You probably already know that nonprofits generally work with lower budgets than large corporations, especially when it comes to employee benefits and perks. That means you must make your nonprofit appealing to job seekers in other ways. This is the time to deploy your creative genius and stand out in the employment marketplace. The global pandemic put just about everyone through a life-altering experience. And as a result, many career trajectories are changing. Seize the opportunity to offer something attractive that will improve their quality of life, enriching them in ways that go beyond dollar signs—and it must be more than your mission.
Offered in many shapes, the employee benefits package has kept its golden status as a form of compensation that goes beyond wages to draw job seekers. Often referred to as perks, the varied benefits included are special and not offered by all employers. You should begin by re-examining your basics to see if you’re already offering any of the following:
When you must work with a limited benefits budget, it’s crucial to choose only the benefits that your employees will care about. Clearly, most workers need help with healthcare costs. If your nonprofit is small, and you don’t provide a group health insurance plan, consider offering a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) — an affordable way to help defray your employees’ healthcare costs. The pandemic left many Americans in debt and reducing these expenses will help reduce their risks of financial devastation. Even before the pandemic, millennials struggled with deficient wages, affordable housing shortages, and outrageous student debt. They already make up the largest segment of the workforce, so whatever you can do to help them with essential expenses will be appreciated.
Financial Tools That Help
Americans are recovering financially, as the economy revives, though it breaks along socioeconomic and racial lines. About 60% of White and Asian adults report that their finances are in excellent or good shape. By contrast, about two thirds of Black adults and nearly 60% of Hispanic adults report that their finances are in fair or poor shape. Roughly half of non-retired Americans say the economic consequences of the coronavirus outbreak have made it harder for them to achieve their financial goals moving forward. These employees need your help managing their budgets. Consider the following tools for this purpose:
Nearly 86% of workers between 22 and 33 years old say they would commit to an employer for five years if the deal included student loan assistance. Encourage loyalty with a monthly payment that helps reduce their debt.
With so many members of the American workforce continuing to work from home, you should also consider helping to defray their communication and efficiency costs. Offer a corporate cell phone plan or give them one to use for work. If you’re not already doing this, it’s time to cover the cost of upgrading their internet speed.
Party Heart-y
And one virtually free method of supporting your staff with joyful memories is to ask employees to recognize each other. Co-workers feel highly motivated to earn the esteem of their peers and will network better, gaining newfound appreciation for their teammates, as they seek reasons to recognize each other.
Seize the opportunity to go over the top by coupling it with a seasonal party event. Serve in-season snacks, such as cocoa for winter, and warm each other’s hearts with your very own mutual-admiration society.
Virtual Team Building
If your staff is now working remote, you can find virtual events to enjoy online. Many types of fun shared experiences await, from game shows to virtual escape rooms, virtual tropical beach gatherings, online shared puzzles to solve, trivial challenges, and more. Your team could be lounging on a virtual tropical beach together. Just a few clicks away! If your budget doesn’t allow for a third-party provider, simply visit Google Earth, and plug in far-away cities, then share the domain and enjoy virtual travel together! Wander the streets of Italy’s Positano or a Japanese fishing village. The opportunities are global!
Experience Success
Whether your employees enjoy them at home or someplace around town, experiences are the hot new perk. Even before the pandemic, Millennials had developed a reputation as seekers of experiences rather than accumulators of goods. That’s not to suggest ignoring their monetary needs; they still have student loans and other high costs disempowering their buying choices. But prior to COVID-19, HR teams were already searching for emotionally impactful activities that could act as bonus incentives. And Millennials largely took them up on experiences that boosted a sense of interpersonal contact and community.
