By Robert Sheen | July 29, 2021

Canada is making strides to close the gender wage gap with the adoption of its historic Pay Equity Act. Originally passed in December 2018, the Act goes into full effect August 31, 2021.

The Canada Pay Equity Act aims to address systemic gender-based discrimination, foster equal compensation for work of equal value, and proactively maintain pay equity going forward. To achieve these goals, the Act requires federal employers to establish a pay equity plan through a rigorous process, then create a pay equity committee to develop, execute, and maintain said plan.

Below we’ve outlined what employers need to know about designing a pay equity plan, how to create a pay equity committee, who the Act applies to and why organizations in the U.S. should start preparing now.

Impacted organizations

The Canada Pay Equity Act applies to federally regulated organizations in public and private sectors. Certain distinctions apply to organizations based on the total number of employees in their workforce and whether they are unionized:

• Employers with 10 or more employees must establish a pay equity plan
• Employers with 100 or more employees must additionally establish a pay equity committee
• Employers with 10-99 employees must establish a pay equity committee if any of the employees are unionized
• Employers with 10-99 non-unionized employees may voluntarily establish a pay equity committee, but are not required to do so

Establish a pay equity plan

Pay equity plans are intended to identify and remedy pay disparities based on gender. The Act requires employers pay equity plans to include the following:

• Identification of job classes
• Determination of predominantly female and predominantly male job classes
• Determination of value of work
• Calculation of compensation
• Comparison of compensation

Notably, the Act broadly defines “compensation” to include salaries, commissions, bonuses, and paid time off; in-kind payments; employer contributions to retirement, long-term disability, and health insurance plans; and any other “advantage” received directly or indirectly from the employer. 

Create a pay equity committee

The Canada Pay Equity Act requires employers to form representative pay equity committees that will develop, execute, and maintain the pay equity plans. Specifically, “At least two-thirds of the members must represent the employees to whom the pay equity plan relates.” There are other stipulations for establishing membership – for example, women should compose at least 50% of the pay equity committee.

Pay equity committees will be responsible for reviewing and updating pay equity plans at least once every five years.

Built-in accountability

The work doesn’t end with establishing pay equity plans and committees. The Act includes measures for accountability and maintenance to allow for continuous improvement. These measures require employers to:

• Post a draft pay equity plan, with an opportunity for employees to comment (Employee feedback must be taken into consideration.)
• Implement the pay equity plan within three years
• Increase compensation for the predominantly female job classes that are comparatively underpaid
• Maintain pay equity and review the pay equity plan at least once every five years
• Provide certain information/notices to their pay equity committee, employees, and the Pay Equity Commissioner

Pay Equity Act non-compliance

The Act penalizes employers that fail to comply. Specifically, Canada’s Pay Equity Commissioner is responsible for enforcing the Act and may impose penalties between $30,000 to $50,000 for violations.

International efforts foreshadow changes to U.S. legislation

Canada’s recent action to confront systemic gender-based discrimination may herald change in the U.S. and other countries throughout the world.

Equal pay is already rising as a top concern in both American legislative board rooms and employee break rooms alike. Last spring, Congress reviewed policies aimed at resolving pay disparities for protected classes. The heads of U.S. labor and employment organizations, including the chair of the Equal Employment Opportunity Commission (EEOC) and the director of the Office of Federal Contractors Compliance Programs (OFCCP), are also making pay equity a focus.

A diversity, equity, and inclusion (DEI) lens is integral to building a good workplace culture and a reputation as a forward-thinking employer. Simply put, organizations that demonstrate a commitment to DEI aren’t only doing the right thing – they’re also bolstering recruitment efforts and attracting investors.  

One of the Canada Pay Equity Act’s most prominent focuses is to close the gender wage. Through proactive pay equity measures, U.S. employers too can close the gap and promote workplace equality. With new federal regulations on the horizon, U.S. organizations that approach the social good on their own are setting themselves up for greater success. Best practices include undergoing a comprehensive pay equity audit now. To get started, download our white paper Designing a Successful Pay Equity Program.

Organizations looking to disclose pay equity, diversity, and inclusion data information should do so within an ESG reporting framework. Download our white paper, DEI in ESG Reporting to learn about the different standards you can leverage for sharing your progress.

***** ***** ***** ***** ***** 

Source: Trusaic

https://trusaic.com/blog/canada-pay-equity-act-tackles-gender-wage-gap/

By Robert Sheen | August 3, 2021

In an effort to address the pay disparity between men and women, the President of Ireland signed the Gender Pay Gap Information Act 2021 into law on Jul. 13, 2021.

The Gender Pay Gap Information Bill amends the Employment Equality Act 1998 and requires gender pay gap reporting from certain Irish employers. The Act’s goal is to promote pay transparency by requiring certain Irish employers to report and publish information about gender pay gaps within their organizations. It also holds employers accountable by requiring them to explain gaps and what action they’re taking to eliminate or reduce identified wage gaps.

Below we have outlined this latest international effort to advance pay transparency and what it could mean for the future of the U.S.

What are the reporting requirements?

The Act provides that the Minister for Children, Equality, Disability, Integration, and Youth establish regulations as soon as “reasonably practicable” mandating employers to publish a variety of information about the compensation of their employees, including:

• Mean and median hourly compensation for full-time and part-time male and female employees
• Mean and median bonus compensation of male and female employees
• Percentage of all employees who have received a bonus or benefits

Employers will also be required to explain why gender pay gaps exist and the actions they’re taking to rectify them.

It’s important to note the Act draws a distinction between the “gender pay gap” and “equal pay for equal work.” While equal pay for equal work has long been codified into Irish law, the new regulations are specific to gender pay gaps, which are defined as the difference in the average hourly wage of men and women across a workforce. Gender pay gaps don’t necessarily mean discrimination is present – but the new reporting system will illuminate where discrimination does exist and require employers to take action to resolve it.

