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  • 09 Dec 2020 8:06 AM | Bill Brewer (Administrator)

    The benefit is now available to all the company’s 5,700 US employees. Pic: Danone North America

    By Jim Cornall | 03-Dec-2020 - Last updated on 03-Dec-2020 at 09:40 GMT


    Danone North America, the world’s largest Certified B Corp, has announced it is expanding its gender-neutral Parental Bonding Leave policy to its manufacturing employees, enabling them to take up to 18 weeks’ paid time off after the birth or adoption of their child.

    The benefit is now available to all the company’s 5,700 US employees, whether they work in an office or in one of Danone’s 14 manufacturing facilities across the country.

    The policy – effective company-wide immediately – is an evolution of the company’s previous practice of providing its frontline manufacturing employees up to two weeks of paid leave in addition to allowing the use of paid time off or vacation for such absences. The policy, which can be taken anytime within the first year of a child’s birth or adoption date, is applicable to either parent, which the company said recognizes parenting can be a shared responsibility between caregivers.

    “At Danone, family is important to us. We understand how special – and also how challenging – welcoming a new child into the world can be. That’s why we are proud to support all our Danone parents, of all genders, in our factories and our offices, as they bond with their newest family member,”​ said Shane Grant, CEO at Danone North America.

    “Our hope is that we will inspire others and help advance parental leave equity outside our walls, as well.”​

    Across the US, Danone North America partners with the International Union of Food (IUF), the United Food and Commercial Workers International Union (UFCW), the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union (BCTGM) and the Teamsters.

    “Danone’s family-first approach to supporting its teams sets it apart from so many of its peers in the industry. We believe an offering like this provides a huge value not only to its employees but has equally significant impacts for families and the communities where Danone operates,” ​said Mark Lauritsen, international vice president at UFCW.

    According to the National Partnership for Women and Families, only 9% of US companies offer paid paternity leave to male employees. And, while many manufacturing companies have begun to expand their paid parental leave in recent years, policies continue to differentiate between primary and secondary caregivers, which Danone said reinforces traditional family roles even while American family dynamics and needs evolve.

    Recent research from the Council on Contemporary Families also shows an 11% rise in equal responsibilities shared between mothers and fathers since the onset of the covid-19 pandemic, indicating a larger social change that Danone intends to support. In fact, encouraging gender-neutral policy that helps dads engage more and earlier in their children’s lives has broader and longer-term benefits, too; just one of which is that it impacts women’s income and consequently, their families’ financial security. Research from Sweden shows each additional month of parental leave taken by a father increases the mother’s wages by nearly 7%.

    Danone’s new policy is in line with the global commitment the company made in 2017 as part of the UN Women’s HeForShe initiative to become one of the leading parent-friendly companies in the world, through the implementation of a global gender-neutral paid parental leave policy.

    In addition, the company said its commitment to inclusive diversity includes creating an environment in which all employees feel a sense of belonging and support. Ensuring its manufacturing teams can care for their families while also maintaining employment security is a critical part of this commitment. For employees expanding their families through adoption, the company provides adoption assistance up to $6,000 and it further supports a more inclusive economy by providing a living wage to all its colleagues.

    Within its communities, Danone has long partnered with the Women, Infants, and Children (WIC) Program through product donations and policy improvements to allow for more families to access the program.

    Recently, the company also signed the Pregnant Workers Fairness Act, to provide accommodations for pregnant women to minimize risk to their pregnancies at work.

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    Source: Dairy Reporter

    https://www.dairyreporter.com/Article/2020/12/03/Danone-expands-parental-leave-in-US

  • 02 Dec 2020 5:25 PM | Bill Brewer (Administrator)

    Willis Towers Watson on Twitter: "Take 20 minutes and stop thinking about 2020. How will you approach work and #rewards in 2021? #benefits https://t.co/M20NFz6jYR… https://t.co/Eqazn7j214"

    Highlights of key findings, North America

    November 19, 2020

    Supporting flexible work in a pandemic-altered workplace is key to delivering impactful Total Rewards and capturing business value.

    About the survey respondents

    Research findings are based on responses from 344 organizations in North America employing 4.83 million employees. The survey fielded between October 6 and 21, 2020.

    This image shows the respondent by industry: 10% energy and utilities, 14% financial services, 9% general services, 15% health care, 13% IT and telecom, 25% manufacturing, 6% public sector and education, 9% wholesale and retail.

    Respondents by industry

    Respondent profile:
    • 52% domestic
    • 17% international
    • 32% global

    Overview


    Employers pivot to flexible work arrangements and rethink approaches to Total Rewards

    In the face of the uncertainties wrought by the pandemic, employers responded by embracing workplace flexibility and prioritizing organizational resilience and agility. Our Flexible Work and Rewards Survey: 2021 Design and Budget Priorities, which fielded between October 6 and 21, 2020, takes a close-up look at the current and expected future state of flexible work arrangements as well as the implications for rewards and benefit programs.

    Respondents to the survey indicate about six in 10 workers (59%) are currently telecommuting/working from home, and they expect over half of their workers (52%) to be doing so through the first quarter of 2021. Yet despite this significant pivot to flexible work arrangements, over one-third (37%) of organizations do not have a formal policy to manage these arrangements, and a quarter (25%) have just put such a policy in place this year.

    While safety concerns will remain the primary reason for offering alternative work arrangements into the first quarter of 2021, an increasing number of employers also expect to enhance employee retention, engagement and productivity through these arrangements.

    Additionally, alternative work arrangements are prompting employers to rethink their approach to Total Rewards. Roughly half of employers (49%) indicate that the new work requirements necessitate a hybrid reward model, which for some organizations may include paying employees based on where they are located geographically.

    Most organizations do not expect flexible work policies to substantially affect pay and benefit budgets over the next three years; however, over half of employers (57%) expect reductions in real estate expenses, and over a third (36%) anticipate a decrease in commuting expenses during this period. While some of these savings will be offset by increases in subsidies around items such as computer equipment and wireless devices, organizations have an opportunity to reinvest these savings in reward and benefit programs to help meet employees where they are.

    The ability to shape a flexible workplace that meets the needs of their employees will help organizations persevere and prosper in an evolving, pandemic-altered world of work.

    “As companies continue to evaluate the cost benefits of alternative work arrangements, many indicate that the workplace changes as a result of the pandemic are here to stay. Employers that are able to create and manage a flexible workplace through automation and adaptable policies while reinforcing an enhanced employee experience will not only meet the needs of their employees but be better positioned to compete in the new world of work,” said Catherine Hartmann, North America Rewards practice leader, Willis Towers Watson.

