Compensation Challenges in a Multi-Generational Workplace

A multi-generational office can be enriching for all team members, but it also presents unique challenges to effective management. Beyond matching compensation levels to experience and responsibilities, employers also now have to take into account the different compensation preferences of up to five generations. When it comes to attracting and retaining a talented team, employers need to consider compensation factors that go beyond the paycheck.

Younger generations are less likely to build a life-long career at one company, and so they value career development and personal growth.

When identifying incentives for millennial workers, employers can consider funding their LinkedIn accounts, relaxing the office dress code, or sponsoring happy hours where younger employees can connect with more experienced staff.

Recent research has shown that Generation X’s priorities lie in managing their work-life balance, and many will consider sacrificing higher pay for jobs that are less demanding of their time. For Generation X, paid time off is a significant incentive. Meanwhile, Baby Boomers are generally less interested in social incentives, and will be more focused on benefits and matches in retirement plans or pension programs. While experienced-based compensation is expected, additional incentives can help retain employees across all generations.

Contact Madison Approach Staffing today to discuss how our Direct Hire, Temp to Hire, Temp Staffing, Training, Payroll Transfers and Benefits Administration services can benefit your business.

 

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August is the time for fun in the sun, so take some time off and let us help!

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Take A Break On Us!

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(914) 428-4800

www.MadisonApproach.com

*offer valid only on new job requisitions of 40 hours or more placed and worked from 8/1/15 – 9/15/15

Workplace Burnout

Job burnout is recognized as neither an ailment nor a neurosis, but it doesn’t take a physician or psychologist to diagnose workplace burnout. It may, however, take an informed and experienced manager. Being able to recognize the signs of burnout and implement the right solutions for your employees can mean increased productivity, loyalty and a happier workplace.

Studies have shown that burnout is more likely to affect those working in positions with high stress and emotional demands, such as social workers, police officers, lawyers, teachers, nurses, doctors, engineers and customer service representatives. These can all be characterized by contact with other people whose demands can be emotionally draining.

What is burnout?

Burnout is a level of stress that affects employees physically, emotionally and mentally leading to exhaustion on all levels. There are 3 types of burnout:

• Exhaustion
  • The stressed out employee who is overwhelmed but continues to strive for success by working at all hours despite fracturing personal relationships both at work and at home.
• Cynicism
  • An under-challenged employee who feels a lack of development and value for their work. This employee will begin to distance him or herself from their work, coworkers and the company.
• Inefficacy
  • The employee who gradually loses all motivation. Despite seeing a goal to strive for, the barriers between them and success feel insurmountable.

Signs of Burnout in Employees

This is where experience can help a manager differentiate between a bad employee and an employee on the road to burnout. A manager who knows his or her employees well has an advantage, as the warning signs vary from person to person. Keep an eye out for:

• Lower quality of work
• Decreased productivity
• Drop in job satisfaction
• A noticeable decrease in engagement
• Greater disruption of coworkers’ tasks
• Reduced commitment to both the job and the company
• More and more work absences

Effects of Job Burnout

Like depression and anxiety disorders, burnout can affect the sufferer on physical, interpersonal and emotional levels. Social relationships may either be dropped entirely – through overworking or withdrawal – or become strained from defensive behavior or an increased tendency towards conflict. Often a burned-out employee is unable to understand that stress is the root of their problems.

Burnout can also lead to health problems, such as headaches, colds and insomnia – all of which are caused by maintaining high levels of stress and emotional exhaustion. Further health risks include an increased dependence on self-medication including alcohol, smoking, sleeping pills, mood elevators, and stimulants.

