by Jim Taylor | Sep 5, 2023 | Company Culture, Human Resources, Leadership
August has been an eventful month for government agencies overseeing workplaces. With new and returning rules pushed forward by both the National Labor Relations Board and the U.S. Department of Labor, employers and HR leaders need to take notice.
Companies should begin preparing now so they have less to do when the rules are finalized and implemented.
Here are a few of the key points for HR leaders to consider.
News From the National Labor Relations Board
Last week, the National Labor Relations Board (NLRB) announced returning to a rule that would reduce the time between a union expressing interest in representing employees and the actual union election. Around the same time, the NLRB also changed the process for unions to organize, making it easier for unions to organize and could even remove the need for an employee vote.
The Final Rule ensures the following steps occur more quickly to make pre- and post-election hearings more efficient.
- Pre-election hearing
- Distribution of election information to employees
- Ensures elections are held quicker
Chairman Lauren McFaren stated, “It’s the basic principle of the National Labor Relation Act that representation cases should be resolved quickly and fairly. By removing unnecessary delays from the election process, the new rule supports these important goals, and allows workers to more effectively exercise their fundamental rights.”
This could be good news for unions, but it may not be the best news for your company.
Recent polls show that support for labor unions is strong across many industries. Therefore, no industry is entirely safe from the possibility of unionization.
What Does This Mean for Your Company?
If you are an HR leader of a company at risk of unionizing, you should take these developments seriously. Building positive relationships with your employees is crucial to union avoidance.
Supervisor training plays a critical role in maintaining employee satisfaction and reducing the likelihood of unionization. Well-trained supervisors understand company policies, labor laws, and employee needs. This enables them to foster positive workplace environments.
When supervisors effectively communicate, provide support, and address concerns, employees feel valued and heard, diminishing their desire to seek representation through unions. Unfortunately, during the pandemic, supervisor training became something of an afterthought, and that is becoming evident.
News From the U.S. Department of Labor
In another recent development, the U.S. Department of Labor (DOL) has also proposed a new rule. This rule aims to raise the minimum salary that workers must earn to be exempt from overtime pay under the Fair Labor Standards Act.
Basically, the proposed rule would increase the minimum salary for exemption from $684 per week to $1,059 per week or $35,568 per year to $55,068 per year. The rule would also raise the “highly compensated employee exemption” from $107,432 annually to $143,988 per year. Furthermore, the DOL could automatically adjust these figures every three years.
What Does This Mean for Your Company?
Like most employers and HR leaders, you may need to figure out which jobs will be impacted by this proposed rule. Then you might weigh potential overtime implications against the following options:
- Employing measures to shift duties and reduce costs
- Switching employees from exempt to non-exempt
- Increasing employee salaries
While inflation has led many employers to increase salaries over the past few years, few have increased by the substantial margin that the DOL’s rule suggests.
What Can You Do?
Although the NLRB’s changes become effective December 26, 2023, the DOL’s rule is likely to be decided in late 2023 or early 2024. Until then, the DOL encourages the public to share their opinions before it implements a final rule.
Employers who might be affected by this new rule should definitely take advantage of the opportunity to provide feedback. The DOL is required to consider all public comments before making a final decision.
Although you should only make big changes once the DOL rule is finalized, it’s not too early to begin thinking about your strategy. That will make things easier when the final rule is eventually published.
When planning your response to the new NLRB rules, you should immediately fortify your HR department and begin training your supervisors and managers. Trained supervisors can resolve workplace issues promptly and fairly, addressing employee grievances without needing third-party intervention.
That not only strengthens the employer-employee relationship but also contributes to a harmonious work environment that is less susceptible to unionization efforts.
by Devon Bellamy | Aug 29, 2023 | Employee Benefits, Human Resources, Mental Health in the Workplace
Mental health continues to be a hot topic of conversation among HR leaders and health insurance providers. Recently, the Departments of Labor (DOL), Health and Human Services (HHS), and the IRS proposed a rule to amend the existing Mental Health Parity and Addiction Equity Act (MHPAEA).
