workforce.com
May/June 2019
2019
HIGH-FLYING HR Southwest Airlines soars to the top spot on this year’s Workforce 100
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THE BRIDGE BETWEEN WORK & TECHNOLOGY. The workforce of today has ever-evolving needs and expectations which means that the demands on HR departments are exploding. The only way to stay ahead of the game is to be smart with your HR technology. UNLEASH America empowers you to explore that crucial bridge between work and technology. Join your peers to: Meet the C-Suite and HR leaders of the Fortune 500 Get insight on crucial industry trends and forecasts Hear from the best-of-breed speakers on how they managed to transform their business and find the inspiration to drive your own success story
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WORK REVOLUTION EXT GEN INNOVATIONS DIVERSITY & INCLUSION PEOPLE ANALYTICS LEARNING & DEVELOPMENT
4TH INDUSTRIAL REVOLUTION DIGITAL TRANSFORMATION RECRUITMENT HR TECH
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From Our Editors
FROM PERSONNEL TO WORKFORCE
No company is perfect. Key people leave. One employee’s disastrous choice threatens an entire company. Business goes south. It’s not what happens that defines a company. It’s what it does in response. When times are good, companies turn a profit. They retain their people. They see results. Good business conditions mask bad employee practices. When things turn for the worse you see what’s been hiding all along. Good HR is a hedge against bad results.While solid HR practices never insulate a company from risk, they certainly decrease it. Take a look at the Workforce 100 list of best companies for HR in this issue.You’ll see a few that have a dent or two.What sets them apart isn’t perfection. It’s their execution. — Mike Prokopeak, Editor in Chief 4
Workƒorce | w o r k f o r c e . c o m
The workplace has changed a lot since 1922. That year The Journal of Personnel Research debuted, rebranded later as Personnel Journal and finally Workforce. Now in our 97th year, we take a look back at what was on the minds of past generations of people managers.
Hold My Beer — And Don’t Give It Back,
JUNE 1965
Preventative care is a popular health care topic in 2019. But Personnel Journal urged the same strategy to deal with “problem drinkers” in the 1960s. Before they become full-blown alcoholics, people are problem drinkers, according to the article.Titled “Industry’s $2-Billion Headache,” it argues that companies have a responsibility to “find ways to save, not merely the billions of dollars lost, but the terrific human waste.” Taking a progressive and nuanced approach, author Richard E. Dutton of the University of South Florida highlights the fact that problem drinking is an illness, not a moral failing, and that it’s treatable. It’s still difficult to treat, as the person with the problem will try to hide it from themselves and others for as long as they can.That way,“he can avoid coming to grips with his problem.” “In many countries, the use of alcoholic beverages is thought of almost as a folkway, such as bowling or square-dancing,” the article stated. It also explored another historical idea about drinking, pointing out the flaws in the problematic belief that “the alcoholic had to reach rock bottom before he could be helped.” Overall, the article explored the facts behind problem drinking and sought to debunk certain myths about alcoholism, as well as explaining to supervisors why they should help problem drinkers before they become alcoholics. The issue also featured an article titled,“The Computer — A Challenge to the Personnel Professional” and a review of the 1964 book “Emotional Health on the World of Work,” which touted the importance of “emotional first aid.” — Andie Burjek
All About the Employees,
SEPTEMBER 2004
The fall of 2004 was a time when organizations saw fit to invest and enhance their employee populations.The malaise of the dot-com bust was past and the pending financial meltdown was an election cycle away. What to do with all this extra money lying around? Cigna Inc. committed $2 million annually to recruiting and developing executive women as a business strategy, not political correctness, according to the story “When Women Rise.” Fifteen years after publication, IT Project Manager Diana McGinnis is the lone woman profiled in the story who remains with Cigna. Disney Corp. took a bit of a different approach to the Magic Kingdom’s people programs, according to the story “Magic for Sale.” It was the dawning of the Disney Institute, where other companies could glean — for a price of course — Disney’s famed people-management techniques. The eclectic employee base at specialty grocer Trader Joe’s also was in the spotlight:“The upbeat employees who wander the aisles, eager to chat about the latest Brie or newest flavor of Workforce Management hummus,” the story noted. September 2004 Mmmmm, Brie. … — Rick Bell m ay / j u n e
2019
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A PUBLICATION OF May/June 2019 | Volume 98, Issue 3 CHIEF EXECUTIVE OFFICER VICE PRESIDENT, RESEARCH AND John R. Taggart ADVISORY SERVICES jrtag@workforce.com Sarah Kimmel PRESIDENT skimmel@workforce.com Kevin A. Simpson RESEARCH MANAGER ksimpson@workforce.com Tim Harnett VICE PRESIDENT, tharnett@workforce.com GROUP PUBLISHER Clifford Capone DATA SCIENTIST ccapone@workforce.com Grey Litaker glitaker@workforce.com VICE PRESIDENT, EDITOR IN CHIEF VIDEO AND MULTIMEDIA Mike Prokopeak PRODUCER mikep@workforce.com Andrew Kennedy Lewis EDITORIAL DIRECTOR Rick Bell rbell@workforce.com MANAGING EDITOR Ashley St. John astjohn@workforce.com ASSOCIATE EDITORS Andie Burjek aburjek@workforce.com
alewis@workforce.com MEDIA & PRODUCTION MANAGER Ashley Flora aflora@workforce.com VICE PRESIDENT, EVENTS Trey Smith tsmith@workforce.com
MARKETING DIRECTOR Greg Miller gmiller@workforce.com MARKETING SPECIALIST Kristen Britt kbritt@workforce.com REGIONAL SALES MANAGERS Derek Graham dgraham@workforce.com Daniella Weinberg dweinberg@workforce.com
CONTRIBUTING WRITERS Jennifer Benz Carol Brzozowski Marc Coleman Kris Dunn Sarah Fister Gale Tim K. Garrett Jon Hyman Patty Kujawa Rita Pyrillis Mary-Clare Race Daniel Saeedi Rachel L. Schaller
FREE, LIVE, WEBINARS.
DIRECTOR, BUSINESS DEVELOPMENT Kevin Fields kfields@workforce.com DIGITAL & AUDIENCE INSIGHTS MANAGER Lauren Wilbur lwilbur@workforce.com
DIGITAL COORDINATOR Steven Diemand EVENTS CONTENT EDITOR sdiemand@workforce.com Malaz Elsheikh ASSISTANT MANAGING AUDIENCE INSIGHTS melsheikh@workforce.com EDITOR COORDINATOR Christopher Magnus WEBCAST MANAGER Micaela Martinez cmagnus@workforce.com Alec O’Dell mmartinez@workforce.com EDITORIAL ART DIRECTOR aodell@workforce.com LIST MANAGER Theresa Stoodley EVENTS GRAPHIC Mike Rovello tstoodley@workforce.com DESIGNER hcmlistrentals@infogroup.com Latonya Hampton EDITORIAL ASSOCIATES BUSINESS lhampton@workforce.com Eva Mick ADMINISTRATIVE emick@workforce.com BUSINESS MANAGER MANAGER Bethany Tomasian Vince Czarnowski Melanie Lee btomasian@workforce.com vince@workforce.com mlee@workforce.com
WORKFORCE EDITORIAL ADVISORY BOARD
CHECK OUT WHAT YOU’VE MISSED! APRIL17 How to Upskill your Workforce for the Digital Future
APRIL 23 Employee Experience Breakthroughs – The HR Technology Shift
Arie Ball, Vice President, Sourcing and Talent Acquisition, Sodexo Angela Bailey, Associate Director and Chief Human Capital Officer, U.S. Office of Personnel Management Kris Dunn, Chief Human Resources Officer, Kinetix, and Founder, Fistful of Talent and HR Capitalist Curtis Gray, Senior Vice President, Human Resources and Administration, BAE Systems Jil Greene, Vice President, Human Resources and Community Relations, Harrah’s New Orleans
Available live on the air date and on-demand for one year after unless otherwise specified. Check them out today and keep the education going! www.workforce.com/wf-events/
Ted Hoff, Human Resources Vice President, Global Sales and Sales Incentives, IBM Tracy Kofski, Vice President, Compensation and Benefits, General Mills Jon Hyman, Partner, Meyers, Roman, Friedberg & Lewis Jim McDermid, Vice President, Human Resources, Cardiac and Vascular Group, Medtronic Randall Moon, Vice President, International HR, Benefits and HRIS, Lowe’s Cos. Dan Satterthwaite, Head of Human Resources, DreamWorks
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Workforce (ISSN 2331-2793) is published bi-monthly by MediaTec Publishing Inc., 150 N. Michigan Ave., Suite 550, Chicago IL 60601. Periodicals postage paid at Chicago, IL and additional mailing offices. POSTMASTER: Send address changes to Workforce, P.O. Box 8712 Lowell, MA 01853. Subscriptions are free to qualified professionals within the US and Canada. Digital free subscriptions are available worldwide. Nonqualified paid subscriptions are available at the subscription price of $199 for 6 issues. All countries outside the US and Canada must be prepaid in US funds with an additional $33 postage surcharge. Single price copy is $29.99 Workforce and Workforce.com are the trademarks of MediaTec Publishing Inc. Copyright © 2019, MediaTec Publishing Inc. ALL RIGHTS RESERVED. Reproduction of material published in Workforce is forbidden without permission. Printed by: Quad/Graphics, Sussex, WI
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Human Capital Media is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit www.shrmcertification.org.
CONTENTS
ON THE COVER WORKFORCE 100: THE BEST HR PRACTICES
Southwest’s people practices puts it atop year six of our list recognizing the best in HR. COVER PHOTO BY STEWART COHEN
2019
SECTOR REPORT
28 FEATURES
44 REWARDS & RECOGNITION PROVIDERS
24 THE WORKFORCE 100
32 CULTURE IS KING
46 EAP PROVIDERS
28 FLYING TO THE TOP
40 TOXIC ISLANDS
There seems to be something for every employee among the voluntary benefits offerings. Companies want proof that employee assistance programs add value — and vendors are starting to respond.
8
Workƒorce | w o r k f o r c e . c o m
Find out which companies made the list in the sixth annual Workforce 100.
The ups and downs of people management are becoming apparent on the Workforce 100.
The annual Workforce 100 list reveals the importance of best practices in people management in developing culture. Bridging the sometimes difficult relationships between supervisor and report is well worth the effort. m ay / j u n e
2019
Performance Plateau
Metric Mountains
Harassment Harbor
Opaque Forest
MaiWay Hwy.
Bulli
Bosston
Bulli International Airport
nB Buyi
Turnover Temple
Bias Blv
ea c
d.
Dysfunctional Leaders INSIDE THE WORKFORCE
h
Buddi
Disen gage d Dri
ve
Poor nce Performa Point
ON THE WEB SPEAK UP!
The Workforce online community provides you with virtual meeting places to chat about issues and trends affecting you and your workplace. LIKE US:
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workforce.com/facebookpage
FOLLOW US:
workforce.com/linkedingroup
BY AUTHOR
WATCH US: workforce.com/youtubechannel
4
YOUR FORCE
When HR helps companies succeed.
F
14 WORK IN PROGRESS
Meet Gandhi,The Mentor and The Judge.
19 BENEFITS BEAT
Benefits changes are hard — even for a team of benefits experts.
22 THE PRACTICAL EMPLOYER
Securing your passwords goes a long way toward cybersecurity.
50 THE LAST WORD
History offers a lesson for #fixitSHRM.
m ay / j u n e
2019
t n e m n 40 o r i v n E e Permissiv Dr TRENDING ults Res
of Church ity m r Confo
10 TERMINATING EMPLOYEES
Workplace shootings prompt reconsideration of procedures.
IS KIN
irst.FOR YOUR BENEFIT oC Remainder. ul
11 PEOPLE MOVES AND BY THE NUMBERSKegerator
Br
COLUMNS
32
ive
workforce.com/twitteraccount
JOIN THE GROUP:
CULTUR trait
Silo S
16 SECURING BENEFITS
tu r
A lack of cybersecurity surrounding employee retirement plans troubles benefits leaders.
eB
17 CRUMBLING COVERAGE
There are fewer uninsured Americans since the ACA’s passage but more are underinsured.
17 ROAD WARRIOR WOES
Business travel may be exciting, but those on the road should be mindful of their health away from home.
18 CAREGIVING CONCERNS
More employers are offering paid leave for caregivers to attract millennial-aged employees.
eac
h
Covenew Waste Oates-Forney Management CHRO; diversity.
12 Q&A
Todd Carlisle,VP of people at beauty company Ipsy.
12 GOODBYE, GLOBOFORCE
Globoforce celebrates 20 years by renaming itself Workhuman.
LEGAL
20 SOCIAL STUDIES
Considering the legalities of socially conscious policies.
21 LEGAL BRIEFINGS
FMLA; workplace stalkers.
w o r k f o r c e . c o m | Workƒorce
9
TRENDING
Reevaluating Termination Policies Following Workplace Shooting Companies are urged to reconsider their procedures when making changes to staff. By Carol Brzozowski uman resources professionals are as- What can be done to solve the problem?” sessing termination procedures folSummarize the employee’s comments. lowing the Feb. 15 workplace shootings at “In a crisis, a person feels humiliated the Henry Pratt Co. manufacturing plant and wants respect and attention,” he said. in Aurora, Illinois. “Focus on areas of agreement.” Michelle Lee, HR director for the Ask an upset employee calmly and Wynright Corp. in Elk Grove, Illinois, firmly to lower their voice and state, noted, “While we review and evaluate “There will be no disruptions here. Please our policies on a regular basis, this situa- be patient so I can understand what you tion emphasizes the importance of pro- need and try to help you,” Krugel added. tecting our employees. We are going to In continued disruption, tell the indipartner more with local law enforcement vidual they can be disciplined or proseto ensure they understand the make-up cuted, state that the discussion is over, of our facilities and employee population. and ask them to please leave or the poIn some cases, we may have them on lice will be summoned, Krugel said. premises for risky terminations.” If the individual seems dangerous, find The shooting by a 15-year employee a quiet, safe but not isolated place to talk. being terminated that day killed five em“Maintain a safe distance, do not turn “If the situation escalates, find a way to ployees, including the HR director and your back,” said Krugel. “Leave the door excuse yourself. Say, ‘You’ve raised some an HR intern on his first day on the job, open or open a closed door. Sit near it.” tough questions. I’ll consult my superviand wounded five police officers. Ensure a co-worker is near to help if sor to see what we can do.’ ” According to federal government sta- needed. Who is present at a termination meettistics, there were 458 workplace homiUsing a calm, non-confrontational ap- ing depends on the situation. cides in 2017, of which 351 were com- proach, allow the person to describe the HR directors set a neutral and consismitted with a gun. problem. tent tone, deflect high emotions and enMelissa Boyce, an attorney and legal sure company procedures are followed to editor for XpertHR, said employers help ensure others’ safety and maintain should review what they can and cannot the security of confidential information, do to lawfully restrict employees’ weapLee said. on possession on workplace property. The Aurora case also was influenced Virtually all workplace shootings fit by labor union representation, said Kruthe category of targeted violence, said gel, adding there are laws and rules that Randy Van Dyne, a consultant for the apply regarding the National Labor ReUniversity of Findlay’s All Hazards Trainlations Act and the plant’s collective baring Center in Ohio, which offers workgaining agreement. place violence prevention programs. At Lee’s company Wynright Corp., The shooter’s main motivation is to managers and HR role-play before terget even with a person or organization mination meetings to ensure they are for perceived injustices, said Van Dyne. Ensure the employee’s hands are on fair, consistent and concise, said Lee. Communication with volatile em- the table, said Van Dyne. Supportive measures might include ofployees is key, said Charles Krugel, a Avoid touching the individual to re- fering outplacement services, résumé Chicago-based management-side labor move them from the area; a gentle push writing and if appropriate, a letter of refand employment lawyer. or holding their arm can be misinter- erence. When no threats are present, respond preted as assault by an agitated individuLee keeps terminations brief and quietly and calmly. Don’t take the em- al who may respond with violence, schedules them at the day’s end when ployee’s behavior personally. Asking Krugel said. fewer employees are on site to minimize questions respectfully demonstrates that “Use a prearranged distress signal to the employee’s embarrassment. aggression isn’t necessary, he said. have another staff member alert a super“Don’t have anyone near the terminat“An apology may calm the person and visor and/or police,” said Krugel. “If you ed employee they may want to get even encourage cooperation,” Krugel added. fear a violent response, do not mention with,” said Van Dyne. “Wish them best “Say, ‘I’m sorry to hear this happened. discipline or the police. and get them on their way.”
