Paid Time Off – Back to Basics

In a 2017 small business survey conducted by Justworks and Squarefoot, it was reported that less than half (44%) of employees felt that unlimited Paid Time Off (PTO) is important. Only about 28% work at organizations that offer unlimited PTO. This week in Astronology® we discuss the basics of PTO.

In general, PTO is identified as vacation, sick leave, and / or personal days; in other words, allotted paid time away from work. While in some cases employers designate a specific amount of days / hours for each reason for being away from work, this article will focus on policies that allow employees to earn a bank of paid time off, and then use the time as they see fit.

The majority of organizations provide employees with paid time away from work, even though it’s not legally required (with the exception of sick leave in certain states and major cities). Paid time off is considered an excellent recruitment tool. As explained by Chron.com, “…many job postings state that the company has a ‘generous vacation policy’ or ‘generous time-off policy’ to increase the company’s appeal to qualified applicants.” This is understandable as there has been an increased focus on work-life balance by the incoming generation of workers.

Two popular forms of awarding PTO are banked and accrued. Banked time is typically awarded at the beginning of the calendar or fiscal year. Accrued time is gained through a designated rate per days (and / or years) worked by the employee. Adds Chron.com’s small business website, “if an employee takes time off before accruing the hours, the time is unpaid. An employer may decide to cut employee compensation costs by reducing the number of PTO hours an employee can accrue.”

Some advantages to having a PTO policy include the following:

• Managers are no longer put in the position of policing and reporting employees’ use of benefits.
• Unscheduled absences are more controlled.
• Employees have more flexibility of use (they can use the time to take care of a sick child, or go on a restorative beach day, for example).

Some disadvantages include the following:

• In cases where paid time off is banked, an employee could save his / her PTO, and leave an organization with a balance of banked time for which the organization would then have to pay the employee.
• Sometimes employees view PTO only as vacation time and will attend work while sick.

Humana, a medical insurance company, gives some suggestions regarding specific elements to consider when building a PTO policy:

• Who is eligible for PTO? (Full-Time, Part-Time, Interns, All?)
• How much PTO will be offered?
• How does PTO time accumulate? (What is the rate? Will it be banked?)
• How can PTO time be taken? (Hour increments? Full days?)
• Can unused time carry over from year to year? If so, how much?
• Can an employee opt to cash out his / her unused days?

The Humana website also suggests that “many employees don’t take vacation because they simply feel they have too much work to do. Creating a culture that prioritizes work-life balance must start from the top.” To avoid some of the disadvantages listed earlier, employers can begin to emphasize the need for proper work-life balance and encourage proper use of the organization’s PTO policy.

Does your organization have a robust PTO policy? Are you considering adjusting the policy to appeal talent in the coming years? Feel free to share your thoughts in the comment section below!

Effectively Using Employees’ Opinions to Shape HR Strategy

Without a prompt and visible response, even the best designed employee opinion survey or exit interview process will fall prey to employee cynicism. If employees feel that management is ignoring their feedback, an effort to involve their opinions will likely cause a drop in morale.

Utilizing employee opinion and exit interview data well is a challenge. In this Astronology®, we share methods for strategic analysis that can help you turn your opinion-based data into concrete strategic objectives.

STRATEGIC OBJECTIVES IN HR
Strategic objectives in human resources are set to reinforce employee efforts and behaviors in support of an organization’s critical success factors – factors that will determine the future success or failure of an organization.

Many successful human resource functions have taken a page from the book of Drs. Kaplan and Norton and adapted the Balanced Scorecard approach to their strategies. In terms of HR, this approach involves viewing the organization through five strategic lenses:

• Learning and growth
• Customer
• Financial
• Quality
• Human Resources

This approach involves developing metrics (criteria for measurement), collecting data, and analyzing it as it relates to each of these perspectives.

In the quest to link the needs of the organization and the needs of its employees, conflicts often arise. Whether they arise from miscommunication, lack of acceptance, or a discord between organizational and employee values, HR is at a disadvantage when it does not strive to understand these conflicts and their foundations.

