HR Professionals Magazine September 2020 Digital Issue

Volume 10 : Issue 9

TM

www.HRProfessionalsMagazine.com

#TogetherForwardAtWork Racial Equality

How

Intrapreneurial Leaders Drive

Innovation

Anniversary Issue Twitter Clatter

Paula Kitchens,

SHRM-CP, PHR

Emerging Trends in the

Director of SHRMGA

Accommodations

Sector

Driving Optimal Results with Incentive Compensation Plans

Keeping up with changing laws is a full-time job, and you’ve already got one.

EMPLOYERS AND LAWYERS, WORKING TOGETHER Ogletree Deakins is one of the largest labor and employment law firms representing management in all types of employment-related legal matters. The firm has more than 900 lawyers located in 53 offices across the United States and in Europe, Canada, and Mexico.

www.ogletree.com BIRMINGHAM OFFICE

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420 20th Street North Suite 1900 Birmingham, AL 35203 205.328.1900

International Place, Tower II 6410 Poplar Avenue Suite 300 Memphis, TN 38119 901.767.6160

2020

Join our monthly webinars to earn SHRM and HRCI recertification credits.

Bringing Human Resources & Management Expertise to You

70%

of HR Pros say discussions about race are appropriate at work. www.HRProfessionalsMagazine.com Editor Cynthia Y. Thompson, MBA, SHRM-SCP, SPHR Publisher

The Thompson HR Firm, LLC Art Direction

Park Avenue Design Contributing Writers Jill Berger Denise Cabrera William Carmichael Tracy Duberman Susan Hanold Dax Hill Trish Holliday Gary Huckaby Howard B. Jackson Blair and Bruce Johanson Lucinda Kenning Kim LaFevor Taylor Flake-Lawson Geoffrey A. Lindley Johnny C. Taylor, Jr. Sonya Weathers Richard Works Joshua Zugish

Contact HR Professionals Magazine: To submit a letter to the editor, suggest an idea for an article, notify us of a special event, promotion, announcement, new product or service, or obtain information on becoming a contributor, visit our website at www.hrprofessionalsmagazine.com. We do not accept unsolicited manuscripts or articles. All manuscripts and photos must be submitted by email to Cynthia@hrprosmagazine.com. Editorial content does not necessarily reflect the opinions of the publisher, nor can the publisher be held responsible for errors.

HR Professionals Magazine is published every month, 12 times a year by the Thompson HR Firm, LLC. Reproduction of any photographs, articles, artwork or copy prepared by the magazine or the contributors is strictly prohibited without prior written permission of the Publisher. All information is deemed to be reliable, but not guaranteed to be accurate, and subject to change without notice. HR Professionals Magazine, its contributors or advertisers within are not responsible for misinformation, misprints, omissions or typographical errors. ©2020 The Thompson HR Firm, LLC | This publication is pledged to the spirit and letter of Equal Opportunity Law. The following is general educational information only. It is not legal advice. You need to consult with legal counsel regarding all employment law matters. This information is subject to change without notice.

Features

Talent Management

HR Strategies for Handling COVID-19 in the Workplace

Top Educational Programs for HR Professionals

4 note from the editor 5 Paula Kitchens, SHRM-CP, PHR, Director of SHRMGA 6 Brad Patterson, SHRM-SCP, SPHR, 2020 SHRMGA Conference Chair 8 Breaking Taboos and Putting Race on the Table #TogetherForwardAtWork 19 Congratulations to Dr Kathy Tuberville!

44 Book Look: The Art of Being Indispensable at Work by Bruce Tulgan

13 COVID-19 Employee Handbooks 30 Supporting & Sustaining Teams through Prolonged Disruption 33 What Makes Software Suited for Remote Work?

47 Need an App-Based Solution to Assist with Your Return to Work Program?

Employee Benefits and Compensation

10 Compensation and Flexibility in the New World of Work 14 Student Loan Benefits – An Opportunity for Employers 17 Show Employees You Care with a Gift of a Special Meal 20 Employers Rate Top Healthcare Plans in Leapfrog Survey 22 Driving Optimal Results Through Individual/Team Performance-Based Incentive Compensation Plans 24 Specialty Pharmacy Trends for 2020 and Beyond

Employment Law

12 DOL Update on Return to Work Guidance 18 Twitter Clatter: When Employee Social Media Activity Makes Your Head Hurt 38 Federal Court Vacates Portions of the DOL’s Final Rule Under the Families First Coronavirus Response Act 39 Littler Virtual Event September 30 – COVID-19’s Litigation Aftermath

16 The No-Holds-Barred About Hiring Gen Z 28 Business Not as Usual 32 No. 1 Impact on Your Culture?

It’s not the Pandemic.

34 Putting “Leadership” into the Management Equation 36 Emerging Trends in the Accommodation Sector

9 New People Manager Qualification – SHRM’s PMQ Training 26 SHRM Education – Maximize Your Potential. Learn Your Way. 27 Legal Training for HR Professionals at Emory | Law 40 Affordable Online SHRM Certification Exam Prep Class Begins October 19 41 Save $75 on Early-Bird SHRM Certification Exam Fee! 48 WGU Tennessee HR Program Fully Aligned with SHRM Curriculum

Industry News

7 2020 SHRMGA State Conference Now Virtual September 30-October 2 42 Highlights of SHRM-Memphis 2020 Legal Day August 11 43 Tennessee SHRM Annual Conference in Memphis November 2-4 45 WTSHRM 11th Annual HR & Employment Law Conference in Jackson October 23 46 2020 NCSHRM Virtual State Conference & Expo September 16-18 October Issue features Profiles of Chambers USA Labor and Employment Law Attorneys Plus Updates on Employment Law and Employee Benefits And the Latest on HR Management and the COVID-19 Pandemic Deadline to reserve space September 15 www.HRProfessionalsMagazine.com

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a note from the editor We are celebrating nine fantastic

Together Forward @Work

healthcare plans. There is also a

years at HR Professionals

(#TogetherForwardAtWork) has

fantastic article on 2020 specialty

Magazine this month! Hat’s off

the research, tools, and expert

pharmacy trends by Denise

to our sponsors, contributors -

guidance you need! Be sure

Cabrera with McGriff Insurance

and you for making these past

to read “Breaking Taboos and

nine years so successful! We

Putting Race on the Table”

on Page 24.

are honored to be the official

on Page 8.

media sponsor for the SHRM State Conferences in Alabama,

We are excited to have Paula

Arkansas, Georgia, Kentucky,

Kitchens, SHRM-CP, PHR, Director

Mississippi, North Carolina

of SHRMGA, on our September

and Tennessee. It is a pleasure

cover. You will enjoy reading

working with the SHRM State

about her exciting career in HR

Councils and the SHRM volun-

in her profile on Page 5. We have

teers in our distribution footprint. I

also included the career profile

also want to say a huge thank you

of Brad Patterson, 2020 Chair of

to the extraordinary SHRM Public

the SHRMGA Conference, that

Affairs team who graciously works

will be September 30 – October

with us to bring you the latest in

2. The conference was previously

all things work.

scheduled to be at the Evergreen Resort at Stone Mountain State

We are so honored to have a very

Park, but will now be virtual.

timely article by Johnny C. Taylor,

Did you know that HR professionals who pass the SHRM certification exam report having salaries 7% - 9% higher than peers who do not? In addition, of SHRMcertified professionals who were promoted, 63% report that their credential was a key factor. Are you SHRM certified? If not, I invite you to join our next Online SHRM Certification Exam Prep Class that begins October 19. The last day to register is October 12. Visit our website, www.hrprofessionalsmagazine.com to register.

Just a reminder about our

Jr., SHRM-SCP, and President and

We know you are extremely busy

CEO of the Society for Human

this time of year planning for

Resource Management, in our

open enrollment and compen-

September issue. This article is a

sation. We’ve got you covered

“must-read” about racial injustice

with many articles on the latest in

in our society. Taylor discusses

employee benefits and compen-

If you are not currently receiving

new SHRM research about the

sation planning. Be sure to catch

our monthly email invitation,

striking divisions we’re experi-

the article on Page 20 about the

please visit our website to

encing in our workplaces around

Leapfrog Group’s recent survey

subscribe to our digital issue and

race. SHRM’s new platform,

on employers’ ratings on top

receive our monthly emails.

complimentary monthly webinar sponsored by Data Facts. Mark your calendar, and plan to join us on Thursday, September 24.

cynthia@hrprosmagazine.com @cythomps

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on the cover

Paula

KITCHENS

Photo by Fran Speering

Paula holds a Bachelor of Business Administration from Augusta University, where she majored in marketing. She is a

Paula Kitchens, SHRM-CP, PHR Director of Georgia SHRM State Council Paula began her volunteer role with the Central Savannah River Area (CSRA) SHRM Chapter in 2003 as the Hospitality Chair. She served on the CSRA SHRM Board of Directors from 2003 until her Presidency in 2010. This marked the first year of a combined chapter after the boards of two local Augusta area chapters came together to form a stronger better chapter. As a direct result of this merger and the board’s leadership, CSRA SHRM was awarded the Best Chapter in Georgia award by the state.

SHRM Certified Professional and holds the Human Resource Certification Institute’s Professional in Human

Paula began serving on the Georgia SHRM State Council in 2011 as a District Director for the eastern chapters in Georgia. She also served as the Membership Director from 2016 – 2018 and is currently completing a two year term as the State Director. Paula credits her professional success to SHRM membership and her volunteer roles. The network of professionals and the online resources have both helped her to become better.

Resources certification.

Currently, Paula is the Human Resources Manager at McCorkle Nurseries in Dearing, Georgia where she leads the company’s HR, Training, and Safety functions. Prior to her current role, she served as Vice President of Augusta Metro Federal Credit Union leading the company’s HR, Marketing, Training, and Compliance departments. Her early career included public relations and communications roles with International Paper in Savannah, Georgia. Human resources is the perfect fit for Paula since she thrives on helping employees and the company leadership succeed together.

In addition to her SHRM volunteer roles, Paula has served on the Savannah Chamber of Commerce’s membership committee, and volunteered with the March of Dimes and United Way of the Coastal Empire. She also served on the Georgia Credit Union Affiliated Compliance Committee and the Augusta Area Credit Union Chapter. 

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Brad Patterson, SHRM-SCP, SPHR 2020 SHRMGA Conference Chair Brad’s introduction to SHRM began in 2013 when he applied for membership to CSRA SHRM. He wanted to meet other HR professionals and learn about certification. In 2014, he earned his SPHR through a course offered by CSRA SHRM, which ultimately led to him being asked to serve on the Board of Directors as the Programs Chair. During his tenure on the board he served in roles of increasing responsibility including Vice President of Membership, President-Elect and President. In 2018, the chapter hosted the SHRM Certification course under his leadership and coordination, utilizing subject-matter experts to facilitate the sessions. In his role as President, he led the CSRA SHRM chapter in launching a new website, pivoting to virtual meetings due to COVID-19, addressing social unrest with special programs and an increase in membership growth. He has served as SHRMGA Conference Chair since 2018. He is also a SHRMGA District Director.

One of his favorite State Council projects is the annual conference. As annual conference director, he coordinates with multiple committee chairs on calls and meetings, manages the conference budget and goes behind the scenes to ensure a smooth operation. He looks forward to the Volunteer Leader Summit in Washington, D.C. every year. He uses this opportunity to learn best practices for chapter operations and as a networking opportunity to connect with other leaders and to expand his HR presence. He is passionate about assisting others in obtaining certification and frequently presents on the topic to chapters.

Currently, Brad is a Senior Human Resources Manager with Comcast Cable in Augusta, GA. He began his HR career with the State of Georgia and held multiple roles prior to his retirement from state service in 2013. He held positions such as Benefits Coordinator, HR Supervisor, HR Manager, HR Analyst 3, HR Programs Coordinator, Deputy HR Director and HR Projects Director.

He holds a Bachelor of Arts in Communications from Augusta University and a Master of Public Administration from Columbus State University.

Brad invites you to connect with him on LinkedIn: https://www.linkedin.com/in/brad-patterson-mpa-sphr-shrm-scp-ccmp-94b57377/

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EVENT AGENDA SEPTEMBER 30 OCTOBER 2, 2020

·-.

App sponsored

by Workplace Health Magazine

,. It Announcements

a , Ask Organizers Anything

12messages

4:45 p.m. - 5:45 p.m.

5:45 p.m. - 6:15 p.m.

Opening Keynote Address SHRM Awards Ceremony

Dinner on your own

OCTOBER1,2020 Eary Riser Sessions/ Continental Breakfast

OCTOBER 2,2020

Up to 14 SHRM and HRCI PDC's offered

0 Search topic titles or descriptions

Registration Pre-Conference Sessions (3) Exhibit Hall Open Welcome Message and State Conference Kick-Off

8:30 a.m. - 9:45 a.m.

Mega Session 7:15 a.m. - 6:00 p.m.

Exhibit Hall Open 11:00 a.m. - 12:00 p.m. Breakout Sessions (5) 12:15 p.m. - 1:45 p.m.

Lunch and Keynote 2:00 p.m. - 3:00 p.m.

Breakout Sessions (5) 4:00 p.m. - 5:00 p.m.

Day 2 Closing Keynote 6:00 p.m. to 8:00 p.m. Tailgate Party at the Pavilion

Now a virtual only event!

Wltowt

9:00 a.m. - 12:00 p.m.

12:00 p.m. - 3:00 p.m.

3:00 p.m. - 4:15 p.m.

4:30 p.m. - 4:45 p.m.

7:15 a.m. - 8:15 a.m.

THE EVERGREEN RESORT AT STONE MOUNTAIN STATE PARK

Conference app provided by

SEPTEMBER 30, 2020

fl

7:00 a.m. - 8:00 a.m.

8:00 a.m. - 12:00 p.m.

