HR Workforce Solutions
By Nonprofits, For Nonprofits
Just two decades ago, jobs were for life – even if you hated yours. Offices were often dark and dingy, promotions were rare, there was no such thing as ergonomic desks and even smoking was allowed indoors. Today, not only are office spaces bright and more cheerful but many companies are now offering the option to telecommute. There are also more efficient systems in place, better laws protecting employees and far better benefits than ever before. And let’s not forget the in-house gyms, team building excursions, methodical review processes, and the boundless opportunities to grow. So what gives? Why are so many U.S. workers unhappy at work?
Job misery can have a devastating impact on individuals, and their employers. Nowadays, there are countless studies surrounding the decline in employee engagement – Gallup, Randstad and Mercer, the list goes on. Gallup has been measuring employee engagement in the United States since 2000 and finds that a whopping 77% of workers say they hate their jobs. Many report feeling no real connection to their work and state they are growing to resent their employers. Randstad has found that disengagement leads to some pretty bad habits – workers admitted that while on the job, they drank alcohol, took naps, checked or posted on social media, shopped online, played pranks on co-workers, and/or watched Netflix. The pressures modern day workers are clearly causing employees to feel burnout which is a natural reaction to stressful environments, or long workdays, but job dissatisfaction at this level usually occurs after long periods of unresolved issues.
One of the biggest problems seems to be having the wrong management in place. When the wrong person is hired or promoted to a management position, nothing fixes that bad decision. Not compensation, not benefits – nothing. When employees feel that their manager has little to no interest in them as human beings – their personal lives, their aspirations and their interests, especially at work – there is bound to be job misery. If you start typing “my boss is” into the Google search engine, you get options that include “crazy”, “lazy”, “bipolar”, “abusive” and “a tyrant”.
If you do the same Google search for “my job is”, it reveals a rather bleak outlook of life in the office by finishing your sentence with “killing me”, “stressing me out”, “ruining my mental health” or “draining my soul”. Those are some pretty strong comments and cause for concern. Most alarming of all – if you type “my job is stimulating”, Google assumes you have made a typo and suggest you must have meant “not stimulating”. Workers also feel they are expected to “do more with less” – blaming business owners who aren’t willing to expand their budgets to hire more people or provide better compensation to those already in place. Losing your best people because they’re stretched too thin can be costly so many employers are getting creative. Benefits can come in many different forms – ranging from flexible hours, stipends for commuting, increased vacation time or robust development programs.
It’s important for employers to be aware of these situations, evaluate if they’re a sign of a larger issue and identify what they can do to help. Workers crave development, advancement and purpose and when they don’t’ have it, they will move on.
On Monday, CNN Money published an in-depth review of government overpayments within the UI system and their findings. Although the findings do recognize the value of UI benefits to those receiving them properly, improper payments are simultaneously distressing for those who oversee limited budgets and work on shoestrings.
Digging through reports from the U.S. Department of Labor, the Campaign to Cut Waste, and individual state records, CNN found that an estimated $14 billion in benefits were paid out improperly during fiscal 2011. That’s more than 10 percent of all the jobless benefits paid out last year.
But some states did far worse than the national average. For instance, in Indiana, which has become known for bad spending habits, more UI payments made were made in error, or improperly, than were made correctly. Indiana actually made more improper payments than proper payments…to the tune of at least $1,743,109,894 over the last three years.
The blame doesn’t only fall on one or two states though. Unemployment Insurance has the second highest rate for improper payments of any federal program.
But, finally, something is being done. Sort of. A little bit.
The U.S. government and many states are trying to recoup their losses and avoid future overpayments.
CNN found that the majority of the UI benefits improperly collected go to check cashers who either aren’t actively searching for a job, were fired or quit voluntarily, and those who continue to file claims even after they’ve returned to work.
Although people do deliberately defraud the system and use fake documents or identities to collect benefits, the current focus is on establishing preventative methods to recover the money that has been lost.
The crackdown won’t help your nonprofit though.
Despite nearly half of all improper payments being deemed “recoverable,” the money will be returned to the federal government. There is no indication that the money will be returned to the employers who were overcharged, or that they’re tax rates will be positively affected by the discovery of errors.
Only a quarter of the estimated actual recoverable payments have been recovered so far. For the most part, when the government discovers someone was overpaid, it often issues a letter asking the claimant to return the extra funds. But the repayment can be waived in many states if the UI beneficiary can show that they’re in financial distress and didn’t actively intend for the error to occur.
Stellar recruiting and retention strategies are key to a nonprofit’s growth, but sometimes those solutions do not align with budgets. With the increasing rate at which talent moves through the nonprofit sector, it’s more important now than ever to reinvent the wheel when it comes to investing in employees.
There are more and more people seeking to serve a higher purpose and one of the ways they see to accomplish that is to grab an opportunity to craft a mission-driven career. If the nonprofit sector can’t demonstrate that they offer viable career opportunities within a strong organizational culture, they will miss the chance to cultivate future talent. The biggest talent acquisition challenge nonprofits face is limited budgeting but it’s important to remember that at the end of the day it’s the people that fuel the nonprofit sector – not just the donors and the volunteers but most importantly, the people who work for you.