DATA ANALYSIS
Two powerful tools for collecting the data needed for this effort are employee opinion surveys and exit interviews.

Successful strategic planning in human resources begins with linking the information from opinion surveys and exit interviews. Trend analysis will become easier with time, but using both sources in tandem will reveal a clearer picture of working conditions. The following questions may be of use in this analysis:

• What do both sources identify as common sources of dissatisfaction?
• What do both sources identify as common motivators?
• What perceptions of the organization and its leadership are common?
• Are particular supervisors singled out as strong or weak leaders?
• How is human resources perceived in both sources?
• What are employee perceptions regarding the organization’s mission, vision, values, and objectives in both sources?

SWOT ANALYSIS
Once these sources of data are analyzed, it is the responsibility of human resources to conduct an internal analysis of its programs as they relate to communicating and reinforcing the strategic values of the organization. To this end, SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) is an excellent strategic tool.

SWOT Analysis is a flexible line of questioning that can be used for organizational, individual, or competitive ends. In this context, the data analysis described above will be further organized:

• What are the current strengths of the organization?
• What are the obvious weaknesses to be modified?
• What opportunities exist to modify systems and / or programs that will better reinforce those employee activities and behaviors needed by the organization?
• What threats could interfere with successful implementation of necessary changes?

HR has an obligation to provide the organization’s leadership with insights regarding employee perceptions, as well as with concrete recommendations for reinforcing what is working and what needs to be changed. Employee opinion survey and exit analysis data are prime sources of information in this endeavor, but their collection could result in a backlash if results are not both shared and acted upon. After analysis is complete, share some version of the results with your employees, and tell them what will be done about the problems they have identified.

For instance, if an employee opinion survey communicates a lack of understanding about the organization’s mission, vision, values, and objectives, a training program could be instituted to address the problem. As this information can be distributed via e-mail, a technically savvy organization can raise employee awareness with no greater cost than a few hours of writing time.

Effective use of employee opinion and exit interview data provides the backing and justification the organization’s senior leadership team needs to support HR’s recommendations. Linking this supportive data to concrete proposals and programs that demonstrate ROI, return on investment, is key. The lack of response to employee concerns raised in the collected data can lead to increased turnover, inability to recruit effectively, and, potentially, lower productivity and efficiency due to lower morale.

The Onboarding & Retention Relationship

         O.C. Tanner reports that 69% of employees are more likely to stay with their places of employment for at least three years after a great onboarding experience. Back in 2009, an Aberdeen Group survey reported that 86% of senior executives and HR professionals believe that a new hire’s decision to stay with an organization long-term is made within the first six months of employment. Is the process of onboarding really that critical to retention?

         Research suggests that perhaps the first 90 days of employment are more critical than we think in terms of retention. The Wynhurst Group found that 22% of employee turnover happens in the first 45 days of employment. BambooHR found that one-third of 1,000 individuals surveyed quit a job within six months of hire. A study from Kronos Incorporated earlier this year also indicates that many feel the onboarding process can affect employee retention, as it should include more than orientation paperwork. Also of note is that

• 60% of survey respondents felt the main purpose of onboarding is to integrate employees into the organization’s culture.
• 36% blame insufficient technology for their inability to automate and better organize onboarding programs…resulting in the inability to properly train managers in proper onboarding techniques.

        Sharlyn Lauby, the HR Bartender & president of ITM Group, Inc. explains, “We all know turnover is expensive, both in terms of direct costs and intellectual capital. Organizations can increase retention by focusing on those activities that get employees engaged from the start. One way to do that is by taking care of administrative paperwork before day one so employees can focus on their role and other things that matter to them most. Onboarding processes set new hires up for success by building positive work relationships, making good on promises made during interviews, and providing a career roadmap.”

        What should an organization consider when creating an onboarding program geared to retain an employee? In an article on the Society for Human Resource Management (SHRM) site, Roy Maurer quoted Amber Hyatt from SilkRoad, suggesting these reflective, brainstorming questions:

• When will onboarding start?
• How long will it last?
• What impression do you want new employees to walk away with at the end of the first day?
• What do new employees need to know about the culture and work environment?
• What role will HR play in the onboarding process? What about direct managers? Co-workers?
• What kind of goals do you want to set for new employees?
• How will you gather feedback on the program and measure its success?

