HRPM Feb 2025 High Res wHyperlinks (2) by Cynthia Thompson

Are Your Candidates Giving You the WHOLE Truth?

Are your job applicants giving you accurate and complete identification? Would you stake your business on it? vID automatically captures identity data and matches it with each candidate’s legal identification. This tool immediately eliminates inaccurate applicant data that can cause background screening delays or return false negatives. Fast, reliable, and easy-to-use, with vID you can feel secure in your hiring decisions. Detect fraud earlier, increase your background screening workflow e ciency, and end up with better hires. That’s the Data Facts Di erence.

Perceptions of generational differences can have a negative impact at work.

A study of workplaces in the U.S. and U.K. revealed that employees who have managers who are more than 12 years their senior are about 1.5 times more likely to report low productivity, due to a lack of collaboration.*

If your organization is ﬁnding it di cult to enable members of di erent generations to work together productively, SHRM Talent 2025 (Talent 2025) is the place to learn new strategies to implement in your workplace and ensure organizational success. Join us at Talent 2025 in Nashville on March 24-26 and participate in over 80 sessions across ﬁve content tracks.

*Source: Encouraging Generation Z and Baby Boomers to Work Together, SHRM, March 5, 2024.

welcome to the main stage:

Navigating the Multi-Generational Workforce”

Kim Lear Writer, Researcher, and Founder of Inlay Insights

Bringing Human Resources & Management Expertise to

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Social Security Changes in 2025

Cost-of-Living Adjustment (COLA): Benefits have increased by 2 5%, translating to an average $50 monthly increase for retirees

Taxable Earnings Adjustments: The maximum earnings subject to payroll taxes rose from $168,600 to $176,100

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Supplemental Security Income (SSI): The maximum monthly benefits increased to $967 for individuals and $1,450 for couples.

Contact HR Professionals Magazine:

To submit a letter to the editor, suggest an idea for an article, notify us of a special event, promotion, announcement, new product or service, or obtain information on becoming a contributor, visit our website at www.hrprofessionalsmagazine.com. We do not accept unsolicited manuscripts or articles. All manuscripts and photos must be submitted by email to Cynthia@hrprosmagazine.com. Editorial content does not necessarily reflect the opinions of the publisher, nor can the publisher be held responsible for errors.

Windfall Elimination Provision (WEP): The Social Security Fairness Act of 2023 eliminated the WEP The WEP and GPO provisions will still apply for benefits payable for months prior to January 2024.

HR Professionals Magazine is published every month, 12 times a

by the Thompson HR Firm, LLC. Reproduction of any photographs, articles, artwork or copy prepared by the magazine or the contributors is strictly prohibited without

of the

FEDlogic offers tailored support to simplify these changes, helping individuals and families make informed decisions and secure the financial stability they rely on during transitions and new policy implementations

June 3

11 TNSHRM Women in Leadership Conference in Nashville March 28

23 ALSHRM Conference at Perdido Beach Resort May 12-14

26 ARSHRM ELLA Conference in Little Rock April 10-11

29 The AI + HI Project in San Francisco April 9-10

32 TN Personnel Management Association 31st Annual Membership and Training Conference in Franklin April 22-25 33 2025 LASHRM Conference & Exhibition in Baton Rouge April 10-11 38 The HRSouthwest Conference in Dallas October 12-14

SHRM25 in San Diego June 29 – July 2

March2025 Issue Features Labor and Employment Law

Deadline to reserve space February 15

a note from the editor

Hello HR Professionals!

As we turn the pages of our latest issue, I want to take a moment to reflect on the topics that shape the current discourse. Our February issue is filled with insightful articles and thought-provoking perspectives that highlight some of the changes we can expect in the ever-changing world of HR.

Our sponsors have worked diligently to bring you a diverse range of voices and ideas. From in-depth analyses on pressing issues to personal narratives that resonate on a human level, and the importance of dialogue that reflects understanding and change.

I encourage you to engage with the content, share your thoughts, and continue the conversation. Your feedback is invaluable as we strive to improve and evolve our publication. HR professionals are entering a time of great change to the status quo that comes with the change of administrations.

It is more important than ever before to be a certified HR professional! We are offering our Online HRCI | PHR | SPHR Certification on February 19. Our next SHRM | CP | SCP will begin April 23. I am proud of our pass rate of 90%. It is my pleasure to personally help you with your certification.

If you are already certified, you can pick up valuable recertification credits with our complimentary webinars that are pre-approved for SHRM and HRCI credits. You can earn up to four credits monthly. Watch your email for your personal invitation or check our website at www.hrprofessionalsmagazine.com.

As always, I extend my gratitude to our contributors and our dedicated staff who made this issue happen. Together, we hope to inform, inspire, and challenge you.

cynthia@hrprosmagazine.com

Connect with me on LinkedIn:https://www.linkedin.com/ in/cynthia-thompson-mba-shrm-scp-sphr-325b8715/ Like us on Facebook.com/HRProfessionalsMagazine

Will BROWN

William Brown, CPA | The Benefits Group

Hi there! I’m Will, and my journey in business began with a Master of Accountancy from Florida State University and early experience at Deloitte & Touche. Like many, I never imagined I’d end up in the insurance industry—I didn’t grow up dreaming about benefits packages! But my curiosity about the inner workings of businesses led me to consulting, where I worked with organizations of all sizes.

Through this work, I uncovered a critical challenge faced by many businesses: managing employee benefits effectively. I learned that employee benefits, a high-impact area for businesses, were often mishandled due to limited information and technical expertise. The space seemed dominated by “order takers” who lacked a deep understanding of how employee benefits influence both a company’s bottom line and the lives of employees.

