Dec 20 2022
How to Boost Employee Morale With Powerful Pay Strategies

How to Increase Employee Engagement in 2023

Talent and Cost Balancing Management Tips

In the last three years, it has been common for HR professionals to face new challenges and opportunities in the ever-evolving world of human resources. Next year will not be the exception. One of the most pressing concerns that many organizations will face in 2023 will be managing labor costs while maintaining a competitive edge and providing employees with fair compensation and working conditions. This can be especially challenging in the current economic climate, where changes in the job market, shifting business strategies, and other factors can impact the bottom line.

Keeping labor costs under control for HR professionals requires a strategic approach that balances the business’s needs with the talent and resources needed to stay competitive. In this post, we highlight easy wins to keep costs under control. Whether you are an HR manager, director, or someone interested in the field, this post will provide valuable insights and information to help you stay ahead of the curve.

Talent and Cost Balancing Strategies for 2023

In conclusion, by implementing strategic measures to save labor costs, companies can maximize their savings and revolutionize their approach to managing their workforce. Embracing technology, optimizing scheduling and staffing, fostering employee engagement, and investing in training and development are just a few strategies that can drive significant improvements in productivity and efficiency while reducing labor expenses. By taking a proactive stance toward labor cost management, businesses can pave the way for long-term success and profitability in today’s competitive landscape. So, why wait? Start implementing these strategies today and witness their transformative impact on your bottom line and overall workforce management.

12/20/2023

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Oct 21 2022
Total Rewards: How to Find Compensation Strategies that Work

Raise your Company’s Engagement Index: Compensation Strategies That Work!

In today’s rapidly evolving employment market, it is imperative for organizations to place a strong emphasis on their compensation and benefits offerings to engage their existing workforce and attract prospective candidates effectively. Recent research conducted by the Society of Human Resources has highlighted the undeniable influence of compensation as a key determinant of job satisfaction among employees. A comprehensive and competitive package has a direct correlation with higher rates of employee retention and improved productivity. By minimizing turnover and fostering an environment of enhanced morale, productivity, employee satisfaction, and organizational culture, companies can optimize their financial resources and cultivate a more positive and flourishing work environment. So, what are the necessary steps that can help you raise your organization’s engagement index?

Find out what your employees want

Finding out what your employees prioritize will also help determine if your organization is in line with what employees are looking for to better capitalize on the funds utilized for compensation and remain competitive.

One method of determining your employees’ wants and needs is to distribute surveys among a wide variety of staff members. Alternatively, employers could coordinate interviews of focus groups to facilitate open discussion.

During this process, question what your employees’ value and account for variations based on different groups and demographics.

Do an Inventory of the latest Compensation Trends

Studies show job candidates and employees look for a key component: the compensation and benefits package.  In addition, several aspects that affect compensation can change over time, such as the size, revenue, or location of an organization or each employee’s role. Therefore, organizations must regularly review compensation and benefits to retain and attract employees. As you review the latest trends, highlight your comp and benefits program under a total rewards strategy. Employees may overlook the value of total rewards programs if they are not presented within the framework of a comprehensive total rewards strategy.

Leverage The Value of Your Employee Benefits

It is important to help employees better understand what benefits are offered to them in order to avoid dissatisfaction due to pay.  Once employees clearly understand their total compensation package, they will most likely focus on all the compensation and benefits offered. Remember, 40% of your labor costs are associated with your benefits package. The cost includes not only medical benefits but all employee insurance programs, time-off, pension, and mandated employer-related taxes

Develop A Strategy that blends your organization’s Culture and Value

Once recommendations have been accounted for, account for your organization’s values and pay philosophy.  Also, account for the return on investment and how changes could address attraction and retention.  Be prepared to act or explain why such benefits are or will not be offered.

