It’s likely that for the next 9 to 24 months, social distancing will become the standard that we will all need to learn to live by. The New Normal. What might this look like in the workplace?
Depending on what your company does, and how many of those functions work, it will be different. But no one will want to work on top of others near term if they don’t have to. Not until this virus is eradicated. Not until it’s gone!
So, companies are going to have to think differently. What are the opportunities presented by this New Normal? I’ve got a couple of ideas for you.
One is a new take on an old idea, namely “shifting.” This is where, in order to maintain more distance from coworkers by having fewer people in the office, people come and leave in shifts. Even if you’re just going to be open from nine to five, you might have some people working in the office for a half day and at home the other half. Or you might have some people come into the office on Monday, Wednesday and Friday and some come in on Tuesday and Thursday.
And while this is not possible for all staff, or all circumstances, anything that can increase productivity, while thinning out workplace congregation will help. Then social distancing at work may have a better chance of working.
Then there’s another perspective to consider: employees, including some of your best employees, who no longer want to come to work because of fear of COVID-19. This might become a larger issue. They want to work at home as often as they can so that they can control their own social distancing requirement.
So, allow me to propose this concept: a formula for work–at–home compensation that might improve productivity – even after the threat of the virus has gone.
First, let’s take stock. Not all employees are great employees. In fact, if you follow many business theories, as I do:
- 20% of our workforce is GREAT! True performers.
- 60% of our workforce are at least not bad. They get the job done. You wouldn’t want to fire them, but when they say they are leaving, you say, “Ok. Best to you”, and probably replace them with someone better if the market will allow.
- And the remaining 20% are those that you should be looking to replace anyway but are too lazy to do so.
The other insight I want to suggest, is that “full productivity” in my past experience as a business owner, is about 65%. If I can get 65% of true quality output out of an employee in a 40-hour week, that’s an employee that I made money on. Around 20% of my employees could produce north of 80%. Roughly 60% of my employees top 50%. Some 20% of my employees can seldom get to 50% productivity.
In my day, I used to always say that what we do from 9:00 – 5:00 covers our costs, and real profits were made in the time spent beyond that, time spent working beyond a 40-hour week. But your numbers are unique to your business. And how to measure some things are often impossible in a work from home situation.
So, here’s the idea:
While the average salary in America today is $56,000 (and change), for simplicity sake, let’s use $100,000 so that we all can follow along easier. Then you can apply a real salary to a real employee in your own situation.
Evaluate what they do that’s measurable and what they do that’s not. Maybe half their job is not measurable but half is. So, 20 hours a week they perform tasks that have to get done or it just backs up. They know it, and you know it. But, there’s no measurable value to it.
We all have it. But, as a business owner, we pay them to do it. Filing, going to the bathroom, cleaning off their desk, sitting in a staff meeting, reading email memo’s, catching up on company business, walk-around management / business socialization. Stuff! You can’t get around it.
So, working from home, you could thereby change their base to $50,000 (50%) to do all the non-measurable stuff.
Now, for things they do that make you money. Those tasks that, if your people could do more of, you could pay them more – in a win-win way. Get out more essential reports. Serve more customer issues. Output more revenue-generating work – or help their manager output more revenue-generating work.
For the measurable tasks, the stuff that they do for the primary part of their job half the time, pay them more per function when they output more, and less when they output less. You figure out the numbers per the situation.
The outcome: people working from home will focus more on the important work because they earn more, even while they’re still responsible for the non-measurable tasks.
You might need a few less people, because people will focus on performance-based output, and less on business socialization. Some will cry foul because now they earn less. You look at those situations, and conclude which ones you either change the formula, or change the employee. Both are worth the evaluation.
The New Normal is not going away soon. People will insist to stay out of harm’s way, or you will want your people to stay out of harm’s way. You just need to rethink compensation to make it all happen in a profitable manner.
What do you think?
Drug abuse at the workplace is a common problem that not only hurts productivity but also ruins both the personal and professional lives of employees. According to the CBHSQ reports, about 8.7% of drug users in the US are full-time workers, with alcohol being the most abused drug. Ignoring members of staff who struggle with substance addiction only makes the problem worse and puts the company at risk of losses.
