Hot Topics in Total Rewards

March 2, 2020

Earlier this week, the NLRB made official a less stringent standard on joint employer liability, returning to a decades old approach which had been applied until the NLRB’s decision in 2015 which made the standard less predictable and more difficult for employers. Returning to the 2015 standard offers greater clarity, stability, and precision as to the circumstances whereby a business will be held jointly and severally liable for violations of federal labor law by another business. The new standard goes away from the more-relaxed, abstract test which brought more contractors, franchisers, and employers into labor disputes and negotiations as “joint employers,” and requires actual control to be exerted over the employment relationship to warrant a finding of joint employment. 

The Prior State of the Law

In 2015, the NLRB ruled that a business was a joint employer if its control over the essential terms and conditions of another business’ employees was merely indirect, limited and routine, or contractually reserved but never exercised. This broad standard made it more likely that businesses would be liable for actions of franchisees and subcontracted workers. It also made it more incumbent on businesses to bargain collectively with employees of its contractors or franchisees. The standard proved to be untenable and, most troubling, unpredictable.​

The New Standard

President Trump’s NLRB quickly signaled its intention to reverse course and return to the standard which had been in place for decades before 2015. The rule now requires that a business exercise substantial direct and immediate control over one or more essential terms and conditions of employment of another business’ employees in order for it to be deemed a joint employer. Essential terms and conditions of employment include wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. The new rule defines the key phrase “substantial direct and immediate control” as control which “has a regular or continuous consequential effect on an essential term or condition of employment of another employer’s employees.” Such control is not “substantial” if it is only exercised on a sporadic, isolated, or de minimis basis.

The implementation of the new rule will reduce litigation and litigation costs because it makes it less likely that a business will be found jointly and severally liable for another business’ unfair labor practices or will be required to bargain collectively with the employees of another employer. The implementation will also clarify for unions with whom they can collectively bargain.

In conclusion, this new rule scraps the 2015 standard which permitted joint employer status based solely on indirect influence or a contractual reservation of a right to control that had never been exercised, which burdened businesses and lacked predictability in application. The rule was formally published in the Federal Register on February 26. It will go into effect April 27, 2020.

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Source: JD Supra, LLC

https://www.jdsupra.com/legalnews/good-news-for-employers-nlrb-finalizes-25423/

PUBLISHED

MAR 2, 2020 9:28AM EST

(RTTNews) - American denim company Levi Strauss & Co. has introduced paid family leave to provide their employees the facility to care for ill family members without worrying about the stability of their job or finances.

The leave is available immediately to all U.S. corporate and benefits-eligible retail or hourly employees who work at least 30 hours a week.

According to a study conducted by Pew Research Center, more than one in ten U.S. adults are caring for an aging parent or immediate family member at the same time they are raising their own children.

Another report from the National Business Group on Health reveals that about 44 percent of employees experience financial strain while they take the additional responsibility of tending to a sick family member. 88 percent of adult caregivers also have a negative impact on their own health.

The eight-week paid time off per year will enable employees to care for an immediate family member with a serious health condition. This is applicable for an ill spouse, domestic partner, parent or stepparent, child or stepchild up to 18 years of age. It will help the employee bring a balance between the growing demands from their work and personal lives.

The new employee benefit is an extension to the company's paid parental leave program announced in 2016, which provides eight weeks of paid time off to welcome or care for a new child.

Last week, Levi Strauss also hired Tracy Layney as Senior Vice President and Chief Human Resources Officer, effective April 20, 2020.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Source: Nasdaq, Inc.

https://www.nasdaq.com/articles/levi-strauss-introduces-paid-family-leave-to-care-for-ill-family-members-2020-03-02

Bani Sapra | Mar 2, 2020, 4:50 PM

Most of Google's 8,000-strong office in Dublin, Ireland — the tech giant's European headquarters  — have been told to work from home on Tuesday after a member of its staff reported flu-like symptoms. Other tech companies like Twitter and Coinbase are also following suit. 

Google stressed that the day-long measure was precautionary, and in accordance with the advice of medical experts. 

"We continue to take precautionary measures to protect the health and safety of our workforce, in accordance with the advice of medical experts, and as part of that effort we have asked our Dublin teams to work from home tomorrow," a Google spokesperson told Business Insider.  

