Simco Blog

As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025: 1. AI is Changing the Hiring Game Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate. 2. Flexibility Isn’t Just a Perk Anymore Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being. 3. Wellness Goes Beyond Gym Memberships In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members. Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives. 4. Upskilling is a Competitive Necessity Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries. 5. Data is Driving HR Decisions HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively. Final Thoughts The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

As 2024 draws to a close, one question looms large for employers: What’s driving employees to switch jobs? While salary and benefits consistently top the list of reasons employees explore new opportunities, a deeper dive reveals the factors that prompt them to make the leap. Benefits: A Critical Factor in Employee Decisions For employees who changed jobs in 2024, benefits were the most significant factor influencing their decision. This highlights a gap in the quality of benefits many employers provide. While 401(k) matching is the most common benefit reported by respondents, other essential offerings are surprisingly scarce: Only 43% of respondents have health insurance through their employer. Just 35% report having access to paid time off (PTO). These numbers suggest that many companies are falling short of what employees now view as basic expectations. Flexibility: The New Workplace Priority When deciding to accept a new role, flexibility in work environment emerged as the top motivator for employees, surpassing salary for the first time. This represents a significant shift from 2023, when 68% of respondents prioritized salary above all else. Today, remote or hybrid work options are reshaping how employees evaluate job opportunities. Millennials and Gen Z, in particular, are driving this trend, as they place a high value on flexible arrangements that support their lifestyles. For Millennials, flexibility ranks as a key factor in staying with an employer—26% cited it as their primary reason for remaining in their current role. Moreover, 16% of employees across generations indicated that flexible work environments are the top reason they’re not seeking new opportunities. Flexibility Is More Than Just Remote Work Flexibility doesn’t stop at where employees work—it’s about how they work. Flexible hours on top of hybrid models and remote options can be critical to reducing burnout and improving job satisfaction. 48% of employees believe flexible work environments help prevent burnout. 40% view a lack of flexibility as a threat to positive company culture. 1 in 10 employees would leave their job solely to gain more flexibility. By offering adaptable work arrangements, employers can improve retention and create a workplace that meets the evolving needs of today’s workforce. The Role of Personalization in Benefits Younger generations are also calling for more personalized benefits packages. Standard, one-size-fits-all plans no longer meet their diverse needs. Here’s how generational preferences vary: Younger employees prioritize tuition reimbursement and student debt relief nearly twice as much as older generations. Boomers value vision benefits three times more than Millennials. These differences underscore the need for employers to offer tailored benefits that reflect the unique needs of their workforce. The Impact of Benefits Enrollment Stress A significant portion of employees (72%) find benefits selection stressful, with unclear information and difficulty comparing plans being the top pain points. This stress can have serious consequences for employers: More than half of employees indicated that a poor benefits enrollment experience would drive them to seek a new job. 50% said a negative benefits experience overall would prompt them to leave. To address these issues, companies can leverage technology that simplifies the enrollment process. Tools that offer real-time comparisons and transparent cost breakdowns can significantly enhance the employee experience (EX). Payroll Errors: A Major Employee Concern While benefits play a crucial role in retention, payroll processes remain a top area for improvement. A staggering 60% of employees reported being affected by payroll errors. This underscores the importance of getting the basics right when it comes to HR functions. Accurate and reliable payroll processes are fundamental to fostering trust and satisfaction among employees. Meeting the Evolving Needs of Employees To attract and retain top talent, employers must adapt to changing expectations. This means: Enhancing benefits : Offer comprehensive, tailored packages that address generational preferences. Improving technology : Simplify benefits enrollment and ensure payroll accuracy. Prioritizing flexibility : Embrace remote, hybrid, and flexible work models to support employees’ work-life balance. By addressing these areas, employers can build a competitive edge in recruitment and retention, ensuring they meet the needs of a diverse and tech-savvy workforce. Survey Insights The insights in this article are based on the "Voice of the Workforce" report by isolved, which analyzed responses from 1,127 full-time U.S.-based employees ranging from entry-level staff to C-suite executives. The survey was conducted online in Q3 of 2024.

The holiday season is a time for celebration, but it can also bring potential risks for employers. To ensure a safe and enjoyable experience for all employees, consider the following strategies to mitigate risks during your company’s holiday gathering. 1. Make Attendance Optional Clearly communicate that attendance at the holiday party is optional. It’s essential to create an environment where employees don’t feel pressured to attend, as this can lead to resentment or claims of discrimination. Ensure that managers understand the importance of not implying that attendance is linked to performance evaluations. 2. Keep It Non-Work Related To maintain the festive spirit, avoid any work-related activities, such as presentations or updates. Hosting the event off-site and outside of regular business hours can reinforce the idea that this gathering is a time for relaxation and fun. Allowing employees to bring a guest can also enhance the social atmosphere. 3. Set Clear Expectations Prior to the event, establish guidelines around respectful behavior and responsible drinking. Remind employees that company policies, including those regarding harassment and conduct, remain in effect during the festivities. 4. Monitor Alcohol Service Plan to manage alcohol service carefully. Ensure that no minors or visibly intoxicated individuals are served alcohol. Consider hiring professional servers or holding the event at a venue with trained staff who can refuse service to those who have had enough to drink. 5. Opt for a Cash Bar Hosting a cash bar can reduce liability, as it signals that the company is not providing alcohol directly. This approach may also limit consumption, as employees will be more mindful of their spending. 6. Limit Alcohol Intake Distributing a set number of drink tickets can help control the amount of alcohol each attendee consumes. While this tactic has limitations, it can be beneficial in promoting responsible drinking. 7. Choose Appropriate Entertainment Select entertainment and venues that foster a respectful and inclusive atmosphere. Avoid any activities that could be seen as provocative or offensive, as these settings can lead to uncomfortable situations, especially when combined with alcohol. 8. Plan for Safe Transportation Make arrangements for employees to get home safely after the event. Options may include providing ride-sharing services, public transportation vouchers, or organizing group transportation. Encouraging attendees to designate a sober driver at the beginning of the party can also be an effective strategy. 9. Offer Food and Non-Alcoholic Beverages Provide a variety of food and non-alcoholic drinks. This consideration not only helps ensure the safety of employees but also demonstrates that the company values all attendees, including those who may not wish to consume alcohol. 10. Act Responsively If an employee is visibly intoxicated and needs assistance getting home, don’t hesitate to arrange transportation. It’s crucial to prioritize employee safety over any reluctance to intervene, as taking swift action can prevent serious consequences. Conclusion By implementing these strategies, employers can create a holiday party that fosters enjoyment while prioritizing safety and respect. With thoughtful planning and proactive measures, your company’s celebration can be a memorable and positive experience for all employees. Happy holidays from Simco!

In April 2024, we shared the U.S. Department of Labor’s (DOL) announcement of a new overtime rule under the Fair Labor Standards Act (FLSA), setting higher salary thresholds for white-collar exemptions, which first took effect on July 1, 2024. Now, as the second increase approaches, employers should prepare for the final phase of the rule, effective January 1, 2025, when salary levels will again rise for executive, administrative, and professional employees, as well as highly compensated employees. What Are the New Salary Thresholds? Starting January 1, 2025, employers will need to ensure that salaries meet the new DOL requirements to maintain overtime exemptions: Executive, Administrative, and Professional (EAP) Employees: To qualify for the overtime exemption, EAP employees must now earn a minimum salary of $58,656 per year (or $1,128 per week). Highly Compensated Employees (HCE): HCEs must earn at least $151,164 annually to maintain their exempt status under the new guidelines. These changes aim to ensure fair compensation and proper classification for employees, helping prevent wage and hour violations. Action Steps for Employers While there may be challenges ahead, employers must take proactive steps to get ready for the rule’s implementation as scheduled. Here are some recommended actions: Evaluate Your Workforce and Classifications: Review exempt roles, including job responsibilities and salary levels, to determine how upcoming changes will affect your organization and identify any necessary adjustments. Seek Legal Guidance: Collaborate with your legal team to understand the new rule's implications and ensure compliance with state laws. Prepare for Changes: Develop strategies for potential reclassifications, including necessary training and clear communication plans to inform affected employees about changes to their status and compensation. Final Thoughts As you prepare for the upcoming changes in the DOL's overtime rule, take this opportunity to review and optimize your compensation practices. Ensuring that employee classifications and salaries align with the new thresholds will help safeguard your organization against compliance issues and promote a fair work environment for all employees. If you need assistance or have questions, contact Simco !

The onboarding process is critical for any organization. It sets the tone for a new hire’s experience, influences employee retention, and ultimately contributes to the overall success of the company. A well-structured onboarding process can help new employees feel welcomed, supported, and equipped for their roles. Leveraging Human Capital Management (HCM) software can enhance these processes, ensuring a seamless and efficient onboarding experience. Here are some of the top benefits of improving your onboarding process and how HCM software plays a pivotal role. 1. Faster Time to Productivity One of the most significant advantages of a streamlined onboarding process is the reduction in time it takes for new hires to become productive. By automating routine tasks such as document collection, training schedules, and policy acknowledgment, organizations enable new employees to focus on learning their roles rather than navigating administrative hurdles, allowing them to contribute to their teams more quickly. 2. Improved Employee Retention Research shows that effective onboarding can increase employee retention rates by up to 82%. By using HCM solutions to create a structured program, companies can provide consistent experiences that make new hires feel valued and engaged. Features such as progress tracking and feedback loops within the system allow managers to monitor integration and satisfaction levels, making it easier to address any concerns promptly. 3. Enhanced Compliance and Risk Management Compliance is a crucial aspect of onboarding, especially for industries with specific regulations. HCM technology ensures that all necessary training and documentation are completed before the employee starts their role. Automated reminders and tracking features help prevent any oversight, reducing the risk of non-compliance and potential penalties. 4. Personalized Training and Development With the help of innovative tools, organizations can tailor onboarding experiences to meet the unique needs of each employee. Advanced HCM software can analyze skills, learning styles, and role requirements to recommend personalized training modules. This individualized approach helps employees feel supported and valued, leading to higher engagement levels. 5. Consistent Communication and Engagement Effective communication during the onboarding process is essential for setting expectations and fostering relationships. The right software provides tools for consistent outreach, such as automated welcome emails, reminders for upcoming meetings, and resources for new hires to access at any time. This ongoing engagement helps build rapport between new employees and their teams, contributing to a more cohesive work environment. 6. Streamlined Document Management Onboarding often involves a significant amount of paperwork, from tax forms to company policies. A centralized document management system allows new hires to complete and submit necessary forms electronically. This not only saves time but also reduces the likelihood of errors or lost paperwork, ensuring a smooth transition into the organization. 7. Data-Driven Insights for Continuous Improvement Advanced analytics provide valuable insights that can help organizations assess the effectiveness of their onboarding processes. By using HCM software to track metrics such as employee satisfaction, retention rates, and training completion times, companies can identify areas for improvement. This data-driven approach enables continuous refinement of onboarding strategies, ensuring they remain effective and relevant. 8. Creating a Strong Organizational Culture A positive onboarding experience is an opportunity to instill the company’s values and culture in new employees. HCM technology can facilitate cultural training and integration, helping new hires understand their role within the broader context of the organization. By showcasing the company culture early on, employers can foster a sense of belonging and alignment with organizational goals. Investing in a better onboarding process is crucial for any business looking to enhance employee satisfaction and retention. HCM solutions provide the tools and resources necessary to streamline onboarding, making it more efficient and effective. By leveraging technology to create seamless processes, organizations can ensure that new hires feel welcomed, supported, and prepared for success from day one. As a result, companies can build a stronger workforce and cultivate a positive organizational culture that drives long-term success. Contact Simco to learn more about how our solution can transform your organization's onboarding strategy.

As we move into October, businesses have a unique opportunity to focus on safety in the workplace and beyond. October is Fire Prevention Month, with Fire Prevention Week running from October 6–12, 2024. This year’s theme, announced by the National Fire Protection Association® (NFPA®), is “Smoke alarms: Make them work for you!” – an essential reminder for both employers and employees to prioritize fire safety measures in all environments, whether at work or at home. Why Fire Safety Matters for Your Business For employers, fire safety is more than just a legal requirement; it’s about ensuring the well-being of employees and safeguarding company property. Fires can happen anywhere, at any time, and while workplace fire drills and safety measures are critical, it’s equally important that employees extend these safety practices to their homes. According to the NFPA, three out of five fire-related deaths in the U.S. occur in homes without working smoke alarms or where no smoke alarms are present at all. Ensuring that your employees are educated about the importance of fire safety, both in the workplace and at home, can be life-saving. Fire Prevention Week 2024: What Employers Should Know This year’s Fire Prevention Week campaign aims to raise awareness about the life-saving power of smoke alarms, which, when properly installed and maintained, reduce the risk of dying in a home fire by over 50%. For business leaders, it's a great time to encourage fire safety awareness through simple steps employees can take at home. Here are some key takeaways from this year’s theme: Install smoke alarms in every bedroom, outside sleeping areas, and on each level of the home. Test smoke alarms monthly by pressing the test button. Replace smoke alarms every 10 years or sooner if they aren’t functioning correctly. Consider sensory needs: Make sure smoke alarms meet the needs of everyone in the household, including those with disabilities. What Businesses Can Do This Month Fire Prevention Week and Month isn’t just about personal home safety—it also extends to the workplace. Business owners can take proactive steps to create a fire-safe environment and ensure employees are prepared in case of an emergency. Here’s how you can get involved:  Review Workplace Fire Safety Protocols Make sure your employees are familiar with your workplace fire prevention measures, exit routes, and safety equipment locations (such as fire extinguishers). Consider conducting a fire drill or a safety walkthrough this month. Share Fire Safety Resources Direct your employees to the NFPA's Fire Prevention Week resources on NFPA.org . These tools offer educational materials that your team can easily access to stay informed about fire prevention practices. Encourage Home Fire Safety Emphasize the importance of fire safety beyond the workplace by encouraging your employees to check the smoke alarms in their homes. You can distribute helpful reminders or even host a fire safety awareness session to educate your team on key best practices. Create a Culture of Safety Fire safety should be an ongoing conversation in your business, not just during October. By instilling a culture of safety, you ensure that both your employees and your workplace remain protected year-round. Conclusion Fire Prevention Month is a timely reminder of the importance of safety—both in the workplace and at home. As a business owner, you play a critical role in encouraging awareness and proactive measures that could save lives. Join the nationwide effort this October by revisiting your workplace fire safety protocols and sharing essential fire prevention tips with your employees. Together, we can create safer environments, ensuring that whether at home or work, everyone is prepared and protected. For more information and resources on Fire Prevention Week and the 2024 theme, “Smoke alarms: Make them work for you!”, visit the official NFPA site at fpw.org .

