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DOL reverses course on ‘80/20’ limitations for tipped employees

The Department of Labor (DOL) recently released four new opinion letters, providing insight into their views on compliance with federal labor laws. Continue reading this blog post to learn more.


Last week, the DOL issued four new opinion letters providing both employers and employees further insight into the agency’s views regarding compliance with federal labor laws.

While the letters touch on a variety of issues, perhaps the most notable change involves the DOL’s about-face regarding the amount of “non-tipped” work an employee can perform while still receiving a lower “tip-credit” wage.

Essentially, this new guidance does away with the previous “80/20” rule regarding tipped employees. Under the 80/20 rule, businesses were barred from paying employees traditionally engaged in tip-based work, like servers and bartenders, a lower minimum wage and taking a tip credit for the other portion of the employee’s wage up to applicable state and federal minimum wage requirements when those employees’ side work, like napkin folding or making coffee, accounted for more than 20% of the employee’s time.

In recent years, there has been an explosion of litigation across the country over the 80/20 rule, questioning whether the tipped employee’s “side work” amounted to more than 20% of the employee’s duties and time. Likewise, in many of those same suits, plaintiffs would challenge individual tasks associated with their side work, attempting to claim that those tasks were not so closely related to their tipped duties, but rather rose to the level of a completely different or “dual job,” meaning that the employer should not be permitted to take the tip credit for hours worked performing those tasks.

What followed was case after case of lawyers, courts and employers quibbling over minutes spent folding napkins, wiping counters, slicing lemons, and painstakingly calculating and arguing as to whether those tasks added up to 20% and whether those tasks were not closely related enough to be included in the 20% calculation.

In these kinds of cases, we’d see arguments over circumstances like the server that moonlights as a “maintenance man” versus the server that changed the lightbulb or helped sweep underneath the tables.

The ultimate result: confusion, chaos and, frankly, a treasure trove for plaintiff’s attorneys who had another arrow in their quiver in which to seek additional purported wages for clients from employers that would find it difficult, if not impossible, to account for all minutes and tasks employees were performing in busy restaurants.

Following the DOL’s opinion letter, the landscape will change. Recognizing that the existing guidance and case law had created “some confusion,” the DOL expressly stated that they “do not intend to place a limitation on the amount of duties related to a tip-producing occupation that may be performed, so long as they are performed contemporaneously with direct customer-service duties...”

However, in attempting to provide additional clarity, the DOL may have instead opened up the proverbial Pandora ’s Box of uncertainty. In identifying the list of duties that the DOL would consider “core or supplemental,” the DOL refers to the Tasks section of the Details report in the Occupational Information Network (O*NET). It goes without saying that no document can provide an exhaustive list of tasks in today’s changing marketplace. While the DOL attempted to recognize the changing nature of today’s environment in a savings-type footnote, one does not have to look too far ahead to foreshadow the response from the plaintiff’s bar arguing over the related duties listed on O*NET.

While the DOL’s new position on the 80/20 rule will certainly come as a relief to many employers with tipped employees, employers should still be mindful in evaluating tipped employees’ job duties on a regular basis. Employees that are engaged in “dual jobs” are entitled to the full minimum wage, without the tip credit.

SOURCE: Kennedy, C. (15 November 2018) "DOL reverses course on ‘80/20’ limitations for tipped employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/dol-reverses-course-on-80-20-limitations-for-tipped-employees?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001

This article originally appeared on the Foley & Lardner website. The information in this legal alert is for educational purposes only and should not be taken as specific legal advice.


End-of-year FSA expenses: An employer cheat sheet

Reminding your employees what expenses their flexible spending accounts (FSA) cover can help alleviate the issue of unspent FSA funds at the end of the year. Read on to learn more.


The scenario is all too familiar for employers and human resource managers: The year ends, and employees still have unspent funds in their flexible spending accounts. Whether employees forget that the money in their FSA must be used or it will be lost, or they simply aren’t aware of which expenses can be covered by FSA funds, their frustration at losing money often falls on the employer.