COVID-19, the disease caused by coronavirus, has spread well outside its place of origin in Wuhan, China since its outbreak at the end of last year. The disease, which has infected around 88,000 people around the world, with the vast majority of cases in China, is now also disrupting businesses as multinational businesses reconsider their conferences, travel, and their employees' daily commutes.  

Google has been tightening up its policies after a Google employee tested positive for the coronavirus in Zurich last week. It has restricted its employee travel and cancelled Google Cloud's biggest event of the year as concerns around the outbreak grow. 

Other tech companies follow suit

Precautionary work-from-home policies are now also being adopted among other tech companies, like Twitter and Coinbase. 

Twitter is now recommending that all employees around the world, nearly 5,000 in total, work from home. The company announced its recommendation out of an "abundance of caution" in a blog post on Monday, after it suspended all non-critical travel for employees and its CEO Jack Dorsey opted out of attending the SXSW conference in Austin later this month. 

"We are strongly encouraging all employees globally to work from home if they're able. Our goal is to lower the probability of the spread of the COVID-19 coronavirus for us  — and the world around us," the post said. 

Dorsey is already a big proponent of remote work, and hinted that the company would be taking more steps to support a more global, remote workforce earlier this year. Twitter's blog post referred back to that announcement, noting, "while this is a big change for us, we have already been moving towards a more distributed workforce that's increasingly remote." 

Cryptocurrency exchange platform Coinbase also announced a similar measure, according to a document that Coinbase CEO Brian Armstrong linked to Twitter. 

"We're asking some employees to start working home this week," Armstrong tweeted. "Working from home is not a complete solution but it may help slow the growth of infections." 

Brian Armstrong✔@brian_armstrong

An update on COVID-19. We're asking some employees to start working from home this week.https://docs.google.com/document/d/1SRP4dnVCvKB7A5WXrESe-cL51i6_cg5nNGLNld6qch0/edit?usp=drivesdk …

Working from home is not a complete solution, but it may help slow the growth of infections. https://twitter.com/brian_armstrong/status/1232378605738455040 …

Coinbase Coronavirus Planning & Comms

Notes: We will update this doc with additional communications and context as things progress. Some internal links were removed from the doc below, for external consumption. Shoutout to our incredible...

docs.google.com

Brian Armstrong✔@brian_armstrong

Sharing our internal planning and communications around #coronavirus / COVID-2019 in case helpful to other companies.

We want to be prepared for the worst at @coinbase, but also be calm/rational in our approach. I'm sure much to improve on.https://docs.google.com/document/d/1SRP4dnVCvKB7A5WXrESe-cL51i6_cg5nNGLNld6qch0/edit# …

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A linked document elaborates on Coinbase's updated policies. 

"Employees that are likely to get sick more easily or for whom getting sick would be particularly problematic should now work with their manager to move to 100% Work From Home (WFH)," Coinbase's communications document said. It also says that business travel will be restricted to "essential travel only," and travel to China, Hong Kong, Japan, Italy and South Korea will be completely restricted. 

Other Silicon Valley tech companies have yet to ask its employees to work from home, but they have instituted other measures to lessen the likelihood of infection spreading. Facebook is asking its employees to stop bringing guests to work, and a Gizmodo report says Amazon is putting on-site job interviews on hold. 

Meanwhile, Business Insider reported on Monday that some Microsoft employees don't feel that the company is doing enough to help employees stay safe amid the outbreak.

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Source: Business Insider

https://www.businessinsider.com/google-dublin-coronavirus-work-from-home-twitter-coinbase-2020-3

Dave Chase

GUEST WRITER

Co-founder of Health Rosetta

February 7, 2019 

Small organizations get creative to attract employees, then keep them healthier and happier.

In a tightening labor market, employees expect (and receive) higher salaries and better benefits. Businesses must find innovative ways to stay competitive and attract top talent. This can be especially difficult for small business with limited financial resources. With a record number of Americans quitting their jobs -- up to 3.3 million in 2018 -- now is the time to act.

A new survey from the Association of International Certified Professional Accountants revealed 80 percent of workers would choose a lesser-paying job with good health benefits over a job with no benefits. But employers don’t have to choose between one or the other. A self-insured health plan can cut costs, provide access to value-based primary care and enable leaders to offer the attractive salaries and benefits that matter most to achieve a happy, healthy and productive workforce. Time and again, wise employers realize the best way to slash healthcare costs is to improve benefits. 

