On July 26th, the 31st anniversary of the Americans with Disabilities Act (ADA), President Joe Biden announced that individuals coping with long-term symptoms from COVID-19 may be eligible for disability protections under the ADA and the Family and Medical Leave Act (FMLA), so what does this mean for employers?
Health experts are still learning about “long-COVID”, officially dubbed Post-Acute Sequelae of Sars-Cov-2 Infection, and the medical community’s understanding of the condition is continuing to evolve as more information comes in. The CDC website lists the following as the most common post-COVID symptoms:
Difficulty breathing or shortness of breath
Tiredness or fatigue
Symptoms that get worse after physical or mental activities
Difficulty thinking or concentrating (sometimes referred to as “brain fog”)
Cough
Chest or stomach pain
Headache
Fast-beating or pounding heart (also known as heart palpitations)
Joint or muscle pain
Pins-and-needles feeling
Diarrhea
Sleep problems
Fever
Dizziness on standing (lightheadedness)
Rash
Mood changes
Change in smell or taste
Changes in period cycles
In his July 26th announcement, Biden said that “many Americans who seemingly recover from the virus still face lingering challenges like breathing problems, brain fog, chronic pain and fatigue. These conditions can sometimes…rise to the level of a disability.”
Employers are advised to treat all requests for accommodation or leave involving long-term COVID-19 symptoms in the same manner they would for any other non-obvious impairment or disability.
If an employee is seeking FMLA leave – either intermittent or as an interval of time, employers should take the following steps to decide how to proceed:
Determine if the employer covered by FMLA
If so, determine if the employee qualifies for FMLA. Consider that the employer must have 50 employees within 75 miles of the employee’s worksite, and the employee must have been employed at least 12 months and must have worked a minimum of 1250 hours in the past 12 months.
Provide the employee with a Notice of Eligibility and Rights & Responsibilities, Form WH-381, even if they are not eligible for FMLA leave.
If the employee is determined to be eligible for FMLA leave, the employer should request healthcare certification showing that the claimed disability qualifies the employee for FMLA protection.
Employees seeking leave due to their own symptoms should be provided with Form WH-380-E, and employees seeking leave to care for a family member should be provided with form WH-380-F.
A Designation Notice, Form WH-382, should be used to either denominate the leave as FMLA leave or to serve as notice to the employee that the leave is unapproved or additional information is required.
If the individual is seeking ADA Accommodations for long-haul COVID-19 symptoms, the employer should consult with the individual to determine what their exact limitations are and what accommodations are being sought. Keep in mind that the ADA requires the employer to make reasonable accommodations for employees, as well asapplicants for employment, who have disabilities.
The ADA does not provide a checklist of conditions that are covered, so instead the employer will need to conduct an individualized assessment to determine if the person has a disability as defined by the ADA. In this context a disability is defined as any impairment that substantially limits major life functions.
Guidance issued by the Department of Justice (DOJ) and Health and Human Services (HHS) on July 26th stated that the phrase “substantially limits” should be interpreted broadly and should not require in-depth analysis.
The employer should then request the individual to have their healthcare provider submit written confirmation of:
The extent that a disability will substantially limit the individual’s major life functions, including the nature of the disability, its severity, and the anticipated duration of the disability.
Their assessment of the individual’s ability to perform the essential functions of the position, with or without reasonable accommodation.
What accommodations the provider believes should be provided that would allow the individual to perform the essential functions of the position safely.
If it becomes clear that the individual does have a disability, the employer should continue to engage with the individual to determine appropriate accommodations. The individual is not granted the ability to dictate which accommodations are provided under the ADA, but it is in the best interest of all parties that they reach an agreement on this subject.
Employers should also keep in mind that reasonable accommodations are not required under the ADA if they would cause an undue hardship on the business, and that long-term effects from COVID-19 don’t always qualify as a disability under the ADA.
