DOL proposes rule on digital 401(k) disclosures

The Department of Labor (DOL) proposed a rule recently that is meant to encourage employers to issue retirement plan disclosures electronically. This rule would allow plan sponsors of 401(k)s and other defined-contribution plans to default participants with a valid email address to receive plan disclosures electronically. Read the following blog post to learn more.


The Department of Labor proposed a rule Tuesday that's meant to encourage more employers to issue retirement plan disclosures electronically to plan participants.

The rule would allow sponsors of 401(k)s and other defined-contribution plans to default participants with valid email addresses into receiving all their retirement plan disclosures — such as fee disclosure statements and summary plan descriptions — digitally instead of on paper, as has been the traditional route.

Participants can opt-out of e-delivery if they prefer paper notices. The proposed rule covers the roughly 700,000 retirement plans subject to the Employee Retirement Income Security Act of 1974.

"DOL rules have largely relied on a paper default," said Will Hansen, chief government affairs officer for the American Retirement Association. "Everything had to be paper, unless they opted into electronic default. This rule is changing the current standing."

Proponents of digital delivery believe it will save employers money and increase participants' retirement savings. The DOL also believes digital delivery will increase the effectiveness of the disclosures.

Plan sponsors are responsible for the costs associated with furnishing participant notices, and many small and large plans pass those costs on to plan participants, Mr. Hansen said. The DOL estimates its proposal will save retirement plans $2.4 billion over the next 10 years through the reduction of materials, printing and mailing costs for paper disclosures.

Opponents of digital delivery maintain that paper delivery should remain the default option. They have noted that participants are more likely to receive and open disclosures if they come by mail, and claim that print is a more readable medium for financial disclosures that helps participants better retain the information.

"We are reviewing the proposal carefully and look forward to providing comments to the Department of Labor, but we already know that in a world of information overload, many people prefer to get important financial information delivered on paper, not electronically," said Cristina Martin Firvida, vice president of financial security and consumer affairs at AARP. "The reality is missed emails, misplaced passwords and difficulties reading complex information on a screen mean that most people do not visit their retirement plan website on a regular basis."

President Donald J. Trump issued an executive order on August 2018 calling on the federal government to strengthen U.S. retirement security. In that order, Mr. Trump directed the Labor secretary to examine how the agency could improve the effectiveness of plan notices and disclosures and reduce their cost.

The DOL proposal, called Default Electronic Disclosure by Employee Pension Benefit Plans under ERISA, is structured as a safe harbor, which offers legal protections to employers that follow the guidelines laid out in the rule.

Retirement plans would satisfy their obligation by making the disclosure information available online and sending participants and beneficiaries a notice of internet availability of the disclosures. That notice must be sent each time a plan disclosure is posted to the website.

A digital default can't occur without first notifying participants by paper that disclosures will be sent electronically to the participant's email address.

The 30-day comment period on the proposal starts Wednesday. In addition, the DOL issued a request for information on other measures it could take to improve the effectiveness of ERISA disclosures.

SOURCE: Lacurci, G. (22 October 2019) "DOL proposes rule on digital 401(k) disclosures" (Web Blog Post). Retrieved from https://www.investmentnews.com/article/20191022/FREE/191029985/dol-proposes-rule-on-digital-401-k-disclosures


Putting Humanity into HR Compliance: 3 Steps to Active Listening

How many periods do your sentences end in compared to question marks? A common complaint from employees about HR professionals is that they don’t listen to employees. Read the following blog post from SHRM for three practices of active listening.


When I work with executives and managers, a common complaint I hear about HR professionals is "They don't listen. They just tell."

So when I work with HR professionals, I encourage them to adopt three practices of active listening:

  1. The period-to-question-mark ratio.
  2. The EAAR listening method.
  3. Confront, then question.

The Period-to-Question-Mark Ratio

When you're engaged in a conversation, what's the ratio of your sentences that end with periods to those that end with question marks? If you're like most people, the ratio is overwhelmingly tilted toward sentences that end with periods. This could show that you are telling people what to do more often than you are looking for consensus on how to solve a problem. When you engage in a discussion with an executive, manager or employee, keep the ratio in mind. Strive to correct the imbalance by making yourself ask questions. The fact that you ask matters more than what the question is.

People I've coached have found that keeping the ratio in mind acts as a self-regulating device to ask more questions.

The EAAR Listening Method

E: Explore

A: Acknowledge

A: Apply

R: Response

It's a sequence. Begin the discussion with an exploratory, open-ended question: "Ms. Manager, what are the reasons that led you to conclude Mr. Employee should be fired?" "Tell me more." "Please share some examples." "Help me understand."

Once you've explored the other person's position and reasons for it, move to acknowledgment. Get the person to acknowledge that you understand his or her point. "So, Ms. Manager, if I understand you correctly, you believe Mr. Employee should be terminated because of the following reasons… Is that correct?

