Author Archives: Stephanie

What is Professionalism in the Workplace? + 4 Bonus Tips

December 28, 2022

What is professionalism in the workplace? While it looks different from one business to the next, there are several areas where you’ll want to ensure employees are conducting themselves appropriately to convey your desired brand image and ensure success.

Read on for the crucial areas of professionalism to keep your eye on. And stick around until the end for four bonus tips for helping everyone from leadership to staff members hone their professional skills and behavior.

Key Areas of Professionalism to Consider

Whether evaluating a potential candidate or a current employee, professionalism in the workplace is essential to ensuring the right fit for both the role and your organization.

What skills, traits, and appearance should a professional have to enhance your company’s productivity and culture? The right blend of the following attributes makes up a positive professional and team member.

Expertise & Competency

When we consider a professional, we often think of someone with experience in a specialized field or discipline. They may have specific academic qualifications or other certifications, but not always—they could simply have years of demonstrated expertise.

Either way, a truly dedicated professional constantly improves their skills and knowledge through continued education like seminars, conferences, professional designations, and independent research.

Additionally, a professional is confident and reliable. Their teammates, managers, clients/customers, and other stakeholders know they can count on them to do the job well, thanks to their:

Solution-focused nature
Timely delivery and responses
Ability to consistently meet goals

Integrity & Open-mindedness

Professionalism in the workplace heavily relies on integrity. Think of the executive, manager, or staff member who:

Always delivers on their promises
Adheres to their own principles as well as the company’s values to present an aligned image
Does what is best for their team or customer
Admits when they need help with a task or project that is outside their wheelhouse

A professional is also open to learning from others and hearing other perspectives, valuing collaboration and diverse backgrounds and experiences. These qualities make them enjoyable to be around and work with, drawing in colleagues and creating a healthy work environment.

Accountability

Similarly, a professional is not afraid to own up to their mistakes—whether a work error or something they said or did in poor judgment. They will work to fix their missteps as soon as possible, treat them as learning opportunities, and move on.

Most of all, a professional shows others grace when they make a mistake.

Communication Skills

A great team player or leader exhibits professionalism in the workplace with strong communication skills by:

Consistently maintaining clear, polite communication across all channels
Maintaining professionalism in emails by making them clear and brief
Understand what method to use for different situations (e.g., in-person vs. email vs. IM)
Practice active listening
Keep open lines of communication with their peers and reports

Solid communication is vital to maintaining productivity and a positive work environment while avoiding miscommunications and oversights.

Poise & Interpersonal Skills

Closely related to communication skills are a professional’s self-control and interpersonal skills. They keep their cool in stressful, frustrating situations.

For example, an accountant receives an urgent request for a report and acknowledges and delivers it as quickly as possible while maintaining an upbeat attitude. Or a customer service specialist must assist an angry client while maintaining a calm, helpful demeanor.

These individuals are typically flexible and agile. They don’t panic when a project takes a sudden left turn, or a deadline is moved up.

Plus, they have high emotional intelligence, meaning they’re good at reading and responding to others’ feelings and needs. This allows them to be supportive to both their peers and reporting staff.

Image & Conduct

Finally, professionalism in the workplace calls for an appropriate appearance. Professionals dress appropriately for the job. They maintain a polished, clean appearance with their clothing and grooming habits, along with a neat and organized workspace.

When it comes to image and behavior, a professional follows company rules and policies. They show up on time and keep conversations with colleagues professional and upbeat. Even when conflicts and concerns arise, a professional addresses those involved diplomatically and respectfully.

Finally, professionalism applies to an employee’s technology and social media activity. They don’t abuse social media while on company time, nor do they post inappropriate or offensive content.

4 Ways to Improve Professionalism in the Workplace

1. Create Clear & Reasonable Policies

Provide consistent guidance on professionalism in the workplace with comprehensive policies on:

You should organize these policies in an employee handbook and provide it to all new hires during onboarding. You should also update and redistribute the handbook annually.

Of course, while policies are essential, they should also be reasonable. Don’t make them too strict or overly detailed. Encourage employees to ask questions if they’re unsure of something, whether they turn to their direct manager or HR.

2. Offer Learning Opportunities

As mentioned earlier, constantly learning and improving one’s skills and knowledge is a key attribute of professionalism in the workplace. So help your team members do just that by encouraging and supporting them on their journey to professional improvement!

Consider helping them through student loan and tuition assistance. Or cover the cost of a course or certification relevant to their field. You could even bring in experts to deliver specialized training or provide employees with tools and resources to further their education.

Offering learning opportunities and support is also a powerful employee perk and method for boosting employee retention.

3. Provide Coaching & Mentoring Programs

Are you noticing professionalism gaps? You may have employees who are resistant to working with others or a manager struggling to motivate and gain the respect of direct reports. Consider:

Training & Coaching: Depending on the need and topic, this could be done one-on-one or in a group.
Leadership Coaching: Regularly bring in an outside leadership coach for both experienced and budding leaders.
Mentorship Program: Pair longtime managers with new managers—this is an excellent way for them to learn from each other on the job!

4. Develop a Performance Management System

With an effective performance management process in place, you’ll have a clear view of everyone’s professionalism in the workplace. This should include consistent feedback from both managers and peers with a balance of positive reinforcement and constructive criticism.

If you have an employee who needs to improve their professionalism, you should document what measures you’ve tried and monitor their progress. Approach them with empathy and in a one-on-one setting to ensure discretion and get to the root of the problem.

Some employees may face personal issues, resulting in negative attitudes and performance. An employee assistance program (EAP) could be a valuable resource for them. Or consider accommodating them as they work through their challenges.

Finally, know when you must draw the line. Have you provided as much support as possible? Given them ample opportunity to improve their conduct, attitude, and performance?

If the answer is yes, but the employee doesn’t seem to be improving, you may need to put them on a performance improvement plan and discuss possible consequences—including termination.

Final Thoughts on Professionalism in the Workplace

Professionalism in the workplace will look different in every business. For example, a financial services company will have a different atmosphere, messaging, and brand image than an auto repair shop. But certain qualities are essential no matter your company or industry, including:

Expertise & Competency
Integrity & Open-mindedness
Accountability
Communication Skills
Poise & Interpersonal Skills
Image & Conduct

And you can promote all of the above by providing:

Clear policies
Learning opportunities
Coaching and mentoring programs
A solid performance management process

Most importantly, you can foster professionalism in the workplace by setting an example for the rest of your team! From how you treat clients and coworkers to how you dress and carry yourself, you can portray the professionalism you want your employees to maintain.

Whether you need training, policy and handbook creation, or performance management support, BlueLion can help you with our fully outsourced HR services! Contact us today at info@bluelionllc.com or 603-818-4131 to discuss your challenges and learn more about our offerings.

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.

8 Styles of Flexible Work Schedules for Progressive Employers

December 23, 2022

As workers demand better work-life balance, a growing number of employers are implementing flexible work schedules. But what is a flex schedule, exactly?

Rather than the traditional 8 a.m. to 5 p.m. or 9 a.m. to 6 p.m., flex schedules allow employees to work the hours and days that best suit their lifestyles while still completing a 40-hour workweek.