    Employers that create a flexible workplace with automation, adaptable policies and an enhanced employee experience will be better positioned to compete in the new world of work.”

    Catherine Hartmann | North America Rewards practice leader, Willis Towers Watson

    Highlights and trends


    Alternative work arrangements

    Prevalence
    • Employers say that over half (59%) of their workers are currently telecommuting/working from home; they expect this number to remain high, at around 52% through first quarter of 2021.

    Article

    Getting flexible work right

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    • Employers say that 25% of their workers are also using “working from anywhere” or flextime options; they expect this percentage to remain steady in the first quarter of 2021.
    • On average, organizations currently have a similar percentage of their full-time employees working in person or onsite (45%) as working remotely/from home (44%).
    • Employers expect the proportion of their full-time employees working from home to decline by about 30% from current levels in the next three years. However that level (31%), will be almost six times what it was three years ago (5%).
    What’s driving alternative work arrangements?
    • Most organizations (91%) cite employee safety concerns as the main reason for providing alternative work arrangements.* Other important drivers include promoting employee retention (47%), maintaining or increasing employee engagement (39%), and enhancing productivity (35%).
    • An overwhelming majority of employers (89%) expect that safety considerations will continue to be a key driver of alternative work arrangements in the first quarter of 2021. At the same time, an increasing percentage of employers cite employee retention (61%), engagement (53%) and productivity (41%) as important reasons for offering these arrangements in 2021.

    Implications for pay and benefit budgets

    • Most organizations do not expect flexible/remote work policies to substantially affect pay and benefit budgets for 2021.

    25%

    are using work from anywhere or flextime options

    • Over one-third expect budget reductions in real estate (36%) and commuting expenses (40%) in 2021. Over half of employers (57%) expect reductions in real estate expenses over the next three years, while over a third (36%) anticipate reductions in commuting expenses during the same period.
    • Approximately a quarter of organizations expect to see an increase in allowances and subsidies for working from home in 2021 (26%) and over the next three years (27%).
    • In 2021, 61% of employers say they will pay fully remote workers the same as in-office employees regardless of a worker’s actual locations for all jobs; however, over a quarter of employers (26%) report that pay will be based on the location of remote workers for all jobs.

    Approaches

    Policies and principles

    36%

    expect budget reductions in real estate

    • Prior to this year, more than a third (37%) of organizations did not have a formal policy or set of principles to manage alternative work arrangements; 25% just created a formal policy this year.
    • Organizations without a formal policy to manage these work arrangements are planning to catch up quickly, with three-fifths (60%) saying they are planning or considering adopting one this year or next.
    • Most organizations (58%) with new policies expect these policies or principles to be permanent.
    Eligibility
    • Job function is the most common criteria for determining eligibility for using alternative work arrangements, now (62%) and in the future (74%). Interestingly, at some organizations, all employees will remain eligible, now (21%) and in the future (14%).
    • Most organizations (55%) do not think jobs that will be performed through telecommuting or working from anywhere are likely to be offshored over the next three years; on average, organizations expect about 4% of the jobs that will be done through telecommuting or working from anywhere are likely to be offshored over the next three years.

    Workforce agility

    Opportunity for improvement

    37%

    do not have a formal policy for alternative work arrangements

    • Only roughly one in five organizations thinks its current job architecture (19%) and job leveling process (17%) supports developing a flexible and agile workforce to a very great extent. Similar percentages say their current job architecture (19%) and job leveling process (21%) do not support these objectives at all.
    Organizational effectiveness
    • Over half (54%) of organizations indicate that they are effective at recognizing the need to create a more agile and flexible workforce.**
    • 48% say they are effective at retaining critical talent (employees and contingent workers) with needed technology skills.
    Manager effectiveness
    • Over a third (38%) of employers think their managers are effective at helping workers focus equally on what customers will need tomorrow and what they require today.
    • Just 18% think their managers are effective at communicating and leading change around the new combinations of humans and automated workers.
    • Only about a third of employers (34%) agree that their managers are effective at removing obstacles to doing work with speed and efficiency.

    Digital strategy and levers to support workforce agility

    • Just 14% of organizations have an integrated digital and business strategy that enables new sources of value.
    • Slightly more than half of employers (53%) have provided their employees with digital tools, such as mobile and web apps, to help them be more productive.*
    • Less than half of organizations (42%) indicate that accountability for the success of their digital ambitions is owned by all leadership.* 
    • Only 29% of respondents say their senior leaders are effective at using new technologies and non-employee talent to change the way work is done.*

    Rethinking Total Rewards

    19%

    think current job architecture supports a flexible/agile workforce

    • About half of employers (49%) recognize that new requirements for work require a hybrid model for rewards and pay.
    • Almost a third (29%) of employers are providing additional benefits to promote workplace flexibility (e.g., backup daycare, subsidies for daycare or virtual learning).
    • Nearly a fifth (18%) are setting pay levels by first determining the market value of skills and then applying a geographic differential based on where the employee is located.
    • Most organizations agree that their retirement and financial wellbeing (62%) and health and wellbeing programs (64%) provide the security necessary to support workers to a great or very great extent.
    • However, over a fifth of organizations say that retirement and financial wellbeing programs (24%) and health and wellbeing programs (30%) need to change to provide the security necessary to support workers in a more agile and flexible workplace in the future.

    Footnotes

    * Percentages indicate “to a great or very great extent.”

    ** Percentages for organizational and manager effectiveness indicate “to a great or very great extent.”

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    Source: 

    Willis Towers Watson

    https://www.willistowerswatson.com/en-US/Insights/2020/11/flexible-work-and-rewards-survey-2021-design-and-budget-priorities

  • 01 Dec 2020 9:48 AM | Bill Brewer (Administrator)

    Department of Labor headquarters sign

    By Allen Smith, J.D. | November 30, 2020

    Employers are preparing for changes the U.S. Department of Labor (DOL) may make under President-elect Joe Biden's administration. From joint-employer issues to Office of Federal Contract Compliance Programs (OFCCP) and Occupational Safety and Health Administration (OSHA) action, the DOL is likely to shift direction on many fronts.

    Michael Lotito, an attorney with Littler in San Francisco and co-chair of Littler's Workplace Policy Institute, discussed likely changes at the department with SHRM Online. Lotito has testified before the U.S. House of Representatives and the U.S. Senate, as well as the National Labor Relations Board and the Equal Employment Opportunity Commission. He also co-founded the Emma Coalition, a project named in honor of his granddaughter and dedicated to preparing American businesses for displacement of employees that the rapid rise in automation and artificial intelligence is expected to bring.