The Importance of Stay Interviews Stay interviews aim to discover what makes an employee want to work—or stop working—for the organization and identify any aspects of the company that need to be addressed to make working there more attractive. Not only can stay interviews enlighten small businesses about issues before they manifest into employee departures, but they also help employees feel heard, showing them that their employer cares enough about retaining them to improve workplace operations. Stay Interview Best Practices for Employers Impactful stay interviews can help maximize employee satisfaction, engagement, and retention. Consider the following best practices for stay interviews: Establish Clear Objectives: Before conducting stay interviews, employers should establish clear objectives and goals. It’s important to determine what information should be gathered from employees and how it will be used to improve engagement and retention strategies. Examples of clear objectives might include: Identifying specific factors that contribute to employee job satisfaction and areas for improvement. Understanding employee career aspirations and development needs to tailor growth opportunities. Integrate Stay Interviews into Onboarding: Stay interviews aren’t just for the company’s tenured employees; they can be incorporated into the 30-, 60-, and 90-day milestones of employee onboarding. By gauging employee satisfaction early on, small businesses can proactively address any issues and make necessary adjustments. Create a Safe and Confidential Environment: Employees should be assured that their feedback will be kept confidential and that there will be no negative repercussions for sharing their thoughts and concerns. Train Interviewers: Ensure that managers and HR professionals conducting stay interviews are adequately trained in effective communication and active listening skills. This helps in building trust and encouraging honest feedback from employees. Ask Open-ended Questions: Open-ended questions can prompt employees to freely share their thoughts, feelings, and experiences. Examples of open-ended questions include: Are there any challenges or obstacles you’re currently facing in your role? How can we better support your professional growth and development? What would cause you to consider leaving the organization? Identify Actionable Insights: After conducting stay interviews, feedback must be analyzed to identify common themes, trends, and actionable insights. This analysis can reveal underlying issues that need to be addressed to improve employee satisfaction and retention. Follow Up and Track Progress: Following up with employees after stay interviews is crucial to communicate any actions taken based on their feedback and provide progress updates. This demonstrates that the organization values their input and is committed to making improvements. Additional Tips for Navigating Stay Interviews Navigating stay interviews effectively requires careful planning and execution. Here are some additional tips to enhance the stay interview process: Schedule Regular Stay Interviews: Instead of waiting for an employee to reach a critical point, schedule stay interviews at regular intervals. This proactive approach helps in continuously monitoring employee satisfaction and addressing issues promptly. Tailor Questions to Individual Roles: Customize the questions based on the specific roles and responsibilities of employees. This ensures that the feedback is relevant and provides deeper insights into role-specific challenges and opportunities. Encourage Honest Feedback: Foster a culture where honest feedback is valued and appreciated. Encourage employees to share their genuine thoughts and feelings, even if they are critical, to gain a true understanding of their experiences. Document and Share Success Stories: Share success stories where stay interviews have led to positive changes within the organization. This can motivate other employees to participate actively and provide valuable feedback. Stay interviews represent a proactive approach to employee retention, as they allow small businesses to gain valuable insights into the factors influencing job satisfaction and commitment. By implementing best practices, organizations can strengthen employee engagement, improve retention rates, and foster a positive workplace culture.

By staying current on trends, HR professionals can plan for changing compliance requirements, navigate new technologies and adapt to employee needs. The middle of the year is a great time to evaluate HR progress, recalibrate any efforts to close the year strong and inform forward-thinking strategies to maintain a competitive edge moving into 2025. This blog article highlights seven HR trends to follow during the second half of 2024. 1. Employee Attraction During the time of record-high labor figures in 2021 and 2022, workers used their leverage to demand higher wages, better benefits and more career development opportunities and were willing to change employers to do so. Today, labor metrics show that the worker-friendly employment landscape has recovered to give more leverage back to employers. However, attracting employees can still be difficult, particularly for industries with high turnover rates and roles that require niche skill sets. 2. Pay Transparency Although there is no comprehensive federal pay transparency law in the United States, around a quarter of all workers are covered under pay transparency laws. The number of employees covered by such laws continues to grow each year, with more laws taking effect in 2025. Not all organizations are covered by these rules, but more employers are pursuing transparent job postings to stay ahead of requirements and win over workers. 3. Artificial Intelligence (AI) The use of AI has gained even more traction this year. Research from Microsoft published in May 2024 found that the use of generative AI had doubled in just the most recent six months. Today, around 75% of global knowledge workers use AI. Lingering concerns remain as more organizations implement AI into their day-to-day operations and equip workers to use tools to enhance their job performance. 4. Well-being and Productivity One of the most notable proactive wellness trends is how employers tie this concept to employee productivity. Data consistently shows that employees with a poor sense of well-being are less productive. Research from Gallup found that $322 billion in turnover and lost productivity costs globally are due to employee burnout. Other factors, such as poor physical health, can drive workers to miss more work. 5. Learning and Development (L&D) More employers are concerned that they cannot train their employees fast enough to keep up with technology development, so they are shifting their core L&D focus to future-proofing. The current workplace requires frequent learning and relearning of new skills. To ensure workers’ skills keep up with workplace demands, employers are upskilling technology abilities and developing transferrable soft skills. 6. Voluntary Benefits According to Zywave’s 2023-24 Attraction and Retention Benchmarking Overview, 69% of survey respondents identified offering competitive health care benefits amid rising costs as one of their organization’s top three most significant attraction and retention challenges. Almost 16% of respondents plan to expand voluntary benefits options in the next year, and most respondents (64.75%) offer voluntary benefits as part of a strategy to improve employee attraction and retention. 7. Election Season Federal, state and local elections are scheduled for Tuesday, Nov. 5. During recent election cycles, politically charged environments have created contention in the workplace (e.g., inappropriate workplace behavior, social media activism, free speech disputes and dress code controversies). Employers in states without formal voting requirements often offer lenient voter leave options. A well-planned approach can help deter inappropriate behavior and use the election cycle to engage employees. Contact Simco today for more information or for your copy of the 2024 Midyear HR Trends to Monitor.

In today’s fast-paced and ever-changing workplaces, employee retention is at the top of many employers’ minds. As such, savvy employers are offering continuous learning and development (L&D) opportunities to make their organizations attractive places to work and stay. Employers who invest in robust L&D programs not only enhance their workforce’s skills and knowledge but may also boost employee engagement, retention and overall organizational performance. This article explains key elements of an L&D program, highlights common pitfalls to avoid and outlines best practices for developing a sustainable program. Defining a Successful Program A successful L&D program aligns with the organization’s strategic goals and addresses the specific needs of its employees. It is comprehensive, covering a range of learning styles and methods to ensure inclusivity and effectiveness. With this in mind, here are the key elements of L&D programs: Business goal alignment —An L&D program should support the company’s mission, vision and strategic objectives. This alignment ensures that the skills and knowledge gained through this program directly contribute to the organization’s success. Needs assessment —In general, employers pursue L&D to upskill employees, address skills gaps and labor shortages, develop talent for highly skilled positions or leadership, and retain motivated employees seeking career growth. Employers should conduct a thorough analysis to identify the skills and knowledge gaps within the organization. Such assessment should involve input from various stakeholders, including employees, managers and executives. Diverse learning methods —It’s important to incorporate a mix of learning formats, such as career development plans, e-learning, workshops, on-the-job training, mentoring and coaching. Diversity in learning methods caters to different employee learning preferences and needs and helps maintain engagement. Measurable outcomes —As with any workplace initiative, it’s critical to establish clear, measurable goals for an L&D program. Metrics such as employee performance improvements, promotion rates and retention rates can help gauge a program’s effectiveness. Continuous improvement —L&D is not a “one-and-done” type of effort. To ensure a program remains relevant and effective, employers should regularly review and update their programs based on feedback and changing organizational needs. Common L&D Mistakes Despite an organization’s best intentions, some mistakes can hinder the success of an L&D program. Here are some common pitfalls to avoid: Not aligning with business goals —An L&D program that does not align with the organization’s objectives can result in wasted resources and minimal impact on performance. Employers should always ensure that their programs support the broader strategic goals. Using a one-size-fits-all approach —A lack of personalization can lead to disengagement, so avoid using a uniform approach for all employees. Individual learning needs and preferences vary, and programs should reflect that. Neglecting feedback —Failing to gather and act on feedback from participants can prevent a program from evolving and improving. Employers should regularly solicit employee feedback to make necessary adjustments. Ignoring the importance of soft skills —While technical skills are important, soft skills (e.g., communication, resilience, accountability and problem-solving) are equally critical. Impactful L&D programs address both hard and soft skills. Evaluating insufficiently —Without proper evaluation, it’s challenging to measure the effectiveness of an L&D program. Robust evaluation methods—such as employee engagement surveys, manager and employee feedback, and key performance indicators—can assess a program’s impact and identify areas for improvement. L&D Best Practices for Employers Implementing a successful L&D program requires careful planning and execution from organizations. Best practices for employers to consider include the following: Foster a learning culture. Employers should encourage a culture where learning is valued and supported at all levels of the organization. This can be achieved by promoting sustained learning and providing employees with the necessary resources and time to engage in L&D activities. Leverage technology. Learning management systems (or LMSs) and other digital tools can help deliver and manage training programs. Technology can also facilitate personalized learning experiences and provide valuable data for measuring program effectiveness. Engage leadership. Company leaders and managers should be actively involved in the L&D program; their support and participation can drive employee engagement and demonstrate the importance of continuous development. Personalize programs to individual needs. It’s critical to customize learning paths based on individual employees’ roles, career aspirations and learning styles. Personalized learning experiences can significantly enhance motivation and retention. Promote collaboration. Employers can encourage collaborative learning through group projects, peer mentoring and team-based training sessions. Collaboration fosters a sense of community and allows employees to learn from each other’s experiences. Summary Employers of all sizes are building L&D programs, but not all programs are alike. Establishing a successful L&D program is a strategic investment that can yield significant returns for employers and enhance their workforce’s capabilities and success. As the business landscape evolves, a commitment to ongoing L&D will remain a critical factor in maintaining a competitive edge in the race for top talent. Contact us today for more workplace guidance.

Noncompete agreements are often viewed as a double-edged sword in hiring and employee management. While they may help safeguard proprietary and confidential information, they can pose hiring challenges. As such, employers must carefully navigate the complexities of noncompete clauses, balancing their protective benefits with the need to maintain a motivated and mobile workforce. As regulatory landscapes evolve, companies may need to reevaluate their reliance on noncompete agreements and explore alternative strategies for safeguarding their competitive interests. This article explores noncompete agreements, their impact on employers and considerations when drafting them. Overview of Noncompete Agreements A noncompete agreement, also known as a restrictive covenant agreement, is a contractual term between an employer and a worker. It blocks the employee from working for a competing employer or starting a competing business, typically within a certain geographic area and period of time after their employment ends. These agreements can protect companies from losing valuable employees and confidential information to competitors and help maintain competitive advantages. Noncompete agreements are more prevalent in industries such as technology, sales and health care, where sensitive information and specialized skills are crucial. However, enforceability varies by jurisdiction. Noncompete Bans The enforceability of a noncompete agreement is generally determined by state and local legislatures and courts. Some states impose strict limitations or outright bans on noncompete clauses. On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule prohibiting employers from entering into or enforcing noncompete clauses with most employees. Scheduled to take effect on Sept. 4, 2024, the final rule applies to noncompete agreements with all current and former workers, whether full-time or part-time, including but not limited to employees, independent contractors, interns, externs and apprentices. However, employers should note that the FTC ban will only prohibit post-employment noncompetes. Employers may still restrict current employees from engaging in competitive activities. The FTC stated that it aims to promote competition by protecting workers' freedom to change jobs, increasing innovation and fostering new business formation. The Hiring Impact of Noncompetes The labor market likely will continue to be competitive. Without a noncompete, workers have more freedom to move to another company in the same industry without legal repercussions. As a result, the fight for talent could get even tougher. As with any workplace decision, using noncompete agreements comes with advantages and drawbacks. Consider the following pros of noncompetes as they relate to employee attraction and retention: Increased employee retention —Noncompetes discourage employees from leaving the organization and working for competitors, which can result in lower turnover rates. Organizations invest heavily in their workers, including onboarding, learning and professional development resources. Maintained competitive advantage —Noncompetes aim to protect sensitive business information, including trade secrets and customer base. Organizational success will likely be achieved by safeguarding company information and relationships that differentiate them from the competition. As such, top talent wants to work for a leading company. Conversely, here are some talent-related cons of noncompetes for companies to consider: Deterrent to candidates —Job candidates may have concerns about the necessity of noncompetes, causing them to remove themselves from consideration or reject offers. Increased legal liability and costs —Noncompetes are employment contracts with complex rules. Organizations that impose unfair restrictions could face employee lawsuits. Additionally, it can be costly for employers to enforce such agreements. Employee lawsuits also have the potential to damage the employer’s reputation, impacting attraction and retention. Employer Considerations First, employers should consider whether a noncompete agreement is legally enforceable in their state. Legal counsel can advise employers on how enforceable a noncompete agreement would be in the company’s location and industry. Employers can also assess any industry-specific concerns. For example, companies with patented technologies or workers in sales roles may use noncompete agreements. Organizations can also research whether industry competitors require noncompetes with their employees to strengthen attraction and retention efforts. It can be beneficial to remain consistent with the industry, which levels the playing field when competing for talent. Aside from legality, employers can also consider if noncompete agreements are fair and reasonable to departing employees. When employees who have signed a noncompete leave the company for another job, it’s important for the agreement not to hinder their ability to make a living. Employees may take a new job for many reasons, such as a career progression the current employer couldn’t offer, greater compensation and a more suitable location. Employers should review the terms of their noncompetes to ensure fairness even if the employee is moving to a competitor. Lastly, being upfront about whether an organization requires new hires to sign noncompete agreements is important. Include that information in job postings or communicate it immediately with candidates so the clause doesn’t become an issue later in the interview or hiring process. Companies may lose good candidates due to noncompetes, but it’s better to have the conversation early on to avoid wasting the time of candidates and recruiting teams. Employers may also keep candidates formerly employed by competitors in the pipeline and reconnect with them after their noncompete has expired. Summary Employers need to take many considerations into account before implementing a noncompete agreement while also staying up to date on the latest rules and laws. Furthermore, since noncompete agreements are often the subject of litigation, employers should consult their legal counsel before making any decisions. Contact Simco for more workplace guidance.