The pandemic galvanized this mindset and spread a desire for recreation to all workforce generations. Of course, the sporadic need for social distancing has complicated fulfilling desires for contact and community. So, be sure to include engaging experiences that they can enjoy from the safety and comfort of their homes. Some companies offer memberships in Peloton or virtual leadership coaching. It could be something fun and relaxing like an in-home cooking class or even a meal prepared by a private chef. Or it could be hiring professional respite care for an elderly family member so that the employee can enjoy a break from routine. The limit to this is your creativity and the dreams of your workers. The truth is, an experience given as a gift or reward is more personal than a gift card or bonus check. Look to provide moments of connection, even if it requires using digital tools to deliver them. Online platforms offering curated activities as incentives are available, and employees can even choose what is most meaningful to them. The menu options are abundant and worth considering. As the nation reopens, many more opportunities will become available – from tours to scuba lessons. Whatever the offerings, each activity celebrates the person who works on your team and will build your employer brand to new levels of success.
Set Up Your New Employee Benefits Packages
Now that you’ve considered the new possibilities, you’re ready to leap in, right? Of course, setting up a new employee benefits package will take some expertise. But you should allow your creativity to provide foundational ideas that will build the package of your employees’ dreams. It’s an opportunity to stand out. First, however, you need to know these startling facts:
• A full 40% of US employees report that their employer is not currently offering employee benefits programs that help.
• An impressive 69% say that having a wider array of benefits would increase their workplace loyalty.
• A frightful 32 million members of the US workforce don’t receive paid sick time off, which is especially horrifying to note in pandemic times.
Of course, there are some basics: Many employers offer life insurance, retirement plans, overtime pay, and PTO or sick pay. The US federal government does require larger organizations to offer medical benefits and unpaid family leave to full-time employees. Some states add to this. Beyond that, benefits are an ideal way to serve budget-conscious nonprofits in the current job market. Excellent benefits that are affordable for an organization can incentivize employees to stay longer despite lower cash wages. Lower turnover saves your nonprofit as well. A great benefits package can build workforce loyalty and push your team toward greater success with your nonprofit’s mission.
Be Their Best Friend’s Best Friend
For something truly unusual, offer a paid day off for a staff member to bond with her newly adopted puppy or kitten, offering to send a treat for rescued pets. Some nonprofits offer subsidized or group-rate pet insurance as an option. The most affordable option may simply to offer a pet-friendly office space for worksite employees. Take precautions to protect employees with allergies and specify the kinds of pets that are allowed, normally well-behaved dogs. Some organizations bring in animal therapy to help de-stress their staff. When a puppy makes the rounds, he’s always followed by a lot of smiles. These benefits aren’t too common, so you’ll make your brand stand out by offering furry wellness perks.
Expand a Popular Offering
What’s better than PTO? Extended PTO! Look into stretching paid time off to include some half-day Fridays. Every other week, staff members who have their assignments completed on time can take the afternoon off, paid. The benefit supports mental wellness with extra-long weekends to rest and relax—some companies offer unlimited vacation time. Even if you only offer these time-related benefits during summers or perhaps on a once-monthly basis, it could keep your staff motivated and excited about employment at your organization.
Perks Work!
The good news is that most benefits you select can be customized to suit your budget, workforce, and nonprofit culture. Business strategist Kenichi Ohmae said, “Rowing harder doesn’t help if the boat is headed in the wrong direction.” If you’re offering the wrong benefits, or you’re trying to find other means of remaining competitive in today’s tight job market, it’s time to consider a new direction in benefits packaging. Ask your staff about their dream rewards, come up with creative offerings that speak to those dreams, and then share the news with everyone.
This is an excerpt from UST’s eBook, “Workforce Management Tactics that Strengthen Nonprofit Brands” in collaboration with Beth Black, Writer and Editor.
Question: We’ve seen a lot of turnover lately. Do you have any tips for increasing retention?
Answer: Employee retention is one of the most difficult and expensive challenges faced by business owners, managers, and HR departments. Fortunately, the keys to retention are simple and straightforward, though certainly easier said than done. The following three practices are essential:
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Studies in 2016 by both SHRM and Nonprofit HR showed that nonprofit workers resigned from their jobs at the same rate as for-profit workers — both at 19%. This myth-busting truth surprised a lot of nonprofit leaders at the time. And now with the pandemic, it’s continuing on a larger scale. The Great Resignation has created an intense employee-employer job shuffle, where lower-paid workers are quitting their jobs for the financial rewards of corporate careers. Meanwhile, higher-paid workers are leaving those jobs in search of more meaningful work.
