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What Employers Need to Know About Illinois Recreational Cannabis Law

On June 25, 2019, Governor Pritzker signed the Illinois Cannabis Regulation and Tax Act into law, making Illinois the 11th state to legalize recreational cannabis. The law went into effect this January and dispensaries sold over $10 million worth of recreational marijuana in the first week.

The legalization of Illinois recreational cannabis has potentially serious ramifications for business owners, HR professionals, and managers. Many fear that their employees will show up high at work or get high at work during breaks. And because using recreational marijuana is no longer in itself illegal in Illinois, employers can’t enforce zero-tolerance policies towards its use – just its use at work.

While there are valid concerns, Illinois recreational marijuana legalization doesn’t pose an existential threat to employers. As long as you are careful and implement a few straightforward policies, there is no reason to fear legal recreational cannabis.

So, how can you protect your business from having employees show up high at work and from discrimination suits for taking action against employees for being high at work? In this article, we’ll explore:

  • Concerns About Recreational Marijuana in Illinois
  • Preventing Employees From Being High at Work
  • Protecting Yourself Against Lawsuits for Policies Against Marijuana in the Workplace
  • Why Illinois Recreational Marijuana Legalization Isn’t a Threat to Businesses
  • How to Learn More

Concerns About Recreational Marijuana in Illinois

Whether you support it or not, Illinois recreational cannabis legalization is a reality. What does that mean for you as a business owner, manager, or human resources professional?

For the most part, your policies on recreational marijuana and drug testing in the workplace shouldn’t have to change. But the way that you enforce those policies may need to be modified.

Despite what some business owners think, and some overeager employees might insist, your employees aren’t suddenly allowed to show up high at work. Employers are still allowed to have zero-tolerance policies for the consumption of recreational marijuana, intoxication from recreational cannabis, or the storage of marijuana during work hours or while on call.

But you’re no longer allowed to take action against employees who use recreational marijuana outside of company time and are not high at work. Many employers might not have a problem with this on the face of it. After all, off the clock employees’ time should be their own unless the after-effects impact their job performance.

However, even if you fully support the use of recreational cannabis outside of work, the legalization of recreational marijuana in Illinois makes it harder for you to prevent employees from being high at work. And it exposes you to potential discrimination lawsuits if you take action against employees for being high at work based on evidence of their use of recreational cannabis in general rather than just at work.

After all, there is no equivalent of a breathalyzer for marijuana as of yet. That means that there is no surefire way to tell if an employee is high at work. And methods for drug testing in the workplace have varying degrees of accuracy. Many companies that are currently drug testing for marijuana are using hair follicle drug testing. But hair follicle drug testing is only useful to tell whether or not an employee has used recreational marijuana in the past several weeks or even months. That means that hair follicle drug testing is now more or less obsolete for drug testing in the workplace in states with legalized recreational cannabis. And urine tests are not even a reliable solution for drug testing in legal states as they can deliver positive results for recreational marijuana use anywhere between two weeks and a month in the past.

You might think that you can still take action against employees for using recreational marijuana during off hours because recreational cannabis is still illegal on a federal level. That might be true if the Illinois law simply allowed employers to control marijuana use at work and did not give the same right for off-work hours. But the 600-page law amends the Illinois Right to Privacy in the Workplace Act that prohibits employers from punishing employees for using legal substances outside of work to expand the definition of legal substances to include recreational cannabis and medical marijuana. So while you won’t break federal law by punishing employees for consuming recreational marijuana outside of work, you will be in violation of state law.

So, how can you stop employees from being high at work without breaking the new Illinois recreational marijuana legalization law or exposing yourself to lawsuits?

Preventing Employees From Being High at Work

If you can’t rely on traditional drug testing in the workplace to prevent employees from being high at work, what can you do?

The Illinois recreational cannabis law establishes reasonable suspicion or good-faith belief that an employee is high at work as a legitimate standard for taking action against that employee. So, until somebody invents foolproof technology for marijuana-use testing to see if an employee is currently high at work, your best bet is to leverage the reasonable suspicion standard.

How can you take advantage of the good-faith belief standard as laid out in the Illinois recreational marijuana bill? The first step you should take is to train supervisors and managers on how to identify drug use, including distributing reasonable suspicion checklists that they can fill out for incident reports, and educate all of your employees about the reasonable suspicion standard that will be used to tell whether they are high at work. That way, your team will be prepared to meet the standard and your company will be sheltered from liability for enforcing the standard. You should also include the reasonable suspicion checklists in all of your accident report forms, especially if your business is especially susceptible to workplace-safety issues.

According to the Illinois recreational marijuana legalization law, these are the symptoms that your team should record if they suspect an employee is high at work and that you can use to meet the good-faith standard:

  • Changes in speech, dexterity, agility or coordination
  • Irrational, unusual or negligent behavior when operating equipment or machinery
  • Disregard for the safety of others
  • Carelessness that results in any injury to others
  • Involvement in any accident that results in serious damage to equipment or property
  • Production or manufacturing disruptions

So long as you are meticulous about recording symptoms at the time, you should not have to fear reprimanding employees for showing up high at work. Under the Illinois recreational marijuana bill, if an employer demonstrates a good faith belief that an employee is high at work, the burden shifts to the employee to prove that they were not impaired.

And you can still use drug testing in the workplace as part of your efforts to dissuade employees from being high at work. Random drug testing for marijuana is explicitly permitted under the new law and can provide additional support for reasonable suspicion claims. And you can maximize the usefulness of random drug testing by reviewing your methods for drug testing in the workplace to ensure that you are testing for use in the past 6-12 hours rather than the past 30+ days. For instance, replace hair follicle drug testing with more accurate saliva or blood testing. Just don’t use drug testing as the sole justification for any disciplinary actions.