Flexible Solutions

To stay relevant and reach a widescale workforce, it is recommended that your organization offers flexible benefits that are customizable to your workforce. For example, there are a lot of different options to choose from when it comes to selecting a benefits package.  Some options include health insurance, paid leave, retirement benefits, flexible scheduling, or tuition reimbursement.  Also, flexible work arrangements are highly priced by employees: They offer the flexibility and cost-saving options often sought by employees.

Top Performer Benefits

Lastly, consider adjusting your compensation strategy for top performers and those that exceed expectations to further incentive good behavior and increase attraction and retention.  Consider offering additional pay or an employee bonus. Employees are more likely to apply or stay at an organization that invests in their performance.

In conclusion, adopting a systematic approach to developing an engaged workforce can yield numerous benefits for companies. By implementing a well-defined process, organizations can create a culture of employee engagement that enhances productivity, fosters loyalty, and drives innovation. This process involves understanding employees’ unique needs and aspirations, aligning goals and values, providing regular feedback and recognition, promoting professional growth opportunities, and fostering a positive work environment. Investing in employee engagement improves job satisfaction and retention rates and directly impacts the company’s bottom line, as engaged employees are more committed, motivated, and willing to go the extra mile. By prioritizing the development of an engaged workforce, companies can position themselves for long-term success in today’s competitive business landscape.

10/15/2022

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Oct 5 2022
Pay Transparency Requirements in WA and CA

Resources to Comply with California and Washington Pay Transparency Requirements

Starting January 1st, 2023, CA and WA employers must comply with a series of measures designed to address pay comparability in the workplace. Blue Whale has prepared the following articles and guidelines to help employers better understand their obligations. For additional support, contact us today for a free, 30-minute consultation.

ACCESS: Blue Whale’s Guide for CA Employers

Our 2022 guide contains tips, regulations, and the latest information on Pay Transparency and the Fair Pay Act.

Covered Topics:

  • Fair Pay Act – Background
  • Proving Unfair Pay; Justification for Pay Gap Differences
  • Pay Transparency For Pay Equity Act, Senate Bill 1162
  • Posting Requirements
  • Data Reporting
  • Employer Resources
  • and more . . .

ACCESS: Washington Guide for Employers

Guide on the latest information on Pay Transparency Job Posting Requirements, WA

Covered Topics:

  • Employee Job Applicant Rights
  • Equal Pay, Definition and Guidelines
  • Career Advancement Opportunities
  • Open Wage Discussions
  • Pay Transparency Requirements
  • Employer Resources
  • and more . . .
Schedule a Free Consultation

CA Pay Transparency 2023 Legislation: The First 30 Days

After reviewing the first 30 days since 2023 pay transparency laws have gone into effect for California, Washington, and Rhode Island, we have put together an article to provide an overview of requirements for new pay transparency legislation and key findings for how companies have been interpreting and adapting to this legislation in the new year.

Article Access: “The First 30 Days”

CA Transparency Requirements – Senate Bill 1162

Beginning on January 1st, 2023, if your organization has 15 or more employees, you must include the salary range within your job postings and provide the pay scale to your current employees upon request. In addition, your organization must record your employees’ job titles and wage history during employment and for three years post-termination.

Beginning on May 10th, 2023, if your organization has 100 or more employees, you will be required to report to the Civil Rights Department annually the median and mean hourly rate for each of your organization’s job categories broken down by race, ethnicity, and sex. 

Penalties

Your organization must comply with California’s Pay Transparency Requirements or risk civil penalties of up to $10,000 per violation. *No penalty will apply for a first violation of the job posting requirement if your organization can show that all job postings for open positions have been updated to include the pay scale.

Your organization will face up to a $100 fine per employee if your organization fails to file the required reports. For subsequent failures, your organization may face a civil penalty of up to $200 per employee.

Reporting Requirements, California

Blue Whale Compensation can help your organization update its compensation structure and policy to manage compliance obligations.  In addition, we can help organizations with SB 1162’s reporting requirements.

Contact us today to schedule a free, 30-minute consultation.