It is important employers fully understand the scope of the laws’ coverage in order to be prepared to handle any potential situation. No matter the outcome, employers should always carefully document every step throughout this process and be sure to communicate clearly with the individual seeking accommodations.
Employee benefit brokers know that their market is an intensely competitive one, and a shift to a more employee-centric model for benefits administration technology and services is quickly gaining steam. With it comes added pressure to keep pace or risk losing business, wallet share, and chances to gain new clients.
Across the board, employers and brokerages are reducing the quantity of partners they rely on to deliver the administration, benefits, and technology required to meet the demands of this emerging benefits business model. Comprehensive options reign, but there are also three main qualities that are crucial to remaining competitive:
A wide variety of benefit options that support and care for the employee as a whole – along with knowledgeable support services around those benefits
A modern and intuitive user experience (for both the employee and the benefits administrator)
Effective and efficient employee-specific communication about the benefit options, helping to drive employee understanding, engagement, appreciate, and ROI
The New Benefits Model 101
The primary shift that is taking place in HR systems is one of perspective, away from the needs of medical claims payors and HR processes, and toward the needs of the employee. Additionally, less focus is being placed on the traditional core benefits, like medical, dental, and vision benefits.
Momentum has been building in this direction for a while now, but with COVID-19 the movement has accelerated to the point that it can no longer be ignored. The pandemic has forced employers to focus in on providing benefits that are easier to access and support the employee in a more holistic manner.
Emphasis has generally shifted toward providing benefits that center around the needs of the employee and benefit platforms that improve the lives of the employees more generally. Beyond obvious improvements like making the employee portal more user friendly, the very substance of the benefits that are being provided is changing. Larger organizations are trying out wider portfolios of benefits and tools for their employees, including anything from mental health, physical fitness, or even financial wellbeing. This switch in perspective has initiated a reimagining of the entire structure of benefit options, blurring traditional lines between benefit categories and shaking up old conceptions about employer responsibilities regarding employee benefits.
What’s In Vogue? Voluntary Benefits
The demand for integrated healthcare benefits is growing rapidly, pushing voluntary benefits into the spotlight. Previously seen as the sidekick to primary benefit options, the day has finally arrived for voluntary products. They are now at the cutting edge of an arms race as competition heats up for employers and brokers to transform their offerings to resonate with younger workers and deal with the consequences of the COVID-19 pandemic. According to an analysis of the employee well-being landscape by The Starr Conspiracy, investment in employee well-being shot up more than 500% in the year 2020 from 2019.
The new benefit smorgasbord has expanded to include:
Financial planning and counseling
Student loan repayment
Lifestyle flexibility
Lifestyle benefits
Community focus
Flexibility in workplace and hours
Increased representation in the company’s mission and values
Support for non-traditional and multi-generational families
Decisions, decisions
So, what is a benefits broker supposed to do amid all this calamity and upheaval? How can you know heads or tails when looking at prospective partners? We mentioned before that the market is trending sharply in the direction of utilizing fewer, and more comprehensive, partners to deliver the administration, benefits, and technology for this incoming benefits model. Let’s revisit those three crucial characteristics of a benefits partner:
A wide variety of benefit options that support and care for the employee as a whole – along with knowledgeable support services around those benefits
A modern and intuitive user experience (for both the employee and the benefits administrator)
Effective and efficient employee-specific communication about the benefit options, helping to drive employee understanding, engagement, appreciate, and ROI
You might ask, is there really any employee benefits administration/employee engagement software that is integrated and automated enough to reach this new bar? If so, what key elements would you need to look for to identify it? As it turns out there are many, but what makes or breaks any solution is its ability to communicate effectively with the employee and meet their needs. The right information needs to be provided to the right employees at the right time, otherwise no program or initiative will succeed.
Here are some tips to help you sift through the assortment of options:
Take the time to find a solution vendor that will support employers to really connect with their employees. Keep in mind that approximately half of all employees rate themselves as either unsatisfied or partially satisfied with their current benefit options.
