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The Biden Administration and Health Care

by | Jan 21, 2021 | Employee Benefits

With President Biden now officially sworn in, many business owners are wondering what the Biden Administration will mean for the COVID-19 response and health care in general.

In this post, we’ll discuss some specific anticipated impacts of Biden’s presidency on the country’s health care system:

  • COVID-19 Response and Impact on Health Care
  • ACA, Medicare, and Medicaid
  • Drug Pricing
  • Billing and Pricing Transparency

COVID-19 Response and Impact on Health Care

Biden has indicated that he plans to increase the federal government’s role in the pandemic. He plans to lead a response focused on increased access to treatment, testing, and personal protective equipment (PPE). If necessary, he may implement mandates and mitigation strategies.

Most of the solutions that Biden has proposed to control the pandemic fall under one of the following categories:

  • Increase testing
  • Address PPE shortages
  • Distribute vaccines and treatments
  • Establish additional protections for high-risk and older Americans
  • Work with local authorities on public health measures
  • Offer federal relief

As the Biden administration takes over the domestic COVID-19 response, it hopes to improve the relationship with the World Health Organization (WHO). Biden believes this relationship was damaged by the Trump administration.

Biden has already built a COVID-19 response team and his team has begun movement on vaccine and mask initiatives. Potential federal mandates may face opposition. Conversely, increased federal aid and initiatives from the federal government to increase testing, treatment, and PPE access will be met with broader support.

ACA, Medicare, and Medicaid

President Biden hopes to address and expand health care access. Most of his agenda either fits into or supplements an expansion of the ACA, which is understandable since the ACA was one of Obama’s signature accomplishments while Biden was Vice President.

Due to potential congressional gridlock as a result of a divided congress, employers should expect to see roadblocks on Biden’s mission to expand the ACA, Medicare and Medicaid. However, it’s still worth taking a closer look at some of Biden’s health care priorities:

ACA

If the ACA is struck down by the challenges it is facing in the U.S. Supreme Court, the Biden administration would be expected to work toward a replacement. If the ACA is upheld by the courts, the Biden administration is expected to move forward with expanding the ACA. An expansion would include offering a public option and enhancing Medicaid and Medicare.

Public Option

Another Biden proposal is to offer a public option to compete with private markets. The public option would sit on Marketplace exchanges alongside private plans and be available to the public—even if employers offer coverage. President Biden’s ultimate goal with such a public option would be to create lower prices through price negotiation.

With the addition of a public option, small businesses might not need to offer coverage. However, private insurers would certainly be challenged by having to compete against a federally subsidized alternative.

Medicare

Biden has made it clear that he intends to lower the Medicare eligibility age from 65 to 60. If successful, it could increase participation in the Medicare program by 20 million people.

Medicaid

President Biden will seek an expansion of Medicaid, aiming to provide access to almost 5 million additional individuals. States that have already expanded Medicaid (which several have done in recent years) would have the choice of moving the expansion population to the public health care option as described in the previous ACA section, provided they continue to pay the cost of covering those individuals.

Ultimately, Biden hopes to ensure that people making below a certain percentage of the federal poverty level are covered. Biden would also try to create a program to facilitate automatic Medicaid enrollment for eligible participants.

Tax Credits

Biden hopes to expand tax credit eligibility for families who enroll in health coverage through the Marketplace. The current requirements to receive tax subsidies include a household income no higher than 400% of the federal poverty level. Biden would hope to achieve his plan by eliminating the current 400% income cap on eligibility, which would offer more families access to these tax credits.

Biden also hopes to lower the income cap that a family puts toward health care premiums from 9.86% to 8.5%. If a family has employer coverage but can get a better deal with the 8.5% cap on their premiums, they would be eligible under Biden’s plan to switch to a health care plan on the Marketplace.

Drug Pricing

Drug costs have been increasing for consumers in recent years, and President Biden hopes to reverse that trend. Some specific strategies that Biden has proposed are as follows:

  • Medicare drug pricing negotiation—Biden supports a requirement for drug corporations to negotiate with Medicare over drug prices. Biden wants this negotiated rate to be accessible for private plans. Federal programs would likely be the driving power behind these negotiations.  
  • Drug price increase limits and new drug monitoring—Although this will clearly face opposition, Biden hopes to limit the ability of drug companies to increase prices. If successful in this effort, Biden would establish a board to oversee prices and recommend reasonable prices for new drugs.
  • Drug Importation —By using the U.S. Department of Health and Human Services to put controls in place to ensure safety, Biden would like to import drugs from foreign markets to increase supply and therefore reduce costs.

Both sides of the political aisle seem to understand the need to reduce drug costs, so it is possible that Biden will have support from Republicans with these efforts. However, we can expect that Biden’s prescription drug proposals will face strong opposition in Congress and from the private sector.

Billing and Pricing Transparency

The final health care related issue that we’ll briefly discuss in this post is billing and pricing transparency. Surprise billing occurs when a consumer receives care that is unknowingly not covered under their health care plan. A common example is when a patient goes to an in-network hospital but doesn’t realize that a specialist at that hospital is not part of their health plan. Biden’s strategy to combat surprise billing is to prohibit health care providers from charging patients out-of-network rates when the patient has zero control over which provider they see.

Such an initiative may have bipartisan support, as efforts to limit surprise billing were also part of the Trump campaign. Both sides of the political aisle want to see increased transparency in health care pricing and billing.

Key Takeaways

Business leaders will want to pay special attention to what unfolds in the health care world as President Biden now holds office. Fortunately, Biden has left some clues as to what we might expect from his new efforts:

  • Biden has a vision to increase health care access through programs such as Medicare, Medicaid, ACA, and a public health care option.
  • Biden seeks to reduce prescription drug costs.
  • Biden supports efforts to make billing and pricing more transparent.

What Employers Should Know as the COVID Vaccine Becomes More Widely Distributed

by | Jan 21, 2021 | COVID-19 Resources

Multiple COVID-19 vaccines are now being distributed across the world. Initial reports indicate that distribution has been slow, but the pace will surely pick up in coming weeks as more vaccines are produced. The vaccine is the light at the end of a dark tunnel that lasted for the majority of 2020. Many employers are optimistically looking forward to their employees receiving the vaccine, as it will allow operations to return to some form of normalcy.

