by admin | Feb 22, 2022 | Human Resources, Workplace
Since the start of the pandemic, the gig economy has become more ubiquitous. Human Resources leaders need to understand the new kind of worker attracted to the world of gigs, and learn how to make that kind of non-traditional worker fit into their teams.
Some mistakenly believe that the gig economy, also known as the shared economy, only refers to on-demand jobs like driving for Uber or Lyft or making Amazon deliveries. However, it is also applicable to white-collar jobs. It’s becoming a solution for employees, who need more flexibility, and employers, who need talent during a historic labor shortage. The HR Exchange Network’s State of HR Report revealed that HR leaders hold flexible work culture as a top priority, second only to employee engagement and experience. Buying into gig work might be a way to address both those priorities.
What Is the Gig Economy?
“The gig economy is a free market system in which temporary, flexible jobs are commonplace and companies bring on independent contractors and freelancers instead of full-time employees, and in many cases, for short-term engagements,” according to Embroker.
A look at the numbers demonstrates how important it is for HR leaders to pay attention and get up to speed on how this new kind of work arrangement could influence their business. By 2023, the global gig economy is expected to be a $455 billion industry, according to Harvard Business Review. Two million new workers joined the U.S. freelance workforce in 2020. In fact, one in three working Americans rely on freelancing for all or part of their income. Gallup estimates roughly 57 million Americans are gig workers, according to Forbes.
“The rapidly accelerating growth of the gig economy represents one of the most significant and all-encompassing challenges faced by Human Resources professionals,” according to SHRM. “The fundamental question is whether Human Resources can demonstrate the agility to lead the change in culture, programs, processes, and policies originally designed for work completed by full-time employees to a new era when more of the work is being completed by a talent portfolio increasingly represented by contingent workers (also referred to as gigsters, free agents, temporary help, agency workers, on-call workers, contract workers, independent contractors, or freelancers).”
Pros of the Gig Economy
Affordable Labor
A full-time employee requires a salary and benefits. You have to make hefty investments in training and career progression. Hiring an on-demand worker eliminates the need for all that. You pay them per project or on an hourly basis for as long as you need them. They usually can work remotely or only need to come into an office or place of business on a limited basis.
Specific Skills or Talents
Sometimes, you need an expert in an area for one or two projects and not on a regular basis. Being able to hire contract workers as you need them means you can look for exactly what you need at that moment. You don’t necessarily have to worry about well-rounded skills like you might with a full-time hire.
Flexibility
Freelancers and on-demand hires offer flexibility. Even if you’re renewing a contract with one of them on a regular basis, you only have to pay them for the work they actually do. You can turn to them when the work demands more help or when their particular service will enhance outcomes.
Cons of the Gig Economy
Carousel of Workers
Team dynamics can be hard to pin down when you are always working with different people. Even if you consistently work with the same freelancers, they are not bound by the same participation expectations as full-time workers. This can make it even more challenging to define a culture or help teams better collaborate.
Different Kind of Relationships
There’s more of a hierarchy when you are working with full-time employees. Managers and supervisors oversee their work and usually provide some sort of performance measurements to track their progress. With freelancers, you are their client. They are still working for you, but it changes the dynamic of the relationship.
This becomes most complicated with contingent workers, who work consistently for a company but without job security or traditional benefits. They do this for a number of reasons, including having more freedom over their schedules, being able to work for others, and being their own boss. As a result, the contract dictates their work more than the manager does. However, the manager or company could end up being a dissatisfied customer, and contingent workers can be let go at any time and you don’t have to prove they deserved to be fired.
Lack of Routine
If you’re working with a blended team – full-time employees and freelancers or contingent workers – you might have a hard time creating a solid schedule or routine for the group. Potentially you could still get the job done, but full-time employees might feel inconvenienced or maybe even a bit resentful. They have to be in one place for a certain amount of time, whereas their freelance counterparts are free to work on their own clock.
Obviously, there are pros and cons to the gig economy. But HR leaders can’t afford to ignore the fact that there is a societal shift toward this kind of workplace, where people have more freedom over their schedules, the kind of work they do, and even the relationship they have with employers. There’s still so much we have to figure out when it comes to the gig economy.
