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

JPG_Admin 0 Comments
Jun 30 2022
Quiet Quitting: A Trend or an Ignored Reality?

What is Quiet Quitting, and why are employees doing it

Quiet quitting occurs when an employee abandons the effort to go above and beyond work expectations and only performs the minimum essential requirements of their job.

Employees assert their control and choice and begin setting boundaries and refuse to do work outside work hours. They shift priority towards focusing on maintaining their health, well-being, relationships, and activities outside of work.

Social Media and Quiet Quitting

Most recently, quiet quitting has been given a label and has become more dominant. Quiet quitting has dominated social media, primarily on Tik Tok. Millennials and generation z have been actively posting videos on the topic, and several of them have become viral, which has triggered a lot of commotion.

Economic Impact

There is currently a tight labor market. Employees may feel like it’s easy to obtain alternative employment; therefore they have the power to renegotiate the terms of their employment contract.

Impact on Employers

Other states, including New York, Colorado, and Washington, have moved towards requiring employers to disclose the pay scale within their job listings. California is now setting a groundbreaking precedent by adding an additional layer of transparency. California is the first jurisdiction to require employers to distribute payroll data based on the demographics of the organization.  This new requirement intends to address pay equity and ensure no pay disparities.

Steps Employers Can Take to Combat Quiet Quitting

Employees are redefining work, and companies can begin to understand and reassess their current workplace practices or continue to see more turnover and decreased productivity. Quiet quitters have left employers no option but to take what employees say more seriously and assess why they are resigning or quietly quitting their jobs.

Address Employee Burnout

Employees who feel overworked or not valued can become burned out, leading them to quit or leave the workplace quietly. 

Creating a reasonable amount of work for them to complete is key to setting them up for success so that they are set up for success. Review their performance and productivity levels regularly, and if they start to slip, ask how you can help.

Offering paid time off and creating a culture to encourage employees to take it is another way to reduce burnout.  This will allow your employees time to recharge and come back more productive than ever.   

Bring Back Personnel Connections

Your employees naturally want to feel connected, and a lack of connection can affect your employee’s well-being, productivity, and retention.

Establish a pattern of touching base with employees at least regularly and ask how they are doing and how you can help.

Initiate Team Building Activities

Team building activities can be fun and encourage open communication, build stronger relationships, and build trust.

Don’t know where to start? Host a brainstorming session, encourage employees to participate in a fitness challenge, or host a virtual happy hour. 

Show appreciation

Every employee wants to feel appreciated for their hard work. In addition, appreciation can generate confidence and enthusiasm for the work they do.  Show appreciation for the great work that your employees have done.  It could be something as simple as verbally expressing gratitude or you can take a step further and delegate an award such as extra time off.

Increase Flexibility

Flexible is in high demand.  Providing flexible work could lead your staff to have higher job satisfaction and productivity which in turn could benefit your organization.

There are many forms of flexible work including telework, job sharing, condensed schedule, and part-time employment.

Several employers worry that their staff will underperform with a flexible schedule. To ensure that your staff is meeting expectations, set deadlines and regularly check in with them.

In conclusion, quiet quitting is a complex issue requiring individual and organizational attention. Organizations can foster a more engaged and productive workforce by understanding the reasons behind quiet quitting, recognizing its consequences, and implementing proactive strategies to prevent it. Through effective leadership and a commitment to creating a positive work environment, the prevalence of quiet quitting can be reduced, leading to increased job satisfaction and overall organizational success.

July, 2022

JPG_Admin 0 Comments
May 16 2022
Pay Transparency Trends (Legal and Social)

New Rules on How Employers Manage Their Compensation Program

As employees begin questioning their pay, while pay transparency continues to grow in popularity, employers are scrambling to defend their pay practices.

Salary information is becoming more available formally, through legislation, and informally, through social media posts. Employees now have the valuable information to leverage conversations with their managers and challenge current compensation. 

States are beginning to require the publication of salary ranges for all classifications. Some examples of the trends in the legislation include:

  • CA Equal Pay Act – Employers cannot ask about the previous salary and must disclose pay ranges if asked during an interview
  • CO Equal Pay for Equal Work – Employers must include salary ranges and benefits information in every job posting as well as disclose promotion opportunities and keep track of job descriptions
  • NY – Employers must post maximums and minimums on all job postings or promotions by November 2022 (extended from May 15th) 

More casually, there is a societal shift to make salary information less taboo. Coworkers are no longer ashamed of sharing how much they make in the company. A poll conducted in 2022 by YouGov Plc found that of their sample of 2,500 adults, 42% of Gen Z workers, ages 18-25, and 40% of millennial employees, ages 26-41, have shared their salary information with a coworker or other professional contact.

