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Riding the Wave of Minimum Wage

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Seattle recently adopted the nation’s highest minimum wage, raising an employee’s pay to $15 an hour. This represents a 60-percent increase from $9.25 and more than double the national average. Hold on – before anyone packs their bags to head to the Emerald City, finish reading.

This decision came soon after hundreds of employees from fast-food chains went on strike in hopes of forcing employers to pay a higher hourly wage. Although this more-money movement pushes to close the income-inequality gap and lower the poverty level, it may end up doing more harm than good. Even if minimum wages increase, small and large businesses alike threaten to release workers as a result.

The plan from Seattle Mayor Ed Murray would give companies with no more than 500 employees seven years to implement the new wages; larger companies would get three years. Whether the plan comes to fruition remains to be seen, but what businesses need to take away today is the value of each employee. As minimum-wage changes are implemented, companies will see their workforce drastically change, which directly impacts the value of their hiring process. Employers can use the increase in wages to their advantage, in order to create more revenue and a stronger overall business.

There are a number of things employers should understand as they move forward in this new per-hour era, but among the two most relevant are below.

  1. Everything is more expensive

 

The federal minimum wage is $7.25 an hour. In contrast, Seattle’s increase to $15 paints a bull’s-eye on organizations with high turnover rates. Research indicates the cost of firing an employee is, conservatively, 30 percent of his or her annual salary. When calculating full-time employees only, the payment cycle breaks down to:

  • $7.25 (federal minimum wage) x 40 (hours per week) = $290 a week
  • $290x 52 (weeks) = $15,080 a year

 

By these numbers, the off-boarding process can cost employers $4,524 per fired employee without breaking a sweat.

Managers realize how difficult it is to let an employee go, but they also understand the obstacles and costs of finding another suitable candidate. To replace anyone in your workforce is tedious and time-consuming. The on-boarding process involves paperwork, training and switching schedules to accommodate the newcomer’s lack of experience.

Although many may not notice, the minimum-wage level plays a crucial role in whether employers can afford to hire additional help. By raising the minimum wage to $15 an hour, the entire cost of the process is turned on its head. Below are the new numbers for employers to consider before taking action:

  • $15 (proposed minimum wage) x 40 (hours per week) = $600 a week
  • $600 x 52 (weeks) = $31,200 a year

 

The numbers never lie. Employers in Seattle will have to ask themselves if replacing one employee is worth approximately $9,360.

  1. You get what you pay for

 

From an employer’s viewpoint, one silver lining is that the door for new possibilities has been opened. The days of hiring the next person to walk in and scribble their name on an application are over. “Minimum wage” is synonymous with “minimal risk,” and as that figure grows, employers should realize that a candidate with only a high school diploma or GED may not be worth any risk. Raising the minimum wage allows managers to be more selective in whom they hire. In doing so, organizations can seize the opportunity to hire only those candidates who have the skills to rise up in the company, thereby granting organizations more assets, which in turn leads to business growth.

If the minimum wage should double nationwide in the coming years, managers also should double their efforts in hiring the right employees. Seattle’s situation already has demonstrated a ripple effect southward, as activists have gained ground in San Francisco and Los Angeles to raise the hourly wage to $12.82 and $15.27, respectively. Now more than ever, organizations and their management need to align their business practices with the changing pay landscape.

OK, now you can pack your bags. But don’t be naive: Raising the minimum wage to $15 may not necessarily correlate to a stronger economy. When it comes to the level of the minimum wage and the number of actual jobs, more could mean less.


aaron.santelmann

by Aaron Santelmann


Author Bio: A young and enthusiastic writer and researcher, Aaron is an instrumental member of Paycom’s lead generation and reporting team. Aaron is an engaging writer who maintains a strong presence on Paycom’s blog where he focuses on politics, government and compliance, tax guidelines and other employer regulations that impact businesses across the country. Outside of work, Aaron enjoys reading, exercising and spending time with his family.

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5 Reasons to School Your Workforce

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5 Reasons to School Your Workforce

Learning management systems (LMS) have become even more popular in the corporate workplace, and it’s not without good reason: They work.

In recent years, employees have become all too familiar with cumbersome or outdated training methods. According to Gallup, only 32 percent of U.S. employees are engaged in their work. The same study cites outdated training methods as one of the biggest reasons for disengagement. It’s not too late to upgrade to an easy-to-use training program that will engage your employees by keeping them up to speed on the latest organizational developments.

In addition to having more direct training options at your disposal, you are investing in an immediate way connect with an entirely new generation of employees. Seventy-five percent of millennial workers are eager to utilize online learning, which means now is the time to start thinking of innovative ways for workplace engagement. Online LMS technology allows employers to train their employees on anything, including new government regulations, through new media such as web videos, podcasts and interactive slides.