“Online gig work has grown increasingly common in recent years – and yet there’s still limited understanding of how to effectively support these non-traditional workers,” according to Harvard Business Review. “While gig workers can benefit from greater flexibility and autonomy than traditional employees, they also face unique challenges: less job security, fewer resources for career development, and often, a strong sense of alienation and difficulty finding meaning in their work.”
In fact, many reports have suggested that HR leaders in the future will provide access to resources regarding benefits like medical insurance instead of paying for it as they would for a full-time employee. Companies may begin to support co-working spaces to prevent isolation of their contingent or freelance workers. The point is that change is afoot, and HR leaders are paving the way for this new work paradigm.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Jan 19, 2022 | Human Resources
Human Resources leaders are always being asked to look into a crystal ball and predict the future. You probably don’t have any super powers. But your Spidey sense might be telling you that a few trends that are surfacing are likely to stick around through the new year, 2022.
The coronavirus pandemic has changed your work and life. Slowly, things are improving and you’re getting your organization (not to mention yourself) used to the new normal. While you’re settling in (and still having an occasional panic attack, no judgment), you might want to pay special attention to what’s coming next.
Transformation of Human Resources
There’s no doubt that the biggest story of 2021, the Great Resignation, will spill over into 2022. When the pandemic began in 2020, HR leaders suddenly had a seat at the table. You were charged with being the light as people navigated safety protocol and transitioned to remote teams in the darkness. Your stature only continued to grow.
Then, people started quitting jobs in droves. In 2021, you figured out why this was happening. People were tired of low wages, lack of child care and healthcare, and an overall malaise about the kind of work they were doing. Some renamed the era the Great Reshuffling because people were seeking a better fit in their work and more work-life balance. In 2022, you will be determining the best ways to recruit and retain top talent. These strategies won’t be as basic they once were. It will definitely be a case of out with the old and in with the new.
Four-Day Workweek
In the wake of the pandemic, employees learned how to be ultra-productive at home. They used the extra time that remote work afforded (without a commute) to enjoy their families, pursue their hobbies, and get in a little me time. People don’t want to give that up. Employees have the leverage now, and they are asking for more flexibility in their schedules. While that’s already happening, some are talking about taking flexibility even further.
All this prompted discussions about the four-day workweek, a concept that has come up before. The debate will continue on into 2022, and some companies may adapt to this schedule to woo recruits and retain employees during what continues to be an historic labor shortage.
Mental Health and Wellness
The pandemic revealed that mental health and wellness is important to everyone. No one is immune to stress, especially during uncertain times. Businesses are recognizing this fact and providing employees with tools for relieving stress, addressing mental illnesses, and preventing burnout. Some companies are offering more flexibility, but they also provide programs. Maybe the employer offers a yoga class or meditation time. Some provide mental health days as part of paid time off (PTO). Employers are going to get more creative and pay more attention to the mental health of their employees moving forward. This will only become a bigger part of HR leadership’s responsibilities.
Diversity, Equity, and Inclusion (DEI)
At the height of the pandemic, the world watched the Black Lives Matter protests unfold before their eyes. Many demanded that businesses take a stand and show their support for the movement. By putting the spotlight on injustices related to policing, people began recognizing the lack of representation in leadership and management and even at junior levels.
While diversity had been on the minds of HR leaders for some time already, DEI strategies have risen in terms of priority. In 2022, you can expect DEI to remain at the forefront of recruiting and retention strategies.
The Possibility of More Variants
The Omicron variant swept the nation during the holiday season, and it upended plans for a return to the office for many employers. While some traditionalists are holding out for in-office-only workers and some occupations require going to a physical location to get the job done, the reality is that most companies will have to keep some level of remote work as an option because of the various COVID variants that might surface. Until the pandemic turns into an endemic, some companies will be remote only. Others will remain hybrid workplaces.
Coming up with sufficient strategies on how to collaborate, forge bonds, conduct performance measures, and attain desired results is a must. Of course, there are dreaded conversations to be had about masking up and getting vaccinated. Take a holistic approach, make sure the strategy matches your values, and consider the risks associated with whatever decisions you make.
Generational Differences
For the first time in history, four generations (Boomers, Generation X, Millennials, and Gen Z) are in the workforce at the same time. The differences among the generations – from pop culture references to tech savvy – pop up at the water cooler on a daily basis. The reality is that Millennials and Gen Z hold most of the power. The Boomers are retiring and Gen Xers are the smallest group and often get ignored or forgotten.
