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Archive for October, 2018

BENEFITS & PERKS–ATTRACTING & RETAINING TOP TALENT

Perks

In today’s tight job market, many employers realize that they need to take a closer look at their benefits package in an effort to attract and retain employees.  How often have you found a qualified candidate that you hope to hire only to learn that they decide to go with another position?  Most likely, the candidate has found another job in which the benefits offered by the competition were more attractive.

When reviewing the development of benefits and perks for your company, it is valuable to understand the differences.  Benefits are a form of non-wage compensation that supplement salary (e.g., health insurance). Perks are a form of non-wage compensation (e.g., work from home Fridays), but unlike benefits, are more loosely defined and vary greatly.

Glassdoor indicates that 57% of job seekers list benefits and perks among the chief determinants when evaluating jobs.  Benefits and perks impact recruiting efforts as they help to get prospective talent interested in a company and through the door.

The primary benefits and perks that prospective job seekers value most when considering a new position include (listed in order of importance):

  • Better health, dental, and vision insurance
  • More flexible hours
  • More vacation time
  • Work from home options
  • Retirement benefits; pension plan, 401K

Although there are some new, innovative benefits and perks being offered such as free-snacks or nap pods—the top benefits/perks valued by many employees are those that improve their work/life balance.

Some innovative, non-traditional benefits/perks offered by large companies and tech-based companies include:

  • Unlimited vacation
  • Student loan assistance
  • Free gym membership
  • Free day care services
  • Free fitness or yoga classes offered on-site
  • Catered breakfast and/or lunch
  • Company-wide retreats
  • Paid volunteer days
  • Paid parental leave for moms and dads (16+ weeks)
  • Dedicated game rooms
  • Nap rooms

Although the benefits and perks offered can help get prospective talent through the door of your organization, once hired, it is the culture, values, and career opportunities that are the leading factors in employee satisfaction.  Employee interests vary depending on company size, industry and demographics.  To find the benefits package that best fits your business, it’s important to survey employees about what they value most.

WageWatch offers accurate, up-to-date HR metrics, 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 a custom-built 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.

 

Posted in Benefits & Compensation on October 31st, 2018 · Comments Off on BENEFITS & PERKS–ATTRACTING & RETAINING TOP TALENT

THE IMPORTANCE OF EMOTIONAL INTELLIGENCE IN HUMAN RESOURCES

Emotional Intelligence

Emotional Intelligence is about an individual’s ability to recognize and understand emotions and how it impacts their behavior and attitudes.  Individuals who have a high degree of emotional intelligence are more in tune with their own emotions as well as the emotions of others.

In the workplace, emotional intelligence involves being sensitive to and perceptive of other people’s emotions and having the ability to intuitively improve performance based on this knowledge.  Individuals with high emotional intelligence are observed and measured as having higher productivity, they are better at conflict resolution, and they build strong bonds with co-workers as they can more easily understand the desires and needs of other people.

In the modern workplace, it is important to have open communication, teamwork, and a mutual respect among employees and their supervisors.  Emotional intelligence bears an important impact on the self-development of the manager and their leadership qualities.  Its impact is visible in building positive relations and gaining the emotional commitment of employees.  At a higher level, emotional intelligence helps to strengthen organizational culture, sharpen its resilience, and stretches its flexibility.  Managers who possess emotional intelligence approach supervisory responsibilities from a different perspective than an authoritarian manager. They understand the importance of communicating effectively with staff members, and of treating each employee with respect.

Human Resources can help create a more emotionally intelligent workforce by hiring employees who exhibit a high emotional intelligence, by evaluating employees using emotional intelligence criteria, by integrating emotional intelligence into performance management systems, and by offer training to improve emotional competence.  An emotionally intelligent organization in which employees share strong connections and are able to work more effectively with each other should result in greater productivity.

Managers and business owners can’t let themselves lose sight of the fact that their employees are people, with real lives and emotions that impact how they think, feel, and act.  Managers with emotional intelligence understand that their staff members are people first and workers second.  Incorporating emotional intelligence into your personal and organizational management philosophy may be the best way to retain key employees and help with overall organizational success.

WageWatch offers accurate, up-to-date HR metrics, 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 a custom-built 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.

HUMAN RESOURCES ROLE IN MERGERS AND ACQUISITIONS

Mergers and acquisitions are extremely challenging and even chaotic events.  Therefore, it is critical that everyone involved has a clear understanding of their role in the process.  Mergers and acquisitions have become the norm in the business world and are often necessary for survival.  Almost every major company in the US today has or will experience a major acquisition.  There is a subtle yet distinct difference between a merger and an acquisition.  A merger is when two separate companies merge into one new entity.  An acquisition is when one company buys the assets of another company.  A merger or acquisition can be desired due to many different strategic reasons including positioning in the market, acquiring another company’s areas of strength or expertise, acquiring capital, diversification and short-term growth.  There are several phases or steps in the acquisition process and human resources will typically be involved in at least 2 to 3 of these phases, including the due diligence and investigation process and the post-merger integration process.

The human resource role in the due diligence and investigation process is to perform a thorough review of all human resource contracts, benefit plans, plan documents, systems, personnel, employment records, all forms of compensation, policies and procedures, especially related to human resource regulations that relate to all human resource disciplines including compensation, benefits, recruiting, employee relations, training and development, and payroll and HRIS.  Human Resources will help to determine the organizational structure and staffing models for the new organization.  Some other important items that fall under the Human Resources umbrella are wage and hour or other compliance claims, employment litigations, collective bargaining agreements, any FMLA, OSHA, Workers Compensation, EEOC and OFCCP compliance issues.

