Author Archives: Stephanie

9 Ways Employers Can Foster Positive Workplace Mental Health

May 25, 2023

Employee mental health has become a pressing concern in today’s fast-paced and demanding work environments. The CDC reports that more than 1 in 5 American adults live with a mental health condition—and while the pandemic skyrocketed remote work and its many conveniences, it’s also increased isolation and loneliness.

Declining mental health in the workplace leads to decreased productivity, increased absenteeism, and higher healthcare costs. In fact, mental illness and substance abuse cost employers an estimated $225.8 billion each year in the United States alone. These statistics highlight the urgent need for employers to address and support the mental well-being of their workforce.

Compassionate, forward-thinking employers must prioritize employee wellness to combat the mental health crisis. Below, we’re discussing ways leaders can put workplace mental health first.

The Benefits of Focusing on Employee Mental Health:

Prioritizing employee mental health demonstrates a compassionate and caring work culture and brings several significant benefits to both employees and employers. When employers invest in their employees’ mental health, they can expect:

Enhanced Productivity: Employees who feel supported in their mental health are more engaged and motivated, leading to increased productivity and efficiency in their work.
Reduced Absenteeism: Employers can help reduce absenteeism due to mental health concerns by promoting mental well-being. This, in turn, leads to lower costs associated with lost productivity and recruitment.
Improved Employee Retention: A workplace that values mental health fosters employee loyalty and commitment. Employees who feel supported are more likely to stay with the organization long-term.
Enhanced Work Environment: A mentally healthy workplace encourages open communication, reduces stigma, and promotes positive employee relationships, resulting in a more collaborative and harmonious work environment.

9 Methods to Strengthen Workplace Mental Health

To effectively support employee mental health, employers and managers can implement the following methods and leverage available resources:

Promote Mental Health Awareness

Conduct regular workshops and training sessions to educate employees about mental health, common signs of distress, and available resources. Share informative materials, such as brochures and posters, that raise awareness about mental health and provide guidance on seeking help.

Invite guest speakers or mental health professionals to address specific topics and answer questions from employees. Some organizations have counselors and other supports come into the office regularly so employees can speak with them when needed.

Establish a Supportive Work Culture

Encourage open and honest communication about mental health by fostering an environment free from judgment and stigma. Train managers and supervisors on how to have supportive conversations with employees about their mental health concerns. This may include leaders sharing their own mental health experiences to help eliminate the stigma and make employees more comfortable asking for support.

Offer Employee Assistance Programs (EAPs)

Collaborate with an employee assistance program (EAP) provider to offer confidential counseling services, mental health resources, and referrals for employees.

If you find employees are hesitant to take advantage of these services, they may fear a stigma or not fully understand how it works. Communicate the availability and benefits of the EAP through multiple channels, such as email newsletters, intranet portals, and posters regularly. Ensure that employees are aware of the confidentiality of EAP services and how to access them when needed.

Making the EAP services available to employees’ immediate family members can also ease significant stress.

Encourage Work-Life Balance

Set clear expectations around work hours and encourage employees to prioritize self-care and personal well-being outside work. Showing and not just telling them that you respect their time and boundaries will prevent a culture of presenteeism, where employees feel pressured to work excessively long hours.

Implement flexible work options, such as remote work or flexible hours, to accommodate employees’ needs and promote work-life balance. Remind employees to take breaks, practice self-care, and utilize vacation time to prevent burnout. A solid PTO policy is also key here—many employers limit rollover to encourage workers to use it before they lose it!

Implement Stress Management Programs

In addition to an EAP, companies can offer stress reduction initiatives, such as mindfulness training, yoga or meditation classes, and resilience-building workshops. Enlist professionals to come in weekly, monthly, or quarterly, and be sure to promote these activities to ramp up employee engagement.

Other employers provide resources and tools to help employees manage and cope with workplace stress, such as subscriptions to relaxation apps or stress management guides. Encourage managers to lead by example and practice stress management techniques themselves.

Provide Managerial Training

While general workshops on mental health are beneficial, you should train managers and supervisors specifically on:

Recognizing signs of mental distress in their teams and providing appropriate support
Effective communication skills and how to have open, empathetic conversations about mental health with employees
Reasonable accommodations and the process of making necessary adjustments for employees with mental health conditions

This includes training leaders on the signs of substance abuse and how to handle it, an important skill to maintain a safe, healthy work environment.

Foster Social Connections

Team events and activities are something every organization should be doing–and something we’re passionate about here at BlueLion. Follow us on social media for some fun team outing ideas! Create opportunities for employees to build positive relationships, such as:

Team-building activities, social events, or volunteer opportunities
Formation of employee resource groups or wellness committees where employees can connect and support one another
Virtual or physical spaces for employees to share hobbies, interests, or personal achievements

All of the above give employees various avenues to connect, support one another, and establish a sense of belonging and camaraderie.

Measure Employee Mental Health

While putting these methods and resources in place is crucial, you must also ensure your workplace mental health efforts are working as intended and adjust as needed. Be sure to:

Conduct anonymous surveys or assessments to gauge employee well-being, stress levels, and satisfaction with existing mental health initiatives.
Use the collected data to identify areas of improvement and tailor mental health programs to address specific needs within the organization.
Regularly communicate the results of these surveys to employees, demonstrating a commitment to their mental health and the organization’s dedication to continuous improvement.

Cover Mental Health Care

Many employees fail to seek mental health support due to the cost. Ease this burden by:

Evaluating and enhancing mental health coverage in employee healthcare benefits, ensuring comprehensive coverage for therapy, counseling, and psychiatric services
Communicating the mental health benefits clearly to employees and providing information on how to access and utilize mental health services within their insurance plans
Partnering with mental health providers to offer employee discounts or establish partnerships that make mental health care more accessible and affordable for employees
Providing a health savings account (HSA) to help employees manage expenses

Final Thoughts on Mental Health in the Workplace

Prioritizing employee mental health is crucial for creating a thriving and productive work environment. By implementing the methods and resources outlined above, employers can support their employees’ mental well-being, leading to enhanced productivity, reduced absenteeism, improved employee retention, and positive work culture.

Remember, a mentally healthy workplace is a win-win situation for both you and your team, promoting overall employee wellness and contributing to the organization’s long-term success. Do you need ideas and guidance while building your employee mental health support program? Contact BlueLion’s HR professionals today at 603-818-4131 or info@bluelionllc.com to learn how we can help!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Demystifying DOL Audits: Navigating the Process with Confidence

May 18, 2023

The mere mention of a Department of Labor (DOL) audit can cause employers stress. The thought of meticulous inspections, paperwork scrutiny, and potential penalties can understandably raise anxiety levels. But a DOL audit doesn’t have to be a nightmare-inducing experience.