The first step to dealing with drug problems in the workplace is acknowledging its presence. Here are a few tips on how human resource professionals can address substance abuse in the workplace and enhance productivity as well as the well-being of employees.
1. Note Signs and Document Instances of Substance Abuse at Work
To ascertain the presence and extent of the problem, observe any signs of substance abuse from the employees. These may include changes in behavior, strained relationships with colleagues, absenteeism, and a drop-in performance and productivity. Documenting your observations and instances of drug abuse will serve as the basis of your intervention. You need to have evidence when you decide to take appropriate action – such as taking disciplinary action or encouraging the affected employee to seek help.
2. Implement Workplace Policies
While this is a standard practice in most workplaces, introducing policies at the workplace to deal with drug abuse can greatly improve your staff’s productivity and reduce turnover. The policies should clearly communicate the intolerance of drug abuse during work hours, what behaviors are unacceptable and the consequences. Drug testing programs will also go a long way in deterring members of staff from abusing drugs at work.
3. Treatment and Support Programs
Although it may cost the business financially, coming up with treatment and support programs is one way of effectively remedying drug problems at work. Classes and forums about drug abuse will serve to initiate a conversation about the problem and also encourage ideas on possible solutions.
Dependency breeds fear of losing the job when one decides to seek help. As such, you need to provide assurance and support for employees to seek treatment, and that the staff won’t lose their jobs when they enroll for rehabilitation. Direct them to professionals for treatment, and help create a supportive environment for those determined to kick their habits.
4. Avoid Enabling
Giving employees opportunities that support drug abuse at work only serves to worsen the problem. Whatever way you decide to handle the matter, avoid the following enabling practices.
- Lending them money
- Assigning the duties of the affected employee to their colleagues
- Covering up for the employee
By doing the above, you are only showing the affected employees that they can get away with their behavior. This may not only fuel the habit but also hurt the company’s bottom line.
5. Maintain Professionalism
Substance abuse and dependency is a highly sensitive and personal matter. Therefore, if it is not handled well, the intervention may do more harm than good to the affected. When confronting employees with drug problems at work, do it in the most civil and professional manner basing your perspective on the effect it has on the career aspect of their lives. It is not recommended to delve into their personal lives, so keep it strictly professional. On the same note, you shouldn’t try to counsel them without a professional.
While you cannot change employees who indulge in substance abuse at work, you can control how you treat them. The above tips should be helpful in dealing with the drug menace in the workplace and help safeguard productivity.
Recent research reveals that technology is being applied intensively in the field of HR. Accordingly, many tasks are automated to ensure efficiency in the running of the day-to-day operations in a firm.
Technology and HR are complementary; one cannot replace the other. Although automation and AI can replace some of the roles of HR managers, some tasks are beyond the computer.
Your critical thinking skills and adaptation to different cases are among the essential skills which a machine can’t emulate.
As an HR manager, are you harnessing the power of technology to streamline and automate processes in your department? Here are five trends that redefine Human Resource Management.
1. Social media
Today, people continuously supply the internet with information on their personality, hanging out their dirty laundry for the world to see. During recruitment, you can quickly run background checks on your potential candidates, find out what views they hold and how they interact with people out there.
Behind a keyboard, people tend to feel invincible, and they let down their guard, letting us in on who they are. Social media serves as your x-ray machine to unmask your candidates.
You can further use social media to nurture relationships with employees, bolster communication within the workplace, and share industry knowledge.
2. Big Data and HR analytics
Data is the new gold, and HR is rapidly transforming into an information-driven function. With technology at your fingertips, you can apply big data to gain a more in-depth insight and make informed decisions within the firm. You can get a lot of information to assess potential employees. With big data, you make better risk management decisions. You can evaluate using employee-related data such as skills, performance ratings, age, safety records, educational background, etc. You can use this information to evaluate and improve practices such as employee acquisition, development, and retention.