8:30 a.m. - 9:30 p.m.

9:45 a.m.- 10:45 a.m.

11:00 a.m. - 12:00 p.m.

12:15 p.m. - 1:45 p.m.

Buffet Breakfast Exhibit Hall Open

Day 3 Opening Keynote Breakout Sessions (5) Breakout Sessions (5)

Lunch, Closing Keynote and Closing Cermonies

B _,. Meet-ups 12Meet-ups

• Airport Ride Sharing

TO REGISTER, VISIT WWW.SHRMGA.SHRM.ORG/WELCOME-GEORGIA-STATE-COUNCIL-WEBSITE

Breaking Taboos and Putting Race on the Table

#TogetherForwardAtWork

By JOHNNY C. TAYLOR, JR.

There is no denying 2020 has delivered an abundance of challenges for all of us, both personally and professionally.

Just when it looked like we could start planning for life after COVID-19, and begin to navigate a shaky economy, the explosive pain of racial injustice contorted our society.

Unlike the novel coronavirus, this challenge was not new. These issues have long existed, hidden under the table, in darkness and denial.

30 percent of White workers believe their workplace actually discourages the discussion of racial justice issues at work, and nearly half of Black workers (45 percent) say the same.

HR has a workplace culture taboo to tackle. We can’t fix what we can’t talk about. And if we can’t talk about it, we will find ourselves back here again and again, putting out flames when the next racial injustice detonates in the public consciousness.

As HR professionals, we have a huge opportunity to lead social change for the workplace and beyond. We must ally with business leaders to rethink our outdated approaches to diversity, equity and inclusion in the workplace and remove the barriers to conversation.

This time, we can’t deny it. Racism persists in our society and is felt in our workplaces. Black workers do not believe they are treated the same as white workers, and those perceptions are being documented by SHRM. Our new research report, released today, points to the striking divisions we’re experiencing in our workplaces around race. The report, The Journey to Equity and Inclusion, unveils critical disconnects between Black and White American workers.

Respect is an important benchmark for inclusion at work, and we found feelings of worth are correlated with skin color. All in all, only 18 percent of White workers feel they are not respected and valued at work. However, one-third of Black workers feel that way.

HR professionals, who are generally more attuned to bias at work than others, were even more divided on the subject. Almost half of Black HR professionals feel discrimination based on race and ethnicity exists in their workplace, compared to just 13 percent of White HR professionals.

Issues around race and bias are not being discussed at work, despite all the efforts SHRM and our members have made to encourage honest dialogue about toxic workplace cultures.

Employees are nervous and reticent.

Even though a whopping 70 percent of HR professionals say discussions about race are appropriate at work, that message isn’t getting through: 8

www.HRProfessionalsMagazine.com

Discomfort is the biggest barrier, but it is not insurmountable. It can be toppled with information, expertise and courage. For information, we can measure these perceptions and drive our decisions with evidence-based research. For expertise, we can educate ourselves better about what individuals really experience at work. And with courage, we can push aside our fears to put race and bias on the table for everyone to discuss.

It’s time for some serious work and sincere commitment. And it starts with you. How you go forward in this moment is your decision as an HR professional and a human being.

And you are never alone. You have an entire profession and SHRM behind you. Our new platform, Together Forward @Work, has the research, tools and expert guidance you need—and it will be further enhanced and expanded by the findings of our Blue Ribbon Commission who start their work this fall—so that you can build a workplace culture that extends respect, honesty and opportunities to everyone.

I urge you to be a part of this transformational call to action. I truly believe that this profession can change lives, starting at work. If not us, who? If not now, when? We can make better workplaces lead to a better world.

Johnny C. Taylor, Jr., SHRM-SCP

President and CEO Society for Human Resource Management SHRM.org

Get your People Managers ready now to lead high-performing teams with this new virtual training.

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Compensation and Flexibility in the New World of Work In our ever-changing world, flexibility is of the utmost importance.

As people learn to navigate the new world of work, this flexibility applies to compensation planning as well. Whether that means getting creative with flexible work arrangements or realigning compensation goals, compensation must start with a strategy to drive productivity and engagement and to retain top talent.

For many businesses, keeping employees on the payroll has been difficult. In other industries that saw an increase in demand in the face of a global health event, some businesses have actually experienced a need for additional workers. Both issues impact compensation planning for 2020 and beyond.

To address these challenges, some companies are pushing or delaying their formal compensation cycles and determining how to structure their full compenstation packages.

By SUSAN HANOLD

process, look to leverage your technology product experts to understand all the features and flexibility that your compensation solution may have.

2. Share market information and explain your process.

The next level is to provide employees with market studies and information on your compensation process. By publishing market studies, you can raise employee understanding of compensation ranges and market impacts on those ranges. In this way, you can demonstrate to employees that compensation is thoughtfully and carefully planned. You can also stay informed on market adjustments to ensure your compenstation packages remain competitive.

Here are three strategies as you look to adapt your workforce to your current and changing needs.

One of the things you may consider if you are using a performance management tool as well is that you may want to have those discussions at the same time you review the evaluation with the employee first.

1. Review your current compensation plans

3. Train managers to talk about compensation

It’s critical to understand the current state of your compensation system and related pay practices as you begin to bring employees back to the workplace. Some employees might be returning to work at a pay rate that is less than what they were making on expanded unemployment compensation. Also, some employers might have offered premium pay (e.g., hazard or appreciation pay differentials) to employees who are working on the front lines during the pandemic. Consider how long you will do this and how you will communicate with employees if or when you pull back the premium pay, remaining sensitive to the impact that might have.

In addition to providing valuable context, compensation teams can support interactions between managers and employees. As the firstline resource for employees, managers often field questions and hold discussions around compensation. It’s important to provide clear communications that are simple for employees to understand and to be able to find the latest version of your compensation policies and practices. Having a sound compensation strategy in place is critical in navigating periods of uncertainty and retaining talent.

Based on your situation, you may decide to conduct only manager check-ins or remove the performance evaluation completely from the compensation planning process on a temporary basis. In this

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Susan Hanold, Ph.D.

ADP, Vice President, Strategic Advisory Services

ADP, the ADP logo, and Always Designing for People are trademarks of ADP, LLC.

What are you #WorkingFor? At ADP we’re designing a better way to work, so you can achieve what you’re working for.

designed for people. Learn more at design.adp.com

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DOL Update on Return to Work Guidance

On

July 20, 2020, the U.S. Department of Labor (DOL) shared additional guidance on return-to-work issues under the Families First Coronavirus Response Act (FFCRA). The updated guidance contains important information for employers as they focus on returning employees to work and balancing employee needs against the backdrop of COVID-19 and ongoing business operations. Employers and workers alike face many challenges in the current climate and the FFCRA, together with a variety of other workplace laws, seeks to mitigate the impacts of those challenges.

A Quick Refresh - What is the FFCRA and Who does it Apply To? The FFCRA intersects with the Family and Medical Leave Act (FMLA) and Fair Labor Standards Act (FLSA) in requiring certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. Covered employers include some public employers and all private employers with 500 or less employees.

Small businesses with fewer than 50 employees may qualify for exemptions related to employee leave for school closings or childcare unavailability. To qualify, those small businesses must demonstrate that FFCRA compliance would jeopardize the viability of the business as a going concern.

In general, the FFCRA requires employers of fewer than 500 employees to: 1. Provide employees up to 80 hours of paid sick leave if they are exposed to COVID-19 and required to quarantine (at their regular rate of pay).

2. Provide up to 80 hours of paid sick leave (at 2/3 the regular rate of pay) because the employee is unable to work because of a bona fide need to care for someone in quarantine or to care for a child whose school or care facility is closed due to COVID-19.

3. For employees who have been employed at least 30 days, the FFCRA also allows for up to an additional 10 weeks of paid expanded family and medical leave (at 2/3 the regular rate of pay) if an employee is unable to work because their child’s school or care facilities are closed due to COVID-19.

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By JOSHUA ZUGISH

And who foots the bill for all this paid leave? The FFCRA provides tax credits to covered employers to reimburse the cost of providing paid leave.

What does the new return-to-work guidance address?

While previous DOL guidance addressed worker’s rights to leave for school, camp or other child care reasons during the summer months, the new guidance addresses FFCRA and FMLA leave; returning to work in the same or equivalent position; COVID-19 testing as a condition of returning to work; and retaliation issues.

Furloughs, the FFCRA and FMLA Leave Employee furloughs have been widespread in response to the economic impacts of COVID-19. The new guidance verifies that any period workers were on furlough does not count against their leave entitlement under the FFCRA or FMLA. Consider an employee that was eligible for extended FMLA leave and used six weeks of leave before a company furlough was implemented.

Upon returning to work after the furlough, the employee is still entitled to the remaining six weeks of leave. Notably, the DOL specifically states that the employee’s furlough period cannot be extended just because they would need to take FFCRA leave if called back to work.

Returning to Work in the Same or Equivalent Position The new guidance verifies that employees returning to work after paid FFCRA leave must be restored to the same or equivalent position they previously held. Employers do have some discretion in bringing an employee back to work in a position requiring less interaction with co-workers or to require telework.

Similar to return to work concepts established under traditional FMLA leave, employers should be thoughtful when returning an employee to work in a different position to avoid arguments of retaliation and some adverse action tied to the employees use of leave.

COVID-19 Testing and Returning to Work Importantly, employers may also require employees to test negative for COVID-19 before returning to work. It merits mention that the EEOC has also issued guidance on this issue due to possible implications under the Americans with Disabilities Act (ADA).

Retaliation The new guidance expressly states that employers may not discriminate or retaliate against employees for the use of FFCRA leave. This includes a restriction on employers using the anticipated need for FFCRA leave upon reopening as a negative factor in an employment decision.

When does the FFCRA Expire?

to assess application of the FFCRA to your business. If it does apply, consider whether you may qualify for any exemptions if your workforce is 50 employees or less. If the FFCRA applies and there are no applicable exemptions, be mindful of paid leave obligations and communicate with your employees about their rights under the FFCRA. If you have implemented a furlough, be aware that employees may still be entitled to leave under the FFCRA when they return. For employees returning to work after taking leave, be thoughtful about whether they are returning to the same position. If they are returning to a different position, be sure it is equivalent to avoid arguments of retaliation.

The FFCRA is part of a complex legal web that intersects with the FMLA, FLSA and may also have ADA implications. Employers are encouraged to utilize DOL resources and qualified counsel to understand FFCRA implications on their business and employees.

The FFCRA expires on December 31, 2020. It is unclear whether it will be extended by Congress or allowed to expire. As in so many areas of American life, much depends on the impacts of COVID-19 as we trudge through the fall season and how employers and employees continue to be impacted.

What should employers be mindful of going forward?

It is critical for employers to understand and be aware of how the FFCRA may impact their business and their employees. At minimum, it is important

Joshua Zugish, Of Counsel Ogletree Deakins Birmingham Joshua.zugish@ogletree.com www.ogletreedeakins.com

COVID-19 Employee Handbooks Most organizations are in the process of either reopening or making plans to return to an operational status soon. It’s an ideal time to review your employee handbook and update your employment policies to address the post COVID-19 world in which we now work. Certain policies should be updated in light of federal legislation such as the Families First Coronavirus Response Act ("FFCRA"), and other policies to protect your employees – and your company.

• Sick Leave • Vacation and Travel

• Remote Work and Teleworking • Business Contingency Planning

William Carmichael, Ed.D, can help you customize your organization’s employee handbook and make it COVID-19 compliant now! Don’t wait until it’s too late!

Contact Bill at 901.228.5255 or by email at wcarmchl@gmail.com www.HRProfessionalsMagazine.com

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Student Loan Benefits An Opportunity for Employers

By DAX HILL

With unemployment near historic lows, employers are looking for unique and competitive ways to attract and retain employees. One benefit that’s gaining traction is helping employees with student debt.

The numbers surrounding student loan debt are staggering - and growing: • Student loan debt is higher than credit cards debt and auto loans. Only home loans surpass student loan debt.

• Approximately 45 million Americans owe $1.6 trillion in student loan debt.

• Among the class of 2019, 69% of college students have loans, with graduating debt of $29,900 on average.

These numbers are having graduates ask themselves tough questions: “Do I prioritize my student loans over my retirement plan?” It’s also impacting their ability to save for the future. A recent Boston College study shows college graduates with student loans save approximately half the amount as their “no-loan” counterparts by age 30.

According to the Gallagher 2019 Retirement Pulse Survey, assistance with budgeting, debt management and student loans are a few of the financial wellbeing options that help answer this question.

According to a 2019 study by Society for Human Resource Management, approximately 8% of employers are providing contributions to help employees with their student debt. This is an increase from 5 years ago, when only 3% of employers provided student loan assistance.

There are several options that organizations can take to provide financial assistance to employees: 1. Offer refinance and/or student loan coaching. The lowest cost approach is to provide financial coaching specializing in college debt. These providers help employees, by guiding them to better finance terms, incomebased repayment plans, or possible government forgiveness programs.

2. Provide an employer contribution directly towards the college loan. The employer payments would accelerate the loan repayment and free up funds for the employee. This option also provides flexibility to the employer. For example, organizations can base eligibility on tenure, work positions, degrees, or geographically, etc. This flexibility enables employers to tailor a benefit that aligns with their workforce

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recruiting and retention objectives. It’s important to note that currently employer student loan contributions are a taxable benefit to employees. However, there’s proposed legislation (H.R. 1043) that would enable employers to provide an annual tax-free benefit of $5,250 per employee.