          Another aspect to consider is technology. Although nothing will replace one-on-one conversation and experience within an organization’s culture, some organizations have taken the step to use technology to make the onboarding experience more robust:

• Ashoka: the non-profit organization has an onboarding management system that allows new staff to complete tasks and set their own goals. It is said to empower new hires to “own their development.”
• ADP: the software developers at ADP have software that give text and video introductions to new hires before they even enter the workplace.
• Yoi: the onboarding platform Yoi is based on the concept of “experiential learning.” Through a range of assignments and assessments, managers are able to customize the onboarding experience for all new employees.

         Have you given thought to updating the onboarding process at your organization? What are some changes you are considering? Will you be adding some technological upgrades? Share your thoughts in the comment section below!

Meeting the Demand for Talent in 2018

In 2016, “failure to attract and retain top talent” was the number one issue in the Conference Board’s 2016 survey of global CEOs. A recent McKinsey Global Institute Study suggests “that employers in Europe and North America will require 16 million to 18 million more college-educated workers in 2020 than are going to be available.” This means the hunt for acquiring and retaining talent will be heightened as time goes by.

In particular, the ever-growing technology industry has large demands for talent. A Gartner report entitled “Service Providers are Waging War against U.S. Talent Shortage with Unconventional Methods” says to expect 1.4 million computer specialist job openings by 2020. Projections show universities won’t produce enough graduates to fill 30% of these jobs. How can we meet the needs for talent in 2018 and beyond?

A Manufacturing Business Technology online article points to four economic trends that may impact this talent issue:

1. Global Growth – indication of steady growth.
2. Softening Dollar – U.S. exports are increasing as U.S. products become cheaper to foreign nations.
3. Increase in U.S. Spending – increase in spending and inventories after two years of flat sales.
4. Political Realities Settling – as we move into a new year and go into a second term with the current Presidency, the expected tax overhaul should fuel hiring in the near future.

With these factors stoking the war for talent, what are some proactive choices Human Resource departments can make or consider when attempting to attract and keep critical employees? Recruiting trends indicate that due to advancements in Virtual Private Network technology, or VPN, remote workforces are growing. This approach appeals to a workforce that values flexible work. Perhaps investigating how your organization can feature some form of flexible work scheduling could be helpful in retaining talent. In addition, gamification technology could be used not only to engage current employees, but also to screen candidates for openings. Investing in such technology will appeal to the tech-savvy generations in the workforce.

Investing in on-the job training programs also can be helpful. As Mike Starich explains in a manufacturing Business Technology online article,

During the Great Recession, companies had to dramatically cut training costs — if no one is hiring, there is no need for training. Today, the pressure to hire is on and companies that are proactive on improving their approach to hiring and training will be ahead of the market. Embrace on-the-job training and develop internal training and certification programs to build your pool of skilled talent. Typically, Hiring Managers are more open-minded on job descriptions than HR and TA [Talent Acquisition] presume because they know that they can train people with right basic profiles and positive attitudes.

An ADP-powered blog supports this thought by pointing out that the lack of advancement opportunities is the second most popular reason why employees leave an organization. To combat this, offering learning management systems, training opportunities, and / or certification programs can give employees avenues to learn more and further develop without leaving their current employers.

What tools does your organization use to attract talent? Has your organization made adjustments to HR programs in order to more successfully attract and retain talent? We encourage you to share your thoughts in the comment section below!

