by Mike Yoder | Business Resource, Business Strategy, Culture, Employee Benefits, HR News, HR Tips, Human Resources, Servant HR
Your employees might be a little jumpy with Halloween just around the corner. However, recent research shows it’s not the spooky season that’s frightening your workers—it’s their jobs.
A new Cornerstone report found that over half of American workers aren’t sure they have the skills to withstand a future layoff. Some economists are already forecasting a downturn after a recent spike in layoffs, and data shows employees are getting nervous. Cornerstone reports that 60% of baby boomers feel insecure with their current skill sets, especially as compared to the increasingly competitive talent market. And with the rise of new technology, workers are afraid they could lose their jobs to either more qualified employees or in some cases—to machines.
So what is HR’s role amidst this worried workforce? How can you more effectively train your employees so they feel empowered to do their work and confident in their skills? To start, you’ll have to learn what your employees know and don’t know—and tailor your training and development programs to fit the needs of your organization.
The Society for Human Resource Management (SHRM) offers several key ideas for better training and development programs that actually increase employee confidence.
1. Survey your employees
The best way to get real information about organizational performance is to simply ask your employees. They know their exact pain-points and will be motivated to participate in training that specifically addresses their needs. Surveys also boost morale, as they demonstrate employer care and interest in employee development. SHRM notes the most common feedback from employee surveys is that employees want clearer work expectations and training by experts.
2. Align training with goals
Management should define their operating goals before designing targeted programs. Specific goals might be better performance, productivity or customer satisfaction. Perhaps you need better onboarding and new-hire training so that employees can provide greater customer service. For compliance training, partner with regulatory agencies like the Occupational Safety and Health Administration (health and safety), the Department of Labor (wage and hour compliance) and the Department of Justice (harassment and discrimination training). You may consider contracting out design work in order to create more comprehensive instructional material. If you’re managing a multi-generational workforce, your goal may be to improve communication within the organization. Offer training for supervisors to improve their coaching skills and help develop a healthier work culture.
3. Ingrain it into your culture
Speaking of healthier work culture, consider implementing a “life-long learner” philosophy that focuses on employee satisfaction. When making promotion decisions, give preference to employees who have completed training and performed well. A promotion should be one of the rewards for their efforts, as it answers the employee question, “What’s in it for me?” Celebrate achievements by letting everyone in your organization know when someone completes training and what that means for their growth opportunities. Advertise your programs and participants in internal communications, display their pictures and stories, and talk about it at every employee gathering. Encourage employees to be trainers or subject matter experts so that employees are engaged and empowered to take ownership of their skills.
4. Keep innovating
Sometimes the problem lies, not in lack of programs or training content, but in the inability to communicate that content in an appropriate learning format. As we all get more comfortable with technology, there’s a growing need to adopt the latest ideas. Today there are apps, games, and easy-to-use video tools that can be streamed to mobile devices for individual training on the employee’s own time. It’s important to research the latest trends online, network with other training professionals, and revise programs to take advantage of the latest best practices. Just because it’s what you’ve always done, doesn’t mean it’s what you should do forever. Tailor your training to how your employees best learn and don’t be afraid to adapt to new technology.
5. Measure results
Make sure you’re keeping track of how things are going. This lets you know if the training offerings you provide are worth everyone’s while. The best measures are the simplest ones; incorporate them into your program so everyone knows what’s expected. Look for behaviors and measure them on the job to determine if employees actually learned how to perform appropriately. If trainings do not provide the intended result, consider redesigning programs, as well as offering feedback. To ensure there are no surprises for employees, communicate the importance of feedback and implement a specific structure. Make feedback a regular part of life at work so employees know how they are doing in real-time.
These are just a few ideas for revamping training and development at your company. You want your employees to feel happy, confident and motivated in their work—not insecure and nervous they might get fired at any second! Demonstrate your belief in your workers by investing in their development. Providing your employees with growth opportunities sets them at ease and allows for greater productivity in the long run.
