by admin | Jun 5, 2023 | Employee Benefits, Human Resources
Total rewards packages refer to the compensation and benefits plans that companies offer. This phrase, however, extends beyond mere salary or wages and traditional benefits, like health insurance, to provide both recruits and employees with a rundown of what makes the employer special. Some in Human Resources might regard the total rewards package as the starting line for employee value proposition (EVP).
Here are the different components of a total rewards package:
Compensation
Compensation, which may refer to wages or salary, is the obvious main feature of the total rewards package. People get paid for their work, so they can afford housing, food, and the basic necessities of life. The money you’re paid to work may include the chance for bonuses and other merit-based rewards, in addition to salary or wages.
Basic Benefits
The most well-known benefits include health, vision, and dental insurance. People have come to expect some form of medical insurance for full-time employment in the United States. In fact, most rely on this benefit for their healthcare because private insurance is astronomically expensive without group membership, and the United States does not have a public option.
Retirement Plans
Offering 401(k) or IRA plans have also become the norm. Companies previously rewarded loyalty with pensions that could help people survive after employment ended. However, nowadays, pensions have been replaced by these other retirement plans, which rely on sometimes volatile markets. There are penalties for taking the money out of such accounts before retirement.
Paid Time Off (PTO)
Paid time off is not a given in every job. However, it refers to the time people are allowed to take vacation, recover from illness or injury, and celebrate holidays while still getting paid. This can include vacation days, sick days, and bank holidays.
Nowadays, some companies are getting creative with PTO. They may include shared days off, where the entire organization takes a break and gets paid. Or they might have unlimited PTO, which means people do not have to accrue or earn days based on seniority. Rather, they can take off when they need to without limit. In those cases, however, employers use an honor system to ensure people do not take advantage of the system.
Family Leave
This is key for new parents, those tending to loved ones who are ill or elderly, or those facing a longer-term illness themselves because they can take time off for care. However, family leave does not have to be paid. Approved family leave requires employers to hold the position for the person, but they do not have to be paid during that time off. It depends on whether they company offers pay for family leave. Many do pay for maternity leave for up to three months, and many others are offering paternity leave now, too. Assessing employment law is a necessity in these cases. And job applicants must do their due diligence when vetting potential employers if they think they may need leave at some point.
Learning and Development and Career Paths
Employees are seeking opportunities to learn, grow, and develop in their careers while on the job. Therefore, more employers are trying to offer training, classes, reimbursement for tuition or coursework, mentorship, leadership development, and other opportunities to gain skills necessary for raises and promotions. It will also help the individual and the employer remain relevant as the skills gap becomes more of a problem in the future of work.
Mental Health and Wellness Programs
For decades now, people have looked to their employers for gyms or gym membership. But now everyone is thinking beyond physical health to mental health as well. As a result, access to mental health help, employee assistance programs (EAPs), classes on mindfulness or yoga, apps for stress management, and more are on the table. Many employers are responding with a wealth of benefits related to wellness and well-being.
Free Food
Providing free lunches, snacks, or special occasion treats has been a hallmark of American companies. Many of the tech giants have campuses that provide services from dry cleaning to dental work, and free food in the cafeteria is a given. As employers try to convince people to return to the office in this post-pandemic era, they try to lure them with bagels or pizza or even other more gourmet options.
Work-Life Balance
Flexibility in where and/or when people work is going mainstream. As the gig economy gains steam, people expect to have more flexibility in their scheduling. Offering remote or hybrid work schedules, understanding when someone must pick up their kid from school or go to a doctor’s appointment, and allowing people to execute asynchronous work during off hours are benefits that impact work-life balance.
Ultimately, the total rewards package a company offers is the first sign of its relationship with employees. It tells the story of how talent is valued by an organization. It usually requires more than just money to satisfy recruits and employees.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | May 4, 2023 | Human Resources
The biggest challenge to employee engagement is burnout, according to the more than 400 respondents to the HR Exchange Network State of HR survey. Burnout, with 23% of the vote, was the top concern for motivating employees.
WHAT IS BURNOUT?