Keys to Successful Employee Recruitment and Retention

Employee recruitment and retention are hot topics in the world of Human Resources.  In executing their duties, HR professionals every day address a number of recruitment and retention myths. These myths include the following:

1. People most often leave for more pay. While research shows that most people do not leave a job for more money, very low-income workers will leave for more money in order to make ends meet. Others use pay to express a perception of unfairness in how the organization values their contributions.
2. Productivity-based incentive programs produce long-term impacts and improved morale. Studies show that carrot-and-stick motivation programs do not pay off with long-term employee retention. Employees want a chance to learn and grow in the job, perform meaningful work, collaborate with good supervisors, and receive appreciation for a job well done.
3. Employees do not want more responsibility. Employees are not looking for more work, but are looking for opportunities to grow and develop their skills. Employees want to try new things, to feel skillful, and to experience personal satisfaction that comes from higher levels of achievement.
4. Loyalty is dead. Employees want greater work-life balance as well as the opportunity to make higher contributions to the success of the organization. Employees express loyalty when given the opportunity to better serve customers and when given more learning opportunities.
5. Improving employee satisfaction is expensive. Research tells us that employees cannot be bought. Employees want a manager that listens & responds to employees’ ideas, supervisors who support people’s growth & initiative, more training in how to do their jobs better, and effective, positive co-worker relationships.  Meeting these needs does not have to be an expensive undertaking.
6. Employee satisfaction is fluff. Studies show that lower turnover and greater satisfaction levels have a positive impact on customer satisfaction & organizational financial success.
7. Supervisors are the problem. Supervisors today on average have more staff reporting to them than in the past, yet the amount of training provided to supervisors is minimal.  The root issue of underperforming supervisors may rest more with the organization that the supervisors themselves.
8. My organization’s employees are different. Employee issues & needs are universal and are not dependent upon industry.

According to research conducted by Dr. Jim Harris and reported in his book Getting Employees to Fall in Love With Your Company, there are five principles embraced by the best-run companies in America, including Walt Disney, ServiceMaster, Southwest Airlines, Marriott, Ben & Jerry’s, North American Tool & Die, Lincoln Electric, Jacksonville Foods, and Cunningham Communication. These principles are as follows:

1. Capture the Heart. The highest achievable level of service comes from the heart. The organization that reaches its people’s hearts will provide the very best service. Organizations that help employees balance work & life demands, inject fun into the workplace, and create compelling visions of how they contribute to the organization’s success capture the hearts of their employees.
2. Open Communication. Employees are more loyal when they feel connected to the organization. Successful organizations encourage their employees to ask questions of their supervisors regarding the business and to have them involved in critical business decisions.
3. Create Partnerships. Many of these organizations create partnerships by sharing financial numbers with employees, both in good times & bad, and by linking incentive compensation programs to both individual & team success and failure.
4. Drive Learning. These organizations require employees to develop their skills to perfection and ask their employees to learn something new every day. A number of these organizations make available industry-specific reading material and provide in-house seminars, allowing employees work time to develop their skills.
5. Employee Action. These organizations understand that to increase employee loyalty and retention, they must go beyond traditional empowerment programs. Rather, they give employees the freedom to succeed. A rule at many of these organizations is to use your good judgment at all times.

Based on these five principles, the most successful organizations today employ the following strategy in the recruitment and retention of key employees.

1. Pay attention to top employees to make sure they are being developed, rewarded, and recognized for their contributions. Develop a reputation for this in the industry to attract future talent.
2. Build and maintain relationships with top employees, so that departure from the organization will be a personal & very difficult decision for the employee. Top employees also will share this sense of belonging with potential new employees.
3. Increase confidence and hope among employees through a participative vision & strategy. Engage your employees. Develop a reputation as an open organization that really listens to employees and their ideas.
4. Build loyalty, commitment, and trust, so that employees offer these back to the organization. We only have to look at Enron, Wells Fargo, and WorldCom to see what happens when trust is lost.
5. Create clear communication pathways so employees always learn important information first hand.

Recruitment and retention are major issues as employers struggle to keep the best & brightest employees and attract the same from the outside. Employees increasingly are demanding a balance of work & family life, and are not willing to sacrifice everything for their careers and employers. Lifelong employment with one organization is no longer a desired option for many employees. Employees are continually searching for the best pay, benefits, and culture & work environment. With turnover costs conservatively estimated at up to 50% of an employee’s annual pay, retention of employees and recruitment of future staff are critical.