Related: You Can Cut Employee Health Insurance Costs the Same Way Big Companies Do

Don’t worry about wellness programs.

Wellness programs seem to be trending. In recent years, employers have expanded their wellness offerings to include on-site fitness centers, free massages, exercise tracking devices and more. But these programs aren’t required for businesses to keep up with the competition. Wellness programs are an expensive add-on, costing employees approximately $100 to $150 per individual each year -- plus an average of $784 annually per employee in participation incentives.

Employers employers should do without this perk. Industry surveys suggest that fewer than one-quarter of employees take advantage of these programs. And of those who do, many already are healthy and therefore not in dire need of the services. Rather than investing additional money in a wellness program, employers should take a look at their existing health plans. Organizations can spend smarter by creating plans that provide high-quality, affordable care.

Related: Employee Wellness Programs Need an Overhaul

Improving benefits actually can lower costs.

Becoming self-insured is the first step. This system runs counter to the popular fully insured model, in which employers and insurers split employee health costs. Self-insured plans require employers to pay for their employees' medical expenses with their own money. But who would do this? As it turns out, forgoing a fully insured plan allows employers to eliminate an insurer's profit margin and avoid annual rate increases.

Fully insured plans.

Former insurance executives have told me they make up to 10 times the margin on fully insured customers, compared to the margin on self-insured customers. It’s no wonder industry executives create compensation schemes that entice benefits brokers to keep employers fully insured as long as possible. In 2018, family premium rates rose 5 percent and singles’ rates rose 3 percent. Employers expect another 5-percent increase this year. And those figures are on the conservative side. I regularly hear of employers receiving rate increases of 20 percent and higher. It’s also easy to miss the fact that carriers are very adept at changing coverage, so an increase of “only” 5 percent actually can be quite a bit more, when increased copays and deductibles are factored in.

Related: This Startup Aims to Be the Slack of Healthcare 

Self-insured plans.

Many employers fear that self-insured plans run more risk than fully insured ones. One employee’s emergency medical expense could eat up the sum total an employer had set aside for all of employees. This is why it’s so crucial to invest in stop-loss insurance -- coverage that kicks in after claims exceed a set amount. Claims can be processed by a high-value, transparent third-party administrator (TPA). The TPA charges a monthly fee to pay claims and perform other administrative functions for self-insured employers’ health plans.

A TPA can transform health benefits from a black-box line item that increases by double digits each year to a cost center employers can actively manage and control. The value is evident, with annual cost reductions of 10 to 25 percent. Our nonprofit, Health Rosetta, developed a simple calculator to help CFOs translate how getting healthcare costs under control can have a greater impact on earnings than a substantial increase in company sales.

Value-based options.

Some plans provide access to value-based primary care, which rewards health care providers for having positive patient outcomes. This option further slashes costs. Physicians focus on results, dedicating more time to discussing patient symptoms and treatment. This could lead to fewer unnecessary (and potentially harmful) tests and follow-up or referral appointments.

To further reduce costs, employees who already have established a relationship with a value-based primary-care physician could be encouraged to take advantage of telemedicine visits. Patients can address minor concerns via email, chat, phone, or video conference --- without a trip to the Urgent Care clinic. This gives people living with chronic conditions a chance to see the doctor before an acute condition worsens. This ready, low-cost access also also could help patients manage treatments so they don't deteriorate to the point of needing an expensive trip to the Emergency Room.

Communication is key.

Surveys and focus groups can help target worthwhile benefits by giving employees the opportunity to talk about the kinds of care they need most. For example, a business whose stable pool of employees primarily are done building their families may not take advantage of maternity coverage or adoption-related expense. An on-site physical therapist, however, could be a help if daily work responsibilities require strenuous activity (or, in contrast, sitting too much).

It’s not just about employees talking to employers, however. No health plan will work optimally unless employers make its details clear to employees via presentations, workshops or webinars for remote teams. Companies can create print materials and online portals or micro sites to provide "anywhere" access to plan information.

Human Resources professionals must take the time to learn the nuances of the plan so they can appropriately respond to employee concerns. Employees who receive clear information on the available options will require HR to spend less time fielding coverage questions or requiring a new doctor. Some mid-size and larger companies offer a benefits concierge. This position more than pays for itself by helping employees navigate their healthcare journey.