Nonprofits Feel More Turnover Pain
There are reasons why it seems like nonprofits lose more employees. The truth is nonprofits often feel the pain of employee loss more than corporations — even when the same number of employees are leaving — simply because they tend to lose institutional knowledge that was never properly recorded due to a lack of infrastructure. Who in your organization knows critical donor information? Is it accurately recorded for posterity? Protecting your nonprofit from this type of loss could mean investing in a better program that helps to keep accurate records. Or it could require investing in more companywide training—empowering your staff to use your records system competently.
If you believe such expenses are unnecessary, do you know how your organization bounces back after someone leaves? How difficult is it to adapt everyone’s workload to cover for the last person who left? Was that person a paid employee or a volunteer? What does the organization lose in time, effort and funds to rebuild what was lost?
Remember, as you work to sustain your organization through turnover, it is important to focus some energy on building a resilient and flexible infrastructure that won’t suffer if a key employee leaves.
If you have already strengthened your infrastructure as much as possible and still need to stabilize your workforce, you can easily calculate your actual turnover rate to determine the urgency of your compensation status. If you do have high turnover, especially since the pandemic, it’s time to consider how you might improve engagement with adjusted compensation strategies.
Great Resignation Results
Nonprofits face advantages and challenges in regard to both groups of resigning workers:
Your compensation plan can support employee engagement and retention while setting a tone of respect and appreciation. Just follow these two tenets:
Both of these concepts support the adequate pay and rewarding culture that will sustain your nonprofit with an engaged workforce.
Compensation Growth Defined
The term “compensation growth” often leads to two action plans. First, if needed, increase your nonprofit’s pay scale, allowing salaries to reflect current best-practices. Second, meet with each employee upon hiring and then annually to develop a clear compensation plan that allows for reasonable cost-of-living increases and merit raises. Help them trust in a future with your organization. Handling the first action plan will allow you to implement the second. So, where does all that increased compensation come from?
A Valuable Distinction
Total rewards compensation involves thinking beyond the dollar signs on an employee’s paycheck. A more comprehensive approach takes two basic forms: Direct compensation includes the employee’s salary, commissions, bonuses, allowances, and overtime pay. Indirect compensation includes benefits such as health insurance, retirement funding, use of a company phone, discounts to public events, and invitations to internal events such as company picnics. Indirect compensation’s beauty is that it can rise to the size of your imagination without costing a lot.
Find opportunities in your company culture. For example, remote or hybrid schedules will likely remain popular for years. If possible, adopt scheduling flexibility and give employees more say in determining when and where they work. AARP recently reported that the Great Resignation has included many seniors who no longer wish to work full-time schedules. Simultaneously, others need more hours to make up for financial losses from the Great Recession. The trick is to work with them to meet their needs.
There are plenty of other indirect options, such as improved training availability and clear leadership paths. Mentoring and coaching for all employees can keep your staff engaged — even those who are chosen as mentors will value the experience and the trust you place in them.
Mental Health: 2022’s Best Benefit
Mental health services are critically important in 2022. Socioeconomic and political upheavals accompanied by pandemic and war have left many workers experiencing anxiety and depression. If your nonprofit provides services that help — and you build a culture geared for better overall health — your engagement should rise significantly, and employer brand will shine in the marketplace. Consider these options:
Sometimes Money Does the Talking
No matter what, they’ll need to earn a decent living. Ease their personal budgetary concerns by properly managing your organization’s budget. If traditional income streams have dried up, these options might help:
You’ll benefit from a clear business and marketing plan with specific designated use for collected funds. Be honest with donors about your organization’s need for compensation growth. When you compensate them properly, your workforce will help you reach impressive goals that build your brand, draw more donors, and sustain your nonprofit organization.
This blog post was written by Beth Black, consulting writer and editor to UST. Visit PracticalPoet.com to view Beth’s online portfolio and learn more about her editorial services.
Question: We’ve been both super busy and understaffed recently. Is there anything we can do during this time to help our employees avoid extra stress or burnout before we can hire more employees?
