Horizon Point Consulting

Author: Lorrie Coffey

  • What To Know About Shopping For an HRM

    What To Know About Shopping For an HRM

    What To Know About Shopping For an HRM

    Over the past few years Horizon Point has helped multiple clients vet and implement a Human Resources Management System. Each client had very different wants and needs, and each implementation was unique. So what do companies need to know about vetting an HRM?

    1)      Understand what an HRM can offer your organization. Not every HRM system is created equally. Some systems are all-or-nothing, meaning that you cannot customize the functions you want or need, you pay for full functionality whether you use it all or not. Many vendors offer systems that are modular, meaning that you can pick and choose which functions you want built into your system and you pay based on the modules you select. HRMs have some or all of the functions below:

    a.       Data storage
    b.      Payroll
    c.       Timekeeping
    d.      Benefits administration
    e.       Applicant Tracking
    f.        Onboarding and offboarding
    g.       Performance Management
    h.      Compensation
    i.        Training
    j.        Asset Management
    k.       Employee Self-Service

    2)      Understand what you need from an HRM. Just because an HRM offers a vast array of functions doesn’t mean that your organization needs them all. Many organizations already have systems in place to manage some functions, such as payroll, timekeeping, or applicant tracking. In order to determine if these functions should be moved to a new system, you have to consider factors such as cost to convert the processes over, if the data can be imported from the old system to the new or will it have to be manually entered, or if the new HRM can work with the current systems you have in place.

    3)      Don’t just consider what your organization needs now, but what it may need in the future. Do the systems you’re considering not only meet your organization’s needs today, but will they grow with your organization and still be the right system for you in five or even ten years? Some systems are great for small businesses but as companies grow the system can no longer meet their needs and they find themselves needing to go through the vetting and implementation process all over again in just a few years. Some systems are great for large companies, but the expansive functionality is not needed for small businesses and the cost is too high. Be sure to consider if a month-to-month payment plan or a long-term contract is right for your organization as well.

    4)      What does implementation look like? As I mentioned above, I have implemented multiple systems for clients, and each vendor manages implementation differently. Generally, your company is assigned to a dedicated implementation specialist who walks you through the process of collecting and importing data. Depending on the system selected and the functions being implemented, the process can be fairly easy and take a few weeks, or can be extremely complicated and take a few months to fully set up and roll out.

    When vetting and implementing an HRM, it’s critical to understand the needs of your organization and what a system can offer you. That includes not only functionality, but growth capabilities, cost, implementation complexity, and the return on investment.

    To learn more about HRM vetting, read our blog post Selecting an HRIS that’s Right for You. If you’re interested in how Horizon Point can help you vet an HRM, ATS, you can read more about how We Help You Hire Right.

  • AI Isn’t Replacing Jobs, Rather, It’s Writing Them

    AI Isn’t Replacing Jobs, Rather, It’s Writing Them

    This week we continue our exploration of AI. I must admit, I’ve been hesitant to give AI a chance. Given the ethical and legal concerns with its use and my own personal worries about whether it can perform for my needs, I saw no reason to engage with it. These past few weeks however, I’ve been testing its applications within the work place for HR-related tasks.

    Recently, I’ve been working on a compensation project that involved pulling market data, and reviewing job descriptions. I felt it would be a good opportunity to test AI and its research and writing capabilities. In recent months, ChatGPT, a Large Language Model AI developed by OpenAI, has undergone several updates providing it with new capabilities outside of just writing. One such new feature includes doing internet research, but how accurate is it?

    To test this, I enlisted my tech-savvy kids to ask ChatGPT for market data at the 25th Percentile in Huntsville, AL for a Market Assistant. Below I’ve attached screenshots of their results.