    SHRM Online: Might the Biden DOL reissue joint-employer guidance and, if so, how might this be significant from a practical standpoint?

    Lotito: The DOL joint-employer rule under President Donald Trump's administration was challenged by 18 state attorneys general in a federal court in New York. The district judge held the rule to be invalid. The case is on appeal. Littler has intervened on behalf of the International Franchise Association and other associations to protect the rule. The new administration might attempt to have the Department of Justice, which is litigating the case for the DOL, change its position as to whether the rule should be upheld. The case may likely go to the U.S. Supreme Court.

    In the meantime, the DOL may attempt to pause any effectiveness of the rule while it considers its options. Doing so will risk litigation against DOL, as Administrative Procedure Act rulemaking requirements will become operative. The fight then to confirm the rule will play out in court and often over complex administrative law questions. 

    However, the field personnel of DOL may well take a much more aggressive enforcement posture against companies in applying the rule to a set of facts. This, too, will invite even more litigation.

    SHRM Online: How might a Biden DOL advance unions' interests, such as if large infrastructure projects move forward?

    Lotito: Biden proudly says he is a union man and wants to be a union president. One way of demonstrating sincerity in that regard will be through federal contractors who will bid on infrastructure projects. He is likely, through executive orders, to impose requirements on contractors similar to the previously issued and nullified "blacklisting rules." Neutralitycard check, no record of unfair labor practices, strict adherence to Davis-Bacon Act rules and more will possibly impose on contractors a huge price to pay for the privilege of working for the government.

    SHRM Online: Do you expect any significant changes at the Wage and Hour Division, and, if so, what might those be?

    Lotito: I expect the Wage and Hour Division will stop issuing opinion letters, which have been helpful to many in the regulated community during the Trump administration. A potential review of the joint-employer and upcoming independent-contractor rule will be high up on the division's agenda. Perhaps the division will revisit overtime standards and issue rules dealing with pay entitlement for off-the-clock work, like checking e-mail from home. Enforcement will be aggressive, especially against certain industries like fast food, janitorial, construction and other targets. The department will also coordinate with state DOLs to cooperate with one another as investigations progress.

    SHRM Online: What shifts in priorities will the OFCCP likely make under the Biden administration?

    Lotito: The OFCCP will have to deal with the executive order from President Trump concerning diversity training guidelines. I suspect President-elect Biden will nullify it. In any event, diversity and inclusion are enormously important issues for everyone and particularly government contractors. More rigorous enforcement efforts, including in-depth audits, will once again become the norm. Controversy over pay disparity issues will intensify.

    SHRM Online: What steps might OSHA take in the Biden administration?

    Lotito: First, the new president will move quickly to appoint and have confirmed an undersecretary of OSHA, a position that has been vacant over the past four years. That person will move swiftly to promulgate an emergency temporary standard applicable to the pandemic for all impacted stakeholders. Regular new standards will evolve as the pandemic continues and ultimately subsides. Strict enforcement will be the rule of the day. OSHA will be one of the busiest government agencies so long as the pandemic persists.

    SHRM Online: What legislative changes might a Biden DOL seek to lead?

    Lotito: Legislative changes will depend largely on the results of the Georgia Senate contests. But even if the Senate is 50/50 with Vice President-elect Kamala Harris breaking all ties in likely favor of progressives, legislative initiative may be minimal. A 50/50 Senate will not eliminate the filibuster as Sen. Joe Manchin, D-W.Va., has said recently he is not in favor of the filibuster's removal. As long as one needs 60 votes to approve legislation in the Senate, controversial matters on labor and employment like the Protecting the Right to Organize Act, paid sick leave, a new minimum wage and the like may not be front and center as Biden deals with COVID-19, taxes and infrastructure. 

    SHRM Online: How should employers prepare to respond to these possible changes?

    Lotito: First and foremost, be comfortable with uncertainty. Increase compliance focus. Stay engaged and informed. Elections have consequences. How this plays out will depend on many factors. But if the Biden Administration really wants to be remembered for workplace initiatives, it should embrace a new GI bill for upskilling the workforce of the 21st century. We are in the midst of the most transformative workplace disruption in history given the pandemic, robotics and artificial intelligence.

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    Source: Society for Human Resource Management (SHRM) 

    https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/dol-priorities-will-change.aspx

  • 24 Nov 2020 10:24 AM | Bill Brewer (Administrator)

    buying health insurance online

    By Stephen Miller, CEBS | November 24, 2020

    As ICHRAs approach their first birthday, vendors see continuing growth

    Individual coverage health reimbursement arrangements (ICHRAs) became available as a new employee benefit in January 2020 under IRS regulations issued by the Trump administration in June 2019. As ICHRAs approach the end of their initial year, consultants and firms that administer the accounts weighed in on the benefit's future.

    With ICHRAs, pronounced "IK'-rahs," employers subject to Affordable Care Act (ACA) coverage requirements could opt to pay for employees to purchase their own health insurance coverage on the ACA marketplace or through an insurance broker, rather than providing an employer-sponsored group health plan. Among a few ICHRA facts to keep in mind:

    • As with other health reimbursement arrangements (HRAs), employees don't pay taxes on health care spending reimbursed through an employer-funded ICHRA.
    • An ICHRA, like most other HRAs, is not portable when employment ends, although businesses subject to COBRA requirements must give eligible employees a chance to elect COBRA coverage.
    • When employers with 50 or more full-time or equivalent employees provide coverage through an ICHRA rather than a traditional group health plan, employer funding must be sufficient for employees to purchase a plan that meets the ACA's coverage and affordability requirements. For instance, in 2021, an employer's ICHRA allowance must be high enough that employees can buy the lowest-cost silver plan on an ACA marketplace exchange by combining their ICHRA funds with no more than 9.83 percent of their adjusted gross income.

    Employers Take Notice

    There is a growing interest in ICHRAs as a way for employers to keep their health care spending at a fixed dollar amount. This is according to 397 large U.S. employers that participated in HR consultancy Willis Towers Watson's 2020 Health Care Delivery Survey, conducted in August and September. The survey revealed these statistics:

    • About 15 percent of employers polled were planning to offer or were considering offering ICHRAs to at least some of their employees in 2022 or later.
    • Almost a quarter (22 percent) of wholesale and retail employers were planning to offer or were considering offering ICHRAs in 2022 or later.

    In a further sign of support for ICHRAs, one-third of chief financial officers (CFOs) are considering ICHRAs for some of their active employees, according to 54 CFOs who participated in the Willis Towers Watson 2020 Health Care CFO Survey, conducted in September and October.