In addition to reporting requirements, the regulations may determine:

• The class of employer, employee, and pay to which the regulations apply
• How the number of employees and pay is to be calculated
• The form and manner in which information is to be published, along with the frequency of publication (which will not be required more than once per year)

Which organizations are impacted?

Private and public sector employers will be affected with the following requirements:

• Initially, the legislation will only apply to companies with 250+ employees
• Two years after the start of the Act, the act will expand to include organizations with 150+ employees
• Three years after the start of the Act, organizations with 50+ employees will need to comply
• At this time, organizations with less than 50 employees are exempt from the Act’s reporting and disclosure requirements

When does the law take effect?

While the law is expected to be fully enacted at the end of this year, the reporting process is expected to begin in 2022.

How will the law be enforced?

The Workplace Relations Commission will investigate complaints and follow up with employers accordingly to enforce pay equity in Ireland. Additionally, if “reasonable grounds” are present, the Irish Human Rights And Equality Commission may file an order with the Circuit Court or High Court that would require an employer in question to comply.

What does this mean for U.S. employers?

Ireland’s action to amend pay equity legislation is reflective of movements gaining traction around the globe. Canada’s recent passage of its Pay Equity Act is yet another effort aimed at confronting systemic gender-based discrimination. Local efforts to close the gap are also cropping up across the U.S., and federal legislation seems imminent. Already, states like California, Illinois, Rhode Island, and Oregon have passed legislation requiring employers to achieve pay equity through similar transparency efforts. Congress is also actively working to pass legislation to bolster the federal Equal Pay Act.

U.S. employers should get ahead of the curve by implementing a pay equity policy now. A focus on pay equity isn’t the ethos of the future – it’s already here. To get started, download our white paper Designing a Successful Pay Equity Policy for Your Organization.

We’re here to help employers take a proactive approach to achieve pay equity in their organizations. Our PayParity Solution provides auditing and ongoing monitoring to help your organization get ahead and minimize risk.

Organizations looking to disclose pay equity, diversity, and inclusion data information should do so within an ESG reporting framework. Download our white paper, DEI in ESG Reporting to learn about the different standards you can leverage for sharing your progress.

***** ***** ***** ***** ***** 

Source: Trusaic

https://trusaic.com/blog/canada-pay-equity-act-tackles-gender-wage-gap/

ADVISOR BLOG

 

 AS PUBLISHED IN WORKSPAN WEEKLY

 

 JULY 2021

COVID-19 and the ensuing pandemic produced the largest global economic shock and business transformation period of our lifetimes. And while there were some companies that benefitted from the situation, for many others, the virus painfully exposed material weaknesses in their business.

We’ve experienced wholesale changes in how work gets done. For workers who could, there was a  pivot to working from home. (In fact, a recent survey found that the work from home model may become more permanent for many companies. Respondents indicated they expect a third of their total US-based workforces will continue to work remotely.) An interesting lesson here is just how quickly—and seamlessly for many—this pivot was executed; it happened in a fraction of the time most of us would have thought possible.

As we optimistically put the pandemic in our rearview mirror, company management and their boards continue to meet more frequently than ever to discuss and formulate near-term and long-range business plans. However, with all that we’ve learned over the past year-plus about agility and flexibility, we can’t lose sight of some of the fundamental principles that help businesses achieve ongoing performance. More than ever it is incumbent on compensation committees, leadership teams, and HR professionals to ensure that the links between business strategy, talent management, and compensation strategy and design are meaningful.

The forced re-evaluation of both vulnerabilities and new opportunities may have been overdue for some companies and an unexpected benefit for others. But in light of those changes, it’s important to take the next step and examine some core compensation questions.

• Do we have the right executive compensation metrics to drive current, newly evolved business goals and priorities?
• Are the right leaders in place to support our changing business model or strategies?
• Given our changing business, how do we create line of sight for all employees?
• What have we learned from the pandemic about what our employees value?
• Has the virtual workforce opened up new opportunities for talent acquisition?  

Just as business as usual was not acceptable in 2020, compensation as usual should not be acceptable going forward. Customer needs have changed, workforce needs have changed, and people and compensation must be realigned to match those new preferences.

Many companies have re-evaluated the metrics in their incentive programs to ensure alignment with new business goals and strategies. There have been changes to the long-term incentive mix to not only mute the lingering effect of COVID-19, but to also highlight shifting attitudes about the primary objectives and attributes of long-term incentives. And these shifting attitudes aren’t confined to the executive ranks. With growing concern about the availability and needs of the broader talent pool, some high-profile companies have made public announcements regarding permanent work from home models and associated HR and compensation policy changes.

Bottom line: if your business strategy has changed or is evolving, so should your pay program. Reevaluate your compensation design to ensure it reflects the changes to your business model and business strategies. Every company is inherently different, and compensation and people strategies should reflect that. View these ongoing discussions and deliberations between the board and management through a lens that makes clear the right differences in your pay programs, relative to your competitors, can create a tremendous competitive advantage.

***** ***** ***** ***** ***** 

Source: Pearl Meyer

https://www.pearlmeyer.com/blog/revisiting-business-strategy-and-compensation-alignment-in-light-of-covid-19

by Greg Iacurci | PUBLISHED TUE, JUL 27 20211:30 PM EDT, UPDATED TUE, JUL 27 20216:37 PM EDT

Workers saw their hourly pay in June jump at the fastest clip in more than a decade. Yet some of them saw those gains erased by high levels of inflation.

“Real wages” — a measure of income after accounting for the cost of goods and services people buy — fell by almost 2%, on average, last month compared with 2020. Senate Republicans said Wednesday that Americans were getting a pay cut as a result.