In this post, we’ll cover the most important things that employers need to be aware of when it comes to COVID vaccine distribution and timelines. Specifically, we’ll cover:

  • Phases and Priorities for COVID Vaccine Release
  • Legality of Mandatory Vaccines
  • Strategies to Encourage Employees to Receive the Vaccine
  • COVID Vaccine Coverage

Phases and Priorities for COVID Vaccine Release

It’s helpful to think of COVID vaccine distribution in three phases:

  • Phase 1: Potentially limited supply of COVID-19 vaccine doses available – During this phase with a limited supply of vaccines, efforts will be concentrated on vaccinating priority populations (we are currently in the midst of Phase 1).
  • Phase 2: Large number of vaccine doses available – During the second phase, enough vaccinations will be available to vaccinate the general population.
  • Phase 3: Sufficient supply of vaccine doses for entire population (surplus of doses) – During the final phase of vaccine distribution, the focus will be on ensuring equitable vaccination access and continual monitoring of COVID-19 infections.

Even more important than understanding the general phases of vaccine distribution is an understanding of which populations are being prioritized for the vaccine. The following groups of people are considered the top priority for vaccinations:

  • Healthcare personnel (paid and unpaid persons serving in healthcare settings who have the potential for direct or indirect exposure to patients or infectious materials)
  • Non-healthcare essential workers
  • Adults with high-risk medical conditions who possess risk factors for severe COVID-19 illness
  • People 65 years of age and older (including those living in LTCFs)

Legality of Mandatory Vaccines

Many employers are likely wondering if they can require that their employees get the vaccine. According to the U.S. Equal Employment Opportunity Commission (EEOC), a federal agency that administers and enforces civil rights laws against workplace discrimination, here are some things that employers CAN do:

  • Require employees to receive COVID-19 vaccinations
    • However, employers may need to accommodate certain refusals. We’ll explain more about this later in this section.
  • Ask employees if they have COVID-19 or relevant symptoms.
  • Screen applicants for COVID-19 symptoms after making conditional job offers. 
  • Require employees to stay home if they have COVID-19 or its symptoms. Requiring medical notes before returning to work is permissible.

Employers should know how vaccines relate to the American’s With Disabilities Act (ADA). Under the ADA, vaccines are considered a medical exam. For an employer to mandate vaccines, they must be job-related and consistent with business necessity. The ADA also allows employers to require that their employees undergo certain health screenings and inquiries depending on the state of employment.

We’ll conclude this section by listing some reasons that individuals may be exempt from a vaccine mandate:

  • Certain disabilities
  • Pregnancy
  • Religious beliefs

Medical documentation can be requested for disabilities and pregnancy.

Before you implement a vaccine mandate at your company, you should consult with your HR leadership and ideally your legal council to make sure you have an agreed upon strategy for managing vaccine exemptions.

Strategies to Encourage Employees to Receive the Vaccine

As explained in the previous section, employers do have the right to require that employees receive the vaccine. However, this doesn’t necessarily mean that they should. A better strategy might be to encourage vaccination rather than requiring it. Requiring the vaccine has the potential to cause serious issues, especially if a large number of employees refuse to comply with the mandate.

Consider the following simple strategies for encouraging vaccination:

  • Subsidize the cost of vaccines.
  • Allow paid time off to go get vaccines.
  • Offer vaccines at the workplace to reduce any inconvenience.

Your local health department has most likely already created vaccine-related educational content that can be shared with your employees to inform them about the facts related to the COVID vaccines.

COVID Vaccine Coverage

An interim rule was passed by several federal government entities on November 6, 2020 that will require Medicare, Medicaid, and private insurers to cover a COVID-19 vaccine without any cost sharing.

For private health plans, this rule implements a requirement in the Coronavirus Aid, Relief and Economic Security (CARES) Act that plans provide coverage (without cost sharing) for qualifying COVID-19 preventive services. COVID-19 immunizations are considered preventive services.

Additionally, plans and issuers must cover qualifying COVID-19 preventive services during the entirety of the COVID-19 public health emergency without cost sharing. This is true regardless of whether an in-network or out-of-network provider delivers the preventive services.

The bottom line is that your business’ healthcare plan will be required to cover COVID-19 preventive services, including the vaccine, with no cost sharing.

Key Takeaways

Employers should know that vaccine distribution will take place in three phases. Unless you are a healthcare, education, or frontline-worker based organization, your employees will probably receive the vaccine during the second phase.

Priority populations for vaccination during the first phase are:

  • Healthcare personnel
  • Non-healthcare essential workers (i.e. frontline workers)
  • Adults with high-risk medical conditions
  • People 65 years of age and older

Vaccine mandates for employees are permissible under the EEOC and ADA. However, you should be aware of certain exemptions based on disabilities, certain health conditions like pregnancy, or religious beliefs. Before a mandate in implemented, employers should have a plan in place for dealing with these exemptions.

As a general best practice, it may be wiser to encourage vaccination rather than require it.

Rules approve by several federal agencies require that Medicare, Medicaid, and private insurers cover COVID-19 preventive procedures with no cost sharing. This includes vaccination.

This blog post has been a summary of the most important things employers should know about vaccine distribution. If you are in need of a more detailed breakdown of this topic, download our complete eBook: COVID-19 Vaccine Playbook for Employers.

COVID-19 Burned Out HR Leaders Everywhere: Here’s How to Help

by | Jan 14, 2021 | Compliance, COVID-19 Resources, Human Resources

Many HR professionals would agree that the year 2020 was the most challenging year to date when it comes to managing human capital effectively. The COVID-19 pandemic forced businesses to adapt in a variety of ways, including restructuring workforces, transforming product offerings and operations, and doing everything possible to keep businesses open while physically distancing employees from one another. These challenges, among many others faced during the ongoing COVID pandemic, has led to burnout among many HR professionals.

We’ll address HR employee burnout in this post. Specifically, we’ll discuss:

  • Identifying the Issue
  • What HR Leaders Can Do to Improve the Situation
  • How Company Leadership Can Better Support their HR Team Moving Forward

Identifying the Issue

As an HR leader, you need to be able to understand burnout in yourself, your HR teammates, and all employees at your company.

HR professionals are often expected to be the most empathetic people in an organization. If someone is having a stress/anxiety or interpersonal related issue, HR will often be their first stop. This can lead to something called compassion fatigue. Showing empathy is a skill, but it’s not an easy one. Even the most empathetic people can feel drained of energy when they are showing compassion to multiple people in a short amount of time. This is one of the primary reasons that so many HR professionals are feeling burnout.

During 2020, HR was asked to make a lot of hard decisions. They were also charged with communicating these decisions to employees. Telling everyone that they need to work from home and isolate themselves from as many people as possible is no easy task. And in worst case scenarios, HR leaders were tasked with implementing large-scale furloughs or layoffs. On top of this, federal regulations became a moving target for HR leaders during COVID. Adapting to FFCRA in the midst of transitioning to remote work or altered operations was a super challenging task. After making these tough decisions, dealing with any pushback from staff, and navigating incredibly complex compliance challenges, it’s no wonder that burnout has become so common for HR employees.

