Human Resources Archives | Page 10 of 24

Anticipating the Rise of Employee Leave Requests

by Guest Author | Jul 26, 2023 | Employee Benefits, Human Resources, Uncategorized

As organizations continue to navigate the evolving landscape of remote work, the anticipated increases in employee leave requests have become a prominent topic of discussion. During these unprecedented times, companies struggle to strike a balance that leaves them financially in the black while meeting their employees’ needs.

The surge in work-from-home and hybrid work schedules, driven by the recent global pandemic, has led to a significant shift in workplace dynamics. This could be a source of frustration for employers who assumed that their standard operating procedures would revert back to normal when the pandemic ended. Many companies are unsure how far they need to alter their regular practices to remain current with the changing times.

Based on the 2023 Employee Leave of Absence Forecast Survey by leading leave and accommodation management platform AbsenceSoft, human resource leaders have recently seen substantial increases in employee leave requests. In 2022, they jumped between 20 and 40% and are expected to increase again by up to 60% in 2023.

Why Is This an Issue?

According to researchers, even with the Family and Medical Leave Act of 1993 (FMLA), the U.S. is unfortunately among the few countries that do not guarantee paid sick leave or family and medical leave for employees. Although FMLA provides up to 12 weeks of unpaid leave per year, that leaves many workers and their families unprotected in their most significant times of need.

To further exacerbate the problem, many employers are exempt from FMLA due to the size of their business and the number of full-time workers they employ.

Since states can make their own medical leave rules, many are adopting far more generous regulations than the federal requirements given by FMLA. In fact, a number of states have created leave programs that guarantee paid time off to family caregivers and working parents.

However, this still leaves access to PTO at the employers’ discretion for most employees.

Reasons for Increases to Employee Leave Requests

As businesses seek to predict and accommodate these scheduling changes, it is helpful to understand what is driving them. The three main contributors to these leave request increases are related to the following:

Personal illness
Mental health concerns and burnout
Care for family members

Although flexibility with work schedules was initially seen as a necessary accommodation during the COVID-19 pandemic, it has become an essential employee benefit.

Why This Trend Is Likely to Continue

The ability to successfully navigate a balance between their workalike and home life has become a greater priority for many employees. In fact, it can significantly influence how long someone will remain with the company. The more they feel their individual needs are being met by their employers, the more likely they will experience a sense of loyalty to the company.

Therefore, it’s no wonder that many companies are introducing more paid time off in their 2023 benefits packages. This not only helps to retain current employees, but it also goes a long way to attracting potential new hires.

Navigating the Future

Over the past two years, retaining staff and recruiting new talent remains an ongoing issue for many companies, but managing staff time off has been by far one of the most difficult aspects of running a business. Calculating employee eligibility and ensuring compliance with a variety of laws, as well as company policies are two of the primary difficulties, making employee leave management one of the most challenging tasks for businesses.

Plus, many corporate leaders have found it hard to effectively manage their employees’ absences. Some are still relying on outdated methods, like spreadsheets, calendar reminders, and sticky notes. This archaic approach has proven to be inefficient leaving 44% of HR professionals stating that their organization is only marginally or not at all effective at the task.

Unfortunately, many businesses are unprepared to counter the potential legal action that may result as a consequence of mismanaging employee leaves. Adopting administrative software that performs the duties related to managing employee leave can simplify the process while ensuring accuracy and compliance. Thereby, relieving the associated tension between HR leaders and employees.

In Conclusion…

As employee leave requests from concerns such as burnout, illness, mental health issues, and caregiving responsibilities increase, organizations must continue to address them. They can do this by promoting employee well-being, providing flexible policies, and fostering open communication to mitigate the impact of increased leave use.

By recognizing and addressing these unique stressors, organizations can more effectively support their employees and maintain a healthy work-life balance in the remote work environment.

Simplifying HR for Small and Medium-sized Businesses: The Power of Managed HR Services

by Jim Taylor | Jul 21, 2023 | CFOs Managing HR Series, Uncategorized

Running a small or medium-sized business (SMB) comes with its own unique set of challenges. From managing day-to-day operations to nurturing growth, entrepreneurs often find themselves juggling multiple hats. One crucial aspect that demands their attention is human resources (HR). However, HR functions can be time-consuming, complex, and overwhelming for SMBs. This is where managed HR services come to the rescue. In this blog post, we’ll explore how managed HR services can simplify HR processes for SMBs, allowing them to focus on what they do best.