Related: 6 Communication Tips to Strengthen Your Company's Culture

It can be a struggle for small businesses to keep up with increasing healthcare costs and compete against the salary/benefits packages that larger organizations can offer. However, they can boost their benefits offerings if costs decrease within care delivery -- eliminating widespread over-treatment such as improperly addressing back pain, for example. Working with a properly aligned benefits advisor is critical to help identify high-value health benefits. An experienced advisor even can help recommend interim steps for organizations that aren't yet ready to move wholly from a fully insured plan to a self-insured model.  

Though they may take time and hard work to get off the ground, self-insured health plans that provide low-cost, value-based care are the secret to providing better benefits, saving money and running a successful small business.

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Source: Entrepreneur 

https://www.entrepreneur.com/article/325994

Aparajita Saxena

ENTREPRENEUR STAFF

Deputy Associate Editor, Asia Pacific

Published Late January 2020 

The numbers are still growing: till date, around 81,018 cases of a coronavirus infection have been reported, far outpacing the SARS epidemic in early 2000s. Around 29 countries and territories around the world have been affected, and only 30,189 people have recovered till now.

The World Health Organisation last week named the new coronavirus out of Wuhan that has killed 1,1875 people COVID-19, and said that a vaccine to combat the infection should be ready in 18 months.

 

Source: Worldometer

A paper by the Chinese CCDC released on Monday showed that the risk of death from COVID-19 was higher in older patients, and that relatively fewer cases were seen in children.

With coronavirus still continuing to spread across the world, we’ve put together a handy guide on best practices companies and human resources departments should follow to help their employees stay healthy and infection-free.

 

Effective Communication is Key

HR departments should pull together information pertaining to the coronavirus to create a ready-to-refer instructional guide for employees that not only educates them about the viral infection, but also enlists ways to avoid it.

The communication strategy should be multi-pronged and use all channels of communication available.

“You are looking at bulletins, sticking posters on the wall, emails, chat groups, town hall, infographics, videos, and any mode of media that could help to effectively communicate the message to all employees,” says Adrian Tan, a veteran HR practitioner and APAC leader of PeopleStrong, an India-based Enterprise HR SaaS platform.

Information gathered should only be from credible and verified sources, such as the page, the CDC website, and reputable news outlets that clearly attribute their information to either statements made by governmental agencies, or health professionals engaged in researching the virus.

Check out this Bloomberg story that busts some myths and highlights false information about coronavirus making the rounds online.

 

Implement Flexible Working Arrangement Plans, or BCP Protocols

For those in the thick of it - like countries that share a border with China, or have multiple reported cases of a coronavirus infection - allowing employees to work from home is the best way to prevent contamination given that human-to-human transmission is possible.

“By implementing flexible working arrangements, you are not just eliminating the possibility of transmission at the office but also during commute. This is especially so for densely populated cities such as Hong Kong where you are literally inches away from someone’s face in the MTR during peak hours,” says Tan.

This holds true for many other countries with packed urban centres as well.

“Given the better infrastructure that we have today, it is much easier to be “business-as-usual” with chat platforms, project management dashboards and other platforms that are online or on the cloud,” he adds.

This might not be possible for work that is location-dependent though, but the CDC and WHO websites have laid out ways to avoid viral infections by using non-invasive implements such as face masks, alcohol-based hand sanitisers, and maintaining good personal hygiene.

 

Reconsider Leave Policies

The last thing a company would want is for an infected employee to turn up to work because they didn’t have enough paid time off left. That not only hurts the sick employee who has had to stress him/herself out to get to work, but also their colleagues, as well as everyone and everything they encounter and touch on the way.

“If the company is results-driven, whether the employee works from home or in the office should not matter as long as the work is being delivered. Given the developments in technology today, there is a suite of solutions for companies to use such that meetings, discussions and day-to-day work can go on per normal,” Tan says.

For employees that are suspected of being sick, or start feeling ill during the day, particularly those that have been travelling, calling and notifying health authorities should be a priority. Fear mongering and forcing the employee into isolation, against their will, should be avoided at all costs, until advised by a medical authority.