Causes of Occupational Burnout

Only an experience and involved manager will be able to pinpoint the causes in a particular employee, as they run the entire spectrum of workplace issues:

• Overload of work
• Conflicting job demands
• Tasks that are impossible or nearly impossible to complete
• Lack of resources whether training, funds or technology
• A critical boss
• Ingrained perfectionism
• Lack of recognition
• Not enough information about their role
• Not enough feedback
• Difficult clients
• Lack of social support

• Inadequate pay
• Conflicting roles between home and work
• Not enough participation in decision making
• Under-employment
• Menial tasks with no end
• Personal values conflict with company values
• Achieved goals seem meaningless
• Bureaucracy
• A lack of social or emotional skills

Prevention of Burnout

For a manager, taking steps to prevent burnout is a balancing act between maintaining productivity at the office and recognizing what type of burnout your employees are more prone to fall prey.

Train your team well, equip them with the right tools and the resources they need. Don’t spread them too thin – understand the difference between challenging them and overwhelming them. Also be sure to clearly define their roles and give every member something to own, a part of the company where their decisions are key, no matter how small. Provide support and feedback while rewarding and promoting for good work. Be fair and make sure their voices are heard.

Let your employees follow their passion – whether this means rearranging positions in the company or allowing time for work-related side project – find a way to make sure they are doing what they love.

Foster a work culture that makes it acceptable to socialize during breaks but where cattiness and pettiness is unacceptable. Train your employees on stress management, educate them on burnout and make every employee responsible for preventing burnout in themselves and their coworkers.

Some employees need to be forced to take breaks or given a cutoff time for when they have to stop answering email from home. Others find the best reward is being given a mental health day pass or one day a month when they get to leave early to pick up their kids from school. Giving them a chance to balance home and work goes a long way to getting the most out of your employees and creating a work culture that retains productive and innovative employees.

While extreme cases of burnout can be scary, the good news is that it is both reversible and preventable. Educate yourself and your employees and take some time to take your employees out for a meal to learn more about their passions, aspirations and what changes they would like to see. Following through with employee feedback is the best way to make them heard, respected and valued.

The bottom line is a burned out employee is not productive and a drag on an organization, large or small. Providing a productive workforce is the job of every manager and helping your team to manage workplace stress and providing them the environment and tools to be successful is essential for the success of the organization and the individual.

How to Write a Killer Job Posting to Reel In the Right Candidate

The Internet makes it easy to put a job posting in front of hundreds of thousands of jobs seekers, so it’s important that you take the time to craft yours so it stands out to the top talent. Don’t forget that your job posting is an advertisement for you, your company, and your open position!

Take Time with the Title

This is the first impression – don’t be afraid get creative. If you want a candidate to click on your posting, make it worth their while! Whether you are a fun start-up with room for growth, or a serious company looking for years of experience with an emphasis on professionalism, you need to get them to click! Your posting title doesn’t have to match the position title, so make it click-worthy. It is also important that the title is search friendly, so micro-target your future employees.

Be Specific, for Your Sake and Theirs

If you are vague about the duties entailed, you will be bombarded with resumes of candidates that are clearly unqualified.  By taking the time before posting the job to sit down and map out the responsibilities of your hire, you will be able to keep the excess resumes out of your inbox. This small step will give you more time to focus on finding the perfect hire.

Cut the Jargon, for Clarity’s Sake

It’s easy to forget that the terms and lingo used by your company are not a universal language. Have someone who does not work at your company read over your job posting to make sure it is clear. While you may think you are removing unqualified candidates, you may just be alienating those who have the skills with a language barrier.

Draw the Skills & Experience Line

By stating your required qualifications for the position, you will also weed out undesirable candidates. Your position may have space for training, but there are always points you won’t compromise on not matter his or her experience. Be clear and stand firm.

Make the Candidate Show & Tell

No matter the skill or experience level of a position, you can always find ways to challenge the applicants. Creative positions can ask for ad copy for a certain situation, sales reps can be asked how they deal with a difficult client, and social media marketers can be challenged to present their ideas for an imaginary campaign.

A well-written job posting can practically eliminate the need for a first round of interviews. This all hinges on you knowing exactly what you are looking for, being clear about your ideal candidate, and asking the right questions. While it may be easy for you to write a three-page job description, remember to take the time to cut it down to a readable length. The aim is to entice, not intimidate.