Answer: Yes. Here are a few things you can do to make this time run as smoothly and stress-free as possible:
Remove nonessential work duties: For the positions that seem most stretched, make a list of tasks that could be put on hold (or perhaps reassigned). You can invite input from employees, too, but I’d recommend acknowledging that they’re overwhelmed and saying that you’ll do your best to alleviate some of the pressure. Then hold off on nonessential tasks until business slows down or you’ve increased your headcount.
Allow for flexible scheduling: If employees need to work longer hours on some days during the week, consider allowing them to work fewer hours on other days of the week. Note that some states have daily overtime, spread-of-hours, or split-shift laws.
Budget for overtime: Employees may need to work extra hours to keep up with the current demands of their job, so allow them to work overtime if you (and they) can swing it. If you’re pretty sure overtime will be necessary, inform employees of that ahead of time, so they can plan accordingly.
Ensure all equipment is fast and reliable: It’s important to identify, troubleshoot, and correct any slow or nonworking equipment issues (such as laptops, internet hardware, cash registers, or vehicles). If not resolved, these issues can slow down work and add to everyone’s stress.
Look for ways to automate: Consider whether any of your employees’ manual and time-consuming tasks could be eliminated or simplified with the use of new or different technology.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
To improve the overall effectiveness, the performance, of your team, you’ll want to improve in two areas: efficiency and productivity. Be sure to take advantage of a highly effective yet often-overlooked best-practice procedure for improvement in this area. Ask your employees to identify ways that the team can be more efficient and productive. When you involve the front-line workers who experience systemic barriers, they’ll help you find better solutions in a shorter amount of time. Also, you need to know the difference between the two and which one should be tackled first.
Productivity vs. Operational Efficiency
Efficiency is about accomplishing the same goals with fewer resources, while productivity is about accomplishing more without increasing your consumption of resources. Resources could be worker hours, supplies, phone lines, funds or whatever it takes to get the job done. For example, if your organization uses 10 people to make calls and solicit restaurant donations for a community food bank, improving efficiency could be improving the phone system so that eight people could make the same number of calls in the same amount of time. Improving productivity would be training those 10 people to achieve a larger donation with each call. If you improve both, you’ve built a smaller team that can achieve more. It’s best to begin by improving efficiency. Always start by reducing the amount of wasted effort and resources. Once that has been set and stabilized with a clear baseline of operations, you can work to increase productivity without undermining efficiency. Why spend resources training all 10 people to improve their phone skills if you’ll only need eight people after modernizing the phone system? But once you’ve set up the right team of callers on a modern phone system, you can then target exactly who needs training with greater results. Create a lean, mean machine and then make it run like a dream.
Take the time to strategize your best practices when preparing to improve your efficiency. It’s not simply about cutting costs. Analytics can be a key factor in making the right choices. Once you’ve fully analyzed your processes, then you can begin to pinpoint where waste occurs so that you can begin to fix it in a way that is sustainable, perhaps with incentivized buy-in from the staff.
A promising way to begin improving efficiency is to eliminate bottlenecks. These are points in your workflow where the bureaucracy overwhelms and slows the process of completing a task. Or it could simply be a matter of disorganization. Is there a file that everyone needs but is hard to locate? Do you have a disorganized email system that makes it difficult to find important correspondence? So when someone needs something from these, they have to stop the flow to go find what they need. Bottlenecks can waste time, effort, and money. One strategy to eradicate such waste is the 5S method: Sort, Shine, Straighten, Standardize and Sustain. When you clean up your organization and its worksite, your improved efficiency will lead to more fruitful improvements in productivity.
Remember Productivity and Employee Bandwidth
Once you’ve established a baseline of operations, the next step is to work on productivity. The current vernacular for this is employee bandwidth, which measures in large part team productivity.
But how did bandwidth come to relate to employees? The term started in IT, where it was used to describe the speed of internet that could flow through a particular electronic system. The metaphoric use, today, describes how much productive work a manager can expect from staff members in a particular amount of time. This really is not about making staff work harder or faster to beat the clock. It’s about studying and working with the complete cultural and systemic condition. Is an employee close to burnout? Why? Too much work or too little? Are employees bored with no opportunities for growth? Are some frustrated by red tape and micromanagement? All of these must be taken as part of the bandwidth equation.