Yet again, communication is key. Try to find a platform vendor that provides integrated engagement software to create personal and impactful communications and an intuitive enrollment experience.
Finding a partner that has a wide variety of benefit options is ideal, but you should also ensure that they have the technology in place to manage all of an employer’s benefit plans, regardless of complexity.
On the benefits administration side, you want to find a partner that has the technology available to allow HR teams to access benefit information in a centralized location and at the touch of a button. Look for something that can manage electronic document storage, life events, eligibility, compliance, and demographic changes all in one place.
The user experience for the employees and administrators goes far beyond having a pleasant interface. Make sure your partner can manage the large and often quite complex configurations and benefit business rules that employers require.
Ensure early on that your technology partner comes with a dedicated and highly experienced customer service team that will work with your clients throughout the setup, implementation, and maintenance of their benefit options.
Lastly, go with a partner that offers an experience that employees can access around the clock without forcing them to download yet another mobile app.
Finding benefits administration technology vendors that cover all three bases can be quite difficult. Many are strong in one or two of those critical areas, but brokers who aim to position themselves as trusted advisors will be required to find partners that cover all three and with expertise. This is a tall order, but if you take your time and follow the advice provided in this article, you will be well on your way.
Question: Will Launchways continue to provide service if the COVID-19 virus becomes widespread?
Answer: Yes, our business continuity plan does provide contingencies for this type of occurrence. We have the systems and processes in place that enable all Launchways team members to service our clients remotely.
Question: Is there insurance coverage for loss of income as a result of the COVID-19 virus?
Answer: In most cases, it’s unlikely your current coverages will address implications of COVID-19. Property policies are activated by physical loss and/or damage to your insured property. Because the virus is not a covered “cause of loss” nor is it considered a direct physical loss, insurance carriers have taken the position that losses due to the COVID-19 outbreak will not be covered.
Question: Do any of my policies offer coverage for the COVID-19 virus?
Answer: Health and life insurance will likely cover Coronavirus-related claims including medical care and if needed, short-term disability benefits. Workers compensation coverage for employees could apply if the illness was contracted as a result of employment. However, the exact cause of infection can be difficult to determine, especially as the virus becomes more widespread.
Question: Is there loss of income coverage I can purchase now for the COVID-19 virus?
Answer: Currently there are no insurance carriers that will provide coverage resulting from the COVID-19 virus outbreak with the exception of the coverages mentioned above.
Question: Will there be coverage in the future for loss due to a virus?
Answer: The insurance marketplace has a very limited offerings for virus-activated coverage. We are currently exploring options with our insurance carrier partners and will keep our clients informed as new insights emerge.
Question: Am I liable if someone gets the COVID-19 virus at my premises?
Answer: Individuals can contract the virus almost anywhere, and it is rare to be able to connect the contraction of a virus with a particular business or location. While we cannot guarantee what actions potential claimants may or may not take, because of the inability to connect the virus to a specific premise, virus-related claims are unlikely to cause liability.
Question: What should I do as an employer?
Answer: If your business/industry allows, you can encourage employees to refrain from non-essential travel or commuting. Written policies should be explicit about when employees with potentially transmissible conditions can consider returning to work. We encourage employers to stay informed on the virus. Access the World Health Organization and Center for Disease Control websites for more information.
Payroll is a key driver of your business, so it’s important to get it right. Organizations with proper payroll processes in place are free to thrive, while companies with flawed payroll systems can be susceptible to significant legal risks, fines, and employee relations issues.
However, payroll and regulations are extremely complex. With payroll rules and regulations constantly changing, it’s almost impossible for the average business to keep up.
There are upwards of 10,000 federal, state, and local tax regulations that affect the way employers process payroll. And failing to follow these properly can result in large fines from the IRS. According to the IRS, more than 1.8 million tax returns were audited in 2016 for businesses with income between $200,000 and $1 million. In 2016, 978,564 businesses of all sizes were assessed civil penalties.