1. Understanding the Basics of Managed HR Services:

Managed HR services provide SMBs with comprehensive HR support and solutions. Rather than handling HR tasks in-house, businesses partner with an external HR provider to take care of critical functions such as payroll management, benefits administration, compliance, talent acquisition, and more. This allows SMBs to access the expertise of HR professionals without the burden of building an entire HR department.

2. Streamlining HR Processes:

One of the most significant advantages of managed HR services is the streamlining of HR processes. By leveraging the expertise and advanced technology of the HR provider, SMBs can automate and optimize routine HR tasks. From managing employee data and attendance tracking to generating accurate payroll reports, the right HR service provider can simplify processes, reducing manual effort and eliminating errors.

3. Cost Savings:

For SMBs, managing HR internally can be costly. Hiring dedicated HR staff, investing in HR software and infrastructure, and ensuring compliance with ever-changing regulations can strain limited resources. However, with managed HR services, businesses can benefit from cost savings. By outsourcing HR functions, SMBs avoid overhead expenses associated with maintaining an in-house HR department. Instead, they pay a predictable fee to the HR service provider, often tailored to their specific needs.

4. Expertise and Compliance:

Navigating complex HR regulations and compliance requirements can be a daunting task for SMBs. However, with managed HR services, businesses gain access to HR professionals well-versed in employment laws and regulations. These experts ensure that the business remains compliant with the latest HR legislation, reducing the risk of costly penalties and legal issues. Moreover, they stay updated on industry best practices and can provide guidance on HR strategies tailored to the specific needs of SMBs.

5. Scalability and Flexibility:

As SMBs grow, their HR needs evolve as well. Managed HR services offer scalability and flexibility, allowing businesses to adapt their HR support as they expand. Whether it’s onboarding new employees, expanding benefits packages, or implementing performance management systems, an HR service provider can quickly adjust to meet changing requirements, providing SMBs with the agility they need to thrive in a dynamic business environment.

6. Enhanced Focus on Core Business:

By entrusting HR functions to a trusted HR service provider, SMBs can redirect their energy and resources toward their core competencies. This allows them to focus on innovation, business development, and serving their customers more effectively. Outsourcing HR responsibilities enables business owners and managers to dedicate their time and attention to strategic initiatives that drive growth and differentiate their company in the marketplace.

Conclusion:

For small and medium-sized businesses, managed HR services offer a lifeline in simplifying and optimizing HR operations. By partnering with an external HR provider, SMBs can streamline their processes, reduce costs, ensure compliance, access expert HR guidance, and free up valuable time and resources. As you focus on nurturing your business, consider the power of managed HR services and unlock the potential to take your organization to new heights.

Managed Payroll Services: Unlocking Cost Savings through Outsourcing

by Jim Taylor | May 15, 2023 | Payroll

Efficient payroll management is a critical aspect of running a successful business. However, the decision to handle payroll internally or outsource it to a managed payroll services provider can be challenging. In this blog post, we will explore the benefits of managed payroll services and shed light on the cost savings that can be achieved by outsourcing instead of hiring an internal payroll specialist.

1. The Burden of Hiring and Training:

When opting for an internal hire, the process begins with sourcing, interviewing, and selecting a qualified payroll specialist. This not only incurs recruitment costs but also demands time and effort. After hiring there is a need for training to ensure the individual is well-versed in the company’s payroll procedures and any legal or compliance requirements. On the other hand, with managed payroll services, the burden of hiring and training is eliminated, saving valuable resources.

2. Technology Infrastructure and Maintenance Costs:

Managing payroll internally involves investing in payroll software, IT infrastructure, and maintaining the systems. The costs associated with software licenses, upgrades, hardware, and data security measures can add up significantly. In contrast, managed payroll service providers already have state-of-the-art technology infrastructure in place. By outsourcing, businesses can eliminate the need for costly investments and ongoing maintenance, resulting in substantial cost savings.

3. Compliance and Legal Expertise:

Payroll regulations and tax laws are constantly evolving, making compliance a complex and time-consuming task. Non-compliance can lead to penalties and legal consequences. Managed payroll service providers specialize in payroll compliance and possess the expertise to navigate intricate regulations effectively. By outsourcing, businesses can tap into this knowledge base and ensure compliance while avoiding potential fines or legal complications.