Gaining a better understanding of how the leaders in your organization think about the development of talent, will allow you to start aligning those ideas with the overall goals of the business. Focus on your assets and what opportunities as a whole your organization has in its sights and commit to those aspirations by investing in the people. Creating an effective workplace isn’t just about compensation. Employees consistently rank company culture, leadership, career growth and work-life balance right up there with pay. The act of investing in talent sends a clear message that the company values its people by increasing morale, performance and retention.
You can make gradual improvements and see major results. Here are some things to consider:
It doesn’t hurt to also consider how much philanthropic capital is routed to talent efforts? Review where your donors dollars are going and make a case to shift some of those funds if there is currently no talent investment already set up. Grantmaking needs to intentionally invest in talent to keep top talent engaged and start Initiating conversations regarding the value of employee retention.
People are the most important asset—driving impact, performance and sustainability in the sector. No matter your nonprofit’s budget, you can have a strong organizational culture even in this time of uncertainty and budgetary struggle. And in fact, if you hope to advance your mission, you must make these types of changes. Take the time to invest in your teams and systems to stay ahead of the talent curve.
Transportation benefits can be a great employer-incentive to offer employees. Whether it be for public transit or public parking—these benefits can be paid to a 3rd party transit or parking company or directly to employees. However, due to the latest federal legislation known as the Tax Cuts and Jobs Act, employers may no longer deduct transportation fringe benefits as their own deductible business expenses. When it comes to nonprofit employers that provide this benefit, they are required to report and pay the tax on the value provided as taxable “unrelated business income.”
So what specific impact does this act have on nonprofit employers? This Act requires an unrelated business income tax “UBIT” on nonprofit organizations for providing transportation fringe benefits. If a nonprofit employer uses some of its revenues to pay for employees’ transportation benefits, then such revenues will be taxed to the employer. In addition, these nonprofit revenues would not otherwise be taxable, given the nonprofit’s tax-exempt status. This change is meant to level out the employer tax—providing more of a unity between taxable and non-taxable employers in terms of taxable income to the employer.
A UBIT is the income a 501(c)(3) nonprofit organization can generate from a trade or business that is commonly carried on by the organization and is not related to the organization’s exempt purposes. Prior to the Act, a 501(c)(3) nonprofit organization’s unrelated business income was subject to a tax rate determined under a marginal rate structure in which the lowest tax rate was 15% and the highest tax rate was 35%. This Act removes this marginal rate structure and offers a flat rate of 21% on unrelated business income. With that being said, a 501(c)(3) nonprofit organization’s expenses related to the provision of qualified transportation benefits will now be subject to the flat UBIT rate of 21%.
For the nonprofit sector, treating transportation fringe benefits as unrelated business income will likely result in new reporting and potential tax liability implications. Also, the IRS has not provided any specific instructions on the estimated payment requirements for taxes associated with transportation fringes. Until additional information is given, it would be in the organizations best interest to follow current standard procedures for tax payments that are associated with Form 990-T.
According to global research about hiring trends published by Development Dimensions International (DDI), half of new employees report that they are experiencing buyer’s remorse after accepting a recent job offer.* But new employees aren’t the only ones rethinking their employment.
Many employers surveyed also reported that they are questioning whether they have made wise hiring decisions, with 1-in-8 new workers employed during a 12-month period having proved to be a “bad hire.”
When staffing directors were asked what the top reasons for hiring mistakes were, nearly one-third of respondents blamed an over-reliance on hiring manager evaluations, while only 21 percent pointed to candidates that had oversold their skills.
And because interviews are one of the best ways to determine how a potential candidate will perform in the role, bad interviews can be poisonous. But only 1-in-3 staffing directors feel that their hiring managers are skilled at conducting high-quality interviews, or are satisfied with their company’s training program for interviewers.
In better news, further research revealed that just over half of all new hires would rate themselves as confident in their decision. Delving deeper, many of those who reported a lack of confidence found that the hiring process had failed to paint a realistic picture of the job, department and company they are now employed by.
On the other hand, in companies where the hiring process yielded an accurate portrayal of the job, company, and department, new hires were far more confident in their decisions, less likely to immediately begin scanning job boards, and highly engaged with the job and their workplace.
So what’s the best way for a nonprofit to address these concerns?
Well-trained hiring managers, realistic portrayals of what the position is really like, and good interviews!
Read more about the research by DDI International at SHRM. And come back tomorrow for Part 2: Hiring Tips for Managers and Making Your Interviews Work.
If your organization is considering having an audit for the first time or changing auditors, it is wise to exercise due diligence when obtaining bids for services. With the continued focus on transparency and accountability by government agencies, donors, parent organizations and the general public, the selection of a qualified certified public accountant (CPA) has become increasingly important.