Having a flex schedule is now viewed as a priority employee benefit by both candidates and existing team members—and you can position it as such to strengthen and grow your business! It can benefit your business by:

Appealing to more candidates and widening your talent pool

Increasing employee satisfaction and retention
Boosting employee productivity thanks to higher engagement and better coverage
Reducing insurance, rent, utility, and office equipment costs

With several types of flex schedules to choose from, you can opt for one that works best for your company’s operations and industry. Check out these eight alternative work schedule examples that are becoming increasingly popular among today’s more progressive organizations.

1. Four Day Workweek

As one type of compressed workweek, the four-day workweek is growing in popularity worldwide. This typically entails employees working four 10-hour days. Many professionals love this flexible work schedule as it allows them an extra day to spend as they please.

Depending on your business operations, you may let employees take three consecutive days or any three days that work for them. This is also a great way to ensure you have coverage for all essential roles, especially if you run a 24/7 operation. And team members will love the freedom of a third day off.

2. 9/80 Work Schedule

The 9/80 schedule is another kind of compressed work week. This breaks down two work weeks into eight nine-hour days, one eight-hour day made up of two four-hour periods, and one day off. Basically, employees “earn” two days off a month.

An example 9/80 work schedule may look like this:

Monday-Thursday: Work 8 a.m.-12 p.m., 1-hour lunch, work 1 p.m.-6 p.m.
Friday: Work 8 a.m.-12 p.m., 1-hour lunch, work 1 p.m.-5 p.m. (second week begins at second period)
Monday-Thursday: Work 8 a.m.-12 p.m., 1-hour lunch, work 1 p.m.-6 p.m.
Friday: Day off

You can set the hours according to what works best for your business and employees, such as 7 a.m. to 5 p.m. It just needs to consist of four days with nine hours of work each day.

Both employers and employees can benefit from this uniquely flexible work schedule. Employees feel motivated to work hard toward their day off, and employers can set a schedule that guarantees adequate coverage.

For example, if you feel you can’t give the whole team Friday off, you can allow half the team to take off Friday and the other half to take off Monday.

3. Flexible Daily Schedules

Perhaps you want to give employees more leeway and let them set their own hours. If your business or certain roles don’t rely on team members being in the office at specific hours, you may allow people to come and go as they please as long as they meet their hours and deadlines.

If you need to ensure consistent coverage, you could allow employees to set their hours which becomes their regular schedule. For example, someone could work 7 a.m. to 4 p.m. or 10 a.m. to 6 p.m.

Or you could permit somewhat flexible job schedules in which employees work during essential hours, such as 9 a.m. to 2 p.m., with the option to come in early and leave early, come in later and leave later, or take extra time at lunch they make up.

4. Alternative Schedules

Do you have jobs that can be done on an alternative schedule, such as the second shift, overnight shift, or weekends? These flexible work schedules could appeal to those who can’t work standard schedules due to child care, personal matters, or other jobs.

Plus, you can continue operations during non-traditionial hours. Certain tasks are even easier to complete on an alternative schedule, such as some warehouse jobs and deliveries.

5. Remote Work

The beauty of remote work is it can look so many different ways! It can be flexplace, when employees have the option to work remotely certain hours or days of the week.

Perhaps you allow telecommuting, which involves the employee working remotely and from the office as they choose or is agreed upon. This could include working from home or from a coworking space, which is great for companies with geographically spread-out teams that don’t want to rent an office.

Some companies even offer snowbirding programs, allowing employees to work from a warm location during the winter months. This is a great way to attract more candidates of all ages.

Of course, you can also have a 100% remote team. This is becoming more common among national and global companies whose business doesn’t rely on their physical location. Remote work can open you up to top talent worldwide.

Just keep in mind that a remote workforce requires effective communication channels, from chat to video conferencing, to ensure positive morale and productivity.

6. Part-time Positions

Offering more part-time positions reduces your number of full-time employees and offer flexibility for those who can’t work a full-time job, such as students, those caring for family members, or partially retired professionals. As the name implies, part-time employees work fewer hours or days than full-time workers.

It’s critical to classify and pay part-time employees appropriately. Typically, they are non-exempt, meaning they’re paid hourly and eligible for overtime. Failing to classify and pay employees correctly can lead to lawsuits and hefty penalties.

7. Job Sharing

Job sharing refers to splitting the responsibilities of a full-time job between two part-time employees. The two employees divide their workweek to complete a job or task.

As an employer, you can benefit from work sharing by having an assigned job covered even when one team member is absent. This way, you can avoid the hassle of finding alternate coverage for an important job or project.

When utilizing job sharing, leadership should be sure to distribute the time and responsibilities fairly in job sharing situations.

8. Additional Paid Time Off

Consider giving employees extra or even unlimited paid time off. This appeals to the younger members of today’s workforce who can achieve their flexible work schedules and work-life balance with PTO they can use as desired.

When you do give additional or unlimited PTO, you should have a policy around it outlining expectations and guidelines on submitting time off requests.

Maintain a Modern Workplace with Flexible Work Schedules

Flexible work scheduling is one of the most effective ways employers can foster a positive work environment. You can attract and retain talented, loyal team members while ensuring you have all the necessary positions and shifts covered.

Flex schedules don’t need to be complicated, either. By evaluating your company’s needs and operations, you can determine what kind of workweek works best for you and your team. And with solid policies and processes in place, you’ll set clear guidelines and expectations for all employees from Day 1.

Need support as you choose the best flexible work schedule for your organization? Contact BlueLion today at info@bluelionllc.com or 603-818-4131 for assistance and to learn about our outsourced HR projects, which can offer all the guidance you need to build a happy and engaged team!

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.

4 Metrics (Plus A Bonus Tactic) To Help Weather The Great Recession

December 15, 2022

Has HR ever had more on its plate than the past couple of years? From a worldwide pandemic to a shift in where you do your work every day, your head is probably spinning from trying to keep up. Many businesses are still grappling with the impact, especially trying to keep their employees during The Great Recession.

One way to chart your path forward in today’s uncertain environment is to keep your eye on your data. But which data? It seems like there’s a different metric for every day of the week (and 2 for Sundays)! Here are 4 of the data points you should keep an eye on, plus one bonus tactic that will help to make your data really sing.

1) Replacement Cost

What? The total cost associated with hiring an employee to replace one who’s left.

Why? You might be scratching your head, wondering why this is the top data point to focus on if the point is to keep your employees. Simply put, the best way to retain your employees is to have a solid grip on just how they’re worth, and how much it would cost to replace them.

How? According to SHRM, a conservative estimate of this cost is between 50%-75% of an employee’s annual salary. For an employee earning $30,000, that’s a minimum of $15,000. What goes into that? HR time spent advertising the position, interviewing candidates, and performing background checks. But other departments contributed their employees’ time to reviewing applications and participating in the interview process, and then onboarding the new employee after a hire. This also encompasses delays in critical project timelines caused by insufficient staffing. If the new hire will require specialized training or certification, that should be included as well.

2) Employee Engagement

What? A measure of how connected an employee feels to the company and to his/her role as a contributor to the company’s initiatives.

Why? First and foremost, it’s the right thing to do. Being concerned about how satisfied or engaged your employees are shows basic respect for them and the skills and talents they bring. But for the company, it makes good business sense, as so many studies have shown. Companies with higher employee engagement rates see higher productivity; stronger customer relationships; fewer safety incidents and absenteeism; and higher customer metrics overall. The bad news is that the latest Gallup State of the American Workplace survey found that just 33% of US companies have employees that are “engaged,” the lowest figure seen until now.

How? There’s no shortage of ways to measure employee engagement. One typical way is to send out a survey, usually annually, and ask questions touching on this topic. Another is to calculate the company’s Net Promotor Score, which measures how likely an employee is to recommend the company to their family and friends.

Consider, though, a more “old school” way of measuring, through a stay interview. Coined by Beverly Kaye over two decades ago, these conversations occur before an employee has signaled their intention to leave. As Kaye and others have found, simply asking, “What will it take to keep you here?” is a powerful question. Consider having these conversations with your employees, and keeping a list of the topics that come up.

3) Retention Rate

What? The proportion of a group of employees who remain out of the total group that began at the same time.

Why? Understanding which employees are leaving your company is important to ultimately understanding what might be causing them to leave. And keeping track of this can be helpful, since it puts departures into black and white. You might have an impression of what’s happening, but seeing the actual numbers can set the story straight and give you a solid basis to implement action.

It can also bring to light problems you might not have been aware of in certain locations of your company, or among several different groups of employees (think Sales vs. Warehouse). Since Retention Rate is a lagging indicator – meaning that the thing you’re tracking has already happened – this is best used in conjunction with the other measures mentioned here, not on its own.

How? Choose a starting point in time, perhaps a particular month, and tag all the employees who joined the company during that time range. Next, count how many of that original group of entrants are still with the company at points of time in the future. For your company, it might make sense to measure at 3 months, 6 months, and 1 year. This will give you good data about how employees who all entered at the same time behaved. Did more than expected leave? Was there an event that might have triggered this?

4) EAP Usage

What? The count of employees using the various offerings, by month and by year.

Why? Following on the suggestion above of conducting regular Stay Interviews, look at how your employees are using your Employee Assistance Program (EAP). (All this data is aggregated, of course, and no personally-identifiable information should be available to you.) Keeping an eye on this will allow you to keep a finger on the pulse of how your employees are doing, whether they’re thriving, and whether there are any additional benefits that you could offer to meet their needs. This data would also be useful to alert managers or supervisors about what their employees (in general) might be facing, so they can respond accordingly.

How? You’ll want straightforward counts to measure this. Ask your EAP provider for a report that shows the count of all contacts with employees, including what the reason was for the contact. (They’ve probably already developed categories for this.) Look at the tallies by month to start, and sort from the highest to the lowest. Start by focusing on the top 5, and note especially if the categories in the top 5 remain consistent or change often.

To really make your data sing, use the Bonus Strategy below:

Unpack Your Data

What? Break down your overall numbers into smaller groupings.

Why? Looking at each of these for your overall company is going to be extremely helpful, but to really target what might be driving departures, you need to look below the overall numbers. What’s happening not just at the company level, but at the department level? What does EAP usage look like among employees in Sales compared to the Warehouse, for example?

How? Take the analysis you’ve already done for any of these measures and simply break it into categories, like department or job type or geographic location. Take a step back and compare whatever the measure is across these groups, and see whether anything looks curious or unexpected. That’s your starting point for asking more questions and really getting to whatever the drivers are at your company.

About the Author

Julie Alig, Ph.D., is Founder and CEO of JLA Analytics, LLC, which helps organizations translate their data into actionable information. After earning her Doctorate in Political Science from the University of Chicago, Dr. Alig spent 20 years in higher education administration providing C-suite decision support using predictive analytics and statistical modeling, data visualizations, and interactive dashboards, among others. She has held multiple leadership and elected positions in the Northeast Association for Institutional Research (NEAIR), and has delivered workshops and talks on data analytics at both regional and national conferences in the higher education field. Dr. Alig is active with the NH Tech Alliance, and with its initiatives surrounding women and girls in STEM.

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.

Why is Succession Planning Important? Preparing for Your Company’s Future

December 6, 2022

As a business owner or leader, you must always think ahead to prepare your company and team for the future. And while you may not want to think about your top-performing employees leaving, people will inevitably move on, retire, or pass away.

So, how can you ensure smooth transitions, minimize downtime, and reduce costs? By creating a succession plan!

Succession planning is the process of identifying and preparing employees in your organization to fill leadership roles as senior employees exit. The plan often includes:

Staffing and policy changes related to the employee’s departure
Shadowing and mentorship for the advancing employee
Multiple succession plans for one role based on various situations

Below, learn why this process is crucial for securing your company’s future, along with the steps for succession planning.

Why is Succession Planning Important?

So, why is succession planning important? Is it something every employer needs to spend time and resources on?

The short answer: Yes!

A succession plan safeguards your business against uncertainty and disruption when a leader exits. It ensures the continued operation of your company for both planned and unexpected departures of key employees.

Succession planning offers five vital benefits:

Improve Performance Management

During the succession planning process, you will identify and develop employees with unique skills and talents who can grow into executive positions. This also enables you to spot their weak areas and develop strategies for improvement. You can monitor and address these areas during regular performance reviews.

Additionally, a succession plan helps maintain clear expectations for each employee affected by the staffing change. Performance and productivity will continue without significant hiccups.

Boost Employee Retention

Most employees seek opportunities and room for growth. Show them they have a future with your business with a succession plan that maps out their potential path. When you know of a senior employee leaving on a specific date, a succession plan for the advancing employee can be a powerful motivator by providing certainty about their promotion.

Demonstrating to your staff that you value them and want them to remain part of your team long-term will instill company loyalty and increase employee retention.

Maintain Stability & Productivity

Succession planning provides clarity and expectations for staff by communicating who will fill the position and any other related changes. It also supports continued business and employee productivity because everyone understands and is sufficiently trained for their role.

A succession plan is crucial for sudden departures, which could severely impact your organization and team if unprepared. Plus, it can boost morale by providing stability, which helps employees feel confident and secure. It can even motivate employees to take the initiative.

Reduce Recruiting Costs

Of course, one of the primary benefits of succession planning is the savings! Promoting current employees saves on recruiting and hiring costs to find external candidates.

Recent benchmarking data from the Society for Human Resource Management (SHRM) states that the average cost per hire is nearly $4,700. But many employers estimate the total cost can be three to four times the new hire’s salary when considering soft costs (i.e., time spent by executives and managers to support the hiring process).

Talk about adding up quickly!

Once again, succession planning minimizes productivity loss because an existing employee already understands your organization and won’t require as extensive training and lead time. The replacement will learn from the departing leader, absorbing their knowledge and skills.

Identify & Fill Competency Gaps

The final benefit of succession planning is recognizing and addressing competency gaps in your company. A competency gap occurs when the current competency level of your employees does not meet the required competency level. Examples include:

Skill gaps
Necessary executive positions
Potential future competencies

As you create a succession plan, you can consider these areas and formulate training and talent management programs.

6 Steps for Seamless Succession Planning

1. Create a Succession Plan Policy

Start by developing a policy noting which positions require succession plans and which non-required roles could benefit from a plan. This guides your team in managing a transition and when a new plan is necessary.

Include in the guidelines a request for as much advanced notice as possible from senior employees to facilitate the succession plan and transition. You should also communicate this to new leaders as they step into their roles.

2. Prepare for Multiple Scenarios

Plan for both expected and unexpected departures in your succession plan. You can’t always predict personnel changes and could experience more than one surprise exit at once. Your plan should include:

Long-term plans for the replacement
Short-term strategies to reduce the effects of staffing changes

3. Focus on Specialized Roles

Prioritize succession planning for roles requiring specialized skills and knowledge, which will be the most difficult to find a replacement for during a transition. Identify employees in your business who will be best suited to take over these positions to avoid major disturbances.

4. Offer Employee Development Resources

On a related note, you can ensure you have existing employees ready to move up by providing a range of development opportunities. These might include:

Continued education (e.g., classes, certifications, seminars, etc.)
Bringing in outside experts
Mentorships with current leaders
Partnering with career and leadership coaches

Training and mentorships should encompass hard and soft skills to develop well-rounded, productive leaders and ease these transitions.

5. Identify Top Potential

An essential part of succession planning is listing employees who have the potential to advance into leadership positions. Once you create this list, you can focus on specific development strategies to foster their growth.

You might use multiple methods to identify future leaders, such as gathering feedback from other senior employees, analyzing performance review data, and various assessment tools for succession planning (e.g., simulation and personality testing).

6. Establish a Transition Process

While this may look different for each role, establishing a steady transition process is key to a successful succession plan! You can mitigate disorganization and disruption when the:

Incoming employee trains and works with the departing leader
Exiting employee progressively hands over responsibilities to the replacement employee

This gives the new leader hands-on experience and plenty of room for questions and learning.

Plan Your Team’s Path to Success

Succession planning will vary based on your company’s needs, goals, and roles. But it’s never too early to begin this process and implement a policy. Preparing for various personnel changes will set your business and team up for future success by:

Improving performance management
Boosting employee retention
Maintaining stability and productivity
Reducing recruiting costs
Identifying and filling competency gaps

Do you need an outside perspective as you develop succession plans for key leadership positions? Check out our outsourced HR solutions or contact us at 603-818-4131 or info@bluelionllc.com to learn how we can assist your team!

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.

Using Personal Vehicles for Work: What’s the Employer’s Liability?

November 23, 2022

Do employees pose a risk to your business when they use personal vehicles for work duties?

The short answer: Yes! This is why it’s crucial that both employers and employees are sufficiently covered and employers understand their responsibility.

When an employee drives their own car, it’s referred to in insurance lingo as a “non-owned vehicle.” This simply means the company doesn’t own it. So, what happens when an employee is in an accident while driving their personal car for work-related purposes? Keep reading as we cover:

Examples of work-related driving
Employer responsibility and risk (workers’ compensation, insurance, and other liability)
Employee responsibility
How to protect your business and employees

What Qualifies as Work-related Driving?

When employees use a personal vehicle for work, there’s more to consider than mileage reimbursements.

It is considered business purposes when an employee uses their car for job duties while on the clock or performing a task at the employer’s request and benefit. A few examples include:

Driving to sales and clients meetings
Running company errands (e.g., going to the post office, bank, or office supply store)
Picking up food for a company event
Delivering something to another business

However, employers are not responsible for employees running personal errands. The coming-and-going rule also generally excludes the commute to and from work, which applies to both travel pay practices and accidents during work time.

What is the Employer’s Responsibility & Risk?

To understand your responsibility as an employer, you must understand vicarious liability. Also known as “respondeat superior,” it dictates that the employer is legally responsible for the actions of their employees. This includes negligent actions on the job or while driving for business.

If your employees are using personal vehicles for work, you could be on the hook for the following:

Auto Insurance: Typically, commercial auto policies provide coverage when an employee’s auto insurance doesn’t fully cover the damages.
Workers’ Compensation: Similar to workers’ compensation for remote employees, a company will have to pay out the benefit if an employee is injured in an accident performing work duties on company time—even in their own vehicle, no matter who was at fault.
Liability Insurance: An employer’s liability insurance usually covers the costs of damages sustained by third parties, including medical bills, lost wages, and pain and suffering. It can also cover an employee’s legal fees if third-party claimants sue them.
Negligent Entrustment: If a company gives a dangerous instrument (like a car) to an individual who is not equipped to handle it safely, and that individual causes injury to a third party, the company could be liable for punitive damages.

So yes, your business could be exposed if an employee gets in an accident while driving their personal vehicle for work reasons. At the very least, you’ll need to cover workers’ compensation for the employee.

A Note on Non-owned Auto Insurance

Non-owned auto liability insurance covers injury and property damage caused by vehicles owned by others, typically your employees. While it is usually added to a business auto policy, businesses without one can add it to their general liability insurance.

Non-owned auto insurance protects your business if you are found legally responsible for a car accident an employee had in their own car during company business.

What is the Employee’s Responsibility?

Employees who use their personal vehicle for work must have auto insurance. In an accident, the employee is usually responsible for their deductible and other damages to their car. Although the employer is usually not required to reimburse for these items, they could choose to assist the employee for car damages and insurance deductibles.

Employees are also responsible for:

Accidents occurring while commuting or traveling between job sites
Damage to their vehicle in a workplace parking lot or garage

Employee Personal Car Use: How to Protect Your Business

For many small businesses, employees using personal vehicles for work-related tasks is unavoidable—especially if they rely on salespeople or other professionals that need to be physically in the field.

Fortunately, there are several ways to protect your company and team members driving their own cars:

Keep a record of all employees who drive (or could drive) personal vehicles for the business, including current driver’s licenses and safety inspection certificates.
Mandate that employees have personal auto insurance with at least $500,000 in liability.
Require yearly proof of employees’ personal insurance policy.
Request that employees sign Motor Vehicle Authorization (MVR) forms and pull their records annually.
Develop driver eligibility guidelines noting the maximum number and type of violations or accidents that disqualify employees.
Invest in non-owned auto insurance and umbrella policies.
Create a policy containing all the above details and guidelines for driving for company purposes, then have employees acknowledge and sign it. (Don’t forget to include it in your employee handbook!)

Do you have or are you planning to have employees use personal vehicles for work purposes? Ensure you’re covered and protect your team with adequate insurance and a comprehensive policy. If you have questions or want to discuss what your program should look like, contact BlueLion 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.

The What, Why & How of Floating Holidays

November 15, 2022

Floating holidays are a great way to give your employees more time off. They’re also a way to attract new talent by offering something unique and different from other employers. These flexible days allow you to schedule days off based on employees’ schedules and needs, which can be especially helpful for remote workers or those with non-standard hours.

If you’re wondering, What does floating holiday mean, exactly? You’re not alone! It’s still somewhat obscure, but more employers are starting to embrace it as they enhance their employee benefits packages.

Let’s dive into floating holidays, why businesses should consider them, and how to implement them properly.

What is a floating holiday?

Employees can take a floating holiday at any time during the year without dipping into their paid time off (PTO), vacation days, or sick days. Staff can use their floating holidays at their discretion. It’s up to the employer to set guidelines.

Similar to floating days or flex days. they’re meant to allow employees more flexibility in their schedules rather than giving them extra time off that they can’t use until later in the year.

Floating Holidays vs. PTO

So, what is the difference between floating holidays vs. PTO? The primary difference is in how each is accrued:

PTO: Typically determined by how long an employee has worked for your company
Floating holiday: Available immediately to all employees, no matter their tenure

Why should employers offer floating holidays?

Practice Inclusivity

Offering floating holidays shows that your organization is inclusive and embraces diverse cultural and religious beliefs. You may have employees who don’t observe the mainstream holidays included in your company calendar but would like time off to celebrate other holidays.

For example, Muslim employees could use them to celebrate Eid Al-Fitr. Others could choose to observe public holidays like Martin Luther King, Jr. Day or Veterans Day (if your business doesn’t already offer these as paid days off).

Keep Business Going

Plus, team members who don’t celebrate federally recognized holidays may not mind working on them (e.g., Independence Day, Thanksgiving, Christmas). They could help keep your company running these days while the rest of the team can still take the day off.

Focus on Employee Wellness

Floating holidays are flexible, allowing employees to take time off when it suits them best. They can balance work and family life pressures, which is especially important for parents of young children (or those with aging relatives) or people caring for loved ones with health conditions. This can have a positive impact on employee morale and well-being.

Stand Out

People are searching for employers focusing on their work-life balance, meaning unique benefits and flexibility. Many are even willing to take a pay cut in exchange for things like more time off. Floating holidays are a cost-effective, manageable way to offer more days off to your employees while helping your business stand out from the competition.

How to Implement a Floating Holiday Policy

As with any other workplace benefit, being clear about what kind of leave is available and when employees can use it will help make sure everyone’s on the same page. Consider the following factors as you develop your floating holiday policy.

Eligible Dates & Restrictions

Floating holidays are meant to be flexible—so let them be just that! Employees should be able to use their floating holiday days however works best for them and their families; if an employee wants to take several consecutive days off or spread them out over several weeks, that’s up to them (and their manager).

Depending on your industry, however, you may need to set restrictions. This could mean:

Excluding them during your busiest days/weeks
Staggering who takes a floating holiday when to ensure you are sufficiently staffed
Designating certain days as floating holidays (e.g., offering Christmas Eve as a floating holiday when it falls on a weekday)

Just avoid blocking off an entire month, as this counteracts the benefit of the floating holiday.

Eligible Employees

While floating holidays should be available to all employees, it’s wise to include certain caveats to ensure people don’t take advantage of them or cause scheduling issues. These might include:

Restrictions on when employees in certain departments can use them
How many floating holidays an employee receives based on when they start with your company (i.e., the first half or second half of the year)

Prior Notice Requirement

It’s best to include guidelines about when employees should notify their managers about their floating holiday request. Adequate notice will reduce stress and scheduling mishaps. Just try not to have very rigid requirements—a few days or more typically does the trick.

Of course, if an employee needs the time for a family emergency or another unexpected reason, managers should be as flexible as possible in letting employees use the time.

Rollover

It’s typically up to the employer whether or not staff can carry over unused floating holidays. Most businesses don’t allow rollover, but you must stay up on your state’s laws as some states prohibit “use it or lose it” vacation policies.

If you’re in one of those states, you might consider paying employees for unused time yearly to prevent excessive accrual and ensure fair compensation.

Payout Upon Termination

Speaking of unused time, are floating holidays paid out upon termination? This also depends on state law.

If you allow employees to take floating holidays at any time, they’re considered vacation time. Meaning you’ll be on the hook to pay it out upon an employee’s termination according to state law and your PTO policy (though this isn’t the case in every state).

However, if you offer a floating holiday tied to a specific holiday and an employee quits before that holiday, they are not entitled to a payout. This is because their employment through the holiday was a condition of the floating holiday payout.

Number of Floating Holidays

Since employers are not legally required to offer floating holidays, they can decide how many they’d like to provide a year. In the SHRM Holiday Schedule Survey, 30% of companies said they offer employees one or two floating holidays yearly.

Final Thoughts on Floating Holidays

Floating holidays are an excellent option for companies that want to offer more time off without increasing costs. When managed correctly, they can be a cost-effective way to give employees more time off without increasing costs. The key is to understand their advantages and disadvantages and how to implement them at your company.

Most importantly, develop and distribute a fair, robust floating holiday policy to your team and ensure you comply with state laws regarding PTO.

For more guidance, contact BlueLion today at info@bluelionllc.com or 603-818-4131, or learn more about our outsourced HR services. We will be happy to help you build out a benefit that suits your company 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.

How NOT to Onboard New Employees: 9 Mistakes to Avoid

November 8, 2022

We often hear about how to onboard new employees, but what costly mistakes should employers avoid? The lengths you go to welcome, train, and integrate new hires in their first days, weeks, and year has a lasting impact on morale and performance.

Hence, a solid onboarding program should be the first line of defense in your employee retention strategies!

Some start off strong, but the efforts dwindle after the first few days or weeks. Some inundate new team members with information and throw them to the wolves. Other organizations have no onboarding process.

There are several key areas where many companies get it wrong, missing significant opportunities to set the tone and hold onto their talent. Below are nine common mistakes to avoid during new employee onboarding.

1. Not having an employee onboarding process

Often, businesses hire when they’re growing rapidly and need more bandwidth. The owner and managers are overwhelmed. Without an employee onboarding process, the whole thing gets pushed to the bottom of everyone’s priorities. New hires are left to sink or swim.

The lack of an onboarding program causes new hires stress, confusion about their job and responsibilities, and frustration. There are oversights, and both managers and employees are left scrambling. Not to mention, managers and peers are unclear about their roles in the onboarding process. In turn, your business experiences poor employee performance, productivity, job satisfaction, and retention.

Implementing a thorough program is crucial to making an excellent first impression and encouraging employees to stay. Learn about the five stages of new employee onboarding and what to cover in each phase.

Do you have virtual team members? You’ll need a specific strategy for onboarding remote employees to ensure they feel supported and engaged, even from a distance. This will take a more conscious effort in areas like face-to-face interactions, digital platforms, and virtual training.

2. Viewing it as an exclusive HR responsibility

It’s not only on your HR team to onboard new employees; you must also get buy-in from managers. Unfortunately, many leaders figure it’s up to HR to ensure new team members get all the support, information, and training they need. This often results in disengaged employees who don’t stick around long.

When managers actively engage with new hires, it profoundly impacts their early experience with the company. Gallup found that employees are 3.4 times more likely to strongly agree their onboarding experience was exceptional when managers take an active role in the process.

3. Not giving them a new hire buddy

As the business owner or manager, you likely won’t be available 100% of the time for new hires. So who can show them the ropes regularly? Provide new perspectives and tips from someone who enjoys working there? You’d be remiss not to assign a new hire buddy!

Pair your newest team member with a buddy or mentor to help them better understand the company and culture. A good match is an employee with a positive, outgoing, welcoming attitude. The newbie may be more comfortable turning to a peer with certain questions than their boss.

4. Confusing new employee onboarding with orientation

Many employers think the basics, like completing new hire paperwork and reviewing policies, manuals, benefits, and administrative procedures, cover onboarding. But that’s all part of the orientation process, not to be confused with onboarding.

Orientation is more like one important step when you onboard new employees. The onboarding program should be a long-term strategic plan lasting a year or more. It gradually integrates the new employee into the organization’s policies, processes, and culture.

5. Skipping preboarding

Preboarding covers all that fun new hire paperwork mentioned above, setting up the new employee’s office, and sending the company-wide welcome email to introduce them to their colleagues. As you consider best practices for employee onboarding, remember that the process starts before your new hire does!

If you wait until they start to have new employees review and sign their paperwork, they could sit for hours going through it all. And if they don’t even have their essentials like a computer, their early days could be mind-numbing and isolating. This is all a waste of your company’s valuable time and your new employee’s talents!

Plus, if new hires are not welcomed and introduced to everyone, their colleagues may be unclear about their start date, role, and duties. They also won’t be as prepared to support their new team member.

6. Making the onboarding program too short

Many companies want to onboard new employees as quickly as possible. Their team is on overdrive and under the gun, and they want someone who can rock their role ASAP.

But a Gallup poll “found that new employees typically take around 12 months to reach their full performance potential within a role.” This can be even longer for those in complex leadership and management positions.

You’ll miss out on regular feedback and development opportunities by rushing through onboarding in the first few days or weeks. And you’ll probably be tossing them into the ring before they’re fully ready and set up for success.

The first year should be an attentive, insightful time in which the manager monitors and discusses:

The new employee’s performance
Whether they’re a good fit for the organization
What their future with the company looks like

7. Failing to schedule regular check-ins

Managers often check in with new employees frequently during the first few weeks, then disappear. Again, onboarding doesn’t end after the first day or week!

Without regular check-ins, your newest team member could end up lost and isolated. They won’t know how to gauge their performance and may hesitate to ask for help. The new kid never wants to feel like the needy one!

Start with daily or every other day check-ins, then once a week, then every other week, and so on based on the employee’s development and needs. Use this time to ensure your new hire feels supported and confident in their job, and give them a chance to ask questions or get help. It’s also the perfect time to discuss their career path with the organization and reassure them they have a future there.

8. Overcommunicating

Although consistent, clear communication is key to successful new employee onboarding, there is such a thing as information overload. While it’s easy to get carried away and assume new talent is ready to take the reins immediately, giving them too much information at once can overwhelm them.

Avoid constant emails, phone calls, and even meetings. While those regular check-ins are important, managers should use them as support time for the new hire. Start by giving them the essential information during their first week. Plan out their assignments to ensure they have a handle on each process and task before adding too many responsibilities to their plate.

9. Not infusing your corporate culture

Today’s talent wants to find a workplace that offers more than good pay and benefits—they want an employer that stands out and aligns with their own values. If you don’t highlight what sets your organization apart, candidates and new employees won’t understand why they should want to work with you.

Show off your corporate culture when you onboard new employees by having leaders and team members share stories or conduct immersive experiences. For example, if your company cares about community service, share the nonprofits you support and examples of team volunteer days.

There is also a growing focus on diversity, equity, and inclusion (DEI) initiatives. Your team wants to know what you’re doing to make a difference in this area. Share your efforts, such as your DEI training and expert speakers.

WOW New Employees with a Powerful Onboarding Program

Investing in your new employee onboarding program up front will save you significant time, money, and headaches down the road.

The Society for Human Resource Management (SHRM) found that 50% of all hourly workers leave new jobs in the first four months, and 50% of senior outside hires fail within 18 months.

Spending all that money on recruiting and hiring new talent just to watch it walk out the door a few months or a year later? Ouch!

But when you develop a long-term, strategic onboarding process, you’ll see retention rates rise and create a healthy, positive workplace.

Whether you need to develop a new employee onboarding program from scratch or update your current process, BlueLion can help! Contact us at 603-818-4131 or info@bluelionllc.com to learn how 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.

17 Employee Appreciation Ideas from Simple to Next Level

November 1, 2022

We talk a lot about employee engagement and workplace culture here at BlueLion. And we practice what we preach, taking our team on memorable outings and implementing new employee appreciation ideas regularly.

Why? Because we know that even small gestures of employee recognition make a difference and motivate our talented team!

And we’re not the only ones. The Society for Human Resource Management (SHRM) reports that 79% of employees work harder when their efforts are recognized.

Showing employee appreciation can also positively impact a company’s bottom line. A Gallup poll found that organizations with higher employee engagement see a 21% higher profitability.

With a solid employee recognition program that focuses on performance (rather than tenure), employers can increase:

Employee morale and engagement
Employee productivity and performance
Trust between staff and management
Employee retention
Overall workplace culture

Need some fresh employee appreciation ideas to show your team some love? Read on for a mix of simple and elevated ways to thank your employees!

17 Employee Appreciation Ideas to Help You Brainstorm

1. Throw an Employee Appreciation Day celebration.

Mark your calendar for the first Friday in March: Employee Appreciation Day! This event was created to remind business leaders of the importance of meaningful employer-employee relationships to build a successful business.

For a fun-filled, memorable employee appreciation idea, consider organizing a:

Barbecue
Casual office party
Happy hour with a hired bartender
Game day with fun activities and contests
Team outing

Make Employee Appreciation Day all about your team!

2. Thank and recognize employees publicly.

Sometimes, simple employee recognition goes a long way. Send an email or use your company’s intranet or Slack channel to give staff members a shoutout when they’ve done a stellar job. Share them on social media so your entire audience can get to know your awesome team.

For an extra nice touch, you could even write your employee a LinkedIn recommendation to help them find success now and in their future career!

3. Give them a spot bonus.

It may not be the most unique employee appreciation idea, but everyone appreciates more money. A spot bonus is ideal for someone who carried a big project over the finish line. Perhaps they got it done ahead of schedule, under budget, and went above and beyond to see it completed — or overcame challenges during the project to ensure its successful completion.

4. Show employee appreciation with the gift of time.

Besides money, one of the most valuable things you can give your employees is time. Recognize their hard work with a break. Let them go home early or give them an extra day of PTO after they’ve demonstrated exceptional effort or a job well done.

5. Pay for a new learning opportunity.

Whether it’s a conference, online certification/course, or tuition reimbursement, consider rewarding driven employees by supporting them as they learn and develop their skills. This employee appreciation idea will show you care about their growth and boost their morale.

6. Offer a gift card to their favorite spot.

Everyone loves a gift card! Find out your employee’s favorite coffee shop, restaurant, or retail store so they can treat themselves. This works best when you tailor the gift card to their preferences.

7. Treat them to a nice lunch.

Lunch is a meaningful form of employee recognition for individual employees, as it allows managers to spend one-on-one time in a more relaxed setting with an employee.

Team lunches are also great — next time your department completes a big project or hits a new goal, take them out to everyone’s favorite lunch spot! Or, you could have a special lunch catered. Either way, make sure to focus on your team member(s).

8. Surprise employees with a spa day.

If you want elevated employee appreciation gifts, consider pampering team members with a spa day! Make this part of your employee recognition program for top performers as a special incentive and a way to pamper themselves.

9. Host an entertainment event.

Whether you make it a daytime event or an evening occasion, hosting an entertainer is a unique way to show employee appreciation! Invite a singer, band, or comedian to perform onsite, or enjoy a company outing to the local entertainment hotspot.

Bonus: This is a great way for team bonding and fun memories!

10. Subscribe them to their favorite thing.

Another fun employee appreciation idea (and one that employees will love since it could save them money) is a subscription to their favorite service or box. Consider:

Streaming services
Pet products
Snack boxes
Audio/podcast subscriptions
Magazines
Gyms, yoga studios, or other health and wellness services

…the list goes on! As long as you have an idea of your employee’s interests, you can find an affordable subscription they’ll love.

11. Level up the breakroom.

Treat your entire team by adding games, comfy seats for lounging, a nice kitchen facility, and massage chairs to the office breakroom. This could be a big undertaking, so it makes a great reward once your company reaches a big goal.

12. Treat them to travel.

This is another significant employee gift, so it’s great for monthly or quarterly recognition (depending on the type of travel). For example, you might pick an employee of the month and treat them to a weekend away. Think driving distance, a destination within two to three hours.

13. Cover commuting expenses.

While employers are not required to pay for employees’ travel time between work and home, covering their commute is certainly a nice thing to do — especially when some employees have longer or more costly commutes than others.

Consider subsidizing taxis, bus fares, or gas money to ease your employees’ expenses.

14. Show employees you care with career coaching.

When brainstorming employee appreciation ideas, don’t overlook coaching! Bring in a third-party career coach who can work with team members of all levels, from staff to leadership, to enhance their skills. Coaching helps boost their knowledge and confidence while mapping out their career path. Plus, it can create a more positive work environment and prevent performance issues!

Best of all, it shows employees you care about their professional goals and future.

15. Get out of the office.

Take the team on a local excursion! Go for a hike, visit the beach, or head to the nearest axe-throwing spot. Choose something fun and engaging that allows team members to blow off steam. This is another employee appreciation idea that fosters team building!

16. Plan a company retreat.

Has your company had a particularly great year, so you want to take that team outing to the next level? Show every employee appreciation with a memorable retreat!

Over the course of a couple of days, you can plan a mix of work-related and leisure activities. Company retreats also encourage team members to get to know one another better.

17. Bring in a food truck.

Chances are, you have a plethora of local food trucks near you. Schedule regular food truck days and rotate between types of food. From tacos to sandwiches to vegetarian food and beyond, there are plenty of options that can cater to everyone’s tastes!

Create an Effective Employee Recognition Program

It’s never to early or too late to implement an employee recognition program. Even a small, budding business can start with the simple and more affordable options. As you grow, you can add new activities and gifts to show your team you care and keep morale trending up.

Use these employee appreciation ideas as a starting point. Sometimes, a simple shoutout for a job well done goes a long way! Whatever you do, ensuring your team knows they’re appreciated will have lasting effects on your business.

For guidance on employee engagement and culture, contact BlueLion today at info@bluelionllc.com or 603-818-4131 to 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.

FMLA vs. PFL: What’s the Difference?

October 25, 2022

As an employer, you’re familiar with the Family and Medical Leave Act (FMLA), passed in 1993, to provide unpaid leave and job security to workers who need time off to care for a new baby or sick family member.

Now, more and more states are implementing paid family and medical leave (PFML) to provide employees with a paid leave option when they need time off work for similar reasons.

While the main difference between FMLA and PFML is the “paid” part, there are a few other differences between the programs. Not to mention, PFML laws differ by state.

Check out our quick and easy breakdown to clarify FMLA vs. PFL!

What is FMLA?

FMLA is a federal law that mandates covered businesses across the country to provide employees with unpaid leave.

What businesses are covered?

FMLA requires businesses with 50 or more employees to provide all eligible employees with unpaid leave. This includes private employers, public agencies, and private or public elementary/secondary schools nationwide.

Which employees are eligible?

Employees who have been with the employer for 12 months and have worked at least 1,250 hours over that time qualify for unpaid leave through FMLA.

How long is FMLA?

Eligible employees can take up to 12 weeks of job-protected leave in a calendar year to care for family or medical reasons. Those caring for a family member in the military can take up to 26 weeks of leave.

What does FMLA leave cover?

Employees can use FMLA for:

The birth, adoption, or foster care placement of a child
The care of a spouse, child, or parent with a serious health condition
A severe personal health condition that prevents the employee from doing their job
A situation that requires attention due to the military deployment of a spouse, child, or parent

What are the employer’s responsibilities?

Since FMLA is unpaid, there are no payroll deductions. Employers must simply guarantee an employee their previous position or a similar role and compensation upon return from FMLA. They must also continue providing the same health insurance the employee had before taking leave.

What is PFML?

Paid family and medical leave (PFML), also known as paid family leave (PFL), is a state-mandated law that, as the name implies, provides paid leave to qualified employees for family and medical reasons.

Each state develops its own program, so details vary from one state to the next. Now, even certain cities, such as San Francisco, are implementing specific PFML laws.

Find out which states currently have mandated and voluntary PFML programs.

What businesses are covered?

Typically, each state has one law regarding paid family and medical leave. The requirements vary.

For example, the Massachusetts Paid Family and Medical Leave states that all Bay State businesses may be subject to PFML law, even if they’re not subject to FMLA. A company can apply for exemption if they provide benefits equal to or greater than PFML benefits and, if approved, do not have to make PFML contributions.

Then there is Connecticut, whose PFMLA law covers all employers with one or more employees.

Which employees are eligible?

Employee eligibility and definition of family members also vary from state to state. This typically depends on how long they’ve worked for the company and if they’ve reached the wage earnings threshold—numbers that also vary by state.

There could also be specific rules based on worker classification, including:

Full-time employees
Part-time and seasonal workers
Self-employed individuals (i.e., independent contractors and sole proprietors)
Out-of-state employees
Public employees
Domestic workers

How long is PFL?

Again, this differs in each state’s law, ranging from two to 30 weeks in a single year.

In Massachusetts, eligible employees can take up to 12 weeks of paid family leave, up to 20 weeks of paid medical leave, or up to 26 weeks of combined PFML in a year.

Connecticut’s CTPL program provides up to 12 weeks of paid leave. Those who experience a severe health condition during pregnancy, leaving them incapacitated, may qualify employees for an additional two weeks of paid leave. Paid leave benefits may be taken as consecutive days and weeks and, in some circumstances, intermittently.

What does paid family and medical leave cover?

Generally, paid family and medical leave laws cover the following:

Paid family leave: For the employee to bond with a new child or care for sick family members
Paid medical leave: For the employee to care for their own severe illness

As with most of the details, coverage specifics also differ by state.

The United States does not have a federal parental leave law, and many employers still don’t offer parental leave, so parents often use PFML as their parental leave.

While some states, like Connecticut, include specific coverage for pregnant employees, this is not always the case. Pregnant individuals might need to combine vacation, sick, holiday, personal, short-term disability coverage, and/or unpaid leave. This will depend on their employer’s PTO policy.

How much are PFL wages?

Every state sets a wage replacement percentage and maximum, which—you guessed it—varies! This rate could range from 40% to over 100%, and maximums also range widely. Some states even base it on minimum wage versus state average weekly earnings.

Often, PFML laws provide low-wage earners with higher wage replacements and middle or high-wage earners with lower wage replacements.

Who pays for PFML?

Once again, depending on the state’s PFML law, the employer, employees, or both could be responsible for paying into a paid leave fund. Usually, it’s a combination of both employer and employee contributions.

Employers are also responsible for deducting the required percentage from workers’ wages as post-tax contributions (i.e., remember to withhold taxes from employees’ pay before deducting state premiums.

Understanding FMLA vs. PFL

The most significant difference to remember when understanding FMLA vs. PFL is that one is unpaid and paid!

Of course, the laws are a bit more nuanced than that. With 13 states currently requiring or implementing PFML programs, it is increasingly important for employers to stay on top of their local laws. Some are mandated, and others are mandatory. Every program varies when it comes to:

Employer and employee eligibility
Qualifying reasons
Duration
Definition of a family member
Funding requirements
Wage replacement amount

We get it—understanding FMLA and PFL laws can be a tad overwhelming. If you have questions about your local laws and how they apply to your business, BlueLion has answers! Contact us today 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.

COBRA Health Insurance Explained in 9 FAQs

October 18, 2022

The time has finally come: You have to provide COBRA health insurance coverage for a departed employee.

If this is your business’s first time handling this gap insurance, you probably have a lot of questions, like:

What is COBRA insurance?
How does COBRA work?
Do all employers have to offer COBRA?
Who qualifies for COBRA?
Who is responsible for what?
What is an election notice?
How long does COBRA coverage last?
What are the benefits of COBRA?
How much is COBRA insurance?

Read on for the simple breakdown of all your questions about COBRA health insurance and ensure compliance with this federal law.

9 Most Common Questions on COBRA Health Insurance

1. What is COBRA insurance?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allows employees who lose their health benefits to continue receiving coverage from their employer’s group plan. It was passed to cover people losing health benefits due to employment termination.

COBRA health insurance coverage extends to a worker’s qualified beneficiaries and ensures an employee and their family have health insurance when they have lost benefits.

2. How does COBRA work?

A qualified employee can pay the total premiums to retain their group health insurance coverage. This means the employee would have to pay their own premium and the employer’s contribution—which can be three times as expensive for the employee.

3. Do all employers have to offer COBRA?

Not necessarily! It primarily depends on your company size. COBRA requires private employers with 20 or more full-time employees or full-time equivalents to provide employees and their beneficiaries the option for a temporary extension of their group health coverage.

Like everything, exceptions exist. For example, large companies with self-funded health plans are exempt from government regulation of their health coverage. But as a small employer with a fully-insured (i.e., outside) insurance company, you must comply with COBRA.

4. Who qualifies for COBRA?

Any employee enrolled in a company’s group health plan for one day qualifies for COBRA health insurance coverage. The employee and their beneficiaries qualify if:

The employee voluntarily leaves your company.
The worker is laid off, terminated, or fired.
The employee goes from full-time to part-time and doesn’t qualify for benefits.
The worker retires before qualifying for Medicare.
You (the employer) go bankrupt.

Additionally, a spouse or dependent children who have been covered under the employee’s health plan may qualify for COBRA if:

A covered spouse gets divorced or legally separated from the employee.
The covered employee dies, leaving qualified beneficiaries behind.
A dependent turns 26 years old.

5. Who is responsible for what?

Employers must:

Inform their plan administrator within 30 days of a qualifying event
Provide employees with a summary plan description (SPD) explaining how to transition to COBRA
Collect the premium payment from covered individuals
Send an election notice within 14 days of notifying the plan administrator

Employees have up to 60 days from when the employer sends an election notice to choose or waive COBRA health insurance coverage.

6. What is an election notice?

Employers must send a COBRA rights notification, or election notice, within 44 days from the date of the qualifying event. The election notice must be in writing and include the following:

An explanation of how to elect COBRA insurance
The election deadline
Plan administrator contact information
The start date of the COBRA coverage
The maximum length of continuation coverage
The monthly COBRA premium amount
Monthly payment due dates
Any premiums owed from a retroactive period of coverage
Where to send premium payments
A qualified beneficiary’s rights and obligations regarding COBRA coverage
Early termination reasons

7. How long does COBRA coverage last?

COBRA health insurance must be available for a limited period of 18 or 36 months. This depends on the qualifying event, but a plan may offer longer periods of coverage beyond the maximum period legally required.

Employees may receive COBRA for up to 18 months for employment separation or reduction in hours. COBRA must be available for up to 36 months for other qualifying reasons. And in certain circumstances, employees could become eligible for an extension of the maximum period—specifically, when a qualified beneficiary is disabled or a second qualifying event occurs.

On the other hand, COBRA eligibility could end early when an employee no longer qualifies (e.g., doesn’t pay their premiums fully and on time or finds coverage under another group health plan).

8. What are the benefits of COBRA?

COBRA insurance is a continuation of an employer’s group health insurance, meaning employees who elect it will retain identical benefits to your current plan. Any dental, vision, and prescription medicines covered under the plan remain covered. Note that COBRA does not include disability and life insurance.

Although COBRA health insurance is costly, some employees opt to pay for it because employer health plans often include better coverage than those on the marketplace.

9. How much is COBRA insurance?

Employees who elect COBRA health insurance are responsible for 100% of the premium and could be subject to a 2% administrative charge. This means they could be on the hook for up to 102% of the cost!

Your company’s HR department or benefits specialist will need to inform workers of the cost of COBRA health insurance. And it should be stated in the election notice.

An enrolled employee will owe their first premium payment within 45 days after the date of their COBRA election (i.e., the date they send in their election form). Failure to pay on time could cost them all COBRA rights. The plan can set premium due dates for subsequent payments but must provide a 30-day grace period for every payment.

Covering COBRA Health Insurance

If you have an employee who has recently undergone a qualifying event, communicate with them up front and ensure they have all the necessary information. Having clear policies, procedures, and templates regarding your group health care plan and COBRA coverage is best.

If you want to verify that your COBRA health insurance procedures and notices are compliant, or if you simply have questions about how COBRA works, BlueLion can help! Contact us today at 603-818-4131 or info@bluelionllc.com to learn more about our outsourced HR projects and 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.