“The staples of American life are increasing exponentially,” according to Sen. Tim Scott, R-S.C., who cited examples like higher prices for gas, laundry, airfare, moving costs, hotels, bacon and TVs.

The thrust of the argument — that inflation eats into rising wages — is true, according to economists. Still, there are many nuances, they said.

For one, whether a consumer got a pay cut or not depends on their individual earnings and the things they buy.

“If prices are growing faster than wages, then people are getting inflation-adjusted pay cuts,” according to Michael Strain, director of economic policy studies at the American Enterprise Institute, a right-leaning think tank. “Ultimately, this varies dramatically for every individual.”

Plus, inflation has been volatile and may prove temporary — meaning a reduction in buying power could be short-lived, economists said.

Inflation and wage growth

Average hourly earnings rose 3.6%, to $30.40, in June compared with the same month in 2020. That’s the biggest spike since January 2009, according to data compiled by the Economic Policy Institute.

Meanwhile, the consumer price index, a measure of inflation, jumped 5.4% over the same period — the most since August 2008.

Together, this amounts to a 1.7% loss in buying power, on average, when factoring in seasonal adjustments, according to the Bureau of Labor Statistics. 

“Inflation is a tax,” said William Foster, a vice president at Moody’s Investors Service. “That’s the best way to think about it.”

Inflation most impacts lower earners, who spend more of their average dollar on gas, food and other items that may be rising in price, Foster said. Wealthier individuals, who tend to hold more financial assets like stocks or homes, may be better able to offset the impact of inflation, he added.

But not everyone necessarily got a pay cut as a result. The 5.4% jump in annual inflation is an average of many items — and households aren’t necessarily buying the ones that are getting much costlier.

For example, the metric includes prices for used cars and trucks, which are up about 45% from June 2020 — their largest change on record. That price shock wouldn’t hit someone’s wallet unless they bought a used car.

Similarly, gasoline prices are up 45%. That extra cost would be borne by drivers, though perhaps not city residents who ride public transit.

By comparison, food prices are up just 2.4% over the same time, lower than the broader inflation measure.

Consumer behavior

The consumer price index also doesn’t account for shifts in the behavior of consumers, who may change what they buy to avoid these higher costs.

For example, one might switch to chicken from beef to save money, or delay buying a car until prices fall.

“People respond to price changes by shifting their consumption,” according to Noah Williams, an economics professor at the University of Wisconsin-Madison and an adjunct fellow at the Manhattan Institute.

The personal consumption expenditures price index, another measure of inflation, accounts for these shifts. The Bureau of Economic Analysis hasn’t yet issued the figure for June. But in May, the PCE index was 1.1 percentage points lower than the consumer price index annual reading (3.9% versus 5%) — which indicates consumers bought lower-cost goods.

However, these shifts still impose a cost on consumers, if not an explicit one, according to Casey Mulligan, an economics professor at the University of Chicago.

“They’re trying to minimize the evils, but they’re both evils,” said Mulligan, who served as chief economist of the White House Council of Economic Advisers during the Trump administration.

Distortions

There’s also reason to be wary of overinterpreting inflation and wage figures as the U.S. economy rebounds from the Covid-19 pandemic, according to economists.

That’s due to economic distortions caused by the virus. For example, consumer prices fell early in the pandemic. Comparing prices today to lower prices a year ago will naturally cause inflation readings to seem high.

Similarly, wage data may be skewed by a disproportionate number of layoffs among low-wage workers during the pandemic. In April 2020, for example, average hourly earnings jumped 8% (the highest on record) even amid mass layoffs, since more high earners remained in the workforce.

The same may be happening now, but in reverse. As the economy rebounds and lower-wage workers are rehired, average earnings may appear suppressed.

“It could be a little misleading” to suggest workers are getting a pay cut, according to Susan Houseman, research director at the W.E. Upjohn Institute for Employment Research.

″[The composition of the workforce] is especially changing during downturns and recoveries, so one has to be careful about interpreting these data,” she said.

Temporary or not?

It’s unclear whether higher consumer prices and wages are temporary or longer-lasting, according to economists.

However, at least some of the inflation can be explained by likely short-term dynamics, like supply constraints and a surge in demand as consumers emerge from a pandemic-induced hibernation, they said.

For example, high recent gas prices were caused partly because major oil-producing nations couldn’t reach agreement to raise oil supply in early July, according to AAA. And a shortage of microchips has led to a spike in car prices.

Some expect inflation to persist, though.

“Inflation is not going to be transitory,” Mohammed El-Erian, the chief economic adviser at Allianz SE, told Bloomberg TV on Friday. “I have a whole list of companies that have announced price increases, that have told us they expect further price increases, and that they expect them to stick,” he added.

Wages seem to have increased in recent months amid rising demand for workers, according to the Labor Department. Increased pay may be longer-lasting than high inflation, since businesses often don’t cut pay after raising it, Houseman said.

“We typically don’t give people wage cuts,” she said. “Employers typically don’t do that.

“So in that sense, they’re stickier.”

***** ***** ***** ***** ***** 

Source: MSNBC

https://www.cnbc.com/2021/07/27/wages-are-rising-but-has-inflation-given-workers-a-2percent-pay-cut.html

PUBLISHED July 2021

Member companies will assess the financial security and health of their employees as part of a new effort to address the economic hardships of workers.

Chipotle, Chobani, Even, Prudential Financial, Verizon and other leading companies have joined PayPal and JUST Capital in the Worker Financial Wellness Initiative — a coalition aimed at making workers’ financial security and health a C-suite and investor priority. The initiative elevates worker financial wellbeing to a top priority as business leaders consider solutions to shape a sustainable and inclusive recovery from the COVID-19 pandemic and take action for racial equity.