Although critical, the acknowledge step is often overlooked. Instead of confirming the understanding, the listener makes an assumption, which often proves erroneous and leads to unnecessary conflict. The EAAR method eliminates this possibility. If the person says, "No, that's not my position," simply go back to the exploration step: "I'm sorry. Please explain what I missed."

In your response, apply portions of what the person said, even actual words the person used. Even if your response isn't substantively what the person originally sought, this approach creates optimal conditions for acceptance.

"Ms. Manager, I agree with you that Mr. Employee's behavior is unacceptable. What you described [list the employee's actions] makes a compelling case. However, because of the following reasons, I think termination now would be premature and present undue legal risk.

"Nevertheless, I'm happy to work with you on an intervention strategy. If Mr. Employee is willing and able to close the gap in your legitimate management expectations, he will do so. If not, we will be in a much stronger position to terminate his employment, and I will support you."

Many HR professionals have told me that when they've used the EAAR method, conversations they feared would turn ugly became positive. Instead of a clash of wills and arguments, the discussion became collaborative and solution-oriented.

Confront, Then Question

What if you are the bearer of bad news? You must deliver a message you know won't make the recipient happy.

The approach here is to confront, then question. Make a short opening statement. State your position succinctly and without elaboration. Next, switch to question mode.

You can think of this approach as beginning the EAAR method with a short opening response to frame the conversation.

"Mr. Executive, based on our investigation, we found that Mr. Employee in your department engaged in actions that violate our anti-harassment policy. Although we understand he has been with the company for a long time and is one of your best performers, given the seriousness of the misconduct, we believe the appropriate action is termination of his employment."

Next, go to question mode: "What do you think?" "What questions do you have?" "How do you see things at this point?"

Assuming the executive doesn't respond by saying "Great idea! Go for it!" and wants to argue his or her point, pivot to exploration and start the EAAR process at that point. "I want to make sure I understand you, so please tell me what you agree with, what you disagree with and your reasons."

After that comes your acknowledgment: "Let me make sure I understand you. You agree that Mr. Employee's behavior was unacceptable and violated policy. However, you disagree that the proper remedy is termination. Instead, you recommend a suspension and written warning for these reasons. [List the reasons.] Is that accurate?"

Now you're ready to apply. From what the executive said, extract what you can use in your response.

"I appreciate the fact that you support our investigation and finding of misconduct. Our only disagreement is the appropriate remedy. Your points about Mr. Employee's long service and stellar performance are valid. Yet for these reasons [list them], I still believe termination is called for. How do you suggest we resolve our differing views? For example, should we present them to the CEO and let her decide?"

These types of conversations can go in all sorts of directions, including ones you don't anticipate. That's OK, so long as you don't lose sight of the value of questions during a dispute.

Avoid cross-examination questions, such as "Isn't it true that … ?" Your questions should not state or imply your view. They should be curiosity-based, as you're genuinely trying to find out what the other person thinks.

The confront-then-question approach allows you to go directly to the heart of the matter. Even if you sense rising tension and hostility, the negative emotions will soon be arrested by your open-ended, exploratory questions.

When HR professionals make a commitment to active listening, executives, managers and employees become their biggest fans instead of being their biggest critics.

SOURCE: Janove, J. (9 October 2019) "Putting Humanity into HR Compliance: 3 Steps to Active Listening" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/putting-humanity-into-hr-compliance-active-listening-.aspx


How to Take your 2020 Benefit Change Rollout to the Next Level

Employers are faced with the challenge of how to engage employees each year during open enrollment. Instead of printouts and email campaigns, try a new communication method this year. Read this blog post for easy tips to try this open enrollment season.


With open enrollment right around the corner, employers are faced with the annual question: how are we going to get employees engaged, while helping them make the smartest benefit decisions for their individual situations?

This year, instead of plain old printouts and email, try a new method. Whether you are changing providers, introducing new features, or simply showcasing existing options, switching up your enrollment process can be easier and more enjoyable than you’d think. Give these quick and easy tips a try for a better time come January 1.

Have a Lunch & Learn

Who doesn’t love a lunch & learn? Free food and a little break from the status quo is a much-welcomed way to get on board with the changes 2020 will bring. Whether you are opting for an informative webinar or an in-person presentation, providing a free lunch is a great way to encourage employee participation while boosting team morale.

If you are hosting an in-person benefits presentation, be sure to have your information nicely (and concisely!) summarized. Having a paper takeaway or a digital follow-up is key, as sometimes open enrollment can be overwhelming. Many people prefer to have something they can reference at a later date to help make their decision, so be sure those materials are available.

Teamwork Makes the Dream Work

If it’s possible, why not get the whole team involved in asking questions and brainstorming? Benefit changes can be complex and confusing, and sometimes people feel too shy to ask questions during a formal presentation. Try breaking up into smaller groups and challenging each mini-team to answer ten questions related to open enrollment and benefits. The group that gets the most right answers wins a prize!