    "Not surprisingly, relatively few employers adopted ICHRAs this year, as the pandemic diverted much of their attention to other critical benefit matters," said John Barkett, senior director of policy affairs, benefits delivery and administration at Willis Towers Watson. "However, we expect to see interest grow as companies learn more about ICHRAs and the market for individual health plans continues to grow more robust each year."

    As more employers adopt ICHRAs to fund health care, he added, "employees could find relief from the burden of having to change plans whenever they change jobs."

    ICHRAs, QSEHRAs and Group Plans

    Dallas-based HRA administrator Take Command Health recently posted its first ICHRA annual report. "Many business owners and brokers are evaluating their options for group benefits, searching for flexible and budget-friendly options," said Jack Hooper, the firm's CEO.

    Among the firm's clients, ranging in size from one to 151 eligible employees, 46 existing clients that previously offered a qualified small-employer HRA (QSEHRA) switched to an ICHRA to offer more generous benefits to their employees.

    QSEHRAs—pronounced "kyoo-SEHR'-ahs"—allow employers with fewer than 50 full-time employees to use pretax dollars to reimburse employees who buy nongroup health coverage. The rules for ICHRAs and QSEHRAS differ. For instance, QSEHRAs have a reimbursement cap while ICHRAs do not. QSEHRAs first became available in 2017.

    Take Command Health's client data showed increasing interest in ICHRAs:

    • California, Texas, Florida, Pennsylvania and New York lead the country in ICHRA sign-ups, thanks to their strong individual markets.
    • Professional services, nonprofits, tech companies, and health care providers and services lead in sign-ups.
    • The average reimbursement rates for 2020 ICHRAs were $749.93 for singles, $847.20 for couples and $931.95 for families.
    • Survey respondents rated budget control and flexibility at the top of their list of ICHRA benefits.

    "Despite the uncertainty that we've all faced these past few months, we've seen sign-ups for individual coverage HRAs climb steadily and double since January," Hooper said. "Carriers are returning to the individual market, and individual premium prices are stabilizing—critical factors in the success of this new HRA."

    Differences by Industry

    Marek Ciolko, CEO of Gravie, a Minneapolis-based health insurance brokerage, currently has 52 ICHRA clients, some of whom dropped group health coverage and adopted ICHRAs.

    "With the unsustainable increases in many current group plans, an ICHRA is a good option," Ciolko said. "Many want to get out of the business of administering health benefits and also prefer the simplicity and predictability of defined contributions enabled by ICHRA."

    Specifically, he noted, the firm has seen an increase in interest from companies in the home health care, restaurant, and manufacturing and delivery sectors. "Another area where we have seen interest in ICHRAs is midsized companies that find it challenging to locate or maintain health coverage at reasonable rates due to employee health status," he said.

    Reimbursements Differ

    Salt Lake City-based PeopleKeep, which provides consumer-directed health accounts, recently posted its own "first nine months" report on ICHRAs.

    "There is a vast difference in the allowance amounts offered by employers who allow reimbursement [through ICHRAs] of both insurance premiums and out-of-pocket expenses compared to those who only reimburse employees for premiums," wrote Nick Green, product marketing manager at PeopleKeep.

    Among the ICHRAs PeopleKeep administers, 37 percent were limited by employers to reimbursing plan premiums, while 63 percent could be used to reimburse both premiums and out-of-pocket costs.

     

    Employers' Average Annual ICHRA Funding Amounts

      Reimburse Plan Premiums Only Reimburse Premiums and Out-of-Pocket Costs
    Employee-only coverage $538 $1,017
    Employee plus spouse coverage $640 $1,233
    Employee, spouse and dependents coverage $723 $1,324

    Source: PeopleKeep.


    "It stands to reason that employers who are able and interested in broadening the type of expenses they reimburse would also want to make more money available to their employees for those expenses," Green wrote. "What was unexpected was the degree to which that is true."

    A Bipartisan Solution?

    ICHRAs have "proven to be a great fit for employers who want more control over their health benefits costs than a group health insurance plan can provide but want to offer more in allowances than the QSEHRA will allow," Green stated.

    Ciolko noted, "Employers don't have to worry about selecting plan options that will work for all of their employees, but rather can empower their employees to choose a plan and carrier that meets their needs."

    According to Hooper, "We think the ICHRA model could be the key to bipartisan success. It delivers more lives to the individual market, which is important to Democrats, while providing consumer choice and flexibility that Republicans insist on."

    He added, "We believe it could be one of hopefully a few bridges that help to fix the health care system from both sides."

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    Source: Society for Human Resource Management (SHRM) 

    https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/employers-interest-in-individual-coverage-hras-is-rising.aspx

  • 19 Nov 2020 12:22 PM | Bill Brewer (Administrator)

    Fewer Workers Will Get Pay Raises in 2021; Bonuses Gain Ground

    By Stephen Miller, CEBS | November 17, 2020

    More organizations shift from across-the-board increases to variable pay models


    The economic effects of COVID-19 have forced nearly half of organizations (45 percent) to re-evaluate salary increase plans for 2021, new survey findings show.

    Researchers collected data from 1,283 U.S. organizations during July and August for benefits advisory and brokerage firm Gallagher's 2020/2021 Salary Planning Survey report.

    At the start of 2020, two-thirds (66 percent) of surveyed employers had awarded pay raises, as organizations felt primed for growth with a robust economy and record-high employment. By the end of the first quarter, however, the reality of COVID-19 had set in, forcing many employers to put the brakes on wage hikes.

    This trend will continue into 2021, according to surveyed employers.

    Among the segment of employers that indicated COVID-19 has forced them to re-evaluate 2021 salary increase plans, half (51 percent) expect to reduce salary increases, and 45 percent plan to suspend salary increases altogether.

    According to the report:

    • For 2020, salary increase budgets will end up rising 2.5 percent, down from earlier projections of a 2.8 percent average increase.
    • For 2021, Gallagher projects average salary budget increases of 2.1 percent, with variations by employee group (see chart below) as well as by location and industry.

    Average Fiscal Year Salary Increase Budgets by Employee Group 

      2020 2021
    Executives 2.3% 2.0%
    Managers 2.6% 2.1%
    Other exempt workers 2.6% 2.1%
    Nonexempt workers 2.6% 2.2%

    Source: Gallagher's 2020/2021 Salary Planning Survey report.

    Shift Toward Variable Pay

    As an alternative to salary increases, variable pay, such as annual bonuses, "can save money and serve as an investment in future success," according to Gallagher's report.