Need a plan that satisfies Pay Transparency Requirements? Check Blue Whale’s Integrated Comp

Blue Whale’s Integrated Comp Plan includes the tools to best manage pay equity and compliance obligations under SB 1162 and SB 358, and Washinton’s new pay transparency requirements. It includes training, policy manuals, and implementation support. We recommend this to who are subject to Fair Pay and Transparency Requirements and to companies who wish to embrace their social responsibility towards equitable pay.

Want to learn more about our services? Let’s start the conversation

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Sep 15 2022
Beware: Gender Bias and Remote Work Alternatives

Gender Bias & Remote Work Arrangements

Since Covid-19, the workplace culture has shifted, and employees at record numbers are pursuing remote work opportunities. According to a survey completed by FlexJobs in March of 2022, 77% of its respondents chose remote work as the second highest priority for their total compensation package. The popularity, however, is not shared by the employer community, who often see remote work as a drawback to enhancing work group dynamics. Most recently, a number of articles and studies have also pointed out that the popularity of remote work arrangments and their benefit may impact men and women differently.

FlexJobs surveyed more than 2,100 people between March and April 2021 to gain insight into these new perspectives. These respondents either worked or were still working remotely due to the pandemic.

Among those respondents, 550 were men, and 1600 were women, and while males and females share some similarities in their remote work experiences, some differences were also noted. Among a number of findings, females were more likely to view remote work as a greater necessity than men.

From Positive

Given these differences in opinion, employers may want to review their plans and incorporate their policies’ impact, how they are likely to be interpreted between men and women, and how they may impact the company’s pay strategy.

Compensation Strategies for a remote workforce

As remote work becomes more normalized, employers should consider adjusting their compensation strategy. Addressing remote workers’ pay combats pay equities issues that may arise where employees are over/under-compensated. In addition, recruitment and hiring may become difficult depending on the region where the applicant lives. 

There are several strategies employers can take to address employees working remotely in several locations throughout the country.

Pay based on location

There are several approaches an organization can take to pay their remote staff based on location:

  • Set a pay scale based on the location of the main or corporate office.  If multiple offices exist, assign your staff to the pay structure nearest their remote work location.
  • Pay is based on the pay zone that each employee lives closest to.  Utilize a tiered US salary range. Take US national data and adjust based on the area. Add a 10 percent premium to employees who live in the five major metro areas, which include the District of Columbia, Los Angeles, Seattle, Austin, and Boston. Add a 15 percent premium to San Francisco and New York City employees since they live in a location with the highest cost of living and labor. 
  • Utilize national data to set pay levels.  This is recommended if the cost of living is similar to the national average. 

Performance Based

Consider paying your staff based on their role and level of experience rather than their location.  Pay should be based on job responsibilities and capabilities.

To accommodate this structure, a matrix can be developed to account for growth and the level of experience and skills.

Carve-Outs

Some jobs are in high demand and may be more critical than others.  Consider carving certain classifications and setting a different pay structure for those groups so that they can remain competitive.

Equitable Pay

Employers need to communicate and document reasons for pay decisions due to remote work or performance, and employees need to be mindful of anti-discrimination laws to ensure that workers, including those within a protected class, are compensated equitably.  

Define What Works for Your Organization

It is important to define your pay philosophy and structure clearly and what makes sense for your organization to help guide expectations.  In addition, a competitive compensation philosophy can help attract and retain your workforce.

Also, consider the cost and administrative implications.  For example, the financial impact for smaller organizations can be greater than a Fortune 500 company. 

In summary,

As you navigate the societal issues around remote work, gender differences, and your organization’s needs, keep in mind that equality benefits everyone.

Courtney Geduldig of S&P Global summed it up best when she explained that “one of the biggest misconceptions about gender equality is that it only benefits women, but the data shows that this is not true.” 

With companies focusing on recovery efforts following a pandemic, gender equality may recede in priority. Other priorities will inevitably emerge, but eliminating discrimination should never be put on hold. 

By being proactive and aware of imbalances, businesses can become leaders against gender discrimination in all workplace settings.

8/5/2022

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