We’re here to calm your fears and shed light on the DOL audit process, providing you with a roadmap to navigate it confidently. Understanding what to expect and how to prepare can transform this seemingly daunting endeavor into an opportunity for growth, compliance, and operational improvement.

We’ll dive into the key aspects of DOL audits and equip you with practical strategies to ensure a smooth audit experience. From preparation tips to best practices during the audit, we’ll guide you every step of the way.

Rather than viewing a DOL audit as a threat, consider it an opportunity to fine-tune your policies, strengthen your practices, and showcase your commitment to fair employment practices and regulatory adherence.

So, take a deep breath, and let’s demystify the world of DOL audits!

What triggers a DOL audit?

The DOL may conduct audits of employers to ensure compliance with labor laws and regulations. While the reasons for a DOL audit may vary, common triggers include:

Reported complaints or violations: Employee complaints of labor laws such as wage and hour violations, discrimination, or unsafe working conditions, could trigger an audit.
Targeted industry or geographic focus: Specific industries or geographic regions are known for issues like high violation rates, prevailing wage concerns, or enforcement priorities. For example, food service, healthcare, and hospitality businesses are often targeted because of historically low wages and hour violations.
Random selection: In some cases, the DOL may select employers for audit randomly to ensure a broad range of compliance enforcement across various industries.

What should we expect from a DOL audit?

So, you’ve been notified that your business is the lucky winner! Don’t sweat it. Here’s how the DOL audit process typically goes:

1. Notification

You will typically receive a written notice or letter from the DOL notifying you about the audit, its purpose, and the information and records you need to provide.

Pro Tips:

You’ll likely receive short notice, but you can request more time to gather the necessary records. The auditor will decide whether or not to grant your request.
Ask the auditor what they will investigate (e.g., hour and/or wage compliance, employee classification, etc.), the date range for records they wish to review, and which employees they plan to interview. Again, the auditor will decide whether to provide additional information.

2. Onsite Visit

DOL auditors usually visit the employer’s premises to review records, policies, and procedures; interview employees; and gather information relevant to the audit.

3. Record Examination

A DOL auditor will request various records and documents depending on the focus of the investigation. This includes but is not limited to payroll records, timekeeping records, employment contracts, wage rates, employee classifications, benefits information, and safety records.

4. Interviews

DOL auditors may interview employees to gather information and assess your organization’s compliance with labor laws and regulations.

5. Compliance Review

The auditors will review your company’s practices and policies to ensure compliance with applicable laws, such as the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), Occupational Safety and Health Act (OSHA), and other relevant regulations.

6. Findings & Recommendations

Following the audit, the DOL will provide the employer with findings and recommendations, which may include suggested corrective actions to address any identified violations or areas of non-compliance.

How can we help the process go smoothly?

During the DOL audit, you can take the following steps to ensure a seamless process:

1. Designate a point of contact

Designate an internal point of contact to liaise with the DOL auditors and coordinate the audit process and interviews. This person should know the organization’s policies, practices, and recordkeeping. Good candidates are often your attorney or a senior manager.

2. Cooperate and be responsive

Respond promptly and thoroughly to all requests for information and records from the DOL auditors. Cooperate with the auditors during their onsite visits and provide them with the necessary facilities and personnel.

Pro Tip: Give the auditor a quiet space to conduct their investigation and employee interviews privately.

3. Maintain open communication

Maintain open and professional communication with the auditors. Address any questions or concerns they may have, and provide clarifications or additional information when necessary.

4. Document interactions and findings

Record all interactions with the auditors, including notes on discussions, requests, and information provided. This documentation can be valuable for reference and future follow-up if needed.

Pro Tip: ONLY provide the auditor with the documents they request.

5. Seek legal counsel

If complex legal issues arise during the audit or if there are concerns about potential violations, seek legal counsel to provide guidance and representation.

Remember that each DOL audit may have specific requirements and processes, so it is essential to consult legal professionals with expertise in labor law compliance to ensure proper preparation and adherence to the audit process.

How can we stay prepared for a DOL audit year-round?

Follow these proactive steps to keep your company compliant and ready for a DOL audit at the drop of a hat!

Conduct an internal audit

Review your organization’s policies, procedures, and practices to ensure compliance with relevant labor laws and regulations. Identify areas where potential violations may exist and take corrective action in advance, if possible.

Your internal audit should also include reviewing and updating all job descriptions, wages for each role, and the reason for each pay rate.

Pro Tip: Although employee handbooks and job descriptions aren’t legally required, creating and keeping them updated is best practice. Both can also demonstrate that your company treats and compensates all employees fairly.

Organize and maintain accurate records

Ensure that all required records, such as payroll, timekeeping, employment contracts, and safety documentation, are accurate, complete, and well-organized. This includes maintaining historical records for the appropriate time periods as required by law. For example, payroll records must be kept for at least three years. Check the labor laws in your state, as these can vary!

Educate management and staff

Train managers and staff on labor laws and regulations, including topics such as wage and hour requirements, employee classification, discrimination and harassment prevention, and safety regulations. Well-informed employees can help ensure compliance and proper documentation.

Seek legal counsel

Yep, it’s on here again! You should have your legal counsel review your policies, practices, and recordkeeping procedures regularly or whenever you make changes. They can help ensure compliance with new or updated policies and practices and help prepare for a potential audit.

Remain ready and don’t stress a DOL audit!

While a DOL audit may initially instill anxiety, arming your team with the right knowledge and preparation makes it a manageable process. Now, you understand the critical aspects of DOL audits and have valuable insights to calm your fears and navigate the journey easily.

By reviewing your policies, organizing records, and educating your team, you can proactively prepare for a DOL audit. Conducting internal audits and seeking legal counsel ensures you’re on the right track. During the audit, maintain open communication, cooperate fully, and document interactions for future reference.

Remember, a DOL audit is an opportunity for growth and improvement. It allows you to showcase your commitment to compliance and fair employment practices. Use this time to fine-tune your policies, address any potential issues, and demonstrate your dedication to the well-being of your employees.

Do you have additional questions about DOL audits or need guidance in labor law compliance? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to learn how our diverse HR specialists can help you protect and prepare your business!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Employer’s Quick & Easy Guide to MVR Checks

May 11, 2023

When hiring a new employee, employers must do their due diligence. This may include background checks, drug testing, work history verification, or licensing/certification checks.

And if you’re hiring an employee who will spend a lot of their work hours on the road, whether in their own car or a company vehicle, you’ll want to conduct a motor vehicle record (MVR) check, too!

Don’t stress if you’re wondering what this involves and how to ensure compliance! We’re going to break it down below. You can also consult your HR team and attorney and work with a reputable background check company to make this process simple and legal.

What is a motor vehicle record (MVR) report, and what does it include?