3. Employer contribution to the 401(k).

In order to provide a tax-deferred benefit to employees, some organizations are making contributions to the employee’s 401(k) instead. These organizations are conditioning employer 401(k) contributions to employee’s student loan payments. This third option has gained much attention since 2018, when a large employer received a private IRS ruling that allowed 401(k) contributions to be tied to employee’s student loan contributions. Under this plan design, the employee can only receive one type of employer contribution, not both. It’s important to note that the plan that received the private letter ruling is a large plan with nearly 30,000 participants and more than $6 billion in assets. This scale can be important, as an organization interested in executing a similar program would need to consult with ERISA counsel to determine if their own IRS private letter ruling is required, which would increase employer costs.

The escalating cost of college is having a negative impact on graduates, however employers are in a unique position to alleviate some of this financial stress. By offering a student loan assistance program, it may provide a win-win opportunity.

Employees receive a valued benefit that could knock years off of their student debt, while employers become more attractive as they compete for top talent.

Dax Hill, GBA

Area Vice President, Health & Welfare Consulting Gallagher Benefit Services, Inc.

This material was created to provide accurate and reliable information on the subjects covered, but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.

Gallagher Benefit Services, Inc., a subsidiary of Arthur J. Gallagher & Co. (Gallagher), is a non-investment firm that provides employee benefit and retirement plan consulting services to employers.

Securities may be offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services may be offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Investment advisory services, named and independent fiduciary services may be offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Advisor (GFA), which is a single-member, limited liability company with Gallagher Benefit Services, Inc. as its single member. GBS/Kestra-CD(344301)(exp032021)

Hill, Chesson & Woody is now Gallagher.

Same local roots. New global reach.

Our decision to join Gallagher was driven by our shared values and a mutual commitment to providing resources that benefit our clients. Our Gallagher Better WorksSM program centers on the full spectrum of organizational wellbeing. Learn more about our expanded expertise and how we can meet all of your benefits and HR needs, at: ajg.com/hr-benefits-southeast

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They're Heeeere!

The No-Holds-Barred Truth

About Hiring Gen Z

By SONYA WEATHERS

Everyone has talked about the Millennials forever it seems, and with good reason. They are a huge generation and the first one to be raised with the internet. However, there’s a new topic in town, and it’s going to be just as interesting to hear about as the Millennials have been for the past decade. Gen Z is growing up, and is going to affect the workplace, and the world, in a variety of ways. It’s vital that HR professionals understand who Gen Z is, how they differ from Millennials, and how to hire them successfully.

20’s. 12% of respondents said they had started saving in their teens! This is vastly different than the Millennials, who are less inclined to be focused on saving for retirement.

• Th ey were immersed in technology from the cradle. The average Gen Z’er was 10 when the iPhone came out. They grew up with the internet, smart devices, and being connected 24/7. While Millennials are tech-savvy, many of them can remember life without the internet and social media.

How to Hire Them Successfully As with any generation, Gen Z brings strong benefits and unique requirements to the table as employees. Recruiting and onboarding them need to include these steps.

• S harpen your company’s online recruiting. HR should work with marketing to increase and improve the strength of how the company brand is showcased online. This was important with Millennials but is absolutely necessary if you want to hire Gen Z A-players.

Who They Are Gen Z was born from around 1996 to 2010, according to The Pew Research Center. They are the largest generation in U.S. history and comprise 27% of the population. In addition, they are the most racially diverse. 52% are non-Hispanic white, 25% are Hispanic, 14% are black, 6% are Asian, and 5% are either another race or multiple races.

The oldest Gen Z’ers have either entered the workforce in the past few years or are in college.

How They Differ from Millennials Millennials and Gen Z are similar politically and possess a more philanthropic mindset than previous generations. However, there are some significant differences in the two generations.

• Th ey have more educated backgrounds. While many Millennials are well-educated, Gen Z is even less likely to have dropped out of high school and more likely to obtain a Bachelor’s degree. In addition, Gen Z’s parents (typically their parents are Gen X) are also more likely to attain some level of college education.

• Th ey possess greater optimism. Millennials grew up through post-9/11 and the Great Recession. Many of them saw parents lose their jobs and homes, and this made a lasting impact on this generation. Gen Z hasn’t experienced these types of events, although the current pandemic may mold many of their insights, and so they are more hopeful than the previous generation about their futures, home ownership, and job opportunities. With this optimism comes higher expectations.

• Th ey’re bigger savers. In a recent survey, 35% of Gen Z stated they planned to start saving for retirement in their 16

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•O ffer stability. This generation is risk-averse, so they are attracted to jobs that provide a stable work environment and steady income. Showcasing employees with long tenures, ways your company has successfully implemented work-life balance, and future-assisting programs like 401ks with company matches will entice them to work for you.

•F ocus on traditionally-sought benefits. Bring-your-dog-towork days and ping-pong tables may have gotten Millennials’ attention, but you’ll come up short if you’re counting on those type of perks to woo Gen Z. As mentioned above, this generation wants old-school retirement planning as well as robust health coverage and ample vacation time. Talking about ways they can secure a long-term career with plenty of options will appeal to this generation. And, as a result, your company can secure a loyal employee.

•M arket job flexibility. These young people have grown up in the have-it-in-seconds environment that mobile technology provides. They are able to multi-task and don’t want to be bored. Jobs where they can perform different tasks, learn new things, and implement ideas will appeal to this generation. Unlike Millennials, who love teamwork and collaboration, Gen Z is an independent bunch and aren’t scared to think and make moves on their own. Projects where they will have ownership of the outcome will be the ones that attract them to your open positions.

Gen Z’ers are going to dramatically impact the workplace now and during the next decade. By understanding what they want in a job, how they think, and the ways they differ from their Millennial counterparts, HR pros can evolve their companies into ones that are attractive to this generation. The benefits of landing members of this highly educated, independent, stability-seeking generation are immeasurable.

Sonya Weathers

National Accounts Executive Data Facts, Inc. sweathers@datafacts.com www.datafacts.com

Show Employees You Care with a Gift of a Special Meal Thanksgiving Turkey Gift Checks, Holiday Ham Gifts or Grocery Gift Checks For over three decades, Holiday Gift Check Program has helped companies appreciate their employees & customers by providing turkey, ham & grocery gifts. Gift Checks are perfect for a seasonal holiday gift or for a performance incentive anytime! Gift Checks are very flexible, and can be used for any family favorite brands making them an ideal gift that will please all employees. The gift amount can be customized from $5-$50, so easy to fit any budget requirements. A perfect way to keep employees engaged and motivated to go the extra mile during challenging times. Everyone enjoys a festive or fun meal with family & friends! The Holiday Gift Check can be redeemed nationwide at virtually any grocery store and at over 400 Honey Baked Ham Café stores. The recipient will be able to redeem the entire gift amount for any food items they choose, or the gift check can be given for specific festive food like a Thanksgiving turkey or a holiday ham. Optional restrictions such as nonredeemable for cash, alcohol or tobacco can be added for health or tax benefits. The gift checks have a seasonal message and can personalized with employee’s name and the business name. Give a gift that brings on that well-deserved fun meal, one that will deliver great memories for a lifetime!

Ways to Say You Care with Grocery Gift Checks or Turkey & Ham Gift Checks

costs down. Protect your employees by offering a safety compliance incentive.

Show Community Appreciation A grocery gift check can also b given to say thank you and show community appreciation. Recipients will feel appreciated and can enjoy redeeming at grocery stores or super stores nationwide for their favorite foods. They can also take advantage of the option to cash at their bank and then spend at a fun restaurant or anywhere.

Reward participation with a grocery gift check or a seasonal ham & turkey gift check that employees can redeem nationwide at their favorite store. Give them an incentive that will reward them for a job well done!

Holiday Gift Checks are Perfect for Seasonal Gifts

Customize by adding donor’s name to the special message.

Show appreciation with a favorite meal they will enjoy!

Offer Incentive Gift Checks for a Safety Reward Programs In the work environment safety can be vital to keep employees safe and insurance

Say happy holidays and show appreciation to employees & customers by giving Holiday Gifts Checks. Everyone likes giving and receiving!

Holiday Gift Checks can be customized to the holiday budget from $5-$50 gift amount. Say “thank you”

with a Thanksgiving turkey gift check or Happy Holidays with a holiday ham gift check, perfect for a festive gathering.

Recipients enjoy the flexible options to use nationwide at virtually any grocery store for festive grocery items or at any Honey Baked Ham Café stores.

Grocery Gift Checks Will Help Those in Need Grocery gift checks are very flexible and a great way to easily provide meals anywhere nationwide to those in need. The gift checks are ideal for food banks and can be used to distribute holiday meals by providing turkey gift checks, ham gift checks as well as grocery gift checks.

They can be purchased in bulk with flexible denominations. Optional restrictions are often added to limit items purchased. Show you care with a meal to share!

Ham & Turkey Gift Checks are Perfect for Promotional Programs Gift Checks are also great anytime for promotional programs for stores, restaurants, casinos, car dealerships and so many more! Flexible denominations from $5-$50 make it ideal for any marketing promo. Easy to distribute, and fun for your customers or guests to redeem nationwide.

Offer a turkey giveway with a turkey gift check, a holiday Honey Baked ham with a ham gift check or get creative and offer a backyard barbeque!

Patrons will enjoy redeeming for festive fun groceries and can cash at their bank.

Restrictions may be added to limit cash option. Holiday Gift Checks are flexible, easy to use and can be customize with business name for no additional fee. Take advantage of the options to return ‘left over’ gift checks after promotion ends for no fee. Entice and reward your customers or guests with a promotional gift check today!

Visit www.giftcheckprogram.com for seasonal savings & for more information Call us at (630) 986-5081

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17

Twitter Clatter:

When Employee Social Media Activity

MAKES YOUR HEAD HURT

BY HOWARD JACKSON

E

mployers are increasingly dealing with situations where a member of the public complains about an employee’s private social media activity.

Generally, this involves an employee who in some way identifies themselves as an employee

of the employer on the social media site and makes a comment that offends someone else. The someone else then sees fit to contact the employer and complain. Ironically enough this is

A word of caution is in order. The lines between protected and unprotected are not always clear, particularly under the National Labor Relations Act. Where there is any doubt, that is a good time to consult a labor law attorney.

Equal Employment Opportunity (EEO) laws may also provide protection. If the post in some way opposes what the employee believes is a discriminatory condition at work then it could well be protected by anti-discrimination laws.

frequently done via posting on the employer’s own Facebook page. When this happens, what is the employer to do?

IS IT PROTECTED? One of the first questions to ask is whether there is something about the employee’s post that is protected by law?

There are several laws that may give protection to the statement the employee made.

For example, the National Labor Relations Act gives employees the right to engage in concerted activity for mutual aid and protection with regard to wages, hours and working conditions. If the post involves communication about workplace conditions it may fall into this category. It is not always obvious or easy to discern whether a comment falls within this category of protected communication.

Generally speaking if the comments reference working conditions, including matters such as pay, the work environment, or employer policies and practices, and if there is either response by other employees or an indication in the comment itself of some impetus toward group action, the comments are likely protected.

Employers sometimes wrongly assume that “disloyal” comments are not protected. There is a sense in which any complaint about the organization’s practices might be viewed as disloyal. But “disloyal” comments may still be protected. On the other hand, statements that have no particular connection to working conditions and that are openly harmful are not protected. An example would be simply urging the public not to buy the employer’s products because they are awful.

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Many whistleblower laws could also come into play. By way of example, a concern about safety could implicate OSHA, or a complaint about environmental impact could raise EPA concerns.

What about the First Amendment? Some are under the impression that an employee can say anything they want, particularly when off duty, because the First Amendment grants the right of free speech.

For private employers, the First Amendment is not a concern. While the First Amendment prohibits the government from abridging certain rights, it does not prohibit private employers from taking action on the basis of employee speech.

For governmental employers, the First Amendment is a concern, however it does not protect all speech. In general terms a public employee’s speech is likely protected when the employee speaks as a private citizen about a matter of public concern and where the speech does not interfere with the job.

If the statement is clearly protected, then the employer cannot take an adverse action on the basis of the statement. If some part of the statement is protected and other parts are not, then the employer will want to think further and consider more questions.

DOES IT MATTER? It is worth asking whether the “offending” post actually matters. It seems that people can be offended by all manner of things these days, including harmless opinions, comments

that are simply rude or plainly no more than a rant or tongue-in-cheek statement. It is not necessary to react to everything.

There are times when an employee’s post is not outrageous but also not appropriate and not something you would want associated with the employer as an organization. In such cases simply bringing the employee’s attention to the fact you have received a concern, and to the reality that their post is not something that you wish to have associated with the organization, may be sufficient. Where it is appropriate to do so, handling the matter in a low-key way such as this is best.

Suppose it really is awful? Employees have been known to post comments that are blatantly racist or sexist, or that advocate violence, or that are otherwise wholly inconsistent with the values of the organization. In these instances, the employer should follow its usual due process steps and speak with the employee before reaching a decision.

Assuming the process leads to the conclusion that the employee in fact posted such remarks it is certainly appropriate to discharge from employment on the basis of the post.

EXPECT TO SEE MORE. With the election season upon us, and the other strife in the world, this issue is likely to come up more and more. Facebook the employer provided an example this year.

Brandon Dail, who worked as an engineer for Facebook in Seattle, called out another employee who had denied Dail’s request to add a

“Black Lives Matter” reference to a Twitter banner for a Facebook tool.

The other employee said he did not want to be political in the banner.

The end result was that Dail was discharged for his conduct.

In July a Detroit area schoolteacher, Justin Kucera, alleged that he was discharged based on tweets supportive of President Trump and in particular his stance toward opening schools in the Fall. He also posted a tweet that was derogatory toward “liberals” which he took down after a few hours. Soon after posting the tweets he was called into a Zoom meeting that included two Human Resources officers of the school district and asked to explain his tweets. Mr. Kucera says that days later he was summoned to a second Zoom meeting and told he could resign or be fired. He declined to resign and was discharged. The school district denies that his political stance was the reason.