H
ACCORDING TO FEDERAL GOVERNMENT STATISTICS, THERE WERE 458 WORKPLACE HOMICIDES IN 2017.
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Workƒorce | w o r k f o r c e . c o m
m ay / j u n e
2019
TRENDING
PEOPLE SILVANA BATTAGLIA Health care company AmerisourceBergen named Silvana Battaglia as executive vice president and chief human resources officer. Battaglia will be responsible for leading the global human resources department. Battaglia has more than two decades of experience running international HR organizations for Fortune 500 companies, helping shape workforce planning and more. ANGELA BRETZ Insurance and financial services company Nationwide named Angela Bretz as chief diversity officer. A career Nationwide employee, Bretz will oversee the inclusion and diversity office, which serves as a critical function of Nationwide’s business, partnering with senior leadership to foster an environment that aligns with the strategic impact and importance of the diversity and inclusion work at the company. TAMLA OATES-FORNEY Waste Management named Tamla Oates-Forney as senior vice president and chief human resources officer. Oates-Forney is responsible for all aspects of the company’s HR functions including leadership development and succession planning, HR operations, employee relations, labor relations, HR information systems, compensation, benefits, L&D and talent acquisition.
By the Numbers
moves
SHAWNA McNAMEE Mercedes-Benz Financial Services USA named Shawna McNamee as director of human resources and administrative services for the Americas region. McNamee joined the company in 2015 as director of HR and administrative services for Mercedes-Benz Financial Services Canada. Complementary to this role, McNamee is now a member of Daimler Financial Services Americas’ Operations Committee and the HR Global Leadership Team. PAMELA PURYEAR Medical devices company Zimmer Biomet named Pamela Puryear as senior vice president, chief human resources officer. Puryear, who most recently served as senior VP and chief talent officer at Pfizer, will report directly to Zimmer Biomet President and CEO Bryan Hanson. GREG TILL Providence St. Joseph Health named Greg Till chief people officer. Till will assume leadership of the HR department, reporting directly to Chief Administrative Officer Debra A. Canales. Since Till joined Providence in 2014, he has partnered with regional, clinical, and administrative leadership to improve the employee experience and refine hiring processes.
To be considered for People Moves, email a brief announcement and a high-resolution color photo to editors@workforce.com. Include People Moves in the subject line. m ay / j u n e
2019
compiled by Grey Litaker and Rick Bell
Diversity at Work Breaking down the diversity and inclusion numbers.
Employed by Gender Management occupations
46.9%
53.1%
Total employed
40.0%
60.0%
Employed by Race/Ethnicity White
Black
Asian
Latino
Management occupations
7.6% 5.9% 10.3% 83.9%
Total employed
6.3% 78.0%
12.3%
17.3%
Chief Executives Men
Women
73.7%
72.1%
72.7%
72.0%
73.1%
26.3%
27.9%
27.3%
28.0%
26.9%
2014
2015
2016
2017
2018
22.10% 77.90%
12.8% 6.3% 10.2% 78.1%
HR managers
Men
Women
HR managers by race
White Asian
Black Latino
Note: Totals for race/ethnicities do not equal 100 percent because data are not presented for all races. Hispanic or Latino persons may be of any race. Source: Bureau of Labor Statistics prepared by Talent Tracker data scientists.
w o r k f o r c e10 . c o m | Workƒorce 11 w o r k f o r c e . c o m | Workƒorce
TRENDING
Workhuman Is Born By Bethany Tomasian
AI’S GROWING ROLE IN HR By Bethany Tomasian Todd Carlisle is vice president of people at Todd Carlisle, Ipsy Ipsy, a beauty company based in San Mateo, California. A former HR director at Twitter and Google, Carlisle says “Ipsy” is a play on the Latin word “Ipse,” which means “self.” Workforce Editorial Associate Bethany Tomasian recently caught up with Carlisle. Workforce: How does HR within a startup differ from more established companies? Todd Carlisle: There are a lot of differences. The first is that you are forced to become a generalist really fast. At more established companies, you have an immigrations team, benefits team, an analytics team or a diversity team. At a smaller company there might be five of you and all five of you have to learn how to do all of those things. I quickly learned that some of the stuff that I’ve done well in the past were fine but there are all these other parts of HR that needed attention. At a startup, there’s no one to turn around and pass the ball to. You have to do it. Another difference is that whatever you’re offering to employees, even at a small start-up, you’re still going to be compared to the big companies. Since Ipsy is located in Silicon Valley, we’re compared to big tech companies.
Workforce: What is the promise of AI for recruitment? Carlisle: I think that there is a ton of promise for AI during that initial screening process. After that though, I think the humans need to take over because there are skills that recruiters have that requires them to actually talk to a candidate. There are a lot of complicated interactions that make amazing recruiters worth their weight in gold.
Workforce: Along with neutralizing gender-specific language, how can an automated HR help solve diversity barriers? Carlisle: Aside from the recruitment stage, there is a lot that has to do with compensation. There is still a gender pay gap. I’ve never talked to a single person who has been OK with the pay gap. We have total pay equity and total promotional equity, but I wish there was a tool that would suggest that I take a closer look at employees where the only difference in their pay is gender. Same thing for recruiting. I wish that there was a little bell that went off if the pipeline for certain roles had too many dudes in it.
Workforce: What have been the successes in the workplace thanks to data analytics? Carlisle: Compensation is one. I think a problem HR always faces when doing compensation is worrying if someone is going to leave. HR might give someone more money if they are worried about that or perhaps HR believes an employee isn’t being compensated enough. Although compensation seems like an easy lever to pull, it’s an expensive lever. Having that data handy always helps to drive that conversation and we can look at all the other factors that contribute to attrition risks.
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Workƒorce | w o r k f o r c e . c o m
A
s a longtime employee rewards and recognition solutions company celebrates its 20th anniversary this year, it marks another milestone as co-founder and CEO Eric Mosley announced that Globoforce rebranded itself as Workhuman. Headquartered in Framingham, Massachusetts, and Dublin, Ireland, Workhuman also is the name of Globoforce’s annual conference. “This evolution acknowledges both the traction and effectiveness of our Workhuman Cloud platform, and the demand from progressive global organizations who want to motivate and empower their people to do the best work of their lives,” Mosley said in a February press statement. Some 4 million people in more than 160 countries access Workhuman Cloud, according to the release. In December 2017, Globoforce named veteran human resources leader Steve Pemberton as its CHRO. Pemberton, the former chief diversity officer for Walgreens Boots Alliance, the well-being enterprise of the drugstore giant, was brought on to work with Globoforce HR leaders and senior management executives worldwide to help them create relationships with their employees so they feel recognized, respected and appreciated, according to a statement from the company. Pemberton also was assigned to manage Globoforce’s Workhuman movement. Companies including JetBlue, the Hershey Co. and Procter & Gamble Co. utilize Workhuman’s recognition programs, according to the annual Workforce magazine Hot List of Rewards and Recognition Providers. Along with a new name,Workhuman also announced its newly expanded $4.5 million headquarters expansion in Dublin along with the creation of 150 new jobs, the press release stated. The new roles are expected to be filled over the next three years in HR, technology, finance, product, e-commerce and operations. The company currently employs more than 500 people globally. m ay / j u n e
2019
TRENDING
The Importance of Happiness at Work By Marc Coleman
L
ast year, members of our HR community called me with common feedback that they were meeting so many people who are unhappy at work and life. Any research you choose to look at for the past 10 years averages nearly three-quarters of people are looking for jobs and many of them are unhappy with their work. Mo Gawdat, the founder of onebillionhappy. org and former chief business officer at Google X, focuses on the relation between innovation and happiness. After losing his son Ali, he made it his personal mission to help 1 billion people become happier in all aspects of their life. I saw him speak last year and after he tells the room it is all right to be happy at work, Mo’s speech brought tears to thousands of attendees. I agree wholeheartedly with Mo and my own belief is that we need to humanize, look ourselves in the mirror and be happy again at work and at home.We spend a substantial amount of our lives at work and I believe our happiness is impacted by how we feel in the workplace.This process of pursuing happiness highly resonated with me and the important role that HR professionals play in it. Did you know that 65 percent of startups fail because the relationship between the co-founders also fails? This is same percentage for the top 10 countries with divorce rate worldwide. I think we can draw a correlation between the two: More relationships in the world fail than succeed. If you haven’t heard of Esther Perel yet, be sure to catch one of her podcasts.A Belgium-born psychotherapist who now lives in NewYork, Esther helped change the lives of millions of couples. She is not afraid to tell people to “shut it!” and is working to unleash the chains of workplace relationships where jealousy, betrayal and bitterness can sabotage a business as much as a marriage. We’re especially seeing this in HR technology. Josh Bersin, the world’s leading analyst on the future of work, highlighted the move from automation to productivity in organizations over the past two years. In the context of the digital revolution, Esther blames our devices for causing all sorts of new vices in the workplace. Esther feels that digital communication is damaging, and because 2D communication deprives us of our senses, the level of distortion between Slack or email messaging and face-to-face to voice communication is massive. Arianna Huffington echos this and encourages everyone to start introducing her Thrive Global model in their lives to disconnect from technology and reconnect more with life. So I ask you, how different can our world and workplaces be in five to 10 years’ time if we start making work relationships better and innovate to support this ideology? I ask everyone to rethink their happiness at home and in the workplace, and share their thoughts on how we’re going to change the future of work for the better. Marc Coleman is founder and CEO of Unleash. This content was developed in partnership with Unleash America. To comment, email editors@workforce.com.
m ay / j u n e
2019
A Sprint Into Employee Communications By Rick Bell
S
ome say you have to crawl before you can walk. To that we say, let’s just sprint. Workforce is in the planning stages of our inaugural content sprint that will encompass roughly eight weeks over the course of the months of May and June. We are labeling this content sprint as Workforce Focus.The theme of our first-ever content sprint, errr, Workforce Focus, is a topic that seems so simple yet confounds and confuses even the best, most highly progressive workplace cultures. The topic? Employee communications. Indeed, it’s a vast area of managing a workforce, and it’s arguably the most vital and crucial point of getting things done. Think about it:We all use email to communicate with a colleague across the aisle or halfway around the globe. And there are any number of communications tools at our disposal, from Slack to Skype to Flowdock. We update our budgets in Google Sheets and log our documents in Dropbox. We send flurries of text messages, and there are now workplace policies that govern the use of emojis and avatars to communicate with one another. Some of us still use that little plastic object on our desk with 12 buttons. You know, the landline. In other words, we have more options and tools to communicate than ever.Yet, efficient employee communication still vexes us. Our Workforce Focus on Employee Communications will touch on a variety of topics through multiple online platforms. Through fresh and archived content the Workforce editorial team will explore such crucial topics as internal communications, communicating across generations, crisis communications and effective employee benefits communication techniques, authored by our Benefits Beat columnist and benefits expert Jennifer Benz. Want some basic, how-to content? There will be an employee-communications road map; a how-to on writing an effective communications policy in a digital workplace; even a sample communications policy. The Workforce “How-to” video series will profile communications with remote employees, as well as ways to enhance conference calls. And there’s a Q&A with communications expert and noted author of the new book, “Can You Hear Me,” Nick Morgan. To experience all of this timely, relevant content and boost your organization’s ability to communicate, watch for our newsletter takeovers and go to Workforce.com/ communicationsfocus. So please join us for the inaugural sprint into communications.We’ll set an easy pace. w o r k f o r c e . c o m | Workƒorce 13
TRENDING
MEET GANDHI, THE MENTOR AND THE JUDGE By Kris Dunn |
Y
Wo r k i n P r o g r e s s
ou can’t talk about companies with great HR without talking about the HR leader in charge. Some companies are blessed with incredible market position, strong economic advantages and visionary founders. Within these rare organizations, it’s hard for culture and progressive people practices not to thrive. Then there’s everybody else. If your company exists in normal circumstances, how strong your HR team is and the way it is viewed typically falls on your HR leader, their match for your company and ability to build effective people practices. I’ve spent the past few years studying the ability of HR pros at all levels to innovate, drive change and add true value, and my book on the topic — “The 9 Faces of HR” — publishes this June. Based on my research, I believe there are three types of HR leaders in the world today, segmented by traits that drive their distinct and unique worldviews. Here’s a rundown of the three HR leader personas I see in today’s HR world, named in a way that will allow you to quickly identify them: 1. Gandhi. Gandhi is an HR leader persona who sits at the top of the world of HR. This profile represents senior-level HR leaders with maximum ability to innovate, drive change and add value in their organizations. My research shows less than 1 percent of the HR world fits into this persona. Gandhis in the world of HR are rare for good reason. They are routinely viewed as elite HR creators and they are good at incubating culture inside organizations. HR teams reporting to a Gandhi respect them as visionary but at times wish they were more connected to the day-to-day work. Gandhis are highly curious about the world around them, are better marketers than their senior-level HR peers and at their core, may not view themselves as HR pros. HR leaders matching the Gandhi persona are the most likely to leave the industry based on other interests, as well as distaste for some of the mundane components of HR, like employee relations and benefits. 2. The Mentor. If Gandhi sounds too removed from day-to-day HR work, you might welcome working for The Mentor, who is more than a supportive HR leader or a shoulder to cry on. The Mentor is a senior-level HR leader with midrange ability to innovate, drive change and add val-
ue.This midrange ability to innovate is important, because it means she’s comfortable with a wide range of direct reports and can maximize results with dramatically different teams. HR leaders fitting The Mentor category will figure out what makes you tick and develop a personal coaching model for you, and will encourage and expect you to chase big wins. The Mentor will provide face time with the most important people in the organization and just as importantly will protect you from those same individuals to give you space you need to do great work. True matches to The Mentor persona care how you feel, but if you’re not extremely talented, they care much less. They’re not here to raise children. They are here to win. That’s why they’re leading your HR function. 3. The Judge. A senior-level HR pro with low ability/ willingness to innovate, drive change or add incremental value, The Judge has a simple mandate: Enforce rules and limit risk. The Judge didn’t make it to the top by greenlighting a bunch of innovative stuff and watching half of it fail. This person rose to the top the old-fashioned way: respecting the command and control roots of HR, delivering to the manageable expectations of peers and being an absolute master of the political game inside the company. Based on, “Know your role and shut your mouth,” The Judge is often a talented HR leader but views “vision” as something that’s best left to marketing.This person is present to manage the ground game of HR, ensuring base services are delivered, lawsuits are minimized (and won when they happen) and the team doesn’t threaten the authority of the leaders/managers of the client group they serve. What’s the right HR leader persona that causes great HR to be great inside a company? As you might expect, the answer is complicated.While The Mentor profile has the most capacity to grow dramatically different types of HR pros to their fullest potential, Gandhi and The Judge may be a better fit to lead an HR team inside specific types of companies and industries. Great HR can grow from any of these types of senior leaders. Know who’s leading your HR function to maximize your career.
I BELIEVE THERE ARE THREE TYPES OF HR LEADERS IN THE WORLD TODAY, SEGMENTED BY TRAITS THAT DRIVE THEIR DISTINCT AND UNIQUE WORLDVIEWS.
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Kris Dunn, the chief human resources officer at Kinetix, is a Workforce contributing editor. To comment, email editors@workforce.com.
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Transform your people and your business will follow. It’s your product innovators, your customer-facers and your culture-makers.These frontline people leaders now manage 80% of your workforce. Give them the coaching and immersive learning they need to thrive and drive your business forward.
