by admin | Aug 23, 2022 | Hot Topics, Human Resources
Today’s offices potentially span five full generations ranging from Generation Z to the Silent Generation. A coworker could just as easily be raised with a smart phone in hand as they could have used a typewriter at their first job. Some see differences between generational colleagues as an annoyance (“kids these days!”) and many rely on generational stereotypes as fact. Current research questions the validity of generational stereotypes. This series uncovers top generational myths as a strategy to support a diverse and healthy employee population.
The U.S. population soared following World War II and this surge created the aptly named Baby Boomer generation. This generation was born between 1946 and 1964 and represents the eldest colleagues at work. The top three myths of Baby Boomers include:
- Baby Boomers don’t understand technology.
This stereotype has been overplayed in popular media. (The older colleague scared of Excel who needs to call the helpdesk to send a Slack message.) The truth is that a member of this generation (Tim Berners-Lee, to be exact) invented the internet. And while their zeal for new apps will likely not match your fresh college graduates, they are still more than capable. Between 76% and 81% of Boomers go online regularly. Give them a chance.
- Boomers are traditionalists.
The real question is, how are you defining tradition? Because Baby Boomers were the firsts in a lot of meaningful areas that can hardly be called traditional. Many Baby Boomers were idealists and had no problem taking action to support their social and political visions. This same vigor is seen in the workplace. For example, more Boomer women entered the job force than prior generations, increasing representation in the workplace. Just because this generation doesn’t share some of the same proclivities as younger generations, don’t assume they won’t speak up for what they want or will accept the status quo.
- Boomers are ready to exit the workforce.
With the older members of this generation approaching 80 years old, many assume this group is on its way out the door. The facts tell a different story. A 2018 Pew Research Study showed that close to 30% of Boomers in the 65-to-72-year age range were engaged in looking for a job or working. Baby Boomers aren’t sitting back on their heels (nor can they with the additional income needed to support the longer lives they lead in comparison to their parents’ generation). They want to stay connected with the workforce whether this is staying on staff in a full-time capacity or finding a part-time job where they can explore their hobbies. Boomers make great mentors as well so don’t pass up this opportunity to learn from your elders.
Baby Boomers had, and still have, a heavy pull in corporate America. This is a result of their group’s size, as well as their plans to stick around the office longer than expected. They may be more technology savvy than assumed and can’t be boxed into the traditionalist category. Finally, Baby Boomers are full of institutional knowledge that other generations should soak up.
This is the last article in the multi-generational myths series and can serve as a warning to not judge a book by its cover. While generations are affected by similar political, social, and economic events, they also develop in nuanced ways.
© UBA. All rights reserved.
by admin | Jul 27, 2022 | Human Resources
The United States, like some other countries around the world, including the United Kingdom and China, are facing an inflation crisis in this post-pandemic era. Inflation has great influence on Human Resources because it can cause the need for wage stagnation and budget cuts. The biggest disappointment during times of high inflation is the possibility of layoffs.
First, HR professionals should fully grasp inflation, which is the general rise in the prices of all consumer goods and services. The United States turns to the Consumer Price Index (CPI), which is measured by the U.S. Bureau of Labor Statistics, to gauge inflation, according to the Guardian. In fact, the United States is experiencing a 40-year high in inflation. Prices rose 8.5% year over year in March 2022.
Understand Inflation
There is no one root cause for inflation. Over the past few years, the world economy experienced a perfect storm that included a once-in-a-century pandemic and necessary stimulus, continuous lockdowns in China that have damaged supply chains, and a war in Europe between Ukraine and Russia that costs money to fight but is also hurting the world’s food and gas supplies.
In the United States, HR leaders are facing these challenges like everyone else. But they have one other issue with which to contend: the Great Resignation. (Some refer to it as the Great Reshuffle.) People are continuing to leave their jobs to seek better employee experiences, benefits, and compensation packages. In fact, 4.4 million people voluntarily quit, and companies doled out a record low 1.2 million layoffs in April 2022, according to CNBC. In addition, employers had 11.4 million job openings.
Some experts are saying it is the tightest job market on record. What seems like good news for the economy can actually mean that the country is headed for recession. If people have well-paying jobs and money to spend, demand goes up and so do prices. When this happens and supply is short, inflation skyrockets. Eventually, wages can not keep up with inflation, and people start cutting back on spending. Then, recession can begin.
Obviously, if the economy enters recession, companies will be tightening their belts. As a result, they may have to cut down on labor costs and do more with less. This often leads to layoffs and other budget cuts.