4. Scalability and Flexibility:

As businesses grow, payroll needs expand. Managing payroll internally requires constant adjustments to accommodate changing employee numbers, new benefits programs, and evolving tax requirements. This can strain internal resources and increase costs. Managed payroll service providers offer scalable solutions that effortlessly adapt to your business’s changing needs. By outsourcing, businesses can ensure seamless scalability without incurring additional expenses.

5. Time and Efficiency:

Processing payroll internally demands a significant amount of time, particularly during payroll periods. The manual calculation of wages, deductions, and tax withholdings can be labor-intensive and prone to errors. By outsourcing to managed payroll services, businesses can streamline the payroll process and free up valuable time for internal staff to focus on core business activities, enhancing productivity and overall efficiency.

Final Thoughts

While hiring an internal payroll specialist may seem like a logical choice, businesses can achieve significant cost savings by opting for managed payroll services. From eliminating recruitment and training expenses to reducing technology infrastructure costs and ensuring compliance, outsourcing payroll can unlock a multitude of benefits. By entrusting payroll responsibilities to experts, businesses can enhance efficiency, save money, and redirect resources towards strategic growth initiatives.

Updating Employee Leave Practices Could Save Your Company Money

by Jim Taylor | Apr 25, 2023 | Compliance, Human Resources

With the growing number of hybrid and remote workers, keeping up with all the regulatory complexities has become a daunting task. Recent research shows that many employers have adjusted their leave policies to better meet the demands of their staff and match corporate values, as well as keep up with industry standards.

This has the potential to benefit workers and companies. Global Workplace Analytics reports that nearly 60% of employers believe embracing a workforce that includes hybrid and remote workers could save the company money. If those who wished to work remotely did so at least half of the time, businesses could see big reductions in their operating expenses.

By offering an attractive leave policy designed to accommodate these employees, they can draw top talent while saving money.

Managing employees’ leaves can be complicated, especially when required to comply with multiple state leave laws. However, it is doable. By addressing the most cited concerns, businesses can make their policies more efficient while remaining compliant.

Revising Worker Leave Practices

Despite considerable efforts to ensure they stay compliant with industry standards and government regulations, many companies are finding it challenging to establish all-encompassing personal leave policies. Managing a dispersed workforce of a combination of hybrid and remote employees can make it even more difficult for HR leaders who struggle to stay up-to-date with regulations and take advantage of financial opportunities while providing employee support.

This can put a strain on their resources and become overwhelming.

HR teams should be aware of the ever-changing workforce dynamics, and a 2023 NFP Leave Management Report from benefits consultants at NFP provides an outline suggesting the primary practices for leave policies that make sure they remain compliant.

The report recommends that employers put more effort into examining their benefits policies across the following areas.

PTO, Sick Time, and Vacation

Compared to a conventional vacation policy, a PTO (Personal Time Off) policy is more flexible and offers employees an allotment of time that they can use for sick days, personal activities, or even vacations, as outlined by their employer. With this type of plan, employees do not need to specify the reason for taking their time off, making PTOs a practical solution for companies.

Often, employers prefer more regulation over how paid time off is used. Studies have shown, though, that people usually take less time off when they’re allowed an unlimited amount of PTO.

The best approach to forming a sick leave policy is to research the maximum state-required leave that an employer must provide and, if feasible, create a policy that meets or exceeds that amount. This ensures compliance with government regulations and also protects the interests of both employer and employee.

PTO generally begins accruing upon hiring, but some companies offer the yearly allotment as soon as the employee is hired.

Parental Leave

Although parental leave is usually granted to the mother when a child is born, an optimal approach ensures that all parents have the same leave policy. This protects birth, adoption, and fostering parents wishing to build a close relationship with their new child.

Establishing impartial policies that provide for all types of parental leave for all parents while adhering to federal and state regulations offers employee equality and simplifies management for employers.

Maternity

Shockingly, 42% of employers don’t coordinate their maternity leave with short-term disability plans, and a whopping 63% fail to do the same with state medical leave benefits. Generally, the state pays first, and then short-term disability covers a percentage.

By providing salary continuation, employers can supplement the existing benefits from short-term disability and/or state-provided benefits for their employees. Thereby ensuring that their staff is being completely provided for during those times.