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Cybersecurity Retirement Risks Trouble Benefits Leaders Preparedness varies between sectors due to ability to embrace industry evaluation standards. By Patty Kujawa
T
he $5 trillion in retirement plans have become a “tempting target” for hackers to access sensitive information held by plan providers in the industry, so two legislators asked the Government Accountability Office to examine data protections, processes and procedures within the private retirement system. U.S. Sen. Patty Murray, D-Washington, and U.S. Rep. Robert C.“Bobby” Scott, D-Virginia., sent the letter in February, saying that cybersecurity protections are ill-defined, especially when it comes to what needs to be done in the event of a data breach. The legislators asked the GAO to examine 10 pointed questions around the safety of the private retirement system. “It is important that workers and retirees know their savings are in fact safe, and that a cyberattack will not throw the retirement they have spent years working and planning for into jeopardy,” the letter said. While there is no hard data on retirement-savings breaches, and organizations remain tight-lipped to minimize exposure to cybersecurity risks, it appears to be a growing threat to companies large and small that offer retirement plans. The private sector hasn’t waited for the federal government Currently there is no comprehensive national law govern- to come up with cybersecurity standards for the industry. The ing cybersecurity in the private retirement sector, a December SPARK Institute, which stands for the Society of Professional working paper published by the Pension Research Council Asset-Managers and Recordkeepers, created the Industry Best reported. The intent of the paper was to put into context the Practice Data Security Reporting standards in September 2017. challenges faced by the industry today, said Ben Taylor, senior With this paper, SPARK established 16 data security control vice president at Callan LLC and one of the four authors of objectives that service providers can use as a communication the paper. tool to show their level of cybersecurity sophistication. Providing information to plan sponsors in the world of cybersecurity can be complicated for service providers, said Tim WHILE THERE IS NO HARD DATA ON Rouse, SPARK’s executive director and co-author to the PenRETIREMENT-SAVINGS BREACHES, IT APPEARS TO sion Research Council’s working paper. Plan sponsors want providers to explain how data are protected from breaches. Meanwhile, providers need to keep some level of secrecy to BE A GROWING THREAT TO COMPANIES LARGE protect against being hacked. The SPARK standards created a AND SMALL THAT OFFER RETIREMENT PLANS. base of communication between providers and plan sponsors that uses a third-party auditor to evaluate and then relay to plan In the retirement business, a lot of money and personal infor- sponsors the provider’s level of data protection. mation is at stake. Names, birthdates, addresses, Social Security Rouse said the standards are not meant to guarantee against numbers, bank accounts and other sensitive information are all data breaches. It’s more of a tool for plan sponsors to use when common data points that are transferred between organizations evaluating service providers. and providers. Right now, there is no set framework or standard “If a provider’s [security processes] information gets distributfor how this information should be protected,Taylor said. ed to a plan sponsor, it’s just as good as becoming public knowl“There is a lot of gray area when it comes to cybersecurity,” edge. It becomes the road map that the bad guys can use to get he added. into someone’s system,” Rouse said. “A third party auditor In fact,Taylor noted that in some cases, it is hard to determine brings flexibility to the system. The hackers don’t know what where a plan sponsor needs to go to report a hack. He added they are up against.” that one client, who didn’t know which law enforcement hanUsing a third-party auditor to evaluate a provider’s level of dled breaches in his area, ended up going to the state highway sophistication has worked well, said Neal Ringquist, executive patrol — the presiding authority for cyberthreats in that state. vice president for Retirement Clearinghouse, an industry ser“It’s a pretty complicated matrix of threat responses,” for plan sponsors to know about, he added. RISKS continued on page 49 16
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FOR YOUR BENEFIT
ACA Wins and Losses
Road Warrior Woes
Uninsured down, underinsured up.
Business travel is exciting but not always healthy.
By Rita Pyrillis
By Andie Burjek
S
ince the passage of the Affordable Care Act in 2010, fewer people are uninsured but the number of underinsured has spiked, especially among people covered by employer-sponsored health plans, according to a recent study. An estimated 44 million people who were insured throughout 2018 did not have adequate coverage because of high out-of-pocket costs and deductibles, up from 29 million in 2010, according to a report by The Commonwealth Fund. The biggest increase in underinsured adults is occurring among those in employer health plans. “What we are seeing is a steady upward trend of higher out-of-pocket costs and deductibles,” said Sara Collins, a co-author of the report. “We are seeing an increase in the size of deductibles relative to income. It’s a trend in employer benefits as employers look for ways to share health care costs. People in the individual market are most likely to be uninsured, but the trend in employer-based plans is distinctive.” The report defines the underinsured as those with out-of-pocket costs that are 10 percent or more than their household income or deductibles that exceed 5 percent of their household income. Fewer people are uninsured since the Affordable Care Act was passed in 2010, but of the 194 million U.S. adults ages 19 to 64 in 2018, about 45 percent lacked adequate coverage, according to the report. “We expected to see a decline in the uninsured but we hadn’t predicted the ongoing steady growth in the number of underinsured,” Collins said. “Much of that growth is among those in employer plans, which are outside of the reach of the ACA.” More than half of Americans under age 65 — about 158 million — get their health insurance through an employer, according to The Commonwealth Fund.The ACA requires large employers to provide affordable coverage, but the requirement amounts to just 60 percent of overall costs. “Employers are at an inflection point where deductibles have risen so far that it’s putting people’s access to health care in jeopardy,” Collins said. “There needs to be some rethinking of employee benefit design. It points to the fact that the real issue that needs to be addressed is the rise in health care costs and that’s going to take a systematic national effort to address.” m ay / j u n e
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L
ong-distance trips may be something to boast about, with wanderlust-driven influencers posting perfectly filtered photos on their social media accounts.Work-sponsored road trips also may sound glamorous but workers should recognize the potential negative impacts of business travel on their health. Frequent business travel is associated with poorer health outcomes, according to “Business Travel and Behavioral and Mental Health,” a 2018 article from the Journal of Occupational and Environmental Medicine. The analysis found that people who traveled more often for work were more likely to smoke, have trouble sleeping and show higher levels of anxiety and depression symptoms.The study concluded that “employers should provide programs to help employees manage stress and maintain health while traveling for work.” Hal F. Rosenbluth, chairman and CEO of New Ocean Health Solutions, at one point hit the road every other week for work. Rosenbluth knows the challenges of regular business travel within the U.S. and abroad. For people who travel overseas, there’s “always the possibility of sickness or geopolitical events that require immediate attention and sometimes evacuation,” he said. Medical and travel security services firm International SOS and medical insurance provider Geo Blue are among the options for these travelers. “I typically use it if I’m traveling to countries where medical care isn’t terrific or I’m out of the city somewhere where there isn’t a lot of care. If something goes wrong, I know I can have a plane or a helicopter get me to where I need to go,” Rosenbluth said. Lengthy international trips may “cause a person to lack focus after arrival” and Rosenbluth recommends travelers delay meetings for 24 hours to recover from the flight and adapt to time changes. Whether someone is traveling domestically or abroad, work-life balance may take a hit. Especially for people with young families, the partner who remains at home with the children may feel overwhelmed, Rosenbluth said, and that communication is important. Business professionals informally polled on LinkedIn by Workforce had several suggestions to stay healthy while traveling for work and how employers can help. • Find quick, healthy grab-and-go options near the hotel to resist the urge to eat fast food. • Join a gym with multiple locations to use the membership while traveling. • Employers can maintain a company culture that stresses positive health behaviors like getting enough sleep and allowing people time to eat. • Reimburse reasonable wellness expenses for fitness classes in travel destinations. Rosenbluth suggests that travelers exercise, which may be difficult if there’s no fitness center or if the destination poses a safety hazard for walks offsite. Business travelers also should be careful about what they eat and should carefully consider food safety. w o r k f o r c e . c o m | Workƒorce
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FOR YOUR BENEFIT
Paid Leave for Caregivers Being Used to Attract Millennials More than just benefits, empathy and understanding are important to younger workers. By Rita Pyrillis
A
s the demand for family friendly benefits grows, employers are responding by offering paid leave to new parents. While that’s good news for families, a rapidly growing segment of the workforce is often overlooked — employees who are caring for an aging parent, an ailing spouse or other loved one. About 40 million people in the U.S. are caring for an adult family member and 60 percent of them are employed, according to a 2015 report by AARP. And an increasing number are stepping into that role at a younger age. About a quarter of all caregivers are millennials ages 18-34, according to AARP’s research. That is why a small but growing number of employers are expanding their family leave policies and offering paid leave to employees caring for a loved one, whether it’s a child, a parent, a spouse, or an in-law or grandparent. “Caregiving comes in all different forms,” said Jen Fisher, managing director of wellbeing at consulting firm Deloitte. “It’s not just about bringing a child into the world. The dynamics of caregiving and the definition of family have changed.” In 2016, Deloitte began offering 16 weeks of paid leave to fulltime employees caring for a family member. Leave can be taken all at once or at a minimum, in three-day increMichael Walsh ments, according to Fisher. Previously, only new parents were eligible for paid leave. “Caregiving for someone who is sick ebbs and flows,” she said. “If you’re caring for an elderly parent at home, one week there’s a lot going and on other days you’re not needed 100 percent. You can build your caregiving needs around that. It’s a really flexible program.” Under the 1993 Family Medical Leave Act, private employers with more than 50 18
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employees must provide 12 weeks of unpaid leave, but some employers are going beyond what’s required in order to attract younger workers. “Caregivers are getting younger,” said Kathleen Kelly, executive director of the Family Caregiver Alliance, a nonprofit research and policy organization that supports caregivers. “There are many more millennials and Gen Xers caring for a parent or grandparent. It’s a byproduct of baby boomers having kids later. Caregiving has changed generationally. Employers need to wake up to this.” More than half of millennial caregivers are the sole provider for an elderly family member, providing an average of 26 hours of care each week — the equivalent of a part-time job, according to a 2018 study by the AARP Public Policy Institute.
MORE THAN HALF OF MILLENNIAL CAREGIVERS ARE THE SOLE PROVIDER FOR AN ELDERLY FAMILY MEMBER, PROVIDING AN AVERAGE OF 26 HOURS OF CARE EACH WEEK. Yet, most do not feel supported at work. They are less likely to tell a supervisor they are caring for a family member or to discuss it with co-workers, the study showed. In addition to providing paid leave, employers need to better understand the challenges that caregivers face, said Kelly. “Issues around children have become more or less accepted, but not with eldercare,” she said.“If you say,‘I have to take my mom to a doctor’s appointment,’ people think, ‘Can’t she do it alone?’ It doesn’t have the same urgency or importance.” According to AARP Public Policy Institute, about 100 major U.S. firms have adopted or expanded paid family leave over the past three years, but only 20 percent
Jen Fisher, Deloitte
made the it available to family caregivers. That is likely to change, according to Candice Sherman, CEO of the Northeast Business Group on Health. “People are living longer, there are gaps in the health care system, employees are more dispersed geographically, so they are caregiving from afar. Large employers are aware,” she said The vast majority of employers surveyed by the Northeast Business Group on Health in 2017 agree that caregiving will become an increasingly important issue over the next five years, and nearly half cite caregiving as one of their top 10 priorities. “You’re seeing companies expand paid leave but they are also looking for ways to support caregivers and that creates an opportunity for companies like ours,” said Michael Walsh, CEO of Cariloop, a platform that enables employees to access caregiving resources. “With our services, you’re not just giving people time off but giving them the tools they need to figure out things they don’t understand.We didn’t feel that a company’s health plan or EAP had the coverage needed for the longterm or took into account all the barriers involved with caregiving.” Walsh, who launched the Texas-based company in 2013, said that younger workers are driving the interest in support for caregivers in the workplace. “A major factor is a wave of millennialism, which is about feeling supported and making sure that your company empathizes with what’s important to you,” he said. “We can’t just check the boxes.We have to go further and send a message that we care about you and your family.” m ay / j u n e
2019
FOR YOUR BENEFIT
PERSONAL LESSONS IN COMMUNICATING CHANGE By Jennifer Benz |
A
Benefits Beat
t the start of the year, I took a personal crash course in navigating organizational change. Despite consulting on issues around change management for most of my career, I learned it’s a different animal when you’re right in the middle of it yourself. Going through a big change reinforced a lot of what I know — and it gave me some new insights. The source of all this change? My company, Benz Communications, joined forces with The Segal Group on Jan. 1. By absolutely all measures, this was — and is — an awesome step for our team, our business and our clients. Segal is an 80-year-old privately held employee benefits and HR consulting firm that works with an amazing group of clients around the country. Our communications team doubled from 30 to 60 people, and we are so proud to be part of an organization with Segal’s history, values, people and clients. One of my favorite comments from a member of my team was “I feel like I just got an even better job — along with 30 of my best friends.” Still, all the good stuff doesn’t mean change isn’t hard. One of the things I learned is that it takes people a while to digest information when they are caught off guard. Fortunately, we were able to share our news in person with the Benz team during our annual end-of-year celebration in November. But they were expecting to enjoy the time with colleagues and rejoice in all the great work we created during the year; no one was expecting me to announce a huge organizational change like this. That kind of surprise, no matter how good the news is, creates anxiety. One of my team members said, “I know your lips were moving, but I didn’t absorb a thing you said.” It highlights an important lesson for corporate communicators, reinforcing why you have to give people time to absorb information and why you need to say things many times and in multiple ways. It was also a reminder that leaders and employees experience change in entirely different ways. When I talk to clients about this, I tell them to remember that leaders have more context, more insight, more control and more notice. Those factors make it hard to put themselves in employees’ shoes. Even so, I was surprised by how big a blind spot I had in predicting my team’s concerns. Fortunately, people felt comfortable telling me exactly what they and their col-
leagues needed (it helps to have several communications consultants among them!). But over and over, I was disappointed in myself for not being able to anticipate their concerns on my own. One example: Benefits changes are hard — even for a team of benefits experts. We didn’t have much time to move the Benz team onto Segal’s systems and benefits. It’s hard getting up to speed on new programs, understanding how they compare to the old ones and making decisions — especially when you have so many other questions and concerns bubbling around. And present discomfort obscures long-term gain. Our benefits package at Segal is far richer than what we had as a small business — we have a 401(k) match and a pension plan! But when your prescription ID card doesn’t arrive and you’re at the pharmacy with a sick kiddo, you’re not thinking about your pension plan. And that was a big lesson for me. In times of change, not only do you need to communicate more, but you also need to thoughtfully engineer the small stuff. Go above and beyond to make sure there are no kinks in the systems or information flow. I recently caught up with a longtime friend and client who works for a large global corporation. She is immersed in M&A all year, because their business strategy relies so much on acquiring new companies. She said they have perfected almost everything about acquiring new companies — except delivering medical plan ID cards.That’s still a huge pain point for new employees and the one thing that continues to be a disconnect. It’s the small stuff. I hope these personal anecdotes will help you navigate your next big change. While they are the lessons learned, we did plenty of things the right way, too. Most importantly, we started from a place of trust and transparency, built from an employee-centered culture. And we joined an organization that shares our core values and also prioritizes doing the right thing for employees. Those are the best things any organization can have to help navigate the inevitable changes ahead.
IT TAKES PEOPLE A WHILE TO DIGEST INFORMATION WHEN THEY ARE CAUGHT OFF GUARD. NO MATTER HOW GOOD THE NEWS IS, SURPRISE CREATES ANXIETY.
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Jennifer Benz leads Segal Benz, a national leader in HR and employee benefits communications. She was honored as one of Workforce’s “Game Changers” in 2013. To comment, email editors@workforce.com.
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Legal The Precarious Legalities of Socially Conscious Workplace Policies By Tim K. Garrett
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ore and more employers are adopting socially conscious practices that impact the manner in which the employer operates. My firm’s headquarters are in a Certified LEED “green building.” Generally, companies in such buildings commit to reducing the use of plasticware. In July 2018, American Airlines and Starbucks announced they will no longer use plastic straws. But, how far can and should these practices go? Could a company in a Certified LEED green building refuse a reimbursement request from an employee who had a business meal at a restaurant that uses only plasticware? Could American Airlines or Starbucks discipline an employee who was caught using a plastic straw at work? Likely, yes. Title VII of the Civil Rights Act protects employees from discrimination on the basis of race, color, religion, sex and national origin. The American with Disabilities Act protects employees with disabilities; the Age Discrimination in Employment Act prohibits age discrimination. But there is no employment law protecting an employee’s right to use plastic. Should an employer’s “social consciousness” go that far? While an employer may legally be permitted to influence employee behavior by disciplinary enforcement of the employers’ socially conscious policies, should it do so? Let’s address socially motivated policies that may be legally permissible as well as questions employers should consider when determining whether such policies are good business practices.