In any case, many HR experts focused on the generational differences that influence the success of organizations. The pandemic really brought out some of the profound disagreements, like whether to permit working from home in any city you choose or pushing or a return to the office. Gen Z reportedly delegates to their older superiors, while Millennials take a more middle-of-the-road and even practical approach as they gain esteem and rise to power. These generational gaps will continue into 2022, and you might notice more differences. Certainly, HR leaders are going to be working hard to unite all these groups. After all, DEI efforts should include age variations, too.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Nov 22, 2021 | Human Resources
The Americans with Disabilities Act (ADA) applies to employers with 15 or more employees. Despite its broad coverage, there’s a lot of confusion about what the law requires and what its terms entail. A big reason for this confusion is the language of the law itself; the ADA speaks of nebulous concepts like undue hardship and reasonable accommodation. Words like undue and reasonable are by their nature open to some interpretation, which is not exactly a comfort to employers.
Fortunately, employers can feel confident in their application of the law by reviewing and understanding its most important concepts. In this article, we’re going to define and analyze the terms disability, undue hardship, reasonable accommodation, and interactive process. These are the big four terms that serve as the foundation of your responsibilities as an employer under the ADA.
Disability
Let’s start with the term disability. Under the ADA, a person with a disability is someone who:
- Has a physical or mental impairment that substantially limits one or more major life activities;
- Has a record of such an impairment; or
- Is regarded as having such an impairment.
Major life activities include caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working. A major life activity also includes the operation of a major bodily function, such as digestive, circulatory, and reproductive functions.
Although determining whether an impairment meets the definition of disability is an individualized assessment, some conditions “virtually always qualify.” For example, according to the EEOC, deafness substantially limits hearing; HIV substantially limits immune function; and bipolar disorder substantially limits brain function. Other conditions may vary from case to case in whether they substantially limit a major life activity.
It’s important to note that the definition of disability is broad. After the ADA was originally passed, the courts interpreted the definition very narrowly, and Congress responded by amending the ADA in 2008 so that more disabilities are covered. If an employee asks for an accommodation because of a physical or mental condition, it often won’t be hard for them to show that the condition substantially limits a major life activity.
Reasonable Accommodation
Employers often encounter the ADA when an applicant or employee asks for a reasonable accommodation. A reasonable accommodation is a change to the workplace or the job application process so that people with disabilities can perform the essential functions of their job, access employment benefits, or be considered for a job they’re qualified for. The intent of reasonable accommodations is to remove workplace barriers for people with disabilities—barriers that don’t prevent people without disabilities from performing the work or applying for the job. But don’t focus too much on the word reasonable; in the context of disability accommodations, reasonable means feasible or plausible.
Common types of accommodations include modifying work schedules, altering the way job duties are done, re-assigning a non-essential job duty (like asking the receptionist to stack the monthly 100-lb paper delivery in the storage room), granting additional breaks, providing accessible parking, and providing materials in alternative formats (e.g., Braille, large print). Another type of accommodation is a temporary leave of absence. Although a bit counterintuitive (because the employee isn’t working while on leave), the theory with a leave as an accommodation is that the time off will enable to employee to perform the essential functions of their job when they return.
Not every requested accommodation is required, however. For one, employers don’t have to remove an essential job function (e.g., the receptionist can still be expected to answer the phone). Employers also aren’t required to provide items for personal use, like wheelchairs or hearing aids. And, as we turn to next, an accommodation doesn’t have to be provided if it causes an undue hardship.
Undue Hardship
Under the ADA, an employer is not required to provide reasonable accommodations to employees or applicants with disabilities if doing so creates an undue hardship on the organization. The basic definition of undue hardship is an action that creates a significant difficulty or expense. Generally, this is a high standard to meet.
The cost of an accommodation could be an undue hardship on the employer, but so could an accommodation’s duration or disruption. An accommodation that would fundamentally alter the nature or operation of the business would be an undue hardship even if the cost was negligible. But if cost alone is the basis for claiming undue hardship, employers should remember that the standard is a significant expense.