As the name indicates, an MVR shows an individual’s driving history. This data comes from the Department of Motor Vehicles (DMV) and is usually only conducted for employees whose jobs entail driving.

While the information varies from state to state, an MVR report typically shows:

Licensing information, including class, restrictions, suspensions, and expirations
Driving infractions, such as speeding tickets and moving traffic violations
Accidents the driver has been involved in (some states include who was at fault)
Criminal charges, such as driving under the influence (DUI) or reckless driving—although in some states, these only appear on someone’s criminal record, not their MVR.

Pro tip: You may need to run MVR checks in the employee’s current and previous state(s) of residence, depending on the state and job requirements. Check with your local jurisdiction.

How far back does an MVR check go?

Each state has different reporting requirements. The average MVR shows at least three to five years of driving history, while some show up to 10 years.

Some states base this on the type of violation. For example, look-back periods for standard moving violations, DUIs, and moving violations made in a commercial vehicle may differ.

When should employers run an MVR report?

Employers generally only need to run MVR reports for employees who will be constantly or frequently driving vehicles or operating heavy machinery. You may also run an MVR for employees who occasionally use company vehicles to confirm that your insurance covers them.

Common situations where employers conduct MVR checks include:

Commercial drivers: Employers hiring drivers for commercial vehicles such as trucks, buses, or taxis typically conduct MVR checks. Compliance with Department of Transportation (DOT) regulations often requires employers to review driving records to ensure candidates meet the necessary qualifications.
Delivery or transportation services: Companies that provide delivery services or transportation of goods may require MVR checks for employees operating company-owned vehicles. This allows you to verify that individuals have a safe driving history, and you can trust them to transport goods.
Sales or field representatives: If a job involves frequent travel or requires employees to use their personal vehicles for work-related purposes, such as meeting clients or attending off-site meetings, employers may choose to conduct MVR checks to assess the driving abilities and safety records of potential hires.

Why are MVR checks important for these roles?

Depending on your industry, it is critical to run MVR reports for positions like those listed above for:

Safety considerations: If the job requires driving as a significant component, employers have a responsibility to ensure the safety of their employees, clients, and the general public. Conducting MVR checks allows you to assess an individual’s driving history, identify any past traffic violations or accidents, and determine their ability to operate vehicles safely.
Risk mitigation: By reviewing MVR records, employers can mitigate potential risks associated with negligent hiring or retention. Hiring individuals with a history of unsafe driving behaviors or multiple traffic violations could expose your organization to liabilities, accidents, or increased insurance costs.
Compliance with legal requirements: Certain industries or positions may be subject to specific regulations or insurance requirements. Compliance with such requirements is essential for avoiding penalties and maintaining the company’s legal standing. For example, transportation companies must comply with Department of Transportation (DOT) regulations, often including MVR checks for commercial drivers.
Protection of company assets: When employees operate company-owned vehicles or use their personal vehicles for work-related purposes, their driving behaviors can impact the company’s assets. MVR checks help you evaluate the level of risk associated with providing vehicles or authorizing the use of personal vehicles for business needs.
Insurance considerations: You often need to consider insurance coverage when employees drive for work purposes. Insurers may have specific requirements or guidelines for coverage, including assessments of driving records. By conducting MVR checks, employers can ensure that employees meet the necessary criteria for insurance coverage.

9 Steps to Run a Fair & Legal MVR Check

When hiring new employees, follow these steps to ensure your MVR reporting process is fair and legal:

Understand federal and local laws: An MVR is subject to the Fair Credit Reporting Act (FCRA) because it’s considered a consumer report. Additionally, different regions may have specific requirements regarding the permissible use of MVR information, data retention, and applicant rights. Ensure your procedures comply with FCRA requirements and laws and regulations governing MVR checks in your jurisdiction.
Obtain candidate consent: Before conducting an MVR check, employers must obtain written permission from the candidate. Use a separate authorization form specifically addressing the MVR check—this should also comply with local data protection and privacy laws!
Determine the appropriate time: Decide when the MVR check should be conducted in the hiring process. It is usually part of the background check procedures. Many employers typically conduct MVR checks after the initial screening but before making a job offer. However, this can vary based on company policies and the nature of the role.
Engage a reliable screening service: Contract with a reputable screening service or third-party vendor specializing in MVR checks. These services have access to motor vehicle records databases and can provide accurate and up-to-date information.
Collect required information: Gather the necessary information from the candidate, such as their full legal name, driver’s license number, and date of birth. This information is crucial for the screening service to retrieve the candidate’s accurate driving history.
Comply with fair hiring practices: Ensure your MVR check process adheres to fair hiring practices and complies with anti-discrimination laws. Consistently apply the same standards to all candidates to avoid potential bias or discrimination claims.
Review the MVR report: Once you receive the MVR report from the screening service, review it thoroughly. Assess the candidate’s driving history, paying attention to any significant violations, accidents, or patterns of unsafe behavior that may impact their suitability for the role.
Use the information appropriately: Make hiring decisions based on relevant and job-related factors derived from the MVR check. Consider the nature of the job, its requirements, and any applicable legal or insurance requirements in your decision-making process.
Maintain confidentiality: Treat the MVR report and related information as confidential. Follow appropriate data protection practices to safeguard the candidate’s privacy and comply with applicable regulations.

Running MVR Reports the Right Way

Overall, conducting MVR checks on new hires allows employers to make informed decisions, mitigate risks, promote safety, comply with legal obligations, and protect company assets.

Just be sure to conduct MVR checks consistently, in compliance with applicable laws, and in a manner that aligns with your organization’s policies and procedures. Consulting legal professionals or HR experts knowledgeable in your jurisdiction can provide further guidance specific to your organization’s needs.

Do you need customized guidance on your MVR checks and processes? Let BlueLion walk you through it and help you establish your policies! Contact us today at info@bluelionllc.com or 603-818-4131.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

What Does At-Will Employment REALLY Mean?

May 3, 2023

You are likely familiar with at-will employment. After all, it is recognized in every state except Montana. But should you fire an employee for no reason just because you can?

Not necessarily! There are exceptions and risks to employment at will, which vary from one state to the next.

Read on for a better understanding of at-will employment, its exceptions, and its pros and cons.

What is at-will employment?

Under an at-will employment arrangement, an employer can terminate an employee whenever, for any or no reason, as long as it is not illegal (e.g., discrimination or retaliation). At-will employees can also leave their jobs without giving employers an explanation or advanced notice. They can even simply stop showing up!

While at-will employment is the default in almost every state and the District of Columbia, the state of Montana and some employers require just cause. This means employers must have a valid reason for terminating an employee.

Decide what is best for your company and employees and ensure your hiring and firing practices comply with state and federal laws. If you don’t want to hire at-will employees, you might have them sign a different contract indicating their employment is not at-will. Most businesses have separate employment agreements for high-level employees, while the rest of the staff is hired at will.

