Horizon Point Consulting

Category: Human Resources

We know HR. Read our Human Resources blog archives for stories and best practices from our work with real clients and personal experiences in the world of HR.

  • Returning to Work Safety and Legally

    Returning to Work Safety and Legally

    A recent study by The Conference Board shows that 31% of employees are not comfortable returning to work and 39% are only moderately comfortable. So how can employers ensure that they address employee concerns as they create guidelines for returning to the office while also ensuring those guidelines are compliant with state and federal regulations? 

    The Canadian Centre for Occupational Health and Safety created a Hierarchy of Controls that addresses five focus areas designed to help control the spread of Covid-19 as organizations return to the office, ordering protocols from most effective to least effective at containing the spread of the virus. 

     

    The Biden Administration had hoped to have 70% of Americans vaccinated by July 4th, however, that number has fallen far short at just 47.9%. Alabama is ranked 50th among the states plus D.C. with only 32.7% of the population fully vaccinated. Given the hesitation with getting vaccinated, it has led to a lot of questions from employers on how they can encourage employees to get the vaccination, how they can verify vaccination status, and whether or not they can mandate it. 

    • Can I mandate that employees get the Covid-19 vaccination? Yes, employers can opt to mandate vaccination. However, employers have to provide for ADA and religious accommodations. 
    • Can I require employees to show proof of vaccination? Yes, employers can require proof of vaccination. If you maintain a copy of proof of vaccination, make sure the documentation is maintained in the employee’s medical file and not their personnel file. If an employee loses their vaccination card, they can request proof of vaccination from the provider or by contacting the Alabama Health Department who maintains a vaccination database. 
    • Can I ask an employee why they are not vaccinated? Yes, however, I advise against it. Doing so could open you up to discrimination liability under ADA, ADEA, GINA, and Title VII. 
    • Can I create a separate mask requirement for employees who are vaccinated versus employees who are not? Yes, you can have mask requirements based on vaccination status, as well as other classifications that may make sense for your organization such as work location or department. However, creating your mask policy should include a statement that employees cannot question or confront employees who are/are not vaccinated and concerns regarding the wearing of masks should be directed to management/HR, not directly to the employee. Also, keep in mind that persons who have received their second dose of the vaccine are not considered fully vaccinated until at least two weeks after receiving the final dose. Vaccinated individuals can still contract Covid-19, however, their symptoms should be much milder and they can still pass Covid to others. 

    The key to easing employee concerns over returning to the office is to communicate. Be sure that employees are aware of the return-to-work policy implemented, and are able to ask questions, present concerns, and provide feedback or suggestions. Ensure that they know what steps and actions you have taken in the Hierarchy of Controls to help protect them. If you’ve inspected the ventilation system or had it cleaned, tell them. If you have added sanitizer stations or replaced bathroom fixtures with sensor-activated fixtures, tell them. You can create all of the possible controls and make all of the possible improvements to help protect your employees, but it will not ease their minds if they have no idea that you did it. 

    As you prepare to return to work, what controls and policies are you considering? 

  • 3 Ways to Think about levels of Pay + A “Bonus”

    3 Ways to Think about levels of Pay + A “Bonus”

    As you can tell from our previous post on all the hiring incentives that are out there now, it is a job-seekers market. 

    A recent LinkedIn update titled “Power shifts in a tight job market” summarizes what employers are doing to lure people to their open positions:  

    Employers eager to fill positions are offering more to attract talent — and they aren’t just upping pay or showing more flexibility — they’re also training workers and taking more chances on people who don’t meet traditional qualifications. “No experience necessary” roles have spiked by two-thirds compared to 2019, and posts offering starting bonuses have doubled, according to new data from Burning Glass Technologies. Meanwhile, minimum compensation requirements for people without college degrees are up 19%, per a Federal Reserve Bank of New York survey.