3. Artificial Intelligence (AI)
AI plays a critical role in the automation of talent acquisition. And, it eliminates bias and discrimination during screening. Its decisions are purely based on facts and algorithms. In addition to scanning through the thousands of resumes and sorting them, AI helps humanize the recruitment process by helping you spend more time interviewing only the strongest candidates. Machine Learning as a Service redefines every HR functionality when embedded within new HR technologies. Chatbots (automated chat exchanges), a common feature in modern websites, offer quick responses to simple questions, resulting in more efficiency.
4. Robotic Process Automation (RPA)
Whereas AI simulates human intelligence, RPA mimics human actions. The technology seeks to compress time-consuming processes within your department. Recent research revealed that the 22% of the highest performing HR firms implemented RPA. The technology targets 93% of time-repetitive tasks such as adding staff to payroll systems and gathering employee documentation. RPA thus automates employee onboarding, making it efficient and seamless.
5. Cloud technology
Cloud-based applications have made it easy to store and access data through the centralization of data. This makes it easier for you to streamline the workflow and operations within your enterprise. In a recent study, PricewaterhouseCoopers found out that 75% of the companies they investigated had at least one HR process in the cloud, and 40% have core HR systems in the cloud.
Technology serves to complement what you can offer as an HR professional. It enhances efficiency – which translates to more productivity and better results. Stay ahead of your competitors and implement some or all of these HR technologies in the coming year.
Of course, there are many tried-and-true technologies to hang on to. One such technology is Total Compensation Report solutions – whereby you can show current employees (and recruits!) the value of the many benefits your company offers – both the obvious ones, like healthcare and paid time off, as well as benefits that go unnoticed, like free parking, cell phones, laptops, and even industry training.
Not long ago, the news that “so-and-so is working from home today” incited widespread skepticism in the workplace. And if so-and-so really was working from home, it was only because he was stuck there, sick with the flu or waiting for a contractor.
What a difference a generation makes!
Today, about 4 million Americans regularly work from home, representing a 115 percent increase since 2005, according to Fundera. This is one group that is expected to grow – and working from home presents one of the top human resource challenges businesses will face in 2020.
1. “Permanent flexibility” beckons
Managing an employee who works from home one, two, or even three days a week doesn’t seem to be an issue for many employers. Employers that offer work-from-home flexibility have increased by nearly 40 percent in the last five years alone, indicating that employers are trying hard to catch up with demand. Apparently, they’ve registered what the work-from-home crowd has maintained all along: that remote workers are more productive, either because they work longer hours or are less distracted at home.
The challenge focuses more and more on employees’ desire for what is known as “permanent flexibility.” Even the definition is open to various interpretations. Some employees may want the chance to work their entire 40-hour-a-week schedule from home; some may want to work only three long days a week; and others may ask to keep their employers “posted” as their children’s sports commitments change.
The challenge for employers: Just how flexible can (or will) they be?
2. Is BYOD fair?
Some employers are discovering that permanent flexibility comes at another price: the cost of remote technology, to be exact. But should it?
Remote workers can make a solid case for an employer supplying a smartphone and laptop. Even employees who are traditional 9-to-5ers, in the office every day, can make a compelling case that if they’re expected to check emails after work hours, maybe their employer should help foot the bill (for the device itself or the connection).
Employers can make a strong case of their own: Since so many employees “cross beams” from their personal devices to their professional lives, maybe they should pay for their own smartphones, tablets and laptops. It’s called the BYOD culture, short for bring your own device.
The challenge for employers: Deciding which devices are vital to an employee’s job – and therefore worth paying for.
3. Small, large businesses eye outsourcing HR
The “dividing line” was invisible yet obvious for all to see: Go to practically any HR conference and you’d find the “big business” people on one side of the room and the “small business” people on the other.
These days, some commonalities have helped to blur that line, forging alliances that may have been unthinkable even five years ago as both types of businesses pass off HR functions to an outsourced provider.
Whether it’s driven by budget cuts or the need for specialization, HR outsourcing isn’t as simple as it may sound, presenting some potential challenges for small and large businesses such as:
- Culture clashes
- Information leaks
- Compliance difficulties
- Loss (or a reduction) in “the human factor”
The challenge for employers for each of these three: Do the advantages outweigh the disadvantages?
