generate $13 trillion in economic activity across the globe by 2030.
But, there is room for improvement, and top executives want it yesterday. A recent survey from PricewaterhouseCooper found 72% of executives believe AI will offer sizable business advantages in the near future. In another survey from IBM, 66% of CEOs believe AI can drive significant value in HR. Some are already exploring those opportunities. Uber, for instance, completed the world’s first cargo shipment using a truck controlled by AI!
State of AI in HR
AI as a Tool
The inclusion of artificial intelligence in the HR professional’s toolbox is not surprising. When looking for answers, look no further than the iPhone, for instance, or the black, cylindrical Echo tower sitting on the counter. Whether its Apple’s Siri or Amazon’s Echo, people are using artificial intelligence at home in their day-to-day lives. It makes sense, then, that AI has made it into the workplace.
In most professional settings, AI is not required to do mundane tasks like answer questions about the weather or turn on the lights. Instead, AI is asked to do much more.
Reducing Human Bias
Humans are inherently bias. Even when striving for inclusiveness, HR professionals may subconsciously lean toward a particular candidate… for instance, someone who is more like the recruiter. Another potential bias, language bias; people’s subconscious word associations could indicate a particular preference.
Now, thanks to AI, algorithms can be designed to help employers identify and remove these biases. That potentially translates to better hiring communications and attracting a more diverse group of candidates. Those same algorithms can also find candidates who may have been screened out due to human bias. To put it in context, AI allows managers to go beyond gut feelings and rely on data-driving assessments.
AI Automation
AI is being used in HR to automate repetitive, low-value tasks thus increasing the focus on more strategic work. AI tools automate common HR tasks like benefits management or handling common questions or requests.
Recruiting through AI
Custom experiences are expected by applicants. These are tailored to unique needs as they apply for a new job, choose the right benefits or explore development opportunities.
Companies have implemented “AI recruiters” to automate scheduling interviews, provide ongoing feedback to candidates and answer their questions in real time. This allows human recruiters to spend more time converting candidates to hires.
Retention
Some companies are using AI platforms to single out employees that may be heading for the exit door. Those platforms track employee computer activity, emails, keystrokes, internet browsing and so on and store it. Then AI analyzes the data to determine a baseline of normal activity patterns in the organization. Based on that knowledge, outliers are flagged and reported to the employer. AI is also being used to detect changes in the overall tone of employees’ communications to predict when employees might be thinking of leaving.
AI Makes HR More Human
At some point in the career of an HR professional the question is asked: how can human resources become more human? At least one company believes it has the answer. Best Buy Canada says it’s to add more machines. Chris Taylor is the chief human resources officer for Best Buy Canada. He has gone on record saying the embracing of artificial intelligence and machine learning applications in human capital management is a “mandatory investment in the future.”
So, why add more machines to make HR more human?
The automation of tasks through AI technology allows for the freeing of HR professionals to focus on uniquely human abilities such as critical thinking, creativity, and empathy. While they are involved with the more human tasks, technology, at the moment, can handle the more mundane tasks.
All of that said, in a lot of ways artificial intelligence is still growing and learning itself.
What does that statement mean? AI is able to search a query based on the words you are using and give you a response, but that response isn’t contextual.
AI is heading in that direction though.
Instead of writing responses specifically to specific inputs… you just have a huge database of language around a specific knowledge domain and the AI can go into that knowledge domain and answer the questions from the user.
HR professionals interested in pursuing AI want it to do much more than answer questions and rummage through applications. They want to use it as a learning platform.
But it’s not there yet.
AI can teach itself to do something, but it’s not at the stage it can replace humans beings as the “drivers of education.” In the future, it may be used that way, but it would require a lot of adaptability.
Taylor says Best Buy Canada is embracing as much technology as they can get their hands on. For instance, the company has started investing in cloud-based solution that uses artificial intelligence, voice technology and machine learning. All of these technologies, Best Buy Canada hopes, will better the employee experience.
Conclusion
As much as the HR technology landscape continues to be disrupted by AI, HR teams must find ways to balance these advancements with transparency. It is essential in making sure the implementation of AI technology is successful. At the end of the day, artificial intelligence is not the end-all-be-all answer to every quandary HR finds itself in. It is a tool and nothing more. A tool that can improperly function based on the data it is given in order to work effectively. Even so, artificial intelligence can be a valuable resource. Work to embrace it now because it’s likely you’ll be expected to use it in the future.
By Mason Stevenson
Originally posted on hrexchangenetwork.com
