Julie D Ante, SPHR SHRM-SCP Senior Consultant Jennifer Mondy, PHR SHRM-CP Staff Consultant JANUARY 18, 2016
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1 2016 Hot Topics for HR Professionals Julie D Ante, SPHR SHRM-SCP Senior Consultant Jennifer Mondy, PHR SHRM-CP Staff Consultant JANUARY 18, 2016 ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 1 Agenda Challenges and Opportunities FLSA HR Metrics State Leaves Aging Workforce Workforce Readiness 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 2 1
2 Proposed Overtime Rule 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 3 Key Provisions Sets the standard salary level at the 40 th percentile of weekly earning for full time salaried workers ($970/week, or $50,440/year in 2016) Increases the total annual compensation requirement needed to exempt highly compensated employees (HCEs) to the annualized value of the 90 th percentile of weekly earnings of full time salaried workers ($122,148 annually) Establishes a mechanism to automatically update salary and compensation levels going forward 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 4 2
3 Preparing for the Rule Review job descriptions and salaries of your workforce Decide whether to increase salaries to maintain an exempt status or reclassify position to non exempt Keep records of hours worked Determine how to set non exempt pay rates for affected employees Plan and develop a communication strategy Stay informed 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 5 Key HR Metrics 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 6 3
4 Why Measure? Recruiting and Retention Employee Satisfaction Workforce Readiness Skills Shortage Leadership Capability 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 7 Thinking Strategically Voluntary Turnover Performance Goals Learning and Development Succession Planning 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 8 4
5 Turnover Calculation T = S/((B + E)/2) T = Turnover Rate S = Separated Employees B + E = beginning and ending size of workforce; divide by 2 to get average. For example, you have 75 employees at the start of the period and 85 at the end, your average number of employees is 80. If 16 employees left, that s 16/80, or 0.20 (multiply by 100 to express the figure as 20 percent) GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 9 State Leave Laws 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 10 5
6 Domestic Violence Leave Laws passed in almost a dozen states including CA, FL, IL, WA and the District of Columbia. These laws vary significantly in the details including: How much time off Reasons for leave Notice and paperwork requirements Use of paid leave 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 11 Organ Donation Leave Recent data shows the following states have enacted donor leave laws entitling all employees (public and private) to either a paid or unpaid leave of absence. AR, CA, CT, DC, LA, ME MN, NE, NY, OR, PA, SC MN An employer who employs 20 or more employees shall grant an employee up to 40 hours of paid leave GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 12 6
7 Paid Parental Leave Why Now? 2016 Election Millennials Work/Life Balance Talent Shortage 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 13 Paid Sick Leave President signed an executive order in September requiring federal contractors to offer paid sick days to their employees and pressed Congress to pass legislation that would provide family and medical leave to private sector workers. What s an employer to do? 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 14 7
8 Aging Workforce 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 15 Stereotype A perceived notion about someone, especially about a group of people GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 16 8
9 Setting the Record Straight Less resistant to change than younger workers Less likely to leave the organization Less likely to miss work Interested in learning new things Able to keep up with technology Research provided by the SHRM Foundation 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 17 Implications for Organizations Less redundancy of function and knowledge across workers so the departure of even one or two key workers could be catastrophic. Conduct age and knowledge/skill audits to identify vulnerabilities Important for smaller organizations to implement strategies for transferring critical knowledge before workers depart Cross train employees to reduce the possibility that only one or two individuals possess critical organizational knowledge 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 18 9
10 Retaining Talented Employees What does the talent shortage mean for you? What can you do to retain talented, seasoned employees? What matters to workers age 50+? 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 19 Success(ion) Planning Remove the age factor from your thinking Create performance profiles Introduce legacy building Integrate collaboration and knowledge transfer Develop internal mentoring and coaching roles 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 20 10
11 Workforce Readiness 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS Learning and Development On the Job Training Apprenticeships Continuing Education 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 22 11
12 Learning and Development Coaching Helps employees feel valued Identifies high potential employees Gains employee commitment/engagement/trust Encourage, coach, & develop upper level management so that they can be successful at this! 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 23 Leadership Development Training Blends to a norm Technique/content/curriculum Tests patience Focuses on present Adheres to standards Transactional Focuses on maintenance Focuses on the role Indoctrinates Maintains status quo Development Occurs beyond the norm Focuses on people Tests courage Focuses on future Focuses on maximizing potential Transformational Focuses on growth Focuses on the person Educates Creates innovation Forbes Leadership Forbes.com 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 24 12
13 Leadership Development Training Stifles culture Encourages compliance Focuses on efficiency Focuses on reporting lines Places people in a box Mechanical Focuses on the knowns Places people in comfort zones Focuses on problems Finite Development Enriches culture Emphasizes performance Focuses on effectiveness Expands influence Frees them from the box Intellectual Explores the unknowns Moves people beyond comfort zones Focuses on solutions Infinite Forbes Leadership Forbes.com 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 25 Competencies for Future Leaders Learning Agility Digital Proficiency Global Mindset 360 Communicator Developer of People Conscious Capitalist/Conscious Leader Adaptability/Change Orientation 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 26 13
14 Blended Learning Modify Current Job Stretch Assignments Self-Directed Development New Responsibilities Increased Span of Control Exposure to Other Functions and Roles Participation on Special Projects Increase in Scope Stretch Project Assignment Team Leadership Assignment Increased Visibility to Senior Management Reading Materials Research Articles Professional Networks On-line Work Communities Individualized Feedback External Experiences Learning Events Individual Assessment 360 Feedback Individual Coaching Structured Mentoring Community Activities External Networking Professional Associations Speaking Engagements Executive Directorships Training Programs Career Development Courses Seminars and Workshops On Line Education Certification Programs Development opportunities need to be identified by the employee and his/her manager, and be aligned with the organization s growth strategies, the employee s capabilities to learn and develop, and the anticipated challenges and duties of the targeted succession role(s) GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 27 Summary of 2016 Challenges and Opportunities Challenges and Opportunities FLSA HR Metrics State Leave Laws Aging Workforce Workforce Readiness 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 28 14
15 Don t Forget Additional Challenges and Opportunities Immigration E Cigarettes Medical Marijuana Intern Status ACA Reporting Same Sex Marriage 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 29 HRCI Approval Pending 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 30 15
16 SHRM Approval Pending Gallagher Benefit Services is recognized by SHRM to offer Professional Development Credit(s) (PDCs) for the SHRM CP SM or SHRM SCP SM. This program is valid for PDCs for the SHRM CP or SHRM SCP. To obtain the activity ID number for this program, which you can include on your recertification application, please send an request to Please include the title of the webinar in your Once the program has been approved and your attendance has been verified, you will receive an e mail with the activity ID number. When entering PDCs, ensure that the activities you enter occurred between the beginning and end dates of your three year recertification period. For more information about certification or recertification, please visit GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 31 THANK YOU Julie D Ante, SPHR SHRM-SCP Senior Consultant Julie_Dante@ajg.com Jennifer Mondy, PHR SHRM-CP Staff Consultant Jennifer_Mondy@ajg.com 2016 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 32 16
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