    There are multiple factors impacting the supply and demand for labor. But it’s not just filling positions, it’s also about keeping people in positions.  Particularly acute in production and manual service workers,  a Conference Board report cites strong retention challenges: 

    As we think about what can be done to impact the recruiting and retention challenges of today, it may be wise to think about how you think about pay. Obviously, employers are increasing their wages. Historically, as you can see from the chart below, wages have not kept pace with productivity, so rising wage rates may help to impact this equilibrium. 

    But until we think about pay differently, honing in on what each level of pay actually provides, we may not be able to effectively impact the outcome of increases in pay on worker recruitment and retention. 

    Adam Grant, in his podcast WorkLife provides a framework for three ways to think about wages in the episode titled “Why It Pays to Raise Pay” and I’ll add one more as a bonus that he and his guests allude to: 

    1. Living Wage: Living wages provide what people need to be able to provide for their basic needs.  Living wages allow people to meet the lower-order needs found in Maslow’s hierarchy of needs that you see below.  They provide for survival, and to a certain extent safety and security. (Other factors may impact safety and security needs being met beyond wages, as for example, safety not being present in a domestic violence situation of a wealthy family.) 

     

    Maslow would tell you in order for people to move up the hierarchy to things that provide motivation at work, you have to at least meet these lower order needs.  By and large, pay is what provides for this.

    What do you think a living wage is where you are? You can find out here: https://livingwage.mit.edu/

    For example, here is Alabama’s data: 

    Some of these numbers were quite surprising to me.  Be sure you look at the information on how these rates are determined here.  Although you (and I) may not agree with all the things included in this living wage, what I find most fascinating here is this data seems to imply that most people with children really need two incomes to reach a living wage by combining their incomes. In addition, it is evident through the data how much of an impact childcare costs play into the variability of a living wage.  

    On a personal note, a ministry we’ve started through the Neighborhood Christian Center is helping one single mother provide a bridge for childcare expenses right now until she can see if she qualifies for a government subsidy program to help pay for their childcare.  She has three young children and no support from their father.  The cost for the three of them to attend daycare so she can work would require her to make $13.50 an hour JUST to cover daycare costs. Her pay rate right now is $10.00 an hour.

     

    2. Fair Wage.   A fair wage, I simply define as a market wage rate by position.  Grant defines fair wage as “a living wage plus an amount that reflects an employees’ value for the organization or in the labor market.” 

    What is a fair wage where you live based on the positions you hire?

    Just to give an example, here is the market wage in Alabama for a Production/Manufacturing Operator as reported from one of the subscription market wage sources we use: 

    It is interesting to compare these market rates to the living wage rates.  Oftentimes, it appears as though market or “fair” rates are actually below living wage rates.  

    3. Generous Wage.  A generous wage Grant defines as a shift in thinking to what the purpose of pay actually is.  He says, “Instead of thinking of pay as a way to incentivize people, think of it as a symbol of how much you value them.  When people feel valued, they add value.” 

    It’s easier to get concrete data to define what a living and fair wage is, but a generous wage is so ambiguous.  It means different things to different people and to different organizations. 

    Grant provides a couple of concrete case studies in the podcast that can help you think through what generous wages look like. For example, PayPal committed to paying generous wages and defined it through measuring net disposable income, which is the money you have leftover after taxes and paying for all essential living expenses.  The threshold they set for employees was having 20% of their take-home pay be in this category.  

    It can’t be understated, however, that in order to work, generous pay has to be combined with a bonus. And that bonus isn’t monetary. 

    4. Necessary Bonus: Treat people holistically.  In order for a generous wage structure to work, it has to be predicated with the mindset of believing in people.  This isn’t throwing money at a problem in order to fix it.  That won’t work. One of Grant’s guests on the podcast states that companies who don’t or can’t get on board with this mindset, “Don’t believe in people. They don’t have the faith in a person’s ability to do a good job in their motivation and in their competence. And of course, in public companies, there is a tremendous emphasis on the short term and a lot of executive’s compensation is tied to short term performance….. Another thing that gets in the way is mediocrity is a lot easier to pursue than excellence.” 