What’s Happening Now?
While some sectors, such as tourism, are bouncing back after the pandemic, others are slowing down. All those tech companies that earned boosts during the lockdowns saw drops in sales. Technology companies are already experiencing some hiccups in the job market. Uber, Microsoft, Twitter, Wayfair, Snap, and Meta (parent company of Facebook) are either slowing down hiring or putting hiring freezes in place. Netflix, Peloton, and Carvana laid off employees.
Still, these are the exceptions and not the rule. Most companies are still facing a shortage of labor, and unemployment remains historically low. Job candidates and employees have all the leverage despite concerns about a looming recession.
The Consequences
However, there are some signs that the tide may turn. First, the job market has to cool, which means fewer jobs can be available, for inflation to go down. Full employment, when everyone who wants a job has one, will make inflation rise. At some point, especially with gas and groceries costing as much as they do, individuals will not be able to walk away from jobs as easily. In addition, the companies will get leaner and do more with less, so they will stop hiring as much.
Some organizations have pumped up their hiring to meet the post-pandemic consumer demand, and they may then have to lay off their employees in response to a downturn in the economy. At that point, there may be another shift that gives leverage to the employer again. The question remains whether the transformation in treatment of employees, compensation and benefits, and work-life balance initiatives will endure in a recession.
If HR professionals must lay off their employees, they should have a plan and be kind. Those who have laid off people via Zoom or with harsh words have lived to regret it in the age of social media, when people share everything. Unfortunately, layoffs happen. It’s how HR leaders handle them that separates the professionals from the amateurs.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Jul 14, 2022 | Hot Topics, Human Resources
American workers are notorious for being workaholics. In fact, The Center for Economic and Policy Research has gone so far as to call the U.S. the “No Vacation Nation.” Deciding you need a vacation may feel indulgent but in reality, it is a crucial key to our overall health.
Why do you need to take a vacation?
Simple.
As much as we all need to work and do our jobs, the mind and body also need to be refreshed.
So put down your phone, tuck away your laptop and enjoy these five reasons why vacations are necessary for your health:
Decrease in Heart Disease – Going on a vacation gives you overall health benefits that can impact your life for years to come. Taking regular vacations could help reduce the risk for metabolic syndrome – a cluster of health issues including high blood sugar, high blood pressure, excess belly fat and abnormal cholesterol levels. All of these symptoms raise the risk for heart disease, stroke and type 2 diabetes.
Relieves Stress – Stress can have a negative effect on all aspects of your health–physically, mentally and emotionally. Headaches, back pain, anxiety, irritability, lack of concentration and frustration are just a few of the harmful effects of stress. Taking a vacation helps relieve the built-up anxiety, which can lower your blood pressure, help you sleep better and build up your immune system. Holidays will not only help you relieve stress but can help you manage it better when you get back to the real world.
Increases Productivity – It may seem counterintuitive to leave work and take a relaxing vacation to increase your productivity, but it’s surprisingly effective. Numerous studies reveal taking vacations is closely linked to productivity. Employees who take long, regular vacations return more energized, productive, and positive.
Enriches Your Personal Life – U.S. children with working parents report that their parents are bringing their work-related stress home with them. Additionally, kids have significant stress of their own. Vacations offer all family members time to relax, decompress, and the opportunity to connect with one another.
Quality of life is dependent on how you appreciate yourself and those who are around you. It could be with yourself, family or friends; but only vacations from a busy schedule can offer you time to appreciate the people around you.
Builds Your Immune System – A busy life wears you down. You can fight it all you want, but eventually everything will be too much and exhaustion will set in. When you’re tired and stressed from work and your home life, you’re more susceptible to catching the cold and flu. Vacations help relieve stress, allowing your immune system to build back up.
It is important to be selfish sometimes. As the old saying goes, “all work and no play makes Jack a dull boy.” Getting out of your comfort zone and experiencing something new is good for your body, mind and those around you.
by admin | Jul 5, 2022 | Human Resources
Payroll works the same way in almost every full-time job. Employees earn money by working, and they all receive their earnings on a set date: payday. However, in an era of same-day shipping, on-demand movies, and unlimited mobile access, individuals are increasingly expecting prompt access to nearly anything they need. For employees, this also means getting quicker access to their paychecks.
What is On-Demand Pay?
On-demand pay, or earned wage access (EWA), is an employee payment method in which employees can access wages already earned and owed before the traditional bi-weekly or monthly paycheck.