Want more ideas for training? Need HR coaching and counseling for specific issues at your company? That’s where we come in. The health of your business is our priority, so contact Servant HR and allow us to serve you today.
by Mike Yoder | Business Resource, Culture, Employee Benefits, HR News, HR Tips, Human Resources
September is National Suicide Prevention Month—an opportunity for employers to learn how they can help workers at all levels of anxiety and depression. Mental health disorders are now among the most burdensome health concerns in the United States and their presence in the workplace is undeniable.
According to the Center for Disease Control and Prevention (CDC) nearly 1 in 5 US adults aged 18 or older (18.3% or 44.7 million people) reported a mental illness in 2016. In addition, 71% of adults reported at least one symptom of stress, such as a headache or feeling overwhelmed or anxious.
With roughly 63% of the population engaged in the workforce, overlap is inevitable—making mental health a necessary issue for employers to address. It’s in the best interest of employers to take a proactive role in dealing with this challenge head on.
What Employers Can Do
Reduce Stigma
Talking about mental health in the workplace can feel scary, mostly for fear of offending, being politically incorrect, or sounding uneducated or inexperienced with mental health. However, the less mental health is talked about, the more stigma is created.
A white paper by The Prudential Insurance Company of America states that the workplace can impact stigma positively simply through open communication and transparency. Employers can encourage education on mental health and asking for help as needed—specifically conveying such asking as a positive thing. A study by Mercer noted that employers must understand mental health, access to care must be available, and proactive measures should be encouraged in seeking treatment and improving productivity.
Include EAP’s in benefit plans
Study after study shows that early intervention is the key component to success. Early intervention can be more likely when employers include in-network Employee Assistance Program (EAP) providers in their health plan. This ensures that care can be continued once EAP sessions are exhausted. Only 29% of the U.S. population diagnosed with depression seeks treatment, and even less follow through. The ability to continue therapy is absolutely vital to treatment and recovery.
Assessment and management
Often times managers assume a performance problem without considering an emerging mental health issue. Proper training is absolutely necessary from an employer standpoint. Managers should learn to consider an employee’s history— especially if behavior is new, unexpected, or emotion-driven. Because depression often manifests itself in declined performance, managers should inquire about well-being before jumping to conclusions. Managers must also be equipped with proper resources, such as an EAP, health and wellness partner, or HR representative.
Considering potential mental health issues does not mean an employer cannot still properly discipline or terminate employees that are not performing essential job functions, failing to attend work hours, or breaching company rules. This consideration simply allows employers to act in the best interest of both employee and company.
Maintaining consistent contact is important as well, so to help employees through depression and reduce any fear of returning to work. A study on the psychology of “return to work” found that manager and co-worker interactions are essential in making employees feel safe enough to share problems, get help, and comfortably return to work. Remember that asking “Is everything okay?” is a small, but effective first step.
Work also creates a sense of purpose that can eventually serve to improve mental health. Keeping communication lines open and offering return to work programs can help support employees and provide a productive, successful transition.
An Effective Strategy for Company Health
While individual well-being is a good enough reason alone to address mental health, the benefits can also affect your company’s bottom line. World Health Organization states: “Workplaces that promote mental health and support people with mental disorders are more likely to reduce absenteeism, increase productivity and benefit from associated economic gains.”
Addressing mental health is big, high-level, policy-making work. But addressing mental health can also be small things—card-writing, checking in, simply asking, “How are you doing?” Prioritizing communication, access to care, and proper management training are all part of an integrated health and well-being strategy.
Have questions? Interested in more specific mental health resources? We at Servant HR love helping business owners create productive and positive work environments. Contact us today.
by Mike Yoder | Business Resource, Culture, HR News, Human Resources, Legal Compliance
Here we go again! As of August 12th, the Department of Labor’s (DOL) proposed overtime rule affecting the base wage of overtime exemptions was sent to the White House for final review.