    As she says, it’s easy to say, “Pay as little as you can.” That doesn’t take a lot of thought. But thinking about “how high you should go? How much should you empower your people?” takes a lot more work.

    I hope this framework of thinking about pay provided here through the WorkLife podcast will, at a minimum, provide some food for thought for you to pursue excellence instead of mediocrity. 

    What will you do next to lead your company’s compensation policy? 

     

    Author’s Note/Opinion:  

    I am a capitalist at heart. This isn’t about paying people wages that do not allow for-profits or distributing wealth in a socialist way, it’s about paying wages that maximize profits and it’s about businesses taking ownership of generous pay, not the government being in charge of redistribution of wealth.  

    If businesses took ownership in paying people at least a living wage and hopefully seeing how profits can be maximized with generous wages, the government wouldn’t have to interfere in the market to impact the widening income gap in America.  I believe that much of what is going on now when it comes to why people are sitting out of the labor market due to making as much or more on government subsidies, is a result of wages not having risen past the recession rates of 2008-2009 and that was more than ten years ago now.   

    It’s time for businesses to take an honest look at their role in the problem instead of pointing fingers at everyone else and trying to put out a fire that has been kindling for a long time with a shot in the dark sign-on bonuses and other short term bandaids to entice people to work but that totally negate the need to do the hard work of building better workplaces where people actually want to work and stay. 

    If you listen to the entire WorkLife podcast here, you’ll see that one company engaging in this type of excellence around pay mindset has seen their revenue triple, their customer base double, and their workforce growing by 70%.  Taking a thoughtful look at your wages just isn’t the right thing to do for people to be able to earn a living, it’s the smart thing to do when it comes to maximizing your business’ potential. 

     

  • To Offer or Not to Offer: Pros and Cons of Sign-on Bonuses Post Covid

    To Offer or Not to Offer: Pros and Cons of Sign-on Bonuses Post Covid

    Last week my colleague, Taylor, talked about the rise in hiring incentives that we are seeing in 2021. As of April, the national unemployment rate was 6.1%, and the rate in Alabama as of April was 3.6%, almost half of the national average. With the unemployment rate so low, employers who are now able to ramp their businesses back up post-Covid are finding it impossible to hire. So as Taylor mentioned, many are turning to offer sign-on bonuses or opportunities to win a prize such as a car in order to entice individuals to apply. It sounds great in theory, but what are the pros and cons of sign-on incentives that organizations need to consider? 

    Pros: 

    1. Sign-on bonuses get people in the door and on the clock. It’s definitely an attention-getter. Who wouldn’t like a few extra dollars in their pocket just for accepting a job? Promoting positions with a sign-on bonus is a great way to increase your application pool and find hires that may be needed just to keep your business running. 
    2. It can help you win over the competition. In the current market, employers are all fighting over the same candidates. What can you offer that the competition can’t? A higher sign-on bonus may be the tipping factor in which position a candidate applies to and/or accepts.
    3. It’s a one-time hit to your budget. Many employers are offering sign-on incentives right now because the market is so tight, and because they are trying to attract candidates away from an inflated unemployment payment. While offering a sign-on bonus may be putting a tight squeeze on many small businesses’ bank accounts, it’s a one-time hit to the financials. Once the hiring market shifts, which many predict will happen once states start eliminating the additional unemployment federal funds, employers will be able to cease the sign-on incentives and get their budgets back on track. 