In order to attract and retain top employees, organizations must have an effective, comprehensive strategy addressing four key components:

1.     Effective internal management,
2.     Career development opportunities,
3.     Work-life balance programs, and
4.     Strong compensation & recognition programs.

Organizations that pay attention to these components have a better chance of attracting and retaining the talent required to remain competitive in the marketplace.

Low Cost Techniques for Employees Recognition

Everyone wants to be recognized for their hard work. Many believe that recognition gives employees incentive to stay loyal to their organizations, and promotes the employees’ continued hard work. Despite this common thought, however, a 2016 Gallup report highlighted that in the United States, only “one in three workers strongly agree that they received recognition or praise for doing good work in the past seven days.” In this issue of Astronology®, we explore low-cost ways of engaging and rewarding employees with the goal of demonstrating that their dedication & hard work are appreciated.

Two Ways to Communicate Recognition
Informal recognition can be of a spontaneous nature, such as noticing a desired behavior and commending the employee for it. Sending a positive e-mail when tasks are taken care of well beyond expectations is another example of spontaneous recognition.

Another type of employee recognition is formal recognition. Formal recognition is helpful for those managers and supervisors who experience difficulty in making employee recognition a priority. It’s easy to get caught up with day to day activities, and before you know it, a whole year can go by without formal acknowledgement of employee appreciation. Setting aside a certain month out of the year to celebrate employees or instituting an employee of the month program are examples of formal employee recognition programs that do not involve major time commitments. An additional tool you most likely already have available to help in this regard is an efficient performance management system. Such a system can keep track of employee progress & goals, and aid in rewarding employees when it is appropriate.

Low Cost Ways of Saying Thanks!
Keeping in mind your own organization’s culture, perhaps some of the following suggestions could be a start in incorporating regular employee recognition:

• Provide a “Behind the Scenes” award for actions not normally highlighted 
• Give an “Above and Beyond the Call of Duty” (or ABCD) Award for employees who convey this attitude
• Create a “Kudos” column in the department newsletter 
• Hold a department break in the employee’s honor. Don’t forget to include light snacks! 
• Keep a supply of appropriately clever “thank you” notes for immediate rewards
• Award tickets to a sports game 
• Share gift certificates / cards, such as
• To a popular store or restaurant in the area 
• American Express, Visa, and MasterCard gift cards that allow the employee to choose where to spend the allotted amount given 
• Movie theater gift cards
• I-tunes gift cards for those iPod or iPad users 
• Distribute unique coupons to demonstrate thanks, such as a 
• Longer Lunch Coupon
• Shorter Work Day Coupon
• Work from Home Day Coupon
• Swap a Task for a Day Coupon

The point of employee recognition is to make the employee feel valued by the organization where he / she spends most of the day’s waking hours! When employers take time to acknowledge their employees’ hard work and attentiveness, they give employees esteem motivation to continue their good work. Consider employee recognition as part of creating a cohesive, happy organization. Such an organization will have greater success in achieving its objectives. No matter your organization’s budget or culture, spend some time giving employee recognition to those who deserve it.

The Ongoing War for Talent

As the United States approaches full employment, with the millennial generation a major component of the current workforce, the war for talent continues. In this issue of Astronology®, we will explore a few factors impacting the war for talent, as well as a few suggestions to help bolster an organization’s efforts at attracting, retaining, and growing talent in a tight labor market.

There are various factors to consider with respect to why talent moves. With an increasing full employment market developing here in the United States, employees are finding it easier to leave their current employers for work elsewhere. George Bradt suggests in an article with Forbes online that when employees feel that they are underemployed, or even underperforming, they will leave before they are fired. Disappointing decisions with respect to restructuring and cutbacks in benefits also have played a role in employees leaving. Bradt highlights that the millennial generation in particular has been exposed to such disappointing decisions and, as a result, are more inclined to search for new opportunities. A third, growing factor to consider is the burgeoning self-employment movement including the gig economy.