This high-priority Trump Labor Department rule takes a more business-friendly approach than attempted in the Obama administration—expecting to make about 1 million workers newly eligible for time-and-a-half overtime pay when working more than 40 hours in a week.
Raising the Threshold
According to The Society for Human Resource Management (SHRM) the rule would raise the salary threshold for the Fair Labor Standards Act’s (FLSA’s) white-collar exemptions to $35,308 ($679 a week) per year from $23,660 ($455 a week). The barred Obama-era rule would have raised the threshold to about $47,500, and worker advocates as well as some Democratic lawmakers are still pushing for that level. However, business groups generally support the Trump administration’s proposed increase.
SHRM states that to be exempt from overtime, employees must be paid a salary of at least the threshold amount and also meet certain “duties” tests. These tests define specific regulations for several exemptions, the most common being those related to executive, administrative and professional work. If they are paid less or do not meet the duties test requirements, employees must be paid 1 1/2 times their regular hourly rate for hours worked in excess of 40 in a workweek.
A Rushed Rule
The DOL sent the final draft to the White House Office of Information and Regulatory Affairs only five months after proposing the rule, resulting in more than 116,000 public comments. Urgency from department officials stems from the desire for protection from anticipated legal battles with worker advocates.
According to a report by Bloomberg Law, the administration wants the rule in place before the end of President Donald Trump’s first term in office. Bloomberg also reported new regulations are in the works for calculating overtime pay rates and limiting wage and hour liability for franchisers and businesses that use staffing labor.
What It Means
If finalized, the overtime rule would cover more workers than was previously the case. More than a million currently exempt workers would be reclassified as non-exempt, and pay would increase for those above the new threshold. Unlike prior drafts, the proposal does not call for automatic adjustments to the salary threshold, does not create different salary levels based on the region of the country, and does not make any changes to the duties tests.
The salary threshold was last increased in 2004. The DOL is using the same economic methodology used to reach that standard, which the department officials say should protect the proposal from litigation.
(To get a more comprehensive timeline, click here to read our March 2019 blog and October 2016 blog, or check out SHRM’s Overtime Rule History timeline here.)
While You Wait
Time will tell—likely sooner than later. But in the meantime, employers should begin auditing their exempt workforces to determine how many might qualify under the criteria of executive, administrative and professional exemptions. Before re-classification, it is possible that employees currently or potentially exempt due to salary may not pass the primary duties tests.
Now is also a good time to weigh your options as an employer. If exempt employees currently make salaries significantly lower than the threshold, reclassifying employees to non-exempt and overtime eligible might make sense.
But, employers can also avoid salary and overtime pay altogether. Hours for newly non-exempt employees may be reduced, part-time or contract workers may be hired to fill gaps, tasks may be re-assigned to other exempt employees, and perks may be dismissed since the exempt/non-exempt distinction is often used to provide benefits.
If making such significant changes, employers must then weigh the cost of morale. Overall, it makes more sense to reclassify to non-exempt if an employee does not work much beyond forty hours. But for employees who often work over 40, it may be less difficult and less expensive to increase salary to the new threshold, rather than paying consistent overtime.
In general, the pending proposal offers valuable time for fixing current errors and planning for the future. We at Servant HR would love to help plan for yours. If you’re our client, we’re already on it. But if you have questions about the specifics of the proposal, or are wondering how a PEO can help manage these crucial details, please don’t hesitate. Contact us today!
by Mike Yoder | Business Resource, Culture, Employee Benefits, HR News, HR Tips, Human Resources
On the heels of 4th of July, and with off-cycle election season quickly approaching, you may be finding yourself in a few more political conversations than usual. Talk at weekend BBQ’s, family gatherings—even checkout line chatter seem to land on politics.
But what about the workplace? Hot topics are still buzzing, but how much can employees engage in political conversations at work? If there is a line, what happens if it’s crossed?