Family Caregiver

There has been a notable uptick in employers providing family caregiver leave to their staff over the last few years. However, over half of the companies that offer this benefit allow fewer than six weeks of paid time off.

Millions of U.S. workers care for their elderly and disabled loved ones. Enabling employees to take time as needed to attend medical appointments and care for their families grants employees the chance to manage both their work and personal life while preserving productivity on the job.

In Conclusion

Whether managing a company’s employee leave program is handled by the owner or manager, an internal HR team, or an outside benefits consultant, offering flexible leave is a popular and progressive trend. Although it might seem complex initially, it all begins with compliant and comprehensive leave policies and procedures.

There are ways for forward-thinking companies to manage the process while remaining compliant. Ultimately, it might be mutually beneficial.

Key Changes to Your 2023 Employee Handbook

by Jim Taylor | Mar 31, 2023 | Compliance, Human Resources

As the nature of the contemporary workplace evolves, your policies must reflect the changing times. With the rise of remote work, digital tools, and new regulations, there are many key changes to consider for your 2023 employee handbook.

An employee handbook is an essential tool for any organization. It sets out the expectations, terms, and conditions of employment while reducing potential legal risks. This document should not be overlooked if you want to ensure compliance with government regulations.

No matter how comprehensive your current employee handbook is, it can become outdated quickly due to changes in the law and the world. Therefore, employers should ensure that their handbook covers all the essential policies, as well as any new developments in their workplace. This will guarantee your employee handbook is up-to-date and compliant in 2023.

Changes in Work Time Policies

The COVID-19 pandemic has triggered a dramatic shift in workplace dynamics. No longer satisfied with the traditional 9-to-5 workday model, modern employees are increasingly opting for flexible working hours. This has made way for the emergence of remote work, hybrid work, and flexible work hours.

To ensure the successful management of these new work structures, businesses need to implement sound policies. This would include key points, such as, but not limited to, the following:

Which employees are eligible
Attendance expectations
How time off and breaks are tracked
How overtime is compensated

Having such a policy in place ensures everyone is on the same page and enables operations to remain smooth.

Communicable Disease Policies

During the Covid 19 pandemic, many companies introduced protocols to ensure the safety and well-being of their employees. These included rules around staying home if unwell, wearing masks, getting vaccinated, maintaining social distancing, and having regular tests conducted.

Companies should reevaluate their existing policies and update them so that they are not only applicable to the Covid pandemic but any potential future communicable disease or virus. This will help ensure that businesses are well-equipped to handle such occurrences with minimal disruption.

Diversity, Equity, and Inclusion

Incorporating a Diversity, Equity, and Inclusion (DEI) mission statement in the employee handbook sends a strong statement to employees that the company is committed to DEI. If that seems too bold, consider using the word “employee” and “they/them” throughout the handbook instead of gender-specific pronouns.

Pay close attention to any company leave policies and make sure they are not exclusive. Providing additional medical benefits when an employee gives birth may lead to discrimination cases from other staff members who have medical issues unrelated to childbirth that require them to miss work.

Offering a paid medical leave benefit regardless of the reason is not only more equitable but also provides cover for more scenarios. This should be prioritized over only providing it for childbirth-related issues.

Progressively, companies are shifting from “maternity” leave to “parental” or “caregiver” leave for bonding with a child. This type of benefit should also be available to families who adopt, use surrogacy, or foster care when growing their family- not just those who experience childbirth.

Security and Privacy Protection Policies

To ensure a safe and secure work environment, employers should regularly update their security policies and procedures for both in-office and remote workers. They should also update their social media policies to further protect confidential information and address any potential privacy concerns.

Ensure Employee Handbook Compliance

It’s no good having an employee handbook if employees don’t know what it is or how to access it. To make sure everyone knows where to find the handbook, you should have an electronic version with embedded hyperlinks for swift navigation.

These can include links for applying for benefits, emails for contacts, and links to other related policies. Rather than relying on hardcopy employee handbooks, organizations now have the ability to keep policies up-to-date electronically. This makes it easier for them to make amendments quickly, without having to print out and distribute new versions.

It is essential to review and update employee handbooks with legal counsel every year in order to stay up to date with the ever-evolving work environment, pertinent laws and regulations, and also promote fairness and inclusivity throughout the organization. This process helps establish a strong company culture.

Employment and Benefits Law Changes in 2023

by Jim Taylor | Jan 17, 2023 | Compliance

On December 31st, 2022, the Consolidated Appropriations Act of 2023 was signed into law. This is a sweeping piece of legislation that provides funding for various federal departments and agencies and includes many changes to employee benefit programs. These changes expand unemployment benefits, as well as add stimulus payments and other provisions that will affect the lives of millions of Americans.

Here are the Employment and Benefits highlights.

New Non-Compete Agreement Regulations

Although noncompete agreements have become increasingly common in the workplace, recent changes to regulations have made it more difficult for employers to enforce these agreements. The proposed regulation would deem the use of noncompete clauses in an employment contract by employers as an unfair practice in terms of competition. If the proposed rule becomes final, it would extend to paid and unpaid workers including consultants and independent contractors.

Furthermore, employers would need to notify their employees that the non-compete provisions included in their current agreements would now be unenforceable. There are still several steps that must be completed before the rule becomes binding.

Although the new regulation doesn’t explicitly address similar contractual commitments like nondisclosure agreements, they might still be considered unlawful if they produce effects similar to those of noncompetes.

Pregnant Workers Fairness Act in CAA 2023

The Pregnant Workers Fairness Act (PWFA) was designed to protect the rights of pregnant workers by requiring employers to make reasonable accommodations for pregnant workers, such as providing additional breaks or light-duty tasks.

It also provides protections (similar to those found in the Americans with Disabilities Act for disabled employees) that prohibit employers from discriminating against pregnant workers, denying them job opportunities or promotions, and requiring them to take unpaid leave. The PWFA ensures that pregnant workers have the same rights and protections as all other employees.

It works to ensure that employers reasonably accommodate employees for circumstances like “pregnancy, childbirth, and related medical conditions.”

Pump Relief for Nursing Mothers Act

This CAA 2023 provision expands on the 2019 Pump Relief for Nursing Mothers Act to ensure they have access to private and comfortable spaces in which to express breast milk during their workday. The law requires employers to provide reasonable break time and suitable private space, other than a bathroom, for nursing mothers to express milk.

This law also protects against discrimination and retaliation against nursing mothers who choose to take advantage of this benefit and extends the duration from up to one year after the child’s birth to two. The Pump Relief for Nursing Mothers Act is an important step toward creating an equitable workplace environment for all employees.

Additionally, nursing mothers are entitled to compensation for any time they spend working while expressing milk.

Telemedicine and HSA/HDHP Relief Under CAA 2023

CAA 2023 permits a short-term extension of Covid-era regulations that permit individuals to avail themselves of pre-deductible telemedicine benefits even if they are making HSA contributions.

Telemedicine has become an increasingly popular way for people to access medical care without having to leave their homes. Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) are becoming more popular among employers as a way to provide relief from rising healthcare costs. HSAs allow individuals to set aside pre-tax money for qualified medical expenses while HDHPs offer lower premiums in exchange for higher deductibles and out-of-pocket costs.

Telemedicine can be used in conjunction with these plans to help reduce costs associated with traditional office visits while still providing quality care. CAA 2023 temporarily eliminates the need for people to disqualify themselves from HSA contributions to receive these benefits.

Prescription Drug Reporting Relief

Prescription drug reporting relief provides financial relief for the enforcement of the system of laws and regulations that ensures individuals are receiving the right medication at the right time and in the right dosage, while also providing safeguards against fraudulent activity. CAA 2023 provided additional clarifications and flexibilities for the 2020 and 2021 calendar year reports including the removal of certain previous restrictions.

To address the confusion the new reporting requirements caused, federal agencies have asserted that group health plans using a reasonable interpretation of the rules in good faith will not be penalized for errors made in their 2020 and 2021 reports.

CAA 2023 MHPAEA Update

The CAA 2023 update to the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) to help fund state enforcement of comparative analyses requirements of nonquantitative treatment limitations (NQTLs). MHPAEA seeks to ensure that mental health and substance use disorder services are treated similarly to medical and surgical services.

The CAA 2023 MHPAEA updated this by requiring insurance companies to provide more coverage for mental health and substance use disorder services.

In Conclusion

The Consolidated Appropriations Act of 2023 has created several changes in the way employers provide benefits to their employees. This act is sure to have far-reaching implications for employers and employees alike as it affects everything from healthcare coverage to retirement options. Employers should understand how this act will impact employee benefits so that they can make informed decisions about their future.

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