The environment in any workplace should be both positive and productive. Sad to say, but this isn’t always the way it is. There are several factors that affect the workplace environment. It’s up to the Human Resources department to ensure that all members of the workforce feel secure and protected while in the workplace. With office politics, cyber attacks, and other common situations, it can be difficult to keep things going smoothly. HR must be able to offer effective solutions to each of these problems so that the workplace is both productive and peaceful. Here are a few.
Risk of Data Breaches
Any workplace that runs on a data-driven platform is at risk of a data breach. It’s for this reason that your company should take the necessary steps to protect not only the company’s confidential information but that of its employees as well. Two-step authentication or the use of fingerprint technology can be effective in protecting this sensitive information and keep it from falling into the wrong hands.
Positive Work Environment
If HR is serious about eliminating insecurity in the workplace, then it is up to them to make every employee feel as secure and protected as possible. One way to do this is to create a positive work environment where each employee feels valued and respected. The workplace should be a neutral environment where politics and social agendas are checked at the door. It’s important that once the staff is assembled, they each feel as if they are part of the solution, no matter what question is being asked.
Open Door Policy
An open-door policy allows staff members to go to the HR department and discuss possible issues without fear that their job will be terminated or they will be in some kind of trouble. If management wants to know what is going on in the workplace, the only way to find out is to build a level of trust that allows employees to have enough faith in the company to report the issue. Once the issue is reported, it is up to the entire staff, management and associates alike to work together to resolve the problem.
Work as a Team
When your staff works together as a team, supporting one another’s ideas and encouraging each other to do better, the staff as a whole improves and the workplace environment is both cohesive and unified. Working as a team means that both successes and failures are shared equally – and that in order to move forward, every member of the team is needed. HR can further this concept by creating teams that work together and then share their thoughts and ideas with others. While each team works independently according to their department and skills, they also come together as a whole to put the entire project together.
An effective HR department will be able to identify areas that cause insecurity and work with staff members to find a solution that works. Bringing management members and associates together is the best way to work through each issue as it arises. Together, positive solutions can be found that benefit everyone who shares the workplace.
Each generation experiences the world a little bit differently. These experiences shape their consumer and professional preferences. Today’s youth really are different from yesterday’s, even though they may seem similar. Understanding the nuances of different age groups gives recruiters and managers a boost in meeting their needs.
For companies large and small, understanding the values, desires, and quirks of different generations can be both challenging and rewarding. The good news is that you can better reach your audience if you understand the means and messaging that will engage them most effectively. Take Millennials and Generation Z for example. While these two groups may seem similar, variances in their upbringings have resulted in different outlooks and expectations.
Millennials are the demographic cohort following Generation X. Their birth years span from the early 1980s to the mid-1990s. This group was shaped by two main events. First, they entered maturity during the Information Age. They began using information technology and social media around the start of their adolescence. However, while they are proficient in these avenues now, their childhood was relatively free of technological emphasis.
The second contributing factor for Millennials is the economy. Millennials reflect the idealism of having been raised during prosperous economic years. They emphasize the experience of their workplace participation and consumerism more than previous generations. Millennials were largely raised by parents from the high-consumption Baby Boom generation, further reinforcing their economic trust. Due to their idealism, their comfort with confrontation and their relatively limited ability to recognize different points of view, Baby Boomers are also referred to as the “Me Generation.”
Generation Z was born between the mid-1990s and 2015. This group was exposed to information technology, social media, and digital technology from a very young age. They probably don’t understand the “Be Kind, Please Rewind” slogan or the need for a hardback encyclopedia set or the struggles of trying to properly refold a road map. Other nicknames for this group include the iGeneration, referring to the Apple wave, and the Plurals, related to the use of multiple screens at one time.
This group is thought of as the first truly digital native generation. They’re more comfortable than their predecessors at cataloging and cross-referencing a vast amount of information. Generation Z is also much more comfortable learning and engaging independently via technology.
Generation Z was raised during the worst economic recession since the Great Depression. Because of this, they tend to view money more practically than Millennials. Gen Z is less idealistic and more realistic than Millennials. They reject confrontation but do like to find a commonality to resolve issues.