    When asking the same question, they both get slightly different answers. And when double checking their results, it seems that ChatGPT provided inaccurate information. Visiting the link it provided, it tells us that the range for the position as a whole is actually $46,530 to $58,286. See here for yourself: https://www.salary.com/research/salary/listing/administrative-assistant-salary/huntsville-al

    Comparing the ChatGPT results to CompAnalyst (Salary.com’s paid wage database) I found that the average salary for an Administrative Assistant for the 25th percentile in Huntsville is about $35,000, which aligns with the result one of my kids got, however, it doesn’t align with the source provided, so we’re unsure where this information is coming from. The results my other son got, $39,502 aligns with the median rate provided on CompAnalyst, which was $39,900. 

    Next, I decided to see how well ChatGPT wrote job descriptions. So, I asked ChatGPT to write a job description for an entry level GIS Analyst. The results were actually pretty decent. The job description had a well written summary of the role, accurately outlined key responsibilities, and specific qualifications including the requirement to know specific GIS software including ArcGIS and QGIS. ChatGPT also included the benefits offered by the employer and outlined the application process. My favorite part though is that ChatGPT even included an EEO statement. What it lacked was information on the physical requirements of the job and the work environment, so I decided to test it out on a job that requires more physical ability – a police officer. But once again, ChatGPT didn’t include any information on the physical requirements or work environment of the role. 

    These were just two simple tests of ChatGPT and how it could benefit HR professionals. Having given it a try, I do believe that AI can be beneficial to HR and help create a starting point for many HR tasks. However, the key takeaway for me is that AI is a starting point, it’s a tool to help aide you but you still have to do work – research the data you obtain through AI, review that document you have AI create for you for accuracy, compliance, and best practices, and remember that you are still responsible for the liability that using AI can create. 

  • Legal Update

    Legal Update

    We are only in May and already we have seen a number of employment law updates this year that have a huge impact on employers. Johnson, Paseur, & Medley, LLC shared the info in the images below with us:

     

    Fair Labor Standards Act

    The #1 change everyone is talking about and preparing for is the recent update to FLSA. Effective July 1, 2024, the salary threshold for a position to be eligible for exempt status will increase to $43,888 ($844 per week) and will increase again effective January 1, 2025 to $58,656 ($1,128 per week). This is almost a 65% increase in the threshold and will have a significant impact on many employers and employees. In addition, the highly comped threshold will increase from $132,964 to $151,164 effective January 1, 2025. 

    As the first deadline is quickly approaching, employers should be reviewing the current salaries of all exempt staff to determine how many employees this will impact and how to proceed with each position. Below are a few things to consider:

    • If an employee’s current salary is close to the new January 2025 threshold, would it be more beneficial to increase their salary to meet the new requirement. 
    • If an employee’s current salary is between the July 2024 and January 2025 thresholds, when should you move them to a non-exempt status and how far in advance should you communicate that change to the affected employees? 
    • For those employees that you will need to convert to non-exempt, is moving them to a salary non-exempt position the right option for your organization? This means that you guarantee an employee their full salary for hours worked up to 40, but would still be required to pay them overtime for hours worked in excess of 40 per work week. 
    • When do you need to have these converted employees set up in your timekeeping system so that they can begin to track their hours, and do you need to schedule training for these employees on how to use the timekeeping system? 
    • Does your organization have highly comped employees who will be impacted by the threshold increase and if so, what is the best way to navigate that impact? 
    • And the biggest question employers must ask is what financial impact will this change have on your organization and how can you mitigate that impact? 

    Also, employers need to be prepared for the long-term effects of the most recent FLSA changes, as it also includes an increase every three years, with the next increase going into effect July 1, 2027. The rate of change has not been determined and will be calculated every three years based on current calculation methods, so the full impact of future increases is still unknown. 

    To assist employers with understanding the new FLSA rules, the Department of Labor has scheduled two webinars that employers can sign up to attend for free. 