Burnout is a psychological syndrome emerging as a prolonged response to chronic interpersonal stressors on the job, according to the National Institutes of Health. The three key dimensions of this response are an overwhelming exhaustion, feelings of cynicism and detachment from the job, and a sense of ineffectiveness and lack of accomplishment.
Knowing this definition of burnout makes the second biggest challenge to employee engagement all the more interesting. In the same State of HR survey, 20% of respondents said the blurring of work and life was the biggest threat to employee engagement.
Clearly, HR professionals are aware that people feel overworked and overburdened by their job. More than 75% of surveyed HR leaders reported an increase in employees identifying as being burned out, which was up from 42% in September 2020, according to a Conference Board survey in 2022.
Although the concept of burnout dates back to the 1970s, the World Health Organization (WHO) only first recognized burnout as an occupational phenomenon in its Revision of the Classification of Diseases in 2019. This led the WHO developing suggestions for workplace well-being, which HR Exchange Network recently outlined for readers.
WHAT SHOULD HR DO ABOUT BURNOUT?
Judging from the State of HR responses, addressing burnout is vital to any effective employee engagement strategy. The problem is that the same survey showed that HR professionals are concerned about the possibiity of recession, budget cuts, and other consequences requiring they do more with less. This economic downturn makes the workplace ripe for burnout.
Still, prioritizing mental health and wellness is evident in the survey responses, too. While 55% of respondents said medical, dental, and vision insurance was the top benefit being offered or under consideration, wellness programs (53%), employee assistance programs (45%), and mental health coaching (38%) came in second, third, and fourth place on that list.
Also, 22% of respondents to the State of HR survey said retaining top talent was the biggest challenge they faced as they confront the future of work. In other words, keeping people healthy and at the company is of the utmost importance at a time when demographic shifts are causing a labor shortage, companies are laying off some workers, and everyone is grappling with the arrival of advanced artificial intelligence that is transforming the workplace.
Indeed, Human Resources professionals and employers are recognizing that mental health and wellness of employees directly relates to their success, engagement, and retention. As HR creates human-centric organizations that rely on people first to carry out the vision of an organization’s leaders, it must contend with the fact that humans must be healthy to perform to their full potential. While burnout is happening just about everywhere, HR is taking on the burden of fighting it. In fact, it’s a matter of aligning business objectives with talent management.
By Francesca DiMeglio
Originally posted on HR Exchange Network
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
by admin | Mar 20, 2023 | Human Resources
As businesses big and small struggle with high inflation and an economic downturn that may turn into a recession, recruiting and talent acquisition often gets pushed aside. Human Resources leaders are doing more with less and trying to handle the additional stresses of the times. As a result, strategizing for the future – when the economy may be better – is not a priority.
Recently, HR Exchange Network put hiring back at the front burner at the Recruiting and Talent Acquisition online event. During the sessions, experts shared their advice for pursuing talent, dealing with layoffs, and positioning one’s self for a brighter future. Here are the main takeaways:
Flip the Old Layoffs Script on Its Head
Once upon a time, people got laid off and it was their problem. Now, communities come together to help. Recruiters are among them. Ky Cunningham, Director of Talent Acquisition at Hair Cuttery Family of Brands, mentioned how she appreciates the fact that people unite to help those who have been laid off to find a new job. While she found this fact to be a beautiful gesture, she also wants people to realize that the application process is challenging.
“It’s not just rainbows and kittens, but it’s also making sure you’re well-informed throughout the process,” said Cunningham, who later in the session suggested that those seeking a job call people inside the organization and try to get the real deal about the culture, transparency, and mission.
Recognize the Depth and Breadth of the Talent Pool
In the age of remote work, employers are no longer limited by geography, and people have a range of new options available to it.
“So we can say that talent no longer necessarily needs to move to get a world-class job in a world-class company,” said Barry Rudden, Global 3rd Party Director at G-P. “Said another way, we can say that talent no longer needs to move for opportunity. In many cases, opportunities now follow talent wherever they may be located.”