Exceptions to At-will Employment

Beware of the exceptions to at-will employment, which vary by state.

Violation of Public Policy Actions

Most states prohibit employers from terminating employees for reasons that violate public policy. For example, it may be illegal to fire an employee for filing a workers’ compensation claim, reporting workplace safety violations, or refusing to engage in illegal activity.so

Making & Breaking Implied Contracts

Even without a written employment contract, an implied contract may exist between the employer and the employee. This may occur when an employer makes promises to the employee that are not reflected in the written employment agreement, or when the employer’s policies and practices suggest that employees will only be terminated for cause.

Employers can even get in hot water with seemingly innocent comments, such as a hiring manager telling a candidate, “We never fire anyone without good reason.” The candidate could take this to mean they can only be fired for just cause.

Breach of Good Faith & Fair Dealing

Select states have made it illegal for employers to fire employees to avoid obligations like paying earned commissions or retirement benefits. While only 11 states recognize this implied covenant of good faith and fair dealing, it’s best practice for employers to honor these obligations to their employees.

Discrimination & Retaliation

It should go without saying, but employers cannot terminate employees for reasons that violate state or federal anti-discrimination and anti-retaliation laws. For example, it is illegal to terminate an employee based on race, gender, age, disability, or religion. Similarly, you can’t fire workers for engaging in protected activities such as reporting workplace discrimination, harassment, or other illegal activities.

Collective Bargaining Agreements

Unionized employees may be protected by collective bargaining agreements that specify the terms and conditions of employment, including the circumstances under which employees can be terminated.

Contract Workers

If your business hires independent contractors, you must follow the terms in the agreement you’ve both signed. This means contractors are often exempt from at-will employment.

And remember, just because you’re not required to give an employee a reason for termination doesn’t mean you shouldn’t. Providing a valid reason (along with ample documentation) will minimize your company’s exposure to unemployment claims and potential litigation.

Pros & Cons of Hiring At-will Employees

As you debate what’s right for your organization, consider how at-will employment could affect your business and your team.

Pros of At-will Employment

Flexibility: At-will employment provides flexibility to both employers and employees. Employers can adjust their workforce as necessary without drawn-out negotiations and discussions. This allows them to let go of subpar employees and those causing problems immediately since they’re not required to give advanced notice. Employees are also free to leave their job if they find a better opportunity.
Cost-effective: At-will employment can be cost-effective for employers, as they can avoid lengthy severance packages, litigation, and other expenses associated with terminating employees. No more having to negotiate salaries or even continue paying employees who aren’t a good fit or those you can’t afford during an economic downturn.
Productivity: At-will employees may be more productive because they know their job is not secure, and they must perform well to keep it. And it allows employers to promote and reward team members based on their hard work and potential.

Cons of At-will Employment

Lack of job security: At-will employees may feel insecure about their job because they can be terminated at any time without any cause or notice. This, in turn, can negatively impact morale and make employees hesitant to share concerns or negotiate for themselves.
Short-staffing: If at-will employees quit suddenly, it could leave the company in a lurch—especially if multiple staff members leave at once.
Difficulty in attracting talent: At-will employment can make it challenging to attract top talent, as candidates may prefer a more secure employment relationship.

Final Thoughts on At-will Employment

While at-will employment can provide flexibility and cost savings for employers, it can also create job insecurity and staffing complications. Business leaders should consult with their HR team to evaluate their organization’s specific needs and culture to determine if at-will employment is the best option for their workforce.

Do you have questions about at-will employment? Or do you want to ensure your organization’s hiring and termination practices comply with state and federal laws? Let BlueLion’s HR professionals guide the way! Contact us at 603-818-4131 or info@bluelionllc.com to learn more today.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

What is Workplace Retaliation & How Can Employers Prevent It?

April 25, 2023

We’ve discussed workplace discrimination and harassment and how to ensure you treat all employees fairly and avoid potential litigation. However, many employers fail to understand the complete picture of workplace retaliation—which often follows discrimination.

Of course, you care about your team. You can’t imagine discriminating against them, never mind punishing them for acting within their rights.

But this is where it gets tricky—and why workplace retaliation claims are the most common filed with the Equal Employment Opportunity Commission (EEOC). Employers often fail to:

Understand what falls under protected activity
Train management on handling employee complaints
Develop a complaint process and policy
Enforce policies equally company-wide

So, what qualifies as retaliation, and how can you avoid it in your organization? We’re breaking it down below.

What is workplace retaliation?

Workplace retaliation occurs when an employer punishes an employee for engaging in protected activity. This can come from a manager, supervisor, administrator, or business owner.

For instance, this could mean a salary reduction, denying a raise or promotion, demotion, or job or schedule change. More subtle workplace retaliation examples can include a negative performance review or removal from an important project.

These are known as adverse actions, as they are meant to intimidate a reasonable employee from making a complaint against the employer or engaging in any protected activity.

What qualifies as protected activity?

Under federal law, employees and applicants have the right to complain about workplace harassment or discrimination directly to their employer and external bodies like the EEOC without fear of retaliation. There are many types of protected activity, such as:

Filing an EEO charge, complaint, investigation, or lawsuit
Acting as a witness or answering questions during a discrimination or harassment investigation
Reporting discrimination or harassment to a manager or supervisor
Declining orders that would result in discrimination
Rebuffing sexual harassment or intervening to protect others
Requesting a religious or disability accommodation
Inquiring about salary information with managers or coworkers to uncover potentially discriminatory wages
Discussing wages, benefits, or other working conditions

A complaint doesn’t have to be formal to be protected—it is protected as long as the employee was acting on a reasonable belief that something in the workplace may violate EEO laws.

Keep in mind that these protections apply to all:

Employees (full-time, part-time, seasonal, temporary, and probationary)
Job candidates
Former employees covered by EEO laws
Employees who complain about perceived discrimination against coworkers

Their citizenship or work authorization is irrelevant.

How does this relate to disability accommodation requests?

Workplace retaliation can occur when an employee with a disability requests a reasonable accommodation and then experiences adverse action(s) as a result. Even if they receive the accommodation, a manager or coworkers could retaliate in one of the ways listed above or by creating a hostile work environment.

Employers have a legal obligation to provide reasonable accommodations to employees with disabilities. They cannot retaliate against employees for requesting an accommodation or exercising their rights under the Americans with Disabilities Act (ADA).

To avoid workplace retaliation claims, employers must create a culture that supports disability accommodations and ensure employees feel comfortable requesting them without fear of retaliation.

Learn how to properly handle an ADA accommodation request properly to give employees what they need and keep your company compliant.