CONCLUSION. When confronted with a social media post by an employee, consider whether there is anything about the post that is protected. Think through whether the post really matters and if so, the nature of the most appropriate corrective step. Stay calm and work your process … that will lead you to a good result.

Howard B. Jackson, Member

Wimberly Lawson Wright Daves & Jones, PLLC Knoxville, Tennessee office hjackson@wimberlylawson.com

Congratulations to Kathy Tuberville, SHRM-SCP! Dr. Kathy A. Tuberville, SHRM-SCP, SPHR, Ed.D

George Johnson Fellow Ron Hart Leader Department of Management Director, Avron B. Fogelman Professional Development Center University of Memphis

Dr. Kathy Tuberville, U of M Department of Management faculty and Faculty Director of the Avron B. Fogelman Professional Development Center, has a diverse career background in both higher education and business leadership roles. Through various human resource management and marketing positions within Memphis, Tuberville became interested in the role of developing college students for the workplace and has over 20 years of experience in teaching, experiential learning, and working with students in innovative professional development programs. She has worked with numerous organizations to build recruiting programs that yield high impact talent development programs. She is the faculty advisor for the University of Memphis SHRM Student Chapter and is on the faculty of the Management Department in the Fogelman College of Business and Economics where she teaches HR courses and advises internships for management students.

Our next Online SHRM Certification Exam Prep Class Begins October 19. Register at www.hrprofessionalsmagazine.com

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19

Employers Rate Top Healthcare Plans

in Leapfrog Survey

By JILL BERGER

It’s no secret that the United States health care system is the most expensive in the world, though we trail behind most other developed nations on virtually every indicator of quality. This is enormously frustrating to employers, who pay for the majority of health care expenses in our country, with over half of U.S. citizens receiving coverage through an employer-sponsored health plan. How do employers get better care at a better price? Do health plans partner with employers to improve quality and reduce wasted costs?

As a former benefits executive myself, I struggled with these questions daily.

In June 2020, The Leapfrog Group, an independent national health care watchdog organization, conducted a confidential online survey of executives of companies that administer and fund benefits for employees and/ or dependents.

The purpose of the confidential survey was to gain employer perspectives on health plan effectiveness in achieving health care quality, safety and value.

The survey asked a cross-section of American employers to identify which health plan(s) they contracted with and rate those plans on four key issues including:

comparing the quality of different hospital systems used by their employees.

Though Aetna achieved the highest ratings for transparency, only 29% of respondents approved their performance. Just 13% of employers were satisfied with health plans' transparency around quality and safety metrics.

3. Payment Reform Traditional fee-for-service payment formulas pay providers a set rate for every service delivered, regardless of whether the patient needs or benefits from it. This creates perverse incentives to deliver more services even if they don’t equate to better care. As a result, employers are among the nation’s strongest champions of payment reform, including advancement of alternative payment models (APMs) such as bundled payments, centers of excellence, direct contracting, and value-based purchasing.

About a quarter of employer respondents reported using APMs; most survey respondents were not satisfied with health plans’ use of APMs. About a third of employers with Aetna reported satisfaction with APM deployment, compared with only one in five respondents with a BCBS plan.

1. Responsiveness of the health plan to employer concerns;

4. Value

2. Transparency in helping employers and employees choose the best providers;

Employers expect plans to partner with them in the drive for value: costeffective, high-quality care.

3. Payment reform initiatives that incentivize excellence in the market; and

Just over half of the employer respondents agree that their health plan is on their side in reducing unnecessary health care costs. UnitedHealthcare was rated lowest among plans on this factor, with 43% of their employer clients satisfied. Employers are more satisfied with health plan efforts to advance health care quality, with 64% satisfied. Only 9% of employer respondents agreed that their health plan helped encourage Leapfrog Hospital Survey participation, a key employer initiative for quality and value.

4. Value strategies driven by health plans.

A total of 174 employers representing an estimated 4 million insured lives participated in the survey. Respondents cited their experience with health plans including Aetna, Cigna and UnitedHealthcare as well as a range of BlueCross and BlueShield (BCBS) plans, including Anthem and over a dozen state BCBS plans.

1. Responsiveness Responsiveness is the foundation of an effective partnership between employers and health plans. The survey considered whether health plans understand employer goals and put a priority on improving employee health.

While overall 58% of employers were satisfied with their health plans, they reported significant room for improvement in pursuing employer goals for quality and value.

Cigna earned the highest ratings from respondents for putting a priority on improving the health of employees, with 71% approval from those that identified Cigna as their health plan, while UnitedHealthcare and BCBS plans earned the lowest ratings, with 52% approval.

2. Transparency Employers have long advocated for more information about the price and quality of health care services, which helps employees and other consumers make more informed decisions about their care.

Survey respondents offered discouraging ratings of health plan effectiveness in helping employees compare among providers. Employers reported a dismal 29% satisfaction level with their health plan’s transparency in 20

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Overall Grades The final question asked of the employers was to grade their health plan, from A to F, on their ability to direct their employees to high-quality health care. Overall, employer respondents gave their plans a C-plus. The larger employers were tougher on the health plans than the midsize to small employers.

Summary This survey brings into focus the conversations employee benefit executives need to have with their health plans. Employers in our survey see significant opportunities for improvement among national health plans in the movement for value in health care. While employers feel favorably toward their health plan in general, most are not satisfied with plans’ performances in galvanizing quality, value, and transparency in health care. Most do not perceive that health plans deliver the necessary tools to improve the quality and safety of care. Nor do the vast majority of employer respondents appear satisfied that their health plan puts their needs above the preferences of contracted providers, making it difficult for them to enact effective payment reform. A surprising number of employer respondents did not feel their plans offered adequate information for their employees to compare among providers.

Among the plans reported in the survey, Cigna was a clear leader in the movement for value. Employers gave UnitedHealthcare the lowest ratings for driving for value, reducing costs, and improving quality. Aetna led among plans for putting a focus on quality. However, no plan got an “A” grade from employers, which shows much room for improvement across the board.

Roadmap Forward The survey should serve as a wake-up call to health plans. Employers are not convinced that plans are doing all they can to improve quality and cost-effectiveness. Health plans need to be more responsive to employer demands for improvements in health care.

Though the survey suggests that overall health plans lag in driving value, the good news is that the path forward is clear and well-paved. Over the past decade, employers collaborated with stakeholders on the regional and national level to expand tools and resources needed to advance quality and value. They removed many barriers to transparency and payment reform, and they built and tested initiatives that work. Health plans can and should take advantage of that progress and build on it. Leapfrog is among those offering well tested initiatives and tools to advance payment reform.

Ultimately, the most critical challenge identified by the survey would seem the most easily remediated. The vast majority of employer respondents did not believe their health plan put their needs first. In other industries, the customer comes first. In health care, however, too often there is confusion about the identity of the customer. So, let this survey reveal it: in the relationship between employers and health plans, employers are the customers because they pay the bills. As employers stand for quality of care and demand results for their investment in the health of their employees, they expect their health plan to stand with them. When that fundamental market dynamic is in place, better care and better value can cascade forward. Employers should expect nothing less.

Read Leapfrog’s full report outlining our employer survey findings on the organization’s website.

Jill Berger is the Director of Employer and Payor Engagement at The Leapfrog Group. Jill brings over 25 years of experience as a benefits executive for companies including GM and Marriott. She is an expert in managing employer benefits and developing innovative solutions for employers and health plans to transform health care.

Does Your Health Plan Partner With You in the Drive for Value?

Ask your health plan if they use the Leapfrog Value-Based Purchasing Program, trusted by employers and plans nationally since 2008. Created by a respected employer-driven nonprofit, the VBP program assigns hospitals a value score that compares them against their peers, pinpoints waste and poor quality, and lights a path to excellent outcomes. The Leapfrog Value-Based Purchasing Program is designed by, for, and about employers like you who want nothing less than leaps forward in employee health. Ask your plan to make it happen.

HR MAG SEPT to specs.indd 1

To learn more: https://www.leapfroggroup.org/employers info@leapfrog-group.org 8/14/2020 10:18:25 AM 21 www.HRProfessionalsMagazine.com

“ Driving Optimal Results Through Individual/Team Performance-Based Incentive Compensation Plans”

By BLAIR and BRUCE JOHANSON

T

here are two base assumptions that come into play when organizations start considering doing something different with regard to compensation and company performance levels. The first is base salary can only go so far to motivate employees in driving revenues and net income. Most organizations tell their employees that their regular pay is based on accomplishing the job duties and expectations as outlined in the job description. The second is base salaries have increased by roughly 3% per year for the last ten plus years and these increases don’t send the right message to cause employees to max out on their performance. We have worked with all types of business and organizations around the country for the past 35 years and have found that the best way to drive results to the next or optimal levels is through individual/team performance-based incentive compensation plans.

Incentive compensation plans have been around for several years, but they have typically been reserved for upper management. One of our client verticals is the financial industry and mainly banks with assets under $15 billion. We have assisted several banks around the country since the mid-80s with developing performance-based incentive/team compensation plans for executive management and lending officers. Over the past ten years, we have expanded incentive compensation all the way down to the hourly bank positions such as customer service/new accounts representative, teller, accounting clerk, loan assistant, courier, etc.

I remember words from a prominent Arkansas bank CEO back in 1987 who said, “What gets measured, get rewarded.”

Three years ago, we worked with a bank and created over 40 individual performance-based incentive compensation plans from Chairman of the Board down to Courier and this bank’s assets have grown over 40% with net income near the same level. The President/CEO indicated that they hadn’t experienced these results prior to the implementation of the incentive compensation plans. Another one of

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our bank clients that we have provided HR/compensation services to since 2008 has grown organically from $400 million to $1.7 billion and they have individual/team performancebased incentive plans and stock option award plans for around 60 salaried employees.

Below is an example of a common individual/team incentive compensation performancebased plan for a loan assistant. The important aspects of this plan include base salary, performance metrics, factor weightings percentages and incentive compensation payout levels of Threshold, Target, Target Plus and Maximum. This plan is created, approved and communicated before the start of an organization’s fiscal or calendar year to allow an employee to take advantage of the whole year to accomplish the performance metrics at the optimal level. In addition, quarterly or at least semi-annually, feedback of where the employee is to date and year-end projections helps to keep the incentive compensation plan in front of the employee.

Your Financial Institution Incentive Compensation Plan Position Employee Name Base Salary Payout % Levels

Performance Factors Number of closed loans per month # of Exceptions - Pre-loan approval Proficiency in the loan system Annual Collection of Past Due Accounts Coop. level w/loan officers/admin. team

Loan Assistant $40,000 Maximum Target Plus Target Threshold

20% 15% 10% 5%

$2,000

Factor Weighting

Threshold

Target

20% 20% 20% 20% 20%

40 5.00% 95.00% $10,000 Meets

Total IC Payout IC Payout as a % of Base Salary 2019 Actuals Number of closed loans per month # of exceptions - pre-loan approval Proficiency in the loan core system Annual Collection of Past Due Accounts Coop. level w/loan officers/admin. Team

$8,000 $6,000 $4,000

Target Plus Maximum

50 60 4.00% 3.00% 96.00% 97.00% $25,000 $50,000 Above Exp. Best Coop.

75 2.00% 100.00% $100,000

IC Payout $800 $1,200 $400 $1,200 $1,200 $4,800 12.0%

55 2.50% 95.50% $60,000 Best Coop.

Note: If employee doesn’t received an overall “meeting expectations or above” on the employee evaluation form, then the payout is not provided. In addition, the Bank must have an minimum of a 1.00% ROA and a "2" or satisfactory or better on bank and compliance ratings.

As you can see, the Loan Assistant incumbent has the potential to generate a minimum of an extra $2,000 (5% of base salary) given that they hit the threshold levels for all five performance factors to a maximum level of $8,000 (20% of base salary). In this example, the Loan Assistant hit one Threshold, one Target and three Target Plus and no Maximums. Total incentive compensation bonus payout for 2019 was $4,800 (12% of base salary).

The performance factors can stay the same or change each year depending on what the organization is seeking to accomplish and how the economy is doing. The number of performance factors should be between three and seven. You want at least three to create sufficient motivation in a few areas and avoid too many factors as it tends to cause an employee to be frustrated having to keep up or push on too many fronts. The factor weighting percentages for the performance factors can be equal or you can place more weight on meatier or items that create best results desired around growth, net income and quality control basis. The payout levels vary based on the level of employee within the organization. We don’t recommend payout levels below 5% or above 50%. As a rule of thumb, executive level tends to have payout levels in the range of 30% to 50% of base salary, directors and managers at 20% to 40%, supervisors at 10% to 30% and hourly 5% to 20%.

It is important to create an incentive compensation plan pool at the beginning of the plan year. The pool figure is typically 5% to 15% of net income and budgeted at the Target level. This amount is set back through monthly accruals. If your organization has a board of directors, we recommend that the Board approve the plan before implementation and the Board or Compensation Committee of the Board oversees the plan during the year and year to year.

Recently, we had a public utility client that wanted to switch from a yearly discretionary bonus plan to an individual/team performancebased incentive compensation plan. We started with the CEO and Vice

President positions the first year with Board approval. The success of the first year was such that the Board approved moving to the manager level. Given the same success, the client will probably move down to the supervisory level the following year. Phasing in a performance-based incentive compensation plan is a smart way to go as this entity has done.

Currently, we are starting a project with a mortgage lending group where top management has been compensated well for growth, but the quality control side of the business is weak. The goal/outcome here will be to develop the right objectives with incentives to improve internal controls and turn this part of the business around.

We have created individual/team performance-based incentives plans for other groups including retirement facilities, airports, manufacturing, transportation/logistics, medical, CPG vendor groups, insurance, and non-profit groups. As mentioned at the top of this article, we are in a time where base salary can produce only so much from your employees and one of the best ways to drive optimal results is through individual/ team performance-based incentive plans.