Research shows that improving workers’ financial wellness benefits not only workers themselves, but also business outcomes including productivity, innovation, customer satisfaction, and employee turnover and engagement. The Worker Financial Wellness Initiative joins those from a growing number of corporate heavyweights (including Apple, Starbucks, EVERFI, LinkedIn, Microsoft, Mastercard and Visa, to name a few) that have turned their attention to improving worker inclusivity and wellbeing — particularly for minorities and women, who have been disproportionately impacted during the pandemic.

PayPal and JUST Capital launched the Worker Financial Wellness Initiative in October 2020, in collaboration with Financial Health Network and Good Jobs Institute. Companies joining the initiative commit to conducting a financial wellness assessment of their workforce to understand their financial vulnerability and identify opportunities to improve their resilience over the long term. Specifically, these companies will complete at least one assessment within a 12-month period, such as an employer-provided benefits assessment, an employee survey, or a living wage assessment.

“If we are going to deliver on the promise of stakeholder capitalism, we need to help more corporate leaders and investors understand that employees are a company’s most valuable asset, and that investing in their well-being will drive long-term financial success,” said JUST Capital CEO Martin Whittaker. “Through the Worker Financial Wellness Initiative, we’ll continue to build the growing body of evidence demonstrating the connection between the financial security of a company’s workforce and their overall business performance, and refute the anachronistic Wall Street narrative that raising wages destroys value.”

PayPal conducted an assessment on the financial wellness of its hourly and entry-level workforce in 2018 and found that many employees were struggling to pay their bills each month despite market pay alignment. The findings propelled the company to institute several changes to improve its employees’ financial well-being, including lowering the cost of healthcare benefits, making every employee a stockholder, raising wages where appropriate, and offering new financial coaching programs. Since implementing these changes, the company has helped raise the minimum PayPal-defined estimated net disposable income for hourly and entry-level workers in the U.S. to at least 18 percent, making significant progress to reaching its target of 20 percent for all employees globally.

“At Chipotle, we believe in investing in the overall wellness of our employees by offering robust benefits that address physical, mental and financial health,” said chairman and CEO Brian Niccol. “Being a founding company in the Worker Financial Wellness Initiative demonstrates our commitment to being an industry leader and ensuring that we’re truly assessing the comprehensive needs of our workforce. Joining forces with other leading organizations and using our collective voices will shed greater visibility on this important matter — impacting not only our individual companies, but potentially the economy as a whole.”

Participants in the initiative will have access to a wealth of resources — including quarterly webinars highlighting company best practices, and guidance on developing and deploying financial wellness assessments. Companies interested in more specialized tools and resources can receive tailored recommendations from initiative partners based on their assessment results, as well as enhanced peer learning workshops for HR teams. The partner organizations will also continue to share case studies, business case analysis and best-practice insights to help educate, inform and catalyze the wider business community.

With the first cohort representing approximately 260,000 US workers across a range of industries, the program presents a unique opportunity to demonstrate what companies can accomplish when they come together with a shared goal of improving the financial health and resilience of workers across the nation.

"It's no secret that it is getting harder to recruit and retain talent at all levels, especially with hourly employees," said Jon Schlossberg, co-founder and executive chairman with on-demand pay platform Even — which PayPal recently enlisted to help it improve the financial health of its own workforce. “During a time where keeping a productive and loyal workforce is crucial, Even provides employees with the tools they need to improve their financial health; and in return employers are rewarded with a more productive, engaged and loyal workforce. We're proud to be part of this initiative and look forward to partnering with this coalition to raise the importance for all employers to play an active role in the financial health of their workforce."

***** ***** ***** ***** ***** 

Source: Sustainable Brands

https://sustainablebrands.com/read/finance-investment/chipotle-chobani-verizon-among-companies-committing-to-financial-health-of-us-workforce

The move has paid off in staffing retention that's "as good or better" than it was before the pandemic.

Published July 26, 2021 | Jane Thier 

Commodity shortages and price increases will mostly cancel out a 3.5% to 4% menu price hike Chipotle Mexican Grill announced in May to pay for higher employee wages, the company's CFO, Jack Hartung, told analysts this week. 

Even with the price of ingredients rising, the company stands by its decision to raise the average wage to $15 by June, which Hartung called "a very bold move" that has paid off in staffing retention that's "as good or better" than it was before the pandemic. 

Chipotle reported $188 million in quarterly net income, compared with $8.2 million the same quarter last year, and a 24.5% operating margin, a twofold year-over-year jump, and its highest quarterly gain since 2015.

"There is so much going on right now with inflation, and the question about whether inflation is transitory or permanent," Hartung said. "And now [with] the Delta variant, there's a lot of unknowns, so we don’t want to declare, with certainty, what we’ll do between now and the end of the year."

Consumers have been "really, really good" with the elevated menu prices, Hartung said. "We’re really seeing no resistance whatsoever." As for pricing decisions going forward, "let's see what happens to inflation and the economy over the next several months, and we'll make the appropriate decisions at the appropriate time."

The brand maintains pricing power and significant upward mobility on its margins, Hartung added. "Now, it's just a matter of how and when we decide to use that pricing power to either protect margins or to invest in our people, like we just did with the wages." 

Digital sales, which account for nearly 50% of Chipotle’s business, grew 10.5% even as dining rooms reopened, and it opened 56 new restaurants, 45 of which include a Chipotlane drive-thru. Locations with Chipotlanes have 20% higher sales than those without, Hartung said. 

"What we had hoped would happen is happening—we’re holding onto these digital transactions while people’s previous habits are returning when they feel comfortable going out and about," he said.