With the DOL’s recent request for input from Group Health Plans and issuers regarding Nonquantitative Treatment Limitations (NQTLs), companies should prepare. They can anticipate ongoing discussions about how mental health benefits are administered.
Following their proposed rule, the three departments issued their second yearly report to Congress. In it, they examined mental health parity according to the rules of the Consolidated Appropriations Act of 2021 (CAA).
Here are the highlights.
Common Issues With Mental Health Parity
Unfortunately, only a few Group Health Plans did well. Most failed to meet the criteria guaranteeing equal treatment between medical/surgical and mental health benefits. Furthermore, according to numerous comparative analyses, many issuers still needed improvement. This was even after receiving multiple warnings.
Problems with parity concerning mental health benefits could be categorized into six groups.
- Annual dollar limits
- Limits on treatment, such as coverage duration, frequency, visit count, etc.
- Overall lifetime dollar limits
- Financial prerequisites, such as co-payments, coinsurance, deductibles, etc.
- Accumulated financial prerequisites
- Benefits across all categories
Incidentally, this is an excellent checklist for companies to start reviewing their mental health benefits. The goal is to streamline the review process and lessen the burden on health plans. This establishes a data-driven method for assessing whether these limitations comply with the law.
Although few issuers will undergo government audits, they are still required to comply with the rules. Therefore, the evaluation of benefits through an NQTL analysis and adoption of tactics to ensure parity is necessary.
Reviewing Mental Health Benefits
Take the time to review agreements with your plan’s providers. Plans are fiduciaries. That means, as employers, you are responsible for decisions regarding MHPAEA compliance. There are a couple of things to consider as your company reviews its plan design and benefits.
- How successful is the existing language at addressing mental health benefits?
- Do restrictions or limits exist for mental health issues that do not exist for medical/surgical benefits?
As a decision-maker for your company, you should know your plan’s benefits regarding mental health. In fact, you should be capable of explaining them to employees.
Completing an NQTLs Analysis
Conducting an NQTLs analysis is a given. It has been required since February 2021. In the future, group health plans will be required to gather and assess relevant data. At a minimum, that includes data required by state laws regarding NQTLs and details about the number and percentages of denied claims. This helps determine how NQTLs affect access to mental health and substance use disorder benefits.
For ERISA plans, a named fiduciary may certify compliance with the rules and a review of the results. They must verify when the analysis is completed and cooperate with an audit if needed.
If the MHPAEA Proposed Rule is accepted, the new requirements apply to plans beginning January 2025. Until then, companies must continue to comply with the existing MHPAEA and CAA requirements.
Key Takeaways
In conclusion, carefully reviewing agreements with plan providers is crucial. Take a close look at the agreements you have with plan providers. The employer is held accountable for any mistakes or choices related to compliance with the MHPAEA. That holds true whether the plan is fully insured or self-funded.
For self-funded plans that work with one or more TPAs (Third Party Administrators), schedule time for discussions about benefits. These conversations should help companies to:
- Engage in the necessary actions
- Pose the right questions
- Carry out a thorough analysis
For fully insured plans, pay attention to the specifics. You should thoroughly understand your plan’s mental health benefits so you can explain them to participants.
This proactive approach is essential. It ensures that mental health parity is upheld and participants receive the benefits to which they are entitled.
by Jim Taylor | Aug 24, 2023 | Human Resources, Mental Health in the Workplace
In recent years, there has been an increased focus on employee well-being and mental health. When the pandemic struck, it affected the work life of many people in varied and unexpected ways. Issues like childcare, healthcare, and remote work have become everyday concerns for many companies. This new reality led to new and renewed concerns about work-life balance, employee burnout, and “Zoom fatigue.” People found themselves working longer hours and taking fewer vacations, worried about losing their jobs. Overall, this has had a negative impact on the collective mental health.