The Affordable Care Act for Small Business Owners in New York State

This post is about businesses with up to 50 employees. To read more about businesses with 100 or more employees, read this post.

ACA has created a complicated maze of regulations and requirements for businesses. Madison Approach Staffing is here to help you sort through your questions and support your company through the transition.

Businesses with 50 or less full time employees are NOT required to provide health insurance to their workers under the Affordable Care Act (ACA). However, there are advantages to providing affordable health insurance to your employees and steps that small business owners can take to help their employees find health insurance on their own..

Offering health insurance to employees is a great incentive to build loyalty and maintain high retention rates for long-term employees, but it’s not right for every business owner depending on the cost and internal employee structures. Year round enrollment is available through the SHOP (Small Business Health Options Program) exchanges, so small business owners are not beholden to the same enrollment periods as larger businesses. The SHOP exchanges provide lower rates than outside options for insurance coverage, have no minimum enrollment requirements, and are the only way a small business can take advantage of the tax credits afforded small businesses for helping to pay for healthcare for employees.

Although all employees without health insurance were required to have enrolled in the NYS health exchange by March of this year, there are still options to help them and your business. If you are a small business with 25 employees or less, contribute at least 50% toward your employees’ premium costs and your employees’ average wages are less than $50,000 you may be eligible for a small business health care tax credit of up to 50% to help offset the costs of insurance.

Use this handy tool to estimate your tax credit:

Small Business Tax Credit Calculator

Many owners who are unable to provide group insurance opt instead to contribute towards the cost of their employees’ health costs. The average amount provided per month for these employers is $200.

According to the NYS health exchange, business owners may define full-time employment however they see fit, but in order to offer health care options via the exchange, part or full-time employees must work a minimum of 20 hours per week.

If you opt to use the SHOP exchange and your number of employees rises above 50 employees during the year, don’t worry. In 2016, the exchange will be available to businesses with up to 100 employees.

Business owners can also help their employees by guiding them through the health exchange process. While it is not mandatory for owners to provide a notice of benefits to employees, it is another way to encourage and foster positive attitudes.

The ACA has created incentives to encourage employers to put in place opportunities to encourage healthier workplaces. Wellness programs would require participating individuals to meet a specific standard related to their health to obtain a reward, including decreasing tobacco use or lowering cholesterol. More information on these programs can be found at http://www.dol.gov/ebsa.

Small business owners can find information about coverage in their area at https://www.healthcare.gov/find-premium-estimates/ as well as information for individual and family coverage for their employees.

For more detailed information on the key provisions under the Affordable Care Act for Employers with up to 50 employees, follow this link

For more detailed information on the key provisions under the Affordable Care Act for Employers with fewer than 25 employees, follow this link

For information on how to enroll in the SHOP Marketplace, follow this link

Here’s a great infographic to explain the ins and outs:

 

The Affordable Care Act for Large Business Owners

This post is about businesses with 100 or more employees. To read more about businesses with up to 50 employees, read this post. 

ACA has created a complicated maze of regulations and requirements for businesses. Madison Approach Staffing is here to help you sort through your questions and support your company through the transition.

Businesses with 100 or more full time employees will need to have their Affordable Care Act (ACA) ducks in a row by January 1, 2015 or face fines for non-compliance. After the business enrollment deadline was extended for a year, due to technical issues and delays of the SHOP (Small Business Health Options Program) exchanges, many business owners are scrambling to crunch numbers and understand their options going forward. These provisions apply to all large employers, including for-profit, non-profit, and government entity employers.