Reminding employees which expenses are eligible to be covered by an FSA can help mitigate headaches for employers and HR departments in the new year and shed light on lesser-known options for making the best use of remaining funds before the end of the plan year.

As a general rule, an eligible expense is any medical expense the health plan doesn’t cover. This includes things such as out-of-pocket costs, co-pays, co-insurance, hospital visits and prescription drugs. Employees also can apply their FSA funds to dental and vision expenses, which often are not covered in health insurance plans.

Some eligible expenses employees might not be aware of include flu shots, prescription sunglasses, sunscreen that is 30 SPF or higher, grooming for service dogs, acupuncture, arch supports and nutritional consultations. Employees can also use money from FSA to cover pregnancy tests and prenatal vitamins, hearing aids, canes and wheelchairs. They can also use funds to cover personal trainer fees, as long as a letter of medical necessity accompanies the claim.

The IRS determines which expenses qualify for FSAs and maintains a list on its website. Most FSA administrators have lists on their websites as well. FSA-holders can either search for individual expenses or scroll through the list to see what opportunities they might be missing. But it’s a good idea for employers to provide those lists for employees.

In addition to reminding employees what types of expenses are eligible for coverage by FSA funds, employers should review if their plan has a grace period, runout or rollover. If so, employers should communicate the details with employees, as this can help them take full advantage of the time they have to incur expenses and submit receipts for reimbursement.

A grace period is the amount of time an FSA-holder has after the end of the plan year to spend unused funds or incur expenses. A typical grace period is up to 2.5 months after the plan year ends. A run out is the amount of time an FSA-holder has after the end of the plan year to submit claims for reimbursement. In this case, expenses must be incurred before the end of the plan year. An FSA rollover allows up to $500 to be carried over from one calendar year to the next.

Employees also might not be aware that they can use FSA funds on a medical dependent, whether that dependent is covered by the FSA holder's health plan or not. For instance, if an employee has a 24-year-old daughter not covered by the employer health plan who needs a co-pay for a doctor appointment covered, the employee can use their FSA.

Lastly, it’s also important to make it clear to employees the distinction between an FSA and a health savings account. While many of the same expenses are eligible for coverage by either an FSA or HSA, make sure to remind employees about a few key distinctions. An HSA is not “use it or lose it.” All funds roll into the new year and do not need to be used up before the end of the plan year. And for an employee to use his or her HSA to cover a dependent’s medical expenses, the dependent must be a tax dependent.

Helping employees make the best use of their FSA funds before the end of the year not only positions the employer as a hero for saving employees’ hard-earned money, but it inevitably saves the employer from a headache heading into 2019.

SOURCE: Peterson, M. (19 November 2018) "End-of-year FSA expenses: An employer cheat sheet" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/end-of-year-fsa-expenses-an-employer-cheat-sheet?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001


8 Ways to Relate to Time as a Realist

Time optimists tend to get overbooked and overwhelmed when things don't get done in time, according to productivity and time management expert Julie Morgenstern. Read on for tips on how to be a better time realist.


Productivity and time management expert Julie Morgenstern believes people can be grouped two ways when it comes to time management: Time realists and time optimists.

Time realists consider how long things take and what is going on in any given day. Time optimists are guided by what they hope to get done.

Morgenstern argues that time optimists get overbooked and overwhelmed when things don’t, or can’t, get done in time. To help people be better realists, she offers these tips in The New York Times:

  1. Pause before the yes
    Think about how long a task will take and clearly let stakeholders know what’s possible, or what will have to be postponed to make a new priority happen.
  1. Plan for two days
    Look ahead and see how the puzzle of your next few days looks as you consider where critical tasks will fit in.
  1. Batch activities
    Your concentration threshold will help you divide your days by administrative tasks, creative ones, and fit in hobbies and socializing. Then, create mini-deadlines for the most dreaded tasks.
  1. Deal with email
    Set aside time for regular email maintenance. If it takes less than five minutes, reply and deal with it immediately. Drowning in old email? Sort unread emails by date, and simply delete the oldest.
  1. Avoid too many tools
    Pick the four communication platforms—including email, texts, phone and social media messaging tools—you can manage and only manage those.
  1. Set a timer
    Work on things you’d procrastinate on in timed intervals and don’t stop until the timer goes off.
  1. Pick a calendar
    Rather than flip between a paper or electronic calendar, pick one and stick with it. Then, add your to-do list to it.
  1. Carve out ”me time”
    The most productive people claim personal time and make it part of their schedule. Whatever it is you love to do, create time for it the same way you do the things you have to do.

Read More:

The New York Times It’s Time to Become a Time Realist

SOURCE: Olson, B. (6 November 2018) "8 Ways to Relate to Time as a Realist" (Web Blog Post). Retrieved from: https://blog.ubabenefits.com/8-ways-to-relate-to-time-as-a-realist


Civic time off: The benefit getting employees to the polls

Some companies are now offering civic time off, the employee benefit meant to help increase voter engagement during the midterm elections. Read this blog post to learn more.


Voter engagement for midterm engagement historically has been poor. Some companies are offering new benefits to change that — even offering the day off to encourage employees to vote.

American employers that provide paid time off stands at about 44%, a record high, according to the latest research from the Society for Human Resource Management survey. The human resource organization estimates 29% of these companies offer employers more than an hour or two of voting time.

Despite such accommodations, about 60% of Americans didn’t vote in the last midterm election, according to research by Vote.org, a voters’ advocacy organization. The biggest obstacle to voting was scheduling conflicts; 35% of people said they couldn’t vote because of work and school.

“There’s no federal protection for voting leave for employees, which means it’s up to the states to set their own policies. Policies are inconsistent, but some states have no laws at all,” says Colette Kessler, director of partnerships at Vote.org. “This puts employers in a powerful position to enable employees to get to vote.”

But as more Americans prepare to head to the polls for key elections in 46 states, employers including Patagonia, Zenefits and Honest Tea, are opting to give employees paid time off to make their voice heard.

Outdoor retailer Patagonia, for instance, is closing its stores as well as its headquarters and distribution and customer-service center to give employees paid time off to vote. “No American should have to choose between a paycheck and fulfilling his or her duty as a citizen,” Patagonia CEO Rose Marcario wrote in a company blog post.

Meanwhile, human resource software company Zenefits implemented a new program in which employees can take time off to vote the same way they would for a doctor’s appointment. Voting won’t cut into their sick days, vacation time or paid time off. Instead, voting gets its own designation — civic time off, or CTO. That free time can be used for voting, volunteering for a candidate, attending a school board meeting or canvassing.

“Civic time off is a new concept for the industry, and we’re excited to be among the first to offer such a benefit,” says Beth Steinberg, chief people officer at Zenefits, in a letter on the company blog. “At Zenefits, it’s been a priority to help build our team’s skill set not only as it pertains to professional career growth, but also to encourage their development outside of the workplace as engaged and empowered citizens.”

Vote.org consults with companies interested in implementing a CTO program. Based on individual business models and company culture, the organization will suggest either full days off, half days or flexible scheduling.

“One benefit we’re really excited about is offering employees a half day. It gives employees the ability to get to their polling places and do their morning routine — like getting the kids to school and running errands,” Kessler says. “And later they can convene with colleagues and celebrate Election Day. We’re seeing HR teams create afternoon lunch parties to celebrate.”

Kessler says some companies are hesitant to provide time off for voting because they’re worried about losing productivity. However, most of the companies she’s worked with have been enthusiastic about providing their workforce with time off to vote.

“We don’t see any drawbacks to offering our employees flexibility on Election Day,” says Seth Goldman, co-founder and CEO emeritus of beverage company Honest Tea, which allows its 50 employees to take a few hours of paid time off go to the polls on Election Day, at their convenience. “It’s a right we all should be proud to recognize and support however we can.”