With the added economic instability, the situation can create unhealthy and toxic work environments. Employees might feel like they can’t speak up for fear of retaliation, causing them to be anxious and stressed. This is why psychological safety is so important. It’s the ability to express oneself without fear of retaliation. When employees feel psychologically safe, they can be themselves, take risks, admit their mistakes, ask for help, and communicate honestly.
While companies have historically invested in physical safety in the workplace, psychological safety hasn’t always been a priority. It’s often seen as a nice-to-have instead of a necessity. This needs to change. Companies should prioritize employee mental health and make investments in psychological safety. By doing so, employees can feel safe and comfortable at work, leading to better performance, improved teamwork, and a more positive work environment.
What Is Psychological Safety?
Psychological safety is the belief that one can speak up, take risks, and express oneself without fear of negative consequences. In the workplace, psychological safety allows employees to share ideas, ask questions, and make mistakes without fear of punishment or ridicule. It creates an environment where employees feel comfortable and confident in their ability to express themselves and take risks.
Why is Psychological Safety in the Workplace Important?
Psychological safety is important in the workplace for several reasons. It fosters open communication and collaboration among employees. When employees feel safe to express their thoughts and ideas, they are more likely to work together and share knowledge, leading to better problem-solving and innovation.
Plus, it promotes employee well-being and mental health. When employees feel psychologically safe, they are less likely to experience stress, anxiety, or burnout. This can lead to increased job satisfaction, improved productivity, and reduced absenteeism.
What Are the Challenges?
Creating a culture of psychological safety in the workplace can be challenging. Many workplaces are hierarchical, with a clear power dynamic between managers and employees. This can create a culture of fear and prevent employees from speaking up or taking risks.
Additionally, there may be cultural or societal norms that discourage open expression and risk-taking. Overcoming these challenges requires a concerted effort from both management and employees.
How Can Employers Promote Psychological Safety in the Workplace?
First, employers can encourage open communication and collaboration among employees. This can be done by creating opportunities for employees to share their ideas and thoughts, such as team-building exercises or brainstorming sessions.
Second, employers can foster a culture of trust and respect. This can be achieved by valuing employees’ opinions, being transparent with information, and treating employees fairly and respectfully.
Third, employers can provide training and resources to help employees develop communication and conflict-resolution skills.
Finally, employers can create policies and procedures that support psychological safety, such as whistleblower protections and anonymous feedback channels.
In Conclusion
Psychological safety is an important concept in the workplace that promotes open communication, collaboration, and employee well-being. Creating a culture of psychological safety can be challenging, but employers can use HR solutions to promote it.
By fostering open communication, promoting trust and respect, providing training and resources, and creating policies and procedures that support psychological safety, employers can create a workplace where employees feel safe to express themselves and take risks.
by Jim Taylor | Aug 17, 2023 | Human Resources, Mental Health in the Workplace
Mental health is an essential aspect of well-being that affects every aspect of our lives, including work. According to the World Health Organization, mental health issues can affect productivity and work attendance, leading to significant economic consequences. Addressing mental health in the workplace is crucial to ensure a supportive and healthy work environment for employees.
Companies can play a massive role in raising mental health awareness and making it easier for employees to access help. This can be done by implementing meaningful initiatives and creating an environment where people feel comfortable asking for support.
An October 2022 survey by the American Psychological Association found that nearly 30% of American adults struggle to function due to their high levels of stress, while 76% report that their stress is clearly affecting their health. Mental health issues caused by stress in the workplace are a growing concern, prompting employers to wonder whether they should be doing a better job of providing mental health services.
In order to ensure that their employees are healthy and productive, HR leaders need to prioritize mental health services.