At their core, our employee benefit offerings tell a story—whether we realize it or not. They send a message to prospective candidates and current employees alike. Employee benefits are consistently ranked among the top two topics of interest for new candidates, alongside compensation. They’re also one of the leading reasons employees leave an organization. So, what story are your benefits telling? Do they reflect care and thoughtfulness? Or, do they come across as “just checking a box”? Have you invested the time, energy, and effort to ensure your employee benefits align with the 5-Cs of plan design: Customization, Creativity, Cost, Communication, and Care?

That’s where The Benefits Group comes in. We specialize in helping small to mid-sized businesses navigate the complexities of employee benefits. Our mission is to empower organizations by educating both employees and employers on healthcare consumerism and pinpointing the factors driving healthcare costs. We aim to help businesses offer competitive employee benefits packages without compromising their financial stability.

We understand the levers that drive premium increases, as well as the roles hospital systems, insurance providers, and employees themselves play in shaping today’s cost environment. Can we

shift the paradigm? Not by ourselves. But through education, transparency, and legislative action— which is becoming increasingly prevalent—we can work one client at a time to foster an environment of common-sense transparency that benefits both providers and consumers.

How are we different?

We care. Truly. We love what we do. An organization’s output starts with its input: the culture, the leadership tone, and the values it lives by. At The Benefits Group, we’re a work family partnering with your work family. We understand the human element behind every deductible. We don’t just see plan designs; we see new moms, unexpected diagnoses, and moments of loss. Yes, we’re technicians skilled in our craft, but we’re also humans who understand the human stories that shape our work.

This human element is evident in everything we do—from the extra care we take in claims support to the precision with which we manage enrollments. It’s reflected in the respectful way we treat vendors, our quick and responsive communication, and our commitment to always being there when you need us. At The Benefits Group, we don’t just see health insurance; we see you!

If you’re facing an unusually high renewal, we’d love to throw our hat in the ring. We want to earn your business. And if you already have a fantastic broker doing everything right for your plan, stick with them—they’ve earned it! But if you think there’s room for improvement, we’d be honored to be part of the conversation.

Here’s to a joyful, peaceful, and prosperous 2025! 

Presented by MMAGI & McGriff

Tuesday, June 3, 2025, 2:00pm to 5:00pm

Malco Ridgeway Cinema Grill & Bar, 5853 Ridgeway Ctr Parkway, Memphis, TN

HIGH ENERGY FORUM - 10 speakers, 5 minutes – slides auto-rotate - topics relevant to the workplace

Malco Ridgeway Cinema Grill & Bar, 5853 Ridgeway Ctr Parkway, Memphis, TN

HIGH ENERGY FORUM - 10 speakers, 5 minutes – slides auto-rotate - topics relevant to the workplace

OFFICIAL MEDIA SPONSOR

$5 per ticket sold will be donated to PorterLeath, a Memphis non-profit serving children & families since 1850.

EARLY BIRD until March 31st

$25 PER TICKET

N a v i g a t i n g

e w P o l i c i e s

Federal Benefits Post-Election

As the new year begins and a new administration takes office, predicting and following policy changes can be challenging FEDlogic acts as an independent resource, offering education, guidance, and advocacy for all federal and state benefit programs Our team of policymakers, experts, and adjudicators have worked in these government agencies and use their decades of knowledge and experience to decipher and decode policies Social Security is a crucial aspect of the benefits that our population relies on, both now and in the future

The Social Security Administration has announced several key policy changes

that are effective in 2025, which impact beneficiaries nationwide These updates include adjustments to benefit amounts, taxable earnings limits, and potential legislative changes affecting benefit calculations Staying informed about these changes is crucial for effective financial planning and ensuring that beneficiaries receive the full benefits to which they are entitled FEDlogic is here to provide eligibility education and enrollment assistance for all Federal and State Health benefits These policy changes reflect SSA's efforts to adjust benefits in response to economic conditions and legislative actions Beneficiaries are encouraged to review these updates to understand their potential impact since understanding these updates from Social Security is vital as they directly affect retirement income, payroll contributions, and benefits for vulnerable populations

Social Security Changes in 2025

Cost-of-Living Adjustment (COLA): Benefits have increased by 2 5%, translating to an average $50 monthly increase for retirees

Taxable Earnings Adjustments: The maximum earnings subject to payroll taxes rose from $168,600 to $176,100

Supplemental Security Income (SSI): The maximum monthly benefits increased to $967 for individuals and $1,450 for couples

Windfall Elimination Provision (WEP): The Social Security Fairness Act of 2023 eliminated the WEP The WEP and GPO provisions will still apply for benefits payable for months prior to January 2024

G o o d f o r E m p l o y e e s

G o o d f o r Y o u

How FEDlogic Helps Employers, HR, & Employees

FEDlogic connects employees with expert advocates to explore all federal and state healthcare programs, offering alternative healthcare options with comprehensive coverage at lower costs Employees often struggle to understand and access federal and state benefits, and they may not realize that they qualify for government health benefits that exceed what their health plan offers This is particularly true for employees navigating a significant health crisis or major life change FEDlogic was established to assist workers in navigating government health benefits for themselves and their families by uncovering comprehensive and affordable federal benefits.

Discover Real Savings with FEDlogic

For over a decade, FEDlogic has provided unbiased expert support to families facing complex health insurance situations, including terminal illness, premature births, disability, and COBRA By educating families on available federal and state benefit programs, one-third of the families we've helped transition to more cost-effective healthcare options, resulting in significant savings for families and self-insured employers

FEDlogic guarantees a 1:1 ROI On average, we achieve a return on investment (ROI) of 7:1 (ranging from 2:1 to 13:1)

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How Do Your 2025 Employee Benefits Compare?

Employee benefits continue to evolve in response to changes in workforce expectations, economic conditions, and market trends. Here are some of the most popular employee benefits anticipated for 2025:

Remote work flexibility is the most popular employee benefit for 2025. It includes hybrid work models and a blend of remote and in-office work options. Work-from-anywhere policies allow greater freedom for employees to work from different locations.