Protecting Yourself Against Lawsuits for Policies Against Marijuana in the Workplace

Now that you know how you can effectively address the use of recreational cannabis in the workplace, let’s take a look at how you can safeguard yourself against lawsuits when you take action against an employee for being high at work.

First and foremost, don’t take action against employees without the standards we outlined in the last section and always air on the side of caution, even if you meet the reasonable suspicion standard. It’s generally not worth risking serious disciplinary action against an employee unless their use of recreational marijuana poses a threat to their productivity or workplace safety, and if that is the case, then they have probably well surpassed the good-faith suspicion standard.

Beyond following proper enforcement procedures, another step that you can take to minimize your liability is to give employees advanced notice regarding any changes in drug enforcement policy and to provide comprehensive education about the recreational marijuana policies and their enforcement. This can head off claims of unfair surprise, prevent unnecessary lawsuits from being filed because an employee didn’t know what the policies were, and ensure that managers enforce the policies properly.

You may well have to review your drug enforcement policies as well as your anti-discrimination policies because Illinois recreational cannabis legalization adds pressure behind previous discrimination issues. Recreational marijuana enforcement has a history of racial bias and you have to tread especially carefully to avoid any semblance of bias, whether conscious or unconscious. So, conduct rigorous implicit and explicit bias training and make sure that random drug testing in the workplace is genuinely random and applies to all employees equally.

So long as you follow these steps, you shouldn’t have too much to worry about regarding discrimination lawsuits as a result of the legalization of recreational marijuana in Illinois.

Why Illinois Recreational Marijuana Legalization Isn’t a Threat to Businesses

The good news is that unless you work in an industry fraught with workplace-safety concerns, such as construction, Illinois recreational marijuana legalization is cause for caution rather than concern. As long as you put the right systems in place, there’s no reason to be too worried about the legalization of recreational marijuana. You will still be able to stop employees from being high at work and take action against employees who do use recreational marijuana at work, without fear of damaging lawsuits.

And while you should protect yourself from repeated workplace intoxication that causes performance or cultural issues and from discrimination lawsuits, casual use by employees should not be an issue for most employers. Ten other states have legalized recreational marijuana and businesses continued to thrive. States with legalized recreational cannabis states represent four out of the top five state economies in the country and California, the poster-child for legalization, is the largest state economy in the country. Illinois business owners will be fine – so long as they handle the transition correctly.

Illinois recreational cannabis even presents opportunities for employers to set themselves apart and win the war for talent. According to a 2019 survey by PBS Research, Civilized, Burson Cohn & Wolfe, and Buzzfeed News, half of Illinoisans surveyed said that their ideal workplace would permit marijuana use outside of work but that two-thirds were uncomfortable with use in the workplace. If those numbers are accurate, most employees are likely to respect the prohibition of marijuana use at work and business owners can improve their employer branding by taking a hands-off approach to recreational cannabis use outside of work.

How to Learn More

The legalization of Illinois recreational cannabis has made things a lot more complicated for business owners and HR professionals throughout Illinois. There’s no way that we can cover all of the complexities and details of how you should handle the legalization of recreational cannabis, prevent employees from being high at work, and protect yourself from discrimination lawsuits in one article. Nor are we attorneys who can give you sufficient legal advice.

That is why we’ve enlisted the help of an attorney who is well-versed in all things employment law to help guide business owners and HR professionals through this turbulent transition. Heather Bailey is a partner at SmithAmundsen’s and an expert in employment and labor counseling and litigation. She’ll be joining our very own HR Client Manager Karina Castaneda for a comprehensive free webinar on understanding the ins-and-outs of the Cannabis Regulation Act and how it affects Illinois employers.

Join us on February 19th at 11am CST to learn what these two experts have to say about preparing your company for legalization. Register Today!

The Complete Guide to Employee Onboarding

The Complete Guide to Employee Onboarding

The Power of Getting Onboarding Right

A new employee’s first days and weeks of work are a crucial time. Their early impressions of the organizational structure, leadership, climate, and culture of their new environment will directly affect the way in which they approach work in the coming months and years.

When organizations have a clear, purposeful, well-organized approach to onboarding, new hires get the structure and support they need to thrive. That’s why 79% of business leaders say onboarding should be an “urgent” or “important” priority.

On the other hand, when incoming talent is thrown into the fire or not provided the education they need to hit the ground running, it significantly lowers productivity, both for the confused, under-served new-hire and their teammates, who must constantly take time out of their own work hours to triage knowledge and skill gaps.

Preventing those hang-ups is one of HR’s main responsibilities. With a proactive, straightforward, integrated approach to onboarding, you can ensure that creating a great experience for your new hires doesn’t come at the expense of your current team’s productivity.

Moving forward, we’ll explore:

  • The true scope and definition of onboarding
  • How HR, IT, and each department or team within an organization can support great onboarding
  • Five things all organizations need to do to get onboarding right

What is Onboarding, Really?

In an HR context, onboarding is the process through which new hires gain the knowledge, skills, tools, strategies, and motivation they need to become great team members and productive employees.

In the past, companies often divided the functional, logistical, and support needs of a new hire (“onboarding”) from cultural initiation and policy/accountability review (“orientation”), but as with many other aspects of HR, leading organizations are moving toward a whole-employee model. As a result, onboarding is coming to encompass both sets of responsibilities.

That’s actually good news for HR professionals, as it helps focus on what most of us are really passionate about: setting people up for success.

Let’s break down that onboarding definition and look at each individual element with an eye toward what a strong procedure can truly accomplish.

Knowledge Transfer Requirements for New Employees

Your hires need all sorts of knowledge in order to thrive in their new roles. They already have most of the functional understanding they need – that’s why you hired them – but you need to teach them your specific expectations for success.