Many companies are not prepared to discuss the warrants for current salary ranges and are left with unhappy employees who still have pay concerns. Payscale has reported that employees are 50% more likely to leave if they think they are being paid below market, even if they aren’t. Some 57% of people paid at the standard market level believe they are underpaid, and 42% of those paid above the market think they are underpaid. This highlights the value of a compensation study where you can provide employees the ease of mind that they are being compensated based on their talent and skills in a competitive organization. 

Blue Whale 0 Comments
Apr 14 2022
Top Employer Concerns in 2022: Pay Transparency and Employee Benefits

2022 Top Compensation Trends

Pay Transparency Trends

As employees begin questioning their pay, while pay transparency continues to grow in popularity, employers are scrambling to defend their pay practices.

Salary information is becoming more available both formally, through legislation, and informally, through social media posts. Employees now have the valuable information they need to leverage conversations with their managers and challenge current compensation. 

States are beginning to require the publication of salary ranges for all classifications. Some examples of the trends in the legislation include:

  • CA Equal Pay Act – Employers cannot ask about the previous salary and must disclose pay ranges if asked during an interview
  • CO Equal Pay for Equal Work – Employers must include salary ranges and benefits information in every job posting as well as disclose promotion opportunities and keep track of job descriptions
  • NY – Employers must post maximums and minimums on all job postings or promotions by November 2022 (extended from May 15th) 

More casually, there is a societal shift to make salary information less taboo. Coworkers are no longer ashamed of sharing how much they make in the company. A poll conducted in 2022 by YouGov Plc found that of their sample of 2,500 adults, 42% of Gen Z workers, ages 18-25, and 40% of millennial employees, ages 26-41, have shared their salary information with a coworker or other professional contact.

Many companies are not prepared to discuss the warrants for current salary ranges and are left with unhappy employees who still have pay concerns. Payscale has reported that employees are 50% more likely to leave if they think they are being paid below market, even if they aren’t. Some 57% of people paid at the standard market level believe they are underpaid, and 42% of those paid above the market think they are underpaid. This highlights the value of a compensation study where you can provide employees the ease of mind that they are being compensated based on their talent and skills in a competitive organization. 

Benefits Trends

Total compensation is more than just cash; it’s the entire package that includes benefits available for employees based on budget. Companies are getting creative to make sure their employees perceive a good work/life balance. With changes in work models, like remote or hybrid arrangements, we are also seeing more companies jumping on the trend to offer unlimited time off.

The United States is the only developed country with no federal law requiring employers to offer paid holidays to employees. But companies are still trending to achieve work-life balance through this new perk: Unlimited Paid Time Off. While this is a debated topic, with people worried that this may be a trap to keep people constantly thinking about work, a recent study shows that 82% of employees that have unlimited PTO have the best rates of work-life balance. Competitive PTO (limited or unlimited) is more than just a mechanism to attract and retain top talent. These packages make business sense, especially for companies prioritizing innovation where we are looked at as a model to set expectations for productivity. To do good work, people must take care of themselves. Recovery is a lifestyle practice making its way into industries where creation and innovation are the organization’s backbones. 

If you’re looking to expand your benefits program, we welcome you to get inspiration from the list below for the most popular benefits and perks to include in your plan. We have compiled these options for you to consider as you continue to build your employee engagement.

Consider These Benefits Trends:

  • Flextime and Work-at-Home Options
  • Flexible holidays
  • Commuter Assistance
  • Performance Bonus
  • Vacation reimbursement: one-time bonus to use while taking time off
  • Healthy Cafeterias and Snack Machines
  • Home Office Stipend
  • In-office Career Development
  • Wellness Facilities and Support
  • Annual Learning Stipends for participating in industry certifications, seminars, or classes
  • Generous Parental and Caregiver Leave
  • Volunteer Time Exchange
  • Free Desktop Music
  • Personal Care Services – Bring in a stylist once a month for haircuts or try dry cleaning drop off
  • Discounted Access to Company Products/Services
  • Stock/Stock Options/Equity
  • Gym membership
  • Insurance coverage for you and your dependents

Affirmative Action Planning

With federal and state agencies prioritizing pay equity, you must identify, study, and address potential areas of vulnerability and help your pay system achieve your goals for equity, competitiveness, and compliance. This Risk Analysis is a report designed to provide clients a gateway to viewing potential pay equity liabilities across multiple tiers by leveraging comparisons by job title, job group, experience or seniority, and EEO category.