Can you actually fire—or be fired—for talking politics at work?
Many assume First Amendment protection, but free speech isn’t so simple. According to writer Stacey Lastoe at The Muse, “There’s free speech, and then there’s free speech in the workplace.”
Private vs. Public
Private and public employers operate by different sets of rules. Private employers can generally set regulations about what is or isn’t appropriate for workplace discussions. There is not an inalienable First Amendment right in a private employer’s workplace.
Examples of private-sector employment areas include financial services, law firms, estate agents, newspapers and hospitality. Examples of public-sector employment areas include government employment, some healthcare, teaching, emergency services, armed forces and civil services.
Because politics are so polarizing, private organizations can easily and justly prohibit political discussions while at work. However, federal law also protects employees’ right to discuss labor issues with each other (i.e. wages and working conditions).
So the line is hazy—as guidelines pertain to specific topics of political conversation. For example, employees are protected if discussing support for a candidate who promotes higher wages. But as soon as the conversation switches to a candidate’s stance on foreign policy, those same protections technically don’t apply.
Variables
So what actually happens if an employee discusses politics in the office?
Of course the political answer is, it depends. There are a few variables that determine potential consequences:
- Your state. You might work in a state where the law protects employees from workplace discrimination based on political affiliation or extends other protections that would tend to protect you from being fired for talking about politics. Click here to read the different laws for each state regulating politics in the workplace.
- NLRA protection. Most employers are covered by the National Labor Relations Act, which makes it unlawful to fire employees for participating in “concerted activity.” (Read our article about concerted activity on social media here.) If employees are discussing how they might improve the terms and conditions of their employment, or the previously mentioned labor issues, NLRA protection is granted.
- The situation. Bosses have the right to call out employees chatting on the clock. Politics aside, if an employee is not working when they’re supposed to be working, it may be cause for disciplinary action. If discussions are “creating a disruption,” this can also lead to discipline.
Takeaways for Employers
Be clear and aware. Make sure your organization has everything spelled out—what is expected of employee talk and behavior at work, how employees should use the internet on the job, social media policies, etc.
Be aware of your state’s laws and work with HR on communication of what is and isn’t allowed. (Need help with HR? That’s our thing! Contact us today and see how our PEO model can lighten your administrative load.)
Takeaways for Employees
Know the rules. Be careful of how you’re using work time and remember that regardless of your political opinion, you’re at risk if you’re posting it during work hours. Remember that even out of the office, you represent your company and behaving professionally is good practice.
Being an employee doesn’t require you abandon political causes you care about either! Simply set your social media accounts to private and make sure not to link yourself to your company—make it clear you’re representing only yourself.
Both employers and employees have the responsibility of pursuing shared goals for the good of their company. The good news is, that responsibility can easily be carried out apart from politics. Our best advice? Your #1 issue at work, should be work.
by Mike Yoder | Business Resource, General, HR News, Human Resources, Legal Compliance
In December 2016, compliance with the Obama administration and the Department of Labor’s proposed wage minimum required extreme reclassification. (Read our 2016 blog on this proposal here.) The proposal would have raised minimum exemption wage to a jarring $47,476 from the previous $23,660. Push back from businesses combined with a late term lawsuit kept the proposal pending until Trump took office.
This Just In
As of last week, the Department of Labor has proposed an increase straight down the middle of the historic minimum and attempted Obama-era hike. The current proposed salary-level threshold for white-collar exemptions now sits at $35,308. According to the Society of Human Resource Management (SHRM), the proposal, if finalized, could result in the transition of more than one million currently exempt workers to non exempt, as well as many pay increases for employees below the new threshold.
Nonexempt employees (those who do not meet the salary base and do not match FLSA work requirements) must receive a “time and one half” pay rate for any hours worked over forty in a workweek. The FLSA “duties test” defines specific regulations for executive, administrative and professional work that make an employee exempt, in addition to the salary threshold.