***** ***** ***** ***** ***** 

Source: HR Dive

https://www.hrdive.com/news/chipotle-cfo-higher-wages-preventing-staff-shortages/603892/

Workers are trading jobs, enticed by the guarantee of flexible schedules and continued work from home

By Chip Cutter  and Kathryn Dill | Updated June 26, 2021 12:01 am ET

After almost a year and a half of working from home, many white-collar employees say they are not willing to return to corporate offices full-time. Even whispers of returning have been enough to send some professionals searching for an exit—and plenty of bosses are welcoming them to new jobs with the promise they can work remotely, at least most of the time.

The push for flexibility is adding to the wave of resignations rippling through the U.S., recruiters say, and motivating many employers to re-evaluate their work-from-home policies. Canadian video-software firm Vidyard says it has seen a steep increase in job applications in recent months after emphasizing that roles can be performed mostly at home. And at Allstate Corp. , conversations about every new position now begin with the question: “Why can’t this be done remotely?” says Carrie Blair, the insurance giant’s chief human-resources officer. “It’s a big workforce shift for us.”

Hardly anyone will return to Allstate’s offices full time, Ms. Blair says, after employees expressed in surveys that they didn’t want to and the company found most functions don’t require an office setting. Allstate recently decided 75% of roles can be performed remotely, and another 24% can be done on a hybrid basis, with workers splitting time between home and the office. The 1% who will go back to a pre-Covid-style office setting include some top executives and certain people in field offices with customer-facing roles.

“Remote is going to be the new signing bonus,” he says. “Instead of dangling, ‘We’ll give you $10,000 if you sign for this job,’ it’ll be: ‘Instead of having to commute 35 minutes every day, go to work, and get in your car and drive 35 minutes home, you can work from your home office all the time.’ ”

Matt Croak, a 27-year-old software engineer in New York City, wasn’t actively looking for a new job earlier this year, but believed his consulting-firm employer could begin reopening its offices this summer in a hybrid capacity. So, when a recruiter reached out in April about an engineering role at an e-commerce company that would allow him to continue working fully from home, he pursued it. The job comes with higher pay and the chance to learn new skills, but it will also allow him to spend mornings reading in his living room in Brooklyn, instead of hunched over a subway seat while commuting 45 minutes into Manhattan. Mr. Croak says that, over the past 16 months, he has had more personal time for meditation and other self care—activities he wasn’t ready to give up in order to rush back and forth to and from an office again.

“I do really want to work from home permanently,” he says.

Minaya, a 26-year-old tech-company employee, calls remote work ‘the arrangement that I want to keep.’PHOTO: JOVELLE TAMAYO FOR THE WALL STREET JOURNAL

Marc Cenedella, founder and chief executive of Ladders, a job-search site for roles that pay north of $100,000 a year, says greater flexibility is shaping up as a perk that companies can wield to poach talented people.

“Remote is going to be the new signing bonus,” he says. “Instead of dangling, ‘We’ll give you $10,000 if you sign for this job,’ it’ll be: ‘Instead of having to commute 35 minutes every day, go to work, and get in your car and drive 35 minutes home, you can work from your home office all the time.’ ”

Matt Croak, a 27-year-old software engineer in New York City, wasn’t actively looking for a new job earlier this year, but believed his consulting-firm employer could begin reopening its offices this summer in a hybrid capacity. So, when a recruiter reached out in April about an engineering role at an e-commerce company that would allow him to continue working fully from home, he pursued it. The job comes with higher pay and the chance to learn new skills, but it will also allow him to spend mornings reading in his living room in Brooklyn, instead of hunched over a subway seat while commuting 45 minutes into Manhattan. Mr. Croak says that, over the past 16 months, he has had more personal time for meditation and other self care—activities he wasn’t ready to give up in order to rush back and forth to and from an office again.

“I do really want to work from home permanently,” he says.

More American workers are quitting their jobs than at any time in at least 20 years, according to the Labor Department. One factor behind the trend, executives say, is that more employers are outlining their return-to-office plans in detail, giving employees a clearer sense of what to expect next. Apple Inc. recently said it wants most office workers to show up Mondays, Tuesdays and Thursdays, with the option to work remotely on Wednesdays and Fridays. Other companies, such as Pontiac, Mich.-based United Wholesale Mortgage, are recalling thousands of employees to a corporate campus in the coming weeks, with a goal of getting close to 100% of workers back and resuming a traditional five-day workweek, according to the company’s chief executive, Mat Ishbia.

“You see tons of bold statements. Companies saying, ‘No remote work.’ Some companies are saying, ‘We’re getting rid of all of our offices,’ ” says Bret Taylor, president and chief operating officer of Salesforce.com Inc. In many cases, it is the employees who are primarily calling the shots. “There’s like a free market of the future of work and employees are choosing which path that they want to go on.”

In a recent survey of 2,000 workers commissioned by Prudential Financial Inc., a quarter of respondents said they planned to look for a new job post-pandemic, with many of those planning to leave citing work-life balance issues as among their top concerns. Half of respondents reported feeling that the pandemic had given them more control in deciding the direction of their careers.

Jeff Simonds, a 38-year-old who lives in Burlington, Vt., began a new remote job this past week as a search-engine optimization manager at Updater Inc., a New York-based tech company that makes software designed to help with logistical challenges when people relocate. Before the pandemic, Mr. Simonds worked in an office and says he never would have considered doing otherwise.

Over the past year, he says he appreciated being able to throw in a load of laundry during the workday, or to begin his day from home earlier so that he could squeeze in a round of golf in the late afternoon, with his work completed. The new role came with a raise, and he says he considers the ability to work remotely as a kind of bonus. “It’s the freedom to kind of define my own workday,” he says.

His prior company, which provides marketing services and tools for auto dealers, had tentatively discussed returning to the office in September, Mr. Simonds says.

“Knowing that there was somewhat of a looming deadline of life back in the office” helped to inform the career move, Mr. Simonds says, adding that he was primarily drawn to his new employer’s growth prospects and the chance to help shape a new team. “I didn’t hate the office life, but I’m very accustomed to this now.”