In our efforts to help organizations achieve pay equity and move closer to establishing equal pay for equal work, Blue Whale has launched Blue Whale AAP. Our Affirmative Action Planning supports government contractors and any business that wants them as a customer to stay in compliance with federal regulations easily.

This methodological process starts with data cleansing and your workforce activity data reconciliation. From this, we plan development, data system coding, reporting, and monitoring your hiring, promotion, and termination practices. Next, we develop an Adverse Impact Analysis to do potential bias testing in your HR practices to ensure we have the most accurate narrative.

Learn more

4/14/2022

JPG_Admin 0 Comments
Apr 11 2022
Latest News in Pay Transparency and Minimum Wage Increases
Home » Workplace Trends » Page 2

Pay Transparency and Minimum Wage Increases: Are You Prepare to Meet the New Challenges?

If You Post A Job, You Must Post A Salary Scale

Starting in May and following a national trend in other major U.S. cities, New York City’s employers will be required to post salary ranges in their job postings. The law exempts temporary staffing firms as they provide this information to potential candidates. The legislation, meant to help correct pay inequities and discrimination, will make it unlawful not to include in job listings the minimum and maximum salary offered for any job in New York City. The range for the listed maximum and minimum salary would extend from the lowest to the highest salary that the employer, in good faith, believes it would pay for the advertised job, promotion, or transfer. Other municipalities are likely to follow as the law is a more significant trend toward pay transparency.

View a List of Cities Requiring Posting Salary Ranges

Pay Equity Efforts in the Public Sector Suffers a Setback

In a setback to proponents of workforce progressive policies, a law requiring board quotas from publicly traded companies with HQs in CA was declared unconstitutional. The law, Assembly Bill 979, signed in 2020 by Gov. Gavin Newson, set forth to increase boards’ composition by requiring publicly traded companies to have board members from underrepresented communities, including people of several races and ethnic groups and people who identify as gay, lesbian, bisexual or transgender. Proponents of the law argued that adding underrepresented groups to the board would aid racial and justice equality in the workplace. However, Judicial Watch, a D.C. nonprofit conservative advocacy group, filed a lawsuit in 2020, arguing the law’s racial, ethnic, sexual preference and gender-based quotas violated the state’s constitution’s equal protection clause. In response, Los Angeles County Superior Court Judge Terry Green ruled that the law violated the state constitution.

Learn More About our Pay Equity Services

Gender Pay Equity – Trending in the Wrong Direction

An initial analysis of proxy compensation disclosure by Equilar, a firm specializing in data-driven solutions for business development, board recruiting, and executive compensation, suggests that gender pay gaps increased in 2021, and in doing so, the gains recorded in 2019 and 2020 have essentially disappeared. According to an initial review of proxy statements relative to 2021, the median pay for women CEOs in the Equilar 500 was $11.8 million, or 18% lower than the median $14.5 million awarded to men. The initial figures seem to follow a two-year compensation difference between men and women. In reviewing past proxy information by gender, data suggests that the average pay for women went from $12.2 million in 2019 to $11.8. The average compensation for men has moved from $12.2 to $14.5 million for the exact period. Even though public and private companies work to adopt pay equity policies, the conversation around gender equity will likely grow louder. Also, this may activate boards and regulatory agencies for measures to minimize the gains achieved in the last few years.

Minimum Wage To Increase, Again, In Parts of Los Angles County

In time for most companies’ budgeting season, companies in the unincorporated part of Los Angeles County and the City of Los Angeles will need to manage another new round of increases to their minimum wage scale. The minimum wage in unincorporated LA County will be increasing from $15.00 to $15.96 per hour on July 1, 2022. The ordinance applies to employees who work at least two hours a week within unincorporated areas of Los Angeles County. The minimum wage in the City of Los Angeles will increase from $15 to $16.04. The wage scalation index, tied to consumer prices, and part of the City’s effort to curb poverty, has spiked considerably over the last few months, pushing the City to boost hourly rates above those in the County. This latest increase is a continuation of the annual increases that began in 2016 and now apply to all employers regardless of employee count. The minimum wage will continue to increase each year on July 1 based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.

Learn more

March 14, 2022

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