Around 27% of U.S. workers quit their jobs in 2023, which, according to a common turnover calculation, cost employers nearly a trillion dollars to replace. Unfortunately, turnover is expected to climb this year, and labor experts predict another form of the “Great Resignation” to take place as workers choose to leave their jobs. Employee retention remains a critical challenge this year for employers across industries. A LinkedIn survey found that 85% of workers plan to look for a new role in 2024, which is almost a 20% jump from the previous year. The trend particularly applies to younger generations, including Generation Z, millennials and Generation X. While today’s workers see both the possibilities and risks of job or career changes, many are choosing to explore new opportunities and leave their current employers. This article outlines tips for employers on employee retention. Reasons Why Employees are Quitting In the past few years, many workers have joined the mass exodus from the workplace. In general, workers are leaving employers due to the following: Inadequate salaries Limited career advancement Work-life imbalance Health and family issues General unhappiness with management or the company Employees are taking more ownership of their happiness, finding the job that’s the best fit for them while still fulfilling other personal responsibilities. Retention Best Practices for Employers As the job market evolves and employee expectations shift, companies must adopt innovative strategies to keep their talent engaged and satisfied. Consider these strategies for retaining employees: Foster a positive work culture. A positive workplace culture is foundational to employee retention, regardless of the current labor market. Employees are more likely to stay with a company where they feel valued, respected and part of a cohesive team. Foster an inclusive environment that celebrates each employee and promotes collaboration. Employers can regularly recognize and reward employee achievements to boost morale and create a sense of belonging. Offer competitive compensation and benefits. In 2024, competitive compensation goes beyond salary. Employers must provide comprehensive benefits packages that address the needs of their workforce. This may include health and wellness programs, retirement plans, paid time off (PTO) and flexible working arrangements. Provide career development opportunities. Employees are likelier to stay with a company that invests in their professional growth. Employers can provide opportunities for skill development, training, career advancement, mentoring and career pathing. Embrace flexibility. Flexibility has become a key factor in employee retention. Working remotely or having flexible hours can significantly enhance job satisfaction. Hybrid and remote work models allow employees to effectively balance work and personal life. Promote work-life balance. Promoting work-life balance is essential for preventing burnout and maintaining employee well-being. Encourage employees to take breaks, use their PTO and disconnect after work hours. Cultivate strong leadership. Effective leadership is crucial for employee retention. Leaders should be approachable, empathetic and transparent. Leadership training can help ensure managers are equipped with the skills to support their teams effectively. Authentic and strong leaders can inspire and motivate employees, fostering loyalty and commitment to the organization. Encourage open communication. Open and transparent communication is vital for a healthy workplace. Encourage employees to share their ideas, concerns and feedback without fear of retribution. Transparency builds trust and can prevent misunderstandings and conflicts. Solicit and act on employee feedback. Regularly soliciting employee feedback can help identify potential issues before they escalate. Employers can gather input from exit interviews, surveys, suggestion boxes and oneon-one meetings. More importantly, when organizations act on feedback, it demonstrates to employees that their voices are heard and valued. This transparency can significantly improve job satisfaction and retention. Enhance employee engagement. Engaged employees are more likely to stay with their employers. Enhance engagement by involving employees in decision-making processes, providing meaningful work and creating opportunities for social interaction. Employers can organize team-building activities and company events to strengthen relationships and foster a sense of community. Recognize and reward performance. Regular recognition can significantly boost employee morale and retention. Employers may consider a recognition program that acknowledges both individual and team achievements. Various forms of recognition exist, such as bonuses, awards, public acknowledgment and career advancement opportunities. Regardless of the reward, consistent appreciation can reinforce positive behaviors and commitment. Invest in employee well-being. A healthy workforce is more productive and loyal. Furthermore, employee well-being is a holistic concept that includes physical, mental and emotional health. More than ever before, today’s workers need resources and programs that support overall well-being, such as mental health days, counseling services, fitness programs and stress management workshops. To be impactful, employers should also regularly monitor the effectiveness of their retention strategies and be prepared to adapt as needed. Summary Retaining employees in 2024 requires a multifaceted approach that addresses workers’ diverse needs and expectations. As more workers consider exploring new job opportunities, savvy employers can implement various strategies to not only enhance employee rete ntion but also contribute to a more engaged and productive workforce. Employers should continue to monitor trends and consider strategies to retain and attract talent in response to the changing dynamics of the workforce. Contact Simco today for more workplace guidance.

On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) published its final guidance on harassment in the workplace. The guidance explains how the EEOC may enforce equal employment opportunity (EEO) laws against an employer when workplace harassment is alleged or suspected.  Background The EEO laws are a collection of federal laws that prohibit covered employers from discriminating against or harassing individuals based on certain characteristics. These characteristics, also known as protected traits, include race, color, religion, national origin, sex (including sexual orientation, gender identity and pregnancy, childbirth, or related medical conditions), disability, age (40 and older) and genetic information (including family medical history). Between 1987 and 1999, the EEOC issued several documents designed to guide agency staff members who investigate claims of harassment under EEO laws. The agency issued proposed enforcement guidance on these topics on Oct. 2, 2023. This final guidance consolidates and replaces the earlier documents. Final Guidance In its final guidance, the EEOC provides several updated examples to reflect a wide range of modern scenarios and address emerging issues, such as how social media posting and other online content may contribute to a hostile work environment. It also incorporates current case law, including the U.S. Supreme Court’s 2020 decision in Bostock v. Clayton County, that discrimination on the basis of sexual orientation or gender identity constitutes sex discrimination in violation of Title VII of the Civil Rights Act of 1964 (one of the EEO laws). The final guidance focuses on three main considerations to analyze in any workplace harassment claim: Whether the conduct is based on the individual’s legally protected trait; Whether the conduct resulted in a hostile work environment or explicit change to the terms or conditions of employment; and Whether there is any legal basis for holding the employer liable. The guidance explains that an employer may be liable for workplace harassment under several legal standards that often depend on the harasser’s relationship with the employer. The guidance also describes preventive and corrective actions an employer may take to help establish defenses against liability for workplace harassment. Employer Takeaways Although the final guidance is not legally binding, it provides insight into how the EEOC will investigate harassment claims. The EEOC also identifies a number of steps employers can take to prevent harassment, such as: Establishing a clear, easy-to-understand anti-harassment policy; Having a safe and effective procedure that employees can use to report harassment, including having more than one option for reporting; Providing recurring training to all employees (including supervisors and managers) about the company’s anti-harassment policy and complaint process; and Taking steps to ensure the anti-harassment policy is being followed and the complaint process is working. Employers should consider reviewing and familiarizing themselves with the updated guidance. For additional information, employers may review other EEOC resources regarding workplace harassment, including: EEOC Harassment Home Page EEOC Sexual Harassment Home Page Summary of Key Provisions : EEOC Enforcement Guidance on Harassment in the Workplace Questions and Answers for Employees : Harassment at Work

Highlights The CDC has dropped the five-day isolation recommendation for COVID-19-positive individuals. People are now advised to stay home until they have been fever-free for 24 hours and symptoms are improving. Not all COVID-19-specific employee leave laws have expired. Federal and state family and medical leave laws, and state and local sick leave laws, will often apply to employees with COVID-19. Important Date March 1, 2024: The CDC revised its isolation recommendations for people with COVID-19. The Centers for Disease Control and Prevention’s (CDC) new guidance that individuals no longer need to isolate from work for five days following a positive COVID-19 test may raise questions with employers about what leave they are required to provide to employees with the virus. The revised guidance, issued March 1, 2024, advises that people who are sick with COVID-19 or another respiratory virus stay home and away from others. However, isolation is not necessary if an individual with COVID-19 has been fever-free for at least 24 hours without medication and their symptoms are improving. The guidance states that the period people should stay home and away from others could be shorter, the same or longer than the previous guidance for COVID-19 isolation. The new guidance is not applicable to health care settings, which have their own CDC recommendations . From an employee leave perspective, employers should note that while most COVID-19-specific employee leave laws have expired, some—like New York state’s—are still in effect. Moreover, state and local paid sick leave laws that are not specific to COVID-19 apply to illness generally, including for a worker experiencing COVID-19 symptoms like fever. Some of these laws have specific provisions concerning communicable disease. In addition, sick workers may be eligible for leave for their own illness or to care for an ill family member under the federal Family and Medical Leave Act or similar state family and medical leave laws. Action Steps Employers should familiarize themselves with any remaining state or local COVID-19 leave laws that apply to them. They should also ensure compliance with non-COVID-19 federal, state and local leave law mandates, as they may apply to workers with COVID-19.

Employers of all sizes continue to face attraction and retention challenges. Successful efforts to win over workers can require significant time and carry high costs, but failing to attract talent or losing existing employees is particularly costly for small businesses. Unfortunately, small businesses often don’t have the excess resources to invest in attraction and retention efforts in today’s labor market, making it difficult to compete with larger organizations. Along with the costs associated with recruiting, hiring and training, attraction and retention struggles can significantly impact workplace operations and culture, especially in a smaller environment. For these reasons, small businesses cannot afford to ignore their attraction and retention efforts. This article outlines talent challenges faced by small businesses and practical strategies to overcome them. Attraction and Retention Tips Economic pressures continue to make it challenging for small businesses to hold on to their best talent and appeal to other top-tier workers. Regardless of size, employers are straining to keep up with workers’ compensation expectations and demands. Furthermore, rising health care costs are stressing employees and employers alike. Workers are looking for robust health care coverage and affordable and quality care options from their employers, while employers consider ways to move away from cost-shifting to employees. Aside from expense concerns, employers are also experiencing a growing skill gap as many workers join organizations without all the desired skills. However, there are ways that small businesses can overcome these hurdles in the race for talent. Consider the following attraction and retention strategies: Select the right benefits. Health insurance is valued highly by workers. Simply offering health insurance can give small businesses a competitive edge against those that don’t. However, health insurance is just one component to consider as part of a benefits package; small businesses should tailor their benefits offerings to meet the specific demands of current and prospective employees. The best benefits vary for each organization, but they can be used to attract and retain employees. In general, some popular benefits include competitive health insurance, leave benefits, performance benefits, retirement planning and professional development opportunities. Embrace technology and generative artificial intelligence (AI) tools. Small businesses often have limited resources for recruiting, hiring and onboarding practices, so it’s important to be as efficient as possible. Leveraging cost-effective technology, such as applicant tracking systems and digital tools, can help small businesses improve these practices. Generative AI can also help workers spend less time on tedious tasks, such as manual data entry. In turn, employers’ costs may be reduced, and they can focus on finding new employees rather than dealing with time-consuming and tiresome recruiting tasks. Expand recruitment reach. If an employer isn’t receiving the number of quality candidates they desire, it’s worth strategizing to grow their talent pool. Expanding an organization’s online presence is a good start. This may include creating and maintaining multiple online profiles, posting content regularly and informing prospective workers of job opportunities. Focus on developing employees. Attraction and retention challenges aren’t always about bringing enough employees through the doors; today, many small businesses face skills gaps. Recruiting specific skills may close these gaps, but this solution overlooks existing employees. As such, small businesses should consider how they can bridge skills gaps in-house. Some strategies may include providing career pathing plans, creating mentorship programs, offering microlearning workshops to focus on specific skills, or paying for employees to attain certifications or further their education outside the workplace. Offer a flexible work environment. Many of today’s employees worked remotely during the COVID-19 pandemic and would prefer to work from home. Flexible work arrangements, such as work-from-home arrangements and hybrid or flexible schedules (including flex time or days), can help small businesses maintain a competitive edge over employers who don’t offer such flexibility. Create a strong workplace culture. Small businesses should aim to foster a desirable workplace. A healthy company culture can help retain employees and, in turn, create an environment that’s attractive to applicants. Many small businesses are currently focusing on creating a strong workplace culture by training managers to identify employee burnout, designate fair workloads and support workers’ needs. Summary Like many organizations, small businesses face several challenges with attracting and retaining the employees they need. Fortunately, small businesses can leverage these strategies to help them compete in today’s talent market. Contact Simco today for more small business guidance.