Tricky Business
While compliance is mandatory if the proposal is finalized, the specific way of reaching compliance is left to employer decisions.
If exempt employees currently make salaries significantly lower than the threshold, reclassifying employees to non-exempt and overtime eligible might make sense.
But, employers can also avoid salary and overtime pay altogether. Hours for newly non-exempt employees may be reduced, part-time or contract workers may be hired to fill gaps, tasks may be re-assigned to other exempt employees, and perks may be dismissed since the exempt/non-exempt distinction is often used to provide benefits.
Employers must then weigh the cost of morale.
Overall, it makes more sense to reclassify to nonexempt if an employee does not work much beyond forty hours. But for employees who often work over 40, it may be less difficult and less expensive to increase salary to the new threshold, rather than paying consistent overtime.
What Now?
There is still a long way to go before reclassification. Proposals are always small first steps in a lengthy process before finalization.
However, employers do not have to wait for the final rule to review FLSA duty requirements. Jeffrey Ruzal, an attorney with Epstein Becker Green, recommends employers begin auditing their exempt workforces to determine how many might qualify under the criteria of executive, administrative and professional exemptions. Before raging re-classification, it is possible that employees currently or potentially exempt due to salary, may not pass the primary duties tests.
In general, this pending proposal offers valuable time for fixing current errors and planning for the future. We at Servant HR would love to help plan for yours. If you’re our client, we’re already on it. But if you have questions about the specifics of the proposal, or are wondering how a PEO can help manage these crucial details, please don’t hesitate. Contact us today!
by Mike Yoder | Business Resource, General, HR News, Human Resources, Legal Compliance
A new National Labor Relations Board (NLRB) decision has drawn a blurrier line between employers and independent contractors. Returning to pre-Obama-era policies, the NLRB is now more likely to acknowledge independent contractor relationships.
A wide array of federal, state and local laws govern the relationship between employers and their employees. But often these laws do not apply to those classified as independent contractors.
The distinction between the two is critical, but hazy, as each law has a slightly different way of discerning independent contractors from employees. Courts and agencies add complication as well through differing interpretations of those laws, along with frequently changing standards according to appointed political party.
Back and Forth
Last year the California Supreme Court broadened the definition of “employee” for wage order claims. Obama-era guidance restricted an employer’s ability to classify workers as independent contractors. Now under President Trump, federal agencies are swinging back the other way.
According to Ryan Funk of Faegre Baker Daniels, the new NLRB decision returns to how it viewed independent contractors before Obama-era restrictions. Funk writes, “The main difference between the new test and the Obama-era one is how the agency looks at whether workers have ‘entrepreneurial opportunity.’”
Action vs. Opportunity
The Obama-era decision gave weight only to actual entrepreneurial activity (and even then, only when looking at just one part of a multi-factor test.) This narrow view makes the chance of meeting criteria significantly slim.
The new NLRB decision re-establishes the value of entrepreneurial activity. The principle of “opportunity for entrepreneurial activity” is used to evaluate the overall effect of each of the ten factors in a common-law analysis of an independent contractor relationship.
The decision is employer friendly, as it frees up employers to classify independent contractors and drop the host of governing laws.
Boiling It Down
While employers are freed up through the new decision, the line is still blurry. Those looking for a clear distinction between employee and independent contractor are in for a letdown. According to Funk, “Any legal test with ten factors is bound to boil down to a case-by-case approach.”
Even tests and their factors can vary case-by-case. Over the last thirty years the IRS has used an old revenue ruling twenty-point test, the tax court has used a seven-point test, and the IRS has espoused a three-pronged “control test.” Confusion is certainly understandable.
Therefore, independent contractor relationships should be re-analyzed in light of the new NLRB approach. Based on potential IRS involvement, it’s also important to note that the NLRB is just one voice in a crowd of agencies, so employers should stay up to date as independent contractor tests continue to evolve.