As Americans face rising costs for everyday essentials, health care and other needs, on-demand pay provides employees with more control over their finances. Did you know that fewer than four in 10 Americans could afford an unexpected $1,000 expense? And we all know that expenses don’t occur on a neat two or four-week cycle!
Growing Payroll Trend
Financial wellness is the new “must-have” employee benefit . According to recent data, 64% of Americans are living paycheck to paycheck. Financial stress can lead to unproductive, disengaged or absent employees. On-demand pay can offer employees access to some or all of their earned wages to help pay bills on time and better manage their living expenses. Additionally, Millennials and Gen Zers are asking for on-demand pay and they’re willing to limit their job searches to employers that offer that option.
Financial Wellness
People show up to work each day because of their desire for long-term financial wellness. Often, financial wellness has been approached with contributions to a 401(k) plan and other benefit-related compensation. But what about everything between now and retirement? Things go wrong. Cars break down, houses need repairs and there are unexpected medical bills. For many workers, waiting 2 weeks or more to get their paychecks leaves them in a bind. In the past, employees have turned to credit cards and payday loans to make ends meet when needed. However, these options are notorious for having high interest rates and hefty fees.
In today’s fast-paced culture – where Americans can get anything with the click of a button – it’s not surprising that on-demand pay appeals to many workers who don’t have savings to handle unexpected expenses. On-demand pay is projected to grow quickly. Three years ago, very few companies had even heard of it. Today, it’s not a question of whether a company will adopt the benefit but when.
On-Demand Pay Execution
Of course, this means that companies might need to update their payroll infrastructure because on-demand pay would require some changes with the payroll department. However, there are various automated solutions that offer systems that can easily integrate with most payroll software. These solutions enable employees to check how much they have earned and withdraw a percentage of their earnings without putting stress on the payroll team. When employees access their net pay before their regular pay date, the wages they access are deducted from the total earnings they’d receive on pay day.
Methods to Provide On-Demand Pay:
- Direct Deposits – Employers provide immediate wages to an employee’s bank account.
- Prepaid Debit Cards – Employers provide a prepaid or payroll card for employees who wish to avoid banks.
In tough economic times, the companies that take the best care of their employees are the ones that emerge stronger. While on-demand pay is a newer concept, it’s one that is worth serious consideration – especially because it shows all signs of staying around for the long haul.
by admin | Jun 30, 2022 | Human Resources
As HR leaders work hard to retain talent during a historic labor shortage, they are trying to show employee appreciation. At the HR Exchange Network Employee Engagement and Experience online event, Mary Shelley, Chief People Officer at Tango Card, shared best practices for rewarding employees to inform them of their value to the organization.
In the session, 5 Questions to Ask When Building an Employee Appreciation Strategy to Last, Shelley admitted there are challenges to creating a rewards program. In fact, a poll revealed that 31% of audience participants feel their inadequate budget is an obstacle. Nearly 30% said no organizational engagement was prohibitive when trying to launch a rewards program. Other problems included being time intensive (12.1%), too complicated (13.8%), or something else (13.8%).
Discover how to launch an employee appreciation program:
Start Small
Shelley suggests HR leaders come up with one thing they can do right now to move the needle. For instance, they could talk to employees to determine what kinds of rewards would motivate individuals on the team. The reward should be meaningful or else it won’t produce that sense of incentive.
“Learn about what each person finds motivating,” says Shelley.
Balance Informal and Formal Recognition
Sometimes people mistakenly believe that they have to invest a lot of money or time into offering a reward. But there are simpler ways to recognize colleagues for their hard work and dedication. For instance, some companies leave thank you cards out in the office, so peers can write them and deliver them to each other’s desk. It’s a small cost in time and money, and it can reap great rewards as Shelley, who has done this, attests.
Diversify Rewards
Offer different kinds of rewards to appeal to a larger group of people. To keep people engaged in the process, there should be different prizes to try and attain. As companies diversify rewards options, however, they should also be transparent.
“Employees and managers should know how to give and receive rewards,” says Shelley.
In other words, they should know exactly what is expected of them if they want to win rewards XYZ. Employees should also know how they could offer recognition to a colleague who has impressed them with their work.
Build in Anticipation
“Anticipation is everything,” says Shelley. In fact, some employees say the anticipation can be greater than the reward itself, she adds. Talk about what it will be like if a team or individual achieves the requirements to win the reward. Discuss the experiences of those who have won before to help others dream about it.
Automate
Automation is a great way to integrate rewards programs in hybrid and remote workplaces. For example, some companies have a “givekudos” Slack channel, where teammates can give shout outs to those who have done well or helped them, and they automatically get a $10 gift card.
