recruiting Archives

Offering Child Care Benefits to Employees

by LizStevens | Jan 22, 2020 | Blog

Offering child care benefits to employees. Employers can address work-life balance and aid recruitment and retention efforts with child care benefits for employees.

Both parents are employed in more than 60 percent of American families, yet only 6 percent of companies offer child care benefits, according to research by Clutch.

Another study, by New America’s Better Life Lab and Care.com, found that the average annual cost of full-time center-based child care ($9,589) is more expensive than in-state college tuition ($9,410). (And, both costs are rising smartly above the rate of inflation.)

Employers are expanding family-friendly employee benefits to improve work-life balance as well as bolster retention and recruitment efforts and employer-paid child care benefits are a trend to watch in 2020.

The Rising Cost of Child Care

Research by Freddie Mac found the price of child care, adjusted for inflation, has increased by more than 45 percent over the last 25 years and it impacts a family’s ability to afford a home.

“One of the major challenges, when it comes to affording a home, is the high cost of child care. Our analysis finds that those families paying for child care generally are left with less money for housing. Specifically, we find they, on average, pay about half of the median mortgage payment and nearly eighty percent of the median rent,” said Sam Khater, Freddie Mac’s Chief Economist.

The average family spent more than 10 percent of their annual income on child care in 2011. In lower-income families, the cost burden of child care is much higher. Families making less than $1,500 a month with children under the age of 15 spent 40 percent of their income on child care, on average.

Offering Child Care Benefits to Employees

New parent benefits have seen significant growth over the past five years, but child care benefits have failed to keep pace. According to research by the Society for Human Resource Management (SHRM):

25 percent of employers let employees bring children to work in an emergency
11 percent of employers have a child care referral service
4 percent of employers offer subsidized or nonsubsidized child care centers or programs

As an emerging trend, there isn’t a wealth of data on the ROI of child care benefits, but initial research published in the Journal of Management found companies that introduced child care benefits had lower collective turnover rates for female employees in subsequent years.

In the next few years, we expect to see the number of companies offering child care benefits rise as employers battle for top talent with better benefits.

3 Employment Settlements for ADA Violations Explained

by LizStevens | May 8, 2019 | Blog

3 employment settlements for ADA violations explained. Learn about recent disability discrimination lawsuits, their outcomes, and how organizations can better accommodate employees with disabilities.

Three large employers were recently hit with significant legal settlements due to discriminatory hiring practices.

The Americans with Disabilities Act prohibits employers from discriminating based on disability and requires that employees with disabilities be provided a reasonable accommodation, provided it does not put undue hardship on the employer.

It’s critical for employers, human resources and management to understand the legal ramifications of discrimination in the workplace.

Three employment settlements from this year give a closer look at how the ADA protects workers with disabilities and how organizations can better accommodate them.

Employment Settlements for Discriminatory Hiring Practices

Safeway, Inc. agreed to pay $75,000 to Joel Silbert to settle a disability discrimination lawsuit filed by the Equal Employment Opportunity Commission (EEOC). Silbert is deaf and when he requested an interpreter for his interview the in-store hiring recruiter did not get back to him and instead filled vacant positions with hearing individuals. Safeway was found to be in violation of the ADA for failing to provide reasonable accommodations.

“I was excited when I was selected for an interview at Safeway,” said Silbert. “But when I requested an interpreter during my interview and placed multiple calls to the store over the following week, I was placed on hold or told no one was available. I felt so disregarded. I’m glad Safeway is taking steps to make their workplace more inclusive. This will make a difference for so many deaf applicants.”

Party City agreed to pay $155,000 for failing to hire a qualified employee with a disability in a lawsuit brought by the EEOC. The applicant, who was on the autism spectrum and suffered from severe anxiety, brought a job coach with her to a job interview and when the hiring manager learned of this they tried to cut the interview short and spoke to them in a patronizing tone.

Kevin Berry, director of the EEOC’s New York District Office, said, “Allowing this applicant to work with a job coach in her early weeks of employment would not have caused an undue burden on Party City. The ADA requires employers to make this type of reasonable accommodation so as to enable qualified people with disabilities to join the workforce, which is a win-win for everyone.”

Employment Settlement for Application Assessment

Blue Cross/Blue Shield (BCBS) of Texas agreed to pay $75,000 to Sheryl Meador to settle a disability discrimination lawsuit brought by the EEOC. A portion of their application process included an assessment with an audio portion that did not include captions or other visual accommodations for the hearing-impaired. Meador, who is deaf, contacted BCBS to request a reasonable accommodation, but they failed to communicate with her after her multiple attempts to follow up on the matter. In addition to the payout, BCBS will conduct annual training on the ADA and will inform applicants and employees with disabilities of their rights, including the right to reasonable accommodations.

EEOC Senior Trial Attorney Joel Clark said, “The non-monetary relief contained in the consent decree should help eliminate obstacles for other hearing-impaired applicants. We trust that the new policies and practices for hearing-impaired applicants will effect positive change for this health care services company. The EEOC wants to ensure that what Ms. Meador experienced does not happen again.”

More on Workplace Discrimination:

What Can You Do to Stop Age Discrimination in the Workplace?

Women in Tech: Financial Wellness and Workplace Equality

Women and Financial Stress in the Workplace: Why It’s So Important

What’s Wrong with Wellness Program Incentives?

Hiring Employees with Criminal Backgrounds: What You Need to Know

by LizStevens | Feb 6, 2019 | Blog

Hiring employees with criminal backgrounds: what you need to know. More than 650,000 people are released from prison each year and companies are committing to changing recruiting practices to include opportunities for those with criminal backgrounds.

The Society for Human Resource Management (SHRM) recently launched Getting Talent Back to Work, a national pledge for business leaders to commit to giving opportunities to qualified people with criminal backgrounds. It follows January’s passing of the First Step Act, which improves rehabilitation and re-entry opportunities for the more than 650,000 people released from prison each year.

“This is a group we, as business leaders, cannot afford to overlook as 1 in 3 adults in the United States currently has a criminal background,” said Johnny C. Taylor Jr., CEO of SHRM. “Not only is it the right thing to do—to give a deserving person a second chance—but it is becoming imperative as businesses continue to experience recruiting difficulty at an alarming rate.”

More than 80 percent of hiring managers indicated workers with a criminal background are a high-quality hire equal to or even more effective than those without a criminal history, according to research by SHRM and the Charles Koch Institute. More than 70 percent of those same hiring managers found extreme value hiring those with a criminal background because of diminished costs associated with hiring from within that population, as well as mitigating risk to effective operations.

Hiring managers are able to see beyond the organizational benefits of hiring people with a criminal background and point out larger societal benefits, like the opportunity to improve the community around them and the intrinsic value of giving people second chances at employment.

Associations and companies representing more than 60 percent of the U.S. workforce have already joined SHRM in taking the Getting Talent Back to Work pledge. Competition for talent is tight and employers can’t afford to overlook a third of the population because they have criminal backgrounds. A strong recruiting process will ensure only the most qualified candidates from a truly diverse pool, regardless of background, are considered for open positions.

“Our nation just took a major first step toward helping people who want an opportunity to transform their lives—now we’re pledging to take the next step,” said Mark Holden, senior vice president and general counsel of Koch Industries. “Koch is incredibly proud to offer second chances to qualified people with a criminal record and now, thanks to SHRM, more businesses will have the tools needed to hire these individuals. By taking this next step, we can create stronger families, a more robust workforce, and safer communities for all.”

Is Rehiring a Former Employee a Good Idea?

by LizStevens | Jan 23, 2019 | Blog

Is Rehiring a Former Employee a Good Idea? They’re familiar with organizational operations, company culture and need less training to get up to speed, but only half of employees would consider returning to a former employer.

Most senior managers are open to rehiring boomerang employees—staff members who previously left the company on good terms, according to recent research from Accountemps.

“Companies need to leave no stone unturned in their search for talent,” said Michael Steinitz, executive director of Accountempts. “Boomerang employees are an attractive option because the firm is already familiar with how they’ll perform and fit in with the organizational culture. Returning workers also require less training to get up to speed and may have acquired valuable new skills while they were gone.”

Former employees, however, were not quite as eager for a reunion—just over half of them are likely to apply for a position at a previous company.

More than 20 percent of employees would not return to a former employer because of dissatisfaction with management. Issues with management arise when there is frequent miscommunication, limited flexibility with scheduling, or when workloads are unbalanced. Dissatisfaction with management lessens job satisfaction and can lead to employee burnout.

A poor fit with the organizational culture was the reason over 15 percent of employees would not apply for a position at a previous company. Most employees agree that company culture is important. If companies can get employees invested in the work environment and company mission they’ll be more likely to return or recommend quality candidates.

Nearly 15 percent of employees wouldn’t return to a prior employer because of unfulfilling job duties. It’s impossible to make every position feel interesting and important, but if employers can connect the work to the larger company mission, provide great benefits and maintain a positive company culture, unfulfilling work is less likely to affect job satisfaction.

Just over 10 percent of employees refuse to return to a former employer because of bridges burned by the company. There’s no way to unburn a bridge, but employers can expect that management treat everyone with respect, even when an employee has made the decision to part ways.

“Rehiring a former staff member may seem like a simple process, but it’s essential to understand why the person originally left and whether the issue has been resolved,” advised Steinitz. “The employee will not stay long if past problems keep resurfacing.”

More than 60 percent of HR professionals called the sourcing of talent “very or extremely challenging” in a recent XpertHR survey. Rehiring former employees doesn’t exactly widen the candidate pool, but it does add in a few individuals who have already demonstrated their value. It might be worthwhile to start leaving the door open when talented, reliable employees move on.

Do Employees Understand Their Benefits Package?

by Emily Pfund | Jan 18, 2017 | Blog

In this week’s Best Money Moves roundup, we take a look at news stories and new research studies that may impact employee benefits and HR issues. We hope you find this news roundup helpful, and we’d love your feedback.

Do employees understand their benefits package? A new study from The Guardian Life Insurance Company of America found that less than half of workers have a good understanding of how their employee benefits work and how to best use them.

As a result, 79 percent of working Americans surveyed said they feel serious concerns related to their finances. This in turn makes them more distracted and less productive at work because their minds are on their own financial stress rather than the task at hand.

So what can employers do to help their employees reduce financial stress and build financial confidence? Read on for four ways businesses can help improve employees’ financial outcomes and lower their level of financial stress.

Tech-savvy Millennials can bring a fresh perspective to a company, but their tendency to job-hop can also bring HR headaches. A recent study found that two-thirds of Millennials plan to leave their current gigs in the next four years. Try these three strategies to make your company a place where young workers will want to stay.

Got an open executive position at your company? You don’t want to hire just anyone to fill important leadership roles. This is why many companies look beyond submitted resumes and start recruiting potential candidates who already have another position. Here’s how you can poach (and keep!) top talent in your industry.

While the improving housing market is great for homeowners, millions of potential buyers are finding themselves priced out of the market. Help your employees combat housing-related financial stress.

Are your company’s employees happy with their benefits plans? They may not be, according to a new study by the Transamerica Center for Health Studies. Learn why the study found a communication disconnect between employers and their workers regarding benefits satisfaction.

Everyone loves to be told they’re doing a good job, and getting kudos from a coworker may be even more impactful than hearing it from a manager. Here’s how coworker recognition programs can help improve your bottom line.

Employee wellness programs can be a big investment with great payoffs over time, but only if the program is a good fit for your company culture and employees. Make sure you don’t forget these four often-overlooked steps when building your wellness program.

Keeping employees engaged in the workplace is essential for retention. If they don’t feel connected to their company and coworkers, they’ll be more likely to jump ship if another offer comes along. These are the factors most likely to boost employee engagement this year.

We use self-service portals to do everything from online banking to buying concert tickets. But did you know these online portals can also be time- and money-saving tools for your employee benefits programs? Read up on seven ways these tools can simplify your HR processes.

Which perks are most appealing to today’s employees? Top employers are branching out to entice talent with everything from corporate outings to house-cleaning services to “Whiskey Fridays.” Steal these ideas from Facebook, Google and Netflix.

Have something to add? Email info@bestmoneymoves.com.

It’s hard to stay on top of everything in the news. That’s why each week our Best Money Moves newsroom will bring you the most important news in financial wellness, employee benefits and financial stress. We hope you like the information and, if you do, please spread the word. For midweek developments, follow us on Twitter and on Facebook.