Understanding Mental Health Issues in the Workplace
The mental health needs of Americans have traditionally been ignored. With the COVID-19 pandemic and civil unrest that followed, awareness of this issue has increased, making it easier to speak about it openly. Before employers can address mental health issues, however, it’s crucial to understand the common mental health concerns that employees may face.
Some of the most common mental health issues in the workplace include depression, anxiety, and burnout. However, many employees may hesitate to speak up about their mental health struggles due to the stigma surrounding mental health.
Even though negative stereotypes still exist, real progress has been made in shifting this attitude. Employers must recognize the impact of mental health issues on employee productivity and well-being.
Signs and Symptoms of Mental Health Issues
Employers should be aware of the signs and symptoms of mental health issues. Symptoms can include changes in mood, behavior, and productivity. Physical symptoms such as headaches, fatigue, and digestive problems can also be signs of mental health issues.
Untreated mental health issues can lead to a significant reduction in work performance and productivity. Employees may experience difficulty concentrating, completing tasks, and making decisions.
8 Tips for Creating a Supportive Workplace Culture
The workplace environment has a significant impact on employees’ mental health. Creating a supportive culture that encourages open communication and support can help reduce the stigma associated with mental health issues. Provide a safe and inclusive workplace that values employee well-being by implementing the following steps.
- Implement a confidential workplace stress assessment and take action based on the results. You can purchase an assessment tool or collaborate with your health partner to create a customized one that caters to your employee population. Quarterly assessments are advisable, as they normalize the process and highlight seasonal stressors.
- Encourage mental health conversations to become a regular part of your company culture. Leaders and managers can share their own experiences with stress and the strategies they use to manage it while also encouraging their teams to do the same. It’s crucial to consistently promote your behavioral health programs rather than merely listing them in your benefits guide or burying them in the Employee Assistance Program (EAP).
- Encouraging employees to take breaks and time off can help reduce work-related stress and burnout. Promoting healthy lifestyle habits such as exercise, healthy eating, and adequate sleep can help improve mental health.
- Offering flexible working arrangements such as remote work, flexible hours, and job sharing can help employees manage their work-life balance and reduce stress levels.
- Collaborate with a behavioral health provider that is suitable for your employee population and offers both in-person and virtual access. Providing access to mental health resources such as counseling, support groups, and mental health hotlines can help employees manage their mental health.
- Providing training on mental health awareness can help employees recognize signs of mental health issues and promote a supportive workplace. Employers can organize workshops, training, and awareness campaigns to educate employees about mental health issues and how to support colleagues who may be affected.
- Employers should take responsibility for stressors within their control that could be creating a toxic environment. They can identify and address work-related stressors contributing to poor mental health. This can include providing a manageable workload, offering support for time management, and ensuring employees have the necessary resources to complete their work effectively.
- Encouraging employees to seek professional help when needed is crucial to managing mental health issues. Employers can provide a list of mental health resources or offer an EAP that provides access to confidential counseling services.
Promoting mental health awareness campaigns can help reduce the stigma associated with mental illness. Employers can organize workshops, training, and awareness campaigns to educate employees about mental health issues.
In Conclusion
Simply saying that you care about your employees’ mental health is not enough; you must ensure that your programs and policies reflect this. For instance, employers should provide accessible mental health resources and allow flexible time off to attend mental health-related events during work hours without the need for clocking out or taking a personal day.
Addressing mental health in the workplace is crucial for promoting employee well-being and productivity. Employers can take steps to create a supportive workplace culture. They can be mindful of the language used when discussing mental health and avoid using diagnoses as personality traits. Such language can contribute to stigma and may prevent individuals from seeking the help they need.
If a company provides an in-house therapy solution, it’s crucial to ensure that the office is not located near the HR leader’s office. While behavioral health is becoming more mainstream, privacy is still vital. By taking these steps, employers can help create a healthy and supportive workplace environment that values employee well-being and benefits both employees and the company as a whole.
by Brian Beyerbach | Aug 10, 2023 | Human Resources, Leadership
Human resources (HR) is a crucial department within any organization, as it plays a critical role in managing the people who make up the workforce. It’s common knowledge that HR is responsible for recruiting, training, retaining, and developing employees. However, HR members are also responsible for ensuring compliance with employment laws and regulations, as well as fostering a positive workplace culture.