Though a number of companies are still calling workers back to offices, some bosses realize policies must shift to remain competitive. At First Advantage Corp. , an Atlanta technology company that employs more than 3,500 people and had its initial public offering this week, CEO Scott Staples says the company plans to reopen its offices in phases over the coming months. Some employees, particularly those in technology roles, will likely be able to spend more time working remotely.

“I think CEOs of the future just have to have a lot more flexibility on policies and procedures. It’s the only way you’re going to grow and survive,” Mr. Staples says. “There are certain roles where if a person doesn’t want to come back in for a variety of reasons, we can accommodate that, and I think that will make us an attractive employer.”

Technology giant Adobe Inc. said this week that its roughly 23,000 employees could spend 50% of their time at home once U.S. offices begin reopening in July, but also said that remote-work arrangements would expand for those who desire them.

“Our default work arrangement going forward for employees is to be flexible,” says Gloria Chen, the company’s head of human resources. Adobe won’t mandate which days employees go into offices or track how much time they spend in them. “Flexibility means flexibility,” she says.

Last fall, as Amy Culver’s employer began discussing plans to eventually return to the office, she found herself filled with dread. Without her typical 40-to-60-minute commute, Ms. Culver, a marketing copywriter, had more time to spend with her daughters, 11 and 16. She was able to continue horseback riding, her postwork outlet, even as the winter sun set earlier. Previously, she and her husband, who works irregular hours, might go several days each week without seeing each other. Working from home outside Richmond, Va., eliminated that issue, she says, and made it easier to spend time together as a family.

“I felt like I had a handle on everything for the first time in a long time,” says Ms. Culver, who is 43.

Though her manager told her she could continue to work from home even after the office in Richmond reopened, Ms. Culver worried about scrutiny and whether she’d be treated as a second-class citizen in the company, losing out on opportunities if she stayed in her basement workspace while co-workers returned. She began applying for jobs at companies that allow most employees to work remotely, and quickly had an offer that appealed to her. In November she started at When I Work, an employee-scheduling software company.

Today Ms. Culver typically works from 10 a.m. to 6 p.m., but says she has the autonomy to take her daughter to driver’s ed class in the middle of the day or return to a project later in the evening when she feels creative.

“Now that I work for a remote-first company, we’re all in the same boat. I’m not concerned that’s going to hold me back at all,” she said. “I’m on a team, but I still get to work from home, and I feel like that’s the best of both worlds.”

Other employees have chosen companies with defined remote-work cultures. Pallavi Daliparthi, a 36-year-old who lives outside Austin, Texas, took a job in May with GitLab Inc., a fully remote company that sells tools for software developers. Ms. Daliparthi, now a senior manager on GitLab’s sales team, had previously worked remotely at a large enterprise-technology company, and knew that in a hybrid environment, decisions could be made over coffee in the office that she may have missed while at home. “Whereas here, everybody really is remote,” Ms. Daliparthi says. “You know there’s nothing happening in the background, in-person somewhere.”

A lot of people say they hope to stay remote for years to come. Brandon Minaya, a 26-year-old tech-company employee, moved to a neighborhood in Seattle late last year that has few links to public transportation, anticipating that he would no longer be commuting to an office in future roles. In March, he took a fully remote client-facing position with Intellum, an Atlanta-based company that makes education software.

Instead of taking an hourlong bus ride each way to a WeWork location, as he did in a previous role, Mr. Minaya says he often starts his mornings walking to a nearby beach, where he looks for seals and birds. Most mornings, he takes the time to brew himself a pour-over coffee, something he once reserved for weekends.

While searching for a new job, he prized companies that seemed committed to remote work. “I wanted to find somewhere where this isn’t something that’s going to be pulled back in six months,” he says. “Like: ‘Just kidding!’ ”

He has the flexibility to meet with colleagues in person, or to travel to the company’s Atlanta headquarters, he says. But “the fact that it’s not expected of me is kind of the arrangement that I want to keep.”

***** ***** ***** ***** *****

Source: The Wall Street Journal 

https://www.wsj.com/articles/remote-work-is-the-new-signing-bonus-11624680029

PUBLISHED FRI, JUN 25 20218:30 AM EDT by Greg Iacurci

KEY POINTS

• Workers are increasingly getting enrolled into their company 401(k) plans automatically, often into target-date funds that shift the stock-bond mix over time.
• About 60% of 401(k) plans used auto-enrollment in 2019, up from 42% a decade earlier, according to the Plan Sponsor Council of America.

Americans saving in a 401(k) plan may have money stashed in a robo-advisor — and they might not even know it.

Robo-advice is basically professional money management guided by an algorithm (a robot, so to speak), largely allowing investors to be hands-off.

Companies offering a retirement benefit are increasingly enrolling employees into 401(k) plans automatically. Most are diverted to some type of robo-advisor.

About 60% of 401(k) plans used auto-enrollment in 2019, up from 42% a decade earlier, according to the Plan Sponsor Council of America. Doing so helps overcome inertia that may prevent a person from saving.

“You get the momentum going,” Keith Gredys, chairman and CEO of The Kidder Company in Clive, Iowa, who works with 401(k) plans and investors, said of automatic enrollment. ”[Employees] go in and tend not to come out.”

TDFs and managed accounts

About 66% of 401(k) plans guide those automatic savings into target-date funds, according to the Council, a trade group representing businesses that offer retirement plans.

TDFs are perhaps the simplest version of a robo-advisor — they automatically toggle savings from aggressive (lots of stocks) to conservative (lots of cash and bonds) according to an investor’s planned age of retirement.

About 5% of 401(k) plans default funds into a “managed account.” In such accounts, algorithms choose one’s asset allocation based on factors beyond just age, such as income, savings rate, employer contributions and amount of non-401(k) savings.