    Non-Compete Agreements

    In April, the Federal Trade Commission (FTC) issued a ruling banning most non-competes effective September 4, 2024. This ban includes non-competes for all employees, including senior executives. Current non-competes become null and void for most employees, with the exception of senior executives. If senior executives have a current non-compete, they can remain in force if those individuals earn at least $151,164 and are policy makers. However, effective September 4th, no new non-competes can be entered into with senior executives. 

    As part of this ruling, companies who have current non-competes in place will be required to notify all employees, excluding those current senior executives, that the non-competes will be null and void effective September 4, 2024. To aid in this effort, the FTC has provided sample language employers can use. 

    While employers can no longer utilize non-compete agreements, there are alternatives to help protect proprietary information, such as a non-disclosure agreement or confidentiality agreement. In addition, Federal Trade Laws provide a great deal of protection to employers. 

    EEOC Guidance on Harassment in the Workplace

    A few weeks ago, the EEOC released final guidance for employers on the legal standards and employer liability that apply to harassment claims. This new issuance was designed to update and consolidate the previous five guidance documents issued between 1987 and 1999. Since the last guidance was issued, there have been significant changes to discrimination laws, including the landmark decision in Bostock v. Clayton County (2020) in which the Supreme Court ruled that sexual orientation and gender identity were protected under Title VII. 

    The newly issued guidance includes a significant number of examples to illustrate various forms of harassment and discrimination, not only from coworkers, but also from vendors, customers, and other third parties. It also addresses the changes in the workforce, such as remote work, increased use and modernization of technology, and social media harassment. 

    In addition to these changes, there have been some significant guidance documents released recently, as well as a significant decision by the Supreme Court that impacts discrimination claims. 

    What to Watch For

    In addition to the updates above, there are a number of items that HR professionals and business leaders should keep on their radar this year. 

    If you like to learn about Employment Law, you might enjoy these blogs too:

  • Open the Door to Vulnerability and Courage

    Open the Door to Vulnerability and Courage

    Last week Emily complimented me in her blog post when she spoke of the struggles I have faced in the last year and my ability to persevere through them. (Thanks, Emily!) And she’s not wrong. I have been that way for as long as I can remember; not letting anything stop me or get in my way. My dad taught me to have determination and I am so grateful that he did. But that determination and perseverance go hand in hand with the ability to be vulnerable. And this is where I used to fall short, very short. It wasn’t until I joined the Horizon Point team that I learned it was okay to be vulnerable, to ask for help, and to let others handle the load when you can’t. And during my health struggles in the past year, they have helped carry the load, without hesitation. 

    Vulnerability isn’t a sign of weakness, but a sign of strength. It’s the ability to acknowledge when you can’t do it alone, when you made a mistake, or when you fell short. As Brene Brown puts it “(T)he definition of vulnerability is uncertainty, risk, and emotional exposure. But vulnerability is not weakness; it’s our most accurate measure of courage.” 

    I had to learn to be vulnerable, and here’s what I have learned:

    1. If you show vulnerability, others will follow. If leaders allow themselves to be vulnerable with their teams, it creates a culture of trust and in turn those employees will learn that vulnerability is acceptable, encouraged, and expected within the team. 
    2. Being vulnerable takes practice. It’s not easy to be vulnerable. As Brené Brown says, it takes courage to expose your fears, mistakes, and emotions to others. You don’t know how it will be received and you don’t know what others will think of you. But the more you do it, the easier it gets. Start small and work your way up to the big things if you need to. And sometimes it starts with being vulnerable with yourself. 
    3. How you respond to the vulnerability of others is make or break. As a leader, you need to encourage and accept the vulnerability of others. How you react to the vulnerability shown to you can build trust or destroy trust. Allow for mistakes and use them as learning opportunities. Encourage employees to seek help when they are overwhelmed, be someone that they can vent to if needed (without negative repercussions). Understand that they have emotions and while you may not understand or agree with those emotions, acknowledge them. 
    4. Vulnerability in leadership leads to better, more productive teams. By allowing and encouraging vulnerability and modeling vulnerability to your team, it creates a team that is psychologically safe, that is comfortable raising concerns, mistakes, and ideas, that has a growth mindset. And research shows that teams that are psychologically safe are the most productive teams you can have. 