    "Revenue streams and budgets will be unpredictable in 2021, and for these reasons, many employers are pausing across-the-board salary increases," said William F. Ziebell, CEO of Gallagher's benefits and HR consulting division. "However, the data shows more employers are leaning into variable pay models because this allows them to provide employees with a pay increase based on performance."

    The researchers found that 40 percent of respondents use variable pay for at least one employee group. In addition:

    • 57 percent don't anticipate changing their variable pay budgets for 2020 despite the pandemic.
    • 73 percent don't anticipate changing their variable pay budgets for 2021.

    The benefits of variable pay, according to the report, include increasing employee productivity by linking compensation to organizational success while avoiding long-term costs by not adjusting base-pay levels upward.

    Incentive Pay Pointers

    "Organizations can be prudent in protecting themselves from overpaying under an incentive plan during challenging economic times," said Bob Lindeman and Linda VanDeventer, managing director and co-founder and director of compensation consulting, respectively, of The Overture Group, a boutique executive compensation and search firm that specializes in privately held, small-market organizations.

    Lindeman and VanDeventer advise organizations to take the following steps:

    • Review who is participating in the plan.
      Reducing plan participants is a simple way to reduce potential cost, they noted. "Most legal plan documents and employee communications state—and if not, should state—that management reviews and selects the participants in the plan annually. Stating this fact tempers the expectations of employees, albeit it is a drastic change to implement," they noted.
    • Examine the plan's threshold, target and maximum payouts.
      Reducing a payout maximum as a percent of salary, such as from 250 percent to 150 percent, can curb excessive payouts. "Participants will likely notice such a change, but if communicated effectively, plan participants should respect that an organization does not have a bottomless checkbook, especially in the era of COVID," Lindeman and VanDeventer said.

    Similarly, raising the payout threshold percentage, for example from meeting 60 percent of a targeted goal to 80 percent, "is another effective method to modify the plan while still keeping it motivational," they suggested. Increasing the target performance required for a payout in the financial formulas can ensure "the organization will have enough profit dollars to afford the payout."

    Financial Sector Rewards

    In at least one area of the U.S. economy, the financial sector, employees may find both salary increases and annual bonuses under pressure.

    Year-end incentive payments in the U.S. financial sector are expected to be lower compared with last year, according to an analysis by Johnson Associates, a compensation consulting firm. "The pandemic is wreaking havoc on many parts of the U.S. economy this year, and the financial services industry is no exception," said Alan Johnson, managing director of the firm.

    "Unfortunately, as we look to 2021, even with an optimistic vaccine path, the pandemic will continue to negatively influence businesses, but perhaps to a lesser degree than in 2020," Johnson said. "Headcount reductions will continue in the first half as companies transform and adapt. For 2021, we expect some stabilization with early projections for modest salary increases and flat to slightly increased incentives."

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    Source: Society for Human Resource Management (SHRM) 


    https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/fewer-workers-will-get-pay-raises-in-2021-as-bonuses-gain-ground.aspx

  • 11 Nov 2020 10:10 AM | Bill Brewer (Administrator)

    Companies offer creative solutions to worker burnout during the pandemic | Fox Business

    By Chip Cutter

    Companies are adapting policies and rushing to roll out benefits to head off a surge of employee distress

    A few months into the pandemic, Nick Popoff let his guard down in an all-hands video call and said aloud what many had been experiencing: He felt burned out.

    Some weeks, the engineering director at ticketing company Eventbrite Inc. didn't leave his house for days, he said. Slack notifications buzzed constantly. He missed seeing friends and colleagues in person. Even a hike with his wife through northern California's redwoods, didn't leave him sufficiently recharged.

    "Work burnout is insidious. It's not just like a red light that comes on, " Mr. Popoff says. "It's something that very slowly starts to happen, and that's how it can catch people by surprise."

    After Mr. Popoff shared his experience in the meeting, colleagues came forward, saying that they, too, felt exhausted by work, and life, in a pandemic. Mr. Popoff began leading "recognizing burnout" sessions for other employees, giving staffers a forum to voice their feelings, and to hear advice from mental health professionals about how to cope.

    The effort is one of many experiments afoot in corporate America as bosses stare at a sea of faces on Zoom and worry. With no end to the pandemic in sight, managers say many remote employees report feeling depressed, fed up and wary of what's next. Companies are adapting policies and rushing to roll out benefits to head off a surge of employee distress.

    "There's this second wave upon us, where people are feeling super-anxious that this is the new normal, and how much longer can we sustain this?" says Matthew Schuyler, chief administrative officer at Hilton hotels. "I don't think we've yet come to grips with the mental impact this is having on all of us."

    In addition to expanding access to counseling and mental health services, many employers are trying other approaches, such as insisting employees disconnect or offering more training for managers. In recent months, Antonio Neri, chief executive of Hewlett Packard Enterprise Co., has been encouraging bosses at the technology company to call employees to check in on their well-being. "You've got to make the effort," he says. "Don't assume email is enough, because email is not personable."

    Jimmy Etheredge, CEO of North America at consulting firm Accenture PLC, recently asked his 27 direct reports to attend 2 1/2 hours of virtual training on how to better support colleagues facing mental-health issues. All participated. Mr. Etheredge says he regularly receives emails from employees, explaining their pandemic-related challenges. But consultants have a tendency to jump into a situation and become problem-solvers, an "occupational hazard," Mr. Etheredge says. The training stressed that, in conversations with employees, sometimes attentive listening without judgment can be most helpful.

    "Just validate that the person is being heard," Mr. Etheredge says, while directing them to additional resources, if needed.

    Solutions needn't be complicated or costly, executives say. Eventbrite recently changed leadership training during the pandemic to focus on how supervisors can manage with empathy while people are working remotely. Now, bosses are taught to begin one-on-one sessions with employees with a simple phrase meant to elicit genuine emotions, says David Hanrahan, the company's chief human resources officer. Instead of a stock "How are you?" before quickly moving on to business, managers might ask, "How are you really, really doing?" After Mr. Hanrahan poses the question, he is silent, even if the pause feels uncomfortable. With some prodding, employees may then open up about their true feelings regarding work or personal challenges. "It's a simple tactic any manager can employ," he says. "But it's about true empathy and true care."

    Other companies have taken steps to bolster morale in the Covid era. Seattle construction and engineering company McKinstry Co. LLC began issuing companywide "good news Friday" memos, pointing out, "Hey, here's eight things that happened this week that are pretty good," says Dean Allen, the company's CEO. That could be feedback from a happy customer or details about new business the company landed. Hilton's Mr. Schuyler encourages managers and teams to allow Zoom calls from parks or other outdoor venues.