Knowledge transfer considerations include:

  • Corporate structure and norms
  • Policies and procedures
  • Employee benefits offerings
  • Education on company values and culture goals
  • Emergency preparedness procedures
  • Attendance policies, earned time structures, etc.

Skill Training Needs for New Employees

Incoming talent likely has a track record of success on some level, but that doesn’t mean every one of them knows how to complete day-to-day tasks in the specific way your team prefers. Ensuring your new-hires hit the ground running in a positive, productive manner means identifying and mitigating skill gaps as quickly as possible.

The skills you need to reinforce with your new hires will vary depending on the role and each professional’s existing skillset, but it’s best to have plans in place to address issues like:

  • Skill assessments for incoming talent to gauge education needs
  • Tutorials and lessons on relevant work software/ERPs/etc.
  • Leadership coaching for new or emerging managers
  • Specific device training for technicians
  • Guidance on professional communication

Tool Acquisition for New Employees

Connecting your new employees with the physical tools they need to do great work is just as important as equipping them with the right knowledge and mindset.

Knowing what each new-hire needs requires a deep understanding of your organizational chart and proactive communication across a number of departments.

For each team member you welcome into the fold, you need to determine and fulfill their needs as quickly as possible, including:

  • Access credentials and digital accounts for relevant software/systems (email, salesforce, or github etc.)
  • Work computers (desktop, laptop, etc.)
  • Company mobile devices (cell phones, tablets, etc.)
  • Device accessories (keyboards, chargers, etc.)
  • Traditional office supplies (Pens, folders, etc.)

Strategy Development for New Employees

At some point in their careers, your new employees are going to run into problems. Maybe they’ll have a life-changing event that necessitates an insurance change. Maybe they’ll have an issue with a co-worker that requires mediation, the list goes on and on.

You can greatly reduce anxiety for your team members and set them up for instant success by identifying as many of those common problems and frequently asked questions and proactively addressing them with new hires.

HR can support talent immediately and improve their overall experience by helping them develop strategies for:

  • Addressing problems with colleagues or supervisors
  • Reporting facilities or maintenance-related issues
  • Contacting security
  • Connecting with IT support
  • Discussing performance, goals, and progress
  • Communicating across departments

Building Motivation for New Employees

Knowledge transfer, skill building, tool acquisition, and strategy development are the four most important onboarding considerations when it comes to delivering a new employee who is ready to do a great job and become a fully integrated member of your team and culture.

On the other hand, many organizations and HR teams that do those things well still miss out on the opportunity to use onboarding as a time to infuse new team members with impactful motivation including:

  • Frameworks and structures for bonuses, raises, equity options, etc.
  • Introduction to the value of day-to-day perks and employee culture initiatives
  • Opportunities to interact with and receive mentorship from standout talent
  • Education on company success stories, exciting innovations, and other news

Onboarding as a Whole-Company Responsibility

When you look at the scope of what’s been laid out, it’s apparent that no HR professional or department can build a great onboarding process in isolation. Integrating and empowering new team members as quickly as possible must be an organization-wide value and priority in order to harness onboarding for talent maximization.

During any onboarding process, IT should be one of your closest allies. They provide the functional tools and support that complement the great job your department does preparing new hires to become great employees.

In fact, the most cutting-edge approaches to new employee onboarding are beginning to use tech platforms to blur the lines between IT and HR with an eye toward streamlining the process.

For now, however, let’s consider the traditional departmental divides to think about how responsibilities are generally spread out across HR, IT, and each new hire’s department or team.

HR Onboarding Checklist

  • Completion of onboarding documents and forms
  • Data entry in HCM and appropriate employee databases
  • Policy review/handbook sign-off
  • Payroll enrollment
  • Benefit enrollment
  • Physical orientation to the office or workspace
  • Introductions to new supervisor and team

IT Onboarding Checklist

  • Hardware assignment
  • Account/credential creation
  • Digital workspace creation
  • Offering availability for increased support during onboarding time

Team-Based Onboarding Checklist

  • Introduction to work/communication norms
  • Connecting new hires with resources that close their skill and knowledge gaps
  • Proactively communicating with HR about emerging need during onboarding period

How Interdepartmental Collaboration Improves Onboarding

When there is a strong communication framework in place and a well-articulated onboarding plan, HR, IT, and any other relevant stakeholders have access to the tools and structure they need to help new employees become thriving, impactful team members as quickly as possible.

The better the integration between their work efforts, the faster and easier it is to provide comprehensive onboarding and create a new talent orientation that sets everybody up for success.

At the same time, coming to the table to discuss and address onboarding needs together fosters collaborative problem-solving between different teams and departments who might otherwise not interact with each other. That whole-company understanding of supporting and managing talent helps create a strong organization from top to bottom.

Top 5 Employee Onboarding Musts

  1. You Must Work Together with Your Colleagues

As we just detailed above, no business can onboard talent effectively if any individual or single department is responsible for the whole process.

If your HR department is feeling crushed under the weight of onboarding responsibilities, it’s crucial to reach out to your colleagues and advocate for the support you need to improve engagement and results across the organization. Tell your leaders what you really need from them to do an excellent job.

If you’re not getting the support you need from IT or some other department, find a way to address the issue, either by connecting with tools that allow your HR team to take on traditional IT tasks or by building integration and closer communication between your teams.

2. You Must Ensure Each Member of Your Team is Fully Accountable

When your onboarding process is complete, every single new hire should know which responsibilities, requirements, policies, and procedures are relevant to them. Without that backbone of accountability, it’s impossible to manage talent proactively or demonstrate how your department is creating a safe, productive workplace.

Of course, it’s not just important for employees to know the rules and policies; it’s crucial that there is a secure, high-integrity documentation trail backing up that work. That way, if issues do arise, there are vetted and agreed upon mechanisms in place for dealing with the issues.