    I have a wonderful team at Horizon Point that I can be vulnerable and courageous with, that I can go to for help when I need it, can share ideas and concerns with without fear of repercussion, and that I can vent to when I’m having one of those days. And I know that they have by back, and in return, they know that I have theirs. 

    How have you as a leader shown vulnerability and courage to your team? And how have you responded to the vulnerability shown to you? 

  • Braving Trust and Vulnerability

    Braving Trust and Vulnerability

    As we just celebrated Martin Luther King, Jr. Day, I found myself thinking of what made him a good leader. He led with his values always in the forefront of his actions, his values drove everything he did. He was a servant leader, who believed in developing and empowering others, and he was a transformational leader, who had a big vision, shared that vision and challenged others to see the potential of that vision, and fought hard for change. 

    He was a successful leader because he built trust and followed through with action. Brené Brown says that “trust isn’t built in grand gestures, but in the small moments that people treat what is important to you with care.” She breaks trust down into seven (7) elements (BRAVING trust): 

    1. Boundaries: Good leaders have boundaries. They set expectations, explain why those expectations are important, and they hold steady to them. 
    2. Reliability: As a leader, don’t overpromise, don’t say you will do something that you can’t do or have no intention of doing, and if you say you will do something, make sure you do it. And remember that it’s ok to say no, saying no opens you up to being able to say yes to something else. And explain the reason behind your “no”. 
    3. Accountability: We all mess up sometimes. Good leaders show vulnerability, they aren’t afraid to admit when they messed up, ask forgiveness, and figure out how to make it right. They also have to have forgiveness to allow others to do the same. 
    4. Vault: Good leaders understand that others’ come to them in confidence, and they keep that confidence. 
    5. Integrity: Good leaders lead with courage, letting their values guide them in their decisions. They do the next right thing. 
    6. Nonjudgement: Good leaders don’t pass judgement. They listen to the needs of others and their own needs and can talk through those needs without letting their own biases or perceptions take over. 
    7. Generosity: Good leaders give others the benefit of the doubt, that their actions and intentions were well intended. 

    Brown’s elements of trust tie in well to psychological safety, what Amy Edmondson defines as “the belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes, and the team is safe for interpersonal risk taking.” Research shows that in order for teams to be successful, they must have psychological safety. 

    According to Brown, leaders have to be vulnerable. Vulnerability opens us up to opportunity. We have to be able and willing to explore the emotions behind our actions or lack of action. Another way to look at this is, as leaders we have to be emotionally intelligent. Emotional intelligence is the ability to understand our own emotions and how those emotions impact our actions, and how those emotions impact our ability to build relationships (both positively and negatively), and how our ability to read the emotions of others also impact our social connections. Research shows that leaders with high emotional intelligence are much more successful in leading others. 

    In Dare to Lead, Brown talks about learning to rise up as leaders. She breaks it down into three steps; the Reckoning, the Rumble, and the Revolution. The reckoning is understanding that there are emotions involved and exploring those emotions. This is also the first piece of emotional intelligence, understanding that you have emotions and exploring those emotions. It’s understanding that no emotion is right or wrong and that there shouldn’t be any guilt for those emotions. It’s just sitting with those emotions and feeling them. The second step is the Rumble. This is where you start to unpack the why behind the emotions and look for the missing information that may be creating those emotions. As Brown says, in the absence of data we all make up stories to fill in the gaps. In the Rumble, we start to question where those gaps are and what information we need. We start to deconstruct our self-made story. Brown defines her final step, Revolution, as “claiming authorship of our own stories and lives…It’s taking off the armor and rumbling with vulnerability, living into our values, braving trust with open hearts and learning to rise!”