SOURCE: Webster, K. (5 November 2018) "Civic time off: The benefit getting employees to the polls" (Web Blog Post). Retrieved from: https://www.employeebenefitadviser.com/news/civic-time-off-the-benefit-getting-employees-to-the-polls?feed=00000152-a2fb-d118-ab57-b3ff6e310000


How AI can predict the employees who are about to quit

How can artificial intelligence (AI) predict which employees are going to quit? Employers are now utilizing AI to help predict how likely it is that an employee will stay with their company. Read on to learn more.


Tim Reilly had a problem: Employees at Benchmark's senior living facilities kept quitting.

Reilly, vice president of human resources at Benchmark, a Massachusetts-based assisted living facility provider with employees throughout the Northeast, was consistently frustrated with the number of employees that were leaving their jobs. Staff turnover was climbing toward 50%, and after many approaches to improve retention, Benchmark turned to Arena, a platform that uses artificial intelligence to predict how likely it is that an employee will stay in their job.

“Our new vision is about human connection,” he says. “With a turnover rate that’s double digits, how do you really transform lives or have that major impact and human connection with people who are changing rapidly?”

Since Benchmark started using Arena, staff turnover has fallen 10%, compared to the same time last year. During the hiring process, Arena looks at third-party data, like labor market statistics, combined with applicants' resume information and an employee assessment that will give them a better sense of how long a candidate is likely to stay in a role.

“The core problem we’re solving is that individuals aren’t always great at hiring,” says Michael Rosenbaum, chairman of Arena. “Job applicants don’t always know where they’re likely to be happiest. By using the predictive power of data, we’re essentially helping to answer that question.”

Arena isn’t interested in how an employee responds to assessment questions, he says. They’re much more interested in how employees approach the questions.

“What you’re really doing is your collecting some information about how people react to stress,” Rosenbaum adds.

For example, if an employee is applying for a housekeeping role, Arena may give them a timed advanced math question to complete — something they may never use in their actual job. Arena then studies how the candidate responds to the question — analyzing key strokes and tracking how the individual tackles the challenge. The software can then get a better sense of how an applicant responds under pressure.

Overtime, Arena’s algorithm learns from the data it collects. The system tracks how long a specific employee stays at the company and can then better predict, moving forward, whether other employees with similar characteristics will stay.

“Overtime they are able to sort of refine that prediction about those that are most likely to stay, or be retained with our organization,” Reilly says. “They may also make a prediction on someone who might not last very long.”

Reilly says he’s been encouraging hiring managers at the facilities to use the data given to them by Arena to take a closer look at the candidates the platform rates as highly likely to stay in their roles. Although it’s ultimately up to the hiring manager who they select.

“Focus your time on the [candidates] that are more likely to stay with us longer,” Reilly says.

For now, Arena exclusively works with healthcare companies. The platform is currently being used by companies like Sunrise Senior Living and the Mount Sinai Health System in New York. Moving forward, Rosenbaum says, they’re hoping to get into other industries, although he would not specify which.

Rosenbaum says Arena is not only focused on improving the quality of life for employees, but also for the patients and seniors that use the facilities. The happiness of patients, he says, is closely tied to those that are caring for them.

“Is someone who is in a senior living community happy? Do they have a positive experience? It is very closely related to who’s caring for them, who’s supporting them,” he says.

SOURCE: Hroncich, C. (15 November 2018) "How AI can predict the employees who are about to quit" (Web Blog Post). Retrieved from: https://www.employeebenefitadviser.com/news/how-ai-can-predict-the-employees-who-are-about-to-quit?brief=00000152-1443-d1cc-a5fa-7cfba3c60000


Give employees time back in an always-on working world

With time being the most precious benefit of all, a growing number of employers are offering benefits designed to save employees time. Continue reading to learn more.


When it comes to employee benefits, what do people really want?

