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Archive for May, 2018

INTERN PROGRAM BEST PRACTICES

Is your summer intern program ready to launch?  A review of some important information will help to make your program a success.  First, ensure your program is compliant with the Department of Labor regulations regarding internships.  In the last couple of years, both the federal and state governments have been cracking down on the use of unpaid interns.  The use of ‘free’ interns has been significantly reduced since 2010 when the Department of Labor issued new criteria for employers using unpaid interns:

  • Internship needs to be structured as a training experience, similar to a classroom as opposed to the employer’s actual operations
  • The training given to the interns must benefit the intern, not the employer
  • Employers should see no immediate benefit from the intern’s work
  • The intern cannot displace regular employees; they should work under close supervision
  • In advance, establish that the internship is for a fixed duration of time and that the intern is not necessarily entitled to a job at the conclusion of the internship
  • There should be a clear understanding by both the employer and the intern that the intern is not entitled to wages for the time spent in the internship

If your program includes unpaid interns, consult federal and state wage and hour websites or legal counsel regarding regulatory compliance.  In addition to the regulations, many universities and colleges have specific requirements for the internship program up to and including providing educational credit.  If your intern program does not fit the regulatory criteria for unpaid interns, the same wage and hour guidelines that you follow for your hourly (non-tip) workforce will apply.  Interns are often paid at rates comparable to entry level positions within the department or discipline in which the intern will work.  Local market or industry salary surveys can assist you in setting competitive pay rates for your interns.

In addition to the compliance component of your intern program, below are some best practices to consider integrating into your program:

  • Recruit the right candidates by having a clear and thoughtful internship description
  • Designate a program manager and a manager as well as a mentor for each intern
  • Provide structure, even when they aren’t paid
  • Hold orientation sessions for all involved
  • Provide interns with a handbook and/or website
  • Provide interns with real work that is related to their major, that is challenging, that is recognized by the organization as valuable, and that fills the entire work term
  • Consider offering flex time for the interns
  • Host social events and activities for the interns
  • Encourage team involvement
  • Conduct exit interviews

Today’s world moves fast, and as an employer, you should constantly be monitoring and adjusting your business operations to meet the ever changing wants and needs of your employees.  At WageWatch, we offer accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  For more information on our services, including market compensation data, benefits survey data and salary reports, please call WageWatch at 888-330-9243 or contact us online.

KEY OBJECTIVES OF A COMPENSATION PROGRAM

Compensation can be defined as a reward earned by employees in return for their time, skills, effort, and knowledge.  Compensation includes direct financial compensation, such as wages, bonus, and commissions, indirect financial compensation such as health and welfare, retirement and leave benefits, and non-financial compensation such as job training and development, recognition, and advancement opportunities.  A large percentage of the company budget is compensation, and therefore is a key component of the overall strategic human resource management plan.

A compensation package can include more than salary and bonus.  It can include health and welfare benefits, retirement plan, leave benefits, and various other benefits, and perks.  Companies that offer a mix of salary and incentives have the highest employee morale and productivity.  It is most effective to pay incentives as soon after goals are met as feasible such as monthly or quarterly incentive payments, rather than annual payments.  A good incentive plan should be easily understood by the employees including no more than two to four performance factors.  How you train, develop, and manage your employees will also drive retention and performance.

When developing your compensation program, primary objectives to consider are:

  • To attract the best people for the job
  • Retain high performers and lower turnover
  • Reward performance on specific objectives by compensating desired behaviors
  • Motivate employees to perform their best
  • Improve morale, job satisfaction, and company loyalty
  • Align with overall company strategy, goals and philosophy
  • Achieve internal and external equity
  • Comply with all pay and non-discrimination regulations

While compensation is not the only thing that motivates people, compensation that is too low will demotivate employees.  Studies have found a direct correlation between top performing companies and employees that are satisfied with their pay and benefits package.  Competitive and appropriate pay can positively impact customer service.  Employees receiving fair and competitive compensation packages are generally happier with their jobs and are more motivated to perform at their peak.  Motivated employees can add to the bottom line of the organization and contribute to growth and expansion. Studies show that motivated employees take fewer sick days and have fewer disability claims.

While there are many objectives to a successful compensation program, two key objectives are ensuring internal equity and ensuring external competitiveness.  Salary surveys provide the necessary market data to build competitive pay structures.  Good salary survey data provides you with the information needed to ensure your compensation package is competitive.  Salary surveys are an invaluable tool for the setting right compensation strategy and for following and monitoring the desired pay market.  It is important that you select the right salary and benefits surveys and market data for your employees based on where you are competing for talent in your industry and outside your industry as well as geographic location.

WageWatch offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.  For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

FAMILY MEDICAL LEAVE ACT (FMLA) AND JOINT EMPLOYMENT

Joint employment exists when an employee is employed by two or more employers who both benefit from the employee’s work and are sufficiently related or associated with each other.  The analysis for determining joint employment under the FMLA is the same as under the FLSA.

Joint employment can exist when employers have the arrangement to share the employee’s services or when one employer acts in the interest of the other in relation to the employee.  Joint employment is based largely on the degree of association between the employers and how the employers may jointly control the employee.

Factors key to determine joint employment include:

  1. Do the employers have any overlapping management or share control over operations?
  2. Is supervisory authority over the employee shared and/or do they share clients or customers?

According to the Department of Labor’s fact sheet, employees who are jointly employed by two employers must be counted by both employers in determining employer coverage and employee eligibility under the FMLA, regardless of whether the employee is maintained on one or both of the employers’ payrolls.

When joint employment is determined, one employer will be deemed primary and one will be secondary.  The employee’s worksite which the employee is assigned and reports to is the primary employer.  However, if the employee has physically worked for at least one year at a facility of a secondary employer, the employee’s worksite is that location.

Under the FMLA, the primary employer is responsible for following and administering the FMLA for the employee including 1) providing required notices, 2) providing FMLA leave, 3) maintaining group health insurance benefits during the leave, 4) restoring the employee to the same job or an equivalent job upon return from leave, and 5) keeping all records required by the FMLA with respect to primary employees.

The secondary employer, whether an FMLA-covered employer or not, is prohibited from interfering with a jointly employed employee’s exercise of or attempt to exercise his or her FMLA rights or from firing or discriminating against an employee for opposing a practice that is unlawful under the FMLA.  The secondary employer is responsible in certain circumstances for restoring the employee to the same or an equivalent job upon return from FMLA leave and they must keep basic payroll and identify employee data.

Change can be challenging and demanding.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help ensure your wages and salaries are supporting your company’s business strategy and objectives.  In addition to our PeerMark  Salary Survey for over 100 local lodging markets in the U.S. and Canada, we offer a National Benchmark Salary Survey. With over 9,000 hotels and 200 casinos in our database, WageWatch’s hotel and gaming salary surveys are the most comprehensive surveys available to Human Resource professionals. For more information on our services, including consulting, salary surveys, benefit surveys, and custom compensation reports, please call WageWatch at 888-330-9243 or contact us online.