Mental health support came in as the number two top employee benefit for 2025. It includes Employee Assistance Programs (EAPs) and expanded services including counseling and mental health resources. Wellness Days is another popular benefit that includes paid days off specifically for mental health.

It should come as no surprise that Increased (PTO) Paid Time Off is at the top of the list. This includes enhanced PTO policies that allow more flexibility to take time off when needed without restrictions. Many employees want sabbaticals or extended leave to recharge and pursue personal projects or education.

Health and Wellness Programs, such as comprehensive health plans that include more choices in health insurance options and telehealth services. Wellness Incentive programs that encourage exercise, healthy eating, and preventive care with rewards are a hot benefit for 2025.

Financial Wellness Benefits that include Student Loan Repayment Assistance as part of your benefits package will help attract new talent to your organization while Retirement Planning Services will help with retention of older workers. Another new benefit to consider is access to financial advisors for personal financial and retirement planning.

Professional Development Opportunities still rank high on the list of desirable benefits that will help attract new talent for your organization. Consider continuous learning programs and funding for courses, certifications, and skills training. Mentorship programs with structured opportunities for employees to learn from veterans in the field are important in attracting new talent.

Inclusive Benefits Programs that address the needs of your diverse employee base are very important in retention including parental leave, domestic partner benefits, and accommodations for disabilities. Consider childcare assistance that includes on-site childcare and subsidies for childcare expenses.

As organizations strive to attract and retain talent, the focus on comprehensive, flexible, and supportive employee benefits is likely to continue. Companies that prioritize these areas will not only enhance employee satisfaction but also improve overall workplace culture and productivity while attracting new talent.

You have a choice in group health insurance plans. With lower rates and an extensive network, be sure to get a quote from QualChoice

Affordable Online SHRM-CP® | SHRM-SCP® Certification Exam Prep Class

Online classes begin April 23, 2025 and will meet twice per week for 12 weeks on Monday and Wednesday evenings from 6:00 PM to 7:00 PM.

SHRM Learning System® Participant Materials

The total cost of the SHRM-CP® | SHRM-SCP® Online Certification Exam Prep Class is $1025 (plus $25.00 shipping)

You may pay by PayPal, credit card or check. 2025 Spring Exam Window May 1, 2025 – July 1, 2025

For more information visit shrmcertification.org

Guarantee

If you do not pass, you can retake the class at no additional charge if you meet these two requirements: – Attend 80% of the scheduled online classes – Score 80% on all practice quizzes

Deadline to register is April 16, 2025

Contact cynthia@hrprosmagazine.com OR visit our website at www.hrprofessionalsmagazine.com

About the instructor:

Cynthia Y. Thompson is Principal and Founder of The Thompson HR Firm, a human resources consulting company in Memphis. She is a senior human resources executive with more than twenty years of human resources experience concentrated in publicly traded companies. She is the Editor | Publisher of HR Professionals Magazine, an HR publication distributed to HR professionals in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Texas.

Cynthia has an MBA and is certified as a Senior Professional in Human Resources (SPHR) by the Human Resource Certification Institute and is also certified as a Senior Certified Professional by the Society for Human Resource Management. She is a faculty member of Christian Brothers University. Cynthia was appointed to serve on the Tennessee DOHR Board of Appeals by Gov. Bill Haslam in 2014.

Tighten Up Your Background Screening Process to Stop Fraud in Its Tracks

Not everyone is trying to fake it. However, there are enough fraud-doers out there that employers need to take precautions to sniff them out.

Candidates who misrepresent themselves can pose serious risks to your organization. It’s crucial to beef up your background screening process to catch dishonesty before it infiltrates your workplace. By identifying and addressing red flags early, employers can avoid ill-equipped hires, costly mistakes, and maintain a transparent, trusting culture.

What Is Candidate Fraud?

1 in 14 job candidates commit some type of fraud. Candidate fraud occurs when job applicants use dishonest tactics to misrepresent themselves during the hiring process. This can include:

• Falsifying credentials (inflating education or work experience).

• Providing fake references.

• Assuming false identities to conceal their true background.

These deceptive practices pose significant risks to employers who fail to detect them. Hiring a fraudulent candidate can lead to:

• Financial losses.

• Brand damage.

• Legal complications.

• Harm to the company culture.

Using Strategic Background Screening to Combat Candidate Fraud

Understanding and identifying candidate fraud is the first step in protecting your organization and ensuring a trustworthy hiring process.

Employers should implement these six actionable ways to reduce the impact that candidate fraud has on your company.

Add New Technology

Technology is evolving rapidly, which is good news for fraud fighters. Leveraging advanced background screening technology like the Data Facts Verified ID can help identify and eliminate fraud during hiring. In addition, AI-driven tools and automated systems can flag inconsistencies, verify data, and detect potential red flags faster than traditional methods. Technology also streamlines processes, reducing human error and enabling real-time monitoring to stay in compliance.

Train Hiring Teams on Fraud Awareness

Equip your hiring teams with the knowledge and tools to identify fraud’s red flags.

• Start by providing standardized fraud awareness training to HR professionals, hiring managers, and recruiters. This training should focus on common tactics candidates use, like creating titles, using stolen identification, or masking gaps in employment.

• Teach teams how to scrutinize resumes, verify documents, and ask targeted questions during interviews to uncover inconsistencies.

• Incorporate hands-on practice with scenarios and real-world examples to build confidence.

Verify Identity at Every Step

If you don’t catch issues with your job applicant’s identity, subsequent screening will be for nothing. Candidates often use false identities or stolen credentials to deceive potential employers. To counter this, implement comprehensive identity verification measures at multiple stages of the hiring process. Request government-issued photo IDs during initial application reviews.

• Verify these documents using specialized software or third-party services.