UC Berkeley professor Morten Hansen wrote about a study of more than 5,000 professionals over a period of 5 years. He looked at the way people took on workloads and delineated four common personality styles that describe how different staff members behave:
In performance reviews of the four groups, the Do Less, Then Obsess group scored as much as 25
percentage points higher than the other three. This style clearly works better as the workers are forced to pay attention to key factors on a regular basis.
Five Tips to Improve Bandwidth
There are five simple steps you can take to raise the level of productivity with employees and bandwidth in your team.
You can also improve retention and institutional knowledge by hiring staff with full-time hours and benefits, rather than bringing them in as part-time or contract employees. Grow their roles with your organization and reap the benefits of built-in bandwidth.
Help Them Avoid Burnout
Your goal of maximizing employee bandwidth is to increase productivity without burning out your staff. Employers who push their staff to do work faster or harder, risk a high attrition rate, as employees flee for safer grounds. The first thing to understand is that employee burnout usually has more to do with an organization than any particular employee. You could be overloading your most capable employees with too much work and too many responsibilities.
It’s time to begin thinking of your employees’ time as a precious resource and plan accordingly. If regular overtime is celebrated in your company culture, take another look at that value and check for damage to the lives of your staff members. Too many emails flying back and forth? Too many meetings in one day? When you begin to provide some relief from these constant interruptions, and give employees control over their own calendars, you’ll see your staff’s energy revitalize as they gain a sense of control and autonomy.
All of this comes from the common problem of excessive collaboration. If your organization has grown and developed numerous layers of decision makers, this could be hampering your employee bandwidth. As each stakeholder manages multiple projects, and must sign off on each, the staff members must make themselves available for a seemingly endless round of meetings, conference calls, and emails. The exhausting schedule becomes counterproductive to the point of chasing employees out the door. Restructuring the hierarchy of command can save managers from wasting time on redundant activities and freeing them to accomplish more.
Empower Your Employees
Remember, in the end, most workers want to feel fulfilled and competent in what they do for a living. They want to contribute and make a difference. It’s up to you to give them the workspace that allows them to fulfill their dreams of succeeding. Economist Theodore Levitt said, “Creativity is thinking up new things. Innovation is doing new things.” With this advice, you can allow employees to increase their efficiency, their productivity, and their team bandwidth.
This is an excerpt from UST’s eBook, “Strategies to Secure Nonprofit Endurance” in collaboration with Beth Black, Writer and Editor.
Question: What questions should an employer avoid asking during the recruiting and interview process?
Answer: You should avoid questions that are not job-related or that cause an applicant to tell you about their inclusion in a protected class. These would include questions about race, national origin, citizenship status, religious affiliation, disabilities, pregnancy, sexual orientation or gender identity, past illnesses (including use of sick leave or workers’ comp claims), age, genetic information, or military service. You should also avoid asking about things that might be protected by state law (e.g., marital status and political affiliation).
Asking these sorts of questions could result in rejected candidates claiming that the decision not to hire was based on their inclusion in these protected classes rather than job-related considerations. We recommend looking at your state’s protected class list to be sure you don’t run afoul of it.
During an interview, it is advisable to present the candidate with a copy of the job description that lists all essential job functions, including any physical requirements necessary to perform the job, and simply asking the candidate if they are able to perform the job duties listed. For example, if the position requires someone to lift 25 pounds repeatedly throughout the day, you should ask the applicant whether they can lift 25 pounds repeatedly throughout the day. You should not ask whether they have back pain or any other physical issues that might prevent them from lifting 25 pounds or if they’d filed a workers’ comp claim when doing manual labor in the past. If you need someone to work Sunday mornings, you should ask the applicant if they can work Sunday mornings. You should not ask if they attend church or have other commitments that would prevent them from working Sunday mornings.