Employers must notify workers that they are being automatically enrolled in a 401(k). But those who don’t pay close attention may not know part of their paycheck is getting invested a robo-advisor.

Robo-advisors have come into vogue over the past 15 years or so, leveraging investor demand for ease and lower-cost investing.  

About 80% of 401(k) plans offer target-date funds, for example, up from 64% a decade ago, according to the Plan Sponsor Council of America.

“Most people are terrible investors,” said Philip Chao, a certified financial planner and chief investment officer at Experiential Wealth, based in Cabin John, Maryland.

“They’re diversified [and] professionally managed,” Chao said of target-date funds and managed accounts. “So you don’t have to go find an advisor; it’s done for you.

“And they’re easy to understand, so they become very popular.”

There’s also a legal rationale for employers to automatically guide funds into such investments — the Pension Protection Act of 2006 offered additional protections to do so.

However, Chao doesn’t consider target-date funds to technically be advisors since they only tailor asset allocation (the mix of stocks and bonds) based on the year in which someone plans to retire.

Managed accounts, on the other hand, are more tailored to the specific individual since their asset allocations are based on other data points.

But managed accounts are also typically more expensive — and that may pose a problem for investors who are automatically enrolled, according to Chao.

Managed accounts often rely on investors to input specific data points (like amount of non-401[k] savings) to guide their investment mix. But those inputs are unlikely to occur without investor engagement, as is more apt to occur after automatic enrollment — potentially negating the additional cost.

“You shouldn’t blindly let your money get defaulted,” Chao said. “You should know the cost.

“And you should make sure employer has done their job to controlling expenses.”

***** ***** ***** ***** ***** 

Source: CNBC

https://www.cnbc.com/2021/06/25/401k-investors-may-be-using-a-robo-advisor-and-not-even-know-it.html

By Kelly Anderson, June 23, 2021

Misinformation about COVID-19 vaccines has proliferated across the Internet in recent months, with false rumors about dangerous side effects, surveillance and other conspiracies.

The rise in false information about vaccines has had a marked impact on vaccination rates, with 1 in 4 Americans saying they are not planning to get vaccinated.

Vaccine conspiracies can cause disturbances in the workplace, especially if employees are sharing misinformation or condemning employees who have chosen to get vaccinated.

"It's distracting to others, and it has a real impact to some on their actions around the vaccines," said Elisabeth Joyce, vice president of advisory in the HR practice of Gartner, a research firm based in Stamford, Conn., that provides human resource consulting.

Joyce said disputes over vaccines or company policies requiring employees to get vaccinated should be handled like other workplace disagreements, rather than treating them as a health or safety issue. 

"I would be treating it as a manager like I would treat any other kind of disruption in the workplace in terms of having a conversation around what is appropriate or is not appropriate," Joyce said.

Below, experts give tips on how to handle these conversations, as well as a script to use with vaccine-hesitant workers.

Handling Vocal Vaccine Objections

If an employee is claiming that vaccines contain microchips or cause cancer, or is spreading other false information at work, the best recourse for a manager is often the least confrontational one. 

Joyce said managers should avoid discussing their own beliefs about vaccines and instead should emphasize that sharing spurious claims with co-workers is disruptive to the professional environment. "This is not work-related, and it's causing people to lose focus on their work," she said. "That's not a way that we want to be engaging in the workplace, regardless of topic." 

Robert Neiman, a lawyer who specializes in employment litigation at Much Shelist P.C. in Chicago, suggests that managers approach misinformation-spreading employees with patience and respect, rather than condescension.

"It's an issue of persuasion rather than changing their mind," Neiman said, "because chances are, you're not going to change someone's mind on things like that." 

Legal Ramifications

False speech is not protected in private workplaces, which means employees who share misleading information about vaccines cannot argue that their claims are protected under the First Amendment, according to Neiman.

"Like all employer-employee relations issues, the key is to treat all of your employees the same way," Neiman said. Lawmakers in several states have proposed legislation that would make vaccination status a protected class under anti-discrimination laws, but those efforts have mostly failed.

The Equal Employment Opportunity Commission (EEOC) has issued guidance that allows employers to mandate vaccinations. Employees who have valid medical or religious objections, however, must be exempted from vaccine requirements due to statutes in the Americans with Disabilities Act (ADA) and Title VII of the Civil Rights Act of 1964.

Lawsuits against workplace vaccine requirements have been filed in several states. A detention center officer in New Mexico sued his employer over its vaccine mandate, which he says made co-workers hostile toward unvaccinated employees and led to his being demoted unfairly. Similar lawsuits have been filed by public employees in North Carolina and California, and the cases will be the first to test the legality of vaccine mandates.

The lawsuits use the Food and Drug Administration's (FDA's) decision to grant emergency use authorization (EUA) for the Pfizer, Moderna and Johnson & Johnson vaccines as the basis of their legal claims.

FDA policy states that any person may refuse to take medical products approved under an EUA, and that they are entitled to know the consequences of refusal.

The EUA lawsuits are unlikely to form the basis of credible complaints against employers that mandate vaccines, said Neiman, who noted that EEOC guidance supersedes other regulatory agencies in the workplace.

Tips for Managers  

Establishing trust and providing credible sources of information may help stop the spread of vaccine misinformation. Experts suggest that managers use the following tips when talking with employees who have bought into vaccine misinformation:

• Ask the employee if she's willing to talk to other employees of the same rank or seniority who have been vaccinated, rather than speaking one-on-one with a manager. Vaccinated employees can share their experiences of receiving the vaccine and how vaccinations have benefited their own lives. While dispelling conspiracy theories can be difficult, hearing about vaccinations from a trusted, respected peer can help the employee become more open-minded about the COVID-19 vaccine.
• Create video interviews of vaccinated employees of varying seniority and positions to distribute to unvaccinated employees. In the interviews, ask employees about their motivations behind receiving the vaccine and how it has affected their lives. Neiman suggests e-mailing these videos to unvaccinated employees on a regular basis so they have the opportunity to hear testimonials at their convenience without forcing confrontation.
• Ask if the employee would like to speak with a licensed medical professional to learn more about the vaccine.  
• Avoid using a rude or condescending tone, which could alienate a vaccine-skeptical employee who is wary of taking advice or considering different viewpoints.