• Use biometric tools, like facial recognition or fingerprint scanning, for roles requiring higher security clearance.

• Conduct (when possible) in-person document verification to cross-check details with the applicant.

• For remote roles, use secure video interviews where candidates must present IDs on camera.

These layers of verification ensure candidates are who they claim to be.

Partner with a Hands-On Background Screening Vendor

Choosing the right background screening vendor is one of the best ways to prevent candidate fraud. Look for a vendor that:

• Is accredited by the Professional Background Screening Association (PBSA).

• Holds a SOC 2 Type II designation, which ensures adherence to the highest standards of security, accuracy, and data privacy.

A dedicated background screening partner goes beyond generic solutions, tailoring services to your company size and industry needs. The vendor should use both technology and human review to evaluate reports and catch discrepancies.

Execute a Process for Monitoring Current Employees

Fraud prevention is not a one-and-done initiative. Ongoing employee monitoring, particularly in sensitive roles like finance, healthcare, or security, is essential.

Depending on the position, periodically check:

• The motor vehicle registry to ensure drivers maintain valid licenses.

• Drug use to catch potential issues early.

• Criminal record searches to identify new risks.

Ongoing monitoring allows employers to address emerging risks before they escalate, maintaining a trustworthy and highly productive workforce.

Regularly Evaluate Your Company’s Screening Policies

Fraud tactics evolve rapidly, making it essential to review and update your background screening policies regularly. In addition, new tools and technologies, like AI-driven identity verification and real-time monitoring solutions, are continually being developed to improve accuracy and detection.

Stay informed about advancements in background screening technology and incorporate them into your processes to stay ahead of emerging threats. Additionally, ensure your policies align with changing regulations and industry standards (for compliance’s sake). Periodic evaluations help identify gaps, address vulnerabilities in your process, and refine your practices.

Background

Screening Is Your First Line of Defense Against Candidate Fraud

As long as people need jobs, there will be some who try to cheat, lie, and misrepresent themselves. Letting these applicants slip through the cracks can be detrimental to your company’s culture and bottom line.

Catching candidate fraud takes a proactive approach. Add these six recommendations to your background screening policy for peace of mind that you’ll pinpoint false candidate information early in the process. Doing this creates a wellexecuted background screening strategy that safeguards your workforce and protects your company from harm.

Fairness

By JOHN DANIEL

Why fairness is the most critical variable in employee relationships Alexis was a fantastic employee. She had been at the bank for over a decade, had received several promotions, and was flourishing in her role. Her manager gave her the highest performance rating and recommended her as a high potential during the talent assessment process. Alexis seemed to love her job and the people she worked with. She seemed to trust and respect her manager. Her manager reported she was happy with her pay and opportunities at the company. I had met with Alexis on multiple occasions as she participated in many employee activities. She always seemed happy and upbeat and, on several occasions, talked about how much she loved the company.

Then one day I received a call from her with an urgent request to see me. I could tell by the tone of her voice that something was wrong, so I invited her to visit my office at the end of the day. When she arrived for our meeting, she was visibly distraught. Before I could ask, she launched into her story while holding back tears. It seems earlier that day, she came upon a document at the copier that detailed the pay of all the members of her department. She apologized for looking at the document but said she couldn’t help herself. One number that caught her immediate attention was an 8 in the salary of one of her peers. That single number flooded her with emotions and put her in an apoplectic state.

She laid out her story but started with a question: How could Matt, one of her peers in the same job, be earning $78,000 per year when her salary was only $76,000? Alexis pointed out that she had been at the company longer, had been in the role longer, and had received excellent reviews and feedback from her boss. The latter detail was evidence to her that the pay difference was not because Matt was a better performer. In fact, she pointed out that on many occasions she had provided coaching and assistance to Matt as he was learning his job. Her voice quivered as she talked, and I could tell she was holding back tears. At last, she summed it all up. “This is just not fair!”

Alexis’s story is one I have seen multiple times. A happy, productive employee suddenly becomes unhappy and less productive. And the change is usually not incremental. This contrasts with other events in the workplace that can have an impact on an employee. A poor performance review, a high volume of work, and conflicts with colleagues all generate some level of emotion, though usually with much less fervor. But when an issue comes up related to an employee’s sense of fairness, the level of emotional intensity can be extremely high. Our human sense of fairness is deeply embedded in our psychological machinery and has evolutionary roots.

Our hunter-gatherer ancestors thrived on cooperation. The propensity and capacity to cooperate has clear adaptive advantages. Wolves working together can bring down big prey. One large elk for all to share is better than one rabbit captured by a lone hunter. In fact, species from lions to

army ants cooperate, and cooperators do better than noncooperators. With most species, cooperation is mutually beneficial, but transactional and short-term in nature. With humans, cooperation is a more complex and long-term phenomenon. It involves giving something of value to someone today with the belief that you will receive something of similar value in the future. This behavior is called reciprocal altruism.

Reciprocal altruism was a fascinating puzzle to the first evolutionary biologists. Evolutionary theory explains why members of a species help family members: family members share genes, so if you help family members thrive you are indirectly passing on your shared genes to the next generation. But human cooperation evolved so that individuals engaged in exchanges that involved a cost to the giver in the short term in return for benefit in the long term. Natural selection favored reciprocal altruism and built its behavioral dispositions into our brains.

The theory was first proposed by evolutionary biologist Robert Trivers and is considered one of the most significant insights in evolutionary theory. Trivers and others that followed proposed that several conditions occurring together led to the development of reciprocal altruism. Individuals must 1) have an opportunity to interact often, 2) be able to keep track of the support given, and 3) provide support to only those that help them. Our ancestors’ hunter-gatherer lifestyle created the perfect setting for reciprocal altruism. Generosity today meant costs in the short term but benefits later. Trivers described it as cooperation smeared across time.

But there is a fly in the ointment when it comes to reciprocal altruism in practice—the free rider problem. In cooperative exchange, both parties negotiate and come to an agreement about the fair value of what is exchanged. Cheating is limited. Unless some kind of force or deception is used, the parties come to some mutually beneficial exchange in real time. With reciprocal altruism, the beneficiary of generosity can fail to live up to his responsibly to share down the road. Free riders will do better than reciprocators. Too many free riders and groups don’t thrive. Natural selection had a solution for that problem, a repertoire of preferences and emotions like the one experienced by Alexis in our opening story.

Evolution by natural selection has embedded in our nature a fairness/ cheating module that protected us for thousands of generations from cheaters and free riders. If we are trying to positively influence others, we should know that the perception of a lack of fairness will generate a powerful and long-lasting emotional response. The mechanism of that response is wired deeply in our psyche. Consider fairness the most critical variable in maintain positive relationships and use transparency as a main lever. As Supreme Court Justice William Douglas once said about transparency, “Sunlight is the best disinfectant”.

This is an excerpt from the recently released book Ancestral Mindset former HR executive and thought leader, John Daniel (See ad on page 19)

CASE STUDY :

Executive Retirement and Retention

By EDDIE L. VAUGHN

A mid-sized company wanted to incentivize their executive management team to help expand and grow their business. This case study outlines an assessment which identified goals, challenges, and solutions that helped the company fine-tune and expand an existing executive retirement program to bring it up-to-date and meet their objectives.

CLIENT PROFILE:

The family-owned business with 300 employees was founded in 1910. Family members led the organization through most of its history until they began hiring executives from other firms in their industry about 20 years ago. The current senior leaders are mid- to late-career hires who are not family members and therefore do not have the same ties to the company that fostered retention in the past.

The company sought help to assess and recommend changes and improvements to the company’s executive retirement/deferred compensation program.

CHALLENGE:

Conversations with majority owners and board members revealed that:

• Supplemental executive retirement programs (SERPs) were in place for two key sales executives.

• Other key positions were not covered by similar non-qualified programs, including the CEO, CFO, and Human Resources VP.

• The company wanted to enhance retirement security for the two previously covered positions and the three uncovered positions, particularly in the wake of recent plans to freeze the companywide retirement plan.

• The owners expected to sell the company in the next three to four years, and wanted to incentivize key leaders to remain until after the sale (and beyond, if agreeable to all parties after the transaction).

OUR APPROACH:

We implemented a four-part review process:

1) Based on our knowledge and industry standards, we recommended a competitive retirement benefits package that would conform to the organization’s human resource objectives and financial constraints.

2) Reviewed and recommended approaches for adding retention or “handcuff” provisions to the program, considering constraints within applicable law, including Internal Revenue Code Section 409A to avoid “excess parachutes” and associated tax penalties.

3) Worked with the company’s legal counsel and financial advisors to recommend a funding approach that balances benefit security, efficient use of resources, and avoids undesired tax consequences, such as constructive receipt of income and taxation to the executives prior to benefits being paid.

4) Estimated the impact of the proposed programs on the company’s financial statements, and recommended and implemented prudent ongoing administrative processes, including annual valuations and strategies with respect to FICA taxation.

SOLUTION:

Based on the assessment and recommendations, the company’s board implemented an offering customized for each executive that:

• Tailored the benefit level to each executive based on length of service, current remuneration, proximity to retirement, and importance of their position and duties to the company’s success.

• Provided retention incentives by withholding benefits until normal retirement age (typically 65) while incorporating a trigger for immediate retirement eligibility upon a change in control.

• Avoided excess parachute payments and the associated tax penalties (that potentially arise with a change-in-control trigger) by careful design of benefit levels and other features.

• Utilized appropriate funding options, including no funding, i.e., earmarking a reserve on the company books; non-trust assets (marketable securities or corporate-owned life insurance); or housing assets in a trust, offering benefit security while avoiding constructive receipt and taxation (a rabbi trust).

• Provided an additional measure of benefit security through plan features such as a lump sum payment option that accelerates payments (as opposed to a payout spread over 20 years or more).

RESULTS:

The company was acquired by a large competitor within two years of implementing the executive retirement plans. The primary purpose of enhancing retirement security and rewarding key leaders for their service was achieved. Retention objectives were exceeded, as all five of the key executives remained onboard to guide the transaction to its completion, and beyond.

Eddie L, Vaughn, FSA, MAAA, EA Senior Vice-President and Retirement Practice Leader McGriff Evaughn@McGriff.com

Is employee engagement and communications a challenge?

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• Support employee incentive programs

Learn more about how to curate a comprehensive employee experience. Contact McGriff to get started.

May 12-14,

Perdido Beach Resort, Orange Beach, AL

Leading in Times of Change: The Critical Role of HR

By AMY SCHABACKER DUFRANE

What’s the biggest problem being faced by HR professionals right now? It can be summed up in one word: change. In 2025, the world is grappling with an abundance of change and while change is an opportunity for exciting growth and innovation, it’s also disruptive and uncomfortable. The uncertainty that goes with change can trigger stress for some employees, bringing their productivity to a standstill. For others, it’s a chance to develop and showcase new skills. Hating change or loving change might be directly correlated to your culture. The reality is that you’ll most likely observe different degrees of struggling or embracing change across your workforce. And you need to prepare to manage it.

What defines change is as varied as your workforce and what concerns them. Climate change. A new political administration and power struggles. Rapid advancements in artificial intelligence. Concerns about inequality, the price of eggs, healthcare costs, returning to the office, and military conflicts. What is indisputable is the significant amount of change happening in the world and the workplace. And as the father of modern management principles, Peter Drucker, said, “The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.”

“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.”

Drucker is credited with keeping people at the core of business, specifically to empower the workforce and help them achieve their goals. Having passed in 2005, his work was prescient and provides us with food for thought as we consider what lies ahead. He argued that in a world where change is constant and inevitable, we need to have systematic methods to predict change and balance change with business continuity. If we are to continually expect change, are we supporting change proactively or hiding our heads in the sand? Are we considering culture, values and employee wellbeing as part of change management or naively guessing that workers will continue to perform at 100 percent? The bottom line is that HR needs to have a change plan with goal setting that – while dynamic – provides a framework with room to grow and envisions outcomes.

Why is a change plan necessary? Consider a possible outcome of the new administration’s policies in the U.S. Dismantling federal agencies will result in the termination of federal workers, jobs that have been historically unscathed from the ups-and-downs of private sector fallouts. The outcome could potentially generate one million+ new job candidates with skills that might not map perfectly to for-profit requisitions. Welcoming these candidates as employees might alter the ethos of the

existing workforce. And jobs that were previously entrusted to the public sector might transfer to the private sector or create new start-ups that compete on some level. That’s a lot of change to absorb as it happens, underscoring the reason why a change management plan that considers different scenarios can be valuable.

As change ensues, the importance of middle management rises. Often forgotten yet always important, middle managers can be the glue that holds teams and departments together. If change involves budget cuts, HR needs to turn to technology to make sure key leadership development programs remain in place. For example, with the growing emphasis on artificial intelligence, a change management plan could consider substituting AI-powered coaching instead of traditional coaching.

Another area to consider in times of change is the importance of facilities management. As you know, HRCI has a partnership with IFMA to help HR professionals increase their knowledge of how facilities can help create workforce alignment. It’s a natural progression, as HR already possesses the skills to consider what employees need in their workplace. Adding how the corporate office building can become a safe haven as change swirls about can be integral to a plan that looks to retain, not repel, qualified talent.

Lastly, consider the consequences of not assuming ownership of change. The HR profession has evolved significantly in recent years and time and again leaders turn to us to solve the hard problems that involve people, process, and technology. Waiting for change to land and expand within the workforce can create dire concerns that take years to resolve. Managing in times of change starts with the right training, networking, and planning to protect and lead no matter how change manifests itself.

Amy Schabacker Dufrane, Ed.D., SPHR, CAE, is CEO of HRCI® — HR Certification Institute, and is the founder and CEO of HRSI — HR Standards Institute, where she is responsible for driving and disrupting the conversations about building high-performing, strategic HR teams. An engaging thought leader at the intersection of talent strategy and continuous learning, Dr. Dufrane is an award-winning leader and celebrated keynote speaker on the human side of successful business strategy in the 21st century.

A Global HR Online Community

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• Develop Your Strategic Edge: Stay ahead of HR trends, address current challenges, and access resources for professional growth. Join

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Meet the 2025 TNSHRM Board of Directors Tennessee

EXECUTIVE DIRECTOR

Art Smith, SPHR, CCP, CAE AG Smith & Associates, LLC

TREASURER

Pamela Schreiner, SHRM-SCP Zoe Angling Group

DIVERSITY DIRECTOR

Akil Lloyd, SHRM-SCP Human Resources Leader

WORKFORCE READINESS DIRECTOR

Kathy Tuberville, Ed.D., SHRM-SCP The University of Memphis

DISTRICT DIRECTOR - WEST

Danielle Lombard-Sims, PCC, SPHR Talentergy, LLC

STAFF: MEMBERS AND COMMUNITIES DIRECTOR

Dianna Sporcic, SHRM-SCP SHRM

STATE DIRECTOR

Debra Gates, PHR, SHRM-CP Western Governors University

SECRETARY

Frances Flowers, SPHR, SHRM-SCP BCBS of Tennessee

LEGISLATIVE DIRECTOR

Paige Lyle, Esq. Ford Harrison

SOCIAL MEDIA DIRECTOR

Aidan Farrish, aPHR HealthTrust

PROFESSIONAL DEV. / STRATEGIC BUSINESS MANAGEMENT CHAIR

Matt Gregory, MBA, GBA Lockton Companies

STAFF: CHIEF ADMINISTRATOR

Celeste Shepherd AG Smith & Associates, LLC

STATE DIRECTOR - ELECT

Mary Jo Swearingen, SHRM-CP LBMC Employment Partners

CERTIFICATION DIRECTOR

Doug Hertel, SPHR, SHRM-SCP Worldwide Equipment. Inc.

MEMBERSHIP AT-LARGE DIRECTOR

Lauren Key, SHRM-CP Oak Ridge National Laboratory

DISTRICT DIRECTOR - EAST

Jane Roberts, SHRM-SCP Inventive HR

2025 TN SHRM CONFERENCE CHAIR

Heather Thompson, PHR, SHRM-CP Nurture the Next

STAFF: ADMINISTRATION PROFESSIONAL

Emily Dyer AG Smith & Associates, LLC

PAST STATE DIRECTOR

Andy Wainwright Careerminds

COLLEGE RELATIONS DIRECTOR

Hope Clippinger Western Governors University

SHRM FOUNDATION DIRECTOR

Billy McCoy, MBA, PHR, SHRM-CP Erlanger

DISTRICT DIRECTOR - MIDDLE

Tish Meshew, SPHR The Next Door Recovery

AWARD & SCHOLARSHIPS CHAIR

Gary Hall, PHR, SHRM-CP TenCate Grass US

STAFF: ADMINISTRATION PROFESSIONAL

Ben Princehorn AG Smith & Associates, LLC

ACA Reporting Deadlines and Penalties

Cheat Sheet

Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 and 6056 should prepare to comply with reporting deadlines for calendar year 2024 using the chart below. In general, self-insuring employers are subject to Section 6055, and applicable large employers or ALEs (those with 50 or more full-time employees during the prior calendar year) are subject to Section 6056. There are no reporting obligations for non-ALEs without a plan or non-ALEs with fully insured plans (as the carrier will complete Section 6055 reporting).