HR Professional Magazine will be hosting and sponsoring a complimentary one-hour SHRM CEU credit webinar on September 17. This webinar will take a deeper dive into individual/team performance-based incentive plans with Blair and Bruce Johanson leading this worthwhile and timely workshop with time for questions and answers. You can register by going to www.hrprofessionalsmagazine.com.

DBSquared combines proven technology and seasoned expertise to help bring your total compensation management into perspective. We provide: DBCompensation® (built on the proven Job Evaluation and Salary Administration Program ­ JESAP™ methodology) is a state­of­the­art HR compensation management software application that efficiently combines internal knowledge and expertise with pertinent market information to streamline your compensation strategy and policies. Ultimately simple and elegant, DBCompensation is easily integrated into your business strategy and HRIS environment. Our proven methodology and process combined with thorough and intuitive software development ensure you'll never look back.

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We've helped organizations face the management challenges that come with a rapidly expanding staff and customer base. We also assist new business ventures map out their company's future, both strategically and operationally.

Our signature approach is to listen and fully understand your company so that we can then partner with you to realize your own unique vision.

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23

Specialty Pharmacy Trends for 2020 and Beyond

By DENISE CABRERA It is estimated that 17% of America’s personal healthcare spending is for drug therapy.1 With the rise of personalized medicine and gene editing therapy drug spend is projected to reach $600B in 2020. Significant advancements will bring curative therapies to many individuals suffering from rare hereditary diseases. Several trends will further address the need to change the way we deliver and pay for healthcare in the U.S. Specialty Biosimilar Pipeline $62B Biosimilar Market 2020 – 2024 Specialty drugs are chemically more complex and are referred to as biologics because they are derived from living organisms or their products, such as a human or animal protein, hormone or antitoxin.

There is a $62B market for biosimilars over the next four years as competition in the specialty drug market increases. The first biosimilar was launched in the U.S. in 2015. Nine specialty drugs have lost their patent however only six of them have actually launched a biosimilar due to patent protection, patent litigation and manufacturing challenges.2 A biosimilar for Tecfidera, used to treat multiple sclerosis, should launch 3Q2020 with the potential to impact annual sales of $3.5M. The biosimilar for Truvada is expected to launch in 2021. It is a pre-exposure prophylaxis for HIV and will have the potential to impact nearly $3B in annual sales.3

Unique Reimbursement Models for High Investment Therapy High investment therapies have stretched current reimbursement models beyond their capacity. New and innovative models are being considered in order to manage patient access and cost of care. Value based arrangements and risk sharing across plan sponsors, PBMs, Payers and manufacturers is being considered in order to sustain affordability, ensure access to care and continue to incentivize manufacturer research and development efforts.6 Zolgensma, (Novartis), approved to treat a rare spinal defect, is the highest cost gene therapy currently at $2M per patient. Sales of Zolgensma totaled $361M in 2019. Novartis expects to treat 100 infants each quarter.

These high investment therapies have stretched current reimbursement models beyond their capacity.

Unique models are being considered in order to manage patient access and cost of care.

• Annuity Payments - Novartis has agreed to annuity payments for Zolgensma over five years. Spark agreed to the same terms for Luxterna to treat a retinal disease causing blindness.

• Volume Based Purchasing – the Netflix Model - State of Louisiana’s contract with Asegua/Gilead allows unrestricted access of the drug Epclusa, to treat and cure Hepatitis-C, for their entire Medicaid and prison population. Paying a fixed fee for use of the drug, over the next five years, will allow them to treat over 30,000 individuals by 2024. They estimate a savings of over $470M over the next five years in addition to a reduction of medical costs to treat progression of the disease.

• Direct Payer to Manufacturer - Puts the onus on the Payer to prove failure of efficacy. It would not address short term budget issues but would prevent hospitals from marking drug costs up significantly and avoid issues with DRG payments.

• Reinsurance/Stop Loss - Cigna’s Embarc Benefit Protection: Luxterna (Retinal Disorder) and Zolgensma (Spinal Muscular Atrophy)7 - Anthem’s Gene Therapy Solutions: Roctavian (Hemophilia-A)8

Gene Therapy New pharmacogenomic tests and gene therapies are entering the market at an astounding rate and are expected to grow by 10.5% over the next five years. These therapies bring life changing treatment options and hope to many people who are dealing with rare genetic diseases. Progress has been exceptional but these high investment therapies have also introduced new challenges for employers and the payer community.4 The 1983 Orphan Drug Act was enacted to incentivize research for rare diseases which are estimated to afflict 10% of Americans. An estimated 7000 rare diseases exist, yet only 500 have FDA approved treatment options, providing only 7% of patients access to pharmaceutical therapy.

Precision medicine targets specific genes, based on the patient’s condition. Genetic information is gathered through genome sequencing where researchers are able to identify specific abnormalities and come up with drugs and therapies targeted towards them. Gene therapy is designed to correct inherited genetic defects therefore it is curative and preventative for future generations.

The FDA has approved four gene therapies to date, including Zolgensma (Novartis), approved to treat a rare spinal defect. It is the highest cost gene therapy, currently at $2M per patient, and total sales of $361M in 2019. More than 900 investigational new drug applications have been submitted to the FDA in 2020. They anticipate approval of 10 - 20 gene therapies annually, driving more than $8.6B in healthcare expenditure by 2025.5 24

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• Value Based Reimbursement - Spark Therapeutics has agreed to VBR for its gene therapy, Luxturna, which cures a retinal disease causing blindness. The cost of $850,000 will be partially reimbursed if a patient fails to respond to treatment.

As we enter a new decade, the healthcare industry will continue to address challenges like reimbursement for high investment therapies and the impact of social determinants of health. Collaboration between payers, providers and manufacturers is possible, and most likely the best strategy to ensure cost effective access to quality care. When we look back ten years from now, my hope is that we can say “remember when we treated cancer with toxic chemo therapy and genetic disorders went relatively untreated?” That will certainly make the hard work we have to do well worth it.

REFERENCES 1. https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/ NHE-Fact-Sheet 2. Stanton D. In the pipeline: Surge of cell and gene therapies likely in 2020. BioProcess International. 2019. https://bioprocessintl.com/ bioprocess-insider/therapeutic-class/in-the-pipeline-surge-of-cell-and-gene-therapies-likely-in-2020/ 3. Specialty Drug Spend Soars. Can Formulary Management Bring It Down to Earth?, Managed Care, 2019 4. FAQs About Rare Diseases, Genetic and Rare Diseases Information Center, U.S. Department of Health and Human Services, 2017 5. Trends in FDA approval of Specialty Drugs 1990 through 2017, RJ Health, 2018 6. https://www.cigna.com/newsroom/news-releases/2019/pdf/cigna-health-services-business-pioneers-an-innovative-solution-to-affordablybring-life-changing-therapies-to-patients.pdf 7 https://www.cigna.com/newsroom/news-releases/2019/pdf/cigna-health-services-business-pioneers-an-innovative-solution-to-affordablybring-life-changing-therapies-to-patients.pdf 8. http://image.messageinsite.com/lib/fe5615707d600c747210/m/2/757027d4-dff0-4c1b-a50a-ce78326b9917.pdf

Denise Cabrera, Licensed Clinical Pharmacist National Pharmacy Practice Leader McGriff Employee Benefit Solutions 813-682-1515 Denise.Cabrera@McGriff.com

Most brokers say they have all the answers.

We start with a lot of questions.

Every organization has unique needs. We want to know yours before we talk about solutions. McGriff specializes in delivering innovative employee benefit strategies to help manage costs, increase employee engagement and allow HR more time for strategic initiatives. Let us design a benefits program tailored to your organization.

To learn more, visit McGriffInsurance.com and select Employee Benefits.

Š 2020, McGriff Insurance Services, Inc. and McGriff, Seibels & Williams, Inc. All rights reserved.

McGriff Insurance Services, Inc. and McGriff, Seibels & Williams, Inc. are subsidiaries of Truist Insurance Holdings, Inc.

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Business Not as Usual “ Building an intrapreneurial culture might be one of the toughest managerial challenges, but it is an essential part of dealing with change.” -Peter Vogel, 2018

By TRISH “DOC” HOLLIDAY

Between individual and family unrest, public and private organizations struggling to survive, budget cuts of all sizes, IT adaptations, an anxious public, and struggles to attract and retain talent amid such uncertainty, leaders face unique challenges on numerous fronts. As these challenges become more complex, many organizations are looking to pause, pivot, rethink and/or reimagine what business could and should look like in the future. This global pandemic has given leaders, who are willing to embrace the moment, the opportunity to think about structure, work environments, talent placements, product and service delivery, and customer relationships. Chip Heath states, “Defining moments rewire our understanding of ourselves or the world. In a few seconds or minutes, we realize something that might influence our lives for decades…(The Power of Moments, 2017).” We are in a defining moment as leaders of organizations and teams. As we face uncertainty, leaders become the spotlight and it is this type of moment there is opportunity to invite new ways of thinking and doing.

Avoiding Functional Fixedness For years organizations have missed opportunities to address what is called “innovation antibodies” within the walls of their businesses, which has kept innovation and creativity at bay. So-called "innovation antibodies" are famous for their ability to hinder creative thought and destroy ideas entirely. These antibodies are typically found in departments who are least interested in change, innovation, and disruption of any kind. These departments are demonstrating “functional fixedness” which is defined as a cognitive bias that limits a person to use an object only in the way it is traditionally used.

Functional fixedness is often found in work environments where leaders suppress creativity, discourage imagination, and thinking outside the box. An HBR article entitled “Get the Corporate Antibodies on Your Side” by Mitra Best, encourages leaders to confront head-on those who seek to squelch ideas and innovation and invite them instead to be part of new approaches and different solutions. Forward thinking organizations are finding new ways to work around those innovation antibodies and overcoming the functional fixedness barriers.

Embracing the Intrapreneurial Mindset Effective leaders understand the importance of creating a workplace where employees feel empowered to be critical thinkers and stretch beyond “what is” to “what could be” in order to drive efficiencies in product and service delivery and strengthening customer buy-in.

Developing employees to be intrapreneurs is beneficial for the organi28

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zation and for the employee themselves. Intrapreunership is defined as a system that allows an employee to act like an entrepreneur within a company. Intrapreneurship brings a broader vision to an established company; the vision involves changes to company traditions, processes, or products to sustain in the future (Investopedia).

Intrapreneurship helps organizations grow business and effectively accelerate and lead change. High performing individuals are attracted to innovative environments and by creating an intrapreneurial workplace, quality talent is not only easier to recruit, they are also easier to retain as they find themselves challenged and new possibilities widened.

In intrapreneurship, the major challenge that employees often face is the culture of the organization. Often, the workplace relationships and mindsets of the workforce serve as barriers for an intrapreneur. Highly effective leaders create environments where innovation and courageous thinking is encouraged and rewarded. When leaders effectively empower others and are successful in helping others become more influential in their roles, the workforce is likely to be more productive and increase the bar of success overall. Ultimately, organizations that nurture Intrapreunership from within, foster the growth of leaders across the organization.

Obstacles Hindering Intrapreneurship So, what does it take to develop an organization that invites the intrapreneurial mindset? There are obstacles that leaders face in trying to drive innovation from within. It is important to identify these obstacles for leaders to successfully navigate and overcome them in order for intrapreneurship to be interwoven into the fabric of the organizational culture. First, attitude is everything! Effective leaders understand the importance of a positive attitude in a workplace and within the culture. Encourage employees to recognize opportunities to explore and offer new ideas that would boost effectiveness and efficiency.

Second, permission is necessary! Many times we think we do not need to state that permission is granted for employees to experiment and try new ways of operating, yet it is imperative that employees hear they have permission to explore and try new ways of doing things in order for the organization to increase its effectiveness and efficiency.

Third, disruption can be positive! Celebrating small breakthroughs with new ideas and ways of operating ensures that employees see the value in continuous improvement. Creating a culture of continuous improvement is not an easy task; however, the benefits of this type of culture pays off in so many ways. The organization does not get stuck in functional fixedness or become complacent with product and service delivery methods because the workforce is committed to pursuing

what is most effective and most efficient for overall success. When leaders overcome these obstacles, a pathway to developing successful intrapreneurs from within is made possible. Once the path is cleared, let the ideas and innovations flow.

Catching the Intrapreneurial Spirit In an article by Aimee Hansen, from The Glass Hammer, she offers five qualities that stoke the intrapreneurial spirit: 1) Relentless Curiosity, 2) Risk-taking creativity, 3) Daring and vocal courage, 4) Passionate and adaptable resilience, and 5) Contagious collaboration. Upon reflection, knowing these qualities, leaders can adapt their own leadership styles to embrace the intrapreneurial spirit themselves and encourage their workforce to do the same. A great exercise for a leader to facilitate with their team is to dissect the meaning of each of those qualities within their own organizational culture. For example, ask your team to tell you what “relentless curiosity” looks like in the workplace. This type of discussion helps team members identify and recognize behaviors that are associated with “relentless curiosity” and encourages them to demonstrate the behaviors within their own roles.

I remember the time my youngest son wanted gloves that fit him, and the gloves sold in stores were not suitable for someone who was challenged physically with cerebral palsy. My son did not let the fact that nobody produced gloves that were made for him stop him from exploring “what could be.” He worked on a blueprint design of a pair of gloves that would be functional for him and other kids like him. As a result, his occupational therapist and him made the gloves based on

his design, and it was incredible to see the joy on his face as he knew he had created something special that would benefit other kids, not just himself. What a celebration of relentless curiosity and how it can pay off when curiosity leads to innovation!

While establishment may put obstacles in the way of creativity and innovation, intrapreneurs figure out ways to climb over, creep under, squeeze around, or knock a hurdle out of the way (Deloitte, 2013).