Millennials are motivated by the experience more than Generation Z. On the flipside, Generation Z is motivated more by the actual product. While Millennials typically prefer a travel experience or festival, Generation Z members prefer a unique object or product.
Studies indicate that Generation Z members value saving money and job security more than Millennials do. Generation Zers that are old enough to work are now taking full-time jobs at a higher percentage rate than previous generations. When consuming, Millennials are more drawn to big-name brands, while Generation Z is marked by a desire to express their individuality though their purchases.
One key factor that motivates Generation Z is their ethics. Generation Z is attracted to companies that take a stand on important issues and then follow through – i.e., put their money where their mouth is. Understanding this and the other preferences of each group can help recruiters attract and retain the most desirable employees.
There’s a stark difference between the Federal minimum wage and the widely accepted Living Wage in America. The last time the minimum wage went up was in 2009, when it increased from $6.55/hr. to $7.25/hr. Before that, the minimum wage was $5.15 as late as 2007, and hadn’t seen an increase in the past 10 years. Historically it’s clear that Federal regulation isn’t the driving force behind providing living wages to hourly employees.
The first Living Wage initiatives came through community organizing in the 1990s, when many families with full time employment were still suffering from poverty. The initial argument for employer’s responsibility was that a Living Wage benefits not only the employee, but also the employers and community, as workers would have greater purchasing power.
Does an Employer Have a Legal Obligation to Provide a Living Wage?
Living Wage policies can be set by a number of agencies with a variety of oversight areas. Cities, municipalities and counties might set a Living Wage policy for a specific industry, job or contracted employees. Corporations may also establish a Living Wage for their own employees, or a group of employees within the company. While both Federal and State regulations dictate a minimum wage, cities, and states must take it upon themselves to establish separate Living Wage laws, which take into consideration a number of factors.
In determining your legal obligation regarding Living Wages, it’s a matter of checking with established laws in your region as well as your industry.
What is Considered a Livable Wage?
The Living Wage really depends on where in the country an individual is living. It takes into consideration the expenditures for housing, food, child care costs, transportation and health care. For example, in New York, a living wage for a single adult with no children is $15.09/hr. However, if that adult married with two kids and the only one working to support the family, their Living Wage is $28.90/hr. However in New York, the minimum wage is $10.40/hr., which is almost enough if two adults are working in a household, without any children. In fact, their Living Wage would be $11.11/hr.
The Federal minimum wage of $7.25/hr. doesn’t nearly come close to a Living Wage anywhere in the country, requiring families of four with two kids to work a nearly 80 hour week in order to cover basic necessities. While the minimum wage is set to increase soon, the growth won’t be enough to catch up to the increase cost of living.
How Does a Living Wage Affect Employers?
On the down side…
Naturally, allocating more resources for paying employees impacts profit margins and cash flow. For smaller businesses which may already be at the tipping point, a Living Wage policy may push them out of business, or push greater costs to clients and customers.
A higher wage may also affect the structure of employee benefits and cause stricter workforce management. Where previously a company could afford paid lunches and breaks, now a vigilant eye is cast on the time clock. Some employers have even cut employee hours to accommodate the greater hourly cost.
But, on the upside…
There are a number of benefits that come to employers by providing a living wage as well. Productivity improves as there’s decreased turnover and employees gain longer and longer tenure. Employees earning a higher wage will also be more dedicated and put forth a larger effort while on the clock. In my experience, the more I provide my people while demanding greater performance, the better the outcome has been. Especially when they have a hand in building the performance plans, so that fairness and understanding are built into the process.
Business is mostly about people. If you expect great work from them while they are financially in distress, you’ll be running in circles. It must be a win – win – win. The customer must win. The business must win. The employees must love what they do and how they’re compensated to do it. Then the shareholders can perpetuate their wins and their profitability and equity growth.
So, is an employer responsible for providing a Living Wage? Not as such. An employer is responsible to his/her stakeholders, which include the customers, the employees, and the shareholders. Everybody must win, or perpetuation of long-term success will be difficult to uphold.