Reporting Deadlines

Action

File Forms 1094-C and 1095-C

Electronically* With the IRS

Fully Insured ALEs Due Dates

March 31, 2025

Self-insured ALEs Due Dates

March 31, 2025

File Forms 1094-B and 1095-B Electronically* With the IRS

File Forms 1094-B and 1095-B

Electronically* With the IRS

Provide Forms 1095-C to Full-time Employees Upon Request

Reporting entities must provide a clear, conspicuous and accessible notice that employees may receive a copy of their statement upon request

Provide Forms 1095-B to Responsible Individuals Upon Request

Reporting entities must provide a clear, conspicuous and accessible notice that individuals may receive a copy of their statement upon request

N/A

Jan. 31 of the year following the calendar year to which the return relates or 30 days after the date of the request, whichever is later

N/A

ALEs providing selfinsured coverage to nonemployees may use either the B series forms or the C series forms to report coverage for those individuals, by March 31, 2025

Jan. 31 of the year following the calendar year to which the return relates or 30 days after the date of the request, whichever is later

ALEs providing self-insured coverage to nonemployees may use either Form 1095-B or Form 1095-C to report coverage for those individuals, by Jan. 31 of the year following the calendar year to which the return relates or 30 days after the date of the request, whichever is later

Self-insured NonALE Due Dates

Self-insured NonALE Due Dates N/A

N/A

March 31, 2025

March 31, 2025 N/A

N/A

Jan. 31 of the year following the calendar year to which the return relates or 30 days after the date of the request, whichever is later

*Reporting entities that file at least 10 returns during the calendar year must file electronically. Reporting entities must aggregate most information returns, such as Forms W-2 and 1099, to determine if they meet the 10-return threshold for mandatory electronic filing.

Adjusted Reporting Penalties

The following chart provides the different types of penalties that can apply for 2024 returns and individual statements that are filed and furnished in 2025. A reporting entity that fails to comply with the ACA reporting requirements may be subject to the general reporting penalties for:

• Failure to file correct information returns (under Code Section 6721); and

• Failure to furnish correct payee statements (under Code Section 6722).

However, penalties may be waived if the failure is due to reasonable cause and not willful neglect. Penalties may also be reduced if the reporting entity corrects the failure within a certain period of time, as shown below.

*The maximum penalty amounts are different for small businesses and large businesses. For purposes of the penalty maximum, a small employer is one that has average annual gross receipts of up to $5 million for the three most recent taxable years. There is no maximum penalty for intentional disregard.

31st Annual Membership and Training Conference April 22 - 25, 2025

Drury Plaza Hotel, Franklin, TN

What Should the Focus be for HR Management in 2025?

According to recent SHRM insights, top priorities for 2025 include:

• Focus on employee financial well-being.

• Leverage AI in talent strategy.

• Prioritize employee mental health.

• Promote a strong employeeemployer relationship.

• Address diversity, equity, and inclusion (DEI) challenges.

• Adapt to hybrid work models.

• Utilize data analytics to drive informed HR decisions.

What are the top trends to watch in 2025?

• Leader development

• Organizational culture

• Strategic workforce planning

• Change management

• HR technology

Strategic Priorities for 2025

• Attract and retain top talent.

• Prepare employees to become future leaders.

• Enhance the employee experience.

• Drive organizational change and agility.

• Ensure compliance with regulations & legal requirements.

Online HRCI PHR | SPHR Certification Prep Class

Online classes begin February 19, 2025 and will meet twice per week for 8 weeks on Monday and Wednesday evenings from 6:00 PM to 7:00 PM.

HRCP 2025 Study Materials included:

• Six Study Guides • Online practice exams for each Study Guide • 100s of Flashcards

• HRCP materials that are among the most effective study guides available and are easy to read and understand

The total cost of the HRCI PHR | SPHR Certification Prep Class is $900 plus shipping ($25.00).

You may pay by PayPal, Credit Card, or Check.

Guarantee

If you fail the exam, you may retake the class as long as you – Attend 80% of the scheduled online classes – Score 80% on all HRCP practice quizzes during the program

Deadline to register is February 15, 2025

Contact cynthia@hrprosmagazine.com OR visit our website at www.hrprofessionalsmagazine.com

About the instructor:

The change of the Administration in Washington, D.C., can significantly impact workplace laws and regulations, reflecting the administration’s priorities, philosophies, and political mandates. HR professionals can

look back to Trump’s previous term from 2017 to 2021 as a reference. Here’s an outline of potential changes to workplace laws that could occur during a Trump presidency, based on historical trends and policy positions from his previous term:

Labor Relations and Union Policies

***Decreased Union Power*** Trump previously supported policies that weakened unions, such as promoting “right-to-work” laws that limit unions’ ability to collect fees from non-members.

***Changes to the National Labor Relations Board (NLRB)** An administration led by Trump might appoint members to the NLRB who favor employer rights over union rights, affecting collective bargaining processes and labor dispute resolutions.

***Regulation Rollbacks***

**Elimination of Regulations** The Trump administration is known for its regulatory rollback efforts. This could include rescinding or delaying workplace protections issued during previous administrations concerning worker safety, wage laws, and anti-discrimination measures.

**Modification of Occupational Safety and Health (OSHA) Standards: **Changes might be made to compliance requirements and enforcement priorities under OSHA, potentially reducing the regulatory burden on employers.

Wage and Hour Laws

**Revisions to Minimum Wage Policies** It is likely that the Trump administration would be less inclined to support federal minimum wage increases and may endorse state-level control over such laws.

**Overtime Regulations** Previous administrations have sought to expand overtime protections, while a Trump administration might focus on rolling back hours of work eligibility for overtime pay.

Employee Benefits and Protections

**Health Care Regulations** A potential push for reforms in the Affordable Care Act might influence employer requirements related to health benefits and insurance provisions.

**Family Leave Policies** Changes to federal family leave provisions and parental leave could result in reduced protections for employees.

Possible Changes to Workplace Regulations Under TRUMP

**Immigration and Workforce Composition**

**Immigration Policy** Stricter immigration policies might impact the availability of workers, particularly in industries reliant on seasonal or immigrant labor, leading to potential labor shortages.

**E-Verify Expansion** Enhanced enforcement of E-Verify could be mandated to ensure that all employees are legally authorized to work in the United States.

**Diversity and Inclusion Policies** Rolling Back AntiDiscrimination Policies** An administration aligned with Trump’s previous term will reduce the emphasis on diversity and inclusion initiatives, impacting affirmative action and equal employment opportunity enforcement.

Health and Safety Standards

**Responses to Pandemics** Legislative responses to health crises, such as COVID-19, could influence workplace safety regulations and employee rights regarding leave and health protection.

Conclusion

While the points outline potential changes that could arise from the Trump administration focused on a pro-business agenda, the exact impact on workplace laws would depend on congressional composition, public sentiment, court challenges, and other political dynamics. HR professionals should stay informed and engaged in advocacy efforts crucial to navigate potential changes in workplace regulations.

The top three SHRM priorities for the 118th Congress include:

1 Modernize the FMLA

2 Improve the Immigration and Nationality Act

3 Streamline the FLSA

Join the SHRM Advocacy Team at SHRM.org to stay updated on public policies that foster better workplaces.

2024 HR TRENDS AND 2025 PREDICTIONS

In 2024, HR departments faced significant upheaval driven by political, legal, and technological transformations. These shifts presented challenges and opportunities, demanding that HR leaders implement adaptable strategies while focusing on enhancing employee experience and fostering inclusion.

DISCOVER THE BIGGEST HR TRENDS OF 2024 AND WHAT LIES AHEAD IN 2025:

2. Courts Remake

The U.S. presidential election was a source of stress, discord, and distraction for workplaces nationwide this year, but its impact isn’t over yet. Look for the next administration to bring significant regulatory changes in 2025, which could require HR departments to adapt swiftly.

The U.S. Supreme Court’s decision in Loper Bright Enterprises v. Raimondo gave courts greater discretion to strike down regulations, and some lower courts acted quickly on it in 2024. Expect the impact of this decision to continue in 2025, as rulemaking may become less aggressive and legal challenges to existing rules may become more common.

Acts of incivility significantly drained workplace productivity in 2024, with political disagreements being a flashpoint for conflict. But civility isn’t merely an election-year issue, and unless organizations take action to instill a culture of civility, they should expect this problem to persist into 2025. 3. Civility Is in Crisis

Organizations finally started to see signs that the historically tight post-pandemic labor market was becoming less intense in 2024. But HR departments should expect competition for the most in-demand skills to remain fierce in 2025, which will prompt some organizations to focus on retaining and upskilling existing workers to gain necessary skills.

Business interest in artificial intelligence tools was hotter than ever in 2024, as organizations became increasingly serious about integrating AI into their workflows. But HR departments will need to ensure that the adoption of AI tools enhances the value of their existing workforce in 2025 by finding ways to elevate human skills and drive both productivity and creativity.

Organizations looking to enhance employee retention and productivity are going beyond tracking employee engagement and looking at employee experience, a more holistic measure of how workers interact with their workplace. In 2025, organizations may invest in tools that better equip them to track and enhance their employee experience.

Organizations’ efforts to enhance inclusion and diversity (I&D) were in flux during 2024, as many companies announced they were changing, scaling back, or eliminating I&D programs. But don’t expect I&D to completely fade away in 2025, as organizations may look to take new, more practical approaches to driving measurable I&D improvements.

The composition of the C-suite is evolving. In recent years, the titles that make up many organizations’ top ranks have shifted, while the occupants of the C-suite have become more diverse. In 2025, organizations should continue to experiment with their leadership model as they look to adapt to an increasingly volatile business environment.

Two trends converged in 2024: Some organizations hardened their stance on having employees return to the office after years of pandemic-prompted remote work, while at the same time, benefits providing flexibility to address family care needs became more common. Look for organizations to continue to seek a balance between providing the work/life integration employees want and the collaborative atmosphere organizations need.

Get Additional 2025 Resources from

Several organizations made headlines in 2024 because of internal HR policies and decisions, which often caused unnecessary damage to their brand. Expect organizations to think more carefully about the intersection of HR and public relations as they look to make their employer brand stronger in 2025.

Highlights from the GMEBC Meeting January 9, 2025

1 Memphis Junior Achievement of Memphis and the Mid-South 2 John Daniel was the speaker at the GMEBC January 9 meeting at the Memphis Junior Achievement Office. John provided valuable insights from his new book, “Ancestral Mindset – Adopting an Evolutionary Framework to Lead, Influence and Collaborate.” Learn more about John’s new book on Pages 18-19 in this issue. The GMEBC Non-Profit Spotlight was on Junior Achievement of Memphis and the Mid-South. Junior Achievement has been dedicated to educating students about entrepreneurship, work readiness, and financial literacy since 1955. 3 2025 GMEBC Board of Directors (L-R) Jimmy Madeksho, Preston Cox, Esha Lupe, Valeria Webster, Ted Archdeacon, Cayce Graham, Hal Stansbury, and Jonathan Frisch. Not pictured were Lia Lansky and Tisch McDaniel.

DIVERSITY ISN’T OPTIONAL— IT’S ESSENTIAL.

Employees who feel their organization doesn’t value diversity are 3.3 times more likely to leave within a year.* Can your workplace afford that risk?

At SHRM25, discover strategies to embed inclusion into your culture, strengthen employee retention, and lead with purpose. Build a workplace where everyone belongs—and stays.