How to Prevent Workplace Retaliation Claims

In addition to understanding what qualifies as protected activity and illegal adverse actions, employers can create a safe company culture and avoid workplace retaliation by:

Creating well-defined policies

Establish detailed anti-discrimination and anti-retaliation policies that are communicated to all employees. Clearly state that retaliation is prohibited and encourage employees to report retaliatory behavior immediately.

Key elements of a solid anti-retaliation policy include:

Examples of retaliatory behavior
Guidance on avoiding actual or perceived retaliation
A complaint process for staff to report retaliation
An outline of the investigation process
A statement that employees may be disciplined or fired for retaliation

Establishing a complaint process

When an employee makes a complaint or raises concerns of retaliation, adhere to the complaint process as outlined in your anti-retaliation policy by:

Taking every complaint seriously and documenting it
Asking the employee questions to gain a full understanding of their concern
Following through with the investigation process

Provide multiple channels for employees to raise concerns or report incidents of retaliation. For example, if an employee has a complaint against their direct supervisor, they will likely want to report it to someone else. Make it clear who they can go to—whether it’s an HR staff member or an alternate manager.

Encouraging open communication

Encourage open communication between employees and managers through regular interactions. Managers should schedule meetings and office hours so their teams know when to discuss concerns. Building this trust through consistent engagement will make employees feel more comfortable reporting discrimination, harassment, or retaliation if they do arise.

Many companies also establish an open-door policy to foster a transparent, communicative work environment. An open-door culture has many benefits, including learning about issues and addressing them early—but your policy must be carefully thought out to be successful.

Training management on anti-retaliation practices

Similarly to harassment training for managers, employers should hold separate training on workplace retaliation for those in leadership positions. This should cover:

The anti-retaliation policy
The discrimination and retaliation complaint process
Common behaviors associated with retaliation and how to identify and avoid them
Enforcing these policies and practices consistently across their teams
That they CANNOT punish an applicant or employee for filing a complaint

Receiving allegations of harassment or discrimination can lead to heated, emotional reactions, often getting managers in hot water. It’s easy to take this serious complaint personally and want to defend yourself or punish an employee.

Hence why training leadership on what they can and cannot do is vital to mitigating further issues!

At the end of the day, you can prevent workplace retaliation claims by creating a culture of open communication, transparency, and fairness accompanied by solid policies. And when you prioritize diversity, equity, and inclusion, the rest should come naturally, and you’ll lower your risk of discrimination and harassment issues to begin with!

Need guidance on establishing these policies and processes? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to learn how our HR consultants can help you create a safe, inclusive work environment!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

How to Ensure Lawful Drug Testing for Federal Contractors

April 21, 2023

With the constant changes in marijuana legalization from state to state, employers must always be on the ball with their substance use policies. But what about drug testing for federal contractors and their employees?

Employment drug testing has traditionally been a means to keep teams safe and productive and reduce liability. However, companies now have to ensure their practices and policies comply with federal, state, and local laws. Even as a federal contractor, you can’t simply administer drug tests at will.

So, what are a federal contractor’s responsibilities when it comes to drug testing? We explain this touchy area below.

What is the Drug-Free Workplace Act?

When discussing drug testing for federal contractors, we first must look at the Drug-Free Workplace Act of 1988 (DFWA). The DWFA requires that all federal contractors and grantees take steps to ensure a drug-free workplace.

Specifically, the act mandates that any organization that receives a federal grant or contract must establish a drug-free workplace policy and program, which includes several key responsibilities.

What should a drug-free workplace policy include?

First, employers must develop and distribute a drug-free workplace policy to all employees. This policy should clearly state the:

Prohibited manufacture, use, and distribution of controlled substances in the workplace
Consequences for violating this policy
Type of drug tests that will be conducted
Frequency of testing
Applicable procedures for challenging test results
Continued employment is conditional upon employee compliance

And of course, document this policy in your employee handbook and update it annually to ensure you remain compliant!

Visit the Substance Abuse and Mental Health Services Administration (SAMHSA) for the minimum drug-free policy requirements.

What does the DFWA say about drug testing?

The DFWA pertains to possession and use in the workplace but does not require federal contractors to conduct employee drug testing. It also does not prohibit you from hiring someone who uses illegal drugs outside of work.

The DFWA does provide some guidance for federal contractors who choose to implement a drug testing program. Specifically, the act requires that the drug testing program:

Use reliable and accurate drug testing methods—urine and oral fluid are the only testing types currently permitted!
Use certified labs accredited by SAMHSA
Conduct drug testing consistently across all employees and positions
Provide employees with notice of the drug testing policy
Offer employees an opportunity to explain or dispute the results of a positive drug test
Protect the confidentiality of drug test results
Provide employees with information and resources, including the effects of drugs on job performance and access to drug counseling and rehabilitation services

It is important to note that the Drug-Free Workplace Act does not provide specific guidance on the types of drugs that should be tested for, the frequency of drug testing, or the consequences of a positive drug test. These issues are generally left up to the discretion of individual federal contractors.

Are federal contractors required to test employees for cannabis?

There is no federal law that requires all government contractors to test their employees for cannabis or any other drug. However, some may be required to test their employees for drug use as a condition of their federal contract.

For example, companies that work on federal contracts that involve safety-sensitive positions or national security positions may be required to conduct drug testing as a condition of their contract. Those subject to regulations from federal agencies such as the Department of Transportation or the Nuclear Regulatory Commission may also be required to conduct drug testing, including for marijuana.

How can federal contractors conduct legal drug testing?

To ensure legal drug testing of their employees, federal contractors must comply with all applicable federal and state laws. This includes complying with the Drug-Free Workplace Act, the Americans with Disabilities Act (ADA), and any state laws that regulate drug testing.

Some states require employers to follow certain procedures when conducting drug tests, such as obtaining written consent from employees or ensuring that drug testing is conducted by a licensed laboratory.

In states where marijuana is legal, federal contractors must take extra care to ensure that their drug testing policies comply with state law. Some states have laws that prohibit employers from discriminating against employees who use marijuana for medical purposes if they have a valid prescription. Others allow employers to take disciplinary action against employees who test positive for marijuana use.

Always consult your legal counsel to ensure your drug testing policies and procedures comply with all applicable state and federal laws.

What should federal contractors do if an employee tests positive for marijuana?

Let’s look at a scenario: John is an employee of a federal contractor that has a drug testing policy in place. As part of the policy, John is required to undergo periodic drug testing. During a routine drug test, John tests positive for marijuana use. John’s job duties do not involve safety-sensitive activities, but the contractor has a zero-tolerance policy for drug use.

Does the employer have to terminate John immediately? Not necessarily!

First, the federal contractor should review its drug testing policy to determine what actions are required or allowed. If the policy provides for disciplinary action in the event of a positive drug test result, the contractor may be required to take disciplinary action against John. This procedure may include:

Notifying John of the test results and allowing him to explain or dispute the results
Provide him with information about counseling and rehabilitation services that are available
Termination of employment (if it will not expose the company to legal risks)

However, if John is located in a state that has legalized marijuana use, the contractor should also review applicable state laws to determine if there are any protections for employees who use marijuana for medical purposes or if recreational use is also legal.