To combat the concerns raised by these factors, the following are suggested:

• Competitive Pay: Ensuring you are paying within the market for specific jobs will make it easier to attract and retain talent.
• Job Perks: Such perks do not have to be elaborate. Designing a flexible schedule option has become a popular perk. In a survey conducted of millennials by MetLife, 43% of respondents said they’d switch jobs if it gave them more flexible hours.
• Meaningful Story: 60% of the millennials surveyed by MetLife also mentioned that “a sense of purpose” was part of the reason they work for their current employers. To attract talent that are seeking a sense of purpose, organizations will have to craft a more meaningful story of themselves.
• Encourage Innovation: To further appease talent desiring to work with a sense of purpose, creating a culture of innovation will give employees room to grow and give meaningful contributions.
• While Hiring, Be Inclusive: Instead of just involving a specific department when hiring, include other organizational members in the hiring of new staff. These employees can help vet and close candidates. This process also sends the message to potential employees that they will be exposed to a network of colleagues in various departments when working at the organization.

Do you have any further suggestions to include on our list? Please share your thoughts with us in our comments section below!

Forgoing Annual Performance Reviews: What Are the Alternatives?

A 2014 survey report from the Society for Human Resource Management (SHRM) finds that 70% of organizations use annual performance reviews and 16% use semi-annual performance reviews. However, only 32% of surveyed organizations believe that managers are able differentiate between poor, average, and strong performers. Such stats can help us understand why there are mixed feelings when the topic of performance reviews is mentioned. In this Astronology®, we discuss the current trend of replacing or enhancing the annual performance review with regular communication.

Why are performance reviews conducted? Performance assessment became popular in part due to labor union contracts requiring annual reviews to grant merit raises. Over the years, performance reviews became the go-to method to help organizations formally set goals for their employees, make employees feel valued, and keep employees focused on the organizations’ visions. Performance reviews also served as a critical source document – proof of legitimate grounds for terminating an employee.

Times have changed, however. Depending on the nature of the work and organizational culture, performance reviews can be viewed as time consuming and / or too complicated to properly conduct. As a result, confidence can wane on whether the assessment not only is accurate…but also if the feedback and goals are worthy of consideration.

In some cases, the nature of work can change so frequently that a yearly assessment may not be sufficient to engage employees. In response, The GAP INC conducts regular coaching sessions between employees and management, replacing the need for yearly feedback. Rob Ollander-Krane, the Director of Talent and Performance at GAP INC, explains in a Forbes online article that “We call it GPS. If a GPS waited until you got to the destination to tell you that you took the wrong turn, you would never get where you wanted to go. This is how individuals benefit from regular feedback; there is an alignment and re-calculation that helps them get to their goal. From a company perspective, there are parts of our company that are doing well and some less so. I am more of the mindset that we should use performance management to help individuals achieve their goals.”

Another company that uses continuous communication in performance assessment is General Electric Co. (GE). Last year, GE introduced a phone app called “PD@GE” that employees use to assess both employees and managers, replacing the once-a- year performance assessment conversation with rolling feedback. The new system is being tested on the company’s 185,000 white-collar employees. This frequent communication method also allows for immediate adjustment if a goal or method to complete a task is working – or not – for an employee.

Back in 2012, Adobe made waves by revealing it was replacing the annual performance assessment with a program called “Check-In.” Donna Morris, in a 2014 Business Insider interview, explains “The check-in is far more informal. While the check-in process is regular and on-going, it starts at the beginning of the year, since it’s tied to people having yearly expectations.” After that initial meeting, an employee has established the year’s expectations. With regular on-going feedback, employees can perform better with the understanding of where they stand. Adobe boasts that within the first year of using the “Check-In” approach to performance, they saved 80,000 manager hours (equivalent to 40 full-time employees).

Astron National Director Jennifer Loftus notes that she regularly encounters the “should I eliminate performance reviews in my organization?” question when meeting with HR professionals across the country. “That question doesn’t necessarily have an easy answer,” explains Loftus. “The most effective advice I can provide is this: if your organization’s culture is supportive of honest, open, and regular weekly communication between managers and employees, then eliminating annual performance appraisals might be the right move. If, however, this switch will lead to even less communication between employees and managers, stay where you are. Strong communication systems are essential to making a performance review-free environment successful.”