Undue hardship is determined on a case-by-case basis, considering the following factors:
- The nature and net cost of the accommodation, including the availability of tax credits and deductions, as well as outside funding;
- The overall financial resources of the facility providing the accommodation, the number of employees at the facility, and the effect of the accommodation on expenses and resources;
- The employer’s overall financial resources, size, number of employees, and the number, type, and location of its facilities;
- The type of operation of the employer, including the composition, structure, and functions of the workforce, and the geographic separateness and administrative or fiscal relationship of the facility providing the accommodation; and
- The impact of the accommodation on the operation of the facility, including the impact on the ability of other employees to perform their duties and the impact on the facility’s ability to conduct business.
An employer can’t claim undue hardship based on employee or customer fears or prejudices toward the disability. An undue hardship also can’t be based on the possibility that an accommodation could reduce employee morale.
Interactive Process
The interactive process is an ongoing conversation between the employer and employee to explore potential accommodations so that the employee can perform their essential job functions or access the benefits or privileges of their job.
Basically, the interactive process starts with brainstorming. The employee—and in some cases their medical provider—is often the best source for accommodation options. However, the employer should do some research too, for example, by searching for the disability or functional limitation on the Job Accommodation Network website.
Next, the employer chooses an accommodation from all the options. Employers should give consideration to which accommodation the employee prefers, but, at bottom, whatever accommodation they choose must be effective. If it’s not clear initially, the employer can implement an accommodation for a trial period to determine whether it’s effective. If that accommodation doesn’t work, employers should then try a different accommodation. In addition, circumstances may change over time, so the best practice is to keep an open dialogue with the employee to see if further adjustments are needed throughout the employment relationship.
By Megan LeMire
Originally posted on Mineral
by admin | Nov 9, 2021 | Human Resources
Theories abound about why workers are leaving their jobs in record numbers in 2021 and thus creating what pundits are calling the Great Resignation. The U.S. Bureau of Labor Statistics reported that 4.3 million Americans quit their jobs in August. These resignations continue to be higher in food service, retail, and education.
One popular opinion was that people quit unexpectedly and did not look for a new job because of the generous unemployment benefits instituted during the pandemic. The claim was that the job market would return back to normal once those benefits were phased out.
Even though the benefits ended over Labor Day weekend, there has been no significant recovery in employment. Twenty states actually stopped the benefits over the summer and have seen no improvement since then either.
So what’s really behind this trend? According to economists and labor market experts, American workers are soul-searching.The Great Resignation is a philosophical reset of work expectations.
What Workers Really Want
Heather Long, an economics correspondent from the Washington Post, spoke with CBS News recently to discuss her reporting on the Great Resignation.
She said some workers are still concerned about COVID-19, yet that fear may be waning with the increase of vaccinations coupled with decreased infections. Many others simply want to change what they’re doing with their lives.
Lower wage workers are protesting over substandard pay and harsh work conditions, but even mid-level workers who earned higher salaries and better benefits are leaving to open their own businesses or pursue their passions.
Long said that the two biggest priorities for Americans are finding something different or more fulfilling, and working for an employer that values both mental health and work-life balance.
What does this mean for companies?
Offering higher salaries to job candidates may seem like an obvious fix to the problem, but be prepared for the needle to barely move as a result. And it’s clear from the last few months that unemployment benefits weren’t holding workers back either.
“The early evidence certainly suggests that the unemployment benefits were not the main reason holding people back from going and seeking work again,” said Long.
Instead, the Great Resignation has proven to be more about personal values and less about economics.
The Great Reassessment of Work in America
In her interview, Long described what’s happening as a” great reassessment of work in America,” and one of the “biggest shakeups of the labor market since World War II.”
It takes a significant or traumatic event like a pandemic or world war to get people questioning their lives and how work fits into it. So much about the workforce changed in the mid-1900s. Americans were still reeling from The Great Depression only a few years before the war that caused unemployment rates to skyrocket to 25%.
The start of the war actually got things moving again. Factories were established to produce weapons and supplies. More Americans, including women who were previously expected to be stay-at-home wives and mothers, went to work to support the effort. A majority of the workforce became permanently industrialized in that decade.
The American workforce was never the same after World War II, and many experts are pointing to a similar shift today in 2021.
Advice for HR Professionals and Companies
Knowing the root causes of “The Great Resignation” will help HR departments and companies truly solve this labor crisis. Money is important. Everyone needs to pay their bills, and it would be nice to have a few extra dollars to take an extra vacation or buy a more expensive car. But don’t make the mistake of thinking it’s all salary that will bring back workers.