Growing businesses want to avoid these potential risks but find it nearly impossible to keep up with the wide range of laws pertaining to employment. This is why more and more businesses are turning to outsourced payroll companies to bridge this gap in expertise. Recent research by Robert Half indicates that 39% of U.S. companies outsource payroll services.
Outsourcing Payroll: Three Reasons Why Businesses Should
Save time (time that can then be used to focus on growing your business)
Gain access to the technology and expertise to perform payroll (management services) well
Reduce costs and risks associated with failing to follow tax and employment regulations
Ultimately, as your business evolves and grows, your team will become larger and your payroll (management processes) will become increasingly complex. As an employer, you’re expected to understand all hour, wage, and employment laws. Mistakes in these key areas can lead to audits and penalties, something a growing business simply doesn’t need.
For many growing businesses, outsourcing payroll prevents a good opportunity to streamline operations and reduce risk. However, each company must decide if (the benefits of outsourcing payroll) is right for them. We put together this ultimate guide to help you explore the pros and cons of outsourcing payroll, so you can make an informed decision about how to handle your business’s payroll.
This Outsourcing Payroll Guide Will Teach You:
Advantages of outsourcing payroll
Disadvantages of outsourcing payroll
What to look for in payroll outsourcing companies
Why leverage a payroll provider’s HRIS
Questions to ask a potential payroll outsourcing provider
Benefits of Outsourcing Payroll
Time Savings
Payroll is a time-consuming process. From keeping track of benefits deductions, wage garnishments, new hires, terminations, PTO, and state and federal regulations can be challenging. Outsourcing payroll allows you and your team to focus on core business functions that drive revenue and help you grow.
Reduced Risk
Penalties for errors, omissions, or late payroll tax filings can be very costly. The IRS estimates that 40% of small businesses pay annual penalties for incorrect filings. Beyond tax risks, your organization must also comply with all state and federal wage and employment laws. Failure to comply with these laws can lead to audits and fines. However, working with a payroll outsourcing provider can ensure that your business has all compliance bases covered. This will give you the peace of mind knowing your business won’t be susceptible to these risks and fines.
Access to Experts
As your business continues to grow, you’ll have to comply with more and more state and federal regulations. Have a team of HR and compliance experts by your side to help you navigate these complex changes can be invaluable for your organization.
Data Security
Payroll outsourcing services use secure online portals to store and protect your employees’ sensitive information.
Reduced Payroll Costs
For many small-to-mid-sized businesses, completing payroll in-house can be a money burner. Of course, actual cost is company-specific, but you can calculate how much time your team currently spends calculating payroll, preparing w-2’s, onboarding new-hires, producing reports for accounting, etc. Paying a salaried team member (or doing it yourself) can end up costing your organization a lot more than working with a payroll outsourcing company. For most growing businesses, working with a payroll outsourcing provider is a cost-effective option.
Disadvantages of Outsourcing Payroll
While outsourcing payroll to payroll experts affords your organization many benefits, there can be some negative effects of outsourcing.
Difficulty Obtaining Employee Data
For your payroll provider to process employees, they’ll need W-4s and direct deposit information. Tracking down and collecting physical documentation of these assets can be challenging. However, some payroll providers operate entirely digitally. If your payroll outsourcing provider offers a system where employees can upload their own information, this can eliminate these challenges.
Delayed Corrections
When working with an outsourced payroll provider it can sometimes take longer to fix payroll errors. However, if your provider leverages proactive communication which includes a review and editing processes then this can help significantly reduce the number of potential errors.
Outsourcing Payroll Cost
There will be an added cost to your business for outsourcing payroll. To determine if outsourced payroll is a cost-effective solution for your business, you should aim to quantify the current costs associated with your payroll practices. In most cases, outsourced payroll ultimately ends up being cheaper than an in-house team member handling it.
What to Look For In a Payroll Outsourcing Company:
Experience Serving Businesses Like Yours
Research if the payroll provider has worked with organizations of an industry or size like yours. Explore their website for customer stories and ask for case studies about the value they’ve provided clients. Does the payroll provider have a strong track record of serving businesses your size? Is the provider experienced in your industry?
Additional Resources & Complimentary Adds-on
Some payroll providers go above and beyond to extend additional value to their clients. These add-ons might include guidance on HR best-practices, access to employee handbook and policy templates, or support for safety compliance.
Other Service Offerings
When looking at a payroll outsourcing provider, consider the other products and services they offer and how those align with your future plans. As you grow, you’ll require additional support in scaling your human resource practices. Does your payroll provider offer additional services such as human resources consulting, technology, employee benefits, or worker’s compensation coverage?
Regulatory Compliance Capabilities
Is the potential payroll outsourcing provider up-to-date on changing laws, compliance regulations, health care considerations, and tax rules? Are they a thought-leader in the space? You should aim to establish a clear track record of your payroll provider helping their customers meet federal and state compliance regulations.
Technology
You should evaluate and determine the quality of payroll technology your potential provider leverages. Consider if they use modern technology and have the technology infrastructure to support your organization as you grow.
Accountant Interfaces & Integrations
Consider how easily your team can retrieve necessary payroll records for tax and reconciliation purposes.
Service Level
You should aim to understand the level of service your payroll outsourcing provider provides. Will you have a dedicated account manager you can call anytime with questions? Or will you be left with an automated inbox or queue without answers? Payroll is a complex, essential component of your business. Having a high level of service is important.
Stability
When it comes to finding a (third party) payroll provider, stability is essential. You should determine how many years a potential provider has been in business. Also, consider how many clients they have and the caliber of their client portfolio.
Scalability
Ultimately, your goal is to grow your company. Therefore, you shouldn’t pick a payroll outsourcing provider whose infrastructure cannot support your growth. Instead, you should select a provider that offers robust solutions that can integrate time and attendance, retirement plans, and benefits administration as you grow.
Scope of Services
Your payroll (outsourcing) provider should provide the highest level of service, freeing up your time to focus on other more important tasks. Some payroll (outsourcing companies) expect the client to onboard new-hires, track time and attendance, and handle other administrative tasks. In an ideal scenario, your payroll outsourcing provider should be taking on your entire payroll process, end-to-end.
Implementation & Onboarding
Uncover the process the potential payroll provider will use to get your organization onto their system. They should provide a quick, seamless transition to avoid interruptions to your employees.
Partners & Integration
You should ensure that your payroll provider’s systems will seamlessly integrate into your team’s existing workflows.
The Importance of HRIS
An additional value-add of working with an outsourced payroll provider is gaining access to their Human Resource Information System (HRIS). An HRIS system allows employers to easily provide their employees access to online statements and direct deposit. In today’s market, many job seekers expect an employer to provide these. An HRIS system can provide your employees several benefits including:
Online benefits enrollment
Review benefits information
Review checks
Update information
Access corporate documents
Beyond the benefits it affords your employees, HRIS helps create a centralized hub for all your team’s sensitive information. This means better organization and better security for your business. Some additional benefits employers can get from a HIRS include:
View invoices and payroll reports
View and update employee information
Digitally onboard new hires
Collect time-off information
Offer online benefits enrollment
Total compensation reports
Upload an employee handbook and other files
While you may not have the resources or manpower to administrate your own HRIS, leveraging a payroll partner’s system is a great option.
What to Look For in A Payroll Outsourcing Company
Questions to ask a payroll (outsourcing) provider you’re considering:
How long have you been in business?
How do I know you are paying all payroll taxes?
How much of the responsibility of payroll processing do you handle?
How secure is the information?