    Fidelity Investments recently began a pilot program for a small portion of its workforce in which employees can opt to work 30 hours a week, with a small pay cut, while retaining their full benefits. Fidelity plans to hire more staff to pick up the work so that other colleagues aren't overwhelmed, says Bill Ackerman, head of human resources at the financial-services firm.

    As the pandemic drags, employers need to adjust their approach, Mr. Ackerman says. Benefits that may have been appreciated early on -- such as matching gifts to charities and stipends for home offices -- have shifted this fall to include access to child-care coordinators and subsidies, as parents grapple with schooling issues.

    Many bosses say even finding ways to get employees to step away from their laptops takes more thought now. Geben Communication, a public relations firm in Columbus, Ohio, began offering employees bonus "self-care days" off in recent months, to encourage them to disconnect, says Heather Whaling, the company's president. In Austin, Texas, Ryan Wuerch, chief executive of Dosh, an app that gives consumers cash back when they shop, takes another approach: impromptu three-day weekends. On some Thursdays, during all-staff meetings, Mr. Wuerch now surprises the company with the news that the following day is a "Dosh Day," when no work is allowed.

    Extra vigilance is key, managers say. To head off burnout, Eventbrite's Mr. Popoff watches for employees who seem to be plugging away after hours and follows up with them the next day, saying that such work is unnecessary.

    Some workers have adopted cues to signal they need help. At Dell Technologies Inc., Jennifer "JJ" Davis, senior vice president of corporate affairs at the technology company, says during the pandemic her team has developed a way to alert colleagues when they are "above the line" -- feeling OK, and able to lend a hand -- or "below the line" and needing assistance. The phrases allow people to convey their state of mind without necessarily divulging personal details. "Nobody asks questions. They just say: 'OK, what can I do?' " Ms. Davis says.

    Pandemic-specific peer groups also are effective. More than 1,500 Dell employees joined colleagues in virtual support groups focused on child care or pandemic isolation, for staffers living alone. "It gives you a safe place to let your guard down," Ms. Davis says.

    Ms. Davis says she helps her colleagues cope by being honest about her own challenges, such as deciding whether her three teenage sons should attend classes in-person or virtually. Sometimes, when meetings run long, Ms. Davis begins preparing dinner -- and tells her team she's multitasking. "I'm like, 'Hey guys, great meeting, I just finished a batch of brownies,' " Ms. Davis says. "If I don't tell my staff and lead by example that I'm cooking brownies while doing a meeting at the same time, then they don't know that they have permission to do the same thing."

    Taking Action

    What companies can do to curb staff burnout:

    Encourage employees to take time off. Some companies offer bonus "self care" days or end work a few hours early.

    Expand access to counseling and mental-health services. Employers have rolled out digital counseling apps or brought on coordinators to help employees access care.

    Ask managers to check in on individuals' well-being. Even simple gestures, like a phone call instead of an email, can go a long way.

    Offer training for managers on supervising with empathy. Overseeing employees in a pandemic is a new skill, so guidance on supporting colleagues' mental well-being can help.

    Foster dialogues where workers share genuine emotions. Asking "How are you?" isn't enough; probe to get a sense for people's real situation.

    ***** ***** ***** ***** ***** 

    Source: Fox Business

    https://www.foxbusiness.com/lifestyle/companies-offer-creative-solutions-to-worker-burnout-during-the-pandemic

  • 09 Nov 2020 3:31 PM | Bill Brewer (Administrator)

    its meant to offer retirement readiness to plan participants

    by Lynn Cavanaugh | November 2, 2020

    Employers have a year to implement a new 401(k) rule, but it’ll take some preparation. The Department of Labor (DOL) is requiring firms to provide employees with lifetime income estimates to help them determine their retirement readiness.

    The DOL’s Employee Benefits Security Administration (EBSA) has announced this interim final rule. It’s meant to help workers realize how their current retirement plan might translate into lifetime monthly payments, in a similar fashion to what the Social Security Administration provides employees.

    This rule was set in motion by the Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in 2019. This Act amended the pension benefit statement requirements to show participants equivalents of their retirement savings as monthly income.

    “Our goal is to help workers and retirees understand how savings translate to retirement income,” says EBSA’s acting assistant secretary Jeanne Klinefelter Wilson.

    To help ease administrative burdens on employers, the new rule includes 11 brief model language inserts that may be used in an employer’s own plan disclosure. Firms can access the new rule online, since it’s now published in the Federal Register.

    Calculating estimates

    The DOL’s fact sheet includes an example of a plan disclosure for a 40-year-old employee, using a 10-year constant maturity Treasury rate to calculate the monthly payments. Here is the information that must be provided:

    • current account balance: $125,000
    • single life annuity: $645 per month for life, and
    • qualified joint and 100% annuity: $533 per month for an employee’s life and $533 for the life of a spouse following participant’s death.

    The DOL is allowing a 60-day comment period, giving employers until Nov. 17, 2020 to submit or mail comments (tinyurl.com/DOL614) on this new rule.

    ***** ***** ***** ***** ***** 

    Source: HR Morning 

    https://www.hrmorning.com/articles/dols-new-401k-rule-firms-must-give-workers-lifetime-income-estimates/

  • 03 Nov 2020 7:09 AM | Bill Brewer (Administrator)

    By Marthin De Beer | October 30, 2020

    From a pandemic and the move to remote work, to natural disasters and social justice protests, 2020 has been a rollercoaster. These events are having a meaningful impact on companies as employees look to their employers for support. Many organizations have stepped up their efforts to address some of these big challenges our society is facing today, while simultaneously investing in the future of every employee — and the company as a whole.

    In the current market environment as HR and benefits leaders look ahead and plan for 2021, Diversity and Inclusion (D&I) initiatives have taken on increased importance. D&I initiatives are no longer nice-to-have, but rather vital for organizations to thrive as employees increasingly demand them. Monster.com found that 62% of job candidates would turn down a job if they didn’t feel the company valued workplace diversity. This is a notable change from recent years and a step in the right direction to address some of society’s biggest challenges where we spend the bulk of our waking life: the workplace.

    Although there are a lot of important threads to the D&I conversation, there's one element that often gets left out: financial wellness. That’s a critical oversight given the wealth gap in this country. The Federal Reserve reports that on average white families have accrued eight times the wealth of Black families and five times the wealth of Hispanic families. This is a systemic issue and provides an opportunity for companies to play their part in solving this problem by enabling people of color to increase their wealth.