Use Artificial Intelligence for Efficiency in Hiring
AI has shown the most promise in Human Resources when it comes to recruiting. In fact, the advanced technology is so good that many people fear it will replace them eventually. But Vikram Ahuja, Managing Director of ANSR and Co-Founder of Talent500, reassured the event audience.
“AI and machines are essentially good at automating simple and repetitive tasks, making sense of data, identifying trends and patterns, enhancing human capabilities, and learning and improving continuously. So, that’s really what AI does. What it doesn’t do is replace humans.”
Handle Layoffs with Care
Layoffs are happening every day, even at some of the biggest companies in the world, including Microsoft and other tech sector companies. Erica Briody, former SVP, Global Talent Acquisition and Leadership Hiring at REEF, opened up about having to lay off talent. She offered alternatives to letting people go, and discussed how hard it can be for HR after having recruited the people in the first place. An important part of the process is being transparent.
“The most important thing you can do is consult with your employees and explain to them what’s happening, and be transparent and get them to feel part of the process, and not telling them what’s happening,” said Briody. “Get them involved. No downsizing alone, and it’s been proven over and over again.”
Being Human Never Goes Out of Style
Kurt Webster, Director of Recruitment & Workforce Planning at MainGeneral Health, reminded the audience that some things never change regardless of the unique challenges presented to the workforce in recent years. There are basic truths that can carry recruiters into the new world of work.
“You know, as human beings, we’re not just a title, a job, a scripture set of tasks,” said Webster. “We want to be valued as human beings. One of the things I think that’s important in this case from our CEO here is we honor each person for the intrinsic value as a human being.”
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Feb 27, 2023 | Human Resources
Employee engagement is the top priority of respondents to HR Exchange Network’s latest State of HR survey. Obviously, employers are keen to engage employees to increase productivity and retention. However, the economic downturn and inflation is complicating matters, and Human Resources leaders are seeking new ways to reach talent.
Recently, Eric Mochnacz, strategic senior HR leader and Director of Operations at Red Clover, shared his ideas about how to move forward and keep morale up, even in lean times. Here’s what he had to say:
HREN: First of all, do you think employees are going to continue with the leverage that they have? Or is that going to shift again?
EM: We’ve argued that it’s a job seekers market. Job candidates and employees can demand more. I think job seekers are more in the driver’s seat. However, they will probably come to future employers with more reasonable expectations. Recently, I got into it on LinkedIn with an individual who was honest. He said that if you were in talent acquisition, and you were making x amount of dollars, you have to be realistic about what some of these companies are willing to offer you. You may need to take a salary cut.
Obviously, we want people to feel like they are paid their worth. But I think what happened – and this is true for many of our clients – is they were getting people stolen from them because these companies were just throwing an exorbitant amount of money to win talent. That’s where a lot of people got burned.
Employees and job seekers will have the opportunity to say, ‘Listen, I still want remote work. I still want flexible scheduling. I think that’s still a good negotiating point for people. I think where employers will get savvier is that they will not throw money at job candidates like they did before. They’re going to be a little more conservative. Job seekers will have more realistic expectations about what they’re going to be able to find. If you’re from Meta or Twitter, when you think about becoming a software engineer at a 10- to 15-person firm, you must realize that they probably cannot afford what Meta and Twitter were able to provide.
However, we tell our tech clients to remind people that they will have a constant stream of customers, so they can offer job security. That’s the difference.
HREN: What are some of the best practices for employee engagement to keep productivity and morale up?
EM: It’s critical that how they communicate from this point on with employees helps them understand their standing in the organization. There’s been a lot of hot takes, and I’ve participated in some about how Elon Musk handled Twitter versus how Mark Zuckerberg handled Facebook.
If the company ultimately believes that the decisions they make will right set the organization, and they don’t think they’re going to need to make any layoffs in the near future, HR should say, ‘Listen, this was why we did X, Y, and Z. We think we will be successful in addressing the problem. We are relatively confident that we won’t need to do another round of layoffs.’ Again, nothing is ever guaranteed. I also think it probably requires HR leaders to get a little more face time with employees.