Employee handbooks are important tools for establishing employee expectations, addressing workplace issues and defending against potential lawsuits. Failing to update the employment policies in these handbooks regularly can make employers vulnerable to legal risks and liabilities, resulting in costly fines, penalties and attorneys’ fees. Employment laws are often complicated, and employers must be aware of new regulatory developments that may impact their organizations and workforce. The start of the year provides employers with an excellent opportunity to review and update their policies. To assist with this effort, this article explores five employment policies employers should consider reviewing in 2024. 1. CROWN Act In 2023, many states and localities enacted laws prohibiting discrimination based on an individual’s hair texture and style associated with a protected class, such as race. As of September 2023, 23 states had passed the Creating a Respectful and Open World for Natural Hair (CROWN) Act. Additionally, the U.S. Virgin Islands and more than 40 localities have passed CROWN laws. Many states that have not passed a CROWN Act have filed or pre-filed similar legislation. CROWN laws generally forbid discrimination based on hair textures or protective hairstyles commonly associated with a protected characteristic, such as race, national origin and ethnicity. Looking ahead, the U.S. Equal Employment Opportunity Commission (EEOC) has signaled that it will pursue discrimination claims related to hair texture and style. As many states and localities adopt hair discrimination laws, employers must ensure their workplace dress code policies are current and comply with state and local laws. It is critical to review existing policies to ensure they accommodate different hairstyles by not banning or restricting certain hair textures and styles that are associated with race, national origin and ethnicity. 2. Pregnant Workers Fairness Act The Pregnant Workers Fairness Act (PWFA), signed into law on Dec. 29, 2022, became effective on June 27, 2023. Under this law, employers with at least 15 employees must provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth or related medical conditions unless the accommodation will cause the employer an “undue hardship.” The EEOC has started accepting charges under the PWFA for situations occurring on June 27, 2023, or later. The number of lawsuits claiming employers failed to accommodate pregnant workers will likely increase in 2024. As such, employers should review and familiarize themselves with this law. Savvy employers will look at the EEOC’s final PWFA regulations and consider including a policy in their 2024 employee handbook that explicitly addresses PWFA accommodations. Moreover, forward-thinking employers will increasingly engage in the interactive process with covered employees and applicants who require accommodations under PWFA. 3. Noncompete Agreements In January 2023, the Federal Trade Commission (FTC) proposed a rule banning most noncompete agreements. The FTC is expected to vote on this rule in April 2024. Additionally, about six months after the FTC announced its proposed rule, the National Labor Relations Board stated that most noncompete and nonsolicitation agreements violate the National Labor Relations Act. Many states have also passed noncompete bans or taken action to ensure noncompetes are unenforceable. Due to the shifting legislation surrounding these policies, employers need to ensure their noncompete agreements are tailored to the state and locality where their employees work. Moreover, employers can consider limiting or eliminating noncompete agreements and policies to avoid potential litigation and unnecessary enforcement hurdles. 4. Form I-9 In 2023, the U.S. Department of Homeland Security’s (DHS) Citizenship and Immigration Services published an updated Employment Eligibility Verification form (Form I-9) and instructions. The DHS also issued a final rule that will amend agency regulations to allow for the authorization of alternative document examination procedures, such as remote documentation verification and examination. Employers had to start using the new form as of Nov. 1, 2023, to avoid penalties. Complying with Form I-9 requirements is often challenging and places a significant administrative burden on employers. Failing to complete and retain Forms I-9 for all employees can be extremely costly. Form I-9 violations often can lead to additional fines and penalties from other government agencies. While the required timelines for completing Forms I-9 for employees haven’t changed, the updated form will likely force employers to make some changes to their Form I-9 operations and processes. Therefore, employers should familiarize themselves with the updated form and establish a plan for implementing the required changes. Savvy employers will also train employer representatives and communicate with employees about plan updates. Due to the complexities of complying with Form I-9 requirements, employers are encouraged to seek legal counsel to discuss specific issues and concerns. 5. FLSA Overtime and Minimum Wage Exemptions On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements that executive, administrative and professional employees must satisfy to be exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements. With this rule, the DOL proposes increasing the minimum salary level from $684 to $1,059 per week (from $35,568 to $55,068 per year) and from $107,432 to $143,988 per year for highly compensated employees. The rule would also enable the DOL to update salary levels automatically every three years without relying on the rulemaking process. The final overtime rule is expected to be released in April 2024. While the proposal doesn’t impose any new requirements on employers until the rule is published, proactive employers will review the FLSA’s proposed rule and evaluate the changes needed to remain compliant with the new law. This may include reviewing employee compensation, auditing exempt employees’ job duties and revising workplace policies to ensure compliance. Summary Outdated policies can often expose organizations to unnecessary legal risks. Regularly reviewing and updating employment policies is an effective and cost-effective way for employers to protect themselves. By understanding the most important rules and regulations to study in 2024, employers can take steps to ensure their employment policies are current and reflect the most recent regulatory developments.  For more workplace resources, contact Simco today.

Artificial intelligence (AI) garnered attention from every industry in 2023, revolutionizing the way organizations operate and make decisions. Many employers adopted this technology to streamline operations, enhance workflows and improve customer experience. Looking ahead, organizations are expected to adopt AI at an even more rapid pace. According to Grand View Research, AI has an expected annual growth rate of 37.3% between 2023 and 2030, indicating the growing impact of AI technology in the coming years. In 2024, employers are expected to increasingly rely on AI to make critical business decisions and improve productivity. Savvy employers will stay current on evolving legal, ethical and transparency issues surrounding the heightened adoption of AI in the workplace. This article discusses four key impacts AI will have on workplaces in 2024. 1. Enhanced Decision-making Capabilities In 2023, many employers adopted AI to streamline HR and managerial functions such as hiring, onboarding, training and open enrollment. As this technology advances, employers will likely increasingly rely on AI to support HR professionals and managers in areas where they are inexperienced or burnt out. For example, in 2024, AI may be used to create thoughtful performance reviews and career coaching and identify internal growth opportunities for employees, empowering organizations to grow and upskill their workforce. In addition, as employers place more trust in AI’s decision-making capabilities, organizations may rely on this technology for cybersecurity. In this capacity, AI’s ability to rapidly sift through large amounts of information, gain insights and create business strategies may proactively identify and mitigate potential cyberthreats to protect company data. 2. Increased Productivity Chatbots and virtual assistants showed significant potential in 2023, with the ability to enhance the employee experience, respond to customer inquiries, and perform mundane and repetitive tasks. These capabilities can free employees to focus on solving more complex issues more efficiently. A 2023 report by management consulting company Mckinsey & Company found that current generative AI and other technologies can potentially automate work activities that take up 60% to 70% of employees’ time today. As AI capabilities advance, these technologies may also create workplace-specific algorithms to identify project misalignments and tasks requiring immediate attention. Thus, this year, these algorithms will be increasingly used to bolster employee productivity and ensure customers receive timely and personalized feedback on complex queries. 3. Greater Focus on Legality, Ethics and Transparency AI legislation is beginning to evolve, with various states and cities—such as Illinois, Maryland and New York City—creating laws regarding its use. The U.S. Equal Employment Opportunity Commission has also prioritized the enforcement of applicable federal laws concerning AI in employment. These regulations are expected to expand further as lawmakers face growing pressure to regulate its use. As such, remaining abreast of legal developments regarding AI will be crucial for organizations this year. Failing to comply with applicable regulations could result in costly lawsuits, fines and penalties, as well as reputational damage. Employers may also focus more on ensuring that AI systems are fair and transparent. This will include understanding the sources used to train AI, potential biases in these datasets and the ethical implications of AI-powered decisions. Employee training will also be critical to ensuring safe and ethical use. A recent survey by social networking platform FishBowl found that just 32% of individuals who use AI tools at work do so with their boss’s knowledge. Moreover, according to the Josh Bersin Company, only 4% of organizations have a defined strategy for AI in HR. In 2024, employers are expected to prioritize creating formal AI policies to meet evolving legal, ethical and transparency standards. 4. Heightened Focus on Skills-based Hiring Increased adoption of AI is expected to change the qualities employers look for in employees in 2024 and beyond. There will likely be a greater focus on hiring employees with behavioral skills, such as data analysis, AI literacy and the ability to work alongside AI systems. “Human” soft skills, such as problem-solving and communication, that AI can’t replicate, will also be in high demand. Additionally, as generative AI takes over certain workplace tasks, it will also create the need for new job roles and requirements. For example, AI ethicists, data curators and algorithm trainers may become emerging professions. AI proficiency may become a popular requisite on job postings as employers create more AI-centric business strategies. As such, the 2024 workforce will likely be defined by the ability to learn and work productively with AI technology. Conclusion The prevalence of AI in the workplace is a trend that isn’t going away. As this technology advances, employers will increasingly integrate AI into everyday operations and decision-making processes. However, the relative newness of this technology has the potential to create legal and ethical issues for organizations that adopt AI without proper protocols in place. Employers can stay ahead by monitoring AI trends impacting the workplace in 2024 and beyond.  Contact us today for more information.

The hiring and onboarding processes are crucial to ensure employees feel welcome and included. Onboarding sets the tone for an employee’s tenure with the company, laying the foundation of their work experience. Effective hiring and onboarding practices can make employees feel seen and valued from their first job day, impacting retention, engagement and productivity. An inclusive work environment is also highly attractive to workers and may help employers gain a competitive advantage in the labor market. Research from the American Psychological Association’s 2023 Work in America survey found that 94% of employees say it’s somewhat or very important to them that their workplace is somewhere they feel they belong. This article provides guidance to employers on how to create and evaluate inclusive hiring and onboarding policies. Creating Inclusive Hiring and Onboarding Practices Some employers may focus more on preparing new hires to contribute and be productive rather than helping them settle in. Unfortunately, this can lead to exclusive hiring and onboarding practices. Employees who don’t feel welcomed or accepted by their employer may leave an organization quickly in search of a more inclusive employer. In fact, nearly 40% of U.S. employees would switch jobs to be part of a more inclusive workplace culture, according to a survey by QuestionPro Workforce and EQ Community. As employees’ first impressions of an organization are typically formed during their first few months, it’s vital that organizations implement inclusive hiring and onboarding practices, such as the following: Assess job descriptions. Employers’ use of language in job descriptions can significantly impact how job candidates feel about an organization. Exclusive language can discourage talented job applicants from applying for open positions. For example, phrases like “must be a native English speaker” can discourage people who speak English as a second language from applying. Employers should evaluate their job postings for unintentionally exclusive language and rewrite them as needed. Emphasize diversity, equity, inclusion and belonging (DEIB) during hiring and onboarding. Job candidates and new hires want to know what their employers value. The hiring and onboarding processes are an opportunity for employers to emphasize the importance of DEIB and share how their organization strives to create a more inclusive environment. This may include providing resources on how to get involved in workplace DEIB efforts (e.g., employee resource groups). Prepare the team for new hires. Adding a new employee to a team will inevitably affect team dynamics. It’s crucial that every team member understands their responsibility to create an inclusive and welcoming environment. Managers can prepare their teams for new hires by establishing clear expectations and responsibilities for existing employees. Employers can also provide new hires with a mentor or advisor to ensure they don’t feel neglected or overlooked during onboarding. Establish inclusive self-identification policies. Employees want to feel valued and respected as their authentic selves at work. For employers, this means respecting the way employees self-identify. Employers can create an inclusive environment for new hires by asking for their preferred pronouns, encouraging employees to use their pronouns in their email signatures and educating existing employees when needed. Personalize the onboarding process. While certain aspects of the onboarding process may need to remain uniform (e.g., mandatory forms and company policy), employers can help new hires feel welcome by personalizing certain aspects. Personal touches, such as introductory meetings with co-workers and managers, can help employees feel welcomed after joining an organization. Maintain open communication. Employers should continue to check in with recent hires after the initial orientation process. This can help relieve employee anxieties, make new hires feel welcome and provide employees with a resource for any questions or issues. Evaluating the Hiring and Onboarding Process A strong first impression can help employers attract and retain employees from various backgrounds, cultivating a work environment that appeals to today’s talent. This can help employers be more productive and gain a competitive advantage over similar organizations. Employers can evaluate their hiring and onboarding processes and consider the following practices: Enable individuals to report issues. Employers that allow applicants and employees to report accessibility issues with their website or job descriptions (e.g., providing a form or link) can quickly respond to improve the user experience. This shows potential job candidates that the organization cares about their experience and is committed to providing an inclusive experience for all users. Ask for employee feedback. Employee feedback is essential to create inclusive hiring and onboarding experiences. Employers can ask new hires to share their experiences through multiple channels (e.g., in-person or anonymously) to improve their understanding of the onboarding experience and how to improve for future hires. Evaluate critical metrics for success. Standard measures of positive hiring outcomes typically include employee performance, job satisfaction and organizational loyalty. Employers can assess critical metrics, such as retention rates and employee competency, to evaluate the success of inclusive hiring and onboarding practices. Employers may need to reevaluate and start again if inclusive measures don’t yield expected improvements. Conclusion Employers that make the extra effort to create inclusive hiring and onboarding practices may be more successful at creating diverse, productive and welcoming workplaces. This can boost attraction, improve workplace culture, strengthen employer branding, increase employee loyalty and ultimately impact an organization’s bottom line.  Contact Simco today for more workplace resources.