 

Using Tech to Avoid Human Contact Might not be such a bad thing

Platforms that allow teams to collaborate and communicate effectively can be used during work-from-home days. Meetings can be done over Skype, Google Hangouts, or Zoom, while real-time collaborations can be done using free platforms like Collabedit.

(Read about more collaborative tools you can use here and here.)

 

Other HR Initiatives, Apart From Handing Out Free Masks, According to Tan

• Beside provisioning free masks and sanitisers, the cleaning schedule of the office can be increased.
• Senior management has to walk the talk to ensure they mask up wherever appropriate to.
• Temperature taking could be incorporated so that everyone in the office would have a peace of mind and not be paranoid that their co-workers may be infected. Such information should be openly available so that employees have complete trust in the information provided.
• Lastly, lunch could be catered so as to minimize employees exposure to crowded areas like the food centre.

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Source: Entrepreneur Media, Inc.

https://www.entrepreneur.com/article/345759

By Kayla Webster

February 20, 2020, 11:03 p.m. EST

Key players in the HCM software industry are joining forces to create what the companies say will be one of the world’s largest cloud companies.

Kronos and Ultimate Software announced their merger agreement on Thursday. A new company name hasn’t been revealed, but the venture will be valued at $22 billion. The company will utilize Ultimate’s UltiPro HCM and Employee Experience tools, in addition to Kronos’ Workforce Dimensions and Workforce Ready in its offerings.

“The combination of Ultimate and Kronos paves the way to deliver the next generation of employee-facing solutions that will set the standard for the workforce of the future,” said Adam Rogers, CEO of Ultimate, in the merger’s announcement. “Both companies remain fully committed to their core strengths as well as to the combined benefits that the new company will bring to employees and customers.”

The merger will create a workforce of around 12,000, with plans to hire an additional 3,000 employees over the next three years.

Both companies have received coveted spots on “best employer to work for” lists by Glassdoor and Fortune 100.

The new company’s executive team will include members from both Kronos and Ultimate. Aron Ain, CEO of Kronos, will take up the leadership mantel of the new venture, which will be jointly headquartered in Lowell, Mass. and Weston, Fla.

“Together, we will expand the value we deliver to customers and create the industry’s most comprehensive human capital management and workforce management solution for organizations around the world,” Ain said in the announcement.

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Source: Employee Benefit News

https://www.benefitnews.com/news/kronos-and-ultimate-software-merge

AUTHOR

Jennifer Carsen

PUBLISHED

Feb. 17, 2020

Dive Brief:

• While 67% of organizations say pay transparency is increasingly important — with 4% reporting it's of the highest importance — only 14% of organizations have dealt with pay transparency beyond a "moderate" level, according to a study by WorldatWork and Mercer.  
• While near half of employers have a "moderate" approach," 4% have nonexistent approaches to pay transparency, 35% have minimal transparency and just 1% have extreme transparency, according to the survey of 478 respondents. Additionally, more than 60% of respondents said their managers are not trained to effectively deliver pay communications.
• Nearly half (42%) of respondents do not share information about how jobs are valued and compensated within the organization. When pay equity adjustments are made, only 53% of organizations communicate to their employees that the increase is the result of a pay equity adjustment; 30% bundle the adjustment along with other pay increases and don't explicitly mention it.

Dive Insight:

HR's ability to accurately price workers' skills is central to the hiring process, according to PayScale. Additionally, when managers understand the value of skills, they can be more transparent when talking with employees about professional opportunities and growth.​

Pay transparency has been shown to eliminate gender-based pay gaps across most jobs, except for traditionally male-dominated occupations like protective services and repair/maintenance. Pay transparency may also help reinvigorate wage growth in the United States, some have proposed.

Increasingly, pay transparency is mandated by law; a few states, including California and New York, have explicit pay transparency laws, and many jurisdictions prohibit employers from asking about an applicant's salary history (notably, Philadelphia's salary history ban was recently upheld after a lot of legal back-and-forth).

Section 7 of the National Labor Relations Act also protects employees' right to discuss pay and working conditions, even in non-union workplaces. Many big employers, including Lowe's and Burger King, have gotten in trouble for trying to shut down these conversations.

Many employers are understandably concerned about potentially opening a can of worms with employees when they consider increasing pay transparency. Experts point out that there is a big difference between disclosing individual pay decisions versus simply being open about the company's overall compensation philosophy.