If your onboarding procedure doesn’t empower your HR department and leadership team to manage, discipline, and hold new-hires accountable for their actions and performance, it’s time for a redesign with accountability in mind.

3. You Must Help Your Hires Make the Best Benefits Elections

Employee benefits overspend is a profitability killer, and as an HR department, preventing it should be one of your top priorities.

New hires need support in order to understand what your company’s benefits offerings really mean and which ones are the ideal fit for their situation. That means you need to provide them with whatever education and clarification they require to get the coverage they need without selecting something that will create excess costs for themselves or the company.

Part of that puzzle is connecting them with the right materials they need (your benefits broker should be a major help in this effort), but it’s equally important that your enrollment and benefits selection interface is clear, easy-to-use, and designed to answer user questions and prevent confusion.

4. You Must Offer Each Team Member a Workspace That’s Uniquely Theirs

Nobody wants to feel like they inherited the last employee’s setup – it’s a buy-in and motivation killer. Your onboarding process should be standardized in a way that makes things easy for your HR, IT, and other onboarding support professionals but also personalized in a way that truly welcomes each employee to the team.

By the time their onboarding window is complete, each new hire must feel like their functional and professional needs have been met in a way that sets them up to do great work from the outset. That requires a toolkit for provisioning and account creation that creates a bespoke digital workspace for each individual and a framework for communication between departments to make sure needs are recognized and addressed from every angle.

When new employee onboarding feels tailored to a hire’s needs without stretching or inconveniencing any members of your team, you know you’ve built something inspirational and effective for everyone.

5. You Must Make Onboarding Powerful but Easy

This is a theme we’ve come back to time and time again: onboarding should be easy. It must be straightforward in a way that protects the productivity of your core team, and it must feel approachable and engaging in a way that builds buy-in with your new talent.

With that said, that ease of experience can’t come from cutting corners or procrastinating. To work well, your onboarding process must be comprehensive, well-organized, and backed by professionals across your organization. Otherwise, you’re just creating more backlogged work and compromising your opportunity for workforce maximization.

Creating something that balances that flexibility and robust support can seem like a major challenge, but there’s a variety of emerging employee onboarding software providers stepping up to help companies understand how they can streamline and integrate this work.

Key Takeaways

We’ve taken a broad look at onboarding to explore its goals, responsibilities, and a few strategies and guiding lights you can use to improve your approach. While it’s easy to feel overwhelmed by the weight of the responsibility of onboarding, it’s important to understand that, once you have effective onboarding processes running, it’s much easier to manage current talent and anticipate future needs.

Remember:

  • Getting onboarding right strengthens a company from top to bottom
  • Onboarding can’t just be HR’s responsibility – it’s a team-wide responsibility of which HR should be the hub
  • A successful onboarding process ensures each new employee is ready to be a fully productive member of the team in terms of capability, accountability, and cultural fit
  • It’s important to engage and support new hires by making onboarding personalized, easy, and well-supported

How to Learn More

Rippling is revolutionizing the onboarding process by helping HR professionals support their new hires better than ever.

By integrating all aspects of the onboarding process into a single digital platform, Rippling accelerates the new employee orientation experience, connecting hires with the tools, coverage, and credentials they need with a minimal number of clicks.

To learn more about how Rippling can smooth the employee onboarding process at your business and create a new way of managing HR and IT responsibilities, contact them today.

Modernizing Your Approach to Performance Management

Too many in management, from ground-level supervisors to C-level leadership, have trouble answering questions regarding their team’s performance in an honest, fact-driven way that speaks to actual performance and not just day-to-day habits or cultural fit. This disconnect isn’t for lack of trying– just about everybody understands that great work must be done to create a great enterprise. It’s articulating what that performance looks like and actually assessing it within your employees that’s so tricky.

Make no mistake: strong performance management is the difference between a promising organization growing into a business juggernaut or stagnating at not-quite-there. It’s what separates a solid leadership team from an excellent one and determines who are the flashes in the pan and who are the sustained innovators and disruptors.

Moving forward, we’ll explore:

  • Why industry standard approaches to performance management are often not efficient nor impactful
  • Why all businesses must modernize their approach to performance management in the near future to address the needs of the modern workforce
  • Specific mindsets, tools, and approaches organizations can use to begin transforming their performance management processes

Why Most Approaches to Performance Management are Outdated

The way we work, interact with our colleagues, and use technology on a daily basis has outgrown the traditional strategies that drove performance management and assessment in the 20th century. Our approach to accountability has fallen behind the pace of work, and that creates risk.

Perhaps the greatest example of this is the fact that most discussions about employee feedback and performance management are still built on qualitative feedback from direct supervisors. Managers fill out a scorecard for each employee, provide verbal or written comments, and, when applicable, create plans for improvement.

Here’s what’s missing from this traditional approach: in nearly every business where this legacy assessment practice is used, there are tech-based work management systems in place creating data that could be used to inform a much realer, more focused ongoing discussion.

That means many in business are choosing qualitative over quantitative and giving preference to supervisors’ thoughts and feelings over actual measures of worker quality and productivity. That method defies everything we know about the power of data and analytics in the modern workplace.

Furthermore, the traditional performance management model treats each individual employee as though they were an island, emphasizing only their direct relationship with their individual work and their direct relationship with their supervisor/manager/assessor. That approach is out of alignment with what we’ve collectively learned about the power and importance of teambuilding and company culture over the last twenty years.

Why Modernize Your Approach to Performance Management?

In order to gain the best possible understanding of the potential of your team and asses your areas of strength, weakness, and need, it’s crucial to have a modern, data-driven performance management and assessment framework in place. Any organization articulating a performance management strategy for the first time, or any business with a framework more than five years old, should prioritize this work to support short- and long-term viability.