In recent years, the role of HR has evolved beyond these traditional responsibilities. HR is now tasked with driving organizational transformation and aligning its people and business strategies. In order for HR to contribute effectively to the growth of the business and be effective in this expanded role, it needs to be more methodical in its approach.
In other words, HR must elevate its position to be on par with leadership.
To comprehend where to properly apply their efforts, HR leaders must establish a good rapport with business clients.
Building a bond of trust will help them understand the underlying causes of their clients’ work business concerns and determine optimal ways for achieving the goals set.
Here are some key methods HR can use to elevate its position.
Strategic Alignment
The first step is to understand the business. HR needs to analyze the company’s goals and objectives and then identify which workforce needs are required in order to achieve them. Leaders should demand to be included in the organization’s management team and strategic planning efforts.
By working closely with senior management, HR can gain a deeper understanding of the organization’s goals and strategies. This understanding can help HR ensure that the organization has the right people, skills, and capabilities to achieve its goals.
Collaborate With Business Leaders
HR leaders must collaborate with key leaders from other departments, such as finance, IT, and marketing. This collaboration ensures that businesses make economic decisions regarding talent management, granting employees the necessary tools and resources to remain productive and helping organizations become more desirable employers. It allows the organization to run smoothly and achieve its objectives.
Change Prediction and Management
Organizational transformation requires significant change, and HR can play a critical role in helping businesses stay on top of the most recent trends and manage them. HR leaders need to remain current on all internal and external changes, as these can tremendously impact the business. To stay competitive in the job market, it’s vital to be aware of what the latest tools and systems are, as well as other changes in technology.
By elevating its position, HR can provide leadership and guidance to employees and help them navigate the changes that come with this and any other organizational transformation.
Performance Management
Data analytics is an integral part of the modern workforce. In particular, HR roles are far more dependent on data-driven insights than ever before.
HR must establish a performance management system aligning with the company’s goals and objectives. This involves setting clear expectations for employees, providing regular feedback on their performance, and using data to identify areas for improvement.
Modern technology has enabled HR managers to take proactive action and utilize data for making intelligent forecasts regarding the possibility of employee turnover, recognizing employees predisposed to climb up the corporate ladder, and fine-tuning the work atmosphere, etc.
Attracting and Managing Talent
Talent acquisition is one of the most critical functions of HR. It involves building a strong employer brand, implementing an effective recruitment process, and hiring for long-term success. HR needs to create an environment that attracts top talent to the organization. This can be achieved by promoting the company’s values, culture, and opportunities for growth.
Retaining top talent is critical to the success of any organization. By elevating its position, HR can develop and implement effective talent management strategies that enable the organization to attract and retain the best people.
HR Needs to Fight for a Seat at the Table
Being an effective team member goes beyond just working quietly in the background; they need to have their voices heard. HR leaders must recognize and articulate the bottom-line impacts of their own initiatives. This will further enable decision-makers to recognize the impact of their efforts on the bottom line.
Therefore, it’s important to measure, track, and communicate the success of your activities to ensure your contribution isn’t overlooked. By doing so, HR can contribute significantly to the growth and success of the organization.
by Brian Beyerbach | Aug 3, 2023 | Compliance, Diversity & Inclusion, Human Resources, Mental Health in the Workplace
There are several reasons companies should pay attention to the potential Equal Employment Opportunity Commission (EEOC) trends for 2023 and prepare accordingly. As the EEOC targets which areas of human rights and protection it wants to focus on for the next few years, companies scramble to anticipate where they might be falling short. One key area of focus is on promoting diversity and inclusivity within the workplace, particularly concerning the LGBTQ+ community and ADA rights.