Considerations for Employers Shared workspaces provider WeWork recently announced that it is imposing a companywide ban on all meat. As part of the ban, the company announced it will no longer reimburse employees for meals that include red meat, poultry and pork (presumably fish and seafood are OK). Failed startup Juicero reportedly had refused to reimburse the cost of any business meals other than meals at vegan restaurants. What about the employees who see nothing wrong with eating meat? Or with eating at a non-vegan restaurant? There is no law entitling employees to the right to eat meat (or eat non-vegan), so technically these policies are legal. While one could conjure up 20
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some possible “selective enforcement” argument that it is unfair, the practice is not likely unlawful (though in some very few instances it could run afoul of stringent state laws on reimbursing employees who spend their own funds for business purposes).
Do employers make these decisions based on principle or on a market analysis? Are these decisions borne of a desire to cultivate a healthy workplace community by being part of a bigger, socially conscious vision? But are they advisable? Are employers who are implementing these socially conscious policies actually creating a more positive workplace culture? Or, are they inviting cries of hypocrisy from those who think they do not go far enough or cries of unfairness from those who think they go too far? “These policies are easily attacked as hypocritical. WeWork, for example, claims its policy of not reimbursing for meals with meat supports sustainability. But what about the use of plasticware? Or what about car allowances only for electric vehicles? Without a policy on the use of plastic or about gas vehicles, is their sustainability stance pure or merely selective? m ay / j u n e
2019
What of taking this benefit from those who see nothing wrong with meat? Or worse, what about the workplace morale of an employee whose family owns a cattle farm that produces beef? Perhaps that was the only way the family could afford to support themselves or send the children to college, and perhaps the family even supports other meaningful causes with its income from cattle. And, what of our culture’s “no one should tell others what to do” individualism? The professed sustainability purpose, on the one hand, or the professed “inclusiveness” and camaraderie of the workplace environment on the other hand, can only reach so far. Both the purists and those excluded for not having “right” ideas are marginalized.
How Employers Should Move Forward So where does this leave us? Certainly, employers should take into consideration employee rights and employment laws in having socially conscious policies that reach so far as to attempt to impact employee behavior. But the harder question is whether employers should make such attempts. The answer is nuanced, and often the very purposes an employer seeks to serve with these policies have unintended consequences that weaken, rather than strengthen, employee morale or a greater purpose of workplace “culture.” One other point deserves mention. Do employers make these decisions based on principle or on a market analysis? Are these decisions borne of a desire to cultivate a healthy workplace community by being part of a bigger, socially conscious vision? Or, are these market-based decisions borne primarily of a desire to use social consciousness as a marketing tool? For example, what if we learned that WeWork, when first deciding on this policy, had conducted market research predicting that such a decision to adopt a vegetarian stance would enhance customer loyalty and market penetration and consequently increase revenue, and that this research was the primary driver of its decision? Would this socially conscious principle lose its power? A principled decision often sees the bigger vision of work as an attempt to cultivate deeper meaning beyond a cost-benefit economic analysis. Such decisions can have a powerful positive impact on the workplace. But, the market-based approach, the view that we should be socially conscious because it is good for business and a great marketing strategy, can certainly backfire. It is impossible to promote selflessness by touting its selfish benefits. Tim K. Garrett is a member at Bass Berry & Sims PLC in Nashville. He counsels employers on issues related to all aspects of labor and employment law. To comment, email editors@workforce.com.
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Legal Legal Briefings FMLA LEAVE: DESIGNATE EARLY AND OFTEN In Hannah P. v. Coats, the Office of the Director of National Intelligence allowed an analyst to take four weeks of paid sick and personal leave for her depression without notifying her that she was entitled to up to 12 weeks of FMLA leave. The employee returned to work after four weeks and was found not qualified for a permanent position. The court found if the employee could convince a jury she would have structured her leave differently had she received an FMLA notice, then she could prevail at trial on her FMLA claim. The onus is on employers to notify employees when a leave of absence qualifies under FMLA. If an employer fails to notify the employee of FMLA designation, the employee can obtain relief under FMLA if they were prejudiced by the failure to designate. The Wage and Hour Division of the Department of Labor recently issued an opinion letter stating its view that employers may not delay designating paid leave as FMLA leave merely because they provide family and medical leave that is more generous than the FMLA. Hannah P. v. Coats, 916 F.3d 327 (4th Cir. 2019); FMLA2019-1-A. IMPACT: To minimize liability, employers should notify their employees of their FMLA rights whenever an employee takes paid leave for an FMLA-qualifying purpose.
STALKER COSTS COSTCO IN BULK Dawn Suppo was a Costco Wholesale Corp. employee. A customer approached Suppo and asked her personal questions, including where she lived. A few days later, the same customer asked Suppo more questions. In another instance, Suppo noticed that the customer was in a disguise, and watching her from behind an aisle. Suppo complained to her supervisors, but to no avail. Suppo also asked for a closer parking spot in the Costco parking lot, which was denied. The customer encountered Suppo at least 20 more times over the next 13 months, in some instances attempting to touch Suppo, bumping his cart into her, and, in one instance, videotaping her. Suppo was forced to obtain a “no contact order” to restrain the customer. The stalking forced Suppo to take family medical leave to avoid continued encounters with the customer. Eventually, Costco terminated Suppo because her unpaid medical leave had expired. Suppo filed a hostile work environment charge with the EEOC under Title VII. After an investigation, the EEOC filed a lawsuit against Costco on behalf of Suppo. The case proceeded to a jury trial, and the jury ruled in favor of Suppo. On appeal, the U.S. Court of Appeals for the 7th Circuit held that the harassment Suppo faced was “severe and pervasive” under the law, given the significant amount of stalking that took place. The court affirmed the jury’s conclusion that there was a basis for employer liability because the employer’s response to Suppo’s predicament was “unreasonably weak.” EEOC v. Costco Wholesale Corp., 903 F.3d 618 (7th Cir. 2018). IMPACT: Employers should be aware that a hostile work environment can be created by unreasonable behavior on the part of a company’s customers. In the case of stalking, employers should attempt to provide solutions to employees to avoid the stalking and cooperate with police where necessary. Rachel L. Schaller and Daniel Saeedi are attorneys at Taft Stettinius & Hollister LLP. To comment, email editors@workforce.com.
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Legal
The DMV and Cybersecurity Jon Hyman |
I
The Practical Employer
spent way too much of a recent Saturday morning at the local department of motor vehicles. My plates were expiring and I had forgotten to take advantage of online registration. So there I found myself at 10 a.m. waiting in line. To be fair, it was the “express” line, designated for registration renewals only. My experience, however, was less than express, thanks to the patron two spots ahead of me. On her turn, the clerk asked for information stored in some account on her phone. She did not, however, remember the necessary password. She then removed an inchthick flipbook of Post-it notes, each containing a login and password to a different account. I watched her rifle through the stack. Ten minutes of life that I will never regain, with my frustration mirrored on the faces of everyone else in line. One of the top cybersecurity tips is to maintain proper password security. Storing passwords on a notepad or stack of sticky notes does not qualify as secure.What does? • Using passwords with differing types of characters. • Avoiding the most common passwords (like “Pa$Sw0rD”). • Setting a regular schedule to change passwords (although some research shows that most people use near identical passwords when forced to switch). Four issues warrant additional discussion. First, do not reuse the same passwords across multiple accounts. If one account is hacked, you’ve exposed every other account for which you’ve used the same password. Recently, for example, Intuit disclosed that its TurboTax product had suffered just such an attack. The criminal accessed TurboTax user accounts by taking usernames and passwords it had stolen from a non-Intuit source to attempt TurboTax logins. For those with which it was successful, the criminal was able to obtain sensitive tax return information. (If you want to know if one or more of your online accounts has been compromised, check out haveibeenpwned.com.) If you are not going to reuse the same password across multiple accounts, how will you generate and remember hundreds of different and complex passwords? The answer brings us to point number two. Use a password manager. A password manager is an online service that stores all of your passwords (encrypted on their end). All you need to do to unlock the password for any given account is to recall the lone master password you have chosen for your password manager of choice. Passwords are also synced across devices.
The top competitors offer variations on the same service. Compare and contrast pricing, what each offers and pick one.The money you spend on an annual subscription pales exponentially to what you will spend undoing the damage caused by an account compromised by a weak password. The question I get most often regarding password managers? “Aren’t you worried about them being hacked?” Technically yes, but functionally no. At least one has been hacked without the exposure of even a single user password because all of the stored data is highly encrypted. If you are comparing the security of reusing passwords or using different password but storing them in a notebook or sticky-note flipbook versus a password manager, the security choice is clear. Third, check your URLs and only input account information on sites that use HTTPS web encryption. HTTPS provides an encrypted online session between you and whichever site you are visiting. With a nonHTTPS site, everything you send is visible to anyone on the same network. Even safer, use a Virtual Private Network, or VPN, to create a secure channel between your computer and the internet. Finally, use two-factor authentication for any account that offers it. Two-factor authentication, or 2FA, requires a user to input a unique code sent to a device of choice (usually by text message) any time they log in to an account from a new device. 2FA is not foolproof. For example, it does not take much skill for even a low-level cybercriminal to steal a phone number and intercept the code. More complexly, criminals can use social engineering to ape one’s identity and trick a mobile company to send a new SIM card to the attacker, diverting all 2FA text messages to the criminal’s mobile device. Thus, while one should not rely on 2FA as the only method to secure one’s account, it’s added layer of security certainly can’t hurt. No one is immune from being hacked. However, taking a few simple (albeit mildly inconvenient) steps to secure your passwords and accounts will go a long way to mitigating against this very serious and costly risk.
If you are comparing the security of reusing passwords or storing them in a sticky-note flipbook versus a password manager, the security choice is clear.
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Jon Hyman is a partner at Meyers, Roman, Friedberg & Lewis in Cleveland. To comment, email editors@workforce.com. Follow Hyman’s blog at Workforce.com/PracticalEmployer.
m ay / j u n e
2019
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SOUTHWEST AIRLINES
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T-MOBILE
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GOLDMAN SACHS
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SAP SE
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DELOITTE
2019 Southwest Airlines’ ascent to the No. 1 spot a long time coming. Compiled by Workforce editors
C
hange is often a gradual process. As much as most organizations would like to see big results from a new program, initiative or benefit sooner rather than later, it could take time to see the fruits of their labor. Long-term improvements in culture or employee morale may seem daunting, but the patient employer often is rewarded. Now in its sixth year, the Workforce 100 recognizes companies that excelled in human resources over the course of the previous year. To determine which companies make the list, Workforce editors work with researchers from the Human Capital Media Research and Advisory Group, the publication’s research division. The research team created a model to sift through publicly available data on HR performance to separate the best from the rest. To give employees more of a say in the rankings, we asked recruiting and job-review website Glassdoor to provide data on what workers are saying about the companies that made our list. From there, we combined that information with the public data available to create our 2019 Workforce 100 list. Southwest started out unranked in 2014, eventually moved to the middle of the list and made it to the No. 1 spot this year. T-Mobile, Microsoft and Hilton have seen similar trajectories. To explore how they made these gradual improvements, Editorial Associate Bethany Tomasian spoke to HR leaders at several METHODOLOGY of these organizations. To create the Workforce 100 New to the Workranking, the Human Capital force 100 package this year, we collaboratMedia Research and Advied with our research sory Group collected availteam to explore what able public data from a repbest practices comresentative list of established panies can rely on to benchmarking and ranking be the best in human programs in the identified resources. categories. To read more Congratulations to about the methodology, all the companies see Page 31. that made the 2019 Workforce 100 list. 24
Workƒorce | w o r k f o r c e . c o m
Julie Weber, vice president and chief people officer Industry: Airline Dallas Employees: 58,000 Performance Index: 9.2
Liz McAuliffe, executive vice president of human resources Industry: Telecommunications Bellevue, Washington Employees: 52,218 Performance Index: 8.911
Dane Holmes, head of human capital management Industry: Financial services New York Employees: 36,000 Performance Index: 8.756
Stefan Ries, chief human resources officer Industry: Software Walldorf, BadenWuerttemberg, Germany Employees: 96,498 Performance Index: 8.736
Michele Parmelee, global managing principal — talent, brand and communications Industry: Professional services New York Employees: 286,000 Performance Index: 8.728
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6 EY
Industry: Professional services Top Ranking HR Person: Tony Steadman
7 8 9 10 11
Employees: 270,000 London Performance Index: 8.6
14 15 16
In-N-Out Burger
Industry: Restaurants Top Ranking HR Person: Katherine Sauls
Employees: 33,606 Menlo Park, California Performance Index: 8.591
24 Adobe
Employees: 21,000 San Jose, California Performance Index: 7.838
Delta Air Lines Inc.
Employees: 80,000 Atlanta Performance Index: 8.363
25
Employees: 9,000 Mountain View, California Performance Index: 7.799
Microsoft Corp.
Employees: 130,000 Redmond, Washington Performance Index: 8.302
26
Cisco Systems Co.
Employees: 74,200 San Jose, California Performance Index: 8.236
27
Johnson & Johnson
Employees: 135,000 New Brunswick, New Jersey Performance Index: 8.225
28
Employees: 170,000 Industry: Lodging, hospitality McLean, Virginia Top Ranking HR Person: Matthew W. Schuyler Performance Index: 8.224
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HP Inc.
Employees: 53,000 Palo Alto, California Performance Index: 8.219
30
Bain & Co.
Employees: 8,000 Boston Performance Index: 8.216
31
Ultimate Software
Employees: 5,100 Weston, Florida Performance Index: 8.121
32
Power Home Remodeling Employees: 2,461 Industry: Exterior remodeling Chester, Pennslyvania Top Ranking HR Person: Jennifer Carreon-Montes Performance Index: 8.105
33
Industry: Airline Top Ranking HR Person: Joanne Smith Industry: Computer software Top Ranking HR Person: Kathleen Hogan Industry: Technology Top Ranking HR Person: Francine Katsoudas Industry: Pharma, consumer products Top Ranking HR Person: Peter Fasolo
Industry: Technology Top Ranking HR Person: Tracy Keogh Industry: Management consulting Top Ranking HR Person: Russ Hagey Industry: Saas HCM software Top Ranking HR Person: Vivian Maza
Industry: Computer software Top Ranking HR Person: Donna Morris
Intuit Inc.
Industry: Enterprise software Top Ranking HR Person: Laura Fennell
Edward Jones
Employees: 45,000 St. Louis Performance Index: 7.727
McKinsey & Co.
Employees: 30,000 New York Performance Index: 7.726
Navy Federal Credit Union
Employees: 17,000 Vienna, Virginia Performance Index: 7.638
Industry: Financial services Top Ranking HR Person: Kevin Bastein Industry: Management consulting Top Ranking HR Person: Michael Barriere Industry: Financial services Top Ranking HR Person: Angela Culbertson
HubSpot Inc.
Industry: Software development Top Ranking HR Person: Katie Burke
DaVita Inc.
Industry: Health care Top Ranking HR Person: Eric Severson
Humana Inc.
Industry: Health insurance Top Ranking HR Person: Tim Huval
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18
Salesforce.com Inc.
Employees: 32,000 San Francisco Performance Index: 8.016
35
E. & J. Gallo Winery
Employees: 6,500 Modesto, California Performance Index: 8.015
36 Stryker
AbbVie Inc.
Employees: 30,000 North Chicago, Illinois Performance Index: 8.008
37
21 Slalom
Employees: 5,000 Seattle Performance Index: 7.955
38
22
Employees: 67,000 Waltham, Massachusetts Performance Index: 7.858
39 Dell
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Industry: Software Top Ranking HR Person: Cindy Robbins Industry: Winery and distributor Top Ranking HR Person: Michelle Lewis Industry: Biopharmaceutical Top Ranking HR Person: Timothy J. Richmond Industry: Professional services Top Ranking HR Person: Sierra Snyder
Raytheon Co.
Industry: Aerospace and defense Top Ranking HR Person: Randa G. Newsome
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Employees: 74,500 Denver Performance Index: 7.452
St. Jude Children’s Research Hospital Employees: 4,483
Industry: Hospital Top Ranking HR Person: Dana Bottenfield
Employees: 477,000 Chicago Performance Index: 8.025
Industry: Consulting services Top Ranking HR Person: Ellyn Shook
Employees: 1,239 Cambridge, Massachusetts Performance Index: 7.529
Procore Technologies Employees: 1,300 Industry: Construction project management software Carpinteria, California Top Ranking HR Person: Michelle Greer Performance Index: 7.507
17 Accenture
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Employees: 28,000 Irvine, California Performance Index: 7.849
Facebook Inc.