2024 Minimum Wage Rates By State Under federal and state laws, employers must compensate their employees with one and one-half their regular rate of pay for any hours of overtime work. However, under these laws, employees who work in an executive, administrative or professional (EAP) capacity are exempt from overtime pay if they satisfy, among other things, the salary level requirements for their exemption. Under federal law, the salary level requirement for the EAP exemption is $684 per week on a salary or fee basis. For highly compensated employees, the salary level is $107,432, which includes at least $684 per week paid on a salary or fee basis. Important Dates Jan 1., 2024: The minimum wage rate is expected to increase in 25 states. July 1, 2024: The minimum wage rate is expected to increase in the District of Columbia, Nevada, and Oregon. These rates will likely be published during the first half of 2024. Sept. 30, 2024: A new minimum wage rate is expected in Florida. Poster Requirements New minimum wage rates may require employers to visit individual states' department of labor websites to update their wage and hour notices. LINKS AND RESOURCES: U.S. Department of Labor table of minimum wage by state U.S. Department of Labor federal minimum wage page

Educational institutions are well-established sources of high-quality talent. Recent graduates can bring creativity, energy and strong digital skills to the workforce. They’re also likely to be loyal to organizations that provide them with learning and growth opportunities, which can improve employee retention rates and boost morale. Employers that successfully engage, recruit and hire individuals from college campuses—a strategy known as campus recruiting—can secure talented young employees with the potential for growth in their careers and create a pipeline of talented individuals. Depending on their unique needs, employers can connect with job candidates from various educational establishments, including trade schools, technical schools, liberal arts schools and community colleges. Technology plays a crucial role in the success of a campus recruiting strategy. College students are typically tech-savvy and more likely to rely on social media and online resources for information about an organization. Furthermore, the lead time for campus recruiting is often longer than traditional recruiting, which gives employers the opportunity to leverage technology to build their brand on campus, improving recruiting efforts. This article explains how employers can use technology to attract, engage and recruit individuals from college campuses. Utilizing Technology for Campus Recruiting Skilled graduate talent is in high demand. Employers can leverage technology to boost their campus recruiting efforts with the following practices: Use social media. Research by business services company Experian found that 98% of college-aged students are on social media. Employers can capitalize on this trend by ramping up social media efforts, sharing organizational and employee successes on social media and building an online presence that will improve employer brand. Additionally, employers can involve employees in social media campaigns and fully complete company and brand pages on employment websites. Recruit on popular job sites. According to LinkedIn data, 86% of small businesses get a qualified candidate within the first 24 hours of posting a job on LinkedIn’s platform. Posting open roles and opportunities on job sites is crucial for recruiting recent graduates. Many of these individuals rely solely on employment sites, such as Handshake or LinkedIn, for information on job postings. Recruit virtually. Many colleges or universities don’t have a centralized campus. According to Forbes, nearly 2.8 million students enroll at online colleges and universities. This accounts for almost 15% of all U.S. postsecondary learners. Organizations can reach these students by leveraging online platforms, such as social media and virtual information sessions. Video interviews are another way employers can connect with students. Many students prefer virtual interviews and find them less intimidating, helping employers form relationships. Employers can also use online portals, such as Handshake, to connect with students and begin personalized recruiting conversations. Attend virtual recruiting events. Educational institutions may offer virtual recruitment sessions or career fairs to improve access for students who have financial or transportation obstacles and are unable to meet recruiters on campus. These events may include virtual presentations or webinars focused on particular industries, professions or geographic areas. Participating in these events can help employers connect with college students and find candidates with specific skills (e.g., computer science or engineering majors). Use mobile-friendly apps. College students rely heavily on their mobile devices for online activities. This includes searching and applying for jobs. Employers can boost engagement among college students and recent graduates by creating mobile-friendly experiences, including mobile-friendly job postings and a user-friendly application process.  Benefits of Using Technology for Campus Recruiting In today’s digital age, employers whose campus recruiting efforts are limited to in-person fairs will likely miss out on opportunities to engage and connect with talented individuals online and through social media. The benefits of incorporating technology into campus recruiting efforts include the following: Provide a holistic view. Employers that are recruiting applicants across multiple educational institutions can use technology, such as candidate sourcing and candidate evaluation software, to schedule interviews, track return on investment and store notes, data and other information that will provide clarity during the recruiting and hiring process. This can lead to better acceptance and retention rates. Broaden reach. Employers can’t be everywhere at once. Job sites, such as LinkedIn and Handshake, can help employers reach students in new and remote locations. Furthermore, employers can use technology to connect virtually with job candidates, host webinars and hold virtual interviews. Build employer branding. Online platforms can help employers build brand awareness and share organizational values with a broad range of potential candidates. This is especially important when recruiting younger individuals, who tend to be more value-driven when making career decisions. Therefore, organizations that show candidates their values may have more recruiting success. Employers can leverage technology to promote company culture online via social media or employment websites. Save time. Recruiting technology can help employers quickly scan resumes and filter out candidates who don’t have the necessary qualifications. This allows employers to dedicate more time to evaluating top job candidates. Conclusion Employers that utilize technology effectively may experience a competitive advantage when it comes to engaging and recruiting tech-savvy college students. Campus recruiting technology can also help employers spread information quickly, filter out candidates, reach passive candidates, save money and find job candidates who are a good culture fit. This can improve attraction, branding and hiring outcomes. Contact us today for more workplace resources.

While some industries are busy due to holiday shopping and seasonal employment, recruiting often slows during the winter months—especially after the winter holidays. However, winter is also when many job candidates are setting goals and making plans for the coming year, which may include searching for new jobs and opportunities. Additionally, less recruiting activity means employers seeking to attract and hire employees during the winter may experience a competitive advantage over similar organizations. Simultaneously, many employers struggle to keep employees engaged during the winter months. Employers may notice decreased workplace productivity and morale associated with the cold, dark weather and stress of the holidays and winter months. Left unaddressed, a winter slump can negatively impact employee satisfaction and retention, leading to increased turnover rates and other employment challenges. Savvy employers can use winter employment challenges as opportunities to attract talented job candidates and re-energize the workforce. This article provides guidance for winter attraction and retention. Winter Attraction Tips Many individuals have more free time around the holidays. This provides an opportunity for employers to boost their recruiting efforts at a time when potential candidates have more free time and lenient schedules. Employers can consider the following strategies to improve winter attraction: Ramp up social media efforts Launch an employee referral program Share organizational and employee successes on social media Schedule interviews while candidates have free time around the holidays Build a talent pipeline to take advantage of the reduced hiring competition Recruit college or university students who graduated during the fall semester Use employment websites to improve branding and candidate outreach. Create a mobile-friendly application process Be quick and transparent with all candidate communications. Winter Retention Tips During the winter, employees often get less physical activity, spend less time outdoors and see their friends more infrequently. Additionally, many individuals experience a post-holiday slump, which refers to a period of mental fatigue or depression due to the emotional, financial and physical stress of the holiday season. This can negatively impact employees’ mental health and workplace performance. Employers can consider the following practices to boost employee engagement and retention during the winter months: Recognize and reward employees for good work and accomplishments Encourage goal-setting at the team, department and individual level Train employees to ensure they’re well-equipped to handle their workplace responsibilities Host active work breaks, such as 10-minute stretching or exercise options around the office Offer employees flexibility on days of severe winter weather Promote idea sharing and collaboration. Check-in with employees on a personal and professional level. Design a comfortable workspace (e.g., soft lighting and lounge chairs). Celebrate and encourage employees’ personal successes (e.g., birthdays and weddings). Encourage employees to take work breaks together. Offer holiday bonuses and other incentives (e.g., gift cards or prepaid cards). Encourage employees to take paid time off. Conclusion Winter can create employment challenges for employers looking to attract and retain talented individuals. Employers that adopt a proactive approach to attraction and retention during the winter months can combat employment challenges that might otherwise contribute to low morale, decreased productivity and high turnover rates.  Contact us today for more workplace resources.

A recent survey by management consulting company Gallup found that nearly three-quarters of the U.S. workforce are not engaged. Learning and development (L&D) opportunities provide employees with a purpose, encourage community and foster curiosity, all of which can contribute to increased employee engagement. Furthermore, these programs show employees their development is valued, which can boost morale and improve attraction and retention. In fact, educational technology company LinkedIn Learning found that three of the top five reasons employees search for new jobs relate to their desire to learn, grow and develop new skills. Successful L&D programs can also help employers reduce skills gaps and drive operational excellence. Yet, traditional learning opportunities aren’t always compatible with a modern workforce. For example, employers with a multi-generational workforce, a significant number of remote or semi-remote employees, or employees with a wide range of learning styles may find that conventional learning practices create unequal growth and learning opportunities within an organization. Therefore, finding an effective means for online training, such as a learning management system (LMS), is a critical aspect of many L&D programs. This article explains how LMSs can be used to further L&D programs and outlines potential benefits and drawbacks. LMS Overview An LMS is a software application or web-based technology employers can use to plan, design, implement and evaluate their L&D programs. They’re often used to store e-learning content and automate employee learning processes. LMSs can have basic functionality or be highly advanced technology that can gamify learning, advance social and mobile learning, and use artificial intelligence. The following are common functions of LMSs: Oversee training and e-learning Store, organize and distribute courses Track individual progress Set employee goals Communicate with individuals Provide detailed analyses Identify skills gaps Indicate individuals in need of additional support Benefits of Using LMSs LMSs can benefit organizations that want to provide self-paced learning opportunities or have a widely dispersed workforce. They can help organizations evolve, accelerate growth and address talent shortages. Using an LMS for L&D programs may be advantageous, as it may achieve the following: Reduce cost. Over the long term, e-learning can be a cost-effective learning solution. With LMSs, employers don’t need to pay for travel, instructors, vendors or other materials (e.g., training manuals), which can reduce total training costs. Save time. These systems allow employers to build complete courses quickly. These courses can continually reused and revised, reducing the time needed to onboard or retrain employees. Furthermore, LMSs lessen the administrative burden by automating much of the learning process. They also allow employees the opportunity for self-paced learning, which can reduce the amount of time employees spend away from work training. Promote a learning culture. Giving employees a tool for continual and self-driven learning with LMSs can enable employers to create a culture of growth and learning. This can benefit both employers and employees by providing individuals with access to updated training and upskilling programs that can reduce skills gaps within an organization. LMSs also allow organizations to understand how effective their training programs are by measuring learning outcomes and connecting them to organizational performance. Ensure compliance. Many organizations are required to provide employees with certain mandatory training (e.g., anti-harassment or health and safety training). LMSs track and store information proving that employees took and understood the required training. This can benefit employers in case of an audit or accident. Boost engagement. Employers can create innovative and meaningful content to boost employee interest and engagement in L&D. Many LMSs allow for gamification, in which employees can unlock higher skill levels by gaining certain features, such as trophies and badges. This can motivate employees to reach new levels of learning and achievement, increasing engagement and improving the user experience. Provide flexible learning. LMSs can easily be scaled up or down to meet the needs of an organization. Employers may choose from a wide variety of learning formats, including videos, webinars and e-learning modules. Personalized learning paths can also be created to meet individual needs, providing employees with an effective learning experience suited for them. Increase accessibility. Using an online learning system can help employers provide all employees with equal access to onboarding and learning opportunities. This can help ensure that employees won’t be held back from professional growth due to location, schedule availability or learning styles. Drawbacks of LMSs As a software system, an LMS may not be right for every organization. Before purchasing an LMS, employers should consider the following potential disadvantages: Set-up time — There is a significant upfront time commitment to implementing an LMS. After researching different LMS options, employers must learn how to create courses and implement the system, which may require administrators to undergo system training before launching the course. Additionally, coding and IT knowledge may be required to customize the courses. User-friendliness —Employees who aren’t tech-savvy may initially struggle to adapt to online learning. As a result, it may take more time for some individuals to adapt to the new technology. Employers can help by selecting LMSs with simple and engaging features to improve employee engagement and use. Associated costs —Although LMSs are generally a cost-effective learning solution, there are necessary expenditures, such as purchase fees and implementation, training, security and maintenance costs. These can quickly exceed an employer’s L&D budget. Employers may also find that they must hire additional third-party platforms to boost compatibility and functionality. Limited options for personalized learning —The ability to individualize learning to meet employee needs is a crucial benefit of LMSs. However, some LMSs may provide limited opportunities for personalization, which can make employee learning and engagement less effective. User issues —If LMS support fails to meet the needs of an organization, it can dramatically impact the functionality of an LMS and cause decreased employee engagement. For example, if an LMS only provides basic tutorial information, administrators and users may struggle with the functionality of courses. Furthermore, e-learning may not be right for all learning styles or all types of training (e.g., physical skills). It also lacks human connection, which some individuals may need or desire for optimal learning. Lack of enforceability —Unlike in-person training, which is easy to enforce, LMSs require employees to be self-disciplined and follow through with their training with minimal oversight. As a result, employees may fail to complete essential training. They may also be able to cheat their way through LMS courses, which can undermine the effectiveness of L&D programs. Conclusion Employee L&D is a long-term investment that can contribute to organizational success by lowering turnover, reducing skills gaps and improving employee satisfaction. As organizations navigate the diverse needs of a modern workforce, learning technology such as LMSs may help ensure that all employees have equal access to L&D opportunities. Contact us today for more workplace resources.