What HR Leaders Can Do to Improve the Situation

As an HR leader experiencing burnout, it may be time to consider burnout best practices that could apply to anyone in your workforce. Think about the advice that you would give to any non-HR employee who might approach you with concerns about feeling burned out. What would you tell them? Take that advice, and apply it to yourself. Here are some things you might consider:

  • Don’t be afraid to take time off. HR employees too often feel like they have to be extra conservative with their vacation days. They feel like they have to set an example of when it is or is not appropriate to take time off. Throw this idea out the window! If you are experiencing burnout and you have PTO available, use it! Even if travelling is unrealistic right now due to COVID, taking a few days off and spending time exercising, doing hobbies, or relaxing with family and friends can go a long way towards quelling burnout.
  • Find a listening ear. It’s very possible that the employees best equipped to listen and show empathy about employee burnout are your HR coworkers. If you don’t feel comfortable discussing your burnout with them, reach out to friends you have in the industry. Think about who you worked with at a previous job, who you met at a conference in recent years, or someone you might be connected with on LinkedIn. Join and online community of HR leaders in your local area. You’ll be surprised at just how willing people in your professional network will be to help you by listening to your challenges and providing guidance.
  • Ask for the help you need. Most importantly, don’t be afraid to ask for help when you need it. HR employees don’t need to be examples of perfection. It’s okay to feel down and unmotivated during these troubling times. There is no shame in this. Whatever help you need, get it. A few months or years from now, you’ll thank yourself for doing whatever it took to get yourself back on track using healthy strategies.

How Company Leadership Can Better Support their HR Team Moving Forward

As counter intuitive as this might sound, HR isn’t always equipped to solve every people-related challenge in the workplace. Often the support of company leadership – the CEO, Founder, President, etc. – is needed.

Company leadership should go above and beyond to acknowledge HR accomplishments during this difficult time. Awarding the “employee of the month” title to someone in HR, sending a hand-written thank you note, or even a “shoutout” included in an internal company communication will go a long way towards making your HR team feel recognized for the hard work they have performed over the last year. Could you go as far as gifting your organization’s HR leader a gift certificate to a spa or have lunch delivered to their home form their favorite restaurant? Get creative in showing your HR teammates just how much their effort means to your company during this challenging time.

Also important, company leadership should consider potential gaps in employee benefits. Could your employee assistance program be expanded? What does your company’s mental health coverage lack? Understanding these gaps in benefits and acting on them will go a long way towards ensuring your entire team’s mental and physical health are cared for, and especially your HR staff during this challenging time.

Key Takeaways

Burnout among HR employees is becoming very common in the wake of the challenging year 2020. Compassion fatigue, combined with the weight of having to make and communicate so many challenging decisions, are the primary reasons for this burnout. HR employees can help themselves overcome burnout by doing the following:

  • Don’t be afraid to take time off.
  • Find a listening ear.
  • Get the help you need.

Company leadership should also take the initiative to help their HR team overcome burnout. Two ideal strategies for achieving this are:

  • Going the extra mile to make sure HR is acknowledged and thanked for the challenging work they have been performing over the last year.
  • Ensure that there are no gaps in benefits coverage that are limiting your team’s ability to take care of themselves and their mental health.

Launchways Provides HR Leaders the Support They Need So They Can Focus on Strategic Initiatives

At Launchways, we partner with organizations to help alleviate the administrative and compliance burdens placed on HR professionals. With Launchways’ support, HR leaders have more time to work on strategic initiatives rather than getting bogged down by tactical day-to-day items. Learn more about how Launchways helps HR leaders.

The Most Common Payroll Mistakes Your Startup Is Probably Making

by | Jan 14, 2021 | Compliance, Human Resources, Payroll

Having smooth payroll processes in the foundation of smooth people operations. As much as your team likely enjoys their roles, it’s the regular paychecks that keep them coming back to work every day.

Conversely, if your payroll processes have errors or inefficiencies, it can wreak havoc on employee morale. Your employees will never know if the next paycheck will be on time and accurate. At startups where lean teams are tasked with throwing payroll on their to-do list, it’s all-too common for critical errors to be made.

In this post, we’ll cover:

  • What are Some Common Payroll Mistakes?
  • How to Avoid Common Payroll Mistakes
  • Outsourcing Payroll to Mitigate Payroll Risk

What are Some Common Payroll Mistakes?

There are several mistakes that are commonly made with inexperienced or overworked teams tackle payroll.

  • Misclassifying Employees: Tax laws and benefits contributions are generally different for independent contractors than they are for traditional, in-house employees. If an employee is classified incorrectly, it could cause inaccurate contributions towards benefits and taxes. These types of errors can cause significant headaches for both the employee and the employer as they attempt payroll corrections post-processing.
  • Failing to Send Tax Forms: Sending out your W-2 and 1099 forms as early as possible after the start of the calendar year can go a long way towards making tax season easier on your employees. On the other hand, if it’s late January and your employees have not receive all the forms they need to complete their taxes, they may be left feeling frustrated and anxious. Remember, many of your employees may be expecting significant returns. If you fail to send out tax forms in a timely matter, you’ll be delaying that refund.
  • Failing to Keep Complete Records: The Fair Labor Standards Act (FLSA) requires that employers keep three year’s worth of payroll records. The law requires that these records include number of hours worked, pay rates, payroll processing dates, and other key information. In order to protect your company from potential fines and lawsuits, be sure that your payroll recordkeeping practices are functioning properly. Also, be sure to check the local payroll recordkeeping laws where your business is headquartered. Some states require that records be kept for over three years.
  • Missing Key Payroll Deadlines: Processing payroll is a highly time-sensitive matter and issues with updating entries, working with banks, and more, can cause unexpected delays. Processing payroll just one day late could cause extreme financial issues for your employees, especially for those who are living paycheck to paycheck. Many startups believe they have a concrete plan for ensuring payroll is processed on time each cycle, but they often aren’t prepared for unexpected or irregular issues that come up.
  • Failing to Accurately Calculate Pay: The final common payroll mistake that we’ll address in this post is perhaps the most significant. Accurately calculating payroll is more complicated than simply multiplying an employee’s hourly rate by the number of hours they worked. When you factor in overtime, commissions, deductions, and PTO, calculating the gross pay for an employee suddenly becomes very complicated. Nothing will make your employees lose confidence in your company faster than receiving an inaccurate paycheck. Work with your whomever on your team is tasked with payroll to make sure all payroll systems and data entered are up to date. As we’ll discuss later in this post, you may even consider outsourcing your payroll to ensure accurate calculations and timely deposits.