Avoid Pitfalls
HR leaders can easily fall into common traps when doling out rewards. A big mistake is to just hand out rewards as a means of “checking the box,” warns Shelley. After all, people realize when something is given to them ingenuously.
Another error is making the program overcomplicated. Shelley shared the story of a colleague who created a rewards program with different levels and lots of qualifications. It was too cumbersome, and no one understood how to give or receive rewards. So, they had to pare it down and simplify.
Being one-dimensional without giving thought to all the possibilities is a pitfall that HR leaders can avoid by thinking outside the box. Overcompensating to make up for low appreciation scores is another way to defeat the purpose of a rewards program. Employees should feel special and appreciated.
Finally, employers should assess whether they are rewarding the correct behaviors. Shelley shares the story of a previous employer, who handed out awards to hard workers who had been burning the midnight oil. But the company included a value about maintaining work-life balance. It didn’t match with their mission, and it sent the wrong message.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Jun 20, 2022 | Human Resources
U.S. President Joe Biden recently laid out his plans to combat inflation and the high cost of living. The average family is spending an additional $327 per month compared to pre-pandemic costs, according to a CNN broadcast May 10. At the time, the national average price of gas was $4.37. While the Federal Reserve can do more to influence inflation than the President, his announcement is welcome because people are suffering and some economists believe a recession is looming.
Under normal circumstances, the economy can cause burdens for HR leaders. In this case, businesses are still confronting uncertainty that comes from an ongoing pandemic, war in Europe, and a labor shortage. This is not to mention a mental health crisis and increased obligations for employers when it comes to employee engagement and experience.
The first step in addressing the negative impact of the economy is being realistic about the current situation and understanding how it impacts HR:
Some Can’t Afford RTO
Many companies are finally deploying their return to office (RTO) plans from 2020. Employees and leadership are at odds, in many cases, about whether to return or continue to work from home. One of the arguments workers have about WFH is that it is cheaper.
Some employees are quitting because they cannot afford the commute or lunch costs that come with returning to the office. Childcare, which has always been a problem for working parents, is another huge expense. In some cases, people end up paying to work, and it becomes more affordable to quit. HR must keep this in mind when considering wages and salaries.
Compensation and Benefits Packages
During this time of historic labor shortage, HR leaders are reassessing their compensation and benefits packages because they want to be competitive. Employees have leverage and higher wages has been one of the most requested benefits for obvious reasons.
“The talent shortage has boosted pay, but not enough to keep up with inflation,” according to The New York Times. “Wages grew 5.6% in the last year.”
Another obstacle for HR professionals is that increasing offers for new hires ended up creating an uneven divide between them and their veteran counterparts. Now, in some cases, loyal employees who stayed with their employers are earning less than new hires. With this kind of inflation, they may be lured by the prospect of higher pay elsewhere, which could continue the cycle of the Great Resignation.
Budget Concerns
Money is obviously not going as far as it used to go. Therefore, HR professionals should worry that this economic reality could cause budget cuts. For now, 79% of corporate finance executives say their budgets will be larger in 2022 than in 2021, according to Billing Platforms annual 2022 Trends in Finance Survey. With inflation as high as it is, they should prepare for cuts at some point. This could mean fewer resources for learning and development, employee engagement and experience initiatives, compensation and benefits packages, and more.
Travel Constraints
At the moment, most headlines point to Americans’ desire to get back on the road and see people face to face for personal and professional meetings. However, with gas prices and inflation this high, many budget conscious employers may pull back on travel budgets.
The United States is also preparing to confront another surge in COVID-19 cases. RTO poses risks, especially for vulnerable employees with comorbodities or those who live with at-risk people. In addition, parents of children under 5, who are not yet eligible for vaccination, have expressed concerns about both RTO and having to travel for work.
Solutions
Every department in every business must face the reality of inflation and higher costs. HR is no exception. In the case of HR leaders, rising costs is a people problem. Employees will need more money to support their families and to make work valuable to them. In addition, the business itself will have to constrain spending in areas like travel and perks. Maybe those free lunches will have to stop.
Still, there are some solutions available to HR. Promoting people from within the company as opposed to hiring new employees is a way to save money and improve retention. Being transparent about the limitations on wage increases and offering other less expensive benefits to compensate are other ways to address the problem.
Of course, travel can be replaced with videoconferencing and digital events that can be conducted from home. HR leaders have had to stretch resources before and will certainly have to do it again in the future.
By Francesca Di Meglio
Originally posted on HR Exchange Network