Transition issues need to be discovered and addressed, for example, pay levels between the two organizations may be very different and a cost analysis may be needed to determine the cost of bringing pay levels more in line between the two merging entities.  Other transition issues that often need to be addressed are transitioning pay increase and performance review cycles, differences between benefit levels in health care and retirement plans.  Most items will need to be addressed immediately, and some items can be completed during the first or second year following the merger or acquisition.  For example, if the acquisition occurs in the first quarter and your merit increases are done in January, you may be able to wait until the following January for this transition.  Conversely, it will be highly desirable to transition the acquired entity employees immediately to your health and welfare plans rather than take on the administrative burden and ownership risk of additional plans.

Human Resources is also responsible for layoffs, stay bonuses, culture differences, and synergies and will play a key role in the orientation and welcoming of the new employees.  These are just a few key items on the Human Resources Acquisition Checklist.  And each item has its own list of key points and issues that must be addressed.  While most of the transition work will happen prior to the closing date, the job of transitioning employees into your policies, pay models, practices, procedures, and culture does not end at transition date and typically continues for 2 to 3 years following the transition date and requires continued review at the management level.

Change can be challenging and demanding.  With over 5,000 properties in our lodging compensation database, 150 casinos, and 125 hospitals and clinics, we regularly see properties being acquired, divested, and rebranded. Consolidations are occurring at a rapid pace in the healthcare industry as well with hospitals buying physician groups and primary care practices. There are numerous human resources concerns to address every time a property changes hands. WageWatch consultants can guide you through the process of integrating two or more compensation models, rebalancing grades and ranges, examining internal equities between plan documents, developing a market-based approach to resolving inconsistencies, and helping you along the way with all your transition needs.  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.

WHAT’S NEXT…JOINT EMPLOYMENT REDEFINED?

Joint EmploymentHave you noticed the flip-flop on Joint Employer Standards from the National Labor Relations Board (NLRB)?  Currently, the standards are in flux.  In 2015, the definition of a joint employer was modified and expanded based on the Browning-Ferris Industries case.  This case changed over 30 years of precedent that had required “direct” and “immediate” control over an employee’s working conditions to “indirect” and “potential” control as the new definition of joint employment.

Under the Browning-Ferris standard, even if two entities never exercised joint control over the essential terms and conditions of employment, and any joint control was not direct and immediate, there could still be joint employers based on: (1) the existence of reserved joint control, (2) indirect control, or (3) control that was limited and routine.  Browning-Ferris was considered controversial and criticized by many employers and business groups.

In December 2017, in an attempt to rein in what was perceived as a broad and vague standard, the NLRB re-established the pre-Browning-Ferris standard in the Hy-Brand Industrial Contractors case which returned the former joint employer test requiring “direct” and “immediate” control.

To the dismay of many in the business community, in February 2018, due to an alleged conflict of interest, the NLRB vacated the Hy-Brand case, leaving Browning-Ferris as the law of the land once again.  Prior to Browning-Ferris, the NLRB relied on decades of legal precedent to set the joint employment standard.

In May 2018, the NLRB announced its intention to clarify the joint employer standard by issuing a new rule to reinstate the pre-Browning-Ferris joint employer standard.  On September 14, 2018, the NLRB published a Notice of Proposed Rulemaking (NPRM) in the Federal Register regarding its joint-employment standard (allowing 60 days for public comments).  The proposed rule reflects a return to the previously longstanding standard that an employer may be found to be a joint-employer when the following condition exists:

    • A joint-employer of another employer’s employees exists only if it possesses AND exercises substantial, direct and immediate control over the essential terms and conditions of employment and has done so in a manner that is not limited and routine. 

 The 60-day period for public comments continues through November 13.  After the NLRB reviews the public comments and replies, it will issue a final rule regarding the joint employer standard.  If issued without substantial changes, this rule will provide employers with a more clear and consistent standard and reduce the likelihood of an employer inadvertently becoming a joint employer.

WageWatch offers accurate, up-to-date HR metrics, 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.

EMPLOYERS MUST START USING NEW “FEDERAL CONSUMER RIGHTS ACT” NOTICE

Effective September 21, 2018, the Fair Credit Reporting Act (FCRA) requires that employers that use a third-party consumer reporting agency, to conduct background checks on employee applicants, use the updated Summary of Your Rights Under the Fair Credit Reporting Act.  The new Summary of Rights Act was issued on September 12, 2018; employers were given very little time to comply with the act.

The FCRA requires that employers follow certain procedures before obtaining a background check by a third party reporting agency.  The employer must follow certain procedures if it decides not to hire the applicant (or take an adverse action against an employee) based upon a third party background check.  One of the procedures is to provide employees with their “Summary of Consumer Rights” under the FCRA along with the name, address, and phone number of the third-party agency that provided the information.  Failure to provide the correct notification can expose employers to legal risk, including class action litigation.

Employers will have to provide the new “Summary of Consumer Rights” form in any pre-adverse action notification that comes as a result of the background check.  They must also provide this notification before obtaining a background check if the report includes information stemming from personal interviews conducted by a consumer reporting agency.

The new rule requires that employers use the new “Summary of Consumer Rights.” This new model “Summary of Consumer Rights” requires that the rejected applicant be advised of their right to request that the third-party reporting agency provide the rejected applicant with a free “national security freeze.”  This freeze would restrict prospective lenders from obtaining the consumer’s credit report, thereby thwarting identify thieves.  The new model form can be found here.

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.

Guest Editor:  Pautsch, Spognardi & Baiocchi Legal Group LLP
www.psb-attorneys.com