Creating a healthy working environment that values employees’ well-being begins with providing useful benefits. One of the most significant benefits that companies can offer is a chance to become financially literate. Beyond good compensation, health insurance, or paid leave, financial literacy programs impact businesses in a unique way. Here, we are going to discuss just what happens when these programs are not in place, and give tips on how HR personnel can implement them.
The Importance of Financial Literacy
A study by Northwestern Mutual found that finances are the main source of stress for nearly half of all Americans, with 40% particularly anxious about retirement savings. This is not surprising, given how the majority of workers in the country are in danger of a financially unstable retirement. In fact, Yahoo Finance reports that a whopping 64% of Americans will retire broke, with 19% having less than $10,000 in their retirement fund.
While factors like unemployment or low salaries are often to blame, part of the problem is the lack of financial literacy, which influences aspects like housing and retirement. Case in point, a survey by Marcus reveals that 6 out of 10 Americans don’t have an established 401(k) with their employer, leaving them financially unstable when they retire. This instability is affecting employees in negative ways at work, causing anxiety that leads to lower levels of productivity.
The Global Benefits Attitudes Survey confirms that there is a strong connection between stress and work performance, not to mention levels of absenteeism in the office. Implementing financial literacy programs can combat the stress caused by mishandling personal funds and savings. It can provide employees with the concepts and tools that can empower them to meet their needs and have enough left for their wants. Plus, The Business Journals point out that an effective financial literacy program is one of the key benefits that promote employee retention and job satisfaction.
Improving Financial Literacy
A good place to start when trying to improve financial literacy is rethinking your company culture in relation to money. Finances can be very personal, and people may be uncomfortable discussing these matters in the workplace. Sending out material about financial literacy every now and then can signal an important shift in this mindset, allowing for a more open approach to the journey to becoming financially literate and healthy.
Aside from providing infographics or reading materials about budgeting, savings, and even self-discipline, you can also incorporate technology. There are a variety of online resources — from YouTube videos to free online short courses — that anyone can access and learn from. You can also encourage employees to use budgeting and finance apps to track their spending and plan their savings.
Of course, unless you have an in-house finance expert, one of the best options for implementing all of the above is to seek external support. You can look for consultants or even hire a financial counselor to improve your financial literacy programs or conduct workshops and seminars. Joe Blattner, President of COMPackage, emphasizes how investing in these measures is a small price to pay compared to the long-term benefits that your company will reap. After all, when employees are free from the distraction of financial stress, they can focus on things that really matter in the workplace.
Today, the ideal total compensation package is as diverse as the current workforce itself. In fact, it has to be in order for companies to attract and retain the absolute best employees.
Your employees may vary greatly in age, location (urban, suburban, rural), gender, and marital status. They also most likely vary in how they work – from home or at the office? From a computer or by phone or some other type of a machine? By travelling on sales calls or going into the office every day? These are all things to take into consideration. Not to mention, employees working for the same companies have very different job descriptions and skill sets. Why give all employees the same exact benefit package, when employees are all so different?
If you are trying to provide a one-for-all solution, you are more than likely leaving some of your employees behind. By taking the demographics of your workforce into consideration, you can remove the guesswork of a one-handed solution and offer employees a worthwhile benefits package with options.
Regardless of whether or not your company is small or large or somewhere in between, tailoring benefits to the specific needs of your employees does wonders for morale. It’s also a smart move if you aren’t able to compensate monetarily as much as your competition. To bridge the salary gap, the savviest of employers know they must make up the difference by offering an attractive total compensation package and one that make sense for the employees in question.
Think about it. Would you offer an on-site daycare facility as a part of your benefits package if a large portion of your workforce is under the age of 25? If most of your employees commute by bus, would including a parking spot be relevant or even necessary? If you have telecommuters working for you maybe they don’t get to enjoy the “complimentary” coffee you keep in steady stream in the office – why not offer your virtual assistant a monthly $10 gift card to a local cafe?
Another example would be if employees are expected to use their own vehicles for company business, a prepaid gas card would help to defray fuel expenses. Do employees work from home using their own equipment and Internet service? If so, you might want to consider providing laptops with Internet access.