If a candidate proactively acknowledges a disability or medical condition, we recommend that you refrain from addressing this candidate’s mention of it directly. Instead, confirm that the candidate can perform the essential functions of the position with or without reasonable accommodation. You’ll want to be certain that you are asking this question consistently of all candidates, and not just those who have disclosed a past medical condition or those you suspect may not be able to perform the essential functions of the position. It’s also important not to make assumptions about a candidate’s ability to perform their job based on their having disclosed that they have a disability or other health condition.
Finally, unless a candidate has an obvious disability or has voluntarily disclosed that they have a disability, we would not recommend asking applicants if they would need accommodation to perform job functions as it would have the effect of creating a pre-employment disability inquiry, which is prohibited under the Americans with Disabilities Act (ADA).
You can also download UST’s Interviewing 101 as a guide for preparing to interview candidates and hiring the right people for your nonprofit. This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineralportal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Employee benefits, also known as perks and fringe benefits, are provided to employees over and above salaries and wages. Employee benefit packages may include overtime, medical, dental, vacation, profit sharing and retirement benefits, to name just a few. Offering these types of benefits to your employees is important because it shows them you are invested in not only their overall health, but their future. A rich employee benefits package can help attract and retain talent. Benefits also have the ability to help set you apart from competing organizations—benefits more often than not, can be the deciding factor when future talent decides to accept a job offer.
When looking at fringe benefits, there are two types, fringe benefits that are required by law (i.e., social security and health insurance and fringe benefits provided at the organization’s discretion. (i.e. free breakfast and lunch, gym membership, employee sock options, retirement planning services, child care, education assistance, etc.). Organizations will offer additional fringe benefits in hopes of increasing employee wellness and employee engagement. Employees often work harder when they feel their employer appreciates their contribution to the organization. One way to increase employee satisfaction is by providing additional benefits like paid holidays, employer-provided car, workplace flexibility, etc. It will help reduce incidences of a disgruntled workforce and keep the employees engaged.
Healthcare and retirement benefits are important for obvious reasons, but the popularity of additional fringe benefits seem to be on the rise, especially following a global pandemic. Check out UST’s list of Creative Workplace Benefits for some ideas on how you as an employer, can show your staff support while increasing your chances of retaining your employees.
Being creative with your benefits package at a budget restricted nonprofit can be less expensive and often better received than a raise, so put on your thinking cap and leave no stone unturned. Remember, money alone will not keep employees engaged so take the time to come up with a plan to show them some appreciation.
This article was written by Mitch Stein, Founder & CEO at Pond and shared with explicit permission.
The nonprofit workforce has been through a lot in the last few years—they’ve faced job insecurity and financial shortcomings as well as mental and emotional strain—leaving many burnt out and pursuing new jobs. In order to achieve stability, nonprofits need to be innovative with development opportunities that can help combat preventable terminations.
In a recent article by Pond, “How to Build a Professional Development Plan for the New Nonprofit Landscape,” Mitch Stein shares strategies for building a professional development plan that ensures employees are prepared and able to perform critical tasks in times of uncertainty while also being supported in their career trajectory. You’ll learn how to identify skills gaps, curate professional development resources, encourage cross-training, and align your development program around your nonprofit’s core values.
Remember, in the end, most nonprofit employees want to feel fulfilled and competent in what they do—they want to contribute as well as make a difference. These strategies can help you sustain your organization’s workforce and remain competitive in today’s ever-evolving employee marketplace.
Question: HR Compliance: What It Is and Why It’s So Complicated
Answer: Running a business comes with no shortage of perks. You get the freedom to be your own boss, invest in an idea, steer its trajectory, and create wealth. It has its challenges, too. Competition may be fierce. Demand for what you offer may be low. Costs may not be sustainable. But even if everything else is going your way, there’s one challenge that’s ever-present. We’re talking, of course, about HR compliance.
The Definition of HR Compliance
HR compliance is the work of ensuring that your employment practices conform to federal, state, and local laws. This work requires learning which laws apply to your organization and understanding what they require you to do. That’s easier said than done.
HR compliance is truly an art. It requires knowledge, skill, and cooperation. You have to be able to decipher legalese, know where to go to ask the right questions, and create policies and procedures that minimize business risk. You have to ensure that everyone from the executive team to newly minted managers know what they can and cannot do. You have to conduct investigations and enforce your rules consistently. And all this is just the bare minimum—necessary, but not enough to create a truly successful culture.