Can I call and talk to a real person without going into a queue for several minutes?
If there are corrections on the payroll, how long will it take to make the correction?
What technology platform do you use and how reliable is it?
What are your fees for processing payroll?
Summary
Payroll is a complex, constantly changing function that many small teams struggle to manage. If your organization is spending too many resources managing your payroll in-house, outsourcing payroll can be a great option. In today’s guide, we covered the pros and cons of outsourcing payroll, how to leverage HRIS technology, and how to vet a potential payroll partner. Some key takeaways are:
Outsourcing payroll affords many benefits including saved time, reduced risk, and cost-savings
Working with a payroll provider can help you leverage modern HRIS software
When considering a payroll outsourcing provider, there are several factors to look out for including service level, technology, proven track record, and more
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The way that a CEO spends her time makes a huge difference in what gets done in a company. Few CEO’s get the chance to see into how other CEO’s are spending their time, they don’t have the chance to compare their decisions to those of others. So when I saw that Michael Porter published an extensive study called The Leader’s Calendar in the Harvard Business Review, I dug in.
1. They don’t get much “me” time.
The average CEO in Porter’s study slept just under 7 hours a night and worked out about 45 minutes a day on average. The most disciplined of them had about 3 hours a day of family time, but they were diligent about protecting it!
Running a business whether you are a small business owner, or a corporate CEO is all consuming. For your well-being, health and longevity you need to be diligent about treating your body well, getting good sleep and spending time on activities that nourish you.
2. They don’t hide in their office, work from home, or depend on email to get things done.
The best CEOs spend the majority of their time (61% in Porter’s study) face-to-face with their team, their clients and their partners. In order to do that they need to be very disciplined about the time they spend on email! Leaders naturally get copied on a lot of stuff that they don’t need to answer or take action on. Separating out what needs their attention (a small fraction) from that which can be ignored, archived or deleted is a major skill that CEOs need to develop.
Porter reminds us that nothing substitutes for face-to-face interaction.
3. They don’t let their agenda get set by others.
One of my best bosses used to tell me, “If you go to a meeting with Bill Gates, who’s meeting is it? It doesn’t matter who set the meeting, if Gates is in it, it’s his meeting!” He told me this story to remind me that, as a leader, we set the agenda. In Porter’s study, just shy of 50% of the CEOs time was devoted to driving forward the goals or objectives they had set for the quarter or year. They know what they want to accomplish and make sure that everyone else does too.
Porter calls out as a best practice CEOs who look back every quarter at where their time went the previous quarter so that they can eliminate those things that took them away from advancing their agenda.
4. They don’t ignore the fires.
About a third of the CEOs time was spent “dealing with unfolding developments”. There’s always something that comes up, employees that quit, customers who are disgruntled, competitors who introduce something new… Those things need to be dealt with in a timely way — but without getting distracted from their goals and agenda.
5. They don’t get distracted by the routine or ceremonial duties of the office.
A little over a half a day a week got eaten up by routine duties, or events where the CEOs presence added gravitas but didn’t advance any agenda. The best CEOs worked to minimize the time spent on these activities, substituting someone else, or eliminating the need for it altogether.
6. They don’t forget their team.
One of the most important levers for these top CEOs were their direct reports and their direct reports. The best CEOs know that nurturing and developing their team is a prime responsibility for them and allocate their time accordingly (about one-third of their time was devoted here). By staying in contact with this group they were able to develop an “early warning system” to see problems before they grew too large. It also helped to burst the bubble that sometimes surrounds the leader where all the information they get is highly filtered. Finally, it keeps them tuned in to the talent pipeline so that they can nurture the next generation of leaders.
7. They don’t skip meetings.
Meetings are highly leveraged activities for CEOs. They can see a lot of people face-to-face, they can advance their agenda, they can hear information straight from the front lines. When you are the CEO, going to meetings is your job.
I don’t think there are any of us who love meetings, but getting good at running an effective, time-efficient meeting is a core skill for a CEO.
8. They don’t skimp on alone time.
Once a CEO has been with their team and has soaked up information, they need time to think. Most CEOs do that best alone. The best CEOs spent about 25% of their time alone, yet it was often in small segments of less than an hour. Blocking off time for thinking was critical to the success of the highest performing CEOs.
Key takeaways There is one resource that we all have in equal measure, time. If you are going to be a great leader you need to be proactive in determining how best to use that time. Working through your team by seeing them in meetings and one-to-one, gathering your own information and spending some quiet time to think it all through will make you more able to advance your agenda and succeed as a leader. If you don’t you may experience business owner burnout.
About the Author Brad Farris is Principal Advisor at Anchor Advisors, Ltd. Anchor Advisors helps small business owners to make the transition from the center of all things in their business to a leader with experts who report to them. To find out more visit anchoradvisors.com
Whether you know exactly what kind of culture you want your
company to embody or you haven’t given it much thought before, now is the time
to put your company culture under the microscope. Every company can benefit
from being more intentional about its culture and from examining new ways to
integrate its culture into every part of the organization.
In today’s post we’ll explore five key components of an
intentional, positive company culture:
Creating an intentional culture: define & redefine your company culture
Fostering joint ownership: get company mission/vision buy-in from employees
Leveraging people power: put the right people in the right seats
Creating meaningful work for employees: put culture first to drive performance and retention
Aligning employee benefits with your culture: develop a strategic approach to your employee benefits program
Creating an intentional culture: define & redefine your company culture
Every company has a culture, whether they know it or not.
Culture is defined by how a company operates, how it treats its employees and
how its employees treat the company in return. When culture aligns with the
company’s mission and vision, the result is increased employee performance and
retention, innovative solutions, and higher profit margins. More work gets
done, and everyone from the receptionist through the CEO enjoys their work
more.
But company culture needs to be tended to and directed
continuously. It is not enough to hold meetings to decide what your culture
will be, or even to implement policies to enforce the culture, and then forget
culture altogether. Remember, company culture is a living, evolving thing which
will develop over time. If you do not direct its course then it may well
stray from your original vision, affecting every part of your company. If you
neglect company culture, it can become toxic, encouraging harassment and
infighting, stifling collaboration and causing high turnover rates.
That’s why it’s so important to intentionally shape your
company culture and ingrain it into every process and policy throughout the
company. Here are some actionable ways you can do this:
First you need to determine what kind of culture you want your company to embody, based largely on your mission/vision.
Next you should examine each process, policy, and promotion and make sure they align with that culture.
Finally, you should regularly review whether your current goals, methods, and employees reflect your culture and make sure that you are on the right track.
Fostering joint ownership:
get company mission/vision buy-in from employees
The hard truth is that your company’s mission and vision are
meaningless without employee buy-in. Luckily, there is an easy way to get
employee buy-in: put your mission and vision back into the heart of everything
that you do. And, more importantly, give employees ownership over your mission
and vision. Seek feedback at every level and empower team members to define how
their work contributes to the mission/vision. Provide opportunities for
employees to take on new projects that they see as working towards the mission
and vision and put the mission/vision at the heart of review and meeting
processes.
Another important component of employee buy-in is
transparency. Keep your employees up to date on company goals, how those goals
contribute to the mission, and how their work ties into those goals. That way
new product launches, sales targets, and marketing campaigns will start being
part of a bigger picture rather than the means to raise profits. And if you
hold everyone in the organization, including managers and c-suite executives,
accountable to the mission/vision then you will foster an even deeper culture
of shared values and efforts towards a common goal.
Leveraging people power:
put the right people in the right seats
Culture is not just the result of policies and practices: it
is also defined by people. Who you hire and who you put in positions of power
says a lot about what you stand for as a company. Also, your managers will be
the standard bearers for your culture and how it defines their team’s
operations.