For example, New York’s Compassionate Care Act protects employees with medical marijuana prescriptions and views them as having a disability under the New York State Human Rights Law.

Next Steps for Federal Contractors

If you’re a federal contractor unsure of how to proceed after an employee tests positive for marijuana use, first discuss the matter with your legal counsel. Your attorney can help determine what actions are required or allowed under applicable state and federal laws. They will also help develop a plan for addressing the situation in a manner that is legally compliant and consistent with the contractor’s policies and procedures.

And if you need guidance developing a compliant drug-free workplace and testing policy, contact BlueLion at 603-818-4131 or info@bluelionllc.com today! Our outsourced HR consultants have extensive experience navigating these delicate areas and helping employers protect their businesses AND employees.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Pay Transparency: Why It Matters + How to Embrace It

April 13, 2023

No matter how great a job and a company sound, there is one thing all smart and talented professionals want to know:

What does it pay?!

The days of employers hiding pay rates and employees simply accepting it are gone. Pay transparency—the practice of openly sharing information about your compensation practices with employees and applicants—is becoming the standard at companies of all shapes and sizes.

So, what exactly does pay transparency cover, and how can you embrace it in your workplace? Let’s dive in below.

What Does Pay Transparency Include?

Legislation driving pay transparency covers several areas and continues to shift and evolve in an effort to achieve pay equity:

Prohibiting Pay Secrecy Policies: Federal and state laws have made compensation discussions a protected concerted activity for many years, meaning employers can’t ban them.
Banning Salary History: A growing number of states and cities have instituted salary history bans so employers can’t ask about or consider a candidate’s previous pay.
Requiring Pay Ranges: Most recently, state and local laws have started requiring employers to share a wage or wage range with applicants and current staff members.
Reporting Compensation Data: The federal government doesn’t currently require organizations to report pay data, but they are considering new methods—so employers should stay wary.

Every pay transparency law varies by jurisdiction and many more are in the works. Always check with your local Department of Labor and legal counsel to ensure compliance.

Why Pay Transparency is a Must

Close the Wage Gap

Pay transparency holds companies accountable and ensures all employees—regardless of their gender, race, ethnicity, sexuality, religion, age, and other characteristics and forms of identification—are paid fairly.

You can help close the wage gap for protected groups, fighting inequities in the workplace. Instead, show employees, customers, partners, and your community that you focus on the skills and abilities necessary for the job and you’re committed to building a diverse workplace with the best person for the job

Grow Your Team

As businesses continue to face the Great Resignation, they must adapt to attract and retain top talent. When you promote pay transparency, you’ll show both candidates and current employees that you are dedicated to diversity, equity, and inclusion.

This will resonate with younger talent who align with your company’s values and want an employer that cares about building a diverse, equitable culture. And you’ll build trust with your existing team, who will know that their wages are fair.

Stay Ahead of Legislation

As mentioned earlier, we’ve already seen many states and local governments cracking down with salary history bans. With an increased focus on fighting the wage gap, it’s likely that legislation around pay transparency is not far off. Establish practices and policies today to ensure you’re compliant in the future—and mitigate the amount of work and risk.

5 Steps to Commit to Pay Transparency

1. Embrace It!

Don’t just wait to discuss pay with employees at review time—especially if they ask you about it now. Be receptive to these conversations by encouraging open communication between managers and their teams about pay, including regular discussions about performance and compensation. This will make employees feel valued and know they are compensated fairly for their work.

Encourage employees to negotiate for better pay and provide them with resources and support to do so!

2. Establish Clear Pay Policies

Develop well-defined policies around pay practices and communicate them effectively to managers and staff. These typically include:

How pay is determined
Pay range for each position
Opportunities for bonuses or other incentives
A clear process for employees to raise concerns or ask questions about pay

Again, always check with your state’s Department of Labor regarding pay transparency laws before you establish pay policies and practices.

3. Conduct a Compensation Audit

By conducting a thorough analysis of your company’s compensation structure and practices, you’ll identify any pay gaps. This allows you to make adjustments to ensure all employees are paid fairly and eliminate disparities. Your pay structure should be standardized and based on objective criteria such as job responsibilities, qualifications, and performance.

4. Provide Access to Salary Information

Share access to salary information with employees and candidates, including salary ranges for various positions and information on how pay is determined. When employees understand their pay, they are empowered to make informed decisions about their career paths. This could encourage them to take initiative in certain areas and further their professional development with specific courses and training.

5. Review & Update Pay Practices Regularly

Finally, review and update your pay policies and practices at least annually to ensure they are compliant and aligned with industry standards. This yearly review is a critical time to verify that team members are being compensated appropriately for their work.

Final Thoughts on Pay Transparency

Overall, embracing pay transparency requires a commitment from employers to be open and honest about their pay practices, as well as a willingness to regularly review and update those practices to ensure that they are fair and equitable for all employees.

This practice can take many forms, from providing salary ranges for various positions to making individual pay information available to employees. Ultimately, the level of transparency will depend on the organization’s culture and values, as well as its legal and regulatory requirements.

Do you need guidance in developing your pay policies and practices? Contact BlueLion today at info@bluelionllc.com or 603-818-4131 to learn how our HR consultants can help you build a more equitable workplace!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

5 Steps to Create a Successful Open-Door Policy

April 4, 2023

Your business might say it has an open-door policy, but what does that really mean? Have you established a policy with guidelines and actively encouraged employees to take advantage of it?

And are they using it? If not, your team may be nervous or uncomfortable sharing thoughts and ideas with leadership.

Or are staff constantly messaging or popping into their managers’ offices, disrupting efficiency and productivity? Then your policy may not be clear enough or contain sufficient boundaries.

Below, we’ll discuss why you need a workplace open-door policy and how to create an effective one.

What is an Open-Door Policy?

An open-door policy is a communication policy stating that leadership and management must keep their office doors open so employees can easily share feedback, ideas, questions, or concerns.

A workplace open-door policy is meant to foster transparent and efficient communication through which every team member can be heard.

For in-office teams, this could mean literally leaving doors open for employees. On the other hand, remote companies might require managers to leave their virtual doors open so their reports can message them at any time. Either way, an open-door policy conveys to employees that leadership is receptive to their input.

Pros of an Open-Door Policy

When outlined and handled correctly, an open-door policy will have a powerful ripple effect on your company by:

Promoting transparent communication between managers and employees
Building trust by making employees feel valued and heard
Increasing employee retention—as we know, valued employees stay engaged and loyal!
Preventing work disruptions and miscommunications, thanks to quick access to honest information
Speeding up workplace conflict resolutions
Improving productivity and efficiency by bringing obstacles and inefficiencies to light
Identifying employees with performance issues and taking corrective action

Cons of an Open-Door Policy

Of course, an open-door policy is not just a matter of managers slapping a sign on their doors telling employees to come in—they must set expectations with their teams! If it’s not well-defined, an open-door policy could:

Take up even more of managers’ time due to impromptu meetings
Cause employees to rely too heavily on supervisors
Lack the desired effect if employees don’t feel comfortable using it
Blur boundaries between business and personal and turn meetings into complaint sessions
Spur employees to go over their direct manager’s head

Fortunately, you can avoid these potential drawbacks with a solid open-door policy communicated clearly company-wide.

5 Ways to Make Your Workplace Open-Door Policy Successful

Be Approachable & Encouraging

Leaders can make their staff feel more comfortable talking to them by showing genuine interest in their ideas and feedback. Remember, employees may feel intimidated approaching you—especially if they have a concern or idea to share.

Consider ways you can consistently encourage your team to speak honestly with you. You may use a combination of feedback methods, such as surveys, 360 performance appraisals, and project debriefs. These regular conversations allow managers to show employees they value their thoughts and foster a culture of open communication.

Set Clear Open-Door Policy Rules

Establishing a clear workplace open-door policy will make employees more comfortable and likely to use it and prevent others from abusing it. Your company’s policy should outline:

Which issues can be discussed and which are not acceptable use of this time
Who to address first (e.g., their direct supervisor), and who to turn to if the first point of contact is unavailable or can’t help
Communication methods based on the topic/issue
Specific days and/or office hours for this purpose OR how to schedule a meeting

Be specific by listing different matters and advising employees on when and how to bring them to a manager and who to go to. For example, who should they approach to voice complaints or concerns? Which subject matter experts can answer their questions? What if they have a personal issue affecting their work? Consider creating a list of contacts for each type of concern and distributing it to all employees.

Don’t just post your open-door policy on the company intranet. Include it in your employee handbook (which should be updated and reissued annually!) and pin it in your team chat app, such as Slack or Teams, for easy access.

Create a Positive & Compassionate Environment

Nervous and uncertain employees may feel they must always ensure they do everything right, afraid to make mistakes. But staff members dependent on their managers could consume a large chunk of your time.

You can prevent this by showing employees it’s ok to make mistakes. Let them know this is essential to growth and learning, and taking responsibility for their errors is crucial. They need to know they won’t get in trouble for every mishap.

Develop a Conflict Resolution Process

When you create a workplace open-door policy, you and your leadership team should expect occasional workplace conflicts—which means you must have a conflict resolution process.

An employee may approach their direct manager with a complaint about a peer. Or, an employee may even go over their immediate supervisor if they have a concern or conflict with them. If this happens, the responding leader should take a mediator role, encourage the team member to talk to their manager, and sit down with both parties for a conversation to help resolve the problem.

Many conflicts can be resolved with early intervention and good communication. However, some issues can grow and require more hands-on solutions, such as a performance improvement plan. Be sure to document everything and have a disciplinary action plan in place.

Train Leaders on the Open-Door Policy

Even if your company has a well-thought-out open-door policy, it won’t go far if your executives and managers don’t know how or aren’t willing to handle it appropriately. This will negatively impact morale and trust between managers and employees.

Instead, gain buy-in from your leadership team by holding a separate training session on the process. Highlight its importance and how it can benefit them and their teams. Guide management on:

How to take an empathetic approach to employees’ feedback and ideas
Setting boundaries and expectations to help them protect their time and maintain productivity
Handle specific situations, particularly delicate ones like conflicts and harassment claims

People and leadership skills don’t come naturally to everyone. Some managers may need additional training on soft skills to help them become better listeners, more emotionally intelligent, and more approachable overall.

Final Thoughts on Open-Door Policies for Businesses

Do you have a small growing business? Or are you hiring your first employee? Introducing an open-door policy early will help foster a positive workplace culture from the start!

Or maybe your company is established and doesn’t currently have a transparent culture, but you want to change that. Now is the perfect time to build trust and improve morale, and an open-door policy is a great first step. However, employees may need more work and encouragement to use it.

Either way, an open-door policy shows employees that you value their ideas, opinions, and concerns. If you need assistance creating or updating your company’s policy, contact BlueLion today at 603-818-4131 or info@bluelionllc.com to learn more about our outsourced HR services and projects!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Building a Culture of Respect with Political Activity & Civility Policies

March 28, 2023

As employers strive to create more welcoming and safe environments, there are two not-so-traditional policies that every forward-thinking employer should add to their employee handbooks: A Political Activity Policy and a Civility Policy.

Rather than policing people’s free speech, activities, and opinions, these policies simply set guidelines for building a culture of respect and inclusivity. Read on to understand what these rules should encompass and how to develop your newest policies.

Political Activity Policy

We’re all too aware of the countless hot-button political topics. From productivity disruptions to workplace conflicts, you must ensure political discussions and activities don’t interfere with your work environment or damage your company’s reputation.

Enter: Your political activity policy! This employee handbook must-have helps prevent conflicts between employees with differing political beliefs and promotes an inclusive and respectful workplace culture.

What Should a Policy on Political Activities Include?

Details will vary depending on your workplace culture and industry, and you must proceed cautiously to avoid violating employees’ First Amendment rights. However, your political activity policy can:

Ban all political campaigning and soliciting on the business premises
Prohibit employees from using company resources or using the company name without prior authorization
Forbid political attire and decor/messaging in the office (e.g., clothing, buttons/stickers, flags, posters, etc.)
Require workers to ensure their political activities do not negatively impact the business
Make it clear that harassment or discrimination based on political beliefs is unacceptable and will not be tolerated

Choose Your Words Wisely

When creating a policy on political activities in the workplace, it is vital to use language that is clear, concise, and free of bias or discrimination. The policy should be easily understood by all employees, regardless of their political beliefs or background.

Some key considerations for language in a policy on political activities in the workplace include:

Avoiding partisan language: Do not promote or oppose any particular political party or candidate. Focus only on behavior and conduct in the workplace.
Avoiding discriminatory language: Ensure your policy does not discriminate against employees based on their political beliefs or affiliation.
Being specific and clear: Clearly define what constitutes political activity, such as political campaigning or advocacy, and provide specific guidelines for acceptable and unacceptable behavior.
Being consistent: Apply the policy consistently to all employees, never using it to target or discriminate against specific employees based on their political beliefs.
Encouraging them: Let employees know you support their right to participate in politics outside work property and time.

Overall, the language used in a policy on political activities in the workplace should promote a positive workplace culture that is respectful, inclusive, and compliant with all applicable laws and regulations.