The work of compliance is never entirely done. Not only do new legal requirements appear on the regular, but, as you’ll read below, compliance obligations are often unclear. While some compliance obligations are definitive, others are unresolved, and a good number require you to make a judgment call. Let’s look at each of these in turn.
Why HR Compliance Can’t Always Be Assured
Some employment laws take the form of “Do this” or “Don’t do that.” The requirements may be simple, like minimum wage, or complex, like FMLA, but either way there’s usually no real question about what you need to do or not do. Compliance with these laws is pretty straightforward. Don’t pay less than the minimum wage. Provide leave to eligible employees for the reasons that qualify, continue their health benefits (if applicable), and return them to their position when their leave ends. As long as you’re clear on the details, you’re not likely to lose sleep wondering if you’re compliant.
Sometimes, however, those details are unsettled. Lawmakers don’t always specify everything a law requires before it passes or takes effect. Even when laws seem clear, trying to put them into practice often raises a lot of questions. And the legislature isn’t the only source of law: regulatory agencies demand their say, and courts get involved, too. To complicate matters, these branches of government don’t always agree with each other, and what they say today may not be what they say tomorrow. Keeping up with the latest official guidance takes time and persistence. It can feel like a marathon, when what you want is a quick sprint to the answer. You have other demands on your time, after all.
Finally, a lot of employment laws have standards you have to follow, but they don’t tell you how. Neither the IRS nor the DOL, for example, tells you whether your workers are employees or independent contractors—unless there’s an audit or complaint. Instead, these agencies publish tests with general criteria that you use to make case-by-case determinations.
The Americans with Disabilities Act (ADA) works this way, too. The ADA requires employers to provide reasonable accommodations to employees with disabilities, with a few exceptions. One of the exceptions is that the accommodation doesn’t create an undue hardship on the employer’s business. The basic definition of an undue hardship is an action that creates a significant difficulty or expense. Although the law provides factors to consider in making this determination, the onus is on you to decide whether an expense or difficulty from an accommodation is significant. And, ultimately, your conclusion could be challenged in court.
Why HR Compliance Looks Like This
If HR compliance seems overly-complicated, that’s because it is. Our current legal landscape is the result of three competing philosophies about how the workplace should be governed, who should govern it, and whose rights in the workplace should be prioritized in the law.
Owner Control
According to the first view, business owners should have control over their workplaces for one simple reason. They own the business. It’s their property, and as owners they should have the legal right to govern it. Employees have no right to control aspects of the workplace because the workplace isn’t theirs. They don’t own it. It’s not their property. If they don’t like the terms and conditions of their employment, they can and should go elsewhere.
While an owner might employ managers or an executive team to make decisions about who to hire and fire, what to pay, how to assign work, and other such matters, the owner remains in charge. Advocates of this view include the economist Milton Friedman. In 1970, he famously argued that corporate executives should bow to the desires of the owners. The will of the owners reigns supreme.
Worker Control
According to the second view, workers should have a say in the decisions that get made simply because those decisions affect them and their livelihoods. In this line of thinking, the governance of the workplace should adhere to the principles of democracy. However, proponents for this view differ on how democracy in the workplace should be practiced.
In the 1930s, Senator Robert F. Wagner introduced the National Labor Relations Act. He wanted to guarantee the “freedom of action of the worker” and ensure that workers were “free in the economic as well as the political field.” Today, talk of democratizing the workplace usually refers to bolstering unions. But there are other proposals to note. Some champions of workplace democracy, like Senator Elizabeth Warren, have pushed for employee representation on corporate boards. Others favor cooperative models in which the division between employers and employees doesn’t exist.
Full-fledged workplace democracy is still a fringe view, though. The very definition of an employee remains a worker who does not have the right to control what the work is, how it’s done, or how it’s compensated. Employees may be given authority to make decisions. They may have influence over their superiors. But they are not legally in charge.