While it looks appealing to completely scrap your performance assessment method, it’s important to think of how such changes could affect your organization. In some cases, perhaps adopting a hybrid method of constant communication included with an annual overview maybe more suitable. We here at Astronology® would love to hear your insights on the trend of changing annual performance reviews. Feel free to share in our comments section below!

Living Wages in 2016 – How Do Employers Respond?

Seven months have passed since New York State’s minimum wage increased to $9.00 per hour, while the “fast food” minimum wage increased to $9.75 across most of the state, and to $10.50 in New York City. If you do not work in the restaurant industry, or in New York State, you may think this change doesn’t affect you. However, an increasing number of industries are concerned that these pay increases will have a negative domino effect on their organizations. In this issue of Astronology®, Astron Solutions discusses the challenges these new increases present to employers outside the fast food industry.

Last year, a New York Times online article expressed that the decision to raise the minimum wage for fast food workers “thrust(s) New York State to the forefront of the current experiment.” The article goes on to state that “based on projections from government data, the proposed $15 minimum wage for fast-food workers could represent more than 60% of the wage of a typical New York City worker when it takes effect at the end of 2018...” The New York Times online article highlights the 2003 minimum wage increase in Santa Fe, New Mexico, to compare and predict New York’s possible future. Despite a concentrated analysis with current modern tools, economic analyses of the Santa Fe increase suggest it had little effect on employment.

Last year when news broke on the $15 minimum wage legislation, Astron Solutions’ Michael Maciekowich noted that the impending changes caused quite a stir. According to Mike, “numerous Astron clients in New York State called, concerned that the ‘fast food’ minimum wage would in essence become the new state minimum wage, in that these organizations compete for entry level staff with the fast food industry. As the ‘fast food’ minimum wage increases to $15.00 over the next three to five years, organizations that compete for staff with this industry will have no choice but to raise their minimum wages to compete. This will also have a domino effect, in that this increase in the entry wage will create pay compression with coordinators and supervisors in the same work units. This compression will add unforeseen additional budgetary impact. For non-profit organizations, this will just add to concerns of how to address increasing pay expenses with already shrinking revenue dollars."

In accord with Mike’s thoughts, in April, New York Governor Cuomo signed a $15 minimum wage plan that will

• Give New York City workers in businesses with at least 11 employees a $2 yearly minimum wage increase, starting with the minimum wage set at $11 at the end of 2016. A $15 minimum wage would be reached on 12/31/2018.
• Give New York City workers in businesses with 10 or fewer employees a minimum wage increase to $10.50 at the end of 2016, then $1.50 each year. A $15 minimum wage would be achieved by 12/21/2019.
• Workers outside of Nassau, Suffolk and Westchester Counties would have an increase to $9.70 at the end of 2016, with $0.70 year increases annually until reaching $12.50 on 12/31/2020. Afterward, the wage will increase to $15 via an indexed schedule set by the Director of the Division of Budget.
• Workers in Nassau, Suffolk and Westchester Counties will have their minimum wage increased to $10 at the end of 2016, with $1 increase each year. A $15 minimum wage will be reached on 12/31/2021.

While some organizations are wondering if they can really afford the continual increases, other organizations seem to be slowly addressing this concern by creating their own solutions. This month, Jamie Dimon wrote an Op-Ed in The New York Times about JP Morgan’s plan to raise its minimum wage for 18,000 employees to between $12 and $16.50 per hour, with geographic and market factors considered.

Meanwhile, a Fast Company online article last year examined the popular fast food chain Chipotle, and how they could address the living wage issue. Chris Arnold, a Chipotle spokesman, mentioned in an e-mail to Fast Company that “we have never taken a position on the minimum wage and believe that a minimum wage or starting wage tells only part of the story; We already pay above minimum wage and offer benefits that are more than competitive.” Some of those benefits include paid sick & vacation days and tuition reimbursement. The Fast Company Online article explained that even if the company had the CