Author Archives: Stephanie

Insulating Your Business & Employees Against Inflation Effects

March 15, 2023
March 15, 2023

What are the effects of inflation on businesses and employees? And what can employers do to stay ahead and secure both their company and their people? 

For one thing, if you’re not already considering inflation, how it affects your team, and what you can do to alleviate the strain, you’re already behind. Perhaps you haven’t made any changes yet because you simply don’t know the best strategy. Or perhaps you haven’t thought about it at all.

In a July 2022 Society of Human Resource Management (SHRM) study, 87% of employers said their primary concern was their employees’ well-being. However, more than half of those surveyed said they’re either not considering inflation or are unsure if inflation will be considered in annual pay raises.

Interestingly enough, small organizations (with less than 100 employees) were most concerned for their employees and were more likely to consider inflation in annual pay increases.

Essentially, employers that adjust their strategies accordingly will be most successful. Those that don’t will face personnel and operational challenges down the line. 

Let’s take a look at the impact of inflation on your company and team and where you can make the most difference for them.

Potential Effects of Inflation

Employee Retention & Resignation: When the economy is good, employers are typically able to pay better wages and employees are generally more satisfied and willing to stay. But when costs of living skyrocket, workers may be driven to seek opportunities with higher pay and better benefits.

People Problems: Of course, to manage and prevent employee retention issues, your business may need to increase wages and benefits. Inflation could also impact how and when you hire or terminate employees, based on how you need to manage costs.

Increased Costs of Goods & Services: Inflation could also cause your vendors and suppliers to raise their costs due to their own expenses. Be sure to monitor these changes and negotiate or find new partners when necessary.

The Bottom Line: All of the above can impact your business profits significantly, causing your company to shift its own operations and prices. Stay current with inflation and patterns so you can better prepare.

5 Ways to Combat the Effects of Inflation

At the end of the day, inflation results in a vicious circle of events. But when you have the right human resources partner to guide you on personnel decisions and you put your people first, you can insulate your business and team more effectively.

Compensation Strategy

While it may seem obvious, many employers are still failing to keep up with the rising inflation. Compensation is still the primary method for retaining employees. 

Consider your team’s wages and salaries as well as bonuses. How can you structure them to ensure employees live more comfortably and experience less financial stress? If you can, raising wages will go far in helping you stay competitive in the job market. 

Health Benefits

If your employees’ well-being is front-and-center, so should their health benefits. Offering more affordable medical insurance along with dental and vision can significantly reduce their health concerns and costs. 

You might wait to increase employees’ premiums or encourage them to opt for health savings accounts (HSAs) to make their medical costs more manageable. Some are even offering HSA matches!

Retirement Plans

Another major area of opportunity is retirement plans. While people understand the importance of saving for retirement and many are unsure how they will do so considering inflation effects, this is often one of the first places employees cut costs. They are forced to prioritize their essential living costs, like mortgage or rent, utilities, and food. 

Many employers are working to educate their teams and offer additional financial resources and benefits. Some are even increasing employer contributions to support employees in this difficult economy.

Employee Benefits & Perks

In addition to healthcare and retirement plans, employers should consider unique benefits and perks that will help their employees save more money and time. Impactful benefits include: 

  • Tuition and student loan assistance
  • Childcare
  • Adoption and fertility coverage
  • Flexible schedules and PTO

And if you haven’t updated your benefits package past the traditional must-haves, it’s well past time to do so. Many believe their employers are not keeping up quickly enough.

Remote Work

One more influential perk that has been a main theme since the start of the COVID-19 pandemic is remote work. While many organizations have started requiring employees to return to the office, others are hesitant due to inflation effects. 

By allowing your team to work from home, they’ll save on commuting and fuel expenses at the very least. Many will also save on food costs by no longer buying lunches or coffee.

Do you need help to combat inflation and better support your staff? Our HR specialists will assess your company’s situation and team to provide you with the best strategies and protect your organization. Contact BlueLion 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.

Demystifying the Public Service Loan Forgiveness Program

March 8, 2023
March 8, 2023

With all the loan forgiveness talk and changes over the last few years, things can get confusing. If you work in the public service sector, you may be wondering about the Public Service Loan Forgiveness (PSLF) Program and if it’s still active.

What is it? How do you know if you qualify? And how do you apply? 

Keep reading for our breakdown of the latest updates on PSLF and to find out if you qualify!

What is Public Student Loan Forgiveness? 

PSLF is a federal program intended to provide debt relief to teachers, nurses, firefighters, military members, and others working for governmental or nonprofit employers.

Qualifying employees can receive tax-free student debt relief after making 10 years’ worth of payments (or a total of 120 payments) while working for an eligible employer.

Who is Eligible for Public Service Loan Forgiveness?

While the Education Department (ED) will implement many permanent changes to the PSLF program starting this July, many of the current requirements will remain. Below are the essentials.

Eligible Loan Types

First and foremost, PSLF only applies to Federal Direct Loans, not private student loans.

You can consolidate most other federal loans (like Federal Family Education or Perkins loans) into a Direct Consolidation Loan to qualify for PSLF. However, don’t do this if you qualify for Perkins loan cancellation, which forgives debt after five years of public service. You can still apply for PSLF with your other federal student loans.

Eligible Employers

You must work for a qualifying employer full-time, which is generally defined as at least 30 hours per week. Those working more than one qualifying part-time job simultaneously will be considered full-time if they average a combined 30 hours per week.

Eligible employers include: 

  • Government agencies at any level (i.e., federal, state, local, or tribal), including the military
  • 501(c)(3) organizations
  • AmeriCorps or the Peace Corps
  • Not-for-profit organizations without 501(c)(3) status that provide qualifying public services
  • Religious organizations

You can use the employer search tool to confirm that your employer qualifies for PSLF. Then, just complete and submit an employment certification form to MOHELA Servicing, which oversees the PSLF program and will service your loans from now on. 

While not required, you should submit a new form yearly or when you start a new job to ensure your records are updated. Or, you can apply for PSLF once you’re eligible and certify your employment retroactively.

Eligible Payments

To qualify for PSLF, you must have made 120 payments:

  • After October 1, 2007
  • Under an income-driven repayment (IDR) plan
  • For the full amount due
  • Within 15 days of your due date
  • While employed full-time for a qualifying employer

Additionally, payments:

  • Do not count if made while you are in school, during a grace period, in deferment, or in forbearance
  • Do not have to be consecutive (e.g., you pause while in forbearance or change jobs from an eligible to an ineligible employer)
  • Can be early or lump-sum to apply to future months (e.g., If your monthly payment is $100, and you pay $600, it covers 6 months of payments.)

Additionally, the government put all federal student loans into forbearance and payments are not due again until as late as summer 2023. If you have a Direct Loan and have worked for a qualifying employer during the COVID-19 forbearance, you’ll receive credit as if you made on-time monthly payments in the correct amount while on a qualifying repayment plan.

Application Eligibility

Before applying for PSLF, you must:

  • Meet all the above qualifications 
  • Be working for an eligible employer when you apply and when your loan is forgiven
  • Submit an employment certification form for your current employer (and all others you had while making the 120 payments if you haven’t submitted the form regularly)

You’ll receive a notification from MOHELA once it receives your application. You do not need to make loan payments while your application is being processed.