Talent relations is increasingly an area of federal, state, and local regulation. Outdated performance management frameworks leave organizations open to lawsuits, sudden terminations, and potential non-compliance issues. An up-to-date approach to performance management sews up those holes in policy and provides better legal protection for the organization as a whole and each manager or assessor as an individual.

Modern, responsive performance management demystifies the process from top to bottom, creating better support for those in charge of assessment and greater authenticity for those being assessed. Each stakeholder has an appropriate voice in the process, the ability to provide documentation to back up their claims, and the goal-setting framework necessary to ensure everybody grows professionally together.

When you bring your performance management strategy into the era of technology, it breaks down the traditional boundaries between “boss” and “employee” to foster a more productive overall culture and push everyone toward excellence.

Three Things You Can Do to Modernize Your Performance Management Approach

Stop Viewing Performance Management as an Annual Appraisal

A year is an incredibly long term. If you managed a sports team, would you give every player a year of starting time before you assessed their performance? The answer is, probably not.

Great players get the most playing time and the most compensation, and the worst achievers are obviously sent packing, but it’s that 80% in the middle who the true coach can influence and push toward improvement. Good coaches make constant, ongoing assessments, make constant, ongoing feedback, and incentive the day-to-day work on a constant, ongoing basis.

Turning your management/supervisory team into “coaches” doesn’t happen overnight, but it does have the potential to completely transform what work and culture feel like in your business. The first step to unlocking that potential is eliminating your yearly (or even quarterly) performance management model and shifting toward an ongoing assessment structure.

As we’ve said, the increased availability of worker data thanks to technology makes this work much easier. Managers can use ERP interfaces, project management systems, and so on to monitor what employees are doing, how they are working toward goals and deadlines, and so on, each day or week. It’s easier than ever to see when someone is falling behind and make a correction or recognize an employee who is taking things to the next level at your organization.

While it seems like that kind of constant supervision creates new work for managers and new stress for workers, it actually streamlines and reduces both over time.

Adjusting to these new practices can take some time for supervisors at first, but once they’re plugged into performance management practices as part of their daily work, there’s no more quarterly or yearly assessment season crunch, and what was once a major stressor is now a harmless daily task. For workers, ongoing assessment means no more nervously waiting to find out how you’re doing, and each individual assessment or evaluation feels less stressful or punitive.

Build Clear Expectations and Establish Clear KPIs

We’ve addressed the concept of data several times already, but it cannot be stressed enough: The only way to turn performance management into a true performance driver is to stay rooted in data and objectivity.

One of the biggest issues managers have when it comes to assessment is that they might be responsible for assessing a team of 25+ people in a variety of different roles and simply don’t know where to start. Data-minded thinking absolutely obliterates that issue and provides strong anchor/talking points for any employee evaluation.

In order to make that work, though, your organization and HR departments must have a well-defined organizational chart with goals and measurable KPIs established for each professional, team, or department. Again, that sounds like a major task at first, but once it has been completed, there is a much more comprehensive vision for the organization and talent in place, and far greater clarity when it comes to who should be doing what.

When you have clear KPIs and measures of success for each position or role in the company, it’s easier to onboard new hires in a meaningful way, help laggards see where they need to improve, and identify superstar leaders of tomorrow. Employees can track their progress over time, and managers can mold each worker’s skillset or professional growth in relevant, individualized ways. That data-minded thinking makes everything less personal and less punitive, inviting each worker to create a vision of success for themselves in their particular role.

Establish High Performance as a Key Company Value

One of the biggest reasons employees fall short of expectations is because they didn’t fully understand those expectations. Either the importance of the work or the

value of doing an exceptional job is unclear or employees aren’t sure what great work looks like to you.

By making performance expectations clear, visible, and a daily part of the work experience in your organization, you can create a company culture in which your employees strive to be their best selves, meet identified goals, and brainstorm new ways of doing work better. When doing great work is a foundational pillar of what you do, employees will continuously be encouraged to go above and beyond.

Establishing a culture of high performance is much more complex than simply saying you want to do it. In order for that culture to feel authentic and for workers to buy in, you must create a clear roadmap that shows what excellence looks like and how collective excellence will grow the company and improve the lives of each employee.

Getting that right requires strong employee education, both to get new hires oriented and to provide veterans with the tools they need to grab onto the evolving face of work in their organization, as well as outstanding communication and a commitment to fostering a strong bond between the organization and its team.

Key Takeaways

Performance assessment has the potential to help a business become its best, most profitable self, but in order for that to happen, a modern, responsive system is required. Remember:

  • Performance assessment must be an on-going process to work well
  • When you get performance assessment right, everybody gains value: the business, the individual workers, and the middle management who does the assessing
  • Quantifiable data and KPI tracking make performance assessment easier, fairer, and help the whole process stand up better to scrutiny
  • The key to any performance-centric strategy is making sure team members truly value excellence and know what excellence in their role looks like on a day to day basis

How to Learn More

If you’re a business leader looking to build an impactful, forward-facing performance management strategy, be sure to join us on Wednesday, December 11th to learn about The Future of Performance Management! 

This free webinar from Launchways will be packed with actionable insights about emerging best practices for performance assessment including…

  • How to assess the impact of your current performance management program and get started on building something even better
  • How to recognize the common pitfalls of performance management
  • How to replace an annual assessment system with a continuous feedback loop
  • How to deliver difficult feedback and establish a shared view of reality
  • How to manage both high- and low-performing talent effectively

The hour-long learning experience will feature presentations and Q&A time with an all-star panel of veteran business leaders who know what it takes to build, manage, and continuously improve a great team. Presenters will include:

  • Jodi Wellman, Co-Founder of Spectacular at Work, a leading executive coach who specializes in helping business leaders maximize their teams to build success and balance.
  • Adam Radulovic, President at XL.net, an experienced entrepreneur and small business leader with a track record of building and managing profit-driving teams.
  • Gary Schafer, President at Launchways, who has built multiple businesses from the ground up and specializes in scaling high-performing teams for growing organizations.
  • Jon Howaniec, VP & HR Director at Clark Dietz, who has over twenty years experience building high-performing HR processes at fast-growth organizations.

Any business leader, HR Director, or manager hoping to improve their skills as a coach, mentor, or accountability partner should make time to check out The Future of Performance Management: How to Modernize Your Approach and start the process continuously improving their team this December.

Top 10 HR Challenges Growing Businesses Must Prepare For in 2020

HR practices and policies must evolve over time to reflect emerging best practices, changes to regulations, and shifting cultural values.

Throughout the last decade, our shared understanding of what the workplace looks and feels like has gone through significant alterations, and as we near 2020, it’s a logical time for organizations of all sizes and industries to reassess their HR policies and procedures.

With that said, many of HR’s biggest challenges are baked into the nature of the work, but new technologies and innovative approaches are turning those challenges into areas of new opportunity.

Moving forward, we’ll take a look at the biggest HR challenges that growing businesses must have on their radar as we prepare for the new year.

1.   Employee Performance

One of any HR department’s main responsibilities is creating a team and an environment in which people can do great work. No human resources department can operate at its highest level unless there’s a company-wide awareness of expectations and accountability. As a business, you can’t correct, reprimand, or discipline anybody with any real authority unless you’ve clearly articulated goals, KPIs, and an evaluation framework that everybody knows and cares about.

2.      Terminations

Getting termination right is just as important as getting hiring right. The way you separate from former employees affects your reputation in the talent marketplace and the morale of your remaining team.

If you don’t have a codified, iron-clad termination procedure that’s been vetted by your legal team, you could be leaving your organization open to potential lawsuits and fees. Regulations on termination practice vary from state to state, so it’s important to be aware of your local laws, especially if your organization has offices in various states.

3.   Employee Leave (FMLA, Parental, Personal, Other)

The dialogue around planned employee leave has changed tremendously in recent years. The aging population means that many professional age workers are medical or legal custodians of older family members, and shifts in parenting practices, mental health awareness, and beyond have an increasing number of employees requesting time away from the office.

As the employer, you must be prepared for every conceivable leave request and have policies in place that explain when and how much leave is permitted, what process employees must go through for approval, and how their return to the team will be arranged and executed. Any gap in your explicit policies is a potential legal liability.

4.   Harassment Prevention, Training, and Investigations

As we approach the fourth year of the #MeToo movement, public and individual awareness of harassment has never been higher. That means your prevention training procedures and reporting/investigation frameworks must be stronger and more comprehensive than ever in order to provide the best possible protection for you and your employees.

With that said, nothing is more important than follow-through. If you have great policies on the books but don’t honor them, you’re compromising your company vision and creating greater opportunity for your organization to be hurt by legal disputes. If there’s one area of your HR practice that you are targeting for improvement this year, make it your harassment prevention, training, and investigation policies.

5.   Training for Managers

Team- and department-level leadership has the capacity to build great engagement and motivation or send employees running for the door. The best way to ensure the former happens (and to avoid the latter) is to provide your management teams with consistent, explicit training on how to approach coaching, mentoring, feedback, discipline, staffing, etc.

Managers in even the best organizations – especially fast-growing ones – often have gaps in their knowledge of new employee management strategies and best practices. That’s because many of them were promoted into their positions for being all-star workers. While they still have the knowledge and perspective that they showed off in that role, they don’t have the same degree of experience and preparation regarding management responsibilities. By providing them with impactful training, you build your management team into more valuable leaders.

6.   PTO/Sick/Vacation Policies

One of the biggest mistakes organizations make is not clearly articulating how different absences from work should be planned, coded, and compensated. Depending on the state where your business is located, there may be specific definitions of “Paid Time Off” versus “Sick Time” versus “Vacation Time” that you must obey.

Policies must clearly establish a rate of PTO/sick day/vacation time accrual, procedures and appropriate contacts for approval, carry-over maximums, buy-back maximums, and so on. Remember, if you leave any of those considerations out in your official policies, you can be subject to a substantial legal penalty.

7.   Attendance

We’ve already discussed employee leave and PTO, but in addition to those policies, every organization should have clear expectations regarding employee attendance on record. Procedures should exist for maintaining appropriate communication about attendance and building dialogue around excessive absences with an eye towards creating a rich, clear documentation trail for future discipline, termination, etc.

Of course, your exact framework must be dictated by the way you track attendance. Policies must exist to explain expectations for both hourly workers who have a timecard as well as salaried employees, temporary workers, contractors, etc. The better a job you do articulating expectations, the better you can do holding people accountable, keeping them at their desks, and removing team members whose absenteeism affects overall team performance.

8.   Reimbursement Policies

Many states have recently added or changed legislation about reimbursement of business expenses. As 2020 approaches, it’s crucially important that you review your local regulations to double-check that your employee reimbursement policy is up to date.

Your policies need to explain which expenses are reimbursable, what documentation and forms are required for reimbursement application, how applications for reimbursement will be approved, and how reimbursement will be delivered to the employee. The entire program must be spelled out in specifics, or you risk noncompliance.

9.   Legalization of Marijuana

State laws surrounding the use of cannabis have shifted en masse over the last decade, and many jurisdictions now allow for legal medical and recreational use. With that said, marijuana is still illegal at the federal level, and as an employer, you need to understand how that could potentially affect your business and employees who use cannabis.

As state and federal marijuana policy continues to evolve and take shape, you must articulate a clear company policy for today and start proactive planning about what tomorrow’s policy might look like, depending on the results of elections and general direction of the culture.

10.  ADA Amendments Act (ADAA) Compliance

The Americans with Disabilities Act was a monumental piece of legislation when it was passed into law in 1990s, and its scope and complexity only grew with the ADA Amendments Act of 2008. As we near 2020 and our understanding of “disability” continues to evolve, it’s crucial that every corporate organization in America has a specific plan and support framework in place to ensure compliance.

Of course, compliance isn’t just about workplace accessibility; it’s about inclusion and providing team members with services to ensure their needs are met. If you don’t have official policies describing how employee needs will be assessed and met on a continuing basis, you’re only halfway there. At the same time, it’s important to remember how employee leave, absenteeism, and disability can all be interconnected, which means your disability policy must account for leave and vice versa.

Illinois Employers: Are You Ready For Legalized Recreational Cannabis Affecting Your Workplace?

If not, now is the time! Illinois just became the 11th state to permit recreational cannabis. Governor Pritzker signed this legislation, as promised, on June 25, 2019.  Beginning January 1, 2020, the Cannabis Regulation and Tax Act (“Act”), will allow adults (21+) in Illinois to possess and consume cannabis. While there is a lot “rolled” into the 600 plus page law (pun intended), there are significant employment pitfalls for employers with regard to enforcing drug free workplaces.  We are here to assist you in avoiding these pitfalls and give you some practice tips in preparation of the new law taking affect.

The good news is, the Act expressly permits employers to adopt and enforce “reasonable” and nondiscriminatory zero tolerance and drug free workplace policies, including policies on drug testing, smoking, consumption, storage, and use of cannabis in the workplace or while on-call – which is obviously good for employers.

However, on the flipside, the Act’s language indicates that employers are not allowed to take an adverse action against an applicant or employee for their marijuana usage outside the workplace. This is bad for employers since it makes it much more difficult for employers to identify and address use of marijuana by employees due to issues with marijuana testing not being like alcohol testing which calculates more accurately impairment at the time of testing.  In particular, the Act amends the Illinois Right to Privacy in the Workplace Act (“Right to Privacy Act”), which prohibits employers from restricting employees from using legal products outside of work.  Specifically, the Right to Privacy Act is amended to provide that “lawful products” means products that are legal under state law, indicating that recreational and medical marijuana are legal products that must be treated like alcohol and tobacco. Thus, employers may not discriminate against an employee or applicant who lawfully uses cannabis (recreationally or medically) off-premises during nonworking and non-on-call hours.  Again, a difficult task given a test for marijuana alone will not be enough since testing does not include current impairment.

Much like with the Illinois medical marijuana law, this Act changes the emphasis from whether an employee “used” marijuana while employed, to whether the employee was “impaired” or “under the influence” of marijuana while at work or working. As a result, drug testing without any other evidence of the employee actually being impaired at work or while working will open the door to legal challenges.  Specifically, refusing to hire, disciplining, terminating, refusing to return an employee to work or taking an adverse action against an employee or applicant who fails a pre-employment, random, or post-leave return to duty drug test for marijuana will arguably create a claim for the employee against an employer for a violation of Illinois law.

For example, an employee who undergoes a urine drug test (which shows use of marijuana within 30-45 days) following a workplace accident may argue that “recreational cannabis was lawfully used outside of work, and the accident/injury was unrelated to the employee’s legal use of cannabis outside of work.”  Without more than the drug test result, the employer would be in a vulnerable position to argue against or defend such a claim.  However, if the employer completed a post-accident report, which included a reasonable suspicion checklist, in which a trained supervisor observed and recorded symptoms/behaviors of drug use, the employer would be in a much better position to take an adverse action against the employee and dispute any such claim by an employee based on the observations and positive drug test.

With the changes to the Right to Privacy Act, it is important for employers to understand the potential exposure and damages. Under this Act, aggrieved employees can recover actual damages, costs, attorneys’ fees and fines. As such, employers should make sure their practices and procedures are practical in light of these changes, until and unless the legislature or a court provides further clarity.   

Interestingly, the Act neither diminishes nor enhances the protections afforded to registered patients under the medical cannabis and opioid pilot programs.  The catch here is that while cannabis use is not protected under federal law, the underlying medical condition for which the employee is using cannabis is likely an ADA and IHRA-covered disability!  Much like under the Illinois medical marijuana law, the Act appears to require employers to take an additional step before disciplining or terminating an employee based on a “good faith belief” that the employee was impaired or under the influence of cannabis while at work or performing their job.  After the employer has made a “good faith belief” determination and drug tested the employee – but before disciplining or terminating an employee – the employer must provide the employee with a reasonable opportunity to contest that determination.  Once the employee is provided a reasonable opportunity to explain, an employer may then make a final determination regarding its good faith belief that the employee was impaired or under the influence of cannabis while on the job or while working, and what, if any, adverse employment action it will take against the employee without violating the Act.  Requiring an employee to go through drug testing is still currently the best practice as a positive drug test will provide additional support for a supervisor’s reasonable suspicion determination.

Here Are Some Practice Tips to Protect ‎Your Workforce and Diminish Risk:

  1. Educate yourself and evaluate all Company policies and practices that touch on providing and ensuring a safe workplace, including job descriptions (especially those safety-sensitive positions).  Speak to legal counsel on an intimate basis. Assess workplace cannabis-tolerance and implement policies that can be enforced consistently amongst similarly situated employees.  Policies that should be reviewed (and that could be affected) include those addressing health and safety (including accident reporting, smoking, and distracted driving), equal employment opportunity policies, workplace search/privacy policies and drug testing policies.  You should also review with legal counsel, your drug testing vendor as well as your Medical Review Officer, the drug testing methodology being used to make sure that such is producing results that are useful, accurate and well vetted (e.g., using a test that determines cannabis use within the last 30 days is not as helpful as one that may test usage within 6-12 hours).
  2. Ensure managers and supervisors are well trained and capable of enforcing policies.  Remember – exceptions and favoritism lead to discrimination claims.  Conducting training, especially training on reasonable suspicion detection, will be necessary to avoid legal challenges to a supervisor’s reasonable suspicion determination.  Creating and/or updating forms for accident reporting (including witness statements), reasonable suspicion checklists, and established protocols for addressing suspected impairment in the workplace, is now more critical than ever.
  3. Clearly communicate management’s position and policies to employees, especially where there is a shift in current policy or practice.  Educate employees on the effect of lawful and unlawful drug use and the employer’s policies regarding marijuana.  Remember, marijuana is still illegal under federal law, and, thus, you may have a zero tolerance policy within your Company. We now just have to balance that right with Illinois’ newest law.
  4. If your Company does not have a process already, institute a reasonable accommodation process and policy for employees who are medicinal users of cannabis.  While a Company is not required to keep an employee who must use marijuana while on the job or report to work under the influence, you still have obligations of going thru the ADA process with the employee to determine if you can or cannot reasonably accommodate their disability so that they may perform the essential functions of their job while not being impaired.
  5. Engage competent legal counsel to assist you in this process and in addressing difficult situations before they lead to costly and time-consuming litigation.

Also important to note: more changes are coming to Illinois for employers on January 1, 2020!  On August 9, 2019, Governor Pritzker signed Senate Bill 75 – the Workplace Transparency Act – into law.  Effective January 1, 2020, major new changes will forever alter how Illinois employers manage harassment and discrimination issues as well as other workplace controversies.  This new law requires mandatory sexual harassment training for employees; reporting and disclosure requirements; restrictions on employment agreements and several other mandates related to sexual harassment in the workplace.  Be on the look out for an upcoming blog on these details so you are prepared for the new Illinois world of dealing with sexual harassment prevention.

About the Author

Heather A. Bailey, Esq., a partner with SmithAmundsen LLC, focuses her practice on labor and employment law issues for employers for the past 18 years.  Heather may be contacted directly at: Direct Dial: 312.894.3266, Email: [email protected].

Illinois Employers: What You Need to Know about the New Sexual Harassment Training Requirements

Illinois is seeing some big changes to anti-harassment training requirements for employers. Governor Pritzker signed Senate Bill 75, the Workplace Transparency Act, on August 9th, 2019. This bill amends the Illinois Human Rights Act to add sexual harassment training requirements, in addition to other changes to discrimination laws in the state.

The law is still being formalized by lawmakers, but this is a major accomplishment, as Illinois hasn’t seen laws quite like this ever before. This new bill comes after the Illinois Capitol in Springfield garnered scrutiny and criticism for sexual harassment and related “pervasive behavior,” as state senator Sue Rezin told the Chicago Tribune, particularly within Democratic House Speaker Michael Madigan’s office.

The law is also a response to the entire #MeToo movement that picked up in 2017. According to a report from the National Women’s Law Center, 15 states have now passed new protections, including approximately 200 bills, which are related to protections against workplace harassment.

As these new regulations are going through the approval process, you’re now tasked as an Illinois employer with following updates and understanding what it means for the way you run your business. Here’s everything you need to know about the new requirements, some of which are still being hashed out.

Annual Training Requirement

The bill outlines that employers must give mandatory annual trainings on the following topics, beginning January 1st, 2020. The comprehensive sexual harassment training program has to include the following information:

  • Description and clarification of what sexual harassment is
  • Examples of sexual harassment conduct
  • Information about government provisions, such as what remedies are available to sexual harassment victims
  • Information about the employer’s responsibility to prevent, investigate, and correct sexual harassment

Guidelines for the Service Industry

The bill also outlines requirements for employers in the bar, restaurant, hotel, and casino sectors. Hotels and casinos must offer employees a way to alert security or managers with a portable notification device if they need help, are being harassed, or witness an instance of assault.

Bars and restaurants now must have a policy around sexual harassment that gives employees guidelines on how they can report allegations or file a charge with the state Department of Human Rights. These employers also must offer annual harassment trainings, specific to the industry, in both Spanish and English.

Other Provisions

The law also states that employers cannot require their workers to sign nondisclosure agreements or arbitration agreements that are related to harassment, discrimination, or retaliation.

In addition to protections for regular company employees, independent contractors are also protected from harassment and discrimination under the new law. As the gig economy is picking up, this is important, since companies are working with contractors and consultants more now than ever before. An NPR poll last year showed that one in five jobs in America is held by a contract worker.

The bill also sets out requirements for employers and labor organizations to disclose administrative or judicial decisions that are adverse regarding harassment or discrimination in the previous year to the Illinois Department of Human Rights. July 1st, 2020 is the first date of required disclosures, and will be required every July 1 thereafter.

What happens if you fail to comply?

The bill outlines penalties for employers that fail to comply with the new requirements. These include civil penalties of:

  • $500 if the company has less than four employees
  • $1,000 if the company has more than four employees

Repeat violations could be as much as $5,000 for each instance.

Key Takeaways

The bottom line is that Illinois may pass legislation that all employers, regardless of their number of employees, must provide sexual harassment training to each and every employee.

Key points to remember about the proposed bill are:

  • If the bill is finalized, training programs must be implemented beginning January 1st, 2020.
  • There are specific guidelines you must follow as an employer when implementing the harassment trainings, such as disclosing information about what harassment is and steps victims can take to report it.
  • Employers that are bars, restaurants, hotels, and casinos have additional guidelines to follow regarding the safety of their employees.
  • Employers cannot require workers to sign nondisclosure agreements related to harassment, discrimination, or retaliation.
  • Independent contractors are also protected under this law.
  • Penalty fees may apply if employers fail to implement the sexual harassment trainings.

Launchways is your trusted resource, always keeping you informed of upcoming changes related to compliance. Once the sexual harassment training requirements are solidified, we will offer a strategic solution to the training requirement.