Industry: Social media Top Ranking HR Person: Lori Goler
12 Hilton 13
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Memphis, Tennessee Performance Index: 7.451 Employees: 41,600 Louisville, Kentucky Performance Index: 7.43
Fast Enterprises
Employees: 1,413 Centennial, Colorado Performance Index: 7.424
Enterprise Holdings Inc.
Employees: 100,000 St. Louis Performance Index: 7.416
Industry: Software Top Ranking HR Person: Lindsey Sittko Industry: Private holding Top Ranking HR Person: Shelley Roither Industry: Medical technologies Top Ranking HR Person: Katy Fink
Employees: 33,000 Kalamazoo, Michigan Performance Index: 7.41
Kaiser Permanente
Employees: 213,000 Oakland, California Performance Index: 7.409
Apple Inc.
Employees: 132,000 Cupertino, California Performance Index: 7.399
Industry: Insurance/health care Top Ranking HR Person: Chuck Columbus Industry: Technology Top Ranking HR Person: Deirdre O’Brien Industry: Technology Top Ranking HR Person: Steve Price
Employees: 145,000 Round Rock, Texas Performance Index: 7.36
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40 41 42 43 44 45 46 47 48 49 50 51 52
American Express
Employees: 59,000 New York Performance Index: 7.338
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Capital One
Employees: 47,600 McLean, Virginia Performance Index: 7.337
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Paylocity Corp.
Employees: 2,808 Schaumburg, Illinois Performance Index: 7.329
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Hyatt Hotels Corp.
Employees: 120,000 Chicago Performance Index: 7.321
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JPMorgan Chase & Co.
Employees: 256,105 New York Performance Index: 7.305
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AT&T Inc.
Employees: 268,220 Dallas Performance Index: 7.297
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Industry: Financial services Top Ranking HR Person: Robert Childs Industry: Financial services Top Ranking HR Person: Jory Berson Industry: Payroll software Top Ranking HR Person: Cheryl Johnson Industry: Lodging, hospitality Top Ranking HR Person: Malaika Myers Industry: Financial services Top Ranking HR Person: Robin Leopold Industry: Telecommunications Top Ranking HR Person: William A. Blase Jr.
Morgan Stanley
Industry: Investment bank Top Ranking HR Person: Susan Reid
Employees: 57,000 New York Performance Index: 7.26
64
Northrop Grumman Corp.
Employees: 85,000 Falls Church, Virginia Performance Index: 7.216
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Employees: 37,000 Midland, MIchigan Performance Index: 7.21
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FedEx Corp.
Employees: 450,000 Memphis, Tennessee Performance Index: 7.205
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Booz Allen Hamilton Inc.
Employees: 25,800 McLean, Virginia Performance Index: 7.194
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Brown-Forman Corp.
Employees: 4,700 Louisville, Kentucky Performance Index: 7.157
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Employees: 34,168 Industry: Insurance, banking, financial services San Antonio Top Ranking HR Person: Pat Teague Performance Index: 7.138
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General Motors Co.
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The Dow Chemical Co.
Industry: Chemicals Top Ranking HR Person: Karen S. Carter Industry: Courier Top Ranking HR Person: Judy Edge Industry: Consulting services Top Ranking HR Person: Betty Thompson Industry: Distilled beverage/wines Top Ranking HR Person: Kirsten Hawley
53 USAA 54
Industry: Automotive Top Ranking HR Person: Kim Brycz
55 Google
Industry: Technology Top Ranking HR Person: Eileen Naughton
56 ADP
Industry: HR management software Top Ranking HR Person: Sreeni Kutam
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Employees: 180,000 Detroit Performance Index: 7.137 Employees: 98,771 Mountain View, California Performance Index: 7.135 Employees: 58,000 Roseland, New Jersey Performance Index: 7.11
Visa Inc.
Employees: 15,000 Foster City, California Performance Index: 7.083
Abbott Laboratories
Employees: 103,000 Chicago Performance Index: 7.016
Boston Consulting Group
Employees: 16,000 Boston Performance Index: 6.996
Industry: Financial services Top Ranking HR Person: Jennifer Grant Industry: Health care Top Ranking HR Person: Steve Fussell Industry: Management consulting Top Ranking HR Person: Matt Krentz
Kronos Inc. Employees: 5,780 Industry: Workforce management and software Chelmsford, Massachusetts Top Ranking HR Person: Dave Almeda Performance Index: 6.995 World Wide Technology
Industry: Technology service prodiver Top Ranking HR Person: Ann W. Marr Industry: Aerospace Top Ranking HR Person: Brian Bjelde
Employees: 647,000 Seattle Performance Index: 7.255
Industry: Security Top Ranking HR Person: Ann Addison
Employees: 105,000 Bethesda, Maryland Performance Index: 7.105
63 SpaceX
Amazon.com Inc.
Industry: E-commerce Top Ranking HR Person: Beth Galetti
Lockheed Martin Corp.
Industry: Advanced technologies Top Ranking HR Person: Patricia L. Lewis
Employees: 6,000 Hawthorne, California Performance Index: 6.974
MD Anderson Cancer Center Employees: 20,871 Industry: Cancer treatment and research hospital Houston Top Ranking HR Person: Shibu Varghese Performance Index: 6.957 Nationwide Mutual Insurance Co.
Industry: Insurance Top Ranking HR Person: Gale King
Employees: 34,000 Columbus, Ohio Performance Index: 6.955
VMware Inc.
Employees: 24,137 Palo Alto, California Performance Index: 6.94
Comcast Corp.
Employees: 184,000 Philadelphia Performance Index: 6.927
Wells Fargo & Co.
Employees: 271,453 San Francisco Performance Index: 6.91
Industry: Computer software Top Ranking HR Person: Betsy Sutter Industry: Telecommunications Top Ranking HR Person: Bill Strahan Industry: Financial services Top Ranking HR Person: David Galloreese
General Electric Co.
Industry: Conglomerate Top Ranking HR Person: Kevin Cox
Employees: 280,000 Boston Performance Index: 6.888
Boston Scientific Corp. Employees: 32,000 Industry: Medical devices Marlborough, Massachusetts Top Ranking HR Person: Wendy Carruthers Performance Index: 6.868 Kimberly-Clark Corp.
Industry: Personal care Top Ranking HR Person: Scott Boston
72 IBM
Industry: Information technology Top Ranking HR Person: Diane Gherson
73
Employees: 5,000 Maryland Heights, Missouri Performance Index: 6.99
Employees: 41,000 Irving, Texas Performance Index: 6.866 Employees: 366,000 Armonk, New York Performance Index: 6.844
Workday Inc. Employees: 10,500 Industry: Financial and human capital management Pleasanton, California Top Ranking HR Person: Ashley Goldsmith Performance Index: 6.829 m ay / j u n e
2019
All Six Years Here are the 18 companies that have made all six of the Workforce 100 lists to date.
Accenture American Express Co. Apple Inc. AT&T Inc. Capital One Cisco Systems Inc. Deloitte Google Hyatt Hotels Corp.
Johnson & Johnson JPMorgan Chase & Co. Kaiser Permanente KPMG Lockheed Martin Corp. Nationwide Mutual Insurance Co. Procter & Gamble Co. Salesforce.com Inc. USAA
84 3M
Employees: 91,536 St. Paul, Minnesota Performance Index: 6.679
85
Employees: 50,000 Washington, D.C. Performance Index: 6.668
Industry: Consumer products Top Ranking HR Person: Kristen M. Ludgate
86 Mars
Employees: 100,000 McLean, Virginia Performance Index: 6.618
87
Fidelity Investments
Employees: 40,000 Boston Performance Index: 6.602
Nike Inc.
Employees: 73,100 Beaverton, Oregon Performance Index: 6.557
Chevron Corp.
Employees: 51,900 San Ramon, California Performance Index: 6.552
Procter & Gamble
Employees: 95,000 Cincinnati Performance Index: 6.529
Marriott International
Employees: 177,000 Bethesda, Maryland Performance Index: 6.528
Grant Thornton LLP
Employees: 8,556 Chicago Performance Index: 6.518
Starbucks Corp.
Employees: 238,000 Seattle Performance Index: 6.474
Intel Corp.
Employees: 106,799 Santa Clara, California Performance Index: 6.446
Industry: Products and services Top Ranking HR Person: Eric Minvielle
88 89 90
74 75 76
Wegmans Food Markets Inc.
Employees: 49,000 Rochester, New York Performance Index: 6.807
Keller Williams Realty Inc.
Employees: 180,000 Austin, Texas Performance Index: 6.782
Texas Health Resources
Employees: 25,000 Arlington, Texas Performance Index: 6.752
Industry: Retail Top Ranking HR Person: Kevin Stickles Industry: Real estate Top Ranking HR Person: Darrell King
Industry: Health care Top Ranking HR Person: Michelle Kirby
77 Aetna
Employees: 47,950 Industry: Insurance Hartford, Connecticut Top Ranking HR Person: Thomas W. Weidenkopf Performance Index: 6.749
78 79 80 81 82 83
Costco Wholesale Corp.
Employees: 231,000 Issaquah, Washington Performance Index: 6.729
Mastercard Inc.
Employees: 13,400 Purchase, New York Performance Index: 6.728
Texas Instruments Inc.
Employees: 29,700 Dallas Performance Index: 6.727
Travelers Cos.
Employees: 30,000 New York Performance Index: 6.707
Industry: Retail Top Ranking HR Person: Pat Callans
Industry: Financial services Top Ranking HR Person: Michael Fraccaro Industry: Technology Top Ranking HR Person: Darla Whitaker Industry: Insurance Top Ranking HR Person: Diane D. Bengston
Verizon Communications Inc.
Industry: Telecommunications Top Ranking HR Person: Marc Reed
Cummins Inc.
Industry: Diesel/alternative fuel technology Top Ranking HR Person: Jill Cook
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Employees: 144,953 Basking Ridge, New Jersey Performance Index: 6.694 Employees: 62,600 Columbus, Indiana Performance Index: 6.69
Siemens USA
Industry: Conglomerate Top Ranking HR Person: Mike Bokina
91 92 93 94
Industry: Financial services Top Ranking HR Person: Bill Ackerman Industry: Consumer products Top Ranking HR Person: Monique Matheson Industry: Energy products Top Ranking HR Person: Rhonda J. Morris Industry: Consumer products Top Ranking HR Person: Tracey Grabowski Industry: Lodging and hospitality Top Ranking HR Person: David Rodriguez Industry: Accounting company Top Ranking HR Person: Brenda Wagner Industry: Consumer products/retail Top Ranking HR Person: Lucy Lee Helm Industry: Technology Top Ranking HR Person: Matt Smith
95 PwC
Industry: Professional services Top Ranking HR Person: Agnès Hussherr
96
Employees: 250,930 London Performance Index: 6.435
General Mills Inc. Employees: 38,000 Industry: Food products Minneapolis Top Ranking HR Person: Jacqueline Williams-Roll Performance Index: 6.424
97 KPMG
Employees: 32,718 New York Performance Index: 6.413
98 Medtronic
Employees: 86,000 Dublin Performance Index: 6.352
99
Merck & Co. Inc.
Employees: 69,000 Kenilworth, New Jersey Performance Index: 6.351
Eli Lilly & Co.
Employees: 38,682 Indianapolis Performance Index: 6.318
Industry: Professional services Top Ranking HR Person: Darren H. Burton Industry: Health care Top Ranking HR Person: Carol A. Surface
100
Industry: Pharmaceutical Top Ranking HR Person: Stephen C. Mizell Industry: Pharmaceutical Top Ranking HR Person: Stephen F. Fry
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27
PHOTOS BY STEWART COHEN
FLYING TO THE TOP
Southwest ascends the Workforce 100 BY BETHANY TOMASIAN
P
er aspera ad astra is a Latin phrase that translates, “through hardships to the stars.”The phrase serves as a reminder that progress is not always a straight-ahead path. Often there are forks in the road and winding turns that can hinder the journey. How one navigates those obstacles is the essence of one’s character.The same applies for companies as they strive for HR excellence. For many companies, the journey comes with a fair share of challenges, successes and lessons learned. Workforce has recognized 100 companies for the past six years that have excelled in people management with the annual Workforce 100 list of best HR practices. Workforce editors and researchers initially partnered with employee review site Glassdoor in 2016 to get an internal perspective of employee satisfaction with their company. Before the partnership with Glassdoor the Workforce 100 list leaned in favor of large corporations and did not take into account the thoughts and responses of rank-and-file employees. Since the partnership began, the list has evolved to include smaller organizations and reveals the value of a strong employer-employee relationship. A company’s score is calculated using Human Capital Media’s Research and Advisory Group and Glassdoor rankings. The inclusion of Glassdoor to the methodology seemingly plays a role in the rise and fall of company rankings. Over the past six years certain trends have become apparent. Some companies are consistently strong. Johnson & Johnson (No. 11), Salesforce.com (No. 18) and AT&T (No. 45) have appeared all six years. There have been one-hit wonder companies such as Netflix, appearing last year; and the Hershey Co., which only appeared in 2015. Other companies scored high in the first few years and have since fallen in the rankings. One example is McDonald’s, which scored third in 2014, then No. 17 in 2015 before dropping to No. 94 in 2016. Since then, the Golden Arches has not appeared on the Workforce 100. While some, like McDonald’s, have tumbled down the ranks over the years, there have been companies that ascended to the top. One such company is Southwest Airlines. The Dallas-based airline first appeared on the Workforce 100 in 2015, ranking No. 48. The following year, the airline dropped two places to No. 50. Then from 2017 to 2018, Southwest rose from No. 17 to No. 11. This year, Southwest ranks No. 1.
“We’ve really put our employees first since the beginning with our founder, Herb Kelleher,”Weber said of the airline’s late iconic leader. “Our belief is that happy employees make for happy customers, which make for happy shareholders.” One way that Southwest stands out lies within its centralized hiring practices. Companies in the retail or restaurant industries might look for seasonal employees but Southwest aims for the long haul with its hires. During the recruitment process, Southwest puts an emphasis on matching candidates to the company by attitude and culture fit. “We look for entry-level employees who are highly motivated to work with us,”Weber said. Southwest’s continuous emphasis on employees, including their treatment before employment, has resulted in lower turnover rates. Southwest also promotes a fun, engaging work environment for employees, including companywide Halloween parties. Employees are encouraged to wear their best costumes to work and to bring family members along for trick-or-treating around the office. Company leaders also host meals with employees going through leadership development programs. “Though we have a highly engaged workforce now, it is ours to lose if we don’t maintain a focus on evolving the employee experience,”Weber said. As companies grow, so do the needs of employees. Maintaining a positive employee experience can take extra effort. With a company as large as Southwest that spans across the country, evolving the employee experience means adapting to technologically advanced platforms. Under Weber’s guidance, Southwest has initiated an HR transformation in order to adapt its practices. One of the initial aspects of this transformation includes widening the scope of the talent-acquisition base to focus on the candidate of the future. “We started with investing in tools that help us with talent acquisition and now we are really looking at the entire employee experience,”Weber said. Her goal with this process is to enhance Southwest’s ability to attract and connect with newer generations of candidates. This transformation will also involve updating the company’s HR operating model so that employees will be able to access a one-stop shop.Weber wants to ensure that employees can easily access the HR services available to them, even from their phones. “It’s a big undertaking. It will include investing in new technologies with a whole focus on improving the employee experience.” While this transformation has been overall positive for the company, with change comes challenges. Part of Southwest’s journey toward transforming its HR operating model has been to keep their leaders and employee population enthused. Weber’s solution has been to maintain strong com-
SOUTHWEST PROMOTES A FUN, ENAGING WORK ENVIRONMENT FOR EMPLOYEES.
The Employee Experience Julie Weber, vice president and chief people officer at Southwest Airlines, has approached human resources with an employee-first outlook.Weber serves more than 58,000 employees, ensuring that they have a fulfilling experience during their employment with Southwest. m ay / j u n e
2019
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munication of the company’s vision and initiatives. Company alignment and visible leadership has ensured that these changes go beyond just the people department. “We want to make sure that we are bringing people along with the journey and involving our HR professionals [and stakeholders] with these decisions.That way, we all own this transformation.”
