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2014 NC Policies & Benefits Survey Reveals Total Rewards Practices of NC Employers

Tuesday, September 9th, 2014

survey dataDuring last month’s Compensation and Benefits Conference, Molly Hegeman, CAI’s Vice President of HR Services, shared information on what NC employers are doing in regard to their total rewards packages. Her presentation included statistics from the 2014 NC Policies & Benefits Survey. The only local survey of its kind shares employers’ answers to 320 questions related to workplace policies and employee benefits practices.

This year’s survey had participation from 384 employers located throughout North Carolina. Forty-four percent of participants are located in the Research Triangle region, 25 percent are in the Charlotte area and 17 percent are located in the Piedmont/Triad region with the remaining participants in the East/Southeast region.

Some key findings from the survey revolving around health and welfare benefits include:

  • Nearly all employers provide medical insurance to their employees. About 78 percent of employers offer a traditional PPO plan, about 27 percent offer a consumer driven HAS plan.
  • Regarding employer contribution to the insurance premium, on average, employers pay 80 percent of the premium for employee only PPO coverage and 55 percent of the premium for family PPO coverage for full-time employees.
  • About 71 percent of employers do not offer domestic partner benefits. In turn, about 18 percent of employers do offer domestic partner benefits regardless of sex of partner. About 11 percent offer benefits with sex restrictions.

The survey also covered time off and results revealed several things, such as:

  • About 72 percent of employers have a PTO policy. On average, employers provide 6 days of PTO upon hire, 13-14 days of PTO after 1 year of service, 15 days of PTO after three years of service, 17-18 days of PTO after 5 years of service and 20-21 days of PTO to employees after 10 years of service.
  • About 68 percent of employers have a formal sick plan that is separate from a PTO policy. On average, employers provide 9 sick days to full-time employees per year.
  • On average, employers provide 9 paid holidays to full-time employees and 5 paid holidays to part-time employees per year.
  • About 9 percent of employers offer a maternity leave policy separate from short-term disability or FMLA.

Pay practices is another subject the survey tackled. Participant responses include:

  • About 61 percent of employers indicated a pay philosophy of paying employees at or above market rate. In turn, 34 percent have no formal pay philosophy.
  • To determine compensation decisions, about 77 percent of employers use external market analyses, about 70 percent use internal job evaluations, about 58 percent use skill or competency-based methods, and 11 percent have no formal method.
  • The most common type of base pay increase employers give is performance based according to up to 83 percent of employers. About 22 percent give an across the board increase, about 17 percent give a cost of living increase, and about 6 percent give some other type of increase.

CAI provides this survey every two years. Other topic areas the survey covers include retirement plans, workplace culture, recruiting and staffing, termination and HR metrics.

The 2014 NC Policies & Benefits Survey can be purchased from CAI’s store here. If you’re interested in participating in next year’s survey, please contact a member of CAI’s survey team at cai-survey-team@capital.org.

 

 

Helpful Information from 3 Presentations at the 2014 Compensation and Benefits Conference

Thursday, August 21st, 2014

Comp Ben Save Date 2014 (2)CAI hosted its 2014 Compensation and Benefits Conference at the McKimmon Center on Thursday, August 14 and Friday, August 15. More than 200 HR professionals and company executives attended the two-day event to review and discuss emerging workplace trends surrounding compensation, benefits and total rewards, as well as the impact these trends leave on culture and profitability.

This year’s conference speakers shared presentations on how to attract and motivate top talent, strategies to increase employee engagement, reinforcing a positive workplace culture, and more. Keynote presentations for the 2014 conference lineup included:

The Future of Attraction, Retention and Motivation: How Compensation Fits into the Process Anne Ruddy – WorldatWork

What Would Healthcare Look Like If Getting It at the Lowest Cost Was Your Key Priority? Skip Woody – Hill, Chesson & Woody Employee Benefit Services

Green Goldfish – 15 Ways to Drive Engagement & Reinforce Culture Stan Phelps – 9 INCH marketing

Leverage Marketplace Trends When Making Decisions about Compensation and Benefits Strategies Molly Hegeman – CAI

In addition to the keynote sessions, conference participants had the opportunity to attend several of the many breakout sessions. Why performance management fails, building high performing teams, work-site wellbeing, and understanding survey data are some of the topics of this year’s breakout sessions.

Below are three sets of insights conference speakers shared with last week’s audience:

–Anne Ruddy shared the changes in employee attitudes from recipients to consumers of rewards in her keynote presentation:

From:

Employer loyalty

Traditional work design

Pay = position

Retirement security

To:

Self-managed careers

Virtual, flexible environments

Pay = performance, market

Individual career management

 

–In the breakout session Why Performance Management Fails, Mike Maciekowich shared five reasons why companies need performance management systems:

  1. Help managers to observe their staff more closely and to do a better coaching job.
  2. Motivate employees by providing feedback on how they are doing.
  3. Provide back-up data for management decisions concerning advancement, transfers, dismissals, and so on.
  4. Improve organization development by identifying people with promotion potential and pin-pointing development needs.
  5. Establish a research and reference base for personnel decisions.

 

–CAI’s Sherry Hubbard-Bednasz explained the purpose of salary surveys in her presentation Taking the Mystery Out of Survey Data:

Salary surveys:

  • Provide a fair representation of pay practices occurring in the market
    • Sample reflects population
    • Consider source, methodology, transparency
  • Show how variables impact pay
    • Size of company
    • Industry/sector
    • Geography
  • Indicate trends in pay
    • Overall market movement
    • Movement in certain segments
  • Inform compensation decisions as a guide, not absolute

For additional information on CAI’s conferences, please go to https://www.capital.org/eweb/DynamicPage.aspx?site=cai&webcode=cai-training-conferences.

 

Survey Reveals Women and Millennials in Leadership Yield Greater Company Success

Tuesday, August 19th, 2014

women leadersMost companies strive to create a work environment that embraces diversity. Differences in age, gender and other characteristics benefit companies in numerous ways, such as various perspectives for problem solving or creating new business opportunities.

New research from DDI and The Conference Board highlights a critical difference between the top and bottom corporate financial performers—companies with more women in leadership roles perform better. Another finding from the survey indicates that millennials in leadership roles can also impact business success positively.

The Global Leadership Forecast (GLF) 2014/2015, Ready-Now Leaders: Meeting Tomorrow’s  Business Challenges is the seventh edition of the annual report that DDI has put together since beginning this research in 1999. This year’s report includes responses from 13,124 global leaders and 1,528 human resources executives within 2,031 organizations. Survey results represent 48 countries and 32 major industries.

Here are some insights the survey revealed:

  • Men and woman are equally competent workers. However, men tend to portray themselves as more effective leaders overall than woman do.
  • In comparison to men, women are not as likely to rate themselves as highly-effective leaders.
  • Women are also less likely than men to have completed international assignments, led across geographies or countries or teams spread out geographically.
  • Of the participating organizations, those in the top 20 percent of financial performance have 37 percent of their leaders as women and 12 percent of their leaders are high-potential women.
  • Organizations in the bottom 20 percent count only 19 percent of their leaders as women, and 8 percent of their leaders as high-potential women.
  • An organization’s rate of growth is directly linked to the number of millennials in leadership roles.
  • Companies that were more financially successful were also more likely to have a higher percentage of millennial leaders.

“To improve business outcomes, bolster current development programs so that all leaders, including women and millennials, can improve their skills,” said Evan Sinar, Ph.D., DDI Chief Scientist, Center for Analytics and Behavioral Research (CABER) Director and study co-author. “Development opportunities build confidence. Provide opportunities for stretch assignments, ensure formal practices are in place to facilitate those opportunities and fully-commit your support to mentoring programs to develop and prepare new leaders.”

Receive full access to the report on DDI’s website here.

 

 

 

4 Ways to Keep Company Productivity High in the Summer Months

Tuesday, July 29th, 2014

work summerSummer can be full of distractions. The hot weather of the season encourages employees to dedicate fewer hours to the office or take vacations with their friends or families. Your clients may also be making vacation plans, so their requests may decrease temporarily. For these reasons, productivity during the summer months can slow down. However, with proper planning and participation from managers and direct reports, you can keep business moving as usual. Try the four ideas below to keep your company productive:

Devise a plan

Because it’s vacation season, fewer people will be in the office. Missing a few employees doesn’t mean you can’t continue company projects in an efficient and effective way. Schedule a few minutes with your employees before they take time off to discuss the tasks and assignments that need to be completed while they are away. Teamwork will be instrumental in meeting or exceeding deadlines.

Practice flexibility where you can

Many employees prefer to spend their summer evenings and free time with their friends and loved ones. Being more flexible in the summer months to allow your employees to get home and spend quality time with people outside of work will be appreciated. Several companies are partaking in the trend of letting staff members leave early on Fridays. Similar to the effects of a nice summer break, leaving early on Fridays will have your employees returning invigorated and ready to perform on Monday morning. Another option to encourage flexibility is to have your employees come in earlier or work through their lunch breaks to leave the office sooner.

Work ahead of schedule

The demands of your top clients might slow down as people begin to make plans for summer trips. Instead of waiting for a request, work on a project that has been on the bottom of your to-do list for the past several months. Be productive and efficient with the tasks you decide to tackle during the summer months. If you know of a project that you’ll be working on in the future, go ahead and start working on it. The more you get done during the slower months, the less stressed or pressed for time you’ll be in the busier months.

Have some summer fun

Maintaining stellar productivity over the summer is a goal of most companies. Although everyone is in agreement that keeping up productivity is important, summer is all about having fun. Don’t lose opportunities to engage your employees and show them that they are valued. Plan a fun activity, like a pizza party or a trip to a local baseball game, to show them that you appreciate their contributions throughout the year.

For additional tips for keeping business productivity high, please call a member of CAI’s Advice and Resolution team at 919-878-9222 or 336-668-7746.

 

 

Compensation Rises as Top Contributor to Job Satisfaction for Employees

Tuesday, July 15th, 2014

money blogAccording to a recent research report by The Society for Human Resource Management (SHRM), employees in the US are now connecting their compensation to their happiness at work. The report, Job Satisfaction and Engagement: The Road to Economic Recovery, revealed that when asked what was very important to them, 60 percent of the participants said compensation/pay, which made it the biggest contributor to job satisfaction. SHRM conducted the survey in 2013 and polled 600 randomly selected employees at small to large companies.

Compensation/pay held the top spot in the employee satisfaction survey before the recession hit, specifically between 2006 and 2007. During the years of the recession, compensation/pay held lower rankings. SHRM conducts this survey annually.

“Incomes have grown slowly since the recession, and that undoubtedly is having an impact on workers’ priorities and one explanation for the leap to the forefront by compensation,” said Evren Esen, director of SHRM’s Survey Research Center.

Other noteworthy data the survey showed include that four generations of workers ranked compensation/pay as either the top or second-choice aspect of job satisfaction and employees at all job levels, with the exception of executives, ranked compensation/pay as one of the top three contributors to overall job satisfaction.

For more information on how compensation affects job satisfaction, retention and recruiting, please join us for the 2014 Compensation and Benefits Conference at the McKimmon Center on August 14 and August 15. Specific presentations that will focus on employee compensation and salary data include:

The Future of Attraction, Retention and Motivation: How Compensation Fits into the Process Anne Ruddy – WorldatWork

Leverage Marketplace Trends When Making Decisions about Compensation and Benefits Strategies Molly Hegeman – CAI

Taking the Mystery Out of Salary Survey Data Sherry Hubbard-Bednasz – CAI

Proactive Uses of Compensation Analysis – An Employer’s Perspective Kaleigh Ferraro – CAI & Member Company Panel

Additional topics presenters will cover include: why performance management fails, driving engagement and reinforcing culture, building high-performing teams, controlling healthcare costs, wage and hour regulations, retirement planning, and more! Visit www.capital.org/compconf for detailed information about speakers and session topics. Register today!

Photo Source: Miran Rijavec Stan Dalone

 

 

Honesty is the Key for Attracting and Retaining Employees

Tuesday, July 1st, 2014

employer  brandRandstad US recently released the results of its 2014 Employer Branding Study, which reveals the personality traits job candidates look for when selecting an employer. The study also identifies job aspects that are most attractive to workers.

The majority of workers (78 percent) chose honesty as the first trait they look for in an employer according to the study. A significant portion of the participants also want to work for a company that is reliable, secure and well-respected. Traits job hunters rated as least critical include whether a company is daring or robust.

“…It’s extremely valuable for employers to know honesty holds such high importance,” said Jim Link, Chief HR Officer of Randstad North America. “Leading organizations understand a strong employer brand creates an important advantage for attracting today’s best talent, so identification of the top attributes wanted in a company allows leaders to refine their brand strategy.”

Creating a strong employer brand and building up a solid reputation with your current employees and customers will help you retain and recruit some of the best candidates for your open positions. Below are some blog posts that will help you get started on shaping your company’s image:

Having a strong employer brand can make a difference on whether you can secure a great candidate for a vacancy or how a news outlet portrays you to the public. Read this blog to find four tips for enhancing your employer brand: http://blog.capital.org/strengthen-your-employer-brand-with-4-tips/ .

Social media allows organizations to increase their brand awareness and interact on multiple levels with their customers. Although your company will experience several benefits when taking part in different networking sites, there are risks to be aware of as well. Protect your company’s reputation and review tips for creating a social media policy here: http://blog.capital.org/create-a-social-media-policy-to-protect-your-business-and-employer-brand/.

Building trust in an organization is no easy feat. Time, dedication and care are essential for keeping trust nurtured and sustained. Trust improves almost every business facet, including retention, morale, communication, customer service and productivity. Please take a look at these four ways to build and sustain trust at your organization: http://blog.capital.org/four-ways-to-build-and-sustain-trust-in-your-workplace/.

For additional ways to bolster your company’s reputation with future job candidates, please call CAI’s Advice and Resolution Team at 919-878-9222 or 336-668-7746.

 

6 Reasons Taking Your Vacation Will Improve Your Work Performance

Tuesday, June 17th, 2014

7956465780_5fb7b6d55a_zSummer is on its way. If you haven’t taken a vacation already and aren’t planning to do so, I would ask you to consider taking your time off.

You will enjoy a number of benefits when you use your vacation days. Some people prefer to work all of the time and some people have to work all of the time, but in either case, taking some time off, even just a few days, will improve your work performance.

Productivity generally lowers during the summer months. Taking a vacation will help you avoid being sluggish around the workplace. Check out the six benefits of using your vacation time below:

  • Spending time outside of work will help you focus on the important things in your life that do not revolve around your work, such as family and friends.
  • Your mind can relax. Taking time off will allow your mind to take a break, get some rest, and work at its optimal level when you return to the workplace.
  • A good vacation is greatly beneficial for those in roles that require creative and innovative thinking. Not focusing on your busy work week will enable you to get inspired and recharge your creative energy.
  • You can use your free time to complete tasks, get errands done or dedicate to yourself. Carving out time for the things you enjoy will improve your satisfaction in other areas of your life, like work.
  • Time away from work can help you figure out an issue that is currently stumping you in the workplace. Walking away from the problem and returning after a relaxing vacation can have you looking at the same issue from a different perspective.
  • Keep yourself healthy by taking a breather from your position. Stress and pressure are released when you’re not focused on your responsibilities at work, which allows you to sleep better, concentrate longer and be happier.

Make sure to use your vacation time this summer. For any questions regarding vacation time and its many benefits, please call CAI’s Advice and Resolution team at 919-878-9222 or 336-668-7746.

Photo Source: Kevin Dooley

 

 

 

Total Rewards and Business Strategy Are Not Aligned at Most Companies

Tuesday, June 10th, 2014

Expensive giftThe Total Rewards Survey developed by Mercer analyzes the practices companies use to align compensation, benefits, training and career development with today’s business priorities. Findings from the survey show that while more than half (56 percent) of organizations made a significant change to their total rewards strategy in the past three years, less than one-third (32 percent) said their total rewards and business strategies fully align.

Eighty-nine percent of organizations that participated in the survey ranked attracting and retaining the “right” talent as the most noteworthy challenge of their overall total rewards strategy. Additional challenges that were noted as very important included: collecting relevant market compensation data, keeping rewards affordable, communicating the value of rewards to employees, and ensuring pay for performance and performance differentiation.

From experiences with many clients, Mercer has highlighted several actions employers can put in place to address the holes between total rewards strategies and their business strategies:

“As companies focus on the cost of their talent, attracting and retaining the ‘right’ employees and differentiating rewards for top performers are challenges that can be made easier by incorporating the use of workforce analytics,” said Mary Ann Sardone, Partner in Mercer’s Talent practice and Regional Leader of the firm’s Rewards segment.

“Additionally, incorporating offerings such as career development and work/life balance initiatives into total rewards strategies caters to the needs of [employees] in the workplace.”

Leading the list of ways to enrich the employee experience in other ways than pay is giving employees the ability to make a difference in their job functions. Other contenders on the list were career progression, healthy living/wellness and recognition.

For additional information on recent trends and developments in total rewards strategy, including an in-depth look at what North Carolina employers are doing, please join us for the 2014 Compensation and Benefits Conference on August 14 and August 15 at Raleigh’s McKimmon Center.

This year’s keynote presenters and presentations include:

The Future of Attraction, Retention and Motivation: How Compensation Fits into the Process Anne Ruddy – WorldatWork

Green Goldfish – 15 Ways to Drive Engagement & Reinforce Culture Stan Phelps – 9 INCH marketing

What Would Healthcare Look Like If Getting It at the Lowest Cost Was Your Key Priority? Skip Woody – Hill, Chesson & Woody Employee Benefit Services

Leverage Marketplace Trends When Making Decisions about Compensation and Benefits Strategies Molly Hegeman – CAI

Additional topics that speakers will cover at the conference include: how compensation affects retention, the future of healthcare cost, driving employee engagement, analysis of the latest market data in total rewards, building high-performing teams, and understanding survey data.

For more information on conference speakers and topics, please visit www.capital.org/compconf.

A Strong Partnership Between HR Leaders and CFOs Improves Business Performance

Thursday, June 5th, 2014

6861256042_0b37739bcd_zCompanies that have a strong relationship between their CFOs and chief human resources officers (CHROs) are linked to superior business performance. Professional services organization EY found these results from its global survey, Partnering for performance, which shared information from 550 CFOs and CHROs.

The findings of the survey show that companies that have become more collaborative over the past three years report financial growth and stronger improvement in a number of HR metrics, such as employee engagement and productivity.

From EY’s research, four key factors were identified as reasons that have driven HR leaders and CFOs closer over those three years:

  • Finding good talent is hard and labor costs are increasing.
  • The importance of HR is rising in corporate hierarchy.
  • Companies are constantly developing new products and services to adapt to the rapidly changing business environment.
  • In an effort to achieve greater success and efficiency, more organizations are transforming their business models.

“…Typically, CFOs have tended to view human capital primarily as a cost, while CHROs have viewed it primarily as an asset that requires investment,” Dina Pyron, Global Human Capital Leader at EY says. “To really maximize employee engagement and improve workforce productivity…the CFO and CHRO need to find ways to increase collaboration effectively and efficiently.”

Having highly-efficient teams that can interact with each other to achieve business goals and eliminate inefficiency is a desire of all employers. Here are some blog posts that offer tips in creating better collaboration and teamwork among the different groups at your organization:

 

Key Learnings from 5 Different Areas of State and Federal Employment Law

Thursday, May 22nd, 2014

PPT Slide ELLU 2014More than 430 HR professionals and company executives attended CAI’s 2014 Employment and Labor Law Update. Participants traveled to the McKimmon Center in Raleigh for the two-day event on May 14 and May 15 to receive the latest updates in state and federal law.

Knowledgeable attorneys from Ogletree Deakins, as well as an expert from CAI, shared important changes in the law at the conference. Topics the presentations covered included workplace investigations, FMLA, wage and hour issues, the ADA, and more.

Below is some of the information, which covers five different areas of employment law, discussed at the conference:

Expect more aggressive investigative tactics from the EEOC:

  • The EEOC is making extensive requests for information not germane to the charge at hand
  • Increased threats and uses of subpoenas
  • Increased demand for on-site investigations
  • During on-site investigations, EEOC increasing demands to review signage, personnel files and make general employee inquiries unrelated to charge
  • Increased demands for on-site tours and witness interviews
  • Aggressive behavior in settlement negotiations

Enforcement Trends in Immigration Law:

  • There’s nothing random about audits from ICE
    • Most audits are lead-driven and are discovered by a tip-line complaint, local law enforcement data sharing, and federal agency data sharing
  • Avoid these common I-9 mishaps:
    • Using a wrong or outdated I-9 form
    • Not completing Section 1 or 2 in the specified time frame
    • A new hire did not sign Section 1
    • Someone else completes Section 1 but they do not have a Preparer or Translator Certification
    • Hire date is missing
    • Employer’s address is incomplete

Updates in the ADA:

  • Leave as a reasonable accommodation
    • Granting a leave of absence may be considered a reasonable and required accommodation under the ADA if no other sufficient reasonable accommodation is available
    • Maximum leave policies don’t satisfy the ADA. However, that doesn’t mean you can’t have one. You will just have to consider the ADA before discharging an employee for exceeding the maximum
    • An accommodation is “reasonable” if it “seems reasonable on its face, i.e., ordinarily in the run of cases”—in other words—if it appears feasible or plausible

Updates in NC Legislation—Bills of Interest:

  • House Bill 846: Job and Education Privacy Act- would prohibit employers and colleges from requiring individuals to disclose access information to personal social media and email accounts
    • Passed the house on May 16, 2013 and is in the senate; eligible for consideration in the 2014 session
  • House Bill 872: Protect NC Right-To-Work – declares it unfair trade practices for any contract to require a contractor or sub-contractor to use unionized labor. Contracts involving federal funds would be exempt
    • Passed in the House on May 2, 2013 and is in the senate; eligible for consideration in 2014 session

The NLRB is cracking down and scrutinizing company rules in several business areas, including social media:

  • Avoid the following in your company social media policy to stay on good terms with the NLRB
    • Prohibiting discussion of wages, benefits, and other terms and conditions of employment
    • Prohibiting anyone from sharing confidential information without clarifying the definition
    • Prohibiting “no-disparagement” or words of “negative impact”
    • Vague restrictions about inappropriate conversations
    • Prohibiting the use of trademarks or company logos

For additional information on CAI’s conferences, please go to https://www.capital.org/eweb/DynamicPage.aspx?site=cai&webcode=cai-training-conferences.