Leaders cultivate an intrapreneurial culture by fostering autonomy and empowering employees to take ownership of their work, experiment and take intelligent risks, learn from their mistakes, and develop sound problem-solving skills. Building an intrapreneurial culture might be one of the toughest managerial challenges, but it is an essential part of dealing with change (Peter Vogel, 2018). Leadership matters a great deal. An intrapreneur’s success depends in part on leaders who offer early support, advocate for new ways of thinking, and cultivate a place where there is a “let’s keep trying attitude” and innovative ideas are welcomed.

Dr. Trish Holliday, EdD, SPHR, SHRM-SCP, IPMA-SCP, CPC Founding Partner, Holliday | Kenning trish@hollidaykenning.com www.hollidaykenning.com

Lucinda Kenning, MBA

Founding Partner, Holliday | Kenning lucinda@hollidaykenning.com www.hollidaykenning.com

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D

Supporting & Sustaining Teams through Prolonged Disruption

BY TRACY DUBERMAN, PhD

uring unprecedented and tumultuous times like these there is no such thing as ‘simple' solutions. Crisis Management is complex and difficult. Now more than ever, strong leadership is an essential

factor in mobilizing and motivating teams to success-

During periods of disruption, it is important to take care of yourself and seek out help if and when you need it.

Remember, as leaders we can only make decisions based on what we know, and adapt and adjust as needed when new information comes in. Relieving the burden of having to predict the unknowable can help you to execute sound decision-making in the here-and-now.

fully navigate the rapidly changing landscape created by the COVID-19 pandemic, while still aiming to achieve the business objectives front-line leaders are ultimately responsible for delivering.

Whether you are leading a team or are an individual contributor, you may find yourself experiencing increased disorganization, difficulty concentrating, feelings of overwhelm, and increased uncertainly—all of which are normal responses during a period of prolonged disruption and rapid change. Our experience suggests that management and leadership skills need to look and feel different under these types of circumstances. As such, we offer the following supportive techniques for leaders and teams:

1. Put your own Oxygen Mask on Before Helping Others The ‘unknowns’ associated with disruption and change can spawn panic and anxiety, both of which have been demonstrated to negatively impact the ability to long-term plan, calculate the consequences of risk and reward, regulate emotions, problem-solve, and make quality decisions.

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2. Practice “Mindful Leadership” by being Fully Present for Others Through mindful leadership, leaders can support employees that may be experiencing fear or stress and help guide them toward focus, clarity, creative problem solving, and action.

Provide yourself and employees dedicated time to dive deeper on ‘how’ to approach a challenge, reach a point of comfortable preparedness, and complete associated tasks.

This creates the space to decompress and reason through the matter at hand.

3. Provide a Roadmap Provide clear and consistent information. Aim for quick and meaningful action – and remember that intellectual preparedness alone is not enough. As leaders, it is important to communicate how critical decisions will be made and operationalized in a time-sensitive matter.

High-profile challenges typically attract review by corporate affairs, legal, risk management, and a host of other functions. If you find your organization bogged down by

bureaucracy, ensure you have a small trusted team with appropriate decision-making authority and remind individuals that refraining from or delaying action is a form of response with implications of its own.

4. Double Down on your Common Purpose A sense of shared purpose is a powerful uniting force during a time that could easily spiral into divisiveness and conflict. Explicitly stating your company’s purpose and committing to having the organization revolve around that purpose have been demonstrated to increase employee engagement and organizational commitment during difficult times.

Remember we ‘manage’ tasks yet we ‘lead’ people. Make it about the people. People will need to talk more (a natural way to deal with stress and uncertainty), and the more they talk the healthier the organization becomes. A sense of togetherness embedded with compassion and empathy goes a long way to ensure productivity and performance are stabilized.

Tracy Duberman, PhD, President & CEO The Leadership Development Group 973.722.4480 tduberman@tldgroupinc.com www.tldgroupinc.com

Tracy Duberman, PhD is the founder of The Leadership Development Group (TLD Group), Inc., and co-author with Bob Sachs, PhD of From Competition to Collaboration: How Leaders Cultivate Partnerships to Deliver Value and Transform Health. TLD Group is a full-service life cycle global talent development firm supporting leaders, teams, and organizations Dr. Duberman is a thought leader, speaker and expert on ecosystem leadership, succession planning and talent development.

ABOUT US The Leadership Development Group is a global talent development consulting firm for leaders, teams, and organizations across the health ecosystem. Our solutions include executive, leadership assessment and coaching, organizational development consulting, and group leadership development academies designed to engage and empower leaders to take on challenges and position their organizations for success. TLD Group’s worldwide faculty of over 400 organizational development practitioners, coaches, academicians, and consultants with deep expertise across every major sector of the health industry offer targeted insights and deliver highly impactful results.

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No. 1 impact on your culture?

It’s not the pandemic.

Covid-19 has put a lot on the chopping block: paperwork, commercial real estate, fancy desk decorations. Some of these changes present real opportunities for a better version of work; in a world with less commuting, how much more time do we get back in our day? And some present challenges; how do working parents balance their responsibilities when their child isn’t going back to school until January?

While the pandemic has been the catalyst for change, it’s not going to be the driver of them in the long run. That would be your software.

A digital scramble for survival has left us reactive, not proactive Offices in most major metro areas around the U.S. had little warning things were going to change in March. The call for remote work setups came to many with a 24-hour notice, forcing companies into a sudden scramble.

Which means for many of us, the move to 100% digital workspaces wasn’t strategic: it was reactive. We threw together what we could to make things work in the moment. Slack, email, Zoom, Docusign.

But the need for speed means most of our solutions for data-sharing and collaboration were not designed with a long-term game plan in mind.

Which is a major problem in light of the fact that many companies will probably remain remote through 2020 and into early 2021.

You can’t stop your culture from changing, but you can influence its direction With remote work turning into a semi-permanent state of being, it’s not just how we do things that’s shifting. Our culture is changing, too. After all, culture is built on the way we interact—and that’s been blown apart in the wake of Covid-19.

Why geographic proximity impacts culture We all love those “have a sec?” conversations. They’re quick, effortless, and get us answers faster than any finger+keyboard combination could.

Similarly, we like being able to pull people into meetings where we throw ideas and “talk it out” until we find our next steps forward.

These processes don’t just get us results—they create a culture. These experiences, over time, tell us a lot about the work world we live in. We know which coworkers we can rely on in a pinch, and which we can’t. We know who can lead a meeting and who isn’t worth inviting. We even get counterculture culture habits; if “have a sec” conversations are common, perhaps wearing headphones becomes an easy indicator a coworker doesn’t want to be bothered.

When we go remote, we take fragments of these experiences with us. We still have an idea of who can lead a conversation and who can’t—but even that is subject to change when you go digital. The best in-person talkers don’t always translate well to Zoom.

The fact is, for most companies our “culture” was built firmly on the idea of physical proximity. With that gone, the culture goes with it—or begins to change into something new.

Why software will drive your new culture Now that we’re all working remote, we depend on our software and digital tools to stay connected, both as people and as members of a shared project or task. They’re the only lifeline between us and our coworkers, leaders, vendors, and clients.

Which means our digital tools will play a direct role in every collaboration experience we have. But this can be a problem if we don’t fully understand how these tools are impacting us.

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Two major challenges presented by the move to digital workspaces The first is the lack of transparency digital tools create. Most modern-day collaboration tools allow employees to have conversations that aren’t accessible or visible to other members of the team.

Let’s give an example: employees Allison and Daiki see a problem with an upcoming webinar they’re supposed to run. Allison pings Daiki on his private Slack, and the two talk out the problem and its potential solutions.

Satisfied with their conclusions, they act to implement them.

While this seems efficient, there are a few problems: 1. Because the conversation was held behind digital closed doors, it means there’s not a chance for anyone else to learn from or build upon the issues discussed in it. This can result in other members of the team having the same conversation over (they had no idea it was already discussed) or later feeling blindsided by change requests that come without context.

2. Because the conversation is not accessible to anyone besides the two people involved, there’s no chance for others to learn from it.

Only Allison and Daiki (unless they decide to re-hash their entire conversion on a Zoom meeting or other, more public channel) know how to identify this problem and develop solutions for it.

This not only creates information hierarchies; it also means that the company can lose that kind of insight process if Allison or Daiki ever leave the company.

These small violations of transparency, even when pursued with good intentions, contribute to a culture of isolation. People feel cut out from the conversations that matter; they feel they don’t have context or a big-picture view of their work; they feel as if they have less control over the way things play out (because they had no chance to give input during the discussion phase).

The second challenge is towards a culture of openness. We live in a world where liability is more imperative than ever, and many people are under the sentiment that HR is there to cover the company at the expense of employees. In a pre-digital world, people side-stepped this with face-toface, “off the record” conversations with one another. In a digital world, many people are realizing that kind of freedom is no longer possible, and that everything they say can—and mostly likely will be—on record.

On one hand, this shift to accountability is a good thing: it encourages people to be open and honest about what they think and stand by what they say. But on the flip side, if a work culture isn’t set up to encourage and embrace diversity of views and thoughts, the result isn’t more openness, it’s less.

People will always have their concerns and grievances and ideas about how to improve the company, teamwork, and projects. But if they feel the expression of these could put them on the chopping block, they’re either going to internalize them (which leads them to fester) or find hidden ways of expressing them to trusted colleagues. Perhaps a non-recorded Zoom call, or direct chats on Instagram. Certainly not on email or any of the “open” Slack channels where the company could see and potentially use their feelings against them.

A working mom who feels burnt out from 8 AM meetings while juggling two stay-at-home kids may feel she risks her employability if she openly talks about how difficult her position is.

A young employee who feels her ideas aren’t valued by her manager certainly won’t post about it where her boss can see.

These employees will find ways to connect with like-minded people—but they’ll be through hidden, non-official work channels. Which means HR won’t be able to learn from these struggles and improve the culture as a result of them.

Digital tools foster accountability, but they put strain on openness if they’re not paired with a culture of receptiveness without punishment.

How can HR counter these kinds of digital-driven culture issues?

In the case of transparency, by centralizing as much communication as much as possible while creating policies around how channels should be used. Employees will have an easier time tracking conversations, project changes, and other news if they don’t have to search Slack/Email/Zoom/ Google to see them.

• Start by examining which collaboration tool offers both high levels of transparency and the ability for department-level, topic, or task-specific conversation. Ask teams what they like and dislike about the tools they use, and what problems they face using them.

Don’t let choices of speed of implementation from earlier this year continue to create new problems for employees.

• In the case of openness, it’s less about changing your tools and more about realizing what kinds of pressure these new digital tools place on employees. Software changes more than just the way we share information.

• Work with employees to identify how their tools and digital workspace impact how they view their role on an individual and company-wide level. Do they still see themselves as a part of the team? Or has their view changed with continued isolation?

• When it comes to openness, creating channels or avenues for people to express themselves (not just to HR but also to their coworkers) goes a long way. A working mom will feel more connected to her team and more loyal to her employer if she can share her experiences with other parents in the company and then (as a group) express those experiences to her company in order to improve everyone’s work environment. But this comfortability begins with fostering open conversations—and letting employees have messy and sometimes uncomfortable conversations at the onset.

Learning from a company that’s been there before The challenges of transparency and openness we’ve discussed are problems we at Kintone have personally faced—and resolved with the help of our digital platform (also called Kintone).

Who are we? We’re a Bay Area startup of 50 employees who went remote in 24-hours without a hitch when San Francisco’s shelter-in-place order came on March 16th. We’re also the subsidiary of Cybozu, Inc., a Japanese company of 500+ employees and $1B market value that went fully remote on February 24th with similar ease.

Rather than struggle during the pandemic, we’ve thrived. And we’ve been able to do some surprising things along the way when it comes to transparency and openness. As a result of using Kintone, we’ve been able to keep almost all of our conversations visible so everyone, regardless of department or rank, better understands our company, our mission, and our values. This includes things like how bonuses are calculated, employee’s 401k benefits, and our plans for the San Francisco office in the future.

But we wouldn’t be able to be this transparent without our culture of openness. At Kintone, we believe in “diversity of thoughts and opinions.”

It’s this, combined with a culture of improvement rather than blame when things go wrong, that allow us to keep our conversations honest, even when they’re uncomfortable.

If you’d like to learn more about what Kintone can do for HR teams who are facing their own remote work challenges, check out our ebook, “How New Technologies & Methodologies Are Reshaping HR.” Or if you want to explore how your company can use Kintone’s tried-and-true methods to improve the remote work experience, visit our remote work resources page.

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Putting ‘Leadership’ into the Management Equation: Creating a Context to Assure Employee Equality, Voice and Engagement for Business Success

By GARY HUCKABY and KIM LAFEVOR

T

oday’s climate of managing ‘from the middle’ to carefully navigate operations in assuring business sustainability during the COVID19 pandemic has created a context to stray unconsciously away from the ‘True North’ of our leadership compass. Effectively directing operations to maintain profitability margins, insuring organizational assets are protected, and finding methods to operate differently within the present constraints, including capitalizing on the unprecedented situation to reinvent our organizations, has shifted our focus in many cases elsewhere from our true business engine. As good business leaders, we search for the right methods and approaches to govern our tangible assets and assure return on investment, especially during this period of unpredictability, but in our honorable quest to be good stewards, we have to insure we are not only managing, but leading and engaging our most important organizational asset of all.....Our People.

Personal Leadership Acumen: Time for a Self-Assessment The reality is the pandemic has brought about conditions that magnify instances where leadership is absent, insufficient, misguided, and/or uninformed, as well as cases where conversely it is engaging, empathetic, knowledgeable and/or innovative.

What makes the difference between leadership shortcomings and leadership excellence lies in our individual paradigm to one central question: What is our greatest key to our organization’s success? While the answer may seem rhetorical, it really is not. As organizational leaders, we can say one thing publicly, then do another.