Design Your Rollout Mobile & Digital First

Mobile. It might seem like a no-brainer, but employees are going to be quicker to respond to changes if there’s an easy process that meets them where they are: their mobile devices. Reminding employees of a mobile registration option is a great way to capture high engagement rates. The key to a user-friendly registration is making it as turnkey as possible. If employees have to fish around for URLs, passwords, group numbers, et cetera, they are going to be less likely to complete these items in a timely fashion. Provide all the information you can upfront.

Add Social to Your Strategy. If you are not taking advantage of a social strategy such as Facebook, Slack, LinkedIn, Twitter, and more, the time is now! Digital quizzes, surveys, and chat channels can work wonders for engaging your employees during the open enrollment process while facilitating knowledge sharing. Why not create an internal Facebook group or Slack channel where your team can ask questions and exchange information? The outcome of benefits decisions usually lasts all year, so it’s important for people to have their questions answered in a casual, user-friendly environment. A big benefit for your HR team is that a digital-first strategy will cut down on “random question” drop-ins and interruptions at your office. Send everyone to one place in the digital space!

SOURCE: Olson, B. (15 October 2019) "How to Take your 2020 Benefit Change Rollout to the Next Level" (Web Blog Post). Retrieved fromhttp://blog.ubabenefits.com/how-to-take-your-2020-benefit-change-rollout-to-the-next-level


What would change if your employees were CEO for a day?

New data from Salesforce shows that employees are 4.6 times more likely to contribute their best work when they feel like their voices are being heard. Read the following blog post from Employee Benefits News to learn more about building a strong workplace culture.


When employees feel like their voices are being heard, they are reportedly 4.6 times more likely to contribute their best work, according to SalesForce data. Ultimately, knowing that the company is interested in what employees have to say builds trust and encourages loyalty among members of the workforce.

Respect is the most important leadership behavior, according to a Georgetown University survey of nearly 20,000 employees. More than merely listening, making employees a part of a two-way conversation shows that the company values their opinions.

With this in mind, we set out to develop a process to help Nearmap increase workplace communication. Along the way, we found that creating opportunities for interaction, encouraging honest participation and involving executive participation were all keys to building a stronger corporate culture.

Invite employee interaction

We recognized that we needed a conversation starter to open the lines of communication and spark a little enthusiasm. We discovered that engagement surveys work the best for our circumstances because they’re quick and easy to take, which results in high completion rates.

We like to include thought-provoking questions like “if you were CEO for a day, what is the one thing you would change?” to keep the employees engaged. At first, that particular question provided some of our most entertaining suggestions, including “free umbrellas for all,” “I would like the CEO’s paycheck,” “change my LinkedIn profile,” and “put margarita slushy machines in the kitchen.” When employees saw that the CEO responded to every answer, they realized that we were taking the feedback seriously, and that changed the tone of their responses.

Anonymity invites honest responses

It was essential to Nearmap that we collect unfiltered, honest feedback from our employees. This meant reassuring participants that their responses were completely anonymous. We believe this confidentiality encouraged authentic and candid submissions from employees that otherwise would have remained silent for fear of reprimand or judgment.

For instance, we’ve received excellent insights about driving the strategy and growth of the business, giving Nearmap valuable concepts that we’ve been able to embed into the business.

In addition, we present the survey results back to the employees so they can see how their thoughts align with those of their co-workers. We believe this commitment to being open is an excellent way to motivate honest dialog.

Executive participation leads by example

When the survey concludes, we group all of the responses under different headings, such as collaboration and communication, marketing, mission, planning, product, compensation, recognition, and general. Then, our CEO, Rob Newman, gets together with other executives to provide answers and comments on many of the submissions. In turn, those responses are shared with the employees via the HR newsletter and on our company collaboration app.

In reply to an inquiry about creating a green initiative for the company, our CEO shared a list of active programs that Nearmap was involved in to reduce not only our carbon footprint but also that of our customers as well.

While we may not know what we would change if we were the CEO for a day, we are convinced that employee interaction, honest responses and executive participation are reliable and important ways to make impactful connections with our employees and build a stronger corporate culture in our company.

SOURCE: Steel, S. (13 September 2019) "What would change if your employees were CEO for a day?" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-would-change-if-your-employees-were-ceo-for-a-day


Putting Humanity into HR Compliance: Stop Tolerating Toxicity

Toxic workplace relationships impact not only the employee and their well-being but also organizational success and the well-being of employees' family members. HR departments who have a detox mission and address toxic workplace relationships can prove incredibly valuable to their organizations. Read this blog post to learn more.


In my prior career as an employment attorney and in my current one as an organizational consultant and coach, I have encountered numerous toxic workplace relationships. The cost of these relationships—to organizational success, employee well-being and the well-being of employees' family members—is astronomical.