New York State’s Pay Transparency Law (New York State Labor Law Section 194-b) requires employers with four (4) or more employees to include a range of pay for all advertised job, promotion, or transfer opportunities. This fact sheet is intended to help employers navigate the new law and meet its requirements. NYS PAY TRANSPARENCY LAW As of September 17, 2023, the New York State Pay Transparency Law requires all job, promotion or transfer opportunities advertised by an employer to include a salary, hourly rate, or range of pay. This law applies to employers with four (4) or more employees. This applies to all job, promotion or transfer opportunities that will be physically performed, at least in part, in New York State. The law also applies to opportunities performed outside New York State that report to a supervisor or office in New York State. Any remote or telecommuting opportunities that will report to a supervisor, office or worksite in the state of New York are covered by this law, regardless of whether the employee will be working from home outside New York State. If an employee’s physical presence in New York State is only for occasional work-related purposes, such as a meeting, a conference, or communicating with employees based in New York State, that would not be enough activity to be considered a job performed in New York State. Under this law, employers are prohibited from retaliating against employees who discuss their compensation with coworkers. ADVERTISEMENTS COVERED BY THIS LAW Advertisements require a range of pay regardless of how or where they are posted. This law covers any job posting shared with more than one person and made available internally or to the public. Covered posting mediums include but are not limited to: newspaper ads, printed flyers, social media posts, website postings, anything sent to an electronic mailing list, and emails sent to a pool of more than one applicant. Opportunities are covered whether posted by the employer directly or on the employer’s behalf by a third-party such as through a job-listing website. Employers are not responsible for any postings that are re-posted or “scraped” by a third-party website without their consent. If an employer requires more space to include full range of pay information, they may post it in a separate location, as long as the information is still available free of charge and easily accessible. For instance, posting on social media with a link to the full job posting on the company’s website. HOW TO DRAFT A PAY RANGE A pay range must include a minimum and maximum annual salary or hourly rate of compensation for a job, promotion, or transfer opportunity that the employer in good faith believes to be accurate at the time of the posting. If the employer does not plan to offer a range, but instead plans to offer a single fixed rate, such as $30 an hour, the fixed rate must be listed. A pay range cannot be open-ended. For example, “$20+ an hour” is not allowed. A range of pay cannot include other forms of compensation or benefits such as employer provided insurance, paid leave or retirement savings. However, employers are encouraged to disclose such benefits separately. If compensation for an opportunity is completely commission based, employers must state that clearly when advertising the opportunity. The law specifies employers must make a good faith effort to determine range of pay. GOOD FAITH EFFORT A good faith pay range is one that an employer legitimately believes they are willing to pay at the time of the advertisement’s posting. Employers should consider factors such as the job market, current employee pay levels, hiring budget and the experience/education levels they are willing to accept from the candidate in determining a good faith range of pay. An employer may adjust the range of pay in an advertisement after collecting additional information during the hiring process. HOW TO DRAFT A POSTING FOR MULTIPLE LOCATIONS OR OPPORTUNITIES A range of pay must be for single opportunity and location/region. Postings that include multiple possible locations or multiple opportunities at different levels of seniority must include a separate pay range for each location or opportunity. For example, if an employer is using one post to seek three Plant Manager positions in three different counties, the employer must post a range for each location: PLANT MANAGER LOCATION RANGE OF PAY Westchester County $100,000 - $125,000 Erie County $75,000 - $90,000 Clinton County $75,000 - $90,000 TEMPORARY HELP FIRMS This law does not apply to temporary help firms seeking to hire workers to perform work or services for other organizations. Employers seeking to hire workers through a temporary help firm must include a range of pay. However, any advertisement for an opportunity to work directly for the temporary help firm, for instance as the Executive Director, must include a range of pay. JOB DESCRIPTIONS All postings for a job, promotion or transfer opportunity must contain a job description when available. An employer must create a job description except in the limited circumstance where the title conveys the job duties. When the job title clearly conveys the duties for the job, for instance, dishwasher, a job description is not required. WHAT THIS LAW DOES NOT DO This law does not require employers to create a posting for every available job, promotion, or transfer opportunity. This law does not require employers to use a specific medium for advertisements.

On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements employees in white collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The FLSA white collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white collar overtime exemption. To qualify for this exemption, white collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white collar employees must receive to qualify for the exemption. The DOL is proposing to increase the standard salary level from: $684 to $1,059 per week ($55,068 per year); and $107,432 to $143,988 per year for highly compensated employees. Action Steps The proposal does not impose any new requirements on employers at this time. However, employers should become familiar with the proposed rule and evaluate what changes they may need to adopt if the rule is implemented as proposed. OVERVIEW 1. What is the purpose of the Department’s proposed rule? This rulemaking proposes to update and revise the regulations for determining whether certain white-collar salaried employees are exempt from minimum wage and overtime requirements under section 13(a)(1) of the Fair Labor Standards Act (FLSA). Employees are exempt if they are employed in a bona fide executive, administrative, or professional (EAP) capacity as those terms are defined in the Department of Labor’s regulations at 29 CFR part 541. This exemption from the FLSA is sometimes referred to as the “white-collar” or “EAP” exemption. 2. What is “overtime?” Unless specifically exempted, an employee covered by the FLSA must receive pay for hours worked in excess of 40 in a workweek at a rate not less than one and one-half their regular rate of pay. This is referred to as “overtime” pay. 3. What determines if an employee falls within the EAP exemption? Currently, to fall within the EAP exemption, an employee generally must: Be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed (the “salary basis test”); Be paid at least a specified weekly salary level, which is $684 per week (the equivalent of $35,568 annually for a full-year employee) in the current regulations (the “salary level test”); and Primarily perform executive, administrative, or professional duties, as provided in the department’s regulations (the “duties test”). Certain employees are not subject to either the salary basis or salary level tests (for example, doctors, teachers, and lawyers). 4. When did the Department last revise the exemption regulations for EAP workers? The Department last updated the EAP exemption regulations in 2019. That update, which included setting the standard salary level test at its current amount of $684 per week (equivalent to a $35,568 annual salary), has been in effect since January 1, 2020. 5. Why is the Department proposing to revise the exemption regulations for EAP workers? The Department is committed to keeping the earnings thresholds up to date for the benefit of both workers and employers. Four years have passed since the 2019 rule, during which time salaried workers in the U.S. economy have experienced a rapid growth in their nominal wages, which lessens the effectiveness of the current salary level threshold. Through this rulemaking, the Department seeks to update the salary level test to more effectively identify who is employed in a bona fide executive, administrative, or professional capacity and ensure that the FLSA’s intended overtime protections are fully implemented. In addition to updating the salary level to account for increased wages, the Department’s proposal would ensure that the salary level effectively performs its historic function of screening nonexempt employees from the overtime exemption and would more effectively account for the switch from a two-test to a one-test system. 6. What is the Department proposing to change about its exemption regulations for EAP workers? In this rulemaking, the Department proposes to: Increase the standard salary level to the 35th percentile of earnings of full-time salaried workers in the lowest-wage Census Region (currently the South), which would be $1,059 per week ($55,068 annually) based on current data; Apply the standard salary level to Puerto Rico, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands, and increase the special salary levels for American Samoa and the motion picture industry; Increase the highly compensated employee (HCE) total annual compensation requirement to the annualized weekly earnings of the 85th percentile of full-time salaried workers nationally, which would be $143,988 per year based on current data; and Automatically update these earnings thresholds every 3 years with current wage data to maintain their effectiveness. 7. Is the Department proposing any changes to the current duties test? The Department is not proposing changes to the standard duties test, consistent with its approach in both the 2016 and 2019 rules. At this time, the Department favors keeping the current standard duties test, which is well known to employers and employees. As long as it is paired with an appropriate salary level requirement, the standard duties test can appropriately distinguish bona fide EAP employees from nonexempt workers. 8. Where can I review, and how can I comment on, the Department’s proposed changes to the exemption regulations for EAP workers? The Department's Notice for Proposed Rulemaking (“NPRM”) is available at www.regulations.gov. The Department encourages all interested parties to participate in the rulemaking process by submitting written comments regarding the NPRM within 60 days from the publication date in the Federal Register. FLSA Basics 9. What does the FLSA do? The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees in the private sector and in federal, state, and local governments. Covered nonexempt workers are entitled to a federal minimum wage of not less than $7.25 per hour. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. 10. Who is covered by the FLSA? Generally, employees of enterprises that have an annual gross volume of sales made or business done of $500,000 or more are covered by the FLSA. In addition, employees of certain businesses are covered by the FLSA regardless of the amount of gross volume of sales or business done. These businesses include hospitals; establishments providing medical or nursing care for residents; schools (whether operated for profit or not for profit); and public agencies. Employees of employers that are not covered by the FLSA on an enterprise basis may still be entitled to its protections if they are individually engaged in interstate commerce. 11. Does the FLSA and the Department’s proposed rule apply to state or local government workers? Yes, state and local government employers are subject to the FLSA and the Department’s proposed regulations concerning EAP employees. 12. Is there a small business exemption from the FLSA or the Department’s proposed rule for EAP workers? The FLSA does not provide an exemption for small businesses. Generally, the FLSA and the proposed rule apply to employees of enterprises that have an annual gross volume of sales made or business done of $500,000 or more, and certain other businesses. The FLSA creates a level playing field for businesses by setting a floor below which employers may not pay their employees. 13. Is there an exemption for nonprofit organizations from the FLSA or the Department’s proposed rule? There is no exemption for nonprofit organizations under the FLSA or in the proposed rule. Thus, the proposed rule may impact nonprofit organizations that have an annual dollar volume of sales or business done of at least $500,000. In determining coverage, only activities performed for a business purpose are considered. Charitable, religious, educational, or similar activities of organizations operated on a nonprofit basis where such activities are not in substantial competition with other businesses are not considered. Employees of employers that are not covered by the FLSA on an enterprise basis may still be entitled to its protections if they are individually engaged in interstate commerce. 14. How is overtime pay determined? Unless exempt, an employee covered by the FLSA must receive overtime pay for all hours worked over 40 in a workweek at a rate not less than one and one-half times their regular rate of pay. For guidance in determining an employee’s “regular rate of pay” when calculating overtime pay, refer to WHD Fact Sheet #56A or the Department’s regulations at 29 CFR part 778. 15. What is the FLSA’s EAP exemption? Section 13(a)(1) of the FLSA exempts individuals employed in a “bona fide executive, administrative, or professional capacity” from the Act’s minimum wage and overtime requirements. Certain computer professionals and outside sales employees are included in the exemption and therefore excluded from the minimum wage and overtime requirements. The FLSA instructs the Department to issue regulations that define and delimit the EAP exemption; those regulations are located at 29 CFR part 541. 16. I'm paid a salary and my job title is manager. Am I exempt from overtime pay? Job titles do not determine exempt status, and the fact that a white-collar employee is paid on a salary basis is not alone sufficient to exempt that employee from the FLSA’s minimum wage and overtime requirements. For an exemption to apply, an employee’s specific job duties and salary must meet all of the applicable requirements provided in the Department’s regulations. 17. What if a state has its own laws about who is entitled to overtime pay? The FLSA provides minimum standards and does not preempt a state from establishing more protective standards. If a state establishes a more protective standard than the provisions of the FLSA, the higher standard applies in that state. This would include, for example, exemption criteria for EAP employees under state law with higher earnings thresholds than those provided in the Department’s federal regulations. Earnings Thresholds 18. What are the current earnings thresholds needed for the EAP exemption? Under the current regulations, an executive, administrative, or professional employee generally must be paid at least $684 per week (equivalent to $35,568 annually for a full-year employee) to be exempt from the FLSA overtime protections. This $684 per week threshold is the standard salary level. A computer professional may be exempt if they are paid at least $684 per week or at least $27.63 an hour, if paid on an hourly basis. There is no salary level test required to qualify as an exempt outside sales employee. Certain professionals including doctors, lawyers, and teachers are also not subject to the salary tests. Finally, the current regulations also contain a less restrictive duties test for certain highly compensated employees who receive total annual compensation of $107,432 or more and are paid at least $684 per week. 19. What is the proposed standard salary level? The Department is proposing to set the standard salary level at the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region (the South). Using 2022 data, the proposed salary amount would equal $1,059 per week (which is $55,068 annually for a full-year worker). 20. Why is the Department proposing to set the standard salary level at the 35th percentile of weekly earnings of full-time salaried workers? In updating the standard salary level, the Department seeks to more effectively identify who is employed in a bona fide executive, administrative, or professional capacity. The proposal updates the standard salary level to account for earnings growth since the 2019 rule and adjusts the salary level methodology based on the lessons learned in recent rulemakings. 21. What salary levels have the Department proposed to apply in U.S. territories? This proposal would restore the Department’s longstanding policy prior to 2019 of only setting special lower salary levels for employees in those U.S. territories that are not subject to the full federal minimum wage (currently $7.25 per hour). Accordingly, the Department proposes to apply the standard salary level ($1,059 per week) to employees in Puerto Rico, where the federal minimum wage has applied since 1996; Guam, where the federal minimum wage has applied since at least 1957; the U.S. Virgin Islands, where the federal minimum wage has applied since 1989; and the CNMI, where the federal minimum wage has applied since 2018. The Department proposes to set a special salary level for employees in American Samoa equal to 84 percent of the standard salary level ($890 per week, based on a proposed standard salary level of $1,059 per month), since American Samoa remains subject to special minimum wage rates below the federal minimum wage. American Samoa is scheduled to increase its minimum wage rates until they equal the federal minimum wage. The Department proposes that 90 days after the highest industry minimum wage for American Samoa equals the federal minimum wage, the full standard salary level would apply for all EAP employees in all industries in American Samoa. 22. Is the Department proposing to change the special base rate for employees in the motion picture industry? The current regulations permit employers to exempt employees in the motion picture industry who are paid a specified base rate per week (or a proportionate amount based on the number of days worked), so long as they meet the duties test for the EAP exemption. Consistent with its practice in recent rulemakings, the Department proposes to increase the required base rate in proportion to the proposed increase in the standard salary level test, resulting in a proposed base rate of $1,617 per week (or a proportionate amount based on the number of days worked). 23. Is the Department proposing to increase the salary level for highly compensated employees? The Department is proposing to set the Highly Compensated Employee (HCE) annual compensation level equal to the 85th percentile of earnings for full-time salaried workers nationwide. Based on current data, the proposed HCE threshold would be $143,988 per year, of which at least $1,059 per week (the proposed standard salary level) would have to be paid on a salary or fee basis. The Department believes that its proposed methodology results in an HCE level that is low enough to not restrict the use of the HCE test for employers in low-wage regions and industries, and high enough to guard against the unintended exemption of workers who are not bona fide executive, administrative, or professional employees in higher-income regions and industries. Future Updates 24. Does the proposed rule address future updates to the earnings thresholds provided in the EAP exemption regulations? The Department is proposing a mechanism to automatically update the earnings thresholds every three years to ensure that they remain effective tests for exemption. If finalized, this proposal would ensure that the Department can timely and efficiently update the earnings thresholds in future years to reflect current wage data. Experience has shown that the salary level test is a strong measure of exempt status only when it is up to date. Left unchanged, the test becomes substantially less effective as wages for overtime-protected workers increase over time. Automatically updating the salary level and HCE total annual compensation requirement using the most recent data will ensure that these tests continue to accurately reflect current economic conditions. 25. How is the Department proposing to automatically update the salary level and HCE total compensation levels? The Department is proposing to update the standard salary level and the HCE total compensation requirement every three years to reflect current earnings data. Specifically, the Department is proposing to update the standard salary level by adjusting it to remain at the 35th percentile of weekly earnings of full-time nonhourly workers in the lowest-wage Census Region (currently the South). The Department is proposing to update the HCE total annual compensation requirement to remain at the annualized weekly earnings of the 85th percentile of full-time nonhourly workers nationally. The Department proposes to update both of these thresholds using the most recent available four quarters of data, as published by BLS, preceding the publication of the Department’s notice to automatically update the thresholds. Because the proposed special salary level for American Samoa and the base rate for the motion picture industry are set in relation to the standard salary level, those earnings thresholds would also reset at the time the standard salary level is updated. At least 150 days before the date of the update of the standard salary level and the HCE total annual compensation requirement, the Department would publish in the Federal Register a notice with the new earnings levels described above. 26. Does the proposed rule include any special exceptions where the earnings thresholds would not be automatically updated? The Department’s proposal includes a provision allowing the Department to temporarily delay a scheduled automatic update where unforeseen economic or other conditions warrant. This feature would afford the Department added flexibility to adopt to unforeseen circumstances without sacrificing the benefits provided by automatic updating. Impact 27. What are the estimated costs, benefits, and transfers of the proposed rule? The Department estimates that in Year 1, the proposed rule would impose $1.2 billion of direct costs on employers, including $427.2 million in regulatory familiarization costs, $240.8 million in adjustment costs, and $534.9 million in managerial costs. The Department estimates that the proposed rule would result in a Year 1 income transfer of $1.2 billion from employers to employees, predominantly from new overtime premiums, or pay raises to maintain the exempt status of some affected employees. Beyond these wage transfers, the proposal could reduce the risk of misclassification, increase worker productivity, reduce employee turnover, and increase personal time for workers. 28. How many employees would be impacted by the proposed salary level increase? In the first year, the Department estimates that 3.4 million workers exempt under the current regulations who earn at least the current weekly salary level of $684 but less than the proposed salary level of $1,059 would, without some intervening action by their employers, become newly entitled to overtime protection under the FLSA. Similarly, the Department estimates that an additional 248,900 workers who earn at least $107,432 per year (the current HCE total annual compensation level) and who meet the minimal HCE duties test but not the standard duties test, would, without some intervening action by employers, become eligible for overtime if the HCE total annual compensation level were increased to the proposed level of $143,988 per year. Source: U.S. Department of Labor – Frequently Asked Questions for the Notice of Proposed Rulemaking: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees

Recently, the Equal Employment Opportunity Commission (EEOC) announced that the date for employers to begin submitting 2022 EEO-1 Reports is delayed again, this time with a tentative new opening date in the fall of 2023. The EEOC had previously extended the expected opening date for 2022 EEO-1 reporting until mid-July 2023. Under Title VII of the Civil Rights Act, certain employers must usually submit EEO-1 by March 31 each year. The following entities are subject to EEO-1 reporting:  A private employer that has 100 or more employees (with limited exceptions for schools and other organizations); A private employer with between 15 and 99 employees, if it is part of a group of employers that legally constitutes a single enterprise that employs a total of 100 or more employees; and A federal contractor that has 50 or more employees; is either a prime contractor or first-tier subcontractor; and has a contract, subcontract or purchase order amounting to $50,000 or more. Employers filing EEO-1 Reports for the first time must register to receive a login, password and further instructions for filing from the EEOC. Although the EEOC sends notification letters to employers it knows to be subject to EEO-1 requirements, all covered employers are responsible for obtaining and submitting the necessary information prior to the appropriate deadline. EEOC Announcement The reason behind the latest delay is that the EEOC is “currently completing a mandatory, three-year renewal of the EEO-1 Component 1 data collection by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA),” according to the agency. Component 1 of the EEO-1 requires employers to submit additional employee demographic information. EEO-1 reporting has been delayed in prior years, with the portal for submitting 2019, 2020 and 2021 data closing late in 2021 and 2022.

As summer comes to an end and fall begins, employees with school-age children may have increased caretaking responsibilities as their kids begin a new academic year. In addition to other day-to-day challenges, parents are now dealing with school pick-up and drop-off, unexpected sick days and other occurrences that could affect their work-life balance. Employers can support employees during this transition into the school year by acknowledging these changes and offering flexibility. This article explores considerations for acknowledging and responding during the back-to-school season. Supportive Leave Policies As Americans continue to live with COVID-19 circulating just like the common cold and flu, illnesses are inevitable. Therefore, employers may want to review their leave policies. While an organization’s policies may accommodate employees who become ill, family members could also become sick. Employers should consider offering workplace flexibility that allows them to leave and care for their family members if needed. Some employers have leave policies that allow employees to take time off when they or their family members are sick or when they need to receive vaccines for these illnesses. With the back-to-school season approaching, employers may be reevaluating their current leave offerings to ensure they reflect these realistic needs. Flexible Working Arrangements Remember that life happens, and unexpected circumstances will arise. Employers can consider providing remote and hybrid work models when possible or as needed. Even when remote and hybrid work is not feasible, flexible scheduling can allow employees time for other tasks, such as dropping off or picking up their children from school. Furthermore, the workplace could implement core hours that allow employees some leniency in when they can start and stop their days. Whichever accommodations an employer chooses, it’s important to communicate to employees that the company is willing to work around events that may arise in their lives. This assurance may reduce stress during the back-to-school transition and could positively impact employee retention. However, it’s important to note that accountability should come with flexibility, so employees must work out any arrangements with their managers and teams. Resources for Caretakers Family caregivers account for an estimated 18% to 22% of the U.S. labor force, according to the Rosalynn Carter Institute for Caregivers. Furthermore, nearly one-third of caregiver employees have voluntarily left a job at some point during their careers because of their caregiving responsibilities. While it may not be feasible for all employers to directly provide caretaking services, they can help ensure their employees have access to such resources. Employers may consider hosting a workshop, distributing a handout or otherwise providing information regarding caretaking resources. Even if there are no specific caregiving benefits available at an organization, managers or supervisors could simply ask working employees how they are doing during the back-to-school season. This kicks off an open dialogue, demonstrating an interest in how they’re doing as a person and helping reduce guilt about juggling personal and work responsibilities. Many schools end between 3 p.m. and 4 p.m., which means working parents might need child care for several hours or leave to handle it themselves. When school is closed due to holidays or professional development, working parents may have to find a secondary plan for those days while they’re still working. Helping employees feel supported during their search for caretakers or after-school programs for their children can go a long way in making them feel supported and may boost overall employee retention. Takeaway The back-to-school transition may initially seem misplaced to the workplace, but the reality is that many employees have school-age children and associated caretaking responsibilities. As a result, employers should prepare to be flexible, accommodate employees during this transition and provide relevant resources. These efforts can help make a difference and ultimately assist in appealing to and keeping workers during a time when attraction and retention are significant challenges for organizations. Contact us for additional workplace resources.

The U.S. Department of Homeland Security’s (DHS) Citizenship and Immigration Services (USCIS) recently announced the release of an updated Employment Eligibility Verification form (Form I-9) and instructions. The updated Form I-9 will be available to employers starting August 1, 2023; however, the prior version of Form I-9 (Revised October 21, 2019) continues to be effective through October 31, 2023. After October 31, employers who continue to use the outdated Form I-9 will be subject to penalties. The revisions to the form and its instructions are intended to streamline the documents and reduce the burdens associated with the form for employers and employees. The DHS also issued a final rule to become effective on Aug. 1, 2023, which will amend agency regulations to allow for the authorization of alternative document examination procedures, such as remote documentation verification and examination. The new rule is designed to increase flexibility and improve the agency’s ability to respond to emergencies, such as a pandemic similar to COVID-19. These announcements have been long-awaited after previous extensions of the existing form and temporary COVID-19 flexibilities allowing remote verification. As these changes will impact all employers, now is a critical time to ensure that organizations are familiar with them, review their Form I-9 practices and make any necessary adjustments. Accordingly, this article provides employers with an overview of the changes to Form I-9 and remote document verification and outlines strategies to help employers prepare for the new form. Form I-9 Overview The Immigration Reform and Control Act of 1986 (IRCA) requires all employers, regardless of size, to hire only individuals who may legally work in the United States. To comply with the law, employers must verify each individual's identity and employment authorization by completing and retaining the Form I-9. Form I-9 Updates The USCIS released the following updates to Form I-9: Reduced Sections 1 and 2 to a single sheet; Moved the Preparer/Translator Certification area from Section 1 to a standalone supplement (Supplement A); Moved the Reverification and Rehire area from Section 3 to a separate supplement (Supplement B); Replaced the use of “alien authorized to work” with “noncitizen authorized to work;” Clarified the difference between “noncitizen national” and “noncitizen authorized to work;" Ensured the form can be downloaded easily and filled out on tablets and mobile devices; Eliminated the requirement to enter “N/A” in certain fields; Revised the notice that explains how to avoid discrimination in the Form I-9 process; Updated the List of Acceptable Documents page to include guidance and links to information on automatic extensions of employment authorization documentation and some acceptable receipts; and Added a check box to use if the employee’s Form I-9 documentation was examined under a DHS-authorized alternative procedure rather than a physical examination. Additionally, the USCIS updated Form I-9’s instructions. These updates include the following: Reduced the instruction’s length from 15 pages to eight pages; Included definitions of key actors in the Form I-9 process; Simplified the steps each actor takes to complete their section of the form; Added instructions for the use of the new checkbox for employers who choose to examine Form I-9 documentation under an alternative procedure; and Eliminated the abbreviations charts and moved them to the USCIS’ Handbook for Employers. Completing the Updated Form I-9 To comply with employment eligibility verification requirements, employers can use the updated Form I-9 starting August 1, 2023. Employers do not need to complete the new form for current employees with a properly completed Form I-9 on file unless reverification applies after October 31, 2023. Employers may continue using the prior version of the form through October 1, 2023. The USCIS is allowing employers this additional time to make necessary updates and adjustments to their business processes. After October 1, 2023, the prior version of Form I-9 will be obsolete and no longer valid. Starting November 1, 2023, employers who fail to use the updated form may be subjected to all applicable penalties under section 274A of IRCA. Employers may download the current version of the form on the USCIS’ website . Starting August 1, 2023, the new form will be available on the USCIS’ website. Preparing for the Updated Form I-9 Complying with Form I-9 requirements is often challenging and places a large administrative burden on employers. Failing to complete and retain Forms I-9 for all employees can be extremely costly. Under the IRCA, employers can be subjected to fines for not complying with Form I-9 guidelines, accepting fraudulent documents when verifying an employee’s identity and employment eligibility, and discriminating against individuals based on their citizenship status or national origin. Additionally, Form I-9 violations often can lead to additional fines and penalties from other government agencies. While the required timelines for completing Forms I-9 for employees haven’t changed, the updated form will likely force employers to make some changes to their Form I-9 operations and processes; therefore, it’s critical that employers familiarize themselves with the new form and its changes so they can ensure an efficient and effective Form I-9 process and avoid costly penalties. Employers can consider the following strategies to help ensure they meet the Oct. 31 deadline and comply with Form I-9 requirements. Remote Document Verification The USCIS also announced a final rule in the Federal Register recognizing the end of temporary COVID-19 flexibilities on July 31, 2023. The final rule also provides the DHS the authority to authorize optional alternatives for employers to examine Form I-9 documentation. Under current requirements, employers must physically inspect Form I-9 acceptable documents to certify that their employees are authorized to work in the United States; however, with the final rule, the DHS also published an accompanying document in the Federal Register providing employers enrolled in E-Verify the option to remotely examine their employees’ identity and employment authorization documents under a DHS authorized alternative procedure. The remote verification option will not be available to employers unless they enroll in E-Verify. To participate in the remote examination of Form I-9 documents under the DHS-authorized alternative procedure, employers will need to: Be enrolled in E-Verify; Examine and retain copies of all documents; Conduct a live video interaction with the employee; and Create an E-Verify case if the employee is a new hire. Employers who were participating in E-Verify and created a case for employees whose documents were examined during COVID-19 flexibilities (March 20, 2020, to July 31, 2023) may choose to use the new alternative procedure starting on August 1, 2023, to satisfy the physical document examination requirements by August 30, 2023. Employers not enrolled in E-Verify during the COVID-19 flexibilities must complete an in-person verification by August 30, 2023. Form I-9 requirements impact all employers; therefore, with these fast-moving and even confusing changes, now is a critical time for employers to review their Form I-9 processes. By understanding Form I-9 requirement changes and the implementation timelines, employers can better prepare to comply with these new requirements. Contact SimcoHR today for additional Form I-9 resources or questions.