    Growing up in apartheid South Africa, I saw firsthand how the depth of systemic racism permeated society. It became clear that lack of access to economic opportunity — and education to get there — was holding back generations. When I moved to the U.S. and founded BrightPlan, I made a commitment to advancing financial wellness to fuel equality. Employers have an opportunity to lead this transformation by ensuring financial wellness programs are an integral part of their D&I initiatives.

    Financial wellness is core to D&I

    Employers are working hard to expand their D&I initiatives. LinkedIn data shows there has been a 71% increase in worldwide D&I roles in the past five years. Most D&I efforts focus on representation and removing workplace bias — which is important, but not sufficient to solve the larger issue of financial inequality. Creating lasting wealth for underrepresented communities, however, can lead to change by fueling generational advances.

    That’s where financial wellness can be very valuable. Even something as simple as education can be a powerful step forward. Financial education and literacy in the U.S. is extremely low, in general, but even more so in underrepresented communities. For example, a study from Next Gen Personal Finance found that only 3.9% of students from low-income schools were required to take a personal finance class, compared to nearly 17% nationwide. Employers can help close this financial literacy gap by offering wellness benefits that provide comprehensive financial education to employees.

    But education alone isn’t enough. A successful financial wellness program should make it easy for employees to take action across their entire financial life. That means providing a complete view of all their personal finances in context of life goals, delivering clear recommendations and making it easy to monitor progress.

    Employees expect their employers to provide essential benefits like health care and 401(k)s. It’s now time to add financial wellness to that list, with companies going beyond retirement plans to offer complete financial wellness benefits. By helping underrepresented communities achieve financial wellness, employers can play an active role in bridging the wealth gap.

    Gaining a competitive advantage

    Including financial wellness as part of employer provided benefits and D&I initiatives doesn’t just benefit employees and society as a whole. It’s also good for business. We’ve seen compelling data from enterprises revealing that financial wellness as part of a broader well-being strategy, improves employee engagement and workplace happiness, while increasing retention and strengthening recruitment efforts. Moreover, data shows that diverse companies perform better financially too.

    Data from PwC shows finances are by far the top source of stress for employees. By offering financial wellness benefits, employers can help alleviate anxiety so employees can be more productive and engaged at work.

    I’ve seen firsthand that demand for financial wellness solutions is soaring as COVID-19 and D&I conversations have motivated employers to seek innovative solutions. With D&I set to be a priority for employers headed into 2021, financial wellness will be even more valuable as an actionable program that directly addresses root causes, empowering companies and employees to enact lasting change.

    Diversity pays off in many ways, and we're just starting to scratch the surface of how financial wellness can support more equitable organizations. By adding financial wellness as a key component to D&I initiatives, employers can take a leadership role in advancing equality and creating generational wealth for all employees while gaining a competitive advantage.

    ***** ***** ***** ***** ***** 

    Source: Employee Benefit News (EBN)

    https://www.benefitnews.com/opinion/why-diversity-and-inclusion-initiatives-need-financial-wellness

  • 02 Nov 2020 8:06 AM | Bill Brewer (Administrator)

    Published: Nov. 1, 2020 at 3:51 a.m. ET | ByAndrew Keshner

    ‘It’s not unusual for people not to be aware of the specifics they are being afforded by their employers, sadly.’

    A record number of Americans have voted early in the race between President Donald Trump and Democratic challenger Joe Biden, and many will still head to the polls on Election Day. Some companies want to make sure they have plenty of time to do so.

    Major companies including Walmart WMT, +1.04%  and Twitter TWTR, -3.32%  are trying to make it easier for workers to cast their vote on or before Nov. 3’s Election Day, often by providing paid time off.

    But many workers don’t know about the accommodations, a new survey suggests.

    While 52% of companies are offering paid time off to vote according to their human resource staffers, only 23% of workers are aware of the benefit, a survey from the Society for Human Resource Management found.

    Almost one-third (30%) of human resource officials say their companies are providing time off with no pay, and 16% of workers said they knew about such a benefit.

    “It’s not unusual for people not to be aware of the specifics they are being afforded by their employers, sadly,” said Johnny Taylor, president and CEO of the Society for Human Resource Management, a professional association.

    The survey comes during a hard-fought presidential election — and the coronavirus pandemic that’s up-ended work routines and added another layer of complexity to the voting process.

    More than 22 million people had already cast their vote as of earlier this month, according to the Associated Press. That’s 16% of all votes in the 2016 presidential election.

    The wait for early in-person voting has sometimes stretched on for an hour or more, according to media reports. A delay like that can take a real chunk out of a person’s work day.

    The findings come from two surveys, one of almost 500 human resource workers who are members of the Society for Human Resource Management. The other survey polled approximately 1,000 people. ***NORC at the University of Chicago performed the worker survey on SHRM’s behalf. ****

    Workers in one survey may not necessarily be working at the same companies as the human resource officials. Still, said Taylor, the lack of awareness might hold true even if the workers and HR poll participants worked in the same place.

    Employees are often unaware that they’re entitled to all sorts of perks, he said. “Some of it is employees during the orientation process are just overwhelmed with data,” and more focused on key questions like pay.

    Between 42% and 44% of surveyed companies offered paid time off to vote between 2017 to 2019, according to previous benefit surveys from the organization that used larger sample sizes.

    Taylor was expecting even more companies to offer time off for voting this election season. But when he asked around, some colleagues told him they weren’t doing it because the opportunity to vote has been stretched out over so many days, and workers already had flexibility in how they used their time off.

    Around 25% of companies told Mercer, the human resources consulting firm, they were changing their internal policies this year to provide more voting time. The most-cited tweak was increasing paid time off (10.5%), according to the survey released Thursday.

    As of late August, more than 700 companies had joined Time To Vote, a non-partisan coalition of businesses pledging to facilitate their staff’s ability to vote. (That’s anything between a paid day off, lighter schedules or assistance with mail-in ballots.)

    Over 200 companies joined the coalition over the summer, including Nike NKE, +2.25%, Dell Technologies DELL, 1.50%  , Visa V, +2.54%   and Bank of America BAC, +1.24%. Nike said its accommodations may include paid time off on Election Day, no meetings that day or offering resources for mail-in ballots and early voting.

    Dell already offers paid time off to vote, a spokeswoman noted. But she added that the company joined the coalition “to further amplify this message amongst team members and reinforce our commitment to civic engagement.”

    Visa expanded its paid time off policy from two to four hours and offered other resources on voting, including a virtual event with voting experts, a spokesman said. “Taken together, we hope these actions lead to an increase in employee voter participation in our country’s elections this year,” he said.