As HR and benefits professionals, we shouldn’t make broad assumptions or generalizations about what benefits our employees need or want. Each employee in any given organization is an individual with different circumstances to be met at every stage in their lives — from those entering the workforce to those preparing to retire, and everyone in between. This is why employers must differentiate their benefits packages to meet the needs of a diverse and multigenerational workforce. And as consumers demand more choice in how they spend their benefits dollars, employers are getting more creative and curating a more expansive set of options for everyone.

No matter how efficient an employee is, work inevitably extends beyond the traditional workday from time to time. Similarly, as the lines between home and work blur with flexible work arrangements and email available 24/7 on smartphones, employees still need to take care of personal tasks, like scheduling family dentist appointments, setting up child care, disputing medical bills or calling the veterinarian … all during the workday.

Regardless of generation, industry, position or title, people are yearning to find the right balance between work and life demand. Time is the most precious benefit of them all. As a result, there are a growing number of employers offering benefits designed to save employees time.

Previously offered predominantly by large, tech companies in Silicon Valley, we’re seeing time-saving benefits spread to employers and industries of all kinds and encompass a variety of conveniences, from on-site dry cleaning pickup, to employer-funded shuttles to get employees to and from work, gym memberships, grocery delivery and services like dog walking and personal errands. This benefits category can also include more significant, personalized benefits like concierge health services, assistance in evaluating elderly care options, telehealth for humans and pets, and emergency childcare services.

Once seen as just perks, these services run deeper. Employers care about their people, and these time-saving benefits — anything people leave work early for, or deal with during the work day — has created a new benefits category that increases employees’ productivity and capacity for work by eliminating distractions and freeing up mental space. While these types of benefits may seem like “nice to have” instead of essentials, they can add up and make a substantial difference in employees’ lives.

Life is complicated. Things go wrong that impact productivity, contribute to presenteeism and the well-being of our workforce; these employee benefits offered through employers are returning valuable time back into someone’s day, helping them focus on work and better balance work and life expectations.

Employees need HR’s help. By not offering a wide variety of benefits personalized to the workforce, employers are missing out on an opportunity to provide great value to employees and make a tremendously positive change in their lives. But many HR professionals falsely assume employees will ask for voluntary benefits directly and proactively make suggestions about what would help them. You may say, “My employees aren’t coming to me asking for things like elder care services, so they don’t need them.” My response is, of course, they’re not asking: they may not want you to know about challenges they’re facing in their personal lives.

Employee’s personal situations are just that - deeply personal. They may be suffering in silence. Americans are now facing the highest housing, education and medical costs in our history, meaning nearly everyone is stressed out about family, work and finances; it’s causing problems in the workplace. If their minds are somewhere else and not focused on work, their productivity could be suffering.

Open Enrollment is rapidly approaching. Don’t wait for your employees to ask you for benefits. Take advantage of OE to ask your employees what they’re looking for, as this is the time they’ll already be assessing what types of benefits they need in the coming year anyway. Use this time to survey the workforce to see what people do or don’t like about their benefits. Be sure to specifically ask “What can we offer you?”

It’s a question, and a gesture, that may matter more to employees than you know.

SOURCE: Oldham, J. (14 September 2018) "Give employees time back in an always-on working world" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/give-employees-time-back-in-an-always-on-working-world?feed=00000152-18a4-d58e-ad5a-99fc032b0000


Creating Better Employee Benefits With Advanced Analytics

Are your employees happy at work? It is important to provide a workplace, employee benefits and payment system that keep your employees happy. Read on to learn more.


Job satisfaction is the most important part of maintaining a happy workforce. If you have a workforce that feels like they could get a better deal elsewhere then they are likely to leave.

It is therefore important to provide a working environment, benefits and payment system, that keeps your employees happy without breaking the bank.

Analytics are being used to make sure that this is being done effectively, seeing where discontent is occurring and helping to suggest how this can be solved.

For instance, there are research companies that can use text analysis tools to analyze hundreds, if not thousands of survey entries that can give a holistic view of employee benefits. Often when survey results are being analyzed by an individual, it is difficult to gauge the overall feeling and there can be bias put on the results.

It also allows for HR to note the frequency of meetings with individuals as well as the frequency and size of any pay rises. If it is flagged that somebody hasn’t had a meeting with HR where they can directly communicate any concerns for a considerable amount of time, then tho scan be rectified.

Analytics can also be used to investigate which teams are happiest, have the highest retention rates or are the most profitable. This then allows companies to investigate in detail what is making these teams happiest or most productive, then create benefit packages to create similar results for other teams in the company.

Analytics and data have allowed companies to collect data to make their workforces happier and more content. This, in turn, creates situations where employees are eager to work and appreciative of the benefits they receive, improving ROI and increasing productivity.

SOURCE: Pannaman, E. (12 October 2018) "Creating Better Employee Benefits With Advanced Analytics" (Web Blog Post). Retrieved from https://channels.theinnovationenterprise.com/articles/202-creating-better-employee-benefits-with-advanced-analytics


When Companies Should Invest in Training Their Employees — and When They Shouldn’t

A recent industry report revealed that U.S. companies spent over $90 billion on employee training and development activities in 2017. Read this blog post to learn more.


According to one industry report, U.S. companies spent over $90 billion dollars on training and development activities in 2017, a year-over-year increase of 32.5 %. While many experts emphasize the importance and benefits of employee development — a more competitive workforce, increased employee retention, and higher employee engagement — critics point to a painful lack of results from these investments. Ultimately, there is truth in both perspectives. Training is useful at times but often fails, especially when it is used to address problems that it can’t actually solve.

Many well-intended leaders view training as a panacea to obvious learning opportunities or behavioral problems. For example, several months ago, a global financial services company asked me to design a workshop to help their employees be less bureaucratic and more entrepreneurial. Their goal was to train people to stop waiting around for their bosses’ approval, and instead, feel empowered to make decisions on their own. They hoped, as an outcome, decisions would be made faster. Though the company seemed eager to invest, a training program was not the right way to introduce the new behavior they wanted their employees to learn.

Training can be a powerful medium when there is proof that the root cause of the learning need is an undeveloped skill or a knowledge deficit. For those situations, a well-designed program with customized content, relevant case material, skill-building practice, and a final measurement of skill acquisition works great. But, in the case of this organization, a lack of skills had very little to do with their problem. After asking leaders in the organization why they felt the need for training, we discovered the root causes of their problem had more to do with:

  • Ineffective decision-making processes that failed to clarify which leaders and groups owned which decisions
  • Narrowly distributed authority, concentrated at the top of the organization
  • No measurable expectations that employees make decisions
  • No technologies to quickly move information to those who needed it to make decisions

Given these systemic issues, it’s unlikely a training program would have had a productive, or sustainable outcome. Worse, it could have backfired, making management look out of touch.

Learning is a consequence of thinking, not teaching. It happens when people reflect on and choose a new behavior. But if the work environment doesn’t support that behavior, a well-trained employee won’t make a difference. Here are three conditions needed to ensure a training solution sticks.

1. Internal systems support the newly desired behavior. Spotting unwanted behavior is certainly a clue that something needs to change. But the origins of that unwanted behavior may not be a lack of skill. Individual behaviors in an organization are influenced by many factors, like: how clearly managers establish, communicate, and stick to priorities, what the culture values and reinforces, how performance is measured and rewarded, or how many levels of hierarchy there are. These all play a role in shaping employee behaviors. In the case above, people weren’t behaving in a disempowered way because they didn’t know better. The company’s decision-making processes forbid them from behaving any other way. Multiple levels of approval were required for even tactical decisions. Access to basic information was limited to high-ranking managers. The culture reinforced asking permission for everything. Unless those issues were addressed, a workshop would prove useless.

2. There is commitment to change. Any thorough organizational assessment will not only define the skills employees need to develop, it will also reveal the conditions required to reinforce and sustain those skills once a training solution is implemented. Just because an organization recognizes the factors driving unwanted behavior, doesn’t mean they’re open to changing them. When I raised the obvious concerns with the organization above, I got the classic response, “Yes, yes, of course we know those issues aren’t helping, but we think if we can get the workshop going, we’ll build momentum and then get to those later.” This is usually code for, “It’s never going to happen.” If an organization isn’t willing to address the causes of a problem, a training will not yield its intended benefit.

3. The training solution directly serves strategic priorities. When an organization deploys a new strategy — like launching a new market or product — training can play a critical role in equipping people with the skills and knowledge they need to help that strategy succeed. But when a training initiative has no discernible purpose or end goal, the risk of failure is raised. For example, one of my clients rolled out a company-wide mindfulness workshop. When I asked a few employees what they thought, they said, “It was interesting. At least it got me two hours away from my cubicle.” When I asked the sponsoring executive to explain her thought process behind the training, she said, “Our employee engagement data indicated our people are feeling stressed and overworked, so I thought it would be a nice perk to help them focus and reduce tension.” But when I asked her what was causing the stress, her answer was less definitive: “I don’t really know, but most of the negative data came from Millennials and they complain about being overworked. Plus, they like this kind of stuff.” She believed her training solution had strategic relevance because it linked to a vital employee metric. But evaluations indicated that, though employees found the training “interesting,” it didn’t actually reduce their stress. There are a myriad of reasons why the workload could have been causing employees stress. Therefore, this manager’s energy would have been better directed at trying to determine those reasons in her specific department and addressing them accordingly — despite her good intentions.

If you are going to invest millions of dollars into company training, be confident it is addressing a strategic learning need. Further, be sure your organization can and will sustain new skills and knowledge by addressing the broader factors that may threaten their success. If you aren’t confident in these conditions, don’t spend the money.

SOURCE: Carucci, R. (29 October 2018). "When Companies Should Invest in Training Their Employees – and When They Shouldn’t" (Web Blog Post). Retrieved from https://hbr.org/2018/10/when-companies-should-invest-in-training-their-employees-and-when-they-shouldnt


Why employee performance management needs an HR tech overhaul

Are you still utilizing annual performance reviews at your organization? According to a recent survey by Adobe, 58 percent of people feel that performance reviews are no longer necessary. Read on to learn more.


According to a recent survey conducted by Adobe, 58% of people feel that performance reviews “are a needless HR requirement.” Adobe, in fact, no longer has an annual performance review process and instead has adopted an approach involving ongoing discussions between managers and employees that emphasize talent development and future productivity instead of formal ratings and rankings based on past performance.

Still, the vast majority of companies continue to persist with a backward-looking evaluation process that is time-consuming for managers, demotivating for employees and of negligible benefit to the business as a whole. They do this because, as Adobe’s survey respondents suspected, performance reviews are more about “compliance than customer service.”

Focusing on past performance is an industrial-era hangover from when employees were mainly required to hit targets in easily measurable, repetitive tasks. Although most people’s jobs have evolved to be more complex and creative since then, the process and the tools used to manage their efficacy and performance in those roles have not.

In many respects, HR is still a defensive function whose role is to protect the business from its own employees. This is reflected by HR technology that is built for compliance, rather than helping managers and employees become more productive.

HR’s on-premise or enterprise resource planning systems can track performance reviews to prove a dismissal was not unfair, rank employees to justify compensation distribution and demonstrate effective people management to the board or shareholders. What they can’t do is react positively to the ever-changing demands of the modern business world and help employees and managers meaningfully improve their skills to meet the challenges of tomorrow.

Performance management is changing — but HR tech is not

These days, a company’s and individual employee’s goals can change dramatically in the time between end-of-year reviews. Individual roles are more specialized and require frequent skill updates, while cross-functional teams have long since replaced the siloed departments that were standard just 10 years ago. In this environment, HR’s focus on past compliance is detrimental to future development.