Addressing Political Activity in the Workplace

You may have employees who conduct political activity at work despite your policy. Similar to the policy language noted above, address the employee by:

Focusing on their behavior rather than their beliefs or affiliations
Reminding them of the political activity policy and why the behavior was inappropriate
Discuss the potential consequences of violating the policy, which may include disciplinary action, up to and including termination
Explain that they are welcome to engage in political activities outside of work

Learn more about best practices for handling political discussions and activities in the workplace.

Civility Policy

Another policy popping up in more and more employee handbooks is a civility policy. This set of guidelines establishes expectations for respectful and professional behavior in the workplace. It outlines the types of conduct that are considered inappropriate or unacceptable, benefiting your company by:

Fostering a positive and respectful work environment—which can boost morale and productivity
Prevent incidents of workplace harassment, discrimination, or violence, along with legal liabilities
Showing employees, customers, and partners that you’re committed to creating a safe and respectful work environment

What Should a Civility Policy Include?

Again, your policy will vary depending on your workplace culture and industry. Below are some general examples of what a civility policy may include.

Acceptable Behavior:

Treating colleagues, clients, and customers with respect and dignity
Communicating clearly and respectfully in all forms of communication
Listening actively and being open to different perspectives
Resolving conflicts constructively and professionally
Maintaining a safe and healthy work environment

Unacceptable Behavior:

Verbal abuse, such as shouting, swearing, or name-calling
Bullying or harassment, including sexual harassment, discrimination, and inappropriate jokes
Disrespectful behavior, such as interrupting, ignoring, or belittling others
Preventing various perspectives and observations, including those about job performance and civility
Aggressive behavior, including physical violence, threats of violence, throwing objects, and slamming doors
Inappropriate use of technology, such as sending offensive emails or texts

Vague descriptions like “being rude” is not enough—your policy should define unacceptable behavior with specific language, as in the above examples.

Addressing Incivility in the Workplace

When it comes to handling uncivil behavior, keep in mind that consequences must:

Match the offense, and not all offenses are equal
Be based on observed actions, not intentions to participate in unacceptable behavior
Comply with federal and state labor laws
Be fair and consistent for all employees

The disciplinary process may involve several steps, including:

Informal resolution: You might start by encouraging employees to resolve conflicts through open communication and constructive dialogue.
Formal complaint process: Provide a standard procedure for employees to report incidents of unacceptable behavior. This may involve an investigation and appropriate measures such as coaching, counseling, or mediation.
Disciplinary action: Outline the consequences for employees who engage in unacceptable behavior. This may include verbal or written warnings, suspension, termination, or other appropriate measures depending on the severity of the behavior.

Additionally, employers should support employees who are victims of uncivil behavior with counseling or other resources.

Adding policies on political activity and civility in the workplace will help you build a positive culture and maintain morale and productivity. Of course, these can be sensitive areas, and you must ensure all language and rules are compliant.

So if you need assistance developing these policies or updating anything else in your handbook, contact BlueLion at 603-818-4131 or info@bluelionllc.com!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

5 Ways Small Businesses Can Recession-Proof Their Teams

March 23, 2023

Are we in a recession? Technically, not yet. Despite this, many Americans are concerned. A recent poll found that:

46% think the economy is currently in a recession
22% don’t believe we are in one but will be within a year
41% are shifting financial behaviors to prepare for a recession
41% say they aren’t able to prepare but wish they could

While many consider the recent layoffs, particularly in the tech industry, as a sign of an impending recession, the unemployment rate is only 3.6% as of February 2023. For context, from 1948 until 2023, it averaged 5.73%.

That said, we already know that people are concerned about the impact of inflation. And with the unprecedented events of the last three years and the uncertainty of our economic future, it’s wise to recession-proof your small business and employees. Keep reading for five key tips.

Assess Your Personnel & Retention

Whether in or preparing for a recession, it’s always a good time to evaluate your team from leadership to staff level. Consider:

Who are your top performers, and how can you retain them?
How is each employee and department’s productivity?
Who is struggling and why?
Are they receiving the necessary support and resources they need to succeed?
Do you have the right people in the right positions?

Collaborate with your internal human resources department or invest in an outsourced HR consultant to ensure you’re making optimal hiring and employee retention decisions. This will help you scale appropriately and lower your chances of having to make layoffs later.

Hire Strategically

If you are concerned about your small business’s payroll costs, consider alternatives to full-time employees. Outsource some work to freelancers or independent contractors. This is ideal for specific tasks and projects that ebb and flow.

Consider hiring part-time employees, or even remote employees (both full- and part-time) in locations with a lower cost of living. However, check each state’s wage and labor laws and other requirements you’ll need to follow regarding foreign qualification registration, payroll taxes, or sales taxes.

Communicate Openly & Often

Frequent and transparent communication is crucial to maintaining positive morale and preventing employee stress as you recession-proof your business. If they are left wondering about the state of the business, assumptions and rumors about everything from job security to essential processes will swirl. This could result in unnecessary panic, workplace conflicts, and turnover.

Instead, share regular updates to:

Inform employees how the business is performing
Share what you’re doing to take care of them
Remind them of the company mission and values to strengthen the feeling of connection
Recognize those who have stepped up even during challenging times
Share concerns honestly and delicately, along with steps of how you will handle them

Get Employee Insights

Speaking of employee communication, why not look to your team for input first? After all, they have direct insight into your daily operations. Ask them for ways to reduce business expenses, streamline processes, and ideas for future growth. Can you:

Eliminate certain tools, equipment, or subscriptions?
Find more affordable options?
Build new partnerships?
Enter a new market?
Add a new solution with high demand?

Your employees will know best! Plus, asking for their input will make them feel valued.

Provide Tools & Resources

Help employees prepare for a recession by reminding them of the available resources and, if possible, offer other financial support. This doesn’t necessarily mean your small business has to incur new expenses—simply promote existing programs, like:

Employee Assistance Program (EAP): This typically includes some counseling services, referrals, and other mental health support for those struggling.
Health & Wellness Perks: Whether fully subsidized or discounted, additional benefits like gym memberships can help employees stay healthy while saving.
Financial Resources: If you offer one, encourage workers to take advantage of their retirement accounts and advisors. Resend the plan information and enrollment instructions.

We may not be in a recession yet, but if recent history has taught (or reminded) us of anything, it’s that we must prepare for the unknown. One of the most important ways to protect your small business is by first protecting your employees. By operating with your team front-of-mind, you’ll:

Foster a positive workplace culture and loyalty even during tough times
Promote growth thanks to an engaged team
Reduce personnel and financial risk
Lower business expenses without having to lay off employees

Do you need guidance in optimizing your team’s efficiency, preparing for a recession, and supporting employees during uncertain times? Contact our HR professionals at 603-818-4131 or info@bluelionllc.com today to learn how we can help!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.