Make sure that your advancement policies match the culture
that you are trying to promote. If you encourage your employees to take
ownership over the company mission/vision and culture, but do not provide
opportunities for upward mobility, then your message will come across as hollow
and disingenuous. But if you reward hard work and cultural buy-in with genuine
advancement opportunities, then you will be a lot closer to having an authentic
and organic company culture.
It is also important to be strategic in who you hire or promote.
How you treat all your employees is crucial to your culture. Keep in mind that
when you bring someone on or promote them, you send a clear message to the rest
of the organization that they represent what you value.
This means that you should make sure that your practices
make everyone in your company feel valued and that you should hire and promote
people who reflect the culture that you are trying to create. It is also
important to promote people who buy into the company culture because your
managers are your front line in creating and maintaining an intentional culture
that permeates everything that your company does.
Creating meaningful work
for employees: put culture first to drive performance and retention
Providing meaningful work is perhaps the greatest challenge
facing modern employers. Millennial workers in particular prioritize meaningful
work over pay. They aren’t staying at their jobs for nearly as long as
employees used to. Instead they are always looking for the next, most exciting
opportunity. If all your company is offering them is a paycheck, your employees
won’t be motivated to excel and you can’t expect to keep talent around for
long.
The good news is that putting your culture, mission, and
vision at the heart your company will do wonders for your employee performance
and retention because it will make the work meaningful. Research by Deloitte
found that 73% of employees that believe that they work at a purpose driven
organization are engaged with their work, versus 23% who do not. Employees can
see how their work contributes to the goals of the company and can take
ownership over the success of a shared venture, with a common culture. Managers
will not have to assert that their team’s work is important, it will be clear
to everyone.
Aligning employee benefits with your culture: develop a strategic approach to your employee benefits program
How you treat your employees says a lot about your company
and is a major component of company culture. One of the most direct ways that
you can align your employee policies with the culture that you want to create
is through your benefits package.
Benefits are an opportunity to show your employees that they
are more than a cog in a corporate machine and will help them buy into your
culture, mission, and vision. Vacation time, in-office perks, parental leave,
and insurance are all ways to give back to employees and make them feel like a
valued part of a community with a shared culture and mutual goals. But, more of
everything is not necessarily the right answer. Instead, the benefits package
should be strategically tailored to your particular company culture. Think
about what values are at the heart of your intentional culture and choose the
benefits that match it.
Take, for example, stereotypical silicon valley tech
companies have a culture in which work is life, but is also supposed to be fun.
They provide all of the amenities employees might need, from meals and showers
to pool tables and beer on tap. By and large they successfully foster a culture
in which their employees lives truly do revolve around the office; never just working
but never entirely off the clock, either. That approach works because it is in
line with the culture that the companies espouse through every level of their
organizations, but it does not work with every culture. For example, if your
company is all about hard work but respect for employee time, then maybe skip
the ping pong table and opt for a flexible vacation policy.
Key Takeaways:
In today’s post we examined many components of creating a
healthy company culture. Some key takeaways include:
Bring intentionality to your company culture. Clearly define the culture you want to create and examine how that culture can be integrated into every part of the company.
Make sure to get employee buy-in to the company mission/vision by giving them joint ownership of them. When employees define the reality and success of the mission and vision, they become invested in the company’s well-being and the continuation of its culture.
Who you hire and promote defines what you value and who will be in charge of maintaining your culture.
A vibrant, transparent culture creates meaningful work for all of your employees, driving performance and retention.
Shape your benefits package to reflect your company culture. Choose the benefits that reflect your values and demonstrate to employees how much you value them.
By now it should be clear why developing an intentional culture is so important and what areas of your company you need to focus on to accomplish it. But creating a great culture is a massive task, where do you even get started? Well, luckily a fantastic group of panelists will help you chart your course to a positive company culture in our upcoming webinar.