Why upgrade to a learning management system?

  • It’s instant.

Learning management systems give trainers and managers the means to quickly upload quick videos or PowerPoints for employees instantly. Once the upload is complete, the tools and trainings your employees need for their next steps are already at their fingertips. The time between building the training session and completion of the assignment is shortened to mere minutes.

  • It’s simple.

An LMS gives you the quick and intuitive tools needed to immediately train employees. Building a training session is as simple as pulling out your phone and recording a two-minute video before uploading and assigning it to your employees. Once you have approved the material, they will have immediate access to these trainings after logging into their employee self-service page from anywhere with an internet connection.

  • It helps your organization mitigate compliance risks.

We live in a work climate in which compliance regulations are in a constant state of ebb and flow. Many workers are required to receive mandatory training in areas such as health and safety, diversity, anti-harassment and bullying. Compliance training often requires a lot of box-ticking, and delivering this kind of instruction via traditional methods can be highly labor-intensive. With the recent FLSA overtime expansion ruling, you may need to educate your management staff quickly on what the new rule means for your company and what actions your company plans to take to aid their compliance efforts. Whatever the case may be, you need to have all of your employees on the same page, and an LMS provides the communication vehicle you need to add these new compliance standards to your online courses in minutes, all while giving you the ability to track and report on who has completed the training.

  • It’s flexible.

An LMS provides a number of options that employees can access in a direct and organized manner at any time. Thanks to the streamlined workflow and flexibility in the variety of content supported, you can upload videos, podcasts and other interactive content for employee training with ease.

  • It’s accessible everywhere.

One of the biggest benefits of an LMS is the accessibility it offers to employees; anywhere an internet connection is available. Your employees can access and share expertise at any time through their desktop or even on the go. To keep the training as simple and easy to access as possible, all of the courses are available in a single online location.

Here’s the good news. The process of utilizing Paycom’s LMS is quicker and less challenging than you might think. Activating Paycom Learning is not only going to help keep you up to date on compliance standards, but will switch you to a forward-thinking training program to further engage your employees.

It’s not too late to take that next step and join the future of instant e-learning. If you have struggled to keep your workforce engaged or are looking for a faster, more effective way to convey new requirements to your people, Paycom Learning is here to help, just in the nick of time.

 

DISCLAIMER: The information provided in this blog is for general informational purposes only. Accordingly, Paycom and the writer of the above content do not warrant the completeness or accuracy of the above information. It does not constitute the provision of legal advice, tax advice, accounting services, or professional consulting. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other professional services.


Holly Faurot

by Holly Faurot


Author Bio: Faurot, vice president of client relations, has served in a number of roles during her tenure at Paycom, including regional vice president, sales training manager and sales consultant. A born leader and a 2012 honoree in Oklahoma’s 30 Under 30 awards, she has helped a number of individuals and clients achieve success through her energetic spirit. The product of a dairy farm in Kenefic, Okla., Faurot was taught at a young age the importance of working hard, being honest and having a desire to help others.

The Elephant and Donkey in the Office

The Elephant and Donkey in the Office

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Policies on Political Activities at Work

The 2016 race for the White House has been intense, with candidates engaging in heated debates. As might be expected, the charged electoral atmosphere has permeated the workplace, causing record level divisiveness. According to the Society for Human Resource Management (SHRM), “over one-quarter of employees reported greater political volatility at their workplace in 2016 compared to previous election years.”

Political discussions easily can turn into arguments because people often view their political beliefs as part of their identity. To prevent political conflicts – which can negatively impact productivity and morale – many employers discourage political activities in the workplace.

First Amendment and the Public Sector vs. Private Sector

Public employees are governed by the First Amendment of the U.S. Constitution, which gives them rights to free speech in the workplace, though with some restrictions. But, contrary to popular belief, the First Amendment does not apply to the private sector and does not bar private employers from restricting employees’ political speech. With few exceptions, private employers can prohibit employees from engaging in political discussions at work.

Employers should examine state law, which may provide employee protections. For example, some states have off-duty conduct, free speech and political activity laws that give employees rights not offered under federal law. In addition, Section 7 of the National Labor Relations Act (NLRA) allows unionized and non-unionized employees to engage in protected political advocacy, as long as it relates to labor and working conditions.

Employers who permit political discussions at work should be careful that such conversations do not violate legally protected characteristics, such as race, age, gender, disability and religion – which could prompt complaints of harassment and discrimination from offended employees.

Can employers tell employees not to display political signs in their work space?