And the greatest tragedy is this: Almost all of this loss, pain and suffering is preventable.

Why are toxic workplace relationships so common? And why are they tolerated?

The answer to the first question is that good people make bad decisions. Typically, employee relationships start out fine. Employees cooperate and collaborate in their relationships with their bosses and peers.

But then something goes awry. A trust gap opens. The employee does not address the problem promptly, directly and constructively, but the employees' avoidance instinct kicks in. Nothing constructive is done to close the trust gap. As a result, the problem festers and grows. Eventually, any remaining trust evaporates, and the relationship degenerates into aggression, passive aggression or both.

Note that I'm not talking about the incorrigible "work jerk," whose behavior should never be tolerated. Rather, I'm talking about people stuck in toxic work relationships producing jerkish and other negative behavior.

Managers and HR practitioners succumb to the avoidance instinct, too. Although aware of the toxicity, they don't intervene and are wary of wading into others' dysfunctional relationships.

What are the costs of tolerating toxicity?

  • Personal suffering. The immediate parties may think they have nothing in common, but they do: They're equally disengaged and miserable.
  • Work loss. Toxic relationships do nothing to improve the quantity or quality of work, customer service or on-the-job innovation. There is increased absenteeism and what Colleen McManus, SHRM-SCP, an HR executive with the state of Arizona, calls "presenteeism," in which people are at work but not focused on work, dwelling on negativity instead of doing their jobs properly.
  • Secondhand anxiety. Co-workers who witness the toxic behavior suffer, as does their contribution to the organization. They are the truly innocent victims.
  • Collateral damage. Employees affected by workplace toxicity typically bring their stress home. This doesn't reduce their stress; rather, it elevates their loved ones' stress. "So true! In the most serious situations," McManus said, "I have seen greater instances of alcoholism and domestic violence due to problems at work."

How HR Can Help

HR departments with a detox mission can prove incredibly valuable to their organizations and the people in them. It's not hard to identify toxic relationships. The challenge is taking action.

I can say with confidence that intervention is always better than tolerating toxicity. You'd be surprised how easily many toxic relationships can be reset when a skilled third party steps in. HR professionals are ideally positioned to help employees stuck in toxic relationships get back on track. Or, if there's too much baggage, HR professionals can facilitate a respectful relocation of the parties to different positions in the organization. This method is a good way to start.

Many times, a toxic relationship is rooted in an unwitting and unaddressed offense one employee gave the other. As a result, the offended party started behaving differently toward the offender, which produced more offensive behavior, and so on. "I'm always surprised," McManus said, "when I ask the parties to the conflict what a resolution looks like. Often, it's simply an opportunity to be heard."

She adds that a sincere apology goes a long way toward rebuilding trust. "They feel validated, which is important to them."

Sometimes there's a structural misfit in the workers' roles that needs to be clarified, or how the jobs interact needs to be modified. HR can help figure out how the jobs can function without recurrent friction. "This is our profession's bread and butter!" McManus said.

There may be a personality conflict, in which case the parties need better understanding of how to interact with people whose styles differ from theirs. If that can't be achieved, though, there can be an agreement to disagree and respectfully move on—whether to a different position inside or outside the organization.

An HR team that makes a commitment to identify and resolve toxic relationships is empowered by the CEO, and is supported by the leadership team will prove to be incredibly valuable to its organization and the people in it. HR team members can directly coach others to resolve conflicts and show managers how to coach their employees who are stuck in toxic relationships.

There's also a risk management, compliance and claim-prevention component. In my employment lawyer days, most of my billable hours arose from conflict caused by toxic workplace relationships. An HR profession with a detox mission will become painfully costly to my former profession.

SOURCE: Janove, J. (Sept 06, 2019) "Putting Humanity into HR Compliance: Stop Tolerating Toxicity" (Web Blog Post) Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/putting-humanity-into-hr-compliance-stop-tolerating-toxicity-.aspx

The answer to the first question is that good people make bad decisions. Typically, employee relationships start out fine. Employees cooperate and collaborate in their relationships with their bosses and peers.

But then something goes awry. A trust gap opens. The employee does not address the problem promptly, directly and constructively, but the employees' avoidance instinct kicks in. Nothing constructive is done to close the trust gap. As a result, the problem festers and grows. Eventually, any remaining trust evaporates, and the relationship degenerates into aggression, passive aggression or both.

Note that I'm not talking about the incorrigible "work jerk," whose behavior should never be tolerated. Rather, I'm talking about people stuck in toxic work relationships producing jerkish and other negative behavior.

Managers and HR practitioners succumb to the avoidance instinct, too. Although aware of the toxicity, they don't intervene and are wary of wading into others' dysfunctional relationships.

What are the costs of tolerating toxicity?

  • Personal suffering. The immediate parties may think they have nothing in common, but they do: They're equally disengaged and miserable.
  • Work loss. Toxic relationships do nothing to improve the quantity or quality of work, customer service or on-the-job innovation. There is increased absenteeism and what Colleen McManus, SHRM-SCP, an HR executive with the state of Arizona, calls "presenteeism," in which people are at work but not focused on work, dwelling on negativity instead of doing their jobs properly.
  • Secondhand anxiety. Co-workers who witness the toxic behavior suffer, as does their contribution to the organization. They are the truly innocent victims.
  • Collateral damage. Employees affected by workplace toxicity typically bring their stress home. This doesn't reduce their stress; rather, it elevates their loved ones' stress. "So true! In the most serious situations," McManus said, "I have seen greater instances of alcoholism and domestic violence due to problems at work."

How HR Can Help

HR departments with a detox mission can prove incredibly valuable to their organizations and the people in them. It's not hard to identify toxic relationships. The challenge is taking action.

I can say with confidence that intervention is always better than tolerating toxicity. You'd be surprised how easily many toxic relationships can be reset when a skilled third party steps in. HR professionals are ideally positioned to help employees stuck in toxic relationships get back on track. Or, if there's too much baggage, HR professionals can facilitate a respectful relocation of the parties to different positions in the organization. This method is a good way to start.

Many times, a toxic relationship is rooted in an unwitting and unaddressed offense one employee gave the other. As a result, the offended party started behaving differently toward the offender, which produced more offensive behavior, and so on. "I'm always surprised," McManus said, "when I ask the parties to the conflict what a resolution looks like. Often, it's simply an opportunity to be heard."

She adds that a sincere apology goes a long way toward rebuilding trust. "They feel validated, which is important to them."

Sometimes there's a structural misfit in the workers' roles that needs to be clarified, or how the jobs interact needs to be modified. HR can help figure out how the jobs can function without recurrent friction. "This is our profession's bread and butter!" McManus said.

There may be a personality conflict, in which case the parties need better understanding of how to interact with people whose styles differ from theirs. If that can't be achieved, though, there can be an agreement to disagree and respectfully move on—whether to a different position inside or outside the organization.

An HR team that makes a commitment to identify and resolve toxic relationships is empowered by the CEO, and is supported by the leadership team will prove to be incredibly valuable to its organization and the people in it. HR team members can directly coach others to resolve conflicts and show managers how to coach their employees who are stuck in toxic relationships.

There's also a risk management, compliance and claim-prevention component. In my employment lawyer days, most of my billable hours arose from conflict caused by toxic workplace relationships. An HR profession with a detox mission will become painfully costly to my former profession.

SOURCE: Janove, J. (Sept 06, 2019) "Putting Humanity into HR Compliance: Stop Tolerating Toxicity" (Web Blog Post) Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/putting-humanity-into-hr-compliance-stop-tolerating-toxicity-.aspx


Turnover Contagion: Are Your Employees Vulnerable?

Being positive in the workplace is more important than you may realize. With employee retention top-of-mind for organizations wanting to stay competitive in today's market, employers need to find ways to ensure employees are engaged. One way employers can decrease turnover rates is by using the infectious qualities of emotions to spread feelings of happiness. Read this blog post to learn more.


Employee retention is top-of-mind for any organization looking to stay competitive in today’s market. Despite swaths of technological advances, in our knowledge-based, global economy an organization’s key assets are still its employees. Considering this, substantial amounts of research have been published about potential predictors and causes of employee turnover. Most of this research can be classified into two categories: individual-level explanations (e.g., job satisfaction, person-job fit, etc.) or external and organizational-level explanations (e.g., unemployment rates, job demand, etc.). However, only having these two types of explanations ignores team-level and the inherent social aspects of turnover. Specifically, do the behaviors and attitudes of coworker's influence employee’s intentions to quit their jobs?

Quitting is infectious.

People regularly “catch” the feelings of those they work with, particularly in group settings. We’ve all been around someone at work whose sour mood set the tone for the day; their negative emotions dampened the mood of everyone else around them. Employee mood isn’t all that is affected. Surprisingly, the emotions of others influence judgment and business decisions – and this all typically happens without anyone realizing.

In a study on the spread of emotions, groups were created to judge how to best allocate funds in hiring decisions. A confederate (actor) was planted in each group and instructed to display one of four emotions: cheerful enthusiasm, serene warmth, hostile irritability, or depressed sluggishness. Not only did the emotions of the confederates spread to each member of the group but each group’s resulting judgments and behaviors were affected. In groups with a pleasant confederate, members displayed more cooperation, less conflict, and allocated funds more equitably than in groups with unpleasant confederate emotions.

In a related study, researchers looked into the contagion of social contexts on job behaviors. As it turns out, evidence suggests an employee’s decisions to voluntarily leave an organization is influenced by the attitudes and behaviors of their coworkers. They found evidence suggesting job embeddedness (how well employees feel they fit in with their job and the community) and job search behaviors of coworkers predict individual voluntary turnover. An employee’s job embeddedness is the relative strength of their organizational network; weaker bonds or links are easier to break. That is, if a coworker is low on organizational connection (e.g., fewer and weaker relationships with other organizational members) or engages in noticeable job-seeking behaviors (e.g., talking about an application or interview, expressing a desire to leave, quitting, etc.) their colleagues are more likely to choose to exit the organization. As can be imagined, this relationship is amplified when a coworker has both low job embeddedness and visible job-searching behaviors.

People leave organizations all the time. There are several reasons why employees decide to leave organizations - whether it be for personal (relocation of family member), professional (more pay, promotion, career change), or organizational (job or organization redesign). In fact, healthy businesses want some amount of turnover. However, in the case of turnover contagion, your employees are leaving simply because their colleagues are leaving. When a group of employees leave an organization in rapid cycle, it may be due to the influence of their immediate peer group and this should be cause for concern as turnover contagion is likely occurring.

The interplay of social contexts within an organization along with individual and organizational-level predictors adds more to our understanding of the complexity of employee turnover decisions. This is just one piece of the pie – and an important one. Understandably, more research needs to be conducted until just how this phenomenon works is understood, however, based on the evidence, organizations and leaders shouldn’t wait to act.

For one, it’s a tight labor market and has been for some time now. Overall, many employees are looking and leaving. There has been a cultural shift among workers where they feel increasingly less loyalty than before and are even more likely to job hop. To add to this, unemployment is at an all-time low and job growth is climbing. Meaning there are more open jobs than there are workers to fill them. It’s an applicant’s market. These factors, coupled with the sheer cost of replacing skilled employees – speculated to be a whopping 1.5 to 2 times an employee’s salary – should give pause to leaders when they suspect employees have caught the turnover bug.

On the bright side, turnover contagion can be minimized, and companies stand to reap plenty of rewards through emotional contagion. Just like negative emotions create a spiral of negativity, so too can emotions with a more positive valence. For example, leaders can use the infectious qualities of emotions to spread feelings of happiness by expressing gratitude or complimenting someone. In addition, increasing job embeddedness and strengthen the bonds your employees have by building more connection with their team, leaders, and other departments can go a long way to reducing turnover.

SOURCE: Ford, A. (13 August 2019)"Turnover Contagion: Are Your Employees Vulnerable?"(Web Blog Post). Retrieved from https://blog.shrm.org/blog/turnover-contagion-are-your-employees-vulnerable

 


Creating High-Performance Teams

Having a high-performance team is essential in creating strong work environments. Can having a plan for more than the hiring process help both future employees and current? Read this blog post from SHRM to learn more about creating high-performance teams at your organization.


Every organization needs its teams to deliver a high level of performance to succeed in today’s business environment. Author Omar L. Harris offers clear guidance on how to hire for, support, and guide high-performance teams.

What are some tips to hiring employees to fit into high-performing teams? 

My top tip for hiring employees to fit into high-performing teams is to understand the key mix of attributes that the high-performing team members possess. Look beyond IQ and pedigree and focus on more attitudinal attributes such as work ethic, passion, solution-orientation, and the maturity to productively manage disappointment and conflict.

What are the stages of forming a high-performance team? 

The stages are:

  • hiring the right W.H.O.M. (work ethic, heart, optimism, maturity),
  • effectively onboarding each team member by getting to know them on a deeper level,
  • helping them accelerate their learning curve,
  • setting clear expectations of their roles,
  • building trust between the team members by encouraging vulnerability and open dialogue, and
  • crafting a clear mission with superordinate goals that bring the team together to achieve something that no one could achieve on their own.

What are the hallmarks of a high-performing team? 

One hallmark of a high-performing team is a level of professional intimacy among the team members, meaning they know each other well both as professionals and as people and enjoy working together. A level of transparency and passion for the work being done that leads to productive conflicts resulting in better decision-making. An adherence to norms that define how every member works together. And an absolute focus on delivering results. The characteristics that make this happen are simply people who work hard, have shared passion, search for solutions with a sense of urgency, and have the maturity to overcome inevitable conflicts and disappointments.

How can senior leadership create a culture of strong teams? 

Focus on creating a team of managers who love achieving results by putting their people in their strengths zones and developing their capacity and talents.

Do high-performance teams vary across companies, industries, or geographies? 

I've had the opportunity to lead teams across the world in the U.S., Middle East, Asia, and Latin America, and people are the same all around the world. People want to be valued. They want to believe in the mission of their organization. They want to have opportunities to develop. So leaders who want to create high-performance teams anywhere in the world need to be able to tap into these commonalities and work tirelessly to create the condition for the success of their people.

How can leaders help struggling teams? 

First understand the source of the struggle. Most issues occur during the team formation and team storming stages. And then level-up their own leadership skills to respond to the challenges of the moment. The best advice I can give is to look to deepen the understanding and connection with each member of the team and by improving each members focus and alignment, you improve the team dynamic by default. Lastly, recognize if the ingredients are off and make the necessary decisions to move poisonous people out of the environment.