What do our actual behaviors and actions say about us as leaders and our belief systems in what contributes to our sustainability? What do they say about our view of the ‘who and what’ that are truly important to business success? If asked, how would those outside our business compared to those within our own walls of the organization respond to the same questions?

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Huckaby’s True Story From the Front Lines: A Simple Leadership Lesson on Equality, Voice and Engagement As one of the authors of this article and reflecting on our intended points to convey, I am drawn to one of my own personal stories to articulate the points we are making about intentional leadership actions and creating conditions that exude employee equality, voice, and active engagement. For a few short years, I was a Plant Manager with an international, but locally- based, manufacturing company helping to lead them through some turbulent times. It is common in this environment for sales reps to come in and take the decision makers to lunch. My requirements for such a lunch were simple, for us to go, you must include workers from the manufacturing floor.

One day, after such a lunch, we all began to exchange business cards. When one was offered to one of the men who had gone to lunch with us, he replied, "I am just a machinist; I don't have a business card." While the individual did not seem all that affected by the interaction, it certainly left an impression with me.

The workers had heard me say many times that everyone in the plant was “equally important” and that we all just had different job titles. Yet I realized in that moment that not only had I missed an opportunity to reinforce this, I had inadvertently put an employee in an awkward situation.

I immediately looked to correct this situation, and I instructed my assistant to order business cards for each employee.

Most factory/manufacturing workers never really have a reason to have a business card, I thought to myself. But I knew it would be a nice gesture and if in the rare instance they ever needed one, they would have it. I have never been so wrong as to think that an individual, based on their employment status, may not need a business card.

Not until the outpouring of thanks did I fully understand how much a small card can mean so much. If you have always had a business card, it may mean very little to you. But to some, it can be a stamp of validation, proclaiming "I am someone" and “I matter.” Unfortunately, in society today, we are often judged more by what we do rather than who we are. A card has a way of saying, "I am somebody."

Many of the workers came up and told me about showing it to their spouse, offering it to friends, or just having something to put in a luggage tag. One younger employee profusely thanked me, telling me how proud his father was, stating, "He just kept staring at the card and that he had been showing it to all of his friends." However, one individual really made me stop and realize the importance of validation. He stopped by after work to personally thank me for the new business cards. I flippantly said, "That's great; I am glad you like them." He then asked if I remembered a time when I had not had a business card. I admitted it had been quite a while. He said, "People have asked me all my life, 'Do you have a card?' I have always apologized and said no." He relayed a story of standing in line at a local deli restaurant in which his youngest daughter was inquiring about a free lunch give away and a large glass bowl filled with business cards from which the winner would be drawn. "Daddy, do you have a card?" she asked. Before he could even answer, he shared with me that his oldest daughter interrupted and told the younger sister that “business cards” were for people who were important. He didn't say a word. He couldn't. In that moment, he realized his daughter now saw him differently than she once had when she was young, and he could do no wrong. He sat down at the table and quietly requested a to-go box.

Fast forward three months later, he shared with me that armed with a stack of the new business cards I had provided to each employee, he was once again found himself in the deli line with his daughters and that same fishbowl full of business cards coming closer as they moved through the service line. However, this time, as he stopped at the bowl, he proudly turned to his youngest daughter and asked her if she would like his card for a chance at the drawing and with a wink of any eye to his oldest daughter, he handed the youngest a business card that to the world may have had the title of "Lead Machinist," but to his daughters the title read, "My Daddy---A Very Important Man." Upon telling me this story, he looked at me, and with tears in his eyes said, “you will never know what this business card meant to me.”

Sometimes it is these types of simple lessons of leadership that teach us the real importance of employee equality, voice and creating conditions for active engagement to make a difference for meeting organizational goals and outcomes, as well as favorably influencing the lives of those around them.

How We Lead Speaks Volumes About Us Leadership is not about telling people what to do, rather it is about providing a clear and properly calibrated strategic plan and effectively motivating others through an environment grounded in equality, voice and engagement. Mind-body expert Deepak Chopra purports that “influence is the soul of leadership.” The question is: Is all well within our soul? How are we as organizational leaders creating the right conditions for employees to thrive? What is the evidence that we are treating those we lead as equals? What forum or modality have we provided our

employees to have a voice in decisions that affect them?

Have we created conditions where employees leverage their talents, find their passion in their work, and are actively and fully engaged?

Tom Peters, considered an irrefutable management and leadership expert, has contended that the most important leadership traits are honesty, competency, ability to be forward-looking, inspirational, intelligent, fair-minded, yet broad-minded, courageous, straight shooting, and imaginative. Before we write this off as Leadership 101, let’s go back to the questions asked earlier in the selfassessment. What does our behavior actually say about our leadership acumen to others, both internal and external to the organization? Are we sure that how we rate ourselves is how others, in actuality, would equivocally assess us? What are we doing or saying that communicates our leadership effectiveness (or ineffectiveness)? We have to think about small acts as well as bolder larger scale actions of leadership that define whether our leadership compass is working, miscalibrated, or broken. As Colin Powell once said, “Endeavors succeed or fail because of the people involved.”

In Closing-Our Leadership Imperative As organizational leaders and human resource professionals, we have the opportunity each and every day to make a difference in the people’s lives and organizations we serve. We are an integral part and linchpin in driving the desired organizational culture where our organizations and its people can thrive. Therefore, it is our leadership imperative to promote fairness and equality, elevate and integrate employee voice into decisions, and create the conditions where employees are actively engaged and accountable to the organization. Such an approach to both ‘leading and managing’ serve an integral part of a human capital management strategy that not only focuses on the organization’s true business engine, its people, and facilitates and optimizes performance and desired business outcomes.

Gary Huckaby, Ph.D.

Assistant Professor of Management Athens State University Gary.Huckaby@athens.edu www.athens.edu

Kim LaFevor, DBA, SHRM-SCP, SPHR, IPMA-SCP, NDC-CDP

Dean, College of Business Athens State University Kim.LaFevor@athens.edu www.athens.edu www.HRProfessionalsMagazine.com

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Emerging trends in the

Accommodation Sector

By RICHARD WORKS

A

ccording to the US Bureau of Labor Statistics employment projections for 2018-2028, the Accommodation sector is projected to increase employment by 0.4 percent. In an industry sector of over 2 million total jobs,

the projected addition of just shy of 9,000 new jobs by 2028 doesn’t sound like much may be going on. These top line numbers, however, mask differing trends and growth rates within the sector’s component industries.

While the overall sector is projected to experience little growth, the Casino hotel industry is projected to grow much faster – 14.5 percent – and is adding nearly 40,000 jobs by 2028. Employment in the Recreational parks and camps is also projected to grow 14 percent and add about 10,000 jobs. There are three main factors expected to impact projected employment trends in the Accommodation sector: (1) Emergence of alternative short-term rentals; (2) Experience redesigns for casino hotels; and (3) Changing consumer preference toward vacationing outdoors.

A 2018 academic study confirmed that the entry of Airbnb negatively affects hotel revenues in cities where hotels are more likely to be capacity-constrained, and that the effect is more concentrated on price than on quantity, at least compared to non-capacity-constrained cities. The availability of short -term alternative lodging such as Airbnb acts as a price increase release valve in these markets, forcing the hotels to limit lodging rate increases that would otherwise occur when demand increases and there is fairly fixed supply.

Tourism Economics and Smith Travel Research projected a slowdown in performance growth for 2019 and 2020. They suggested that demand is softening. The industry was projected to report flat occupancy in 2019 and a 0.2 percent decrease in occupancy for 2020. Three months after their forecast, booking rates declined across North America. The Wall Street Journal reported slowing hotel growth could be worst in 10 years. The cooling off is a result of lower demand due to the amount of new hotel supply and other options, such as Airbnb, available to consumers.

New offerings at casino hotels

Short-term rentals The traveler accommodation industry is projected to have a small employment decrease over the next decade due primarily to competition from alternative short-term rentals. Travelers are increasingly using alternative accommodations for their travel plans. The growth of services like Airbnb increases competition for hotels. In 2018, consumers spent more money on Airbnb than they did at Hilton, DoubleTree, or Embassy Suites, and the amount is nearing that of Marriott. Between 2013 and 2018, Airbnb sales increased 1,060 percent, compared to 85 percent for Marriott and 51 percent at Hilton hotels. Another big player in the shortterm lodging rental market, HomeAway, increased sales by 611 percent over this same time period. What makes these figures more remarkable is that revenues for the alternative shortterm lodging market include only the fees for bookings and not the additional costs for food, beverage, and incidentals, such as is the case with traditional hotel revenues.

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Casino resort hotels are projected to increase employment over the next decade. These resorts operate as self-contained facilities to increase their profitability. They may incur losses from their entertainment, food, and beverage offerings, but the inducement for visitors to use the gaming floor ensures sufficient revenues. According to professor and gaming historian, Dr. David Schwarts, a large resort hotel with numerous amenities tied to a gambling casino made perfect sense in a tourist destination hundreds of miles from the nearest major city. He suggests that casino resorts have reinvented themselves as non-gaming leisure and business travel destinations that just happened to have casinos attached.

Casino operators provide amenities beyond gaming and market their properties as entertainment destinations to attract new customers. Instead of only targeting gamblers and vacationers, establishments are also targeting business travelers and groups. Patrons may visit a casino for dining, shopping, concerts, or other activities and events, such as corporate parties and meetings. Attracting these new customers provides opportunities to boost gaming revenue as the customers are introduced to the gaming floor just by being there. However, non-gaming revenue will have to increase since remote and digital gambling will become widespread; MGM Resorts chief sales officer, Michael Dominguez, confirms that nongaming revenue is a large part of their business today.

of America. Since 2014, more than 7 million new households began camping; more than one million started in 2018 alone with 56 percent being millennials and 51 percent being non-white groups. More than half of the growth (72 percent) came from those that camp three or more times per year. The 2019 report suggest that momentum would continue, and survey results show enthusiasm for taking more trips each year.

Between 2009 and 2018, employment in the gambling industries (except casino hotels) was down around 10 percent, but up around 9 percent for the casino hotel industry. Gambling Industries (except casinos hotels) are projected to decline 16.3 percent in employment over the 2018-28 decade. According to market research, long-standing non-hotel casino operators have struggled due to the influx of casino hotels in states that removed a ban on casinos.

As states seek to boost struggling funds, the non-hotel casino industry will be faced with increasing pressure from the casino hotel industry. A plausible explanation behind this decline is that added entertainment options at casino hotels are becoming more attractive to non-gamblers.

According to a Forbes article, the increase in new campers (both younger and more ethnically diverse) seems to be due to a number of factors, including general accessibility to camping and various forms of unique camping accommodations, along with increased access to Wi-Fi and cell service. Millennials and Generation X campers have a high tendency to share on social media their videos and photos from their experience, which boosts others’ desire to replicate these moments.

More vacationing outdoors

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Employment in RV parks and recreational camps is projected to grow 14 percent to 2028 and add about 10,000 new jobs due to vacationing becoming more of an outdoor activity. The key drivers for this projected increase includes younger and more diverse campers, millennials having kids and taking them camping, and an increased love for the outdoors. The percentage of campers who camp three or more times each year has increased 72 percent since 2014 according to the 2019 North American Camping Report sponsored by Kampgrounds

Dr. Richard Works

Adjunct Assistant Professor University of Maryland Global Campus richard.works@faculty.umgc.edu

WWW.SFBLI.COM www.HRProfessionalsMagazine.com

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Federal Court Vacates Portions of The DOL’s Final Rule Under The Families First Coronavirus Response Act

By GEOFFREY A. LINDLEY and TAYLOR FLAKE-LAWSON

Earlier this year, Congress passed, and the President signed into law the Families First Coronavirus Response Act (FFCRA) in an effort to provide relief to workers and promote public health during the ongoing COVID-19 pandemic by providing federally mandated paid leave subsidized through payroll tax credits to employers. The FFCRA, which took effect April 1, 2020, contains two key provisions: (1) the Emergency Paid Sick Leave Act (EPSLA) and (2) the Emergency Family and Medical Leave Expansion Act (EFMLEA). Both provisions apply to private employers who have fewer than 500 employees and to public employers.

Emergency Paid Sick Leave Act (EPSLA) The EPSLA provides paid sick leave to all employees who are unable to work in the traditional sense or work remotely because of a need for leave under the following circumstances: 1. the employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19; 2. the employee has been advised by a health care provider to self-quarantine because of concerns related to COVID-19; 3. the employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis; 4. the employee is caring for an individual subject to a government issued quarantine or isolation order related to COVID-19 or has been advised by a health care provider to self-quarantine because of concerns related to COVID–19;

is paid sick leave at 2/3 of an employee’s pay up to a cap of $200/day with a maximum total payment of $2,000.

Emergency Family and Medical Leave Expansion Act (EFMLEA) Under the EFMLEA, employees who have been employed by the employer for at least 30 calendar days and who are unable to work in the traditional sense or remotely because they have a child whose school is closed or childcare provider is unavailable because of COVID-19 are eligible for up to ten (10) weeks of paid leave at 2/3 of the employee’s regular pay capped at $200/day with a maximum total payment of $2,000. As the EFMLEA is an amendment to the Family and Medical Leave Act (FMLA), the leave required counts toward the employee’s twelve (12) weeks of traditional FMLA leave.

The Dispute On April 1, 2020, the United States Department of Labor (DOL) issued its Final Rule implementing the FFCRA. On April 14, 2020, the State of New York filed suit against the DOL under the Administrative Procedure Act in federal district court, State of New York v. United States Department of Labor (Case No. 20-CV-3020), alleging that the DOL exceeded its authority in portions of its Final Rule, thereby unduly restricting paid leave under the FFCRA. More specifically, the State of New York challenged the following four features of the DOL Final Rule: 1. the work availability requirement;

to recognize this inconsistency, and argued that the Court should interpret the DOL’s Final Rule as applying the work-availability requirement to all six reasons. The court refused to do so and ultimately struck down this work-availability requirement. In vacating this portion of the Final Rule, the court further reasoned that though the DOL’s position was not necessarily inconsistent with the FFCRA, the DOL failed to demonstrate that the work-availability requirement was the result of “reasoned decision-making.”