Even if some employees return for a higher salary, it will only keep them engaged in the short-term. When they eventually quit again because of burnout, companies will be back to square one.
Younger workers from the Millennial and Gen-Z generations are leading this trend. Besides the money, they want to feel safe and well-compensated. They want to be treated with decency by employers, who care about their mental health and personal downtime.
by Mckenzie Cassidy
Originally posted on HR Exchange Network
by admin | Sep 7, 2021 | Hot Topics, Human Resources, IRS
Employers, have you reminded your employees to check that they are having the right amount of tax withheld from their paychecks? It’s a good idea for everyone to check their payroll withholding every year, but it is particularly important this year due to the many proposed tax changes.
The law’s changes do not affect every taxpayer the same way. Some workers may need to increase their withholding so they will not face a tax bill —and possible penalties — next April when their 2021 tax return is due. Many other workers, however, benefit from the law’s changes and can take home more pay because the withholding amounts are less.
Help your employees avoid being surprised next spring when they prepare their 2021 returns. Remind them now to check their year-to-date withholding so they can make adjustments, if appropriate, on their paychecks for the rest of this year. It’s easy and convenient using tools provided by the IRS.
Here is a sample message to employees:
The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” This is even more important this year because of recent changes to the tax law for 2021.
The Calculator helps you identify your tax withholding to make sure you have the right amount of tax withheld from your paycheck at work. Use the Calculator to see if you should give your employer a new Form W-4, Employee’s Withholding Allowance Certificate, to adjust your income tax withholding going forward.
To get started, gather your most recent pay stubs and a copy of your last federal tax return (2020 Form 1040). You’ll use the information to estimate your 2021 income and taxes.
The Withholding Calculator does not ask you to provide sensitive personally-identifiable information like your name, Social Security number, address, or bank account numbers. The IRS does not save or record the information you enter on the Calculator.
Ready to start? Make sure Javascript is enabled and go to: Withholding Calculator
by Kathleen Berger
Originally posted on thinkhr.com
by admin | Sep 2, 2021 | Human Resources, Workplace
The employment market has taken the American worker on a roller coaster ride over the last year and a half. Unemployment rates hit record highs in 2020 with the spread of the coronavirus (COVID-19) pandemic. Nearly a year later, the Job Openings and Labor Turnover Survey reports new jobs have increased to “a record 9.3 million, as the economy rapidly recovered from its pandemic depths.” To add another piece to the employment puzzle, nearly 4 million workers quit their jobs in the same month, coining the term “the great resignation.” What caused this dramatic exit? Many employees were spurred to reflect on their priorities during the pandemic and identified more free time as a key factor in their employment future.
As the pandemic spread last year, workers were forced to make arrangements of all types. Those on a temporary hiatus from the office scrambled to adjust to a work-from-home setup. Others who were laid off were pushed to conduct job searches in a market where jobs were few and far between. Additionally, families were pressed to juggle childcare and remote school arrangements with little to no warning. The changes were big and hard, but between all the hustle and bustle workers adjusted to this “new normal.” During that transition, many evaluated their prior work-life balance – more specifically, what was working and what was not. COVID-culture put priorities into perspective for many.
Americans experienced burnout at record levels during this stressful time and many came out of this period with a newfound respect for putting their mental health first. As “return to office” notifications landed in inboxes, many decided they were not willing to return to the office full time. A study conducted by Prudential, a global insurance and financial services firm, concluded that approximately 33% of Americans are disinclined to work for employers that aren’t offering remote work for a portion of their week. This introspection helped many workers see that their priorities needed to be rebalanced. Many wanted to spend less time commuting and working in the office, and more time on personal interests and with loved ones. This “aha” moment, coupled with a resurgence of new jobs in the market, led many to feel a newfound sense of confidence in finding a new opportunity. And that resulted in a dramatic shift in the number of employees choosing to leave their jobs, feeling they would find roles with more flexible work hours and supportive work environments.
There is no doubt we will continue to see fluctuations as our economy responds to this newly resurgent employee market. Employers can be proactive in retaining employees who may be evaluating their current work-life balance. Managers and Human Resource staff can engage with employees early and often. Don’t wait for your employees to raise a concern about workplace flexibility – lead the charge by looking into what your company can do to support this interest.
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