The cost of providing employees with potentially expensive perks such as insurance, holiday bonuses, company cars, laptops, cell phone service, tuition reimbursement, or stock options may naturally be a great concern, but it may not be as high as factoring in the cost of recruiting and retraining new hires. Offsetting salaries with a diverse selection of fringe benefits is one of the simplest ways of compensating employees smartly.
In essence, offering a diversified benefits package gives you the luxury of not only attracting talent, but also keeping the top talent in your field happy to be on board. Providing options and showing individualized attention can be priceless. And with the right software, it doesn’t have to be difficult, either. COMPackage offers customers a comprehensive list of over 60 benefit ideas as a natural part of their total compensation software subscription.
Getting the Word Out
After revamping benefits packages to meet the unique and changing needs of your employees, it is imperative to then ensure they are fully aware of their total compensation. It is often astounding for employees to find out how much their employer pays for their total compensation, but sometimes it’s also a shock to the employer, when they start adding it all up.
Many employees are completely unaware of the extent or contents of their work benefits. Are key employees being lured away and accepting other positions offering a higher base salary? They may not be so quick to make a move if they had all the facts about their benefits package.
Employees and potential recruits need to know the full costs associated with having them on staff. Knowing this gives them a better idea of their true compensation and it also allows for essential employee feedback. Encouraging employees to provide feedback regarding which types of compensation are most important to them gives you a definitive edge when it comes to yet another important aspect of any successful business – employee retention.
But how can you give them all of this information without spending a ridiculous amount of time compiling data or an exorbitant amount of money outsourcing the task to a third party?
The answer is using total compensation statement software for creating employee compensation reports and detailed benefits statements. Benefits statements will give your employees a clear and concise picture conveying exactly how much they are really being compensated for their services.
What interesting ways does your company provide benefits? We would love to hear your ideas for diversifying benefits in the comments below.
If you’re like most business owners or HR Managers, you know that communicating with employees about their salary and benefits is always a touchy subject. It’s best to plan accordingly and ensure that the timing is appropriate. But when is a good time to tell employees what their salary, health benefits, sick time, vacation time, and countless other perks are worth? Well, the answer is…it depends.
There are several different occasions and times of the year when your organization may be best suited for giving employees their . Given that a detailed summary of employee benefits is a boost to morale, the Holiday Season or New Year can be a great time to give employees the gift of a complete rewards statement. Although an annual benefits report is sometimes adequate, there are many other times throughout the year when a total compensation statement can help attract, retain, and positively impact your employees.
First impressions are always important, and the way you welcome a new employee to your company is no exception. That’s why hiring can be an excellent time to present a total compensation statement. Letting a new or potential employee know just what you’re prepared to provide, even beyond their regular salary, is a great way to get that new relationship off to a solid start. In addition, employees who are comparing other offers can fully see what your company is offering them, and if the competition doesn’t provide a total compensation statement, your company is going to be viewed as the better choice.
Promotions or Raises
Another good time to discuss benefits is during a promotion or request for a promotion. Oftentimes in such discussions, the focus is solely on the actual wages offered or sought. However, it is wise to also emphasize the other benefits an employee is receiving outside their paycheck, such as paid sick time, free parking, a laptop, cell phone, or several other perks. Even intangibles like flexible scheduling can and should be part of the discussion, since they contribute to the overall employee welfare, contentment, and productivity.
Annual or semi-annual performance reviews are also an excellent time to bring up total compensation. While discussing what the employee has done for the company, you can also showcase the full dimensions of what your company is providing. A comprehensive total compensation statement can boost morale and employee loyalty, and makes an excellent accompaniment to any words of encouragement that you may offer during a review.
Significant Life Events
There are some events in life that have a direct correlation to employee benefits. Occasions such as marriage or divorce, starting a family, illness or approaching retirement can be opportune times to present a total compensation statement. Since an employee may become eligible for additional benefits at these times, taking the initiative to let them know what they qualify for and what they receive is a great way to show that you’re truly looking out for your team.
Remember, the full measure of benefits your employees receive far exceeds their actual wages. This is good news, so share it freely!