What are other things to remember about managing high-performance teams? 

Performance is relative and the goal posts must be continually stretched to keep everyone engaged. Also, plan for succession so as people on the team achieve results and receive greater opportunities, the next generation of team members are ready to step up and continue on the mission.

SOURCE: Harris, O. (15 August, 2019) "Creating High-Performance Teams"(Web Blog Post). Retrieved from https://blog.shrm.org/blog/creating-high-performance-teams

Here’s how to ensure employees know how to pick the right benefits

Open enrollment is often a stressful time for employees, as well as an important one. Recent research shows that the average employee spends less than 30 minutes selecting their benefits. Continue reading for more on communicating benefit options to employees.


Annual enrollment is an important time for employees — but it’s also a stressful one. The choices they make can affect their financial health, yet the average employee spends less than 30 minutes selecting their benefits, according to research from benefits provider Unum.

With annual enrollment planning underway, now is the time for employers to ask themselves, “How can we help employees make the right benefits decisions?” The answers may be more valuable than they think.

See Also: Avoiding Communication Overload During Open Enrollment

Today’s workforce is the most diverse in history, with four generations actively working, and a fifth connected through benefits and pensions. A robust benefits package is increasingly important for recruitment and retention, challenging employers to provide choices and options that support diverse needs.

About 80% of employees prefer a job with benefits over one with a higher salary but no benefits, according to the American Institute of CPAs. As such it’s vital that employers ensure their workforce is engaged with their benefits and taking full advantage of what is available. Here are five ways employers can make sure that happens.

See Also: Incorporating Incentives to Create Educated Benefit Consumers

1. Acknowledge that decision support addresses personalized needs. Tools that demystify the benefits selection process can help employees make choices that align with their risk tolerance, financial circumstances and unique needs. The best tools lead employees to a recommended suite of benefits options that fit their individual physical, emotional and financial health.

2. Know that year-round engagement improves benefits literacy. While employees appreciate benefits, they aren’t experts. Indeed, roughly one-third of employees are outright confused about their benefits, according to recent data from Businessolver. Keeping up a cadence of communication about benefits throughout the year can help address this challenge.

3. Recognize the power of a total rewards statement. It empowers employees to maximize the benefits available to them, and these tools can be accessed at any time, not just during enrollment. The most impactful solutions aggregate all employee benefits options in one integrated offering that demonstrates the full value of compensation and benefits investments made by them and their employer.

See Also: Communicating the Value of Employee Benefits

4. Think about different generations. Customizable benefits options are a crucial step in meeting the needs of today’s workforce. For example, our latest data shows that nearly two-thirds of millennials are concerned with managing their monthly budget, while over 50% of boomers are most worried about a large, unexpected cost. Having core medical plan offerings along with complementary voluntary options helps employees address varying financial needs. Likewise, paid parental leave and different health plan options assist families at any stage, and they make it likelier that your employees will engage with their benefits and remain with your organization.

5. Be sure employees know that savings vehicles contribute to financial well-being. Employees of all ages and income levels are facing financial stressors — but they may not be the same ones. Offering different financial benefits, such as student loan assistance and emergency savings accounts, in addition to retirement benefits, enables your employees to address both their immediate and long-term financial needs.

See Also: Ideas for Effectively Demonstrating Plan Choices

More than ever, employers have a responsibility to help employees make informed decisions when it comes to selecting the right benefits. Otherwise, they risk losing top talent to organizations that are better implementing benefits strategies and technologies.

By meeting the needs of a diverse workforce with an array of benefits options supported by appropriate decision support resources, employers can ensure they’re meeting their workforce’s needs and retaining valuable employees.

See Also: Ideas to Help Employees Find their "Best Fit" Plan

SOURCE: Shanahan, R. (26 June 2019) "Here’s how to ensure employees know how to pick the right benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/educating-employees-to-pick-the-right-benefits


4 benefits messages to send employees in May

With tax season over, and summer right around the corner, now is a great time to beef up communications about certain employee benefits. Read on for four benefits messages employers should send their employees this May.


With tax season behind us, summer right around the corner and the second half of the year coming up, now is a great time of year for employers to beef up communications about certain benefits.

That’s because there are a number of important messages that are specific to this time of year, including saving money for summer vacations and putting more money into a health savings account so employees can plan for healthcare expenses for the remainder of the year.

Here are four messages employers should share with their employers this month.

1. Think about putting more money in your HSA.

May is a great time for your employees to take stock of their healthcare costs from January to April, and plan ahead for the second half of the year. Here’s a breakdown you can send to help them save money and have more cash available through December to pay their bills.