How to Avoid Common Payroll Mistakes

There are a few steps that you can take to avoid making the common payroll mistakes we covered in the previous section:

  • Keep a simple checklist of payroll processes. Even though your payroll process should be largely automated with technology, you should still have a detailed checklist that you can use to make sure payroll is processed accurately each cycle.
  • Consider running certain reports prior to payroll processing. Running reports like a deductions summary, payroll register, and cash requirement is a great strategy to catch any preexisting errors before they pollute the payroll cycle.
  • Don’t hold back when it comes to investing in payroll tools. Consult with your HR staff to determine if your payroll systems and technology are modern or out of date. Implementing the right Human Resources Information System (HRIS) for your business can easily make the difference between successful and unsuccessful payroll processing.
  • Make sure you fully understand what payroll is, especially if you don’t outsource your payroll. As a business leader, you should fully understand the payroll process from start to finish. If you can’t walk through the entire process in detail, don’t be surprised if you experience a payroll error sooner rather than later.

Outsourcing Payroll to Mitigate Payroll Risk

In order to avoid making costly payroll mistakes, consider outsourcing your payroll to an expert third party provider. Outsourced payroll providers are experts in all things payroll-related.

As a business owner, you constantly must worry about all aspects of your business. Marketing, finance, accounting, growth, investments, recruiting, onboarding, acquisitions, mergers, etc…the list could go on and on. Why add payroll—which is such a complex and crucially important task—to that list? Outsource your payroll so that you can focus on what matters most – growing your business! Hand off your payroll to a professional with years of experience avoiding and mitigating payroll risk.

Launchways is your trusted payroll partner. Get in touch with us about our payroll solutions today.

Key Takeaways

Some of the most common payroll mistakes are:

  • Misclassifying employees.
  • Failing to send tax forms.
  • Failing to keep complete records.
  • Missing key payroll deadlines.
  • Failing to accurately calculate pay.

To avoid these mistakes, consider doing the following:

  • Keep a simple checklist of payroll processes.
  • Run certain reports prior to payroll processing.
  • Don’t hold back when it comes to investing in payroll tools.
  • Make sure you fully understand what payroll is, especially if you don’t outsource your payroll.
  • Consider outsourcing your payroll to an expert payroll services provider.

What Employers Need to Know About the Second Round of PPP Loans

by | Jan 13, 2021 | Compliance, COVID-19 Resources

On Monday, Jan. 11th, The U.S. Department of Treasury and the U.S. Small Business Administration began accepting applications for the second round of Payment Protection Program (PPP) loans. This second round will continue until Mar. 31st, 2021.

Both new borrowers and certain existing borrowers are eligible for the second round of PPP loans. Now that applications have started, business leaders need to be prepared to follow the new requirements.

Information About the Second Round of PPP Loans

The rules for the second round of PPP Loans are, in many ways, similar to the initial round. That said, there are certain updates to the first round of funding that employers should be aware of. According to the U.S. Department of Treasury, the key updates include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, and direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

Last year, the U.S. Small Business Administration (SBA) covered six months of payments on loans that existed as of Mar 27th, 2020  in addition to any new loans issued before Sep. 27th, 2020 under the CARES Act. Under the new bill, beginning in February of 2021, these same borrowers will receive an additional three months of payments from the SBA.

Additionally, for existing borrowers as of Dec. 27th, 2020, the new bill provides another five months of payments for industries that were hit the hardest by COVID-19. Other temporary changes include a guaranty increase from 75% to 90% and fee waivers through Sep. 30th.

Am I Eligible for a Second PPP Loan?

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts for any quarter in 2020 compared to 2019.

Those who are eligible can apply for up to 2.5 times the borrower’s average monthly payroll for 2019 or 2020, with a limit of $2 million. It’s important to note that this maximum is substantially less than the first round of the program which set the limit at $10 million.

Industries that were hit the hardest by COVID-19 (Accommodations, Food Service, etc.) can qualify for loans up to 3.5 times the borrower’s average monthly payroll.

What are the Rules for PPP Loan Forgiveness for Second Draw Loans?

While the application process will likely be easier for most, the forgiveness rules are, for the most part, the same as they were for the first round of PPP loans. Borrowers are eligible to have their loans forgiven in full provided they use the funds for eligible costs within the covered period (8-24 weeks from loan disbursement).

A minimum of 60% of the PPP loan must have been spent on payroll costs in order to qualify for full forgiveness. The rest can be used for business mortgage interest payments, rent, utilities, or other expenses under the new stimulus bill, such as specific operation expenses, supplier costs, and worker protection expenses. 

Please note: in order to receive maximum loan forgiveness, detailed documentation of PPP spending is necessary, including paid checks, payroll documentation, receipts, and billing statements.

What is the Process to Apply for Loan Forgiveness?

The U.S. Small Business Administration has until Jan. 20th, 2021 to develop forms and instructions for a forgiveness application for loans of up to $150,000. Borrowers who qualify will be required to include details about the number of employees retained and the amount spent on payroll in addition to signing and submitting the form.

Borrowers must also attest to the accuracy of the certification and compliance with PPP requirements. Simplified forgiveness applications will not require supporting documentation, however, they must be retained for up to four years for future review by the SBA. The new PPP program launched this week does not change the forgiveness process for loans over $150,000.

What’s Next?

Employers should review the criteria for this second round of PPP loans. Employers considering applying should prepare and have on hand all relevant documentation.

We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary. For more information and support, contact Launchways.

Actionable Strategies Employers Can Use to Keep Employees Connected & Engaged During Remote Work

by | Dec 23, 2020 | COVID-19 Resources, Leadership

At the beginning of 2020, working from home was often viewed by employers and workers as a privilege that few were able to take advantage of regularly. By the end of this year, remote work has become an accepted and, at times, a dull reality of life as the COVID-19 pandemic continues on.

While working from home offers employees new benefits such as a more flexible schedule (and often a more comfortable wardrobe), many have reported feeling mentally and socially disconnected from their team or organization. As impromptu discussions in the hallway and the ‘meeting after the meeting’ are no longer available socialization options to employees, these feelings of isolation are understandable and natural side effects of working in virtual silos. However, if these feelings of detachment are left unchecked, they can lead to obstacles in employee productivity and overall happiness, which may ultimately result in major inefficiencies or unwanted employee turnover.

Today I’ll cover:

  • Creating the right environment for remote employees
  • Ideas for strengthening team camaraderie in the virtual environment
  • Fostering an Encouraging Atmosphere

Overcommunicate In Order to Avoid Confusion

Working from home has required employees to be more proactive and intentional when communicating with one another in order to avoid unnecessary conflict. In a remote environment, communication between colleagues is often reduced to written messages via email, text, or chat. Without vocal cues or body language to contextualize the sentiment of your message, recipients can easily misinterpret your meaning or intention, leaving them feeling anxious or frustrated. In order to negate these unnecessary misunderstandings, it is important to be extremely clear about what you’re trying to say.

For example, a short email that reads “Please do this again” may sound like a straightforward message, but its curt nature may be interpreted by the recipient as “The work you submitted was subpar and I am frustrated that you’re not getting this right.” Instead, surround your directive with encouraging language to both build the confidence of the recipient while being specific about what parts of the work need to be redone. This is especially important when a power dynamic is involved, i.e. a conversation between a manager and their employee. A more productive version of your email could read “I thought you did a nice job with this work project. However, XYZ needs to be redone in order to [insert rationale].” By being mindful of your word choice now, employers can avoid addressing unnecessary concerns or fears their employees may be having later on.

Make Meetings More Meaningful & Avoid Meeting Fatigue

While in-person interactions are currently prohibited in the interest of employee health and safety, virtual interactions through streaming video are a great way to foster connection between employees. Many companies have invested in software solutions like Zoom or Microsoft Teams that teammates can access from home to provide a safe alternative to in-person meetings. However, many employees can choose to turn their camera off during meetings. In order to create clearer channels of communication,

consider requiring everyone to turn their cameras on during virtual meetings to increase attentiveness and foster more authentic conversation. Keep in mind that meeting fatigue is a real phenomenon, and remote work can exacerbate this frustration since all meetings are now conducted in the same virtual and physical space. While managers may intend for increased virtual face time to foster a sense of connectedness, too many virtual meetings can ironically work against efforts to increase group affinity, resulting in employees feeling mentally drained and less willing to meaningfully contribute to the group discussion. Try to reduce unnecessary meetings to avoid leaving your employees feeling burnt out.

Dedicate Time for One-on-One Conversations

Finally, there may be questions or concerns that employees don’t feel comfortable sharing in a group setting. As busy managers notoriously have full schedules during the workday, it can be hard for employees to find time to bring their concerns to their manager’s attention, and they may even question whether their topic is important enough to warrant a discussion. It’s important that employees feel heard and valued, especially in a remote setting where messages can easily be misconstrued. Managers can be sure that employees are supported by holding dedicated and recurring virtual office hours where employees are welcome to bring up topics important to them. By proactively making themselves virtually available to employees, managers can forge stronger connections with their direct reports and strengthen team buy-in.

Steps to Strengthen Your Team’s Bond

Making time and virtual space available for socialization is crucial to retaining a strong and connected workforce. In order to maintain trust and a sense of camaraderie among employees, managers have been forced to get creative with group interactions that are outside the scope of work-related tasks and projects.

High-energy and engagement group interactions like virtual trivia sessions, games, and quizzes can enable team members to create deeper ties with one another. Examples of fun and easy games are “two truths and one lie” or home scavenger hunts. For a more relaxed approach, managers can hold virtual happy hours or craft nights on a weekly or monthly recurring basis, where team members can get together to participate in a shared and casual activity. To keep employee morale high, introduce an interesting question that all attendees must answer or ask team leads to acknowledge a specific employee for the good work they have recently done. Note that employers don’t have to facilitate all of these informal meetings either- in fact, managers may find that extending ownership of workplace culture to employees helps to foster a stronger sense of unity (and additional creative ideas).

Finally, it’s important to repeatedly remind your management team and employees that we are living through an unexpected time during which whole organizations have had to make accelerated and major adjustments in order to continue functioning. While some organizational expectations may remain the same, other look very different. For instance, work must still be submitted on time but wearing a sweatshirt to a meeting is now permissible. Emphasize patience and understanding to managers and employees alike, as each individual is dealing with their own unique set of professional and personal challenges in the face of remote work during this global pandemic.

Key Takeaways

Remote work is not without its challenges. However, managers armed with proactive solutions and creative ideas for team building are better situated to foster a strong sense of employee connection in the face of social isolation. Remember:

  • Leverage clear and careful language in emails/texts and use video when possible to contextualize your message and avoid misunderstandings
  • Look for creative ways to foster a sense of unity on your team through virtual interaction without creating meeting fatigue or employee burnout
  • Extend grace to all and make yourself available to employees to increase feelings of trust and validation in employees

Speak with Launchways for more virtual workplace guidance, including resources for employees who are struggling with isolation during COVID.

HR and Finance Have More in Common Than You Might Think

by | Dec 23, 2020 | Leadership

One of the keys to success in any organization is diversity. Diversity of thought, diversity of backgrounds, diversity of age, and diversity of gender can all contribute to generating ideas and strategies that will give you a competitive edge.

Having multiple departments, as most companies do, provides a natural diversity of skillset within an organization. Your IT leaders possess a different skillset than your sales team. Your marketing and public relations employees have talents that your accountants never will, and vice versa. Having all of these skilled people working for your company is ultimately what will lead you to success. However, there will also be occasions in which these skillsets clash.

The HR and finance leaders within your company possess important – but seemingly contradictory – skillsets that are both critical to the success of your organization.

In this article, we’ll discuss the following:

  • What HR and Finance Have in Common
  • Key Differences Between HR and Finance
  • Bridging the Gap Between HR and Finance

Key Differences Between HR and Finance

Let’s start off by discussing some key differences between the two departments.

The first and most obvious difference is that HR is focused on human capital, while finance is focused on monetary capital. Your HR leaders are probably much more willing to pull out the check book to invest in employee training and development. Finance, on the other hand, might have a hard time quantifying the return on investment of such activities. Employee discipline or internal conflicts between coworkers are the things that keep HR leaders up at night, whereas finance is more likely to be troubled by cash flow issues. When it comes to big picture decisions, finance will be considering the bottom line, while HR will be thinking about employee morale.

Another key difference between the two departments is the language that they speak. The jargon and acronyms that either team uses will surely be hard to understand by the other. When finance talks about AIR, APR, and CDs, don’t expect HR employees to catch on to what they are saying right away. The same thing applies when HR folks are discussing COBRA, FMLA, FFCRA, and DOL. Business leaders should be prepared for this language difference when trying to bridge the gap between HR and finance. Don’t be afraid to slow the conversation down and translate when needed!

What HR and Finance Have in Common

Before we talk about how to bridge the gap between HR and finance, let’s acknowledge some things that the two departments have in common.

First of all, both departments care about the success of your company. HR leaders will be ecstatic when the company reaches financial goals, and finance leaders will be just as thrilled when the company hires and retains top recruits to join the team. When the company is successful, revenue will increase and everyone will make more money. It’s a win-win for everyone – both sides can agree on that.

In the modern workplace, both HR and finance depend on technology and data. Unless you’re leveraging outdated systems, both departments will integrate numerous technology platforms into their systems to improve efficiencies and data understanding. These platforms are based in the cloud more often than not. It’s always been a no-brainer that finance relies on data. HR’s reliance on data has become much clearer in recent years as employers strive to improve benefits packages as well as recruit a more diverse workforce.

Finally, remember that both departments have very complex jobs. Managing human capital is an extremely challenging task, especially in the modern world of pandemics, social justice, and a renewed focus on equity. Navigating the economic impacts of COVID-19 and the corresponding financial fallout on your company is an equally challenging task for finance.

Bridging the Gap Between HR and Finance

Utilizing technology is the best way to bridge the gap between HR and Finance. Ensure that HR understands the basics of what technology finance uses, and vice versa. Whenever possible, get HR and finance on the same, integrated systems. Set up a meeting with both departments, as well as IT, to talk about what platforms exist that can handle both HR and finance processes.

The advantage of using technology to bridge the gap is that technology should have no bias. For example, if an HR employee understands what technology finance is using to make investment decisions, they are more willing to trust that decision. When a finance employee understands what technology HR is using to make strategic talent decisions and investments, they’ll believe that HR is doing everything possible to best invest company dollars.

Make sure both departments are involved in the big picture, strategic decisions that guide the direction of your company. Giving both parties the opportunity to share their perspective from day one of strategic planning will help them know that company leadership is trying its best to meet their needs.

If all else fails, try falling back on the similarities between HR and finance that we discussed in the previous section. Regularly reminding your staff from these two departments about what they have in common can help them see how the success of their counterparts will benefit themselves as well. Consider developing some teambuilding activities or discussion guides to facilitate this type of conversation with your employees.

Key Takeaways

Business leaders should understand that the employees in HR and finance have different skillsets and perspectives. Key differences include:

  • HR is focused on human capital, while finance is focused on monetary capital.
  • The language that is spoken in each department is often very different.

However, these two departments also have many similarities. Understanding and acknowledging these similarities is an important step towards bridging the gap between the two departments:

  • Both departments care about the overall success of the company
  • Both departments rely on technology and data
  • Both departments have complex jobs

In addition to helping employees understand these commonalities, helping them understand and implement the technology that their counterparts use is an excellent way to help bridge the gap between HR and finance.

What Employers Need to Know About the $900 Billion Stimulus Package

by | Dec 23, 2020 | Compliance, COVID-19 Resources

The leading news of the week from the political world has been the $900 billion stimulus package that was passed by Congress on Monday, December 21st. After several months of stalemate between the divided house and senate, a COVID-19 relief bill finally won enough votes to be placed on President Trump’s desk for his signature. It is expected that he will eventually sign it into law, although he has demanded revisions be included in some aspects of the bill.

In this post, we’ll talk about the most important aspects of this bill that employers need to be aware of. Specifically, we’ll discuss:

  • Unemployment Benefits Funding and Extension
  • Business Aid
  • Direct Economic Impact Payments
  • Other Important Aspects of the Bill

Unemployment Benefits Funding and Extension

The bill opens the door for unemployed Americans to receive $300 per week in federal aid in addition to any unemployment aid they may be receiving from their state. Unemployment benefit funds in some states have already dried up, but that will not affect an unemployed worker’s access to this federal aid. The bill lays out a timeline to provide this federal unemployment aid from the end of December 2020 through March 14, 2021, although the bill has language indicating it could last longer.

For added context on this aspect of the bill, recall that the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed on March 27, 2020, provided funding for states to waive any waiting week requirements for unemployment income throughout the pandemic. The CARES act also provided an additional $600 per week to all individuals receiving unemployment income benefits for weeks of unemployment ending before July 31, 2020. President Trump extended a portion of unemployment wages after the initial $600 per week expired.

The bill that was passed on December 21st includes an extension of Pandemic Unemployment Assistance (PUA). PUA is a program that allows employees who are not traditionally eligible to receive unemployment benefits to do so. Examples include:

  • Self-employed workers
  • Workers in gig industries (Like Uber)
  • Various types of independent consultants
  • Some hourly workers

An 11-week extension in base benefits through this PUA is also included within the bill.

Key Highlight: The new stimulus bill that was passed by Congress on December 21st, 2020, will provide $300/week for unemployed Americans. It also extends the Pandemic Unemployment Assistance program, which provides unemployment benefits for self-employed or gig workers.

Business Aid

The Small Business Administration (SBA) will receive $325 billion through this bill to assist businesses in the United States that have been affected by the COVID-19 pandemic.

Of this amount, $284 billion will go towards replenishing the Paycheck Protection Program (PPP), which provides forgivable small business loans to eligible applicants.

Business owners will be happy to learn that certain firms that had already applied for, received and exhausted PPP funds will be eligible to apply for another PPP loan. The eligibility requirements are as follows:

  • A small business must have less than 300 employees
  • The business must have sustained at least a 30% loss in revenue during any quarter of 2020
  • Small 501(c)(6) organizations with 150 or fewer employees that are not lobbying organizations would be eligible for a PPP loan with this round of funding

The bill also affects the PPP in the following ways:

  • Supplier and investment costs related to modifying facilities and obtaining personal protective safety equipment are now eligible expenses for loan forgiveness
  • The loan forgiveness process for businesses that have borrowed $150,000 or less in PPP loans has been simplified
  • It has been confirmed that business expenses paid for with PPP funds are tax deductible

It is important to note that businesses interested in applying for a PPP loan should consult with their lender. Money should never be borrowed without consulting an expert first.

There are two other relevant aspects of this new bill that will affect some businesses:

  • The bill directs $15 billion in funding for independent live-venue operators
  • The bill adds another $20 billion for small business grants

Key Highlight: The new stimulus bill replenishes funding for the Paycheck Protection Program (PPP). Some business owners will be able to apply for a PPP loan for a second time. The bill also expands eligible expenses for loan forgiveness and simplifies some processes.

Direct Economic Impact Payments

The part of this bill that has received the most news coverage is another round of stimulus checks. Eligible Americans received a first round of stimulus checks under the CARES Act last spring. Under the CARES Act, individuals earning up to $75,000/year or married couples (who file jointly) earning up to $150,000 were eligible to receive the full payment of $1,200 per individual or $2,400 per couple. A $500 payment was included for each qualifying child.

The new bill follows the same eligibility requirements as we saw under the CARES Act. However, instead of being eligible for a $1,200 payment, qualifying taxpayers are only eligible for a payment of $600 per individual or $1,200 per married couple. Parents will be eligible to receive $600 for each qualifying child. President Trump is currently demanding congress increase the payment amount provided, although it remains to be seen how this will pan out.

