3 Hottest Topics Within Employee Compensation


On a recent episode of HR Insider, we had the chance to sit down with Kimer Moore, owner of Capriccio HR. Capriccio is a human resources consulting firm that specializes in strategic HR and Total Rewards services and solutions for small and medium-sized organizations. Having spent much of her 19-year career in compensation, Kimer shared with us some of the hottest topics in compensation that she is seeing today.

 

Topic #1: Keeping Up With Legal Changes

There’s a lot going on in our country related to employee compensation, and helping companies stay on top of everything is more important than ever. One trending topic, of course, is the shifting legal landscape of benefits as dictated by the Affordable Care Act. Laws are changing, and companies must ensure they remain compliant.

In addition to the ACA, Kimer explains, “FLSA, which is your Fair Labor Standards Act, also has some legal changes that we’re trying to kind of keep on top of, making sure that people are compliant. But everything is bouncing back and forth. Do we do it? Do we not do it? So a big trend in compensation and benefits right now is just keeping an eye on what’s going on in the legal universe and making sure that the company is compliant with that.”

Topic #2: Equal Pay

The topic of equal treatment in the workplace has garnered more attention in the mainstream than ever before; this means that companies must ensure they aren’t in violation of any laws. Kimer says, “There is a lot going on around equal pay and equal rights. That’s another thing we’re trying to keep an eye on, making sure companies are paying people for the work that they do and not based on any other factor like gender. Some states have even started to implement rules stating that you cannot ask a candidate what their prior salary was at a company. You can only ask what they’re looking for.” Ultimately, companies need to take a step back and make sure they are paying every employee consistently with the market.


Topic #3: Total Compensation Packages

The last hot topic Kimer shared with us is the importance of the total compensation packages, beyond base salary. While potential and current employees alike often get caught up in the salary alone, it is important for employers to communicate the total value of the entire package. Kimer adds, “I think somewhere a company could get a little bit more bang for its buck, if you will, is offering good benefits packages to the employees in order to attract and retain people. When you give employees good benefits at your company, those are things that make it harder to leave because they’ve become used to the comfort of those benefits, and other companies may not necessarily have it as good. So benefits are another option for companies to attract talent and add value.”

While compensation is certainly not a new topic, it is an ever-evolving one. There are always new laws and policies being put in place and it is important for companies to be aware of these.

5 Myths About Millennials in the Workplace

On a recent episode of HR Insider, we had the chance to talk with Mary Larocca, Vice President of Global Business Development at Cornerstone Relocation Group. She debunked five common myths about millennials and shared insight into how best to approach this generation from an HR and Relocation perspective.

Myth #1: All Millennials Are Alike

A big mistake companies make is overlooking the individual needs of millennial employees because they assume certain likes and dislikes about their generation. “Everyone is unique and everybody has different things that contribute to who they are,” says Mary. “So try to find what’s individual about the person and what’s going to make things important for them. I think that’s a big thing that can be done even from the recruiting stage over to the HR stage.”

A great way to avoid the pitfall of generalizing the wants of a generation is to acknowledge people’s different needs by offering choices to your employees. It is unrealistic to individualize each policy, but your company can offer a set of options that employees can choose from. This is especially important when it comes to relocation. Mary suggests, “Give someone three or four choices that your company is okay with providing, then whoever is making the choice will feel like they’re invested in [what they have chosen] … Remember that somebody might want to just pack themselves up and move and one might want to have an option to use that money towards pet sitting or some other thing.” Millennials are not a “one size fits all” generation. Acknowledge the individual needs of your employees by offering options.

 

Myth #2: Millennials Have Social Interaction Issues

A big stereotype about millennials is that they are more comfortable with sitting behind a computer and chatting online than they are with talking on the phone or face-to-face. While it is true that the former is a more common way for millennials to communicate, it doesn’t mean they are anti-social. The fact that this generation communicates and shares their interests online can be a real asset to HR professionals because it can give them insight into what their employees like and need.

Mary recommends using the internet to HR’s advantage with a little online research to help form connections between employees. Identify some of your employees’ interests by searching online and find a way to bridge those interests with team building activities. She says, “When you’re having a relocation program, maybe think about things like shared housing or doing social outings that have a purpose. We recently, here in Arizona, went out to a food bank and handled giving out food to people who needed it in the Phoenix community. Things like that help people feel connected and make our world feel a little smaller.” Though it may seem like millennials prefer to stay behind their computer screen, they still need connection and purpose. Motivate them with meaningful causes and opportunities to spend time with their team.

Myth #3: Millennials Have No Loyalty

The millennial generation has gained a reputation of having no loyalty because it is much more common for them to work at multiple companies throughout their career compared to previous generations. While it is true that changing employers is much more common for millennials, this doesn’t necessarily mean that there is a lack of loyalty. Mary points out that millennials have loyalty to themselves. “Being loyal to yourself, to the process, and making yourself happy is much different than loyalty to a big company or a manager,” she explains. This commonality among millennials is beneficial for companies to know. Mary says, “From an HR perspective, think about what’s important to the person that you are managing or the person that you’re bringing on.” By listening to what your employee wants, you will know how to keep them at your company.

Therefore, it is more about companies adapting to a generation that has different desires and wants to be loyal to themselves. In knowing this, companies can retain millennials by allowing them opportunities to do something that they love. Mary points out how critical it is for the HR community to ask each person on their team or each person that they are moving what’s important to them. She says, “Sometimes [managers] just don’t want to ask the question and I think they’re missing out on an opportunity to really make someone feel loyal and connected, and [millenials] do that by being passionate about things.”

 

Myth 4: Millennials Can’t Take Ownership

A common trait in millennials is that they are about a shared economy. Mary points out that “[Millennials] want to have things, but only when it makes sense. [They] don’t want to spend hundreds of dollars on a purse, for example, when [they] can rent one and just use it for the season or an afternoon.” There is a shift in the mindset of ownership in which millennials want to use objects when needed and let others enjoy their use when they are not needed, rather than just sitting unused.

To expand upon this myth, Mary highlights how experiences are more valuable to millennials than accumulating material goods. From an HR perspective, she suggests, “Think about the experience you can give an employee… Is there an experience that you can give that employee that might make them be able to stay with the company longer? Is there an assignment overseas that they could go for three months because they don’t have all the things that can tie them back home in the U.S.?” Use the new perspective on ownership to help motivate your millennial employees by providing them with the option to collect new experiences through your company.

Myth #5: Millenials Can’t Make Decisions

The myth that millennials are indecisive has evolved from the ability to research and comparison shop. Millennials make decisions, but they tend to research ahead of time online before making those decisions. The common practice of online research is an important factor for businesses to consider when recruiting millennials. Mary suggests, “Research yourself and see what impression you are giving…  If you’re trying to portray something, make sure that’s really what’s coming across from a technology standpoint because that’s where everyone’s going to go first to look.” Having the insight that millennials do make decisions, but they shop around first, will help ensure that your online presence is properly representing your business and attracting your desired candidates.

When it comes to stereotypes about generations, it’s helpful to have an idea of what to expect and how to handle interactions; yet, in the end, we are talking about individual human beings, and no one person is the same. Mary sums it up perfectly when she says, “You really can find real connections and real loyalty when you find out what’s important to a person and what makes them an individual.”

 

3 HR Trends to Watch


Recently, we sat down with Dr. Stevie Dawn, the owner and founder of Orange Compass, who works with human resources departments across the country implementing emotional intelligence-based training. She shed some light on three of the most talked-about topics in HR today: Talent acquisition, millennials in the workplace, and succession training.

 

Talent Acquisition

Dr. Dawn:  “At this point, companies can’t afford to make [hiring] mistakes anymore. They have to hire the right people at the right time and that means having people who are specialists in that talent field, so I think [we’re] seeing a lot of HR professionals start to divide into regular, strategic, tactical HR, and talent acquisition. It’s a different mode. You have to be able to read people differently and look at different assessment tools and things like that in the talent field. One of the biggest hot-button issues right now is just finding good talent.”

Dr. Dawn makes a great point: hiring people is much more difficult today than it was 20 years ago. You are looking for talented people that will be a good fit for your organization, and finding the right person means looking at all the individual pieces and putting them together.

 

Millennials in the Workplace

Dr. Dawn:There are millennials coming through the ranks that have the skill set, as far as they’ve got the knowledge. They’ve gone to college. We’re making college something more and more people can do, which is awesome. So more and more people are getting a college education and they have those skill sets, but they’re not getting any work experience along the way, which then falls to HR because once they’re hired, who has to train them? The HR department is now having to do more on the job training than they’ve ever had to do before, especially in things like soft skills and how to be a good employee. If they’ve never had a job, they’ve never learned that skill.”

Millennials in the workplace is certainly a hot topic today, and they are entering the workforce in droves. Companies are being forced to adjust to these new employees who are more different from their predecessors than any other generation before them. Empowering millennials with soft skills training is an excellent way to bridge the gap.


 

Succession Training

Dr. Dawn:What we’re seeing is a lot of the top level executives at companies are leaving and moving on to another stage of their life and therefore, there are openings at the top but we don’t have a lot of people trained within to handle those kinds of positions. We’ve trained them to do very specific jobs, but we have not trained them to have strategic vision. We have not trained them in critical thinking. And so, can they really manage a huge organization if they’ve only ever managed their one department of 10 people? As organizations, we’ve got to start thinking about succession planning.”

Unprepared successors are an issue businesses have begun to run into as executives retire. To bypass this problem, Dr. Dawn points out that companies need to train the upcoming generation to lead at a larger scale. Empowering employees with a strategic and big picture skill set will make for a much more effective transition to leadership down the line.

To hear Dr. Stevie Dawn’s entire interview and more bits of wisdom, you can listen here.

 

The Importance of Staff Culture

 

When discussing the best places to work, employee compensation and benefits and the reputability of the organization are often central themes. Recently,  a third consideration has been added to the mix: company culture. Creating a positive work environment has become vital to retaining top talent as more and more job seekers try to assess the culture of an office before accepting a position.

 

Gone are the days of coming into the office, drudging through the day, and going home to spend time with friends and family. Employees want to enjoy their job and the people they work with. Coworkers are now expected to be people that they may actually like, not a necessary evil to escape from at 5:00 pm each day. A negative or toxic work environment will not only drive away talent but inhibit productivity as well, and that is exactly why a positive staff culture is so important. An inability for management and employees to relate to one another can be detrimental to the organization as a whole and could lead to a decrease in creativity and ownership of projects.

 

It may go against the traditional school of thought, but incentives and appraisals are not always the best motivation for employees. It turns out, a sense of loyalty and ownership towards an organization in employees can drive better work. Additionally, these feelings can keep an employee in an organization even with offers from competing organizations. While money and benefits can be offered by anyone, a feeling of belonging is much harder to come by. That is why a strong staff culture is such an important element for a company. After all, people spend about a third of their life at work, so it stands to reason they prefer to work somewhere that they enjoy.

 

 

A somewhat forgotten benefit of company culture is the effect it has on your organization’s brand. In an era of social media and the internet, information spreads like wildfire and your customers will likely have an idea of the culture in which your employees work. If your staff culture is fun-loving and generous, your brand image will adopt those qualities. Ideally, your brand image and company culture should seamlessly intertwine. It would make no sense to try to present yourself as a fun, easy-going brand and then allow a stressful, toxic culture to grow in your offices.

 

As more and more companies shift their attention to cultivating a healthy company culture, it is only going to become more necessary for you to focus on in order for your organization to stay competitive and continue to attract top talent. If you aren’t keeping pace with your competition, you are going to fall behind. While every company is different and there’s not one right way to develop and preserve a staff culture, think about your organization’s strongest values and how you can remain consistent in those through everything you do. Doing so will lay the groundwork for a happier and more productive staff that is as devoted to the organization as you are.

How To Create And Honor Diversity In The Workplace

On a recent episode of HR Insider, we got the chance to sit down and talk with Dan, an HR representative for a Fortune 500 company who recently took on a new role within diversity inclusion. He shared with us his insight on improving inclusion in the workplace and supporting diverse communities and customers.

At the most basic level, inclusivity is about starting the discussion and forcing people to think about why they do things the way they do. Dan focused a lot on getting people to open their minds, which involves everyone at a company from the C-suite to the entry-level employees.

“It comes down to collaborating as a team, not only with the Diversity & Inclusion team, but the corporate side as well, and trying to get people from different areas and trying to work together to make an inclusive community. Additionally, to bring up awareness and the power of asking why. Asking, “Okay, why is it this way? Why is it that way?” It’s about opening that line of communication so everybody can feel included, everybody can be heard, and everybody can learn, educate, and grow from it.”

Another point that Dan really drove home was the importance of looking for talent in places companies don’t traditionally look. Whether that is looking at schools that you don’t typically recruit from or considering someone from a background that is different than your usual hires, he stressed that this diversity can add invaluable perspective to teams and improve the organization overall. He doesn’t necessarily ask people to change their hiring process, only to take a critical eye to it and see if there is room for increased diversity.

“People from different backgrounds and different lifestyles, they all have talents that they can showcase, and I think companies should see that, learn from it, grow from it, and even improve from it. Research even shows that corporations with a diverse network and diverse groups or teams do better financially in the long run. If everybody is coming from the same place, the same school, the same everything, then you’re not going to grow. You’re not going to develop. You’re just going to get the same old, same old, and that’s not how companies grow or even stay above water. They fail.”

At the end of our chat, Dan emphasized the value that HR departments can bring to individuals. While the human element of human resources may get lost sometimes, at the end of the day, their job is to be there for each and every employee.

“There’s more to HR than just people handling benefits or recruiting. It’s breaking down barriers and opening people’s mindset to find out what lies beneath.”

Diversity and inclusion are becoming increasingly important issues for companies to address, and it will always be better to be proactive instead of reactive. By constantly seeking ways to include different perspectives and people of all backgrounds, an organization can ensure it thrives for years to come.