A comprehensive pay audit can be a good place to begin, to investigate if any gender-based or other compensation disparities exist. This audit is best performed in conjunction with counsel so that legal privilege exists in the event of any future disputes.

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Source: HR Dive

https://www.hrdive.com/news/companies-managers-pay-transparency-lacking/572258/

And it's not just parental leave, but bereavement leave, military leave, mental health days and more.

By Katie Kuehner-Hebert | February 04, 2020 at 10:19 AM

---------    

Corporations are expanding paid leave benefits – even more than what is currently required by law, according to the Business Group on Health’s 2020 Large Employers’ Leave Strategy and Transformation Survey.

Business Group polled 113 large employers and found that 39 percent of large employers expanded their paid leave benefits in 2019. More specifically, 30 percent added new types of leave, 24 percent expanded the duration of leave and 12 percent expanded eligibility of leave.

“Large employers most reported adding or making changes to parental leave and caregiver leave,” the authors write. “However, employers are also looking beyond these leave types to volunteer leave, bereavement leave, military leave, mental health days, summer Fridays off and short-term disability.”

For 2020, fewer employers plan to add a new type of leave, though they will continue to expand upon current offerings. Almost a quarter (23 percent) say the duration of leave available will increase, and 8 percent say they will expand eligibility for leave benefits. For 2021 and 2022, even more employers (15 percent) are considering expanding eligibility.

“The future expansion of eligibility demonstrates that employers not only understand the value of leave but are making a commitment to provide equitable benefits for all employees,” the authors write.

When asked which factors most influence the design of leave benefits (other than legal requirements), company values and brand (66 percent) and market research and competition (66 percent) are the top choices for the respondents.

“Interestingly, more employers indicated that employee feedback (57 percent) influenced the design of leave benefits than senior leadership did (30 percent), potentially a sign of the growing support for leave benefits among the general population, as well as the desire among large employers to improve the employee experience,” the authors write.

Eighty-two percent of the respondents say that employee health and well-being is a top reason leave benefits are important to their workforce strategy, “demonstrating employers understand time away from work and employee well-being are closely related.” Compliance (67 percent) and employee engagement (46 percent) are other top reasons respondents offer leave benefits.

Regarding employer challenges related to leave and absence management, 77 percent of the respondents say that state and local paid leave laws are a top challenge, followed by employee experience with the leave process (66 percent), intermittent leave management (44 percent), lack of resources for administration (39 percent) and business continuity (37 percent).

“State and local paid leave laws have required many employers to re-examine the design and administration of their leave benefits to ensure compliance,” the authors write. “These policies can create disparities across a national company’s workforce and may impair the employee leave experience….How do large employers view these state and local requirements? Many are looking to a federal law that would simplify matters for multi-state employers.”

When asked which elements of a federal paid family leave law would be particularly important, a uniform, nation-wide standard for compliance and reporting is the top priority (88 percent), “a strong signal that employers are feeling inundated by the requirements.” Respondents’ second priority is establishing a nation-wide paid leave standard (78 percent), a response in line with the importance of a preemption of state and local laws.

“Current legislation under consideration by Congress, most notably the FAMILY Act, would set a federal floor for paid family leave benefits but would not supersede state or local paid laws, not addressing large employers’ major concern,” the authors write. “The recent Federal Employee Paid Leave Act, signed into law in 2019, provides 12 weeks of paid parental leave for federal employees and may also serve as a model for future legislation. However, because there is no widespread agreement on amounts and funding for family and medical leave nation-wide, Congress will likely continue debating federal leave solutions in the months to come.”

Regarding the structure of leave benefits, for exempt employees, 54 percent of employers provide access to a traditional leave structure, 40 percent offer PTO and 6 percent offer unlimited/permissive leave. For non-exempt employees, traditional leave structures are even more popular with 61 percent of employers offering this structure. Thirty-eight percent of employers utilize PTO and 1 percent offer unlimited/permissive leave.

“While a traditional leave structure with separate vacation and sick leave banks were used by most large employers in 2019, PTO and unlimited/permissive leave have grown in popularity over the past decade, and survey results indicate that trend will continue in 2020,” the authors write.

For 2020, 18 percent of large employers are considering major changes to their current leave program by switching from one structure to another. While a few are looking closely at implementing an unlimited/permissive leave structure, more employers are looking to move from a traditional structure to PTO.