Adapting to Change T-Mobile is another company that has shown a consistent upward trajectory since debuting on the Workforce 100 in 2016 at No. 72. This year, T-Mobile climbed to 2nd. The telecommunications company is based in Bellevue,Washington, and counts more than 52,000 employees across the nation. Liz McAuliffe, executive vice president of human resources, believes that T-Mobile’s overall success starts with the employee. “What really sets HR apart at T-Mobile is our core purpose.We are stewards of all T-Mobile employees in their personal growth and career success,” McAuliffe said.T-Mobile’s grass-roots approach to the company’s success relies on creating a culture that inspires its people to not only feel good about themselves but to reflect that goodness in others. “We approach everything with this mindset,” McAuliffe said. “It’s a game-changer.” Over the past five years, T-Mobile has evolved its HR operating model in order to meet and exceed the needs of a diverse employee population. To start, they’ve launched an ongoing effort to create a diverse and inclusive environment that will celebrate their employees’ unique selves. This investment began in 2014 when T-Mobile launched diversity and inclusion networks nationwide. Today, the
T-Mobile employees at the close of an Insight Out session. Photo courtesy of T-Mobile.
membership of those networks across the nation’s 50 chapters makes up approximately 42 percent of the company’s employee base. To further develop a diverse and inclusive workplace, T-Mobile initiated a companywide learning project called Insight Out. The program involves a combination of in-person and digital interactions to bring awareness to bias in order to create a foundation for more inclusive language, actions and behaviors. “This isn’t easy,” McAuliffe said. “It requires courage, awareness, open-mindedness and commitment, but acting on this complex challenge reflects who we are at T-Mobile.” LiveMagenta is another initiative that aims to transform the traditional face of T-Mobile’s employee assistance program. LiveMagenta would ensure that employees can access resources and benefits through a mobile-friendly app. “LiveMagenta [is] providing everything from financial experts to counseling services and life coaches,” McAuliffe explained. While McAuliffe reports an overwhelmingly positive response to these initiatives, the company has also experienced the growing pains that come with change. “One challenge is delivering meaningful services that scale for 52,000 employees while still meeting the needs of employees at all levels and in widely varying roles,” McAuliffe said. Another challenge comes with operating an HR team at the same fast pace as the business itself. McAuliffe said the solution for T-Mobile was found through a strong collaborative relationship with their business partners coupled with an efficient HR team. Listening to employee feedback has revealed how just how much these initiatives have improved things for the better. “[It] never ceases to amaze me,” McAuliffe said. “It’s truly magical when people can come together and deliver From left: Kim Hull, senior director; Gregg Thorsen, senior director; Julie Weber, vice president and chief people officer; Danny Collins, managing director. such fantastic results every single day.” 30
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m ay / j u n e
2019
The First Timers This marks the initial year these nine companies appear on the Workforce 100 for their exemplary HR practices. E. & J. Gallo Winery HubSpot Inc. Procore Technologies St. Jude Children’s Research Hospital Inc. Morgan Stanley
Visa Inc. Kronos Inc. MD Anderson Cancer Center Keller Williams Realty Inc.
Recognizing Diversity and Inclusion
Goldman Sachs has also risen through the Workforce 100 rankings the past six years. Their trajectory began when they first appeared on the list in 2015 at No. 27. This year the company clocked in at No. 3. For the investment banking company, the advancement of women and a diverse workplace has not just been a nice to-do. It’s been a business priority. Goldman Sachs’ Vice President, Media Relations Leslie Shribman offered insight to the company’s key HR initiatives in recent years. As a commitment to this advancement, the company announced last year that they aspire to have women make up 50 percent of their diverse talent worldwide, and 50 percent of all analyst hires by 2021. “We have invested in new programming to attract more women applicants to posi-
Methodology The Workforce 100 is the rank order and scores of the 100 companies that performed best in seven core areas: workplace culture, employee benefits, diversity and inclusion, employee development and talent management, human resources innovation, leadership development, and talent acquisition. The working assumption behind the list is that high performance in these core categories provides a reasonable proxy for overall HR excellence. The methodology creates a ranked list that makes comprehensive HR participation and employee feedback on their respective employers the primary focus rather than excellence in one core area. Using this method, organizations that are recognized on multiple lists but do not perform perfectly will be ranked higher than organizations that are ranked in one area but perform better in a single discipline. In addition, organizations that are not as heavily represented in external recognition programs are still acknowledged for their HR efforts through the posted opinions of their employees. To generate the score, researchers first looked at how many lists with HR relevance a particular company appeared on, which makes up half of the total score (maximum of 5 points). The other half of the score (also with a maximum of 5 points) was derived from an average of the company’s Glassdoor performance in areas pertaining to HR. These scores are then added together to create the final score.
tions at the firm and have instilled accountability measures within our hiring process to review progress against our goal,” Shribman said. The company also has demonstrated an inclusive atmosphere by implementing programs that focus on working parents. One example is LifeCare’s Milkship program for employees who are breastfeeding.This program offers a free full-service program for employees in the United States to safely ship their breast milk home when they travel overnight for business. Other programs include providing parental leave following the birth or adoption of a child, access to best parenting practices, and medical guidance should a critical situation arise. Goldman Sachs has also made advancements in their programs to reinforce an inclusive environment. Three of these programs include their Women’s Career Strategies Initiative, Black Analyst and Associate Initiative, and Hispanic and Latino Analyst Initiative. The programs work to ensure a supportive environment by focusing on the networking and development opportunities for women and minority employees. “We believe our people are our greatest asset. We invest in their development and provide them an opportunity to work alongside talented colleagues to drive progress across markets, communities and the world,” Shribman said. These programs are not laurels that Goldman Sachs wishes to rest upon. They have recognized that progress is an ongoing process. As the workforce changes, so must the HR teams that serve it. “We regularly evaluate how we can improve our programs, offerings and policies to WF100 continued on page 48
50 Best Small Workplaces, 2018 (Fortune) Best Places to Work, Large Companies, 2019 (Glassdoor) Best Places to Work, Small and Medium Companies, 2019 (Glassdoor) Top Companies, 2018 (LinkedIn) Top Companies, 2017 (LinkedIn)
Top Companies Lists, Benefits Best Employers for Healthy Lifestyles, 2018 (National Business Group on Health) Companies with Incredible 401(k) Options, 2018 (Glassdoor) 30 Best Workplaces to Retire From, 2016 (Fortune) 10 Companies With the Best 401(k) Plans, 2017 (Brightscope) Top-rated Workplaces for Work/Life Balance, 2018 (Indeed) 20 Companies with the Best Benefits, 2017 (Glassdoor) Best Companies for Benefits and Perks, 2017 (Glassdoor)
Top Companies Lists, Diversity Top 50 Companies for Diversity, 2018 (DiversityInc) Best Employers for Vets, 2018 (Military Times) Disability Equality Index, 2018 (AAPD) 100 Best Workplaces for Diversity, 2018 (Fortune) 100 Best Companies, 2018 (Working Mother) Best Large Workplaces for Women, 2018 (Fortune)
Component Lists:
Top Companies Lists, Innovation
Top Companies Lists, Overall
The Most Admired for HR, 2016 (HR Executive) 4 Innovative HR Departments, 2016 (Spark) World’s Most Admired Companies, 2017 (Fortune)
World’s Best Multinational Workplaces, 2018 (Great Place to Work)
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Top Companies Lists, Leadership Highest Rated CEOs, 2018 (Glassdoor) Management Top 250 (Wall Street Journal)
Top Companies Lists, Recruiting Candidate Experience Awards, 2018 (Talent Board) 20 Hottest Companies for Job Seekers, 2018 (Indeed) Best Places to Interview, 2017 (Glassdoor)
Top Companies Lists, Talent Management Learning Elite, 2018 (Chief Learning Officer) Learning in Practice Awards, 2018 (Chief Learning Officer) Training Top 125, 2018 (Training) 50 Most Engaged Workplaces (Achievers) BEST Awards, 2018 (Association for Talent Development) Excellence in Practice Awards, 2018 (Association for Talent Development) 9 Best Companies for Professional Development, 2017 (Glassdoor)
Glassdoor Data Used Career Opportunities Rating Compensation & Benefits Rating Culture & Values Rating Work/Life Balance Rating Recommend to a Friend Rating Note: Some of the component lists are compiled by active participation from the companies listed and therefore do not recognize companies that decline to participate.
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INSIDE THE WORKFORCE 100
CULTURE
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This year’s Workforce 100 list reveals the importance best practices in people management play in developing a continuously strong workplace culture. BY ANDIE BURJEK; RESEARCH BY GREY LITAKER
A
s the organizations comprising the 2019 Workforce 100 reveal, outstanding human resources practices are worth celebrating. And great HR is not elusive for those that understand the importance of best practices. The research team at Human CapBest Practices from the 2019 ital Media, the parent company of ‘HR State of the Industry’ report. Workforce, recently released its annual “HR State of the Industry” report, Culture: Make sure that leaders are inwhich provides HR leaders a glimpse volved with setting culture strategy and into what most companies rely on in model it in their own behavior. their people management practices Compensation: Retention and employfor five major disciplines of HR: culee satisfaction are the strongest meature, compensation, benefits, health sures of compensation success. Intecare benefits, and HR management grate compensation planning, as least technologies (methodology on p. 36). slightly, into other areas of HR strategy. It’s also the entity charged with creating the Workforce 100 list, which ranks Benefits: Organizations have the best an organization’s human resources chance of making the business case practices in seven core areas of peofor benefits with employee satisfaction ple management: Culture, Employee data and employee engagement data. Development, Leadership, Diversity, Technology: Focus on HR systems that Recruiting, Benefits and Innovation. In collaboration with the research provide data to make talent decisions. team, Workforce’s editorial team has explored the data from these two reports — the Workforce 100 and the 2019 “HR State of the Industry” — to explore best practices in HR. Workforce analyzed the top-performing companies of the Workforce 100 in each core area of HR measured, spoke to several companies that made the Workforce 100 and compared their practices to those found in the 2019 “HR State of the Industry” report.
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According to respondents to the “HR State of the Industry” report, the most popular ways for organizations to build and maintain a strong workplace culture (Figure 1) are through onboarding (68.2 percent) and communication (66.7 percent). Another key finding about company culture is that leadership should be involved in fostering workplace culture (Figure 2) by establishing a clear vision (62.9 percent), setting strategy (61.2 percent) and modeling the company’s mission and values (59.8 percent). San Antonio, Texas-based financial services company USAA is one organization that applies its culture in the onboarding process. “Human resources is one of the driving forces behind culture,” said Robin Kirby, senior vice president of human resources at USAA, which is listed at No. 53 overall in the 2019 Workforce 100 and ranked No. 1 in the Employee Development category. Kirby said that one of the “most powerful ways” HR impacts company culture is by having new hires learn about and embrace USAA’s core values — service, loyalty, honesty and integrity. Salesforce.com is also deliberate about promoting its workplace culture from the outset of an employee’s tenure with the San Francisco-based cloud software company. The company — which is listed at No. 18 overall on the 2019 Workforce 100 and in the top 5 for Culture, Leadership and Recruiting — has a formula designed to promote its culture, according to Jody Kohner, Salesforce’s senior vice president of employee marketing and engagement. Kohner admits the organization doesn’t have it all figured out and that there’s always room for improvement,
build workplace culture? Include mission and values in onboarding
68.15% 66.74%
Include cultural elements in learning and development
54.33%
Only 41.3 percent of the “HR State of the Industry” respondents reported that their HR systems provide data that enable them to make talent decisions like hiring and compensation (Figure 4). But as data-driven decision-making becomes increasingly more relevant, this may change.
FIGURE 2 How are senior leaders
involved in fostering workplace culture at your organization
62.88%
Set strategy
61.23%
Model mission and values
59.81%
Set communications tone
56.74%
Solicit internal feedback
37.59%
Culture is built into work processes
50.12%
Oversee critical areas
35.70%
We hire for cultural fit
48.95%
Participate in training
34.99%
Set stretch goals
33.33%
Culture is part of employee review process Other
34
Technology
Establish a clear vision
FIGURE 1 How does your organization
Include mission and values in company communications
but it does have a three-part formula to guide its culture. “What we believe is that if you take culture and you add in technology and data, that ultimately this is what drives engagement,” she said. Culture change isn’t an easy task. It takes a lot of “deep listening” to the concerns and comments of an organization’s workforce, Kohner said. Employees can tell an organization what’s working and what’s not working. This requires leadership to be able to admit they messed up and then be proactive enough to fix a problem, she said. “When people stop voicing their opinions or they stop caring enough to give you feedback, that’s when you’re really in trouble and that’s when you’ve lost them,” Kohner said. “Culture is something that you continuously need to evolve. The business is always changing and the talent you’re bringing in is always changing.”
38.88% 7.96%
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Other
FIGURES SOURCE: 2019 WORKFORCE “HR STATE OF THE INDUSTRY REPORT”
Culture
6.62% m ay / j u n e
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Salesforce.com created its own technology and apps to acquire data, Kohner said.This data can be used to do things like help make internal mobility decisions and figure out who the best leaders with the most productive teams are. It can also help highlight areas that need improvement, Kohner said. “By putting this data in everyone’s hands, it holds leaders accountable for driving continuous improvement,” she added. For example, in Kohner’s team, the data showed that people wanted to receive more feedback from their peers, and they weren’t sure how much their manager wanted to hear feedback from them. Kohner and a task force from her team worked for six months to dive into the feedback problem, and when the next survey came out, those scores dramatically improved. “That’s not something I could have put my finger on without the survey, but once the data is available to me, I’m empowered to do something about it,” she said. Cisco Systems Inc. also had a big change in the employee engagement data and measurement space, said Charlie Johnston, senior vice president of human resources at the company, which is No. 10 overall in the 2019 Workforce 100 and ranked No. 3 in the Culture category. Johnston, who has been at the organization for 12 years, leads employee experience in 93 countries. He said they shifted from an annual survey to a globally consistent, on-demand survey that asks the same eight questions
FIGURE 3 How does your organization measure the success of its compensation program?
68.45%
Retention Employee satisfaction
51.15%
Employee engagement
34.99%
Productivity
33.33%
Job offer acceptance rate
31.30% 29.01%
Benchmarking Return on investment Other
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16.79% 9.89%
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2019 Workforce Business Intelligence Board Methodology The Workforce Business Intelligence Board consists of senior human resources practitioners and is the business intelligence arm of Workforce magazine. Board members represent government agencies, nonprofits and diverse industries ranging from aerospace to business services to consulting services and health/medical service, and 53.8 percent of participants are director level or above. There are 15.2 percent of participants who work for publicly traded companies, and 63.4 percent of participating organizations have fewer than 1,000 employees. There were more than 400 participants in the 2019 Workforce “HR State of the Industry” report and all answers are given in aggregate.
throughout the year. This was especially important because four years ago Cisco got a new CEO, and the organization began to go through a major culture shift. The on-demand survey allows Johnston to see how teams are doing around the globe. These surveys happen as managers and team members need them, or after the monthly meeting called the Cisco Beat in which employees from around the world tune in, hear company updates and share their own experiences. Employees rank from “strongly disagree” to “strongly agree” statements such as “I feel safe discussing sensitive or challenging topics with me manager,” “Cisco is an innovative company,” and “Leadership provided clear answers to the questions raised today.” Cisco uses artificial intelligence to analyze and understand employee sentiment, Johnston said. Real-time insights through data allow leadership to get a strong understanding of employee engagement.
Benefits and Compensation Most organizations measure the success of a compensation program (Figure 3) through retention (68.5 percent) and employee satisfaction (51.2 percent), according to the “HR State of the Industry” report. Similarly, most organizations also use employee satisfaction and employee engagement to measure the outcomes of benefits offerings. Some benefits that Cisco uses to appeal to employees include birthday time off and time to volunteer in a program called Time to Give, Johnston said. “People love these quick wins because it signals change,” he added. “It was something that was different, and I think people really bought into it that [we were] trying to change the culture.” CULTURE continued on page 48 m ay / j u n e
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“
Attempt the end and never stand to doubt; nothing's so hard but search will find it out.” —Robert Herrick (1591-1674) Transform expert opinions into actionable insights The HCM Research and Advisory Group delivers thought leadership tailored to your business. Survey our highly engaged group of practitioners and create customized whitepapers and infographics based on our research. Work with us to gather and discuss strategic insight for the leaders of tomorrow and beyond. Learn more at humancapitalmedia.com/research
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What You Need to Know to Hire and Keep the Best Employees in 2019 New research uncovers best practices for creating a competitive advantage by approaching employee benefits strategically. These days, employers and employees should be aligned in their business and personal goals. For organizations, their business goals often include improving retention, raising engagement, increasing benefits participation or recruiting more high-potential candidates. Offering competitive salaries is one way to achieve these goals, but today’s job seekers are looking beyond their base salary when evaluating companies. As the workforce changes, organizations will need to take a hard look at their competitive advantages in the marketplace. More and more, businesses use employee benefits strategies to achieve these goals. This creates a competitive advantage, as potential employees are more likely to work for organizations that show they care about members of their workforce. Ameritas recently partnered with the research arm of Workforce for the Using Benefits for Competitive Advantage survey, asking more than 400 employers exactly how they use benefits programs strategically. The data shows competitive advantage can be gained by addressing four key areas regarding employee benefits: • Benefits communication • Financial well-being • Measure benefits investment • Technology implementation
Organizations adopting a strategic approach to their benefits packages excel in the four areas compared to organizations that don’t.
1. PRACTICE PROACTIVE BENEFITS COMMUNICATION. Communication is
critical when it comes to benefits and perks. According to survey respondents, the main reason employees don’t use their benefits is because they don’t understand how to use them. Organizations should develop a robust benefits communication strategy to mitigate this confusion. It’s most effective to communicate often through a variety of channels so employees know what’s available to them and how they can participate. Among survey respondents, organizations using their benefits strategically often use email, direct manager communication, intranet and newsletters in their communications mix (Figure 1). Email
90%
Supervisors/managers
71%
Intranet
69%
Internal newsletter
Figure 1
44%
Organizations using benefits strategically
2. SUPPORT FINANCIAL WELL-BEING THROUGH BENEFITS. The No. 1 benefits challenge
facing HR over the next 12 months is addressing rapidly changing workforce needs and trends. For many, this includes financial benefits. One area of financial well-being looms large on the horizon: student loan debt. More than a third of millennials have student loan debt,1 while 7 million workers between the ages of 40 and 49 have student loan debt.2 Student
1 Arenge, A., Perry, S., and Tallevi, A. (2018). Poll: Majority of millennials are in debt, hitting pause on major life events. CBS News. 2 Hirsch, A. (2018). Employers Explore Repaying Student Loan Debt. SHRM.
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loan repayment — whether through tuition assistance or reimbursement — should be considered as part of a holistic approach to offering benefits. Assisting employees in this area can bring higher levels of engagement and retention. 3. ADOPT BEST PRACTICES IN MEASUREMENT REGARDING BENEFITS. Only a third of
respondents agree with this statement: “We calculate the ROI of benefits investment at my organization.” Tracking benefits usage and obtaining employee feedback can help organizations design and maintain benefits strategies that support their organizational goals. A set of carefully considered and appropriate key performance indicators (KPIs) helps organizations see if their benefits are being used or if they’re wasting time and money on unpopular programs. Employers can also survey their employees to find out what benefits they use or don’t use, and what benefits they would like to have. Among survey respondents, organizations using their benefits strategically often track metrics related to health care costs, retention, engagement and absenteeism (Figure 2). Health care costs
67%
Employee engagement/satisfaction
64%
Figure 2
benefits technology creates a competitive advantage at their organizations. At the same time, close to one in six cited a lack of expertise in technology as a top challenge to approaching benefits more strategically. Organizations that align their benefits strategies with their business goals will see higher benefits adoption and overall employee satisfaction. Benefits vendors can provide training and expertise, boosting technology knowledge. Simply offering benefits is no longer enough to entice employees to stay at any organization. Addressing well-being through benefits and perks demonstrates to employees that the organization is dedicated to their success, which will aid in recruiting and retaining high-performing employees. The positive outcomes of a strategic benefits approach are numerous, such as improved employee engagement and retention, reduced health care costs and better recruiting outcomes. All statistics taken from the Using Benefits for Competitive Advantage survey by Workforce in coordination with Ameritas unless otherwise noted. For full results of this research, read Get the Competitive Advantage: 4 Ways to Hire and Train the Best Employees at ameritasinsight.com.
75%
Employee retention
Absenteeism
4. INCORPORATE TECHNOLOGY INTO BENEFITS PRACTICES. Nearly half of respondents say
39%
Organizations using benefits strategically
The group division of Ameritas Life Insurance Corp. has served customers since 1959, and today issues and administers dental, vision, LASIK, and hearing insurance and student loan repayment plans for more than 8.1 million people and more than 58,600 employer groups nationwide. Claims contact center associates have earned BenchmarkPortal’s Center of Excellence award since 2006. Learn more about Ameritas and Ameritas Life Insurance Corp. of New York at ameritas.com/dental. Explore employee benefits and well-being topics at ameritasinsight.com.
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elationships are complex, particularly so at work since employees have limited control over who they interact with. While there’s no shortage of advice on how to deal with matters of the heart, working relationships are rarely discussed until it becomes painfully obvious they’re not working. In the wake of the #MeToo movement there has been an increasing focus on fostering more respectful workplace environments. Yet most managers receive little guidance when it comes to building, maintaining and
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repairing healthy relationships that often foster toxic workplaces. In many instances they evolve into one of three types of supervisor: the buddy, the boss or the bully. In a study of what makes a manager effective, the quality of their relationships was found to make the biggest difference to their success. Understand how to do relationships well and everything else becomes easier. Feedback is better received, delegation of duties becomes more straightforward and employees find it easier to cope with change. m ay / j u n e
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Individuals who report good relationships with their managers are healthier, happier and have more fulfilling careers.They perform better, put in more discretionary effort, are more innovative, more resilient and more likely to stay with the organization. Relationships between team colleagues are also critical. For example, in a study of hospital wards in England, teams who worked well together saw a 3.3 percent drop in mortality rates, the equivalent to saving 40 lives per year. Destructive relationships wreak havoc for individuals and for organizations. Studies show that for three-quarters of employees, the most stressful part of their job is their boss. A 2015 Gallup survey revealed that half of respondents claimed to have left their most recent job due to a poor relationship with their boss.
DESTRUCTIVE RELATIONSHIPS WREAK HAVOC FOR INDIVIDUALS AND FOR ORGANIZATIONS. As well as the human costs, the financial repercussions of toxic workplace behavior can reach the millions. Considering that managers account for 70 percent of the variance in employee engagement, the disengagement caused by bad bosses costs businesses upward of a half-billion dollars annually. While this is not a new trend (with research dating back to the 1990s showing “job stress” related to poor management being cited in 75 percent of workers’ compensation claims) the need to address it has become more pressing in the age of #MeToo.
The Buddy, the Boss and the Bully Psychologists in 2007 identified a “toxic triangle” of factors that foster negative relationships between leaders and followers. The combination of dysfunctional leaders, silent subjects and a permissive environment create a situation where relationships are likely to break down in a detrimental way. Dysfunctional leaders. Most people have a dark side that comes out, particularly during times of pressure. Without clear guidance on managing the more complex aspects of workers’ personalities, managers often revert to behavioral patterns developed in childhood. In 1950, psychologist Karen Horney published important research that outlined three patterns of coping behavior that children rely upon in times of stress. Some naturally turn toward people, seeking out closeness in order to feel comforted. Others turn away, preferring to cope independently.The third group actively turn against other people, choosing to fight. Adults draw on a combination of these coping mechanisms but usually have a preference for one over the other. When taken to its extreme, this preference becomes dysfunctional and can result in some bad behavior. First, we have the manager who prefers to turn toward 42
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others.These leaders want to be everybody’s friend, seeking approval in order to validate themselves. The manager morphs into the Buddy. On its face this might seem OK, but this type of relationship can go horribly wrong. Amy Gallo, author of the “HBR Guide to Dealing with Conflict,” warns that these managers can shy away from giving feedback, avoid going to bat for their teams and give in too easily to demands. Their need for approval can create an overly politicized, clique-y organization where personal boundaries are frequently abused. Then there is the “turn away” manager who doesn’t care what other people think of them so long as the job gets done.They are the stereotypical detached Boss, interested in delivering to deadline at the expense of everything else. They have no interest in building healthy relationships, believe in reinforcing hierarchy and don’t care if they are overburdening people. This focus on results at the expense of relationships means teams are less loyal, less happy and ultimately less likely to give it their all. The “turn against” manager arguably takes the crown as the worst supervisor.They care about relationships but only so they can twist and manipulate them for their own gain. They are the quintessential Bully.They love relationships for the opportunities they give them to take advantage and get what they want. Bullying and harassment in the workplace are more common than you’d think; considering that three-quarters of employees report that they’ve experienced it at some point in their career. And the worrying reality is that we’re all at risk of straying into these toxic personas from time to time; it’s not just the extreme characters that cause havoc. As people gain more power in their careers, the skills they need to be successful, such as empathy and collaboration, tend to be less important, and so a vicious cycle ensues. Silent Subjects. For dysfunctional leaders to flourish to the extent that relationships break down irreparably, they need followers who for a variety of reasons avoid speaking out. This can mean conformers — those who are typically obedient to authority, prone to group-think, don’t feel that it’s safe to speak up or are unwilling to challenge the status quo. Sometimes people don’t even know the behaviors to look out for or what to do when they see it. It can also be in the form of colluders who see benefit in aligning themselves with a destructive leader. Colluders reinforce the leader’s bad behavior, repress any would-be whistleblowers and help the toxic cycle continue. Permissive Environment. A permissive workplace environment is one that permits or may even encourage bad relationships to flourish. If the culture is overly politicized and consensus is valued above all else, the inner Buddy will come to the fore. If it’s a results-driven environment in which targets must be met at all costs, the Boss is likely to emerge. And in a dog-eat-dog culture where aggression and intimidation are par for the course the Bully will come to the fore. These are all extremes, of m ay / j u n e
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course, but every company’s policies and processes as well as the culture, values and norms will nudge its leaders to behave in a certain way. There are methods to limit the buddy-boss-bully syndrome and create a workplace atmosphere more conducive to building strong manager-report relationships. Here are five focus areas for making a difference to building a culture of good working relationships. Limit the abuse of power. As an executive, encourage self-awareness and introspection in leaders. The right balance is being respectful of boundaries while also providing descriptive feedback, precision coaching and stretching but not straining targets. Organizations should consider the strategies they use to select their leaders. Is enough being done to weed out the bad apples or are there entrenched, bias-laden approaches that toxic leaders can take advantage of? Organizations might be better off hiring decent leaders than hyper-talented individuals with an uncontrollable dark side. Establish norms and boundaries. Working relationships work best when managers strike the right balance. Overly focusing on the relationship could allow for goals to slip out of reach. Ignore your team’s needs though, and commitment to work could falter. Managers need to set standards for their team by role-modeling respectful, inclusionary behavior and being clear on the behaviors that are appropriate and the boundaries that shouldn’t be crossed. This applies in every interaction, from giving feedback and dealing with poor performance to inquiring about a team member’s well-being and sharing personal details. Contract from the start. In every manager-report relationship there exists a psychological contract about how each should behave, although these rules usually remain unspoken. Managers should be encouraged to have a frank conversation with their reports about what each side expects from the relationship, where you draw the line and any behavioral nonnegotiables. Making these assumptions explicit means there’ll be no room for misunderstanding, and avoids relationship breaking down. Give permission and voice. The first challenge is helping people see the toxic behavior for what it is. The second is helping them to understand that there’s nothing wrong with calling out disrespectful behavior in a professional way. With many people, their self-identity can get in the way as there is a dissonance between how people see themselves (successful, confident) and not wanting to appear as the victim. Repair ruptures. Despite our best efforts, relationships will go awry. When that happens, refer to a quick, effective repair kit.This comes in four stages: • Pause. Step back from the heat of the moment and do whatever needs to be done in order to emotionally reset. • Contain. Address the conflict in the moment and keep it isolated to that specific incident to prevent toxicity from seeping into the relationship as a whole. • Play back. Share thoughts and feelings and be open to m ay / j u n e
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Healthy Work Relationships and #MeToo In the past 18 months there has been a seismic shift in the conversation around what is and isn’t acceptable at work and this presents new leadership challenges for organizations. Tomas Chamorro-Premuzic, professor of business psychology at University College London and Columbia University, explains that from a reputational point of view “organizations are more worried than ever before, and not just a function of the #MeToo age, but also a result of living in a reputation economy, where collective perceptions are recorded and broadcast nonstop.” Leaders must take responsibility for creating more respectful work environments, where relationships are healthy and appropriate, where harassment is less likely to flourish and where people feel more comfortable challenging bad behavior. The stakes are much higher now in terms of getting this right. As Chamorro-Premuzic notes, “We used to say that it takes people a lifetime to build a strong reputation but a few seconds to destroy it, and that is even truer in organizations now.” The more we can do to equip our managers with the skills to be able to navigate healthy relationships with their colleagues the better chance we will have in creating workplaces where people are able to flourish and where the scandals that have plagued many of the worlds largest corporations are avoided. — Mary-Clare Race
hearing what others are saying. Play back what’s been said so they feel listened to. • Reassure. Remind yourself and the other person that conflict is inevitable, and if handled well can strengthen the relationship in the long run. Nobody said it would be easy but given the impact of relationships on almost every measure of workplace success, it pays to understand how to make our working relationships work. Mary-Clare Race is the president and chief creative officer of Mind Gym. Race has more than 15 years of experience and has consulted to a range of clients in financial services, pharma, luxury brands, consumer goods and government. To comment, email editors@workforce.com.
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SECTOR REPORT
Vo l u n t a r y B e n e f i t s
Offering Something for Everyone Health care and financial assistance tools are proving popular with employees. By Sarah Fister Gale
V
oluntary benefits have officially crossed the threshold from add-on feature to arguably the most vital part of every benefits program. “Voluntary benefits are now the center of the benefits strategy,” said Amy Hollis of Hollis Consulting, a benefits consulting firm in Atlanta. “They have become integral to the rewards offering as a tool to support recruiting and retention.” The question now isn’t whether to offer these optional benefits, but which ones to put on the menu. Financial wellness and tools to mitigate health care costs continue to top the list of popular voluntary benefits options. More than 40 percent of companies offered accident, critical illness and/or hospital indemnity benefits in 2018, and 25 percent of employees took advantage of one or more of these offerings. Student loan repayment programs are also gaining popularity as millennials and Gen Z flood the workplace, said Mary Tavarozzi, principal of MLT Advisors in Tampa, Florida. Student loan debt in the U.S. surpassed $1.36 trillion in 2018, according to a report from Experian. “The biggest issue these generations face is student debt,” she said. And employers are responding. Companies that offer assistance can gain an edge with young talent, though they have to be careful about how these programs are structured. Some companies are offering a set amount per year toward debt repayment, or matching monthly funds, though Tavarozzi noted that these kinds of payments can be viewed as a bonus from a tax standpoint. “You don’t want to go afoul of the IRS,” she said. To avoid tax implications, companies such as Abbott are opting to match or exceed employees’ loan repayments through contributions to their 401(k). Alongside financial support, pet insurance, identity theft protection and legal help are other voluntary benefits that have gained traction in recent years.
The added variety and importance of voluntary benefits, is taking its toll on in-house benefits administrators who struggle to keep up. In response, many companies are outsourcing the role, which is driving many big insurers to acquire or partner with these outsourcing firms. For example, in 2018 Transamerica partnered with Businessolver, a benefits administration platform, to add medical and voluntary benefits administration to its offering; and in 2017, Blackstone acquired Aon’s benefits administration and human resources platform for $4.8 billion. “We are also seeing smaller acquisitions almost monthly, as demand for voluntary benefits administration accelerates,” Tavarozzi said.
69
%
OF EMPLOYERS SAY VOLUNTARY BENEFITS WILL BE AN IMPORTANT COMPONENT OF THEIR EMPLOYEE VALUE PROPOSITION IN THE NEXT 3-5 YEARS.
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MAKE IT EASY
Whether employers manage these programs in-house or through a third-party firm, the key to successful implementation is providing a variety of options that appeal to employees of all generations and needs, Hollis said. “If you want employees to use these programs you have to tie it all together and provide seamless delivery.” One way to increase uptake is to offer rolling adoption rather than waiting for open enrollment, Tavarozzi suggested. “This lets employers expand their offerings to meet shifting workforce needs.” Providing live benefits counseling and self-service enrollment tools, and regularly talking about these offerings with new recruits and existing employees will also engage their interests. “If companies want to leverage these tools to attract and retain workers, they need to talk them up and encourage participation,” Hollis said. “You need to connect the dots for these programs to drive real value.” Sarah Fister Gale is a writer in Chicago. To comment email editors@workforce.com.
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2019
HOT LIST Rewards and Recognition Providers Listed alphabetically; compiled by Bethany Tomasian; editors@workforce.com
COMPANY NAME & Web Address
ANNUAL REVENUE
NUMBER OF CLIENTS
KEY CLIENTS
ACHIEVERS CORP. achievers.com
N/A
N/A
Ericsson; Rogers; Visa; ATB Financial; Christus Health
Would not disclose
Would not disclose
Alipay; Belk; Best Buy; Brooks Brothers; eBay; Gap
BLACKHAWK NETWORK blackhawknetwork.com
ENGAGE2EXCEL engage2excel.com
Would not disclose
2,800
Aflac; Ford; P&G; Honeywell; Colgate-Palmolive; Lowe’s; L’Oréal; PNC Bank; Providence Health & Services; UPS
HALO RECOGNITION halorecognition.com
Would not disclose
800
Marriott; AT&T; Northwell Health; PPG; Whataburger; EY
IDENTITY FORCE & EZSHIELD* Identityforce.com
Would not disclose
Would not disclose
Deluxe; Commerce Bank; WhiteHawk; Advocate Healthcare; Kohler; Vodafone; Federal Aviation Administration
NEXT LEVEL PERFORMANCE nxlperformance.com
Would not disclose
Would not disclose
Financial services; insurance; manufacturers; distributors; luxury goods companies
O.C. TANNER octanner.com
$500 million
4,000
Northern Trust; U.S. Bank; Dow Chemical
RIDEAU INC. rideau.com
$150 million
960
RBC Financial Group; Intel; Boeing
Would not disclose
Would not disclose
LinkedIn; Procter & Gamble; Symantec; Cisco; Eaton; Merck
WORKHUMAN** workhuman.com
*EZShield acquired IdentityForce in August 2018 and they now operate a joint company. **Globoforce rebranded itself as Workhuman in February 2019. Source: Companies. m ay / j u n e
2019
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SECTOR REPORT
Employee Assistance Program Providers
The Business Benefit of EAPs Companies want proof that EAPs add value — and vendors are starting to respond. By Sarah Fister Gale
E
mployee assistance programs were originally created to address alcoholism and drug use in the workplace. These programs have since matured to address a broad range of issues that can affect all aspects of employee performance and engagement. From the misuse of drugs and alcohol to stress, anxiety, sleep disorders and depression, they take on “virtually every problem an employee could have,” said Gregory DeLapp, CEO of the Employee Assistance Professionals Association. This evolution has also changed who runs the programs, he added. In the beginning, most EAP leaders came to the role through the training department or because of their own recovery. But today, most EAP professionals have a social work background or mental health training. “It reflects what’s being offered and when,” he said. Today, mental health is a leading driver of EAP investments and the services provided, and thanks to the growing social dialog about depression and anxiety, employees are more open to taking advantage of these offerings, said Barbara Veder, vice president of employee support solutions for Morneau Shepell, an HR technology and consulting firm in Toronto. “That leads to more early engagement, which is always the focus for EAPs.” She noted that stress, depression and anxiety are among the top reasons why employees access EAP services, and she encourages employers to provide tools and services that help employees to be more proactive in their mental health care.These may include online assessments to gauge risks, rapid access to counseling rather than waiting weeks for an appointment, and wellness apps and self-directed programs to help “get people back to their best selves,” she said. On the employer side, EAP providers are offering more data and analytics to help them understand whether these programs are being used, and what impact they may have on the business. “Having access to meaningful data allows employers to tailor their programs to the needs of the workforce,” Veder said. It isn’t just about gauging whether
employees use these services. Good metrics also help them understand what intervention types are most appealing and how their use breaks down among employee groups. “A lot of people want to take ownership of their care, while others respond better to human interventions,” she said. DeLapp noted that companies should be sure the data they are getting demonstrate actual business impact. “So much of what is sold today is based on measures of activity, like number of therapy visits, or calls to a call center,” he said. He argued that employers should be asking for outcome measures that demonstrate results.
40
%
WORKPLACE OUTCOME SUITE IMPACT
Many benefits leaders are finding this kind of data through the annual “Workplace Outcome Suite” report developed by Chestnut Global Partners, which uses workplace surveys to demonstrate the effectiveness of EAPs in business terms related to absenteeism, presenteeism, work engagement, workplace distress and life satisfaction. For example, the most recent WOS annual report found that before implementing an EAP program, companies saw an average of 10.92 hours of work missed over a 30day period due to mental health related issues; after the implementation, it dropped to 5.64 hours — or an improvement of 48 percent. “It helps employers anticipate what impact an EAP will have on the business,” DeLapp said. While EAPs are often considered separate from other benefits programs, it is also important to find synergies between EAPs and benefits offerings, he said. For example, financial pressures can cause stress and anxiety, so offering financial planning services, student debt repayment and other voluntary financial benefits can have the knockon effect of easing workplace anxiety. “It’s an interesting dichotomy that should be considered when crafting any EAP program.”
OF WORKERS WHO HAVE BEEN DIAGNOSED WITH DEPRESSION REPORT TAKING AN AVERAGE OF 10 DAYS OFF WORK AS A RESULT OF THE DIAGNOSIS.
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Sarah Fister Gale is a writer in Chicago. To comment email editors@workforce.com.
m ay / j u n e
2019
HOT LIST Employee Assistance Program Providers Listed alphabetically; compiled by Bethany Tomasian; editors@workforce.com REVENUE DERIVED FROM EAP SERVICES
NUMBER OF EAP CLIENTS
TOTAL NUMBER OF EMPLOYEES COVERED
ACI SPECIALTY BENEFITS acispecialtybenefits.com
$11.5 million
12,000
12 million
BEACON HEALTH OPTIONS beaconhealthoptions.com
$100 million
150
11 million
BHS bhsonline.com
$8.6 million
525
445,000
Would not disclose
50,000
109 million
$5 million
450
2 million
Not available
2,000
Would not disclose
Would not disclose
500
167,000
$30 million
3,000
10 million
HUMANA INC. humana.com
Would not disclose
550
1.5 million
IBH ibhcorp.com
$20 million
27,000
9 million
MAGELLAN HEALTHCARE magellanhealth.com
$61 million
2,400
11.7 million
MINES AND ASSOCIATES, INC. minesandassociates.com
Would not disclose
Would not disclose
200,000
PERSPECTIVES LTD perspectivesltd.com
Would not disclose
550
300,000
COMPANY NAME & Web Address
COMPSYCH CORP. compsych.com ENI eniweb.com FEI BEHAVIORAL HEALTH feinet.com FIRST SUN EAP firstsuneap.com HEALTH ADVOCATE EAP+WORK/LIFE healthadvocate.com
Source: Companies. m ay / j u n e
2019
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47
CULTURE continued from page 36 American Express is another company that seeks to ensure its employees are satisfied with their benefits and compensation, said David Kasiarz, executive vice president, global total rewards and medical at the financial services company, which placed No. 40 overall in the 2019 Workforce 100 and ranked No. 1 in both the Benefits and Innovation categories. Work-life balance is one area of employee well-being that the company has infused in its benefits offerings and its overall culture. Employees should be able to excel in their career and thrive at home, Kasiarz said. Part of this means New York-based American Express offers a variety of benefits that appeal to employees at different stages of their career and their personal life — from tuition assistance to retirement and in between. “It’s because our colleagues are helping us to shape our programs and we are continually evolving Do your HR systems them that we don’t run into our initiaprovide data that enables you tives falling flat,” he to make talent decisions? said. “We are focused on evolving with the times. That is what motivates me. Being able to advocate for things that are meaningful to people.” Some ways to get that feedback include direct communications, focus groups and employee committees, he added. The organization also has a 20-week Yes No I don’t know gender neutral paid family leave policy that applies to all U.S. regular full-time and part-time employees Simply offering a traditional benefits program isn’t enough, though. “It’s one thing to launch a new policy. It’s another thing to have a culture that supports our colleagues and empowers them to take advantage of the benefits available,” Kasiarz said. Fathers, for example, are less likely to take advantage of paid family leave programs, he said. American Express addresses this by highlighting role models within the company.These include fathers who have taken 20 weeks of paid parental leave and still maintained their careers. “We’re hosting important and sometimes difficult conversations to talk about barriers and offering support to overcome them,” Kasiarz said.
FIGURE 4
45.70%
41.25%
13.06%
Andie Burjek is an associate editor at Human Capital Media. To comment, email editors@workforce.com.
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WF 100 continued from page 31 best support employees,” Shribman said. “We are committed to continuing to provide our employees with the environment, resources and experiences that meet their needs and help them realize their potential.”
Benchmarking Excellence Except for 2016 when they dipped to No. 14, Deloitte has held a consistent position in the top 10 on the Workforce 100. Based in New York, the professional services company counts 286,000 employees worldwide. Over the past five years, the company has continuously reshaped its HR operating model to keep up with an evolving workplace and workforce. Their focus has been channeled into modernizing their performance experience, promoting a culture of flexibility and well-being, and attracting, advancing and retaining women. Global Chief Talent Officer Michele Parmelee spoke to the challenges that have come along with maintaining consistent progress of these initiatives. “Achieving gender parity at each level of the organization is challenging for even the most progressive,” she said. “We are leaving no stone unturned.” As a company that serves employees across many different geographies and cultures, Deloitte has embraced the uniqueness of its workforce.The connection the company has to its diverse employee population comes with an environment that encourages authenticity. Thus, Deloitte’s main focus for employee experience has been to support its people in creating their own unique talent experience. “We want to create meaningful opportunities for each person to make an impact, grow, learn and lead at every point in their career,” Parmelee said. According to employee review site Glassdoor, Deloitte employees have noted that one of the most positive aspects of working with the company has been its work-life balance, which reflects Deloitte’s commitment to a culture of flexibility. “Deloitte places trust in people to decide when, where and how best to work,” Parmelee said. For instance, Deloitte’s unit in the United Kingdom offers a Work Agility program that combines formal and informal work arrangements to support a flexible schedule. Within the United States, Deloitte has expanded its fully paid family-leave policy to offer up to 16 weeks. “Wellness is also a major focus as we find it helps to build a sense of community and a sense of belonging,” Parmelee added.Their programs in Canada reflect this focus, where wellness centers deliver well-being services onsite to Deloitte offices in major metropolitan areas. These services include therapeutic treatments, team-building activities, and onsite quite space. “Effecting real change is not only a mindset but requires a daily commitment and deliberate action,” Parmelee said. Bethany Tomasian is an editorial associate at Human Capital Media. To comment, email editors@workforce.com.
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RISKS continued from page 16 vice supplier, specializing in providing consolidation and portability services to defined contribution plans. To protect Retirement Clearinghouse’s process, “There are certain things that we would not want to disclose” to a client, Ringquist said. “This is a middle ground that can accommodate both sides.” While SPARK’s standards help provide some level of assurance, industry experts agreed national standards are needed. “It is clear that the lack of cybersecurity expertise in the adviser community, the need for plan sponsors to protect participant data, and the lack of a uniform standard or process for third-party audits of cybersecurity measures all call for a solu-
tion,” the working paper said. Getting to that national solution for the retirement industry will be difficult, experts agreed. Issues including determining the regulator for cybersecurity, coordinating state and federal rules, possibly setting a required level of insurance coverage are all part of creating an overall solution. In addition, lawmakers will need to consider whether failing to protect plan data would result in plan sponsors breaking their fiduciary obligations. “The industry is looking for clarity on how to respond and distinguish different types of threats,” Taylor said. “Determining how and when to do what can be an extraordinary challenge.”
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LAST WORD
Rick Bell
A HISTORY LESSON FOR #FIXITSHRM FOLLOWERS
N
early a decade ago a well-intentioned group of HR It’s also caught SHRM’s attention to the extent where leaders banded together to dispute several Society for Taylor this spring doubled down on affirming SHRM’s reHuman Resource Management policies. lationship with the Trump administration as well as SHRM’s Not just some radical fringe group, the SHRM Members affiliation with Koch Industries, according to HRDive. for Transparency questioned issues tarnishing the organizaThat doesn’t necessarily bode well for #fixitSHRM’s tion’s integrity, from doubling board members’ annual hon- quest. Still, questioning the motives of SHRM’s relationoraria to allowing reimbursement for business-class travel to ship with those who do not share or represent their values wanting more board members who carried HR credentials. — and in the larger picture the values HR should practice These veteran HR leaders had the pull to garner media in every workplace — is inherently a good thing. attention as well as that of SHRM’s membership. And that I get their frustration. The Trump administration has caught SHRM’s attention. For a while, anyway. done most everything you don’t want in a company: constant turmoil and turnover among senior leadership, shunning of D&I, and if recent reports are true, attempting to dismantle the Office of Personnel Management, the federal government’s HR department for civilian employees. And your HR association is complicit with that? I’d be angry, too. Taylor’s response though makes it clear that sniping through social media won’t change anything, especially Fast-forward to 2019 and we find a loose-knit group of with the 800-pound gorilla known as SHRM.They won’t today’s HR professionals taking to social media to dispute alter relationships because a social media crusade dislikes SHRM’s ties with the Trump administration and relation- their ties with the Trump administration and a financial ships with politically conservative companies, most notably deal with Koch Industries. I’d also wager that a majority of the right-leaning Koch Industries. Like the transparency SHRM members either don’t care, are completely oblivigroup, these are issues they believe harm SHRM’s reputa- ous or actually agree with SHRM’s business dealings. tion and mission.The objectors call themselves #fixitSHRM. That means #fixitSHRM’s options to modify SHRM’s As we approach SHRM 2019 in mid-June in Las Vegas, operations are limited. But history may hold lessons that #fixitSHRM’s protests aren’t aimed so much at internal could offer hope for change. SHRM policies as the perception of what SHRM represents. The transparency group had the presence and panache The #fixitSHRM movement traces back to last August to draw SHRM into two meetings. SHRM then abruptly when relative unknown HR practitioner Victorio Milian chose to stop meeting. One transparency group member originated the hashtag. Later that fall he fired off a string of told Workforce at the time, “Their tactic was delay, delay, detweets explaining the hashtag’s purpose to protest SHRM lay. We realized that they weren’t going to change.” DisapCEO Johnny C. Taylor Jr. and SHRM leadership embrac- pointing, but if #fixitSHRM is serious they can still push ing the “white supremacist Republican administration.” for face time. It’s happened before. Illustrated by a smiling Taylor — now in his second year If you can’t get SHRM’s attention in the board room, as SHRM’s CEO — shaking hands with President Trump, there’s always the ballot box. Milian’s tweets continued, saying, “@johnnyctaylorjr shak“A SHRM member told me, ‘If you want to change the ing the current U.S. President’s hand was the spark that lit society, the way you should do it is change the board,’ ” said the #fixitSHRM movement. @SHRM’s ongoing silence Mike Losey, a former SHRM president and founding memto its members who are (rightfully, in my opinion), angry ber of the transparency group in a 2011 Workforce interview. and disappointed about this alliance continues to keep the Muster a slate of candidates, continue your barrage on fire burning. … In my opinion, @SHRM’s alliance does social media and get out the vote. It’s a long shot. And FYI, not represent the ethical leadership that #HRpros should the transparency group’s candidates never achieved its goal. be demonstrating.” History offers a sobering realization that it will take more Milian’s movement has garnered plenty of online sup- than a social media campaign to create change. Study the past, port. Among many others, @k_boulder tweeted in mid- #fixitSHRM. Blend it with what you know and perhaps April, “Altered videos to promote racist tropes fanning the you’ll succeed where Members for Transparency couldn’t. flames of hatred, & direction to underlings to break the law, promising no consequences. Ready to renounce this part- Rick Bell is Workforce’s editorial director. To comment, email nership yet, SHRM? #fixitSHRM”. editors@workforce.com.
SNIPING THROUGH SOCIAL MEDIA WON’T CHANGE ANYTHING, ESPECIALLY WITH THE 800-POUND GORILLA KNOWN AS SHRM.
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