The Facts:

For Large Businesses, defined as more than 100 FTE (Full Time Equivalents) employees, the enrollment deadline is January 1, 2015. Under Employer Shared Responsibility provisions, large businesses can avoid penalties by offering minimum essential coverage (MEC) to full time employees and their dependents, including children under age 26. The offered coverage must include 3 specific guidelines: 70% of employees must be OFFERED an option for affordable insurance; the employee share of the healthcare premiums cannot exceed 9.5% of their salary; and this insurance must cover at least 60% of typical health care expenses for an average person. Remember, the employer must OFFER coverage, but there is no obligation under the legislation to PAY for coverage. Where it becomes tricky is complying with the affordability requirement.

Essential Health Benefits (EHB) vs. Minimum Essential Coverage (MEC) vs. Minimum Value Plan (MV):

Essential Health Benefits are defined as 10 core benefit categories including elements such as emergency services, hospitalization, mental health and other specific categories.

Despite the term, Minimum Essential Coverage does not have anything to do with the nature of the health benefits. MEC is defined as the source of the coverage and the eligible sources include:

• An employer sponsored plan
• A government sponsored plan
• A grandfathered plan
• A marketplace plan

Plans that do not count as MEC:

• Coverage only for vision care or dental care
• Workers’ compensation
• Coverage only for a specific disease or condition
• Plans that offer only discounts on medical services

Minimum Value refers to how much monetary coverage the plan provides. ACA requires that a health plan pay at least 60% of the cost of services provided under the plan. Find a MV calculator here.

What This All Means:

• MEC is the coverage that is required to satisfy both the Individual Mandate and the Employer Mandate.
• Many plans meet the MEC requirement for compliance with the Affordable Care Act and can be quite affordable too. But not all MEC plans meet the MV (60% actuarial value) requirements or the EHB requirements.
• Conversely, many of the plans that meet the MV and EHB requirements do not meet the affordability requirement (9.5% of household income).

Potential Penalties:

If no coverage is offered by the employer, the employer will be penalized $2,000 per year, multiplied by the number of full time employees, the first 30 full time employees are exempt.

If a MEC plan is offered, but doesn’t meet the affordability guidelines (9.5%) or the MV requirements and any full time employee receives a Premium Tax Credit through the Health Exchange, the business owner will be penalized $3,000 per full time employee certified to receive the tax credit. These penalties may increase if insurance premiums grow.

Two possible strategies to deal with the affordability issue are (1) the employer pay a flat dollar difference between the total plan cost and the employee contribution or (2) the employer contribution is a sliding scale based on employee wages and the ACA affordability criteria.

Infographic depicting the penalty maze

Additional Information

• By 2016 large businesses are required to offer these options to 95% of their full-time workforce.
• IRS returns will have to include documentation of benefits provided throughout the year to employees.
• Business owners must provide employees with a “Summary of Benefits and Coverage” form to help employees better understand their insurance plans.
• The maximum amount an employee may elect to contribute to health care flexible spending arrangements (FSAs) for any year will be capped at $2,500, subject to cost-of-living adjustments.  Note that the limit only applies to elective employee contributions and does not extend to employer contributions.
• Individuals who are eligible for employer-provided healthcare cannot be made to wait longer than 90 days to be enrolled.
• If two or more companies have a common owner or are otherwise related they may be treated as a single employer

Information Reporting

Beginning in 2015, business owners with 51 to 99 FTE employees will be required to report information about their provided health coverage even though they are not required to provide coverage until 2016. The first of these reports must be filed in 2016. More information about this reporting can be found here.

Sources to Educate Yourself Further

For questions about specific details that circumstances that may apply to your business, the United States Department of Labor has provided a Frequently Asked Questions landing page about Affordable Care Act implementation, http://www.dol.gov/ebsa/healthreform/regulations/acaimplementationfaqs.html

For a complete overview of the key provisions under the Affordable Care Act for large businesses, head over to The US Small Business Administration website, http://www.sba.gov/content/employers-50-or-more-employees

For a schedule of webinars provided by The US Small Business Administration, go to http://www.sba.gov/healthcare. These webinars cover the important points for different sized businesses, and have a question and answer portion at the end. The webinars are also available in English and Spanish.