Definition of Health Care Provider The FFCRA allows employers to exclude a “health care provider” from receiving leave benefits. The text of the FFCRA defines a “health care provider” as “(A) a doctor of medicine or osteopathy who is authorized to practice medicine or surgery (as appropriate) by the State in which the doctor practices; or (B) any other person determined by the Secretary to be capable of providing health care services.”

29 U.S.C. § 2611(6). However, the DOL’s Final Rule provided a much more expanded definition and included: “ anyone employed at any doctor’s office, hospital care center, clinic, post-secondary educational institution offering health care instruction, medical school, local health department or agency, nursing facility, retirement facility, nursing home, home health care provider, any facility that performs laboratory or medical testing, pharmacy, or any similar institution, Employer, or entity…” or any individual who is employed by an entity that contracts with any of the institutions that were previously described.

5. the employee is caring for a child of such employee whose school or place of care is closed or whose child care provider is unavailable because of COVID-19 precautions; or

2. the definition of health care provider;

6. the employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

The Court’s Decision

The court noted that the DOL even conceded that its definition of “health care provider” would include “an English professor, librarian, or cafeteria manager at a university with a medical school[.]”

Work-Availability Requirement Under the FFCRA, employees are eligible for paid sick leave because they meet one of the six COVID-19 related criteria. The DOL’s Final Rule dictates that paid sick leave under the Act only applies when the employee has work available to do but cannot do it because of a COVID-19 related reason. In other words, if the employer closes because of the pandemic, then there is no work for the employee to do, and the employee does not need FFCRA leave.

However, the DOL’s Final Rule only applied this work-availability requirement to EPSLA reasons (1), (4), and (5). The DOL seemed

In vacating the DOL’s definition of “health care provider”, the court noted that the DOL’s definition was employer based. It failed to consider the employee’s particular job responsibilities. As a result, it included employees who had only a distant connection to actually providing health care. In contrast, the court held that the statute required the DOL to base its definition of “health care provider” on whether a particular employee is capable of providing health care services. Further, such an employee’s role must be “essential to maintaining a functioning healthcare system during the pandemic.”

A full-time employee is eligible for up to 80 hours of paid sick leave, and a part-time employee is eligible for paid sick leave for the number of hours that the employee works on average over a two-week period. For leave related to reasons (1), (2), and (3) above, an employee is paid sick leave at the employee’s regular rate of pay up to a cap of $511/day with a maximum total payment of $5,110. For leave related to reasons (4), (5), and (6), an employee 38

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3. the intermittent leave provisions; and 4. the documentation requirements.

Intermittent Leave Provisions New York also took issue with the DOL’s rule limiting an employee’s ability to take FFCRA leave intermittently, arguing that the rule would require employees to take leave in a single block of time. The DOL pointed out that while “an employee taking leave for an intermittent-leaverestricted reason must take his or her leave consecutively until his or her need for leave abates . . . once the need for leave abates, the employee retains any remaining paid leave, and may resume leave if and when another qualifying condition arises.”

The court upheld the DOL’s rule in this regard because it only restricts intermittent leave to EPSLA reasons (1) through (4) and (6), which relate “to the public-health risk of an employee who may be infected with COVID-19 returning to work before the risk of contagion dissipates.” In other words, the DOL’s rule was consistent with the FFCRA’s statutory intent of providing relief to workers while promoting the public health. However, the court took issue with the Final Rule’s blanket requirement that an employee obtain approval from the employer in order to take intermittent leave. Because the DOL Final Rule does not provide justification for why such a requirement should exist in a situation where the leave is to care for a child whose school or place of care is closed, the court vacated that portion of the Final Rule.

Documentation Requirements The DOL’s Final Rule requires that employees submit documentation justifying their need for FFCRA leave to their employer. The court noted that the substantive aspects of the documentation required are consistent with the statute. However, the court stated that the DOL’s regulations require that the employee submit such documentation prior to taking leave. However, the FFCRA provides that the timing of such justification for leave is “as is practicable” for EFMLEA leave and “[a]fter the first workday . . . an employee receives paid sick time” for EPSLA leave. Therefore, the court vacated the temporal aspect of the documentation requirement.

Employer Considerations It is likely that the DOL will seek to remedy the technical issues found by the court with regard to the work-availability requirement and the intermittent leave provisions. In the meantime, in response to this decision, employers should consider the following:

childcare provider is unavailable because of COVID-19 precautions; and • employers in the health care industry should evaluate their employment positions and consider providing leave, if they are not already doing so, to qualified employees who fall outside of the court’s interpretation of the FFCRA’s definition of health care provider.

Geoffrey A. Lindley, Attorney Rainey Kizer Reviere & Bell PLC glindley@raineykizer.com www.raineykizer.com

• adopting documentation requirements consistent with the court’s ruling, meaning that an employer not require documentation before leave is granted; • allowing employees to take intermittent leave to care for their children whose school or place of care is closed or whose

Taylor Flake-Lawson, Associate Attorney

TFlake@raineykizer.com Rainey Kizer Reviere & Bell PLC www.raineykizer.com

Please join us for a virtual event Wednesday, September 30 | 12 p.m. ET COVID-19’s Litigation Aftermath: Preparing for the Coming Wave of Legal Claims in North Carolina and South Carolina What actions did employers take (or not take) that may now leave them open to litigation? As the year has progressed, we have seen an increase in whistleblower, retaliation, failure to provide statutory leave, and failure to accommodate claims. This program will discuss litigation trends we are seeing, how employers can prepare for the new wave of legal claims, and steps employers can take now that will hopefully minimize their ultimate liability.

For more information and to register for the event, please visit littler.com/events.

Atlanta | Birmingham | Charlotte | Lexington | Memphis | Nashville | Lexington SPHR/PHR and SHRM certifications are pending approval.

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About the instructor: Cynthia Y. Thompson is Principal and Founder of The Thompson HR Firm, LLC, a human resources consulting company in Memphis, TN. She is a senior human resources executive with more than twenty years of human resources experience concentrated in publicly traded companies. She is also the Publisher | Editor of HR Professionals Magazine, an HR trade publication distributed to HR professionals in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina and Tennesse. The mission of the publication is to inform and educate HR professionals. Cynthia has an MBA and is certified as a Senior Professional in Human Resources by SHRM and HRCI. Cynthia is a faculty member at Christian Brothers University in Memphis teaching Human Resource Management. Cynthia also teaches online HR Certification Exam Prep Courses for HRCI and SHRM. She is a sought-after speaker on HR Strategic Leadership.

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AUGUST 11

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10

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11

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1 2020 SHRM-Memphis Board of Directors 2 Dr. Kathy Tuberville, SHRM-SCP, SPHR, Ed.D, Co-VP of Programs 3 Jeff Weintraub with Fisher Phillips, spoke on “FLSA Aggressive Collective Actions & the Cure.” 4 Brigette Wilson, SHRM-Memphis President 5 David Dufour, SHRM-Memphis President-Elect 6 Sexual Harassment Panel: #MeToo 7 Dan Norwood, attorney with Norwood, Howard & Atchley, spoke on “Reasonable Minds Can Differ #2.” 8 2020 SHRM-Memphis Legal Conference Committee 9 Paul Prather, attorney with Littler, spoke on “Reasonable Minds Can Differ #2.” 10 Lisa Krupicka, attorney with Burch, Porter, & Johnson, PLLC, spoke on “What Keeps HR Pros Up at Night.” 11 Tom Henderson, with Ogletree Deakins, spoke on “Opioids in the Workplace.” 12 Alan Crone with Crone Law Firm PLC and Frank L. Day with FordHarrison spoke on “Reasonable Minds Can Differ #1.”

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Visit tnshrm.org for more information/registration Whether in-person, virtual or combination, the 2020 TN SHRM Conference & Expo will be held as scheduled.

Join us to learn from proven leaders on how they transformed cultures, changed strategy and achieved results with innovative HR practices.

Keynote Presenters

Bill Courtney Business Owner Academy Award Winner

Dr. Trish Holliday L’ship Strategist & Exec Coach

John Daniel EVP & Former CHRO First Horizon Bank

Brock Carlson Talent Acq Mgr FedEx Logistics

Conference Add-Ons: Diversity and Inclusion Conference

Alex Smith CHRO City of Memphis

Sunday, November 1 “Leading Inclusively: Culture Empowering Organizations in Adverse Times”

Students and Young Professionals Day Saturday, October 31

Hosted by:

Presented by:

What Exactly is a “Go-to” Person?

Bestselling author and corporate advisor Tulgan, teaches us that Go-to-People have the ability to: The Art of Being Indispensable at Work: Win Influence, Beat Overcommitment, and Get the Right Things Done

by Bruce Tulgan

By WILLIAM CARMICHAEL

Please pardon two brief but necessary word characterizations for this month’s review; art- the expression or application of human creative skill and imagination, and indispensable- absolutely necessary, essential, or requisite. In an occupational setting, these words expressed together prompt the vision of someone who is absolutely in command of his or her job. We all know someone like this. That “go-to” person your office or business just can’t do without. In The Art of Being Indispensable at Work: Win Influence, Beat Overcommitment, and Get the Right Things Done, author Bruce Tulgan describes what makes that person so effective at what they do and describes the characteristics of how they got this way. In this game-changing yet practical book, Tulgan shows us how “go-to” people not only behave differently but also think differently, basing their decisions and actions on their own personal influence rather than on any formal designation of authority.

Perhaps most importantly, Tulgan teaches how each of us can master this art of being indispensable at work, even during a pandemic.

Overcommitment vs. Collaboration Early in this excellent management guide an uncomfortable familiarity began to set in for me and likely will for readers. That regardless of the industry we have trained in, each of us is guilty of saying yes way too often.

Of overcommitting! In The Art of Being Indispensable, Tulgan talks about something called over commitment syndrome, which the author defines in the formula: Inundation of requests + No Accountability + EIMJ (Everything is my Job) = Over Commitment Syndrome.

Sounds familiar doesn’t it? I, for one, am guilty of this. But why exactly do we too eagerly overcommit? To be thought of as a team player, certainly. To be someone who can be counted on, definitely. But honestly, we each want to be thought of as indispensable . . . of being that “go-to” person. But how?

To complicate things, another reality is that these days doing our job has also become a lot harder. We collaborate with a lot more people than ever before.

But our author teaches us that collaboration for the sake of collaboration presents a problem of accountability. There is a simple reality that getting what you need from your lateral colleague or even your boss is difficult at best because there is no way to hold them truly accountable without clear authority.

Tulgan explains how collaboration manifests in different ways with different names in any organization. It can be called matrix management, dotted-line reporting, cross functional coordination, self-managed project teams, lateral cooperation, inter-dependency, etc... But according to the author, the main goals of collaboration is to speed up and improve: information exchange, decision making, planning, resource sharing, and execution. There has to be a solution and Tulgan shares it with us.

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- Understand the peculiar mathematics of real influence.

Go-to people make the right decisions and get the right things done.

- Lead from wherever they are. Today, many of us are constantly being asked to do things by people who aren’t our boss, and where we must ask things of others who don’t report to us.

- Know when to say no and how to say yes. The secret to saying yes is to ensure the project is set up for success with a concrete plan—a clear sequence of events and ownership of next steps.

- Work smart. Go-to people identify what they do best and what they want to be known for.

- Finish what they start. Go-to people understand that the way to win is to complete projects so they can take on new ones.

- Get better and better at working together. Relationships are key, but go-to people know the way to build them isn’t through politicking and personal rapport.

Structure and Layout At 218 pages, its eight short chapters can easily be read over a weekend. What readers will also appreciate is that beyond a helpful summary found at the end of each chapter, here is an author who clearly understands what is going on in the trenches as well as in the C Suite and makes recommendations that are clear, concise, and doable.

Who Will Benefit Most from This Book?

Management (at all levels) ABOUT THE AUTHOR:

Bruce Tulgan is a bestselling author, an adviser to business leaders all over the world, and a sought-after keynote speaker and seminar leader. He has worked with thousands of leaders and managers in hundreds of organizations, from Aetna to Walmart, the US Army to the YMCA. He lectures at the Yale School of Management and is the author of several books, including the bestselling It’s Okay to Be the Boss and Not Everyone Gets a Trophy. He is the founder and Chairman of RainmakerThinking, Inc.

William Carmichael, Ed.D

Professor | Strayer University William.carmichael@strayer.edu www.strayer.edu

You’re invited to attend the

11th Annual

October 23, 2020 Friday 8:30 a.m. to 4:00 p.m.

Registration opens at 8:00 a.m. at

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Join us for an informative day where we will dive deep in critical issues facing human resources, including: ♦ Workers’ Comp Pumpkin Patch – Review a checklist of Workers’ Compensation guidelines to make sure you are complying with all current legal regulations. ♦ Bobbing for Apples and the ADA Interactive Process – Learn how to engage in an interactive process with a disabled employee seeking workplace accommodations. ♦ Tricks or Treats - Social Media and HR – Exploring the impact and legal concerns of social media in the workplace and using it as a tool for HR. ♦ Skeleton in the Closet: Employment Case Studies – An interactive discussion of recent employment law cases and the application of relevant concepts and HR strategies. ♦ HR Spooktacular – An interactive session that will test your knowledge of key legal standards and principles on a wide spectrum of HR issues.

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The registration deadline is Friday, October 16, 2020. Register early as seating is limited.

You may pay by check or credit card.

This program has been approved for 5.5 recertification credit hours through HRCI and SHRM.

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