BIZGrowth Strategies - The Great Resignation Special Edition
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The document discusses strategies to combat the ongoing challenges of the Great Resignation, focusing on employee attraction, retention, and engagement. It suggests leveraging enhanced employee benefits, utilizing technology in recruitment and onboarding processes, and rethinking compensation strategies to adapt to a competitive labor market. Additionally, it outlines industry-specific risks and offers tips for mitigating labor-related liabilities.
BIZGrowth Strategies - The Great Resignation Special Edition
- 1. I D E A S T O C O M B A T T H E G R E A T R E S I G N A T I O N S T R A T E G I E S ISSUE 91 | SPRING 2022 Your Team. Your Team. CommonLaborShortage Risks&TipstoMitigate YourExposures RethinkingTotal Compensation toRetainTopTalent UsingTechnology toSecureTalent HowtheGreatResignation AffectstheTaxFunction TheBestBenefits OfferingstoAvoid theGreatResignation THE GREAT RESIGNATION — Special Edition —
- 2. In This Issue 2 | BIZGROWTH STRATEGIES — SPRING 2022 CBIZ, INC. CBZ To subscribe to this newsletter or a variety of others, visit cbiz.com/newsletter-subscribe. You can also call us at 1-800-ASK-CBIZ (1-800-275-2249). CBIZ CBIZServices The Great Resignation continues to plague organizations across the country. It has exacerbated a host of employer challenges, including attraction, retention and engagement of top talent, as well as mitigating new risks. Employees now have the upper hand in a proverbial “seller’s market,” and businesses must respond accordingly to be an employer of choice. While this may seem nearly impossible, there are ways to manage this conundrum. Our experts have developed these articles and linked resources to help your organization combat the mass employee exodus. Employee Benefits....................... 2 The Best Benefits Offerings to Avoid the Great Resignation Human Capital Management...... 4 Using Technology to Secure Talent Talent & Compensation............... 5 Rethinking Total Compensation to Retain Top Talent Risk Management........................ 6 Common Labor Shortage Risks & Tips to Mitigate Your Exposures Tax Strategies............................... 7 How the Great Resignation Affects the Tax Function DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein. — Special THE GREAT RESIGNATION Edition — TheBestBenefits OfferingstoAvoid theGreatResignation Employee Benefits T he Great Resignation has made it increasingly difficult for employers to combat turnover. Those that want to win the war for top talent must effectively leverage their employee benefits offerings. In this article, we outline some of the benefits and perks employers are using to strengthen their attraction and retention efforts in 2022. Strong Retirement Plans Retirement uncertainty remains a top concern for employees. Only 62% of workers feel secure about their ability to save enough to retire, according to the Employee Benefits Research Institute. Providing employees with retirement plan options, such as a 401(k), can be an effective way to add value and financial security to a position. Some employers have chosen to go further with their offerings, increasing their retirement plan matching. Such efforts help demonstrate an employer’s investment in their employees and their futures, which, in turn, fosters greater workplace loyalty. Flexible Work Arrangements A Gallup survey found that 91% of employees who worked from home at least some of the time during the pandemic want to retain that perk indefinitely. If employers want to stay competitive, they’ll need to allow for some workplace flexibility — whether through flexible work hours,
- 3. CBIZ, INC. BIZGROWTH STRATEGIES — SPRING 2022 | 3 CBIZ EMPLOYEE BENEFITS TEAM — Special THE GREAT RESIGNATION Edition — work-from-home arrangements or hybrid work models. Additionally, almost a quarter of the U.S. workforce is expected to be fully remote by 2025, according to an Upwork study. Employers are expanding their flexible work policies now as a way to get ahead of the curve. While a hybrid work model may be advantageous for both your organization and your employees, it comes with a unique set of challenges. Check out “5 Hybrid Work Model Mistakes & How to Avoid Them” to ensure you don’t make any costly missteps along the way. Affordable Benefits Many employees who quit their jobs at the end of 2021 were front-line employees, according to a survey conducted by Mercer. Few of these workers had access to meaningful employee benefits, if any at all. After enduring the worst of the pandemic, these employees concluded that their work wasn’t worth their compensation. Savvy employers have picked up on this and are now providing more attractive offerings to these employees. Beyond increased compensation, some organizations are offering affordable health plans and financial wellness resources. Since these workers have historically been unable to access such offerings, even modest benefits can make a huge difference when courting and retaining these employees. Personalized Wellbeing Resources Personal wellbeing has never been more important to employees than during the pandemic. This makes sense given that COVID-19 exposed and worsened existing issues, including financial insecurity and mental health problems. Many employers are expanding their voluntary benefits to help workers deal with these types of issues. When employees have the mental health support they need, it can lead to better focus and productivity in the workplace. That’s why employers are tacking on benefits such as mental health counseling, financial planning assistance and student loan repayment plans. Choosing the right employee benefits can be tricky. Employers must weigh employee desires against budgets and operational objectives. Yet, despite potential challenges, providing meaningful benefits is certainly worth the effort. In this unprecedented labor market, an employer’s benefits offerings can be the difference between a satisfied workforce and a great resignation. Looking for ways to secure affordable benefits offerings this year? Press play on “BIZTips Episode 17: Demystifying Health Care Costs — How Can You Take Control?”