For multinationals, about one in five have established a global leave policy and another 18 percent have a philosophy in place, though many leave programs are implemented locally. Leave related to parenting (parental, maternity/paternity, adoption) is covered by more than 90 percent of global policies. Bereavement and caregiver leave are less likely to be included. Two-thirds of global employers calculate leave using a global minimum standard and 28 percent offer a stacked benefit in which the same amount of leave is added onto the statutory requirement.

“Large employers with global locations must navigate significant challenges in order to establish a program with globally consistent principles that can be adapted to local cultural norms, while complying with varying country-specific legislation,” the authors write. “When it comes to legislative requirements, many countries are ahead of the U.S. in establishing guidelines and policies for parental leave, sick time and paid time off for vacation, to name a few.”

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Source: BenefitsPro.com

https://www.benefitspro.com/2020/02/04/big-companies-expanding-paid-leave-options/

Solving pay equity comes from organizations and their leaders who take ownership of culture, pay programs and total rewards.

Scott Cawood (CEO of WorldatWork)

Feb. 05, 2020

--------------------  

In 2018, 40 states put through legislation on pay equity practices. 

There is no shortage of laws that give all people the right to be free from discrimination in compensation, including the Equal Pay Act of 1963, Title VIl of the Civil Rights Act of 1965, the Age Discrimination in Employment Act of 1967, and Title I of the ADA Act of 1990. 

Pay equity is a critical issue for our time. It’s proven to drive profits for companies that support it. So why is it taking legislation to get companies to move towards a more fair and equitable pay system?

Perhaps it’s the misperception that pay equity means treating everyone the same way. But equal doesn’t mean fair. The goal of pay equity is not to treat everyone the same — it’s actually just the opposite. You can treat people fairly and still treat them differently. Factors such as educational background, tenure, skill, quality of work, etc., are all variables that can, and should, be factored into the mix. But, biases based on personal attributes, such as race, gender, age, disability, sexual orientation and more, are variables that should not affect pay.

Pay equity is equal pay for work of equal value. It is also used to describe pay comparisons where there is no unexplained difference pay, and that is not the result of defensible and legitimate factors. Therefore, pay inequity is any difference in pay that is unexplained, or not the result of defensible and legitimate factors.

According to the World Economic Forum Global Gender Gap Report for 2018, which benchmarks 149 countries on their progress toward gender parity, the US ranked No. 51 in the world. We can do better. By comparison, Iceland, Norway and Sweden occupy the top three spots. And, although many countries have achieved important milestones toward gender parity, much still needs to be done.

Pay equity includes total compensation — including overtime pay, bonuses, stock grants, profit sharing and bonus plans, and yes, life insurance, PTO and holiday pay, travel allowances, reimbursement for travel expenses. However, we need to remember all the processes that result in a worker paycheck, including promotions, performance reviews, merit raises, access to the CEO and representation on the leadership team since they all can impact pay differences over time. 

And, while individual organizations have their own formulas for fair and equitable compensation, everyone will benefit by evaluating pay equity in the broader ecosystem. Solving pay equity comes from organizations and their leaders who take ownership of culture, pay programs and total rewards.

The first step is for organizations to be willing to take a look at their own data and processes.  And then be willing to acknowledge it if there are issues around pay equity and work to solve for it. Some may desire to make their process and findings public inside their companies, and then share the plan to monitor it regularly to ensure continued pay equity.   

 Here are three things to get started: 

1. Analyze average pay of people within an organization to find patterns. Start by role-to-role comparisons, then group to group, the protected classes.
2. Evaluate the hiring processes to ascertain diversity of teams and the ways in which your process results in a wide range of candidates.
3. Evaluate the processes which reward, promote, and give feedback to your workforce.  Are they equitable or did the majority of raises go to one gender, racial, or age group?

 To solve for pay equity issues we must look closely at representation. We need more women, people of color, and the LGBTQ community in leadership positions such as on corporate boards. According to Heidrick & Struggles, men hold 93 percent of the CEO positions in U.S. companies. Further research from ISS Analytics found that the percentage of female directors is just 24 percent in the United States.

Total rewards programs include anything that signals to the employee that they are important. The most effective total rewards programs are enacted through the lens of inclusion and take into consideration representation from under represented groups.