Private employers can tell employees not to post campaign signs in their cubicles and require they remove political signs from their work space – as long as they don’t breach applicable state laws or protected Section 7 NLRA rights.

How can employers address political activities at work?

If your organization does not have a policy on political activities, consider speaking with your attorney to determine whether it needs one. If you do have a policy in place, consider reviewing for compliance with applicable laws. Does the policy cover relevant areas, such as displaying political buttons on work clothing, making campaign calls on lunch breaks and using office equipment for political activities? Organizations that allow employees to talk about politics at work should aim for a policy that minimizes distractions and encourages respectful political discussions.


craymond

by Chad Raymond


Author Bio: With over 19 years of experience in employee engagement, benefits administration and government compliance, Chad has unparalleled knowledge in the fields of leadership and human resources. Chad has worked in several different capacities with Paycom including leading our product development team and HCM initiatives as well as the former director of Paycom’s service department. Chad’s vision and execution helped empower executives and their teams to reach their full potential, ultimately leading to his new role as Paycom’s vice president of HR.

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4 Ways to Make Your Employees Want to Come to Work

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How to Make Your Employees Want to Come to Work

Disengaged employees don’t feel motivated to work. A 2015 survey by Gallup revealed that 50.8 percent of American workers were not engaged in their jobs. Consequently, disengaged employees may arrive to work late, miss deadlines, submit poor-quality work, alienate themselves from co-workers or seek employment elsewhere.

While the employee could be solely responsible for his or her lack of motivation, in some cases, disengaged employees have a need that’s not being met by their employer. By recognizing and fulfilling this need, you can inspire them to arrive and perform up to standard. Here are four ways to accomplish this.

1. Offer challenging work that makes use of employees’ talents

According to a 2015 global survey by Right Management, 25 percent of employees reported that their top motivation for job change is to experience a different work culture with more challenging assignments. Stimulating projects make the work process more interesting,and push employees to keep learning and unlock hidden potential.

2. Provide transparent opportunities for advancement

High performers want to know that their career is progressing and that they will be given a fair chance at promotions. In a 2015 survey by Mercer, 26 percent of employees said their company does not make it easy to understand advancement opportunities within the company. 78 percent would stay longer with their current employer if their career path with the organization was clearly understood. To retain A-list workers, it’s important to develop and communicate advancement policies clearly.

3. Recognize and reward your employees

Near the top of Abraham Maslow’s hierarchy of needs is esteem, which precedes only self-actualization.

Maslow's Hierarchy of Needs

In the workplace, esteem deals with employees’ beliefs that they’re doing great work and that they should be recognized and rewarded for their efforts. Employees who are not compensated fairly or recognized for their hard work tend to move to greener pastures. According to a 2015 PayScale report, 65 percent of workers are quitting for more money. Studies also show that companies with strategic recognition programs have a lower turnover rate than those without a recognition program.

4. Get to know your staff

Getting to know your employees on a professional and personal level indicates that you value them not only as workers but also as individuals. The payoff is an employee-manager rapport that lends deeper insight into your employees’ motivations. You might learn:

  • Whether they like working for the company
  • Their personal likes and dislikes
  • How they feel about their manager and coworkers
  • Whether they enjoy their work
  • What projects they’re most suited for
  • Whether they’re satisfied with the equipment or technology they’re using
  • What resources they need to improve their performance
  • Their preferred working style, such as independently or in a team
  • Whether their personal life is interfering with their work
  • What exactly is demotivating them at work
  • What you can do to help

 

Disengaged employees are prone to being “no-shows,” which means someone else has to pick up the slack. A flight risk, they’re not above jumping ship without warning, which stunts organizational growth. While employees should be self-motivated, employers should also do their part by providing meaningful work, competitive pay, recognition, chances for advancement and a healthy work environment that fosters positive relationships.

 

DISCLAIMER: The information provided in this blog is for general informational purposes only. Accordingly, Paycom and the writer of the above content do not warrant the completeness or accuracy of the above information. It does not constitute the provision of legal advice, tax advice, accounting services, or professional consulting. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other professional services.



Author Bio: A writer, speaker and young business leader, Jason has been the communications pulse for a number of organizations, including Paycom. A featured writer on human capital management technology, leadership and the Affordable Care Act, Jason launched Paycom’s blog and social media channels, helping empower organizations around the nation. Jason is attuned to the needs of businesses and recently helped develop a tool to aid organizations in their pursuit to comply with the ACA; one of the largest changes in healthcare the country has seen. While working in athletics for ESPN and FoxSports, Jason learned the importance of hard work and branding. In his free time he enjoys adventuring with his family, reading and exploring new areas to strengthen his business acumen.

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