There’s probably this pervasive feeling of I’m doing more with less, and I’m not going to have the opportunity to find someone to relieve some of the work pressure. So, what are we doing? What’s the company doing? What are we doing to look forward? HR – I hope it’s part of the strategic leadership team – should be able to adequately respond to those questions. They must be able to listen and say, ‘So, you’re saying that you’ve now taken on the work of two other people, because we let them go? The solution to this problem is that we need to show your value. We don’t want to lose you.’
What needs to happen? I think it’s just more intentional communication with the remaining workforce, helping them feel valued, really listening to what they have to say. Then, you must use that to develop strategy into Q1 and Q2. Continue to communicate that effectively. Say, ‘We can’t hire more people now, but if things adjust, we might be able to do so in the next quarter.’
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Feb 13, 2023 | Human Resources
There aren’t rules for how frequently you should update your handbook, but given laws do change, it’s smart to be proactive so you don’t get caught off guard.
An updated employee handbook helps employees understand what’s expected of them, and helps managers ensure company policies are followed.
We’ve identified four reasons to revisit your employee handbook in 2023.
New year, new employee handbook? There aren’t any hard and fast rules that require your handbook to be updated at specific intervals. But instead of assuming it’ll get you through 2023, there are good reasons to treat it like the living document it is.
First, the implementation of updated, clear policies that both employees can understand, and managers apply consistently will help employees feel like they’re being treated fairly.
Next, having a handbook that you know is up to date with current laws (and well understood by managers) can help reduce the likelihood of a claim against your business. Plus, if an employee or former employee does file a claim, a handbook can provide valuable documentation to demonstrate that your business has equitable and compliant workplace policies in place.
Here are 4 policies we think you should pay attention to in 2023:
- Personal Appearance/Grooming (CROWN Acts): Employers with dress codes or appearance policies need to keep an eye out for CROWN Acts, as these laws generally protect traits associated with race, including natural and protective hairstyles. If you have policies that prohibit afros, dreadlocks (a.k.a. locks), or hair past a certain length, they’ll need to be revisited. Even if you aren’t subject to a law that protects natural hairstyles, we recommend removing restrictions that are more likely to affect employees of a particular race, sex, or religion, in order to increase inclusivity.
- EEO (for CROWN acts and many others): Equal Employment Opportunity policies generally list the classes or characteristics that are protected by federal and state law. We see a handful of new state-level protections every year, so employers (especially those operating in multiple states) need to ensure that their EEO policies are up to date.It’s common for employee handbooks to say that they won’t discriminate based on the federally protected classes, and then say, “and any other class protected by state or federal law”. This catch-all is a nice idea, but many employers aren’t aware of all the classes that are protected by federal and state law. As a result, they can be caught off guard – and in a lawsuit – because they simply didn’t know the actions they were taking were considered illegal discrimination.That’s why we recommend including the full list of protected classes in the employee handbook. More knowledge is better. Also, managers have a duty to ensure that employees aren’t harassing one another based on their inclusion in a protected class. And if your managers aren’t aware of the full extent of their responsibilities, they’re going to have a much harder time keeping your workplace in compliance.
- Sick leave policies: State sick leave laws were trending even before the pandemic and that hasn’t let up. Even when we’re not getting brand-new laws, we’re seeing expansions of the existing requirements to cover more situations. Given employees’ heightened awareness of how disease spreads and an increased desire to avoid illness, we recommend revisiting your sick leave policies — even if they aren’t required by law – to ensure that employees are encouraged to stay home when sick.
- State Family and Medical Leave: State family leaves, whether paid or unpaid, are being passed at a steady clip. These usually interact with FMLA as well as benefits offered by the company, so it’s appropriate for employers to have this laid out in their handbook so that both managers and employees know when these leaves apply.
Taking steps to ensure your employee handbook reflects today’s workplace just makes sense. Your company isn’t stagnant, and the regulatory environment in which it operates certainly isn’t standing still. So, whether you review it annually, every six months, or quarterly, be proactive about updating your employee handbook in 2023. You’ll be glad you did.
Originally posted on Mineral