It’s also critical to be transparent as to how rewards are given out and how employees can navigate the system. Today, most employees do not have any idea how their pay packages are put together. An organization’s goal is transparency so that people understand how to navigate the culture and achieve their potential at work, which affords them the chance to have a great life.

For example, ACIPCO, an international provider of clean energy technology and services, provides quarterly profit sharing, an on-site health care facility and rewards workers for good tips/suggestions. They also give access to the company plane and yacht when employees need it — and this is not based on hierarchy, everyone gets access. It’s no wonder that they consistently land on Fortune’s 100 Best Companies to Work For and, in an industry where turnover is 80- to 100 percent, they have less than .05 percent a year.

Starbucks offers free Spotify premium and free online classes at Arizona State University and, of course, free coffee. Netflix offers one-year parental leave and Salesforce.com provides commuter benefits, educational reimbursement, refinancing of student debt and 24-hour travel assistance.

Because of the impact on culture, customers, and on the regulatory environment, it’s vitally important that attention to this comes from the C-suite, not just from HR. The critical role for HR is to observe, rebuild systems, make sure the data is accurate and challenge the C-suite and the existing ways of doing things to be the champion of the people experience. 

Here are the takeaways: 

1. Don’t shy away from the issue of pay equity. Embrace its importance and build processes around the issue rather than waiting for federal or state laws to dictate what you need to do.
2. Analyze and understand current plans that are in place. If a woman or minority is disadvantaged from the start of employment, that’s a problem that will grow exponentially.
3. Consistently look at and monitor the process, review it and test it.
4. Assess gaps from these measurements and make changes accordingly.
5. Institute transparency between employees and leadership so that you’re setting the narrative and telling your own story rather than allowing social sharing to drive it and derail it.

 In short, paying people fairly is a great idea for many reasons and a great business practice. Don’t be afraid to look at your own pay equity issues. It’s better to be in the know. 

The result is a boost in reputation, the ability to recruit the best talent and to provide employees the ability to maximize their contributions to the organization.

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Source: Workforce.com

https://www.workforce.com/news/pay-equity-doesnt-mean-paying-the-same-for-everyone

By Katie Kuehner-Hebert | January 27, 2020 at 10:45 AM

Being open and talking about your company's compensation strategies can shrink the wage gap between genders and generations.

How to combat unconscious bias among your workers that your organization isn’t doing enough to achieve pay equality for men and women?

Have a frank discussion with employees about your compensation practices—and back those talks up with real time market data to show how their pay was determined, according to PayScale Inc.’s report, “Does Pay Transparency Close the Gender Wage Gap?”

PayScale compared pay for men and women doing the same job in the same geographic location, with the same experience and education, and for 2019, the overall “controlled” gender pay gap was women earning $0.982 cents for every $1 men earned.

However, for workers who said they had a transparent pay process at their company, the gap was effectively erased: for this group, women in 2019 were estimated to earn between $1 and $1.01 for every dollar earned by men.

“This latest research shows just how powerful transparent pay practices can be for organizations,” says PayScale CEO Scott Torrey. “When employers use real market data and talk openly with employees about their pay, it serves to challenge the underlying bias that can impact decisions about compensation. Most employers want to ensure they’re paying fairly, so we encourage HR departments and senior leaders to adopt transparent pay practices as an important step toward achieving this goal.”

Having a transparent pay process also erases the gender pay gap across generations, PayScale’s analysis found. Millennial women who work in a transparent pay environment do slightly better ($1.02) than other generations of women (who all earn $1.01).

Across industries, transparency helps to reduce the gender pay gap, though a marked gap still exists in some industries, including accommodation and food services, retail and customer service, and transportation and warehousing.

Certain occupations that are male dominated also continue to have a marked gap — even after transparent pay practices are adopted by their employers. Those include food preparation and serving-related occupations, installation, maintenance and repair jobs, production occupations, protective services jobs and sales occupations.

Moving up the career ladder, transparent pay discussions appear to have the largest impact for individual contributors, supervisor and managers, according to the analysis. By contrast, female directors and executives still faced discriminatory pay penalties for their gender–however, the gender pay gap is diminished with transparent pay practices.

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Source: BenefitsPro

https://www.benefitspro.com/2020/01/27/pay-transparency-can-help-eliminate-the-wage-gap/?slreturn=20200104123909