  1. Add up this year’s out-of-pocket health care costs thus far.
  2. Make a new estimate of your upcoming expenses (padding that estimate for unexpected expenses that may pop up.).
  3. Add your estimated costs to what you’ve already spent.
  4. Compare that total with how much you’ll have in your HSA account at the end of the year as it is now.
  5. If there’s a gap, you can increase your contribution rate now to make up the difference.

2. Adjust your W-4s.

Tax season has passed, which means it’s an excellent time to…think a little more about taxes.

The tax law changes that went into effect at the start of 2018 might have made your employees’ existing W-4s less accurate. If they didn’t update their withholding amount last year, they might have been surprised by a smaller refund, a balance due, or even by a penalty owed — and chances are, they don’t feel too happy about it.

Let your employees know that they can prevent unexpected surprises like this next tax season with a visit to this IRS tax withholding calculator. There, they can estimate their 2019 taxes and get instructions on how to update their W-4 withholdings to try and avoid any surprises next year. If they can update their W-4 online, send them the link along with clear step-by-step instructions. And if they need to fill out a paper form, explain where to find it and how to submit it.

3. Revisit your budgeting tools.

Summer is almost here, and your employees are likely starting to think about hitting the beach, road-tripping across the country or eating their weight in ice cream. Since having fun costs money, May is a good time to serve up some ideas on how to squirrel away a little extra cash in the next few months.

Employers should share tips for saving money on benefits-related expenses, like encouraging high-deductible health plan employees to use sites like GoodRx.com for cheaper prescription costs, or visiting urgent care instead of the emergency room for non-life-threatening issues. Also, consider making employees aware of apps like Acorns, Robinhood, Stash, Digits and Tally, which round up credit or bank card expenses to the next dollar, and automatically deposit the extra money into different types of savings accounts.

4. Double-check out-of-network coverage.

While you’re on the subject of summer fun, remind your employees to take a quick peek at their health plan’s out-of-network care policies before they head out of town. If they need a doctor (or ice cream headache cure) while they’re away, they’ll know where to go, how to pay, and how to get reimbursed.

Employers should remind employees that their HSA funds never expire, and they’re theirs for life. So if they put in more than they need this year, it will be there for them next year.

SOURCE: Calvin, H. (1 May 2019) "4 benefits messages to send employees in May" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/4-benefits-messages-to-send-employees-in-may


4 Simple Reasons Why Texting Can Lead to Better Hires

If your recruiters are continually getting "ghosted" by job candidates, it may have something to do with their communication method. Continue reading this blog post for four reasons texting can lead to better hires.


It’s no secret that recruiters spend the majority of their time researching to find the right candidates for the right job, and even more time reaching out to talk to these potential candidates. So it’s natural that they become frustrated when candidates ignore communications like emails and LinkedIn InMail messages from recruiters. While these communication methods can work for some, they definitely aren’t preferred for all — especially these days.

With people busier than ever before, especially passive millennial candidates, recruiters are seeing more and more recruits “ghosting” them. If you are continually getting no responses to your outreach, it likely has something to do with the other 100-plus emails that are hitting candidates’ inboxes every day. Reaching out via SMS (text messaging) can help you break through the noise and make it easy for potential candidates to take the next step.

Here are four simple ways to use text messages to make better hires:

Texting is quicker

In a highly competitive market, speed matters more than ever. How quickly you can secure the talent you need impacts how quickly your business is moving forward. Seventy-three percent of U.S. millennials and Gen Zers interact with each other digitally more than they do in real life. If you want a fast answer, texting is the way to go.

Scheduling via text is also quicker

Nothing good ever comes from never-ending email chains, especially when the topic is as dull as “Are you available Wednesday morning between 9 am and 11 am?” Sending your candidate a link to your favorite scheduling client via SMS puts an end to group-email fatigue and gets the interview on the books in a matter of minutes.

Don’t forget reminders

There’s nothing worse than a candidate showing up late or missing an interview.
A quick text message is a perfect way to give your candidates a quick heads-up, give them an extra tip, a quick pat on the back and send them in ready to win. No one likes tardiness and no-shows. A quick reminder ensures everyone’s on the same page.

Accelerate the hiring process

Text messages make the candidate experience way more enjoyable by simply shortening the hiring process. Hiring typically involves emails, scheduling, and so much admin. A great SMS can make hiring human again, not to mention faster. By communicating directly with someone at a time that works best for them, especially in a way that they’re much more likely to respond quickly, it will help shorten the overall hiring timeline.
When used alongside other awesome tools, such as a chatbot, text messaging could even help qualify leads more quickly and immediately put you in touch with the best candidates.

The bottom line: utilizing text for recruiting can help you revitalize your talent pipeline and create a more engaging candidate experience.

SOURCE: Bounds, D. (25 April 2019) "4 Simple Reasons Why Texting Can Lead to Better Hires" (Web Blog Post). Retrieved from http://hrexecutive.com/4-simple-reasons-why-texting-can-lead-to-better-hires/