What is the PSLF Limited Waiver?

The initial limited waiver expired on October 31, 2022, but a similar IDR waiver extends most of the provisions until May 1, 2023. These temporary rules allow borrowers to count any payment toward federal loans toward PSLF—not strictly IDR plans. This includes payments:

  • On Federal Family Education Loans or Perkins loans after 2007
  • Previously rejected because they weren’t considered on time
  • Made prior to consolidation on non-Direct Loans you consolidated before the limited waiver period

The ED will also be reviewing previously rejected PSLF applications. Those who are now eligible for PSLF and haven’t yet applied will also receive notification of the temporary adjustments.

Qualifying borrowers are those who: 

  • Have Direct Loans (If this is you, you’re all set—simply verify your employer’s eligibility and submit a PSLF form through your loan servicer by May 1, 2023!)
  • Previously consolidated into a Direct Loan
  • Consolidate into a Direct Loan by May 1, 2023
  • Have Grad PLUS loans
  • Have Parent PLUS loans

Those with FFEL or Perkins loans must consolidate into a Direct Loan, verify their employer is qualified, and complete a PSLF application by May 1, 2023.

What Permanent PSLF Changes Can We Expect?

Starting on July 1, 2023, the ED will implement many updates to the PSLF program. One highlight is that borrowers who meet public service employment qualifications can get credit for:

  • Late, partial, and lump-sum payments
  • Months spent in certain types of deferment or forbearance (e.g., military service, economic hardship, or cancer treatment)

Additionally, the new rules will include simplified criteria making it easier for borrowers and their employers to certify employment, such as a single standard of full-time employment at 30 hours a week.

Learn more on the PSLF fact sheet.

While the PSLF has historically been convoluted, things are looking up for public service workers with federal loans. Between streamlined processes and requirements, the program will hopefully work as it was originally intended—helping those in meaningful and critical, yet often low-paying, careers.

Do you and your employer need guidance navigating these shifting rules? Learn more about the PLSF program or reach out to BlueLion today with questions 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.

How to Approach Employees Calling in Sick

March 2, 2023
March 2, 2023

Managing employee attendance is vital to maintaining a productive workplace. Employees calling in sick can disrupt workflow and create additional work for other team members. 

And if you have certain staff members regularly using sick leave, you might become suspicious—sometimes rightly so. In a 2020 Zippia survey of 2,000 American workers, 52% admitted lying about being sick to get out of work. 

How is this affecting companies? According to the Centers for Disease Control Foundation, productivity losses related to absenteeism cost U.S. employers a whopping $225.8 billion annually ($1,685 per employee).

On the other hand, employers must approach these situations with empathy and understanding, as employees may legitimately need time off to recover from illness. They could also be dealing with personal matters like mental health or caring for a family member.

Below, we’re sharing some tips for identifying when employees may be lying about their illnesses, preventing people from falsely calling out sick, and how to handle those who call out often.

Signs that an Employee is Lying About Being Sick

Trusting your employees and believing them when calling in sick is important. However, there may be situations where you suspect an employee is lying about their illness. Here are some red flags to look out for:

  • Inconsistencies in the story: If an employee’s story about their illness changes or doesn’t add up, it could be a sign they are lying.
  • Emerging patterns: An employee who is often absent will likely run out of good excuses for calling in sick, resorting to the common “stomach bug,” “headache,” or other vague illness.
  • Social media posts: Did they post pictures on social media of themselves out and about? Probably a safe bet they’re not really sick.
  • Excessive absences: A team member who frequently calls out sick could be abusing your sick leave policy.
  • “Funny” timing: Workers often call out sick right after a holiday (1 in 3 do!) or when their vacation leave requests are denied.

Tips for Preventing Employees from Falsely Calling in Sick

Preventing employees from falsely calling in sick can be challenging, but there are some steps employers can take to reduce the likelihood of this happening:

Have a Clear Sick Leave Policy

Communicate your company’s sick leave policy and what is expected of them when they call out sick. Practice consistent and fair enforcement of the policy company-wide. It should answer: 

  • How should they notify their manager? 
  • Do they need to address specific projects or tasks? 
  • What happens if they use up their sick leave?

Work closely with your HR department to ensure your policy is compliant, as these laws vary by state. If you have an employee calling out sick frequently, but they have a legitimate reason, remind them of their right to unpaid sick leave through the Family and Medical Leave Act (FMLA)

Require a Doctor’s Note

You might require a doctor’s note as part of your organization’s sick leave policy or request one from an employee calling in sick frequently. While the note does not have to contain specifics about the individual’s medical condition, it will verify their illness. This can deter employees from abusing sick days.

And if they refuse to provide a doctor’s note, it’s typically a good indicator that your suspicions were correct. Which means it’s time to address the issue (keep reading for how to have that conversation).

Provide One PTO Policy

Another option is to merge all leave—sick days, vacation time, and personal days—under one paid time off policy. This will force employees to rethink calling out “sick” because it would use up their potential vacation days.

Using a blanket PTO policy benefits both your business and employees by:

  • Avoiding the need to track reasons and types of paid leave
  • Providing team members with more flexibility
  • Allowing for a simpler policy for companies with employees in multiple jurisdictions

Encourage a Healthy Work Environment

Provide resources for employees to maintain a healthy lifestyle, such as nutritious snacks and an on-site gym or yoga classes. These wellness-focused perks will help people stay physically and mentally fit, reducing the need to call out sick for illnesses or mental health days. 

Plus, your staff will know you care about their well-being, boosting morale. When you have a positive workplace culture, your team won’t want to lie about being sick!

Be Flexible

Consider offering flexible work arrangements, such as working from home or flexible schedules, to make it easier for employees to manage their responsibilities without calling in sick. The beauty of either option is that there are many variations of remote work and alternative schedules, which means flexibility for you, too!

Not to mention, these are the types of benefits workers are demanding today—and they work! Just check out the stats:

  • 39% of workers said being more productive is a benefit of flexible work. (Workable)
  • 56% of employees report fewer absences, while 50% report using fewer sick days. (Zippia
  • 75% of employees state they have a better work-life balance working remotely. (Zippia)

Being flexible also means giving employees other options if you deny their vacation time due to scheduling needs. Instead of simply declining, work with them to take different days off.

What to Do with an Employee Who Constantly Calls Out Sick

If an employee frequently calls out sick, address the issue promptly and appropriately. Here are some steps you can take:

Have a Conversation

Speak with the employee to understand why they call out sick so often. Follow these steps for a productive discussion about their absences: 

  1. Schedule a private meeting: Request a private meeting with the employee to discuss their attendance as soon as you recognize an issue. Ensure that the meeting is scheduled in a location where both of you can have a conversation without distractions.
  2. Approach with empathy: Begin the conversation by acknowledging the employee’s contributions to the organization and expressing concern for their well-being.
  3. Discuss their attendance records: Share the employee’s attendance record and highlight the frequency of their absences. You can also provide a copy of the attendance policy to the employee.
  4. Ask for clarification: Ask the employee if anything specific is causing their frequent absences. They may have an underlying health issue or personal matter that they haven’t discussed with you. While they are not legally required to discuss health details with you, conveying compassion could help get to the heart of the issue.
  5. Reiterate expectations: Remind the employee of the attendance policy and the impact that their absences have on the team and organization. Reinforce the importance of being present at work.
  6. Follow up: Schedule a follow-up meeting to check the employee’s attendance and provide any necessary support.

Provide Support

If the employee is experiencing a medical condition or another personal matter causing them to call in sick frequently, provide them with resources and support to help them manage their health. This might include:

  • Referring them to your employee assistance program (EAP)
  • Referring them to healthcare professionals or resources
  • Offering a flexible work schedule or remote work option
  • Adjusting their workload

Depending on the employee’s situation, your company may need to provide accommodation under the Americans with Disabilities Act (ADA) or FMLA. Or, you can help them apply for leave if necessary.

Providing support is not only the right thing to do, but it can also positively impact the employee’s well-being and engagement at work. By offering resources, you can help the employee feel valued and supported, which can reduce absenteeism, increase productivity, and improve overall performance.

Take Disciplinary Action

If an employee continues calling out “sick” after you’ve addressed the issue and provided support, it’s time to start the disciplinary process by:

  1. Giving a warning: Make it clear that their behavior is unacceptable. Be sure to document the conversation and warning and provide the employee with a copy.
  2. Establishing a plan: Work with the employee to develop a plan to improve their attendance. This could include setting clear expectations and establishing consequences for future absences. You might also put them on a performance improvement plan if the issue is serious enough or if there are other behavioral concerns.
  3. Monitor progress: Regularly monitor the employee’s attendance and behavior to ensure they meet the expectations set out in the plan. Provide feedback and support as needed.
  4. Take further action if necessary: If the employee’s behavior does not improve, consider taking further disciplinary action, which could, unfortunately, include termination.

Managing sick leave can be challenging for employers, but with clear policies and open communication, it’s possible to maintain a productive workplace while supporting employees’ health needs. You can create a supportive and productive work environment by identifying signs of lying about illness, taking steps to prevent false sick leave, and working with employees who have frequent absences.

Do you need help developing or updating your sick leave policy and processes? Discover how our outsourced HR team can help you navigate those sticky situations by contacting us at info@bluelionllc.com or 603-818-4131 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.

11 of the Top Interview Questions to Ask Every Candidate

February 22, 2023
February 22, 2023

Job interviews can be a nerve-wracking experience for both the interviewer and the interviewee. As a hiring manager, it is important to ask the right questions to ensure that you make an informed decision and hire the best candidate for the job.

However, not all interview questions are created equal, and some should be avoided altogether. In this blog post, we’ll discuss:

  • Why effective interviews are essential
  • 11 of the top interview questions to ask 
  • Which questions to avoid

Why Effective Job Interviews are Essential

Just because an applicant looks great on paper doesn’t mean they’re the best fit for the position or your organization. Even some highly intelligent, skilled people have personality and attitude flaws that could negatively impact your work environment.

You’ll avoid a wrong hire—and future headaches—by conducting a thorough interview that explores a prospective employee’s abilities and approach. Ideally, an effective interview leads to a great new team member who sticks around and grows with the company.

The top interview questions will provide valuable insights into the candidate’s:

  • Relevant experience: Do they have the knowledge and skills necessary to succeed in this role? Does their background demonstrate the ability to learn, grow, and advance?
  • Problem-solving skills: Are they a strong critical thinker focused on solutions?
  • Approach & attitude: How do they handle change and unexpected challenges? Workplace conflicts?
  • Interpersonal skills: Does this individual’s personality align with your company culture? 

As you come up with your interview questions, ensure you understand the role you’re hiring for and tailor them to the position and level. For example, an entry-level marketing associate’s interview should look quite different from a manager or executive-level role, which would focus on more leadership and strategic-based areas.

Be patient, and don’t be afraid to use silence during the interview, even if it gets uncomfortable. This can be a powerful technique for drawing more out of a candidate who gives overly-general answers.

11 of the Top Interview Questions to Ask

1. Can you tell me about your previous experience in this field/position?

This is often the starting interview question. You want the candidate to showcase their relevant experience and explain how it relates to the position they are applying for. Listen for:

  • Specifics and examples from their last job
  • Their level of skills and knowledge—how much training will they need?
  • Their excitement and passion for the role

2. Why did you choose this industry/profession?

And that leads to our next point: You can educate and train on skills, but you can never force someone to love their job. If they don’t sound excited about it now, chances are it’s not the right role for them. 

An employee who doesn’t enjoy what they do is probably only doing it to pay the bills. They will be disengaged, unsatisfied, and negative, creating a negative environment for everyone else.

Just because someone is good at something doesn’t mean they like it or should even be doing it. So ask interview questions about their inspiration, how they got here, and what they love about what they do. They’ll be more productive and likely to last if they’re passionate about their job.

3. What drew you to this role and our company?

Similar to the last interview question, you want to know why this role and your company. Again, make sure the candidate is not just doing it for the paycheck. 

Were there specific projects and responsibilities that piqued their interest? How do they feel they can contribute to your team and move the business forward?

What do they love about your company? Is it your products or services or unique business model?

The candidate’s answer will start to paint a picture of whether they’re a good fit for the role and your company culture.

4. What are your long-term career goals?

This question allows you to assess whether the candidate’s career goals align with the position and the company’s goals. If they’re not aligned, you could end up with an unsatisfied employee later. Or, they may quickly leave, and we all know how costly high employee turnover is!

Additionally, the interviewee’s response will show you if they’re a goal-driven planner or if this is just a pit stop on their career path. 

Bonus: If the candidate is the right fit, their answer will give you an idea of how to help them along their journey and increase the chances of retention.

5. How would you explain our business to a prospect?

This interview question is a unique way to determine whether the candidate has done their research and is genuinely interested in the company.

How well do they know your business and what sets it apart? Do they understand what you do and the company mission? 

A candidate with a meaningful, correct response also demonstrates their demeanor and how they would handle clients.

6. What is your ideal work environment?

When selecting job interview questions, several should cover cultural fit. Part of this is determining what kind of a workplace they’re looking for.

Does the potential employee share the company’s values? Do your business practices align with their preferences? 

For example, if a candidate is looking for a highly flexible schedule, but your industry or the particular role requires set hours, you’re probably not suitable for each other. Or an employee who prefers to work solo may do well in a position that requires significant collaboration.

Even hiring a talented professional can lead to low quality and productivity as well as a toxic atmosphere if they don’t blend with your culture.

7. What qualities are you looking for in a manager?

Not only do you want to ensure the role and company are a right fit for this candidate—you want to ensure YOU are! This will give you an idea of their work style and what kind of support they prefer.

Consider the following as you absorb the interviewee’s answer to determine whether they suit your management style and the role.

  • Do they like autonomy and prefer a hands-off manager?
  • Or does it seem like they’ll need more hands-on direction and training? 
  • Do they want regular check-ins? 
  • What are their ideal communication style and frequency?
  • What motivates them to do their best work, and how could you, as their manager support them? (You might even ask this one as a follow-up question!)

8. Can you share a time when you had to overcome a difficult situation at work?

This question assesses the candidate’s problem-solving skills and ability to handle stressful situations.

For example, their computer or program crashed while working on a big project. What did they do—after a bit of swearing and possibly crying (hey, we’re all human!)? 

Were they able to collect their thoughts and work toward a solution? Did they find the relevant resources and support? Did they contact the client to address the issue immediately and assure them it’s being resolved ASAP? 

Or did they give up and storm out of the office?

You can tailor this question to the role. But generally, you’re looking for an employee who can roll with the punches and solve problems logically, professionally, and efficiently—even if they have a brief panic first.

9. Can you share a time when you encountered a workplace conflict? How did you handle it?

Regardless of what level of position you’re interviewing for, an interviewee’s answer to this question indicates their ability to handle interpersonal relationships in a professional setting. 

How will they engage with their peers? If it’s a management role, how will they respond to conflict among their direct reports?

This could even apply to those in client-facing roles. How does the candidate handle unhappy customers? Can they de-escalate the situation with empathy and improve the client’s experience? 

10. Why did you leave/are you leaving your most recent job?

A candidate’s response to this question will give you insight into their attitude. 

Look out for those who speak poorly of their previous employer, which could indicate a negative, angry, and/or entitled attitude.

Perhaps they are leaving because they want to pursue a more advanced role and new challenges, but there were no applicable opportunities at the organization. This could signify a hardworking, driven employee seeking professional growth.

11. Do you have any questions for me?

Finally, it’s time for the candidate to ask their interview questions! Hopefully, they won’t only ask about the pay, which is often a red flag.

A genuinely interested candidate will ask you more about the company, how things work, and the culture. They might be curious about the role specifics, such as what a typical day looks like or what it could look like in the future. 

These questions are a good sign that the prospect is thoughtful, likes researching, and takes the opportunity seriously. It also shows they’re unafraid to ask questions and learn—vital in every job!

Interview Questions to Skip

There are several wrong interview questions that, if asked, could get you and your company into legal hot water. Asking a candidate about the following areas is discriminatory: 

  • Age (though you can ask if they are over 18)
  • Marital status
  • Children or pregnancy
  • Religion
  • Race or nationality
  • Gender
  • Sexual orientation
  • Disabilities (you can ask if they are able to perform all required job duties)
  • Salary history or arrest records (learn more about salary history and background check bans)

To be safe, focus on interview questions related to the role and business. Even if a seemingly innocent comment or question leads a candidate to share any of this protected information, your company could still be responsible for discrimination. 

Simply put, create an interview plan and stick to it to ensure you don’t accidentally ask discriminatory questions.

Final Thoughts on Job Interview Questions

In conclusion, asking the right interview questions can make all the difference in finding the best fit for both the role and the company. As an interviewer, it is important to focus on questions that assess the candidate’s relevant experience, problem-solving skills, attitude, and ability to handle interpersonal relationships. 

You’ll also need to avoid questions that are discriminatory or invasive. By following these guidelines, you can conduct a successful and eye-opening job interview.

Do you need interview advice? Or are you looking for someone to assist with your interviewing and hiring processes? Learn about BlueLion’s outsourced HR solutions or contact us today at 603-818-4131 or info@bluelionllc.com to find out 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.

Lifestyle Spending Accounts: Elevating Employee Wellness Benefits

February 14, 2023
February 14, 2023

More employers are coming up with creative ways to attract and retain talent. Many are now implementing lifestyle spending accounts, also known as lifestyle savings accounts.

Adding lifestyle spending accounts to their employee benefits packages helps employers stand out. These funds are an excellent solution for companies that wish to support their employees’ physical, financial, and emotional well-being. 

This employer-funded account is flexible for employers and employees and relatively straightforward to establish and manage. Learn how it works and what to consider before adding one to your benefits plan.

What is a Lifestyle Spending Account?

The employer funds the lifestyle spending account. However, this money is taxable—unlike nontaxable HSAs and FSAs. Employees must report the funds they have spent as income at tax time. This means the funds are not subject to Internal Revenue Code nondiscrimination requirements.

For example, if the company contributes $1,000 to the account and an employee spends $500 on home gym equipment, the employee only has to report $500 as income.

As the employer, you decide how employees can spend their lifestyle spending account funds. You would work with a vendor and manage the permitted products and services through their platform. The funds cover expenses not eligible under traditional health insurance, such as:

  • Gym memberships
  • Yoga/fitness classes
  • Athletic wear
  • Groceries
  • Nutrition consulting
  • Health supplements
  • Daycare
  • Life coaching
  • Exercise/athletic equipment (e.g., treadmill or golf clubs)

Employees simply submit receipts for reimbursement. And you only pay for what employees spend!

Why Add an LSA to Your Employee Benefits Plan?

A lifestyle spending account is an easy-to-manage, highly flexible way to enhance your benefits package. It supports recruiting efforts and boosts employee retention by allowing you to offer higher compensation without a permanent wage or salary increase.

Additionally, many businesses offering employee wellness benefits find that they go unused. Instead of throwing money at multiple specific programs that could go to waste, implement a lifestyle spending account. Employees can use the funds on whatever services or products best suit their wellness needs and lifestyles.

A lifestyle spending account can also be a practical, inclusive benefit. Female employees, certain racial/ethnic groups, LGBTQ+ people, or those with exceptional life needs (e.g., surrogacy, adoption, or emergency relief) can use the funds for many of their needs not covered by a group health plan.

How to Set Up a Lifestyle Spending Account

The beauty of a lifestyle spending account is that as the employer, you can decide exactly how it works—and it’s easy to do! Follow these steps:

Determine a Budget

First, set a budget by asking:

  • How much will you contribute to each employee’s account?
  • When can employees spend lifestyle spending account funds?
  • How will you manage unused funds at the end of the year or when an employee departs?

Amounts vary widely. If you contribute $500, you might give the total amount on January 1st and allow employees to spend it immediately.

On the other hand, you could give a larger amount and spread it out into monthly or quarterly contributions. You could require employees who want to make a big purchase to wait until they have sufficient funds in their account. Or, they could submit a receipt for reimbursement at any time but won’t receive it until the funds are available.

As for remaining funds, you can either allow employees to roll them over into the following year or reclaim them.

Determine Your LSA Benefit Design

Which expenses will be covered by your lifestyle spending account? Decide whether you want to be specific or keep it broad, considering your employee population and their preferences.

For example, some employers state eligible expenses must be related to physical health and wellness. Others may allow staff to use their funds on anything well-being-related—meaning employees could even use it for spa treatments!

Some employers even choose to establish separate lifestyle spending accounts for specific purposes. For example, an organization may have: 

  • One general account that covers various expenses (this can even include financial planning, tuition/student loan repayment, family care, and pet care—just to name a few!)
  • Account(s) for specific expenses (e.g., larger life changes/expenses, home office equipment, etc.)

It’s all customizable, meaning you can select the covered categories, qualified employees, fund amounts, contribution schedules, reimbursement methods, and spending timeframe. Your vendor and HR team can also help you choose appropriate expenses.

Clearly Explain the Benefit

Since lifestyle spending accounts are still somewhat new, many of your employees will be unfamiliar with them. Start by holding a company-wide training session. Be sure to communicate the program so your team understands how it works and how they can take advantage of their funds.

And since most lifestyle spending account vendors provide intuitive systems, employees should be able to easily find details and submit reimbursement claims.

Introduce a Comprehensive Wellness Benefit

Lifestyle spending accounts are easy to manage and can be tailored to fit any company’s budget and needs. Not to mention, you won’t be wasting money and energy on employee wellness benefits that don’t appeal to everyone! You can design an account that caters to a wide range of wellness preferences and lifestyles.

Are you ready to explore your lifestyle spending account options? BlueLion’s HR professionals will be happy to advise you on fund design and vendors. Contact us at info@bluelionllc.com or 603-818-4131 to learn more!

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.

Everything You Need to Know About RxPass by Amazon Pharmacy

February 8, 2023
February 8, 2023

On January 24th, 2023, Amazon Pharmacy rolled out RxPass. The prescription subscription service allows Prime members to order generic medications delivered to their doorstep for a flat monthly fee of $5.

The initial list includes over 50 generic drugs that treat more than 80 common health conditions, such as diabetes, high blood pressure, anxiety, and acid reflux.

“Navigating insurance can be a maze and getting to the pharmacy a burden. Sometimes that has led to poor outcomes: New medications don’t get filled, refills don’t get picked up, and patients suffer,” Dr. Vin Gupta, Chief Medical Officer of Amazon Pharmacy and a practicing pulmonologist, wrote in an Amazon article. “Aspects of our health care system make what should be easy, difficult.”

Dr. Gupta continued, ”RxPass is our latest effort to help patients save time, save money, and stay healthy. It’s available now to customers in most U.S. states.”

But what does this mean for Americans? Simply put, it’s another affordable option to obtain your prescriptions for a fraction of the retail cost. And with more than half (55.7%) of American private-sector workers enrolled in high-deductible health plans, many are looking for ways to save on their medications and avoid hitting those deductibles.

“There are 150 million Americans who take one or more of the medications on this eligible medication list that we’re launching with,” Amazon Pharmacy vice president John Love said in an interview. That could mean many U.S. patients saving on their regular prescriptions.

Keep reading for everything you need to know about Amazon Pharmacy’s RxPass.

How Does RxPass by Amazon Pharmacy Work?

To subscribe to RxPass, you must be an Amazon Prime member. The current annual membership price is $119. Prime members can easily:

  1. Sign up for RxPass for an additional flat rate of $5 per month.
  2. Look for meds labeled “Included with RxPass.”
  3. Add any eligible Amazon Pharmacy prescription to their RxPass subscription, or transfer a new one. RxPass subscriptions can be filled as often as necessary and set up with auto-refill.

While RxPass is not covered by insurance and patients cannot use an HSA or FSA to pay for their subscription, the service could benefit Prime members who:

  • Spend more than $5 on all of their medications
  • Take a generic medication eligible for RxPass
  • Pay out-of-pocket for their prescriptions

That means those without insurance or with insurance that doesn’t cover certain meds can enjoy significant savings! Patients also avoid the hassle of comparing prices between pharmacies or calculating (and stressing about) their insurance copay.

RxPass FAQs

Which medications are eligible?

Currently, RxPass includes access to over 50 generic medications covering many common conditions. Check out the complete list.

Who is not eligible for an RxPass subscription?

Certain insurance and state restrictions apply. Patients with government-funded health plans like Medicare and Medicaid are not eligible to sign up for RxPass at this time. 

RxPass cannot currently send medications to the following states: 

  • California
  • Louisiana
  • Maryland
  • Minnesota
  • New Hampshire
  • Pennsylvania
  • Texas
  • Washington

However, Amazon Pharmacy is available in all 50 states.

How does payment work?

You will be charged for your RxPass to your selected payment method on the first of each month. Note that you’ll pay a prorated amount for your first month and then be charged on the first day of the next month.

What if I need to cancel?

You can cancel RxPass anytime and use your subscription for the rest of the month you’ve paid for. You will not be charged again. If you cancel your Prime membership, your RxPass will also be canceled.

If you purchase medicine through RxPass, your subscription will remain active for the entire time covered by your chosen supply amount. For example, buying a 90-day supply of medication commits you to three months of an RxPass subscription. Your cancellation would go into effect at the end of those 90 days.

Stay Ahead of Health Care Updates

As individuals nationwide search for ways to save on healthcare costs, Amazon Pharmacy’s RxPass may be a welcome option for many. And knowing the tech giant, we’re intrigued to see how the subscription program performs and continues to expand in order to provide access to affordable medications to more people.

Employers should also be attuned to their employees’ primary stressors and concerns, with healthcare at the top of the list as insurance costs continue to increase. Share this new resource and educate your team on RxPass to provide them with a more cost-effective option. In doing so, you could help reduce some of their external stress, boosting employee productivity and engagement.

What do you think of the latest Amazon service? Let us know in the comments! If you have any questions about this or any other health care or HR matter, contact us at info@bluelionllc.com or 603-818-4131 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.

HR Trends for 2023 & Beyond: A People-First Future

January 26, 2023
January 26, 2023

With a new year underway, many business owners and leaders are wondering about 2023 HR trends and what they should do to stay ahead of the game and keep employees happy. 

While business is constantly evolving in numerous areas, the most critical areas emphasize:

  • Employee well-being, mental health, and work-life balance
  • Employee engagement and development
  • Trends in HR technology

Employee Wellness & Work-Life Balance

From 2023 to the future of HR, one thing is here to stay: Putting employees first! Your people’s well-being should be at the top of your list when considering HR trends to follow and which changes to implement. 

Prioritize Work-Life Balance

Over the last three years, we’ve learned that remote work is a double-edged sword. On the one hand, remote work has been shown to significantly boosts productivity and efficiency. It also allows more flexibility for employees. 

But on the other hand, working from home can also make it difficult to draw boundaries between our personal and professional lives and unplug, leading to burnout. 

Whether from telecommuting challenges or simply the pressure to work long, hard days and weeks, employees are burnt out—and they’re sick of it. Today’s top talent are searching for employers that value their time and work-life balance with perks like remote work (just be sure to emphasize unplugging and reasonable expectations) and flexible schedules.

At the end of the day, people want more time for their loved ones, personal interests, and self-care!

Support Employee Well-Being

Speaking of burnout and self-care, people are also concerned about COVID-19, the economy, and current world affairs. As a result, current HR trends lean toward employee well-being and mental health. Stress affects workers’ productivity and performance. 

Your team wants mental health care! The 2022-2023 Aflac WorkForces Report found that “nearly 80% of employees state that mental health coverage is critical, yet only 61% have access to mental health care as part of their benefits package.”

They also want related employee benefits and perks that support their mental health. So, what could you implement to create a robust employee wellness program? Consider providing:

  • Mental health care coverage: An Employee Assistance Program is a great option!
  • Fitness options: Onsite fitness center, programs/classes, or subsidized gym memberships
  • Childcare: Either onsite services or a childcare stipend can significantly help.
  • Team-building activities: These are particularly important for remote workers, who can experience loneliness and isolation.
  • Natural light: A 2020 survey found that employees feel natural light improves their performance and well-being.

Employers that show a genuine concern for their team’s wellness and mental health will enjoy the strongest teams and highest employee retention in 2023 and many years to come.

Employee Engagement & Development

When contemplating workplace trends, you should also review employee engagement and development practices. Consider how you can keep team members motivated and excited about both their jobs and the company.

Get a Communication Platform

If you haven’t done this yet, it’s time—especially if you have a remote workforce! The pandemic taught us how vital ongoing communication is.

Whether it’s Slack, Microsoft Teams, or another option, using a chat platform is crucial for keeping your team connected and engaged. It also keeps projects and work moving by allowing quick and easy communication. Plus, apps like Slack can help with automated HR processes (more on this later).

Provide Regular Upskilling & Performance Management

Employees want ongoing, consistent feedback. Many also desire opportunities to grow, so fulfill those desires with regular performance management and coaching. Give them a chance to uplevel their skills for new roles, such as online courses and certification programs. 

When you prove to employees that you care about their career growth, your company will benefit from a high-performing team with talent that sticks around. 

You’ll also start seeing a shift from annual performance reviews to more frequent evaluations and coaching. Consider modern performance review methods, frequencies, and best practices to stay ahead of the competition.

Trends in HR Technology

Even though this HR trend discusses tech, it all comes back to your people! Leveraging tools not only helps your business but also supports your employees by saving them time and stress—among other benefits.

Automate, Automate, Automate!

With the plethora of platforms, there is no reason to continue using manual methods like paper and Excel for recordkeeping. Streamline your HR operations with tools like payroll software and HRIS platforms. These will help you establish efficient workflows, simplify people management and other HR tasks, and save HR staff significant time they can spend on other critical responsibilities.

Embrace AI Technology

Over the last few years, software and AI have come onto the scene in a big way—and human resources is no exception! Consider how your HR department can leverage and benefit from technology.

For example, HR chatbots can help manage tasks and analyze and organize employee data. They can also help manage attendance, provide company policy info, and act as self-service onboarding and training platforms. They are great for supporting remote work because they streamline processes. Plus, chatbots have capabilities for employee satisfaction and fun virtual engagement.

Another benefit of AI for HR: It can help you create a diverse workforce by using analytics to determine demographics like age, gender, and ethnicity. Using AI eliminates bias by taking the burden off your hiring managers and HR team and leaving it to technology. The tool will look at the metrics and a candidate’s skills to match the best person for the job.

Stay Ahead of HR Trends

The essential HR trends employers need to stay on top of include: 

  • Employee well-being, work-life balance, and mental health
  • Employee engagement and development
  • Trends in HR technology

Don’t stress about implementing everything at once! Evaluate your workplace culture, listen to employee feedback, and determine the ideal areas to focus on. As long as you keep your employees’ best interests front of mind, you’ll be on the right track to attract high-performers who will stick around and make your current team members feel valued and satisfied in their roles.

Need guidance on the latest HR trends? Contact BlueLion at 603-818-4131 or info@bluelionllc.com for support with all your organization’s human matters today! Or, learn more about our outsourced HR services.

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 Cross-Training Employees Strengthens Your Business

January 18, 2023
January 18, 2023
How Cross-Training Employees Strengthens Your Business

What is cross-training, and why should every organization do it? 

Cross-training employees involves training a team member for work that is outside of their current role. Simply put, if you trained Sue to do Jenny’s job, you would also train Jenny to learn Sue’s job.

There are many benefits of cross-training employees for both team members and employers. When done well, it creates flexibility for your business and equips employees with new skills.

Of course, effective cross-training requires strategic planning. In this quick guide, we’ll break down:

  • Benefits of cross-training
  • Types of cross-training
  • How to make your program successful

Benefits of Cross-Training Employees

So, what are the specific benefits of cross-training employees? While it calls for time and effort on the front end, cross-training can lead to a more productive and positive workforce.

Increased Coverage

Cross-training can be a powerful way to expand your personnel coverage. Cross-trained employees can fill in for others who are absent or on temporary leave. No more stressing when a team member has a personal emergency! You’ll avoid company downtime and disruption to services or production. It also allows for more flexible scheduling, which, in turn, leads to happier employees.

Employee Development

Employees can add new skills to their arsenal when their role is diversified. Those who want to grow and advance also enjoy being challenged, so offering them new projects and responsibilities can achieve this. 

Cross-training employees will ease them into new areas, thus increasing their comfort and confidence. Empowering team members with great potential is also a great way to hone their leadership skills for future opportunities!

Improved Morale & Performance

On a related note, challenging employees with new tasks and showing them you trust them leads to job satisfaction. They will become more engaged and productive, knowing they have a bright future with your company. This confidence will benefit your employee and your company, encouraging them to take initiative.

And with higher job satisfaction comes higher employee retention rates. You’ll have more opportunities to promote/hire from within—meaning lower recruiting and hiring costs!

Foster Teamwork & Positive Relationships

Additionally, cross-training employees positively impacts workplace relationships and morale. It encourages employees to get to know one another better and build rapport. They’ll also gain a deeper understanding and appreciation for one another’s work and the organization’s overall roles and functions. 

Strong teams are more productive teams! Cross-training ensures employees are in sync and creates smooth workflows.

By showing employees that you value them, you’ll gain their respect in return. Offering new opportunities for learning and growth goes a long way in fostering respect for leadership. This leads to increased company loyalty and reduced employee turnover.

What Can Cross-Training Look Like?

There are three primary ways to cross-train employees. How you cross-train will depend on your company’s organizational structure, goals, and the employees’ skillsets and interests.

Job Enlargement: Horizontal Expansion

Sometimes, cross-training entails a horizontal expansion of an employee’s job duties. Job enlargement means giving them additional tasks on the same skill and responsibility level. This provides more diverse activities and prevents boredom. It can also help improve efficiency by delegating tasks appropriately.

For example, a client relationship specialist may work with one specific group of clients. But due to company growth, they take on additional clients, perhaps in another category or division. While the specialist’s general job responsibilities stay the same, they are taking on a higher volume and may need to cross-train on the ins and outs of the new clients to deliver the best service. 

Job Enrichment: Vertical Expansion

Ideally, cross-training employees involves job enrichment. This is more of a vertical growth, meaning an employee is given more advanced tasks and responsibilities. It is the process of adding motivators to a team member’s current role to increase job satisfaction and productivity. Job enrichment often involves upskilling, giving them more control, and including them in meaningful meetings and decisions. 

Let’s say your agency has a marketing coordinator who typically takes project briefs from the marketing manager, conducts research, and performs content creation. They may also communicate with clients and other departments. 

To foster job enrichment, you encourage the marketing coordinator to take a more strategic role by asking for more of their input and providing more autonomy. Perhaps you let them develop and/or guide the content strategy. In doing so, you’re supporting their growth and future career path as a potential project manager or content strategist.

Job Rotation: Cultivating Well-rounded Leaders

Cross-training doesn’t only have to occur at the staff level. In fact, the most effective leaders are those who have a deep understanding of all the roles and departments in their organization. 

Many companies focus on developing well-rounded leadership teams through job rotation. This involves a manager working in various roles, projects, and departments until they’ve been immersed in all aspects. This form of cross-training fosters more competent and empathetic leaders.

Tips for a Successful Cross-Training Program

Now that you understand why cross-training is important and the different types, you’re ready to develop your own program! Follow these tips to create a cross-training plan that fosters your organization’s growth.

Identify Cross-Training Opportunities

Where and when does cross-training employees make the most sense?

  • First, look for competency gaps or areas where your staff is lean and could benefit from cross-training. 
  • Consider where would it free up time and improve productivity. 
  • Understand each employee’s skill set and abilities before deciding who will cross-train and where.

Make It a Collaborative & Transparent Process

As you develop your cross-training program, be sure to make it a team effort by:

  • Discussing cross-training opportunities with relevant employees to pinpoint their skillsets and interests.
  • Encouraging employees to look for these enrichment opportunities on their own and take initiative.
  • Gathering feedback regularly to determine what’s working and where there is room for improvement.

Develop an Official Cross-Training Program

Finally, make it official!

  • Work with your leadership team to create a company-wide plan.
  • Include how they will be cross-trained with details on when, where, and what training method.
  • Schedule employees to work in cross-trained roles consistently to keep their knowledge and skills fresh—at least monthly.

Strengthen Your Business by Cross-Training Employees

As we’ve discussed, there are many benefits of cross-training employees for companies of all sizes. Employees with diversified roles will make a bigger impact on your company and most likely stick around longer. Plus, you don’t have to stress and scramble due to staff shortages. Overall, cross-training is a great technique for growing your business. 

No two organizations are alike, so every cross-training program will look different. With careful planning and effort, you can determine what team members should cross-train and how.

If you’re ready to start cross-training employees and strengthen your team but not sure where to start, learn more about our outsourced HR services or contact BlueLion today at 603-818-4131 or info@bluelionllc.com! Our HR specialists will be happy to help you develop a program that suits your organization.

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.

2023 Employment Law Updates & Highlights

January 12, 2023
January 12, 2023
2023 Employment Law Updates & Highlights

With a new year comes new employment laws! Employers should be aware of changes to federal and state employment laws for 2023. That includes some regulations that went into effect in late 2022. 

While there aren’t many new federal employment laws at this time, many updates and expansions are occurring at the state level. Some went into effect, and others will come later this year. 

Read on for the highlights, including laws related to minimum wage increases, pay equity and transparency, expanded paid family and medical leave, sexual harassment and assault, and pregnant and breastfeeding employees.

Minimum Wage Increases

One of the hottest topics regarding employment laws in recent years is the minimum wage. 

The federal minimum wage will remain at $7.25 an hour—which it has been at for 13 years. But many states have increased their minimum wages to significantly higher rates than the federal rate as of January 1 for non-tipped wages, including:

  • Arizona: $13.85
  • California: $15.50
  • Colorado: $13.65
  • Delaware: $11.75
  • Illinois: $13
  • Maine: $13.80
  • Maryland: $13.25
  • Massachusetts: $15
  • New Jersey: $14.13
  • Rhode Island: $13
  • Vermont: $13.18
  • Virginia: $12
  • Washington: $15.74

Other states will enact their increased minimum wages later this year, including:

  • Connecticut: $15 starting June 1
  • Florida: $12 starting September 30
  • Michigan: TBD
  • Nevada: $11.25/$10.25 starting July 1 (with health benefits/no health benefits)
  • Oregon: $13.50 starting July 1
  • Washington D.C.: $17 starting July 1

Stay tuned for bumps coming down the line—and ensure you’re compliant with 2022 increases!

Employers in certain states should beware of nuances between jurisdictions. For example, while the minimum wage in New York City is $15, Upstate New York is $14.20. Oregon divides its counties into three regions and assigns a minimum wage accordingly: Portland Metro ($14.75), Standard ($13.50), and Non-urban ($12.50). California’s minimum wage also varies by geographic location. 

Other states and metropolitan areas have their own unique minimum wage systems. Some are implementing new punitive actions for wage-related claims, so work with your HR team and legal counsel to ensure compliance.

Pay Equity & Transparency Laws

Similar to a growing HR trend of salary history bans, several states are also passing new laws to improve pay equity and transparency and better protect candidates and employees.

California

One of California’s latest laws requires employers to:

  • Provide a pay scale if job applicants or current employees request it
  • Include a pay scale with any job posting (for those with 14 or more employees)
  • Keep records of job titles and corresponding wage rate history for all employees

Rhode Island

Rhode Island has made requesting or relying on an applicant’s wage history illegal. The new law also requires employers to provide a wage range for each job.

Washington 

Washington employers must share hourly or salary compensation and a general description of benefits in their job postings.

Illinois

Illinois’ new Equal Pay Act requires employers with 100 or more employees to apply for an Equal Pay Registration Certificate. To do so, they must submit the following to the Illinois Department of Labor (IDOL):

  • Their most recent EEO-1 Report for each county in which the business has a facility or employees
  • List of all employees from the past calendar year separated by gender and the race and ethnicity categories as reported in the employer’s EEO-1, including the county where the employee works, the employee’s start date, and compensation data rounded to the nearest $100
  • Equal Pay Act compliance statement signed by a corporate officer, legal counsel, or authorized agent of the business containing specific statements as outlined by the IDOL
  • $150 filing fee

The IDOL started notifying employers in early 2022 to file within 120 days and will continue sending notices through March 23, 2024. Businesses must also recertify with the IDOL every two years.

Leave Laws

In another prominent HR trend, more states are expanding their paid family and medical leave (PFML) programs between now and 2024. Some include more robust benefits for new parents, those caring for siblings, and even those caring for close friends. Other states are reducing the family leave contribution rate.

Colorado

Employer and employee contributions toward Colorado’s new Family and Medical Leave Insurance (FAMLI) began on January 1. This year’s deductions are to start building up the fund. Workers can begin using the benefit as of January 2024.

FAMLI offers 12 weeks of PFML to qualified employees, with an additional four weeks for those who experience complications during pregnancy or childbirth.

New York

Employees can now use Paid Family Leave to tend to siblings with serious health conditions. This covers biological, adopted, and half-siblings—they do not need to be New York residents.

California

A new California employment law allows workers to take leave for a “designated person,” which includes any person related by blood or whose relationship with the employee is like family.

PFML Contribution Reductions

New Jersey has decreased family leave insurance contributions from 0.14% to 0.06% for employers and workers.

Additionally, Massachusetts has reduced PFML contribution rates for employers with 25 or more covered employees from 0.68% to 0.63% of wages.

New Speak Out Act

President Biden enacted the Speak Out Act on December 7, 2022. The new employment law makes pre-dispute non-disclosure and non-disparagement agreements related to sexual harassment or sexual assault unenforceable. 

Simply put, employers cannot prevent employees from discussing sexual harassment or sexual assault allegations before a concern or dispute occurs.

So, what is considered a “dispute”? It’s a bit foggy, but a sexual harassment or sexual assault complaint appears sufficient to be considered a dispute. Employers can use enforceable non-disclosure and non-disparagement clauses in settlement agreements resolving allegations of sexual harassment and assault.

What do you need to do? Since general pre-dispute non-disclosure and/or non-disparagement agreements are not enforceable in sexual harassment or sexual assault situations, you should review and update applicable standard documents. These include employment agreements, confidentiality agreements, company policies, and employee handbooks. 

Need help updating or creating HR documents and policies? Learn how we can help.

Federal Protections for Pregnant & Breastfeeding Workers

President Biden then signed the Pregnant Workers Fairness Act (PWFA) on December 31, 2022, which will go into effect this June. Under the act, employers with 15 or more employees must provide reasonable accommodations to candidates and employees with conditions related to pregnancy or childbirth. It also outlaws discrimination due to pregnancy-related accommodation.

More than half the states already have a similar labor law to the PWFA. Those in states without should pay attention to upcoming guidance over the next two years, including examples of reasonable accommodations. The act contains the same protections under the Americans with Disabilities Act (ADA) but for temporary scenarios. It doesn’t mandate altering the essential job duties.

On a related note, Biden also passed the PUMP Act, or the Providing Urgent Maternal Protections for Nursing Mothers Act. This federal employment law expands protections for breastfeeding parents under the Affordable Care Act of 2010 and employer obligations under the Fair Labor Standards Act. These laws already require employers to provide reasonable time and a private area for pumping (that is NOT the bathroom).

New protections under the PUMP Act include:

  • Coverage for employees who were not previously covered, specifically salaried employees
  • A stipulation that time spent pumping breast milk be considered hours worked if the employee is also working
  • Extending accommodations from one year to two years

As for employee responsibility, a worker must notify and allow the employer to correct any non-compliance issues before making a complaint against them.

Looking Ahead: Evolving Employment Laws

As you evaluate employee pay, accommodations, handbooks, policies, new hire paperwork, and other documentation for the year ahead, it’s a great time to assess new laws—and those just around the corner. Stay tuned to our weekly blog posts for the latest updates and HR trends, then consult your legal or HR team for guidance.

Are you looking for regular hands-on HR support? Or do you need assistance with a specific project, like a handbook or policy development? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to learn how our diverse team of HR specialists can help you remain compliant—all while giving you more time to work on and grow 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.

The Stay Interview: A Simple Yet Powerful Employee Retention Tool

January 4, 2023
January 4, 2023

In today’s world, employees have more options than ever when finding employment. They can choose from a variety of companies, industries, and positions. If you want to keep your top performers happy, you must take the time to understand what makes them tick and why they choose to stay with your company.

That’s where stay interviews come in! These one-on-one conversations between managers and employees can promote positive morale while shedding light on potential retention issues before they become too big a problem. 

But what should a stay conversation include? Who should be the interviewer, and when and where should it be done? Keep reading for guidance on the stay interview process and questions.

What is a stay interview?

A stay interview is a one-on-one conversation between a manager and an employee focused on the employee’s engagement. This discussion can help you understand what makes your employees happy at work, why they stay at your company, and their growth opportunities.

Unlike exit interviews, which are conducted with employees who are already departing the company, the purpose of a stay interview is to retain talent before they decide to leave.

In addition to employee retention, the benefits of stay interviews include: 

  • Boosting employee productivity and engagement by showing them you value their opinions
  • Strengthening rapport between managers and their staff
  • Learning what your company is doing well and how you could improve
  • Uncovering contention between employees and their peers or supervisors
  • Discovering each employee’s feelings about their role and responsibilities—and how you can help them achieve their goals
  • Identifying personnel trends and how you can get ahead of them

Establish a Stay Interview Process

So, how, when, and where should you conduct stay interviews? Follow the guidelines below to maximize the impact of these discussions.

Schedule Them Strategically

While stay interviews don’t need to be lengthy—30 to 45 minutes is often sufficient—they deserve their own dedicated time and should be conducted:

  • Within a new hire’s first two to three months: This is a crucial time to focus on employee retention! Use the stay conversation to ensure they feel supported and satisfied in their role—and to get ahead of potential problems that could drive them away. 
  • When you notice a pattern: Are you seeing a high turnover rate for employees who have been with the company for two years? Or are you noticing disengaged team members? Conduct stay interviews as a retention and morale-boosting tool before they walk out the door.
  • During your slower season: Don’t hold stay interviews during your busiest time of year when things are likely to slip through the cracks. If business ramps up around the winter holidays, you might conduct interviews in the summer when you have time to focus on and implement staff feedback.
  • Separately from performance reviews: Stay interviews and performance reviews have different goals. During a stay interview, you want employees to feel comfortable sharing honest insights about the company—not stressing over their assessment or possible promotion or raise.
  • Annually!: Ideally, employers should perform stay interviews yearly to keep a pulse on the culture and trends. This will help you avoid issues and show your team that you genuinely want to hear their ideas and concerns.

Choose Appropriate Interviewers

Next, decide who should conduct stay interviews. 

In many companies, managers or supervisors have these conversations with their reports because they have direct daily access to and a strong rapport with their employees. If you have a large staff, you can streamline the stay interview process by having managers make them a regular part of their one-on-one meetings.

On the other hand, you may want a manager in a neutral position (i.e., one without direct oversight of the employee) to hold these discussions. This ensures an outside perspective and encourages employees to be honest in their feedback. 

Set the Tone

Stay interviews can be done in a casual setting to ensure the employee feels comfortable, such as over coffee or lunch or on a walk around the office property. The key is to give employees a heads-up and send a meeting invite with context, so they know what to expect.

Follow these tips to get the most from each conversation:

  • Use open-ended questions. Open-ended questions are more specific than closed ones, require more thought and time from the interviewee, and can be answered in various ways, allowing you to gain a deeper understanding of what your employee is thinking.
  • Be prepared for silence, but don’t feel you need to fill it. Sometimes, your employee will pause for a long time. Use these moments to think about what you want to say next. If the employee seems unsure, try rephrasing the question or asking another related/follow-up question.
  • Approach each interview with curiosity. Keep asking questions to dig deeper and learn directly from your employees! With the right questions, they’ll tell you what they need to improve productivity, engagement, and job satisfaction.

Sample Stay Interview Questions

Stay interview questions should focus on your employees’ work-life satisfaction. This will help you better understand whether they are happy and plan to stay. Instead of asking the standard “What do you like about working here?” question, try questions like:

  • Why do you choose to continue working here?
  • How has your job changed in the last six months? What’s been most rewarding about those changes?
  • What do you think is the best part of your job? The worst? If you could change one thing about it, what would it be?
  • What can we do to make you happier here at [company] over time—within our organization and externally? In other words, how can we support your plans for personal growth or professional development?

Next, ask questions about your company culture and ways you can improve it, such as:

  • What are the most important things for us to know?
  • What are the biggest challenges you face on a day-to-day basis?
  • What do you think makes our company unique compared to others in our industry—or compared to similar companies?
  • What do you wish we could change about our culture or environment? How can we improve it?

What’s Next? Stay Interview Follow-up

Of course, you should let the employee know you can’t make any promises, but you will consider their input and address any requests or concerns to the best of your ability.

And after conducting the stay interview, follow through! You’ll likely want to start with the easiest and most cost-effective adjustments. Perhaps you add healthy snacks to the breakroom or provide specific office equipment to make them more comfortable or productive. Then, handle any bigger issues the employee shared and address them appropriately.

Once you’ve made relevant changes or addressed their concerns, follow up with the employee to inform them. This will show them you take their feedback seriously.

Stay interviews are a great way to keep your best employees satisfied, engaged, and motivated. They’re also a powerful opportunity to get more information about what your employees think about their roles at work, what they like about working for you and the company, and where there might be opportunities for improvement. 

Not only does this help you identify any issues affecting employee retention, but it can also help you develop strategies for improving overall engagement within your organization.

Do you use stay interviews as part of your employee retention program? Or are you considering implementing them but want to know how to tailor them to your business? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to find out how our HR specialists can help you build a happy, healthy team that sticks around!

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.