Forward-thinking companies are changing the performance process to focus on development and continuous feedback that makes managers and employees more productive and engaged. The success of these trailblazers will encourage other businesses from a wide range of industries to follow suit.

This new model of performance management needs help from technology, but existing HR tech vendors are not keeping up. Their services are so embedded in the world of compliance, they cannot change to support the development needs of managers and employees. Fortunately, the solution already exists.

Creating a connected system of productivity

One of the key issues with performance reviews is that so much of the process involves looking back to gather the data. For managers, it is a huge time investment. For employees, end-of-year feedback about an issue that occurred months beforehand is too late to be useful.

The process seems doubly inefficient when you realize that real-time, instantly-actionable performance data is already available in productivity systems like JIRA and Salesforce that are used by different teams. The problem is HR’s defensive mindset has made it difficult to integrate existing internal or ERP systems with these tools.

For many employees, benefits enrollment can be tedious—sometimes even scary. They don’t want to make a mistake—and who can blame them?

Dedicated performance management services that connect to both HR systems and the departmental productivity tools can take HR technology out of its silo. This will create a connected system of productivity that uses real-time data alongside transparent and flexible goal-tracking to drive ongoing development conversations between managers and employees.

It’s time for HR to evolve from a defensive function to make a positive contribution to key business goals and become what HR analyst Josh Bersin calls the “chief of productivity.” This demands a shift from a performance review process based on compliance to a human-centered, development-focused experience.

Adopting new performance technology that integrates with widely-used productivity tools is a key step to ensuring everyone from employees to managers to HR can work on what matters most in order to meet today’s goals and tomorrow’s challenges.

SOURCE: Dennerline, D. (15 October 2018) "Why employee performance management needs an HR tech overhaul" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/why-employee-performance-management-needs-an-hr-tech-overhaul?brief=00000152-14a7-d1cc-a5fa-7cffccf00000


Shrinking Talent Pools Mean Shifting Hiring Strategies

Are you shifting your hiring strategies to accommodate shrinking talent pools? With a tight labor market, HR departments need to be prepared to win potential workers from company competitors. Read this blog post from UBA to learn more.


The labor market is tighter than ever, so people in hiring capacities need to be ready to win potential workers from competitors.

According to Fast Company, companies focused on hiring recent grads should be prepared to answer questions about flexibility, collaboration, professional development, how success is measured, and opportunities for giving back. A mindset shift from the challenges the tight market creates to the opportunities it provides to attract just the right talent may just help companies make needed innovations to their hiring practices and even company culture.

With full employment, staffing agencies have to get creative as the pool of qualified talent is limited. Add in changing visa and immigration laws and the pool is even smaller. Companies seeking talent are frustrated, and staffing agencies are working harder to appeal to the remaining talent. Workforce magazine traces one solution: investing in training programs. Helping candidates upskill can mean helping fill hard-to-fill roles with the same pool. Called a “build-your-own-talent” approach, staffing agencies report focusing training on skills proving harder to source with a promise of commitment to work for a company for a set amount of time.

This all helps explain why recruiting is now a major focus for the C-suite, according to HR Dive. For HR, this means ensuring everything from a positive, proactive hiring experience to showcasing a company as an employer of choice in recruitment, and also shifting strategies toward “total talent acquisition,” which means considering full-time employees as well as flexible, contingent, and project-based workers.

Shifting hiring and recruiting strategies will be hallmarks of this tight labor market, so finding ways to win, train, or retain talent will be what makes the difference for some employers.

Fast Company
These are the most common questions that college grads ask employers.

Workforce
Sector Report: Staffing Providers Opt For ‘Create Your Own Talent’

HR Dive
Study: Shrinking talent pool has recruiters shifting strategies

SOURCE: Olson, B. (16 October 2018) "Shrinking Talent Pools Mean Shifting Hiring Strategies" (Web Blog Post). Retrieved from https://blog.ubabenefits.com/shrinking-talent-pools-mean-shifting-hiring-strategies