    Cons: 

    1. Collect and bail. If your sign-on incentive is payable immediately upon hire, there is nothing keeping a new hire from collecting the sign-on bonus and walking away. If you defer payment until an employment period has been met (i.e. payable after 60 days of employment) that may be a deterrent to candidates if they can get an immediate payout elsewhere.
    2. Decreases employee morale. Offering sign-on incentives to new hires that weren’t available to current employees might not sit well with some. For example, you promote an employee to a shift supervisor and increase their hourly pay to $20/hour and then you hire an external candidate to fill a second shift supervisor position and pay them an hourly rate of $20/hour with a sign-on bonus of $500, how do you think that’s going to be viewed by the internal candidate you promoted? 
    3. Creates an unrealistic expectation for the future. While an employer offering a sign-on bonus views that as a one-time payment, many employees view it as a precursor of things to come. When review time comes around, they may expect an additional bonus or a pay increase equivalent to compensate them for the bonus they received the previous year. In other words, while the employer views the sign-on incentive as an “extra” many employees view it as part of a whole, including that amount when they calculate their annual salary. 

    While I’m not arguing for or against sign-on incentives, organizations need to evaluate the pros and cons when determining if it’s the right thing for the organization. While considering the option of offering sign-on incentives, organizations should also discuss how to incentivize current employees to help recruit talent. If your organization doesn’t currently offer referral bonuses, maybe that is an option to try first. The best candidates often come from current employees. 

    Is offering a sign-on incentive the right choice for your organization? 

     

  • Hiring Incentives in 2021

    Hiring Incentives in 2021

    I’ve heard it said SO many times recently. If someone isn’t working, they don’t want a job. Incentives are EVERYWHERE! Why people aren’t taking these incentives is a whole different topic for another day, but you can check out this recent LinkedIn article for reasons other than generous unemployment benefits: What’s going on in the labor market?

    While attending a conference last week, I spoke with a vendor from a staffing agency who was frustrated with his efforts to supply workers for their clients. He mentioned generous weekly bonuses and even better weekend bonuses. 

    I noticed one organization offering a chance to win a car when they signed on to work; Read about here: Shrimp Basket offering a new car as a hiring incentive. The job market is hot! Everyone is hiring and providing incentives! Cash bonuses, cars, flex time – you name it!

    Are you an employer struggling to find employees? Check out this article from Corridor Careers for ideas: 5 Incentives for Hiring (And Keeping) Employees Post Covid-19.

    In Alabama, additional unemployment payments will end soon. Let’s hope these incentives are still available so everyone can benefit & get back to work! 

    Compensation is just one piece of incentives and retention efforts. Did you know we do wage compensation studies at Horizon Point? Let us know if we can help!

  • Gender Themes in Assessments: Are women really more organized than men?

    Gender Themes in Assessments: Are women really more organized than men?

    At HPC, we facilitate assessments and coaching with leaders and potential leaders on a regular basis. We work with individuals from diverse backgrounds and with both males and females. Recently, we facilitated Work Behavior Inventory assessments with a group of organizational leaders. We noticed a trend in one component of the assessment – Conscientiousness. More often than not, males scored considerably lower in conscientiousness, which measures achievement, initiative, persistence, attention to detail, dependability, and rule-following. It is worth noting that most males were self-aware.

    This prompted our team to discuss the idea that maybe there are common gender trends in assessments. Pew Research Center surveyed and published some information that was enlightening.

    According to the research, which surveyed the public on their views of leaders, the public is much more likely to see women as being more organized than men, rather than vice versa. Fully 48% say being organized is more true of women than men, while only 4% say this quality is found more in men than women (46% say it’s true of both).

    Women were also seen as more compassionate. The survey also said:

    Women have an advantage over men when it comes to honesty—one of the most crucial leadership traits, according to the public. Some 29% of all adults associate honesty more with women than men, while 3% say honesty applies more to men than women. A majority of adults (67%) say this characteristic is displayed equally by men and women.

    Read more about Pew Research Center’s findings here: What Makes a Good Leader, and Does Gender Matter?

    Regardless if there is a trend or not, we think self-awareness is key for good leaders, both male and female. During our coaching sessions, we discuss trends in strengths and areas for development and work with leaders to create a game plan for development. 

    Do you have leaders or high-potential employees who would benefit from an assessment and coaching? Reach out to us today for more information.