As employers struggled to respond to trends such as the Great Resignation and quiet quitting, many quickly hired employees to cut costs and fill open positions. Unfortunately, reactionary hiring often didn’t work for either party. According to a USA Today poll, only 26% of job switchers liked their new position enough to stay. For this reason, many employers are shifting their focus to prioritize the quality of new hires and evaluate how their recruitment and onboarding practices can lead to more positive hiring outcomes. This article provides guidance on the importance of hiring outcomes and strategies employers can use to find the right employees for open positions and improve such outcomes. Hiring Outcomes A successful hiring outcome occurs when an employer hires the right individual for an open position. The measurements of successful hiring may vary depending on an organization’s goals and objectives. Generally, standard measures of positive hiring outcomes include employee performance, job satisfaction and organizational loyalty. A negative hiring outcome can occur when an organization hires an individual that’s ill-suited for the position or is not a good cultural fit. The Importance of Hiring Outcomes When the wrong person is hired, it can have numerous consequences for an organization. According to Northwestern University, a bad hiring decision can cost a company at least 30% of that employee’s annual salary. Hiring the wrong people can also reduce employee morale, damage company culture, increase employee turnover, damage employer branding and create unsafe workplaces. On the other hand, when an employee is a good fit for their position and organization, they’re more likely to be productive, loyal and remain with their company for longer. This ultimately benefits revenue by reducing hiring and onboarding costs and keeping knowledgeable, productive employees at the company. Improving Hiring Outcomes Employers’ strategies are critical to ensuring organizations consistently hire employees that align with organizational goals. Here are strategies for employers to consider: Focus on fit. A recent survey found that more than half ( 55% ) of people lie on their resumes. Therefore, it’s crucial that employers find ways to establish a candidate’s trustworthiness. Common methods include reference checks, skills assessments and behavioral-based interviewing. Additionally, employers should pay attention to how well an individual aligns with an organization’s goals and desires, not just the qualifications listed on their resume. It may be beneficial to observe how job applicants interact with other people in the office to understand how an individual would interact with team members and contribute to company culture. Be transparent. Communicate regularly and clearly with job applicants during interviews and hiring. This will improve trust and make them feel valued by an organization. Employers should also honestly describe job expectations and organizational goals to help candidates make informed decisions about job positions. Listing pay ranges alongside job postings is another way to establish trust and increase efficiency, as it reduces the risk of losing job candidates over salary expectations far along in the hiring process. In fact, workers are more likely to apply for jobs that include a pay range in the job posting, according to recent data from global employment website Monster. This can increase an employer’s talent pool and ultimately lead to better hiring outcomes. Emphasize diversity. Diversity, equity and inclusion (DE&I) is a critical element many employees consider when deciding to stay with a company. A survey by Goodhire found that 81% of employees would consider leaving their job if their employer wasn’t committed to DE&I. In addition to helping attract and retain employees, a commitment to DE&I can also improve an organization’s bottom line. According to management consulting company McKinsey, diverse and inclusive companies are 35% more likely to outperform competitors financially. Assess recruitment strategy. Recruitment methods factor into the type of candidates applying for open positions. Recent research by software company Yello found that 54% of Generation Z workers won’t complete a job application if the method is outdated. Simplifying the application process with technology like mobile-friendly applications and applicant tracking systems can help employers compete for talent. Consider temporary-to-permanent (temp-to-perm) hiring. With this type of hiring, employers hire workers on a temporary basis for a trial employment period before hiring decisions are finalized. This enables employers to fill positions without committing to permanent employment, reducing the risk of poor hiring decisions. However, employers who use this method of hiring should be aware of the potential drawbacks, such as agency fees, less committed workers and insufficient training for temporary hires. Use artificial intelligence (AI). Although a relatively new technology, AI can help evaluate and screen potential candidates. It can improve candidate experience and increase efficiency and fairness. However, employers who use AI for hiring processes should also be aware of potential accessibility issues, as it may intentionally or unintentionally screen out job seekers with disabilities. Unintentional discrimination may occur if an AI algorithm relies on historical data sets that use benchmarking resumes and other job requirements that are biased or discriminatory. Employer Takeaway As labor market conditions shift, employers should assess their hiring and recruiting strategies to improve positive outcomes. Employers who prioritize hiring the right person the first time may experience reduced employee turnover, improved company culture and increased revenue. For more workplace information, contact SimcoHR today.

Employees face not only the ever-changing demands of their professional lives but also the constant challenges of managing their personal finances. In fact, a 2023 survey by professional services network PwC revealed that 57% of full-time employees say finances are the top cause of stress in their lives. The increasing cost of living, unexpected expenses, medical debt and economic uncertainties take a toll on employees’ well-being, impacting their overall productivity and job satisfaction. Financial stress impacts many aspects of employee well-being, such as mental health, sleep and self-esteem.

Effective mentorship programs encourage employees to learn, grow and collaborate with one another. This helps to create a culture of inclusion and promotes strong interpersonal relationships among co-workers. In addition, these programs show employees that their employers value their career advancement and professional growth. Reach out today for additional resources on employee retention.

A recent survey from employment and labor law firm Littler found that 71% of U.S. employers currently operate hybrid work arrangements in 2023, with just 16% of surveyed companies requiring in-person work. However, many companies that have chosen to embrace hybrid work in the long term are pairing it with stricter in-person requirements.

Employee handbooks are important tools for small businesses to help establish employee expectations, address workplace issues and defend against potential lawsuits. Failing to update employee handbook policies regularly can make small businesses vulnerable to legal risks and liabilities, resulting in costly fines, penalties and attorneys’ fees. Employment laws are often complicated, and small businesses need to be aware of any new regulatory developments that may impact their organizations and workforce. Yearly employee handbook reviews are an excellent time to review and update the policies.

More employees are demanding pay transparency. Despite many employers’ reluctance to embrace this emerging practice, it has gained a stronger foothold in 2023. In fact, pay transparency laws are impacting more employers as a growing number of states and localities require organizations to share pay information with applicants and employees. Here are some pay transparency basics to know for 2023.

Employee handbooks are important tools for establishing employee expectations, addressing workplace issues and defending against potential lawsuits. Employment laws are often complicated, and new regulatory developments may impact these policies. Here are three employment policies employers should consider reviewing in 2023. 1. Pay Transparency Pay transparency is the practice of an employer openly communicating pay-related information to prospective and current employees through established methods. With demands for pay transparency increasing, more states and localities have passed legislation in recent years. More employers are considering these policies to meet employee desires, even if they are in jurisdictions that do not require pay transparency. 2. Paid Leave Paid leave laws ensure workers continue receiving a portion of their wages when they’re unable to work under certain circumstances. In 2022, many states and localities enacted paid leave laws. This year, several previously enacted leave laws became effective in various states and cities throughout the United States; many other states have recently proposed paid leave legislation. As such, employers should ensure their leave policies are current and comply with local laws. An employer’s leave policies can also clearly communicate eligibility to employees. 3. Remote and Hybrid Work Arrangements Employers continue to allow employees to take advantage of flexible work arrangements, but many have not updated their employment policies to adequately address these arrangements. These policies can set clear expectations surrounding employee work hours, communication, productivity, technology usage and more. Summary Employers can take steps to ensure their employment policies are current and reflect the most recent regulatory developments. Reach out to SimcoHR today for help creating or updating your employee handbook!

The U.S. Equal Employment Opportunity Commission (EEOC) recently announced that the 2022 EEO-1 Component 1 data collection is tentatively scheduled to open in mid-July 2023. This year’s timeline for submitting the EEO-1 Report differs from past years. Last year, the reporting period began on April 12, 2022.

Many employees do not use their allotted paid time off (PTO) despite their employers’ vacation and other leave policies. As a result, some employers are implementing minimum PTO policies to address this challenge. This emerging trend takes standard PTO policies one step further by mandating that employees take off a minimum number of days each year. When done properly, minimum PTO policies can help curb employee burnout, improve workplace productivity and strengthen attraction and retention efforts. This article explores minimum PTO policies, including the potential benefits and organizational considerations for developing and implementing these policies.

This fact sheet provides general information concerning what constitutes compensable time under the FLSA. The Act requires that employees must receive at least the minimum wage and may not be employed for more than 40 hours in a week without receiving at least one and one-half times their regular rates of pay for the overtime hours. The amount employees should receive cannot be determined without knowing the number of hours worked.

Employers of all sizes are currently searching for ways to reduce expenses and save money in response to the current economic downturn and ongoing labor challenges. Instead of cutting costs randomly or conducting unnecessary layoffs, successful organizations tend to optimize their resources by identifying areas where they can reduce expenses without compromising productivity or future growth. While knowing the best ways to cut costs is essential for any organization, it’s especially important for small businesses since they tend to have fewer resources than larger employers. Here are six tips to help small businesses effectively cut costs.

Cyberattacks and data breaches not only threaten large employers but also present a major concern for small businesses. In many instances, small businesses can be more vulnerable to cyberattacks because they lack the resources, protocols or proper systems to protect themselves. According to the Identity Theft Resource Center’s 2022 Business Impact Report, nearly 45% of small businesses and self-employed individuals experienced a security or data breach between July 2021 and July 2022.

Building an Employee Value Proposition (EVP) that fits the needs of employees is crucial for employee attraction and retention. Whether an organization is ready to start building an EVP or it’s time to reevaluate a current EVP, be sure it’s based on the current workplace values and employee needs and desires. For additional resources on building an EVP, reach out to SimcoHR today.

Employers can get ahead of the game by monitoring the trends that will impact the workplace and resonate with the current workforce. Many HR functions and employee expectations have significantly evolved amid the pandemic era. As such, there will still be ways to elevate and strengthen workplace strategies to be sustainable, supportive and attractive to today’s workers.

The IRS has released Revenue Procedure 2022-38, which includes cost-of-living adjustments for employee qualified transportation fringe benefits for the 2023 taxable year, along with annually adjusted numbers for 2023 for other tax provisions. The combined monthly limit for transportation in a commuter highway vehicle and a transit pass will increase to $300 in 2023, up from the 2022 limit of $280. The monthly limit in 2023 for qualified parking will also increase to $300 from $280.

Employers subject to federal equal employment opportunity (EEO) laws must replace their current EEO posters with new versions released by the EEOC on Oct. 19, 2022.

The current federal minimum wage rate is $7.25 per hour. However, several states have adopted minimum wage rates higher than the federal rate. When both the state rate and the federal rate apply, employers must pay their employees the higher rate. The following states have announced new minimum wage rates for 2023:

Many employees are currently feeling financially strained because of inflation. With open enrollment fast approaching, inflation could impact the choices employees make when it comes to their benefits. Employees are likely considering which benefits matter the most and how to optimize the money they spend on those offerings. As a result, this year’s open enrollment may be more challenging than usual for employers and benefits providers. This article explores how inflation is impacting employees’ benefits selections and approaches to open enrollment and outlines what employers can do to help.

According to HR services provider ADP, salaries have been rising rapidly, nearly on par with inflation. Year-over-year pay raises increased by 7.6% leading up to August 2022, compared to an average of around 2% in early 2021. While pay has increased overall, its growth has flattened since April.

“Quiet quitting” is an emerging trend where workers only do what their job description entails without going above and beyond. Over the course of the COVID-19 pandemic, many employees shifted their views on their work lives, and this has been reflected in movements such as the Great Reshuffle—a mass movement of workers to jobs that meet their demands for things such as more flexibility and better benefits—the shift to remote work and, now, the quiet quitting trend.

In the wake of the Great Reshuffle—the mass movement of workers to jobs that prioritize their needs—and macro trends like the tight labor market, attraction and retention are top of mind for employers. In fact, according to Zywave’s 2022 Attraction and Retention Benchmarking Overview, over 75% of employers consider attraction and retention to be among the top-five business challenges for their organizations. As a result, many employers are expanding and enhancing their benefits offerings to remain or become more desirable to employees. This article outlines the following benefits that may be advantageous to attraction and retention efforts.