The EEOC has indicated that it will be closely monitoring the treatment of LGBTQ+ individuals in the workplace, particularly with regard to harassment and discrimination. Companies should take proactive measures to create a safe and inclusive workplace for all employees, regardless of sexual orientation or gender identity.
In addition to promoting diversity, companies should also consider implementing training programs to educate employees on the importance of creating an inclusive workplace. This includes providing resources and support for LGBTQ+ employees, such as employee advocacy groups and non-discrimination policies.
What is driving the EEOC trends, and what can businesses do to prepare?
Litigating Power in 2023
The EEOC is composed of five individuals. In 2023, it is anticipated that the political balance will tip to the left and there will be a democratic majority. With the goal of worker equality through employer accountability and employee recourse, the EEOC democratic majority could flex its power to investigate and prosecute cases of discrimination.
Add to that, the 60-million dollar budget increase, and the commission will have the motive and the means to more aggressively pursue EEOC-Initiated Litigation for the foreseeable future.
Protecting Diversity in Industry
As the primary federal agency responsible for enforcing laws against discrimination in the workplace, the EEOC recently released its Strategic Enforcement Plan (SEP) for 2023 through 2027.
During the fiscal year 2022, its plan of action included the following:
- Addressing selected developing issues
- Preventing systemic harassment
- Eliminating recruiting and hiring barriers
- Protecting vulnerable workers
- Ensuring equal pay protections
- Preserving access to the legal system
To that, the proposed SEP for 2023-2027 includes additional measures to protect people with pregnancy-related medical conditions and LGBTQ+ individuals in the workplace.
Diversity has been missing in many industries, including construction and many high-tech fields, which are rapidly growing sectors that receive a lot of governmental support. This is something that needs to be addressed urgently.
Systemic cases are generally given priority when it comes to pursuing legal action against discrimination. However, if an individual or a small group brings up a policy, practice, or pattern of discrimination that needs to be addressed, then their claim may also be considered.
Recent Trends in Litigation…
Recently, some of the worst cases of discrimination the EEOC has uncovered have been in the construction industry.
Due to the $1.2 trillion federal Infrastructure Investment and Jobs Act, Congress passed in 2021, the EEOC feels obligated to ensure the massive budget isn’t used to haphazardly promote or enable harassment or discrimination in the field. During the last half of 2022, the EEOC filed multiple lawsuits with construction firms that resulted in $2.8 million in settlements.
Further LGBTQ+ Protections
In 2020, the U.S. Supreme Court determined that Title VII of the Civil Rights Act of 1964 could be used as the grounds for sex discrimination cases since gay or transgender employees would fall under its umbrella of protection. As mentioned in their report, this was seen as an incredible victory for the EEOC.
Considered a leader in promoting people’s rights within the LGBTQ+ community, the EEOC is constantly striving to expand its protections under existing statutes. Further expanding laws like Title VII could help maximize their enforcement efforts to ensure that everyone is treated fairly.
Republicans, however, could claim that this effort by the EEOC to push LGBTQ+ rights beyond their current scope is an abuse of its power. They may push back.
Similarly, in June 2021, the EEOC issued guidance to businesses giving LGBTQ+ workers exemptions from workplace policies on dress codes and regarding bathrooms and locker rooms. A later federal ruling sided with critics and stated that using the 2020 ruling as the legal precedent for expanding Title VII was premature. It basically concluded that the ruling is not definitive and there was much to be considered and many areas to be litigated in the future.
To Conclude…
By making the effort to build an atmosphere of inclusivity in the workplace, employers can invite greater diversity to their company. This creates a more positive setting for a productive workforce and encourages a broader range of new talent, which is a win-win for all involved.
By prioritizing diversity and creating an environment where workers feel included and valued, companies will be better equipped to navigate possible legal challenges and avoid litigation related to discrimination.