Quality audit and accounting services help nonprofit organizations safeguard their assets; improve internal controls and efficiency; complete timely and accurate returns to comply with federal and state regulatory filing requirements; and stay on top of regulatory requirements, accounting standards and industry best practices.
Before you request bids, your organization needs to answer a few key questions:
Gone are the days of calling a couple of CPAs to say, “Give me a bid,” and reaching an agreement with a handshake. Today’s organizations need to be conscientious about their selection of a CPA. Conducting a diligent and thorough selection process not only satisfies key stakeholders, but ultimately helps protect the organization.
Barry Omahen, CPA, is the Managing Partner of Lindquist LLP, a certified public accounting firm specializing in audits of not-for-profit organizations and their related employee benefit plans. Barry’s chief responsibilities include supervising Lindquist LLP’s day-to-day operations and the firm’s quality control review process. Email Barry at bomahen@lindquistcpa.com.
Stephanie Kretschmer, Marketing Manager, helps the professionals in Lindquist LLP’s four West Coast offices attract and retain clients. She oversees firm communications and has responded to hundreds of requests for proposal in her career. Email Stephanie at skretschmer@lindquistcpa.com.
To learn more from Lindquist’s nonprofit-focused CPAs, watch the recorded webinar: “Beyond the Numbers- How to Review your Organization’s Form 990.”
Have you ever considered different ways to engage your employees at your nonprofit? High performing companies like Google, Zappos, LinkedIn and other organizations have found a way to have both high productivity among their employees along with profitability and it’s all due to creating a fun work environment. When looking at these highly successful companies, they have been able to incorporate fun into the foundation of their culture. While having fun at work may not produce results on its own, it will make your nonprofit organization stand out among your competitors and spark the interest of future employees who are looking for new employment.
Prioritizing fun in the workplace can have a direct impact throughout your organization in ways that you may not expect – such as organizational health. Fun at work can be used to encourage participation amongst employees, making them want to engage in wellness programs. Productivity; fun can offer your employees a break or distraction from everyday tasks, creating valuable break time. Engagement; when employees are engaged they tend to be more enthusiastic about their work.
Many workers have a tendency to imagine the ideal work environment and can’t seem to shake the idea that there’s always something out there that is a better fit for them. This can make employees only look at the flaws of their current work environment rather than seeing its potential. Discussing such concerns with your manager and/or leadership will help them better understand the issue at hand and work together to create a fun workplace.
While fun at work can build solidarity, connections and an outlet for workplace stress, the BIG question is… how do you get started? Since this is a cultural change, no one single event or two can single handed lee change a work environment. You can begin by assessing your culture. Ask yourself if you see how the value of fun can fit and then explore how the fun can become a part of your operations. The next big revolution in the working world is focusing in on culture.
Sedia ruled the law incorrectly forces unions to represent workers who don’t pay union dues.
Read more about the fight, and what experts from all sides of the fight predict will happen, here.
While it is true that American organizations are one of the top most productive business sectors in the world, lack of vacation will inevitably lead to poor physical and mental health, as well as increased turnover rates. Vacations are imperative to maintaining vitality and work ethic throughout the office—increasing both productivity and happiness with one’s job and others.
With 61% of employed Americans expecting to work during their summer vacation, it’s no wonder many employees lack enthusiasm when planning their vacation time. Here are some prevalent work-related activities vacationing workers often find inevitable:
Developing stress prior to, during, and after vacation, due to interrupted work flow and lack of routine, many workers fail to recognize the positive effects vacation has on one’s work.
Use these methods to make vacations relaxing and work-free:
Vacations are crucial to a worker’s sanity and general attitude towards the workplace. Though it’s tough to step away from the computer and turn off the smartphone, time away from the office will provide you much needed rest, and the break you deserve. Vacations are what help employees remain satisfied with their jobs, in turn keeping organizations competitive and successful.
Learn more about vacation and work time here.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
Tuesday, October 22nd, is the deadline, set by Federal law, for all 50 states to enact their own UI Integrity legislation. But will all 50 states actually be compliant? Well, probably not.
As of this publication, 22 states, and D.C., have not yet passed any legislation in relation to Sec. 252. (Neither has Puerto Rico or the Virgin Islands.) Of those, only 7 have pending Sec. 252 compliant UI integrity legislation.
Sec. 252’s mandate required states to require employers to respond in a timely and adequate manner to all state requests for UI benefit information in order to reduce improper payments. If an employer fails to respond in a timely or adequate manner, it becomes the employer’s responsibility to pay for either part of or all of the improper payments made to claimants.
Nonprofit employers participating in the state UI system can opt out of paying their state unemployment taxes and instead directly reimburse the state for the dollar-for-dollar cost of benefits paid to their former employees. By participating in the Unemployment Services Trust (UST) nonprofits with choose to directly reimburse the state have added help in ensuring that all communications are timely and adequate– but should a claim have to be tried, expert hearing representatives aid our members in presenting the best witnesses and evidence available.
Read more about your state’s legislative actions here.