Societal Control
Advocates of the third view argue that the government has an interest in exercising some measure of control over the work and the workplace. In the employer-employee relationship, employers typically have significantly more power than employees—especially an employee acting as an individual. Frances Perkins, who served as Secretary of Labor and was a key architect of the New Deal, believed that government “should aim to give all the people under its jurisdiction the best possible life.” She saw a role for legislatures in countering long hours, low wages, and other conditions unfavorable to employees.
How These Philosophies Have Played Out
In the United States, HR compliance is the result of these three competing and arguably incompatible philosophies. Government action with respect to employment has tried to empower workers and afford them certain rights, protections, and freedoms in the workplace, all while preserving the employer’s control over their business.
We can see this balancing act in the differences among state laws. Some states prioritize the right of owners to control their workforces and are loath to restrict that right through legislation. Other states act out of what they see as a duty to secure the rights of workers. Imposing obligations on employers doesn’t bother them.
We also see this balancing act in the way that employment laws tend to set parameters rather than dictate exactly what employers must do. You can pay employees whatever you want, so long as you pay at least the minimum, offer an overtime premium when applicable, and meet equal pay requirements. You can theoretically terminate employment for any reason or no reason at all (though we don’t recommend it); but you can’t fire someone for an illegal reason. Even laws that require a new practice, such as paid leave, allow flexibility provided you meet minimum conditions.
Takeaways
First, when you’re assessing your compliance obligations, understand that not all compliance obligations are clearly delineated or settled law. Unsettling as that may be, it’s how our system has been set up. In those cases, you’ll have to weigh your options and the risks involved, and then make a decision. Sometimes you may need legal advice in addition to HR guidance. Remember, however, that despite all the many employment laws on the books and in the imaginations of legislators, the system is designed to keep employers in charge. You can’t eliminate all risk, but by understanding the nuances and open questions, you can significantly minimize it.
Second, document your actions and decisions. It only takes an employee filing a complaint for enforcement agencies to get involved, but you are better protected if you can quickly and clearly explain to them the reason for your actions.
Third, evaluate whether your policies, procedures, and practices are satisfactory to employees. No employment law gets written in a vacuum, and no law is truly inevitable. Lawmakers passed the Fair Labor Standards Act because workers and the general public felt that labor standards were unfair. Today we wouldn’t have people pushing for predictive scheduling laws if they felt that work schedules were already sufficiently predictable. Harassment prevention training wouldn’t be mandatory (where it is) if sexual harassment weren’t widespread.
Fourth, lead by example. Make good employee relations a key part of your brand and competitive advantage. Employees have higher expectations today than they used to. Meet those expectations and motivate other employers to do the same, and you may find that the compliance landscape of the future is less winding and boggy than it could have been.
Finally, spend some time each day learning about your compliance obligations. Use resources that break down federal and state employment laws in a way that laypeople can understand. Keep up to speed on the latest compliance obligations and contingencies you should consider. HR compliance is an art. The first step to mastering it is learning what it entails and how it works.
You can also download the Telecommuting Checklist as a tool for when an employee is transitioning to a remote schedule. Q&A provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Question: How do I make a telecommuting policy?
Answer: Although some employers will be comfortable sending everyone home with their laptop and saying, go forth and be productive, most will want to be a little more specific. A good telecommuting policy will generally address productivity standards, hours of work, how and when employees should be in contact with their manager or subordinates, and office expenses.
For instance, your policy might require that employees are available by phone and or a messaging app during their regular in-office hours, that they meet all deadlines and maintain client contacts per usual, and that they check in with their manager at the close of each workday to report what they have accomplished. Be sure to let employees know whom to contact if they run into technical difficulties at home.
You’ll also want to specify how expenses related to working from home will be dealt with. If you don’t expect there to be any additional expenses involved, communicate this. You don’t want employees thinking this is their chance to purchase a standing desk and fancy ergonomic chair on your dime. That said, you should consider whether employees will incur reasonable and necessary expenses while working from home. Some states mandate reimbursement for these kinds of expenses, but it’s a good practice to cover such costs even if it’s not required by law.
You can also download the Telecommuting Checklist as a tool for when an employee is transitioning to a remote schedule. Q&A provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
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.