    ***** ***** ***** ***** ***** 

    Source: MarketWatch

    https://www.marketwatch.com/story/many-workers-have-no-idea-their-employers-are-offering-this-democracy-boosting-perk-survey-suggests-2020-10-23

  • 29 Oct 2020 8:14 AM | Bill Brewer (Administrator)

    Gartner Top Priorities for HR Leaders in 2021

    October 23, 2020 |  Contributor: Jackie Wiles

    Building critical skills and competencies continues to top the list of priorities for HR leaders in 2021. Also on the radar — organizational (re)design and change, and leadership.

    A recent survey of more than 800 HR leaders shows that although many expect their organizations to focus on growth in 2021, cost optimization features more widely than it did previously — and improving operational excellence remains paramount. To support these and other business priorities, 68% of HR leaders say they will be building critical skills and competencies, an objective that has topped the priorities of HR leaders for three consecutive years.

    Organizational design and change management also feature among the key objectives for HR leaders, as does building a bench of current and future leaders. None of these goals is new to HR leaders, but all have been made more urgent by the effects of COVID-19.

    “As organizations move from their initial pandemic response to more sustainable operations, they’re trying to build resilience into everything, from strategy to work design, so as to enable the organization, its leadership and employees to sense and respond to change, repeatedly,” says Mark Whittle, VP, Advisory, Gartner.

    Top priority No. 1: Building critical skills and competencies

    HR leaders see building critical skills as vital to driving many of their organization’s priorities — from growing the business and executing business transformation to improving operational excellence.

    One-third or more of HR leaders agree the major challenges include their lack of visibility and understanding of current skill gaps and being unable to integrate learning effectively into employee workflows.

    Use a dynamic approach for future-forward skills development

    Traditional ways of predicting needs and upskilling the workforce aren’t working in today’s highly changeable conditions, where employees need more skills for every job and many of those skills are new. Gartner TalentNeuron™ data shows that the total number of skills required for a single job is increasing by 10% year over year, and one-third of the skills present in an average 2017 job posting won’t be needed by 2021.

    Furthermore, many employees aren’t learning the right new skills — for their personal development or the benefit of the organization. 

    Gartner research shows that HR leaders need to adopt a dynamic approach to reskilling and redeploying talent, one in which all impacted stakeholders work together to sense shifting skill needs and find ways to develop skills as those new needs arise. Currently, only 21% of HR leaders say peers share accountability or partner with HR to determine future skill needs.

    Gartner research shows that when using this type of dynamic approach to reskilling, employees apply 75% of the new skills they learn — far more than with other approaches — and learning begins sooner, as needs are identified faster.

    Adopt new recruiting tactics

    HR leaders also need a more modern and out-of-the-box approach to recruiting. Traditionally, organizations sought to replace roles and individuals in the workforce by seeking a similar set of candidate profiles — from known talent pool sources and from those attracted to the existing employee value proposition (EVP).

    Instead, to ensure quality hires

    • Prioritize skills instead of hiring profiles

    • Seek to tap into the total skills market, not just known talent pools

    • Make sure the EVP evolves to deliver on changing candidate wants and needs

    Gartner research finds that 65% of candidates have cut short the hiring process because they found certain aspects of the job (e.g., work-life balance, development opportunities, company culture) unattractive.

    Gartner surveyed more than 800 HR leaders in late-2020 about their priorities for 2021. Building critical skills and competencies topped the list.

    Top priority No. 2: Organizational design and change management

    This objective is a top priority for 46% of HR leaders. And it’s key to driving many enterprise business goals, including cost optimization (which aligns costs and resources to business priorities). 

    Many organizations have experienced, in trying to respond at speed to the effects of the pandemic, that their years-long focus on efficiency has actually left them with rigid structures, workflows, role design and networks that don’t meet today’s needs or flex with fast-changing conditions.

    Work friction weighs down employees

    Gartner research shows that only 19% of HR leaders report that their workforce can effectively change direction based on changing needs or priorities. Less than 40% believe employees can effectively detect when they are working on the right things for customers.

    What is keeping employees from adapting to change? Research shows outdated work design is the cause of numerous forms of work friction. Future-forward work design is what’s needed to ensure employees can be responsive — that is, in sync with customer needs, in a position to anticipate changes in those needs, and with the ability to adapt their approach and activities accordingly.

    This work friction adds to the burden of incessant everyday change that is driving widespread change fatigue. That fatigue means employees are unable to process change at a time when organizations most need them to be responsive and adaptable.

    Unlock employee responsiveness

    HR leaders can help prevent change fatigue, and address the specific factors that contribute to work friction. Rethinking work design strategies can help to unlock responsiveness at scale across the workforce and build organizational resilience.

    Tactics include realigning work design to the way work really happens and resetting rigid permissions and signoff processes and hurdles so they don’t unnecessarily impede innovation and action.

    This type of shift from designing for efficiency to designing for flexibility is expected, according to 52% of HR leaders, to have a significant impact on their organizations into 2021. Only 8% said they expected no impact from this evolution.

    Top priority No. 3: Current and future leadership

    Strong leadership is especially important during times of great change. Gartner research recently showed that only 44% of employees say they trust their organization’s leaders and managers to navigate a crisis well.

    Lack of diversity tops the leadership concerns of HR leaders. This contributes to the lack of confidence and trust in leadership in a year when demands for equity and inclusion have, in general, become more visible and ardent from both employees and the public. 

    Gartner TalentNeuron data illustrates the lack of diversity among the leadership of U.S. companies. It shows that only 10% of senior-level corporate positions are held by a woman from a racial or ethnic minority and only 18% by a man from a minority segment.

    The barriers that impede advancement among underrepresented talent equally apply to the leadership pipeline. Potential leaders from diverse groups often face unclear career paths and steps to advancement, get too little exposure to senior leaders, and lack mentors or career support.

    Go beyond mentoring to nurture diverse leadership talent

    HR leaders know it takes more than intent to fix bias. A Gartner survey of HR leaders in early 2020 found that 88% felt their organization had not been effective at increasing diverse representation. The imperative for diversity, equity and inclusion leaders now is to assess all the systems and processes that systematically deter equal opportunity, as well as take proactive measures to build diversity on the leadership bench.

    One approach is to manufacture more intentional networking opportunities that expose high-potential diverse talent to a network of connections that are diverse in role, skills, level and experience — and directly expose that talent to senior leaders who can support their growth and advancement.

    Organizations that use diversity networking programs are 3.4 times more likely to report they are effective at increasing opportunities for talent mobility.

    ***** ***** ***** ***** ***** 

    Source: Gartner

    https://www.gartner.com/smarterwithgartner/gartner-top-3-priorities-for-hr-leaders-in-2021/

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