Jaime Klein, CEO of New York City-based HR consultancy Inspire Human Resources, said offering accommodations for vaccine appointments can also help sway hesitant employees. Klein suggests giving paid time off for employees to receive the vaccine during work hours, as well as giving paid sick days to those who experience vaccine side effects. 

"It's crucial to lead in a human-centric way and to validate the opinions and feelings both of team members who received the vaccine and of those who do not want to receive a vaccine," Klein said.

Sample Script

An employee named Sarah has come to her manager, Kim, with a YouTube video that shows someone who claims to be a doctor discouraging people from receiving vaccines. The "doctor" makes several false claims, arguing that the vaccines alter the DNA of recipients, making them more likely to become infected by the virus. Sarah has e-mailed the same video to several co-workers and was overheard telling employees not to attend their vaccine appointments. Here's a sample template Kim could use to respond to Sarah's concerns:

"I understand you're concerned about the COVID-19 vaccine. We respect your opinion and will respect your decision about getting vaccinated regardless of which option you choose. We expect that you will also afford the same respect to your co-workers who may make different decisions. Fomenting fear among your peers is unhelpful to creating a productive work environment and can make it harder for others to make informed decisions about the vaccines.

"Whether or not you get vaccinated is your choice, but we want to make sure you and all of our other employees have the resources to make the best-informed decision. Our company website includes links to information from the U.S. Centers for Disease Control and Prevention, the World Health Organization, and state and local guidance on the vaccines and the coronavirus. The consensus of scientific research is that vaccines are completely safe and overwhelmingly effective at stopping infection and the worst effects of contracting COVID-19.

"More than half of the adults in the U.S. and millions of people across the world have received the vaccines. If you'd like, we can set up a time for you to meet one-on-one with another employee who has been vaccinated to hear about their experience. Your peers who are vaccinated are enjoying the vaccine's benefits: They can now gather indoors with large groups of people, travel with greater ease, and no longer have to wear masks outside and in many indoor spaces. You'll also have much more flexibility at work because you won't have to be tested regularly to work from the office, may not have to quarantine if a member of your household tests positive, and can more freely access common spaces like the lunchroom and conference room.

"If you'd like to hear a medical opinion, we can help set up a time for you to speak with a health care provider or another licensed medical professional. There is rampant disinformation on the Internet from people who often lack qualifications, but speaking with a reputable doctor can ensure you have the most scientifically accurate information about vaccines.

"If you're concerned about the logistics of receiving the vaccine, our workplace has ample accommodations to give you flexibility.

"I understand your worries about the vaccines, and I'm here to enable you to make the best decision for your health. I am happy to have more conversations about vaccines in the future if it would be helpful, but going forward we will not tolerate employees who spread lies about medical issues."

***** ***** ***** ***** ***** 

Source: Society for Human Resource Management (SHRM) 

https://www.shrm.org/ResourcesAndTools/hr-topics/people-managers/Pages/COVID-vaccine-misinformation-.aspx?_ga=2.36007136.1398801990.1624464229-752200093.1615220521

Published June 23, 2021 by Emilie Shumway

Dive Brief:

• Employers have instituted more flexible and frequent leave allowances in response to the pandemic, according to Mercer’s Survey on Absence and Disability Management. Among the notable trends, 1 in 10 survey respondents now include Juneteenth as a paid company holiday; 61% of respondents offer paid parental leave for birth parents, up from 40% in 2018, while 60% offered paid leave to non-birth parents, up from 41% in 2018. Twenty-percent of respondents offer unlimited paid time off to at least some employees — mainly exempt workers — compared to 14% in 2018.
• Respondents also reported that compliance with state and local leave requirements has gotten more challenging during the pandemic; 46% said they hired a third party to monitor and help comply with those rules and 23% established a leave policy expected to exceed state and local laws to reduce the administrative burden. More than half of respondents supported the concept of a voluntary federal minimum standard for paid leave.
• Mercer engaged more than 400 employers for its survey. It will release the complete results in July. 

Dive Insight:

The pandemic has caused a rapid evolution in many workplace policies, from remote and hybrid work to mental health assistance to free training and education benefits. Paid leave is no exception, the Mercer survey results show. Employers have seen that companies can continue to function well — even thrive — when employees have wide latitude to balance their personal lives and better manage their health and wellness. 

More employers offering paid time off for Juneteenth and for parental care (including adoption leave) also demonstrates employers' increased interest in creating an inclusive workplace. Many companies were ahead of the federal government in making Juneteenth a paid day off, noting the importance of the day to their Black employees and generally as a time of reflection and solidarity for their entire employee base. The past year has also brought attention to workers' struggles with child care, with women bearing the brunt of the burden. 

It's likely employers' growing embrace of policies like unlimited paid leave is further prompted by a need to attract and retain talent in a worker's market. Close to 1 in 3 employees who responded to a recent survey by Robert Half said they had experienced a "shift in perspective due to the pandemic," and employees have repeatedly asserted their preference for continued hybrid or remote work in surveys over the past year. Unlimited paid time off is one more policy employers can use to show workers they provide a flexible and competitive work environment.

***** ***** ***** ***** ***** 

Source: HR Dive

https://www.hrdive.com/news/paid-leave-policies-are-changing-mercer-survey-says/602235/