Key Highlight: The new bill, as it stands, will provide stimulus payments of $600 per individual, or $1,200 for married couples filing jointly. Parents will be eligible to receive $600 for each qualifying child. As with the CARES Act earlier in 2020, eligibility requirements apply.

Other Things to Know About the Bill

There are a few other general aspects of this bill that business owners should be aware of.

Other provisions in the bill:

  • U.S. Postal Service—$10 billion
  • Health Care Provider Relief Fund—$35 billion
  • COVID-19 Testing and Tracing and Vaccine Distribution—$69 billion
  • Transportation Industry Relief (Airlines, Airports, Buses, Transit and Amtrak)—$45 billion
  • Education—$82 billion
  • Housing Assistance (Rental)—$25 billion
    • Additionally, the bill extends the federal moratorium on evictions until the end of January 2021

What’s not included in the bill:

  • There is no direct aid provided to state, local, or tribal governments
  • The Families First Coronavirus Response Act (FFCRA) was not explicitly extended by this bill
    • This means that employers are no longer required to provide federal FFCRA leave later than December 31, 2020
    • Keep in mind that some states have passed their own FFCRA-like legislation

Key Highlight: Several industries will receive significant federal funding under the new bill. The bill includes no direct aid to local governments. Also, the FFCRA is not extended by this new bill.

Key Takeaways

The new $900 billion stimulus package will not be official until it is signed by President Trump. Trump has criticized certain aspects of the bill, and it currently demanding some updates. It’s expected he will eventually sign it into law. The most important things for employers to know about the bill are as follows:

  • The new stimulus bill will provide $300/week for unemployed Americans. It also extends the Pandemic Unemployment Assistance program, which provides unemployment benefits for self-employed or gig workers.
  • The new stimulus bill replenishes funding for the Paycheck Protection Program (PPP). Some business owners will be able to apply for a PPP loan for a second time. The bill also expands eligible expenses for loan forgiveness and simplifies some processes.
  • As it stands, the new bill will provide stimulus payments of $600 per individual, or $1,200 for married couples filing jointly. Parents will be eligible to receive $600 for each qualifying child. As with the CARES Act earlier in 2020, eligibility requirements apply.
  • Several industries will receive significant federal funding under the new bill. The bill includes no direct aid to local governments. Also, the FFCRA is not extended by this new bill.

The Top HR Issues of 2021 Employers Must be Prepared For

by | Dec 3, 2020 | COVID-19 Resources, Human Resources

The year 2020 presented many unprecedented challenges for businesses of all sizes and industries. The COVID-19 pandemic forced most employers to significantly alter their operations. Some of these changes might revert back once the pandemic is over, but other changes will surely have a permanent impact.

Many employers are now wondering what the year 2021 will have in store, especially from an HR perspective.

To help, we’ve written this post to address the top HR issues that employers should be aware of heading into 2021. Specifically, we’ll cover:

  • Company Culture in the Era of Remote Work
  • What the Biden Administration will Mean for HR
  • Remote Worker Compliance
  • Recruiting and Hiring With Location Barriers Removed
  • Diversity and Inclusion
  • General HR Compliance
  • New COVID-19 Legislation
  • Disaster Preparedness
  • Cross Training Employees

Company Culture in the Era of Remote Work

When employees could gather regularly in a conference room or break area, it was much easier for employers to establish and monitor company culture. Positive in-person interaction among staff has always been a key ingredient for a successful company culture. Unfortunately, remote work has thrown a wrench into any traditional methods of achieving this positive dynamic.

In 2021, work closely with your employees to generate ideas for improving company culture. Because every company is different, every culture strategy must be unique. A key piece of advice we’ll offer in this post is to remember that not every virtual meeting has to be focused on work-related topics. Reserve time in virtual meetings for regular socializing and “catching up” with teammates on a personal level. This type of unstructured social interaction can somewhat replicate the repour-building that typically would happen in the breakroom.

What the Biden Administration will Mean for HR

The incoming presidential administration and its new policies will inevitably impact the world of HR. Here is a brief summary of some of Biden’s stances that you should be aware of as an employer:

  • Biden supports a $15 per hour federal minimum wage.
  • Biden supports decriminalization of cannabis related criminal offenses.
  • Biden supports the enhancement of laws related to employee and consumer data privacy.
  • Biden supports legislation to further protect LGBTQ+ individuals from discrimination.
  • Biden plans to build on the ACA and lower the Medicare eligibility age.
  • Biden supports expanding paid leave for employees.
  • Biden supports reinstating DACA and reversing some of Trump’s strict immigration policies.

Remote Worker Compliance

We’ll touch on this more in the following section, but another consequence of the COVID-19 pandemic is that there are now fewer location barriers for employees. In 2019, most employees were still working in a traditional office setting and had to live within commuting distance of the office simply for logistical reasons.

Now, however, the new norm is that employees can be based out of anywhere in the country (or world!) as long as they are capable of completing their work remotely. Although there are obvious benefits to this, it also means that employers must comply with more HR regulations. An employer with employees in 10 different states must learn to comply with local HR regulations in all 10 states, in addition to all federal regulations (which are constantly changing due to COVID). Multi-state compliance becomes extremely complex, and we recommend working with a compliance partner that can ensure your business has every aspect covered.

Recruiting and Hiring With Location Barriers Removed

As discussed in the previous section, COVID-19 has removed location barriers for employees. This opens up the door to recruit top talent from all over the country. As exciting as this can be, keep in mind that selling your company culture and the benefits you provide can be much more challenging for an employee who knows he or she will be working remotely. If you haven’t already, schedule a meeting with your recruiting team to discuss strategy for attracting the best remote employees in your industry.

Diversity and Inclusion

Don’t set aside your diversity and inclusion goals during the remainder of the pandemic. In fact, D&I efforts are more important now than ever before. With constantly changing compliance regulations, vast overhauls to FMLA processes, and the strain of managing a remote workforce, it can be easy to lose focus on D&I efforts. However, in order to keep your company culture strong and retain smooth HR operations, executing on your existing D&I strategy, or building a new strategy, should remain top of mind. Please access Launchways’ Complete D&I Toolkit for more resources on this topic.

General HR Compliance

In addition to managing compliance updates and handling changes with FMLA processes, it’s critical to keep standard HR compliance operations up-to-date as well. Regularly updating your employee handbook, conducting harassment training, and educating employees about their benefits options are some of the best strategies to protect your company from the uncertain HR world that we’ll face in 2021.

New COVID-19 Legislation

The two main federal legislative actions that occurred at the dawn of the pandemic in March of 2020 were the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Although there has been much debate about passing further federal legislation to expand on these acts, it’s still uncertain how (or if) these pieces of legislation will be updated.

Ensure sure your HR team is checking the status of any proposed legislation daily. If and when a relief package is passed, work with a compliance partner to ensure your business understands it fully and react accordingly.

Disaster Preparedness

Many of us suspect that the COVID-19 pandemic will be the worst disaster faced by our generation. At the same time, it has likely been a wakeup call for employers to establish clear disaster protocols. If you haven’t already, be sure to have plans in place to take care of your employees in the event of any of the following:

  • Earthquakes
  • Flooding
  • Wildfires
  • Severe Weather Events
  • Rioting/Looting

If you already have disaster plans in place, be sure to review them regularly to ensure that no updates are needed. Please reference Launchways’ Essential Guide to Emergency Preparedness Plans for Businesses for more resources on this topic.

Cross Training Employees

The Families First Coronavirus Response Act (FFCRA) has opened up the door for employees to lawfully take leave when affected by the pandemic. This has led to increased absences for many employees in across industries. Businesses with cross-trained employees who can step in to carry some slack while their coworkers are absent can continue operations seamlessly and reduce revenue losses

Consider working with your company’s leadership, including those who supervise front-line staff, to make a plan for cross-training employees so that your company isn’t hit as hard by having staff away from work unexpectedly.

Key Takeaways

There are certainly many different areas of HR that will be impacted by COVID-19, the incoming presidential administration, and federal legislation during the year 2021. Your company can be better prepared for these impacts by doing the following:

  • Focusing on improving company culture in the era of remote work
  • Continuing your focus on diversity and inclusion goals
  • Remembering to implement HR best practices (employee handbooks, harassment training, etc.)
  • Monitoring the status of potential COVID-19 legislation
  • Ensuring disaster preparedness plans are up-to-date
  • Making cross training employees a priority

COVID Has Created a Crisis for Women in the Workforce: Here’s What Employers Can Do to Support Women Leaders

by | Dec 3, 2020 | COVID-19 Resources, Human Resources, Leadership

This year’s McKinsey and LeanIn.org’s annual Women in the Workplace study reports that 25% of women in the workforce are considering changing their careers or leaving the workforce altogether. Rachel Thomas, CEO of LeanIn.org in Palo Alto, California stated, “This translates to millions of women leaving the workforce…It could wipe out all the hard-earned progress we’ve seen for women in leadership.”

In another study, conducted by the National Women’s Law Center, shows that 865,000 women left the workforce back in September 2020 when their children went back to school or began remote schooling from home. However, mothers with children in school are not the only group of women who are facing this struggle. The Women in the Workplace study also reveals that black women, due to concern for their health and safety,  are more likely than other employees to consider leaving the workforce.

That said, according to Thomas, “women are less likely to share their concerns about work/life balance or talk about being parents at all with their managers because they’re worried it will derail their careers.” She continues, “Even before the pandemic, women were acutely aware of the ‘motherhood penalty,’ which assumes working mothers are less productive than working fathers and puts them at a disadvantage in terms of pay, promotions, and work experiences.” The concern for black women is highlighted by Shannon Schuyler, Chief Purpose and Inclusion Officer at PricewaterhouseCoopers, when she says “This reluctance to speak up is especially pronounced for Black women who are concerned about being stereotyped as angry.”

Manager Involvement is Key

Keeping employees in the workforce is a responsibility that often times falls to their managers. Erica Salmon Byrne, chair of the Denver-based network of 300 companies, Ethisphere Institute’s Business Ethics Leadership Alliance, says, “The manager is the linchpin of a fair and equitable workplace – they really set the tone…In all of our data, the vast majority of employees (67%) who have a concern – if they raised it – they raised it with their manager.”

“This is especially true during the pandemic because the solutions human resources offers don’t always work for every employee, Schuyler said. For instance, during the pandemic, employees at PricewaterhouseCoopers who are struggling have the option of taking extra time off, going on a sabbatical, or working a reduced schedule, but those solutions aren’t the answer for every employee.” Schuler continues to share the effects this has on black women in particular, “Black women are often the breadwinners of their families, so to say, ‘Your option is to go on a sabbatical or go to 60% time with 60%  pay’ doesn’t fill the gap and doesn’t help.”

She adds, “Managers are in the best position to have meaningful conversations with their employees about what solutions would work and then go back to senior leadership and say: ‘This policy is great, but what I’m really hearing is people need to have something different.’ Managers are also in the best position to understand how to implement HR policies to meet the needs of individual employees.”

Discussing Challenges with Employees

In an attempt to facilitate these important conversations, PricewaterhouseCoopers and other companies are offering managers talking points to create a dialogue with their employees – asking them about their situations, the issues they face, and how they – as managers – can support them. “For example, a manager can say ‘Help me to understand what I can help you with, and I’ll make sure this doesn’t derail your career,’” suggests Schuyler. 

Christy Kenny, Director of HR Client Relations and Talent Management at Public Service Enterprise Group, a publicly-traded energy company in Newark, N.J. says, “Often general questions such as, ‘How are you doing?’ don’t get at the heart of the problem…But if you ask an employee what’s working and what’s not working in terms of their schedule, you start to get at the answer.”

Public Service Enterprise Group suggests that their managers ask employees more direct questions:

  • Are you getting the support you need from your peers? Is there anything we can be doing differently as a team?
  • Are you encountering new barriers in your work? What can we do to ensure your success?
  • How is your work schedule going? Is there anything you need to adjust so that the schedule is sustainable going forward?
  • What gets in the way of doing your job?
  • What is the most frustrating barrier?
  • How can I help remove barriers?
  • What resources do you need to make things easier for you to do your work?

Accommodating Your Employees

Asking the kinds of questions listed above had a big impact on Public Service Enterprise Group. Kenny says, “From these conversations between managers and employees, Public Service Enterprise Group decided to expand its definition of flexible work hours.” She continues, “In the past, flexible work hours meant starting just an hour early or an hour late, but now it’s about customizing the workday to meet the specific circumstances of each employee…For instance, a flexible workday might mean allowing an employee to start work at 6 a.m. so she isn’t working while her children are doing remote learning.”

Additional solutions that managers might consider could include allowing the first few hours of each day to be “meeting-free” for working parents so they can dedicate that time to preparation or providing a specific time frame where they are not expected to be in any virtual meetings.  Michael Matthews, Chief Diversity, Inclusion, and Corporate Responsibility Officer at Synchrony, a consumer financial services company in Stamford, Connecticut says, “It’s incumbent on managers to create and foster environments where employees can come to work as their authentic selves.” He adds, “Does a single mom have to explain away some of her challenges or, as a manager, do you partner with employees to look for solutions? Are you more understanding about interruptions, start and end times, and are you looking for ways to accommodate their needs?”