- 4. 1. Collect employee information. Time spent on manual and duplicate data entry can be reduced and errors eliminated by using technology to create a single employee profile. An ATS can collect and transfer new hire information directly from the recruitment process to onboarding. 2. Complete onboarding tasks. Ease some of the employee’s onboarding stress by allowing new hires to start paperwork electronically before their first day. Digital workflows and checklists can help ensure all necessary tasks get completed on time while sending automatic updates to key stakeholders. 3. Train new hires. A learning management system (LMS) can help employees learn efficiently as they go through the onboarding process. Standardized training can educate employees about the company and ensure they’re aware of policies and expectations while job-specific course paths can help them get up to speed and ready to contribute. No single initiative will win the battle against the Great Resignation, but technology is your ally. With one in five employees leaving a job within the first 90 days, investing in your recruiting and onboarding strategies — and the technology to support them — can have a big positive impact on your business. W hile employee turnover is inevitable, there are several strategies companies can implement to help combat the Great Resignation, and at the center of all of these strategies is technology that can benefit employers and their staff. Organizations should utilize technology to enhance the recruiting and onboarding process, including showcasing core values, company culture and employee engagement, which will help attract top talent, while setting new hires up for success. Benefits of a Polished Virtual Recruiting Experience Statistics show that most employees want the flexibility to be able to work from home, at least some of the time. With this in mind, employers may benefit from strengthening their virtual recruiting efforts with these three tips: 1. Make screening straightforward. Speed up the initial screening by focusing solely on skill sets first. Rather than requiring applicants to fill in their entire resume up front, a quality applicant tracking system (ATS) can help prevent unnecessary data entry by asking qualifying questions about an applicant’s skills, thus weeding out candidates who won’t be a good fit from the start. 2. Showcase your organization. Employers should consider prerecording videos that include tours of a physical office, staff testimonials and initiatives the company has in place to create a great work culture for all, regardless of location. Utilizing video conferencing tools such as Zoom for the initial interview gives applicants a glimpse of the tools they’ll be working with if hired. 3. Keep candidates informed. Transparency is key throughout the recruitment process. Candidates should know exactly what is expected of them and when they’ll be informed about next steps. Employers can do this by sending regular updates to candidates; many applicant tracking systems have the option of doing this with a few clicks of a button. Using Technology to Improve Onboarding Leveraging technology effectively during onboarding can help create efficiencies, reduce costs, improve the employee experience and, ultimately, result in a higher retention rate. Here are three ways technology can streamline onboarding: Human Capital Management UsingTechnologytoSecureTalent 4 | BIZGROWTH STRATEGIES — SPRING 2022 CBIZ, INC. — Special THE GREAT RESIGNATION Edition — CBIZ HUMAN CAPITAL MANAGEMENT TEAM Gain additional insights in our guide, “Using Technology to Help Combat the Great Resignation.”
- 5. CBIZ, INC. BIZGROWTH STRATEGIES — SPRING 2022 | 5 I t’s no secret that top talent expects to be paid top dollar. Even with a developed recruiting program, strong company culture and great work-life balance, it’s difficult for companies to attract and retain the best employees without an all-inclusive compensation strategy. Add in the combination of high inflation, talent shortages and the Great Resignation, and we’re left with a hyper-competitive labor market. Unlike 2020, employees now have the upper hand in the proverbial “seller’s market.” In an unprecedented time for attracting and retaining talent, CEOs and CHROs must think outside of the box to motivate and retain top performers and explore new ways to increase the value of total compensation offered. Base Salary vs. Total Compensation Before making any changes to your compensation strategy, it’s important to first understand the difference between base salary and total compensation. Base Salary — The amount per hour or year an employee is paid. This is the figure that appears on the employee’s paycheck. This number does not include bonuses, benefits or any other perks. Total Compensation — Everything an employee receives in exchange for working for your company. This includes a base salary, bonuses, incentives, benefits, on-site amenities and any other perks you offer. Some typical benefits included in total compensation are: ■ Health insurance ■ Vision dental insurance plans ■ Disability life insurance policies ■ Retirement plans ■ Performance bonuses Creative Ways to Boost Total Compensation Beyond base pay increases, there are many unique ways that organizations can add additional value to their total compensation package and reward and retain key employees. The following are just a few. Employee Stock Ownership Programs (ESOPs) — ESOPs come with several benefits for employees and employers. They could very well be claimed as the most important form of remuneration for employees of any Talent Compensation RethinkingTotalCompensation toRetainTopTalent — Special THE GREAT RESIGNATION Edition — organization. From a company’s perspective, they can be useful in maintaining the liquidity of the company. From an employee’s standpoint, it’s a reward for their loyalty to the company. Paid Training Stipend — Companies that include a paid training stipend in their total compensation package show an investment in their employees’ career success. Additionally, offering training opportunities helps to upskill and develop existing employees so they can perform their jobs more effectively and become strong leaders. Executive Bonus Plans — When it comes to retaining top talent, employers need to get creative with benefit offerings. Through a 162 executive bonus plan, companies can offer life and/or disability income insurance to their key employees. Employer-Paid Individual Term Life Insurance — Finding a way to provide top performers with a valuable benefit — one that won’t be too hard on the bottom line and is easy to administer — could be an ideal solution to reward their contributions. With Focus 10 Life, a fringe benefit, non-voluntary and employer-paid program, 20 or more employees in full-time, white-collar occupations are eligible for guaranteed level premiums for 10 years. Interested in the key elements of a strategic comp program and other critical HR topics? Check out the “Talent Compensation Trends Report — Spring 2022.” CBIZ TALENT COMPENSATION SOLUTIONS TEAM CBIZ LIFE INSURANCE SOLUTIONS TEAM
- 6. 6 | BIZGROWTH STRATEGIES — SPRING 2022 CBIZ, INC. CommonLaborShortageRisks TipstoMitigateYourExposures Risk Management E very industry is at risk for liability exposures from widespread labor shortages. Employers are often forced to schedule fewer staff members, overwork current employees and hire less skilled applicants. Exhausted and underqualified workers can increase the risk of workplace accidents as they’re more likely to cut safety corners or make careless errors. These incidents could lead to major liability concerns from employee and customer injuries. Additionally, overworked and inexperienced employees are more likely to miss important project deadlines. Service delays could cause customers to become disgruntled and increase liability problems. Further, staff shortages may influence your business’ ability to maintain workplace security and potentially result in property and inventory vulnerabilities. Influential Industry Risks Construction — The U.S. Chamber of Commerce’s Commercial Construction Index suggests 55% of contractors reported a high level of difficulty in securing — Special THE GREAT RESIGNATION Edition — qualified workers. The sector is facing staff shortages as nearly half of construction workers are over the age of 45 and nearing retirement. Due to the industry’s nature, labor shortages pose substantial liability risks by way of elevated (and more severe) job site accidents, project delays and decreased workmanship. Manufacturing — Experiencing a major labor crisis, the U.S. Bureau of Labor Statistics (BLS) reports manufacturing is currently facing nearly 800,000 job openings. Employers have lowered job requirements related to criminal history, legal marijuana usage and work experience to expand their candidate pool. This could lead to an underqualified workforce, increased job site accident occurrences and subsequent liability issues. Recent industry research indicates inexperienced manufacturing employees contribute to over one-third (35%) of worksite accidents and related insurance claims. Reports also discovered that 60% of manufacturing workers have additional stress, muscular pain and (Continued on next page)
- 7. CBIZ, INC. BIZGROWTH STRATEGIES — SPRING 2022 | 7 CBIZ RISK MANAGEMENT TEAM — Special THE GREAT RESIGNATION Edition — discomfort from being overworked since the pandemic. This is concerning as it can create additional accident risks and related workers’ comp liability. Trucking — Trucking employers have extended existing employees’ driving schedules and lowered driver applicant standards. Such factors can increase an employee’s likeliness to be involved in serious road accidents and influence various liability issues, including driver injuries, fatalities, damaged or lost inventory, and delivery delays. Measures to Minimize Labor Shortage Liability Risks 1. Ensure effective onboarding processes. Especially if labor shortages require you to hire inexperienced workers, it’s critical to have proper onboarding protocols. These procedures can equip new employees with the knowledge and resources needed to succeed. 2. Provide routine training. All workers should engage in regular, job-specific safety training. Instruction will help promote a culture of safety, minimize workplace accidents and decrease related liability concerns. 3. Review and upgrade new hire training processes. Retention rates are significantly higher when recent hires are provided considerable training opportunities. Schedule regular new hire training sessions with knowledgeable employees to encourage new workers while they establish their skill sets. 4. Schedule regular check-ins. Maintaining open communication will motivate employees to share safety concerns or other work-related issues. This will allow you to remedy problems before they cause liability incidents. 5. Partner with your broker. Work with your broker to make sure you have proper commercial insurance coverage to protect your business. They can also help you create additional risk mitigation strategies to keep your employees and business safe. No industry is safe from the effects of the current labor market. Employee shortages can influence multiple liabilities, but a proactive strategy can help protect your organization. Tax Strategies HowtheGreatResignation AffectstheTaxFunction T alent shortages remain a challenge universally, but it may be hitting financial roles within businesses particularly hard. More than half of U.S. respondents (56%) in a corporate tax department survey from Thomson Reuters reported they did not have appropriate staffing for their tax department. Many of the federal pandemic relief provisions were tied to the tax function, including the employee retention credit that helped businesses maintain headcounts. The pressures to meet tax reform obligations coupled with the job changeover opportunities that have emerged during the Great Resignation have left many departments feeling under-resourced. If your company is experiencing a similar situation, here are steps you can take to support your tax function. Turn to Technology To address resource limitations, companies may turn first to technology to build efficiencies in the tax process. Automation and electronic workpapers and workflows may help address filing requirements on time when headcounts are down. Be sure to visit our Great Resignation Resource Center! RESOURCE CENTER THE GREAT RESIGNATION Risk Management (cont.)
- 8. THE GREAT RESIGNATION RESOURCE CENTER © Copyright 2022. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved. | CBIZ-020, Rev. 91 8 | BIZGROWTH STRATEGIES — SPRING 2022 CBIZ, INC. — Special THE GREAT RESIGNATION Edition — Unfortunately, many companies in the Thomson Reuters survey reported that technology was both the top priority and an area facing a skills gap. While 45% stated they would introduce technology and automation, 21% said advanced technology was the primary skill gap on their existing team. Companies may want to consider enlisting interim support to help supplement and train existing staff on new processes and systems to bridge this disconnect. New workflows may also provide opportunities for top performers on your staff to grow their skillsets, which may help you hold onto the staff you least want to lose during this period of turnover. Focus Resources on the Strategic If you have a larger geographic footprint, either in the U.S. or at overseas locations, your organization may be addressing a larger volume of routine filing requirements. High volume, including repetitive state income tax or foreign reporting tasks, can be outsourced so that existing department resources can focus on value-add projects and initiatives the company wants to undertake. These higher priorities may include complex transactions, automated processes or adopting other types of new workflow efficiencies. Isolate the Largest Performance Obstacle Compliance risks and staff burnout are among the leading challenges for companies with a resource- constrained tax function. Fewer staff may mean less NATE SMITH,CPA CBIZ National Tax Office [email protected] | 727.572.1400, x348 Tax Strategies (cont.) hands to support filing deadlines, which may cause current staff to seek less stressful opportunities. If your tax department has already felt the impact of the Great Resignation or starts to experience a higher rate of turnover, leadership should get together to identify where (and in what form) support can alleviate the strains on your tax function. Evaluations of your tax department are best performed with an internal team, which may include your chief financial officer, tax director, controller, and audit committee or board members tasked with financial performance. This team should review the processes that support: ■ Year-end income tax provisions ■ Quarterly provisions and cash flow analysis ■ Tax staff recruiting, training and retention ■ Tax planning and forecasting ■ Federal and state income tax compliance ■ Foreign reporting and compliance ■ State and federal audit support The results of the tax department assessment should help identify what particular skill set you need in future tax department candidates and, if you choose to outsource or co-source, what capabilities you need from a provider. Check out “The CFO’s Guide to Conquering the Talent Crunch.” FOR MORE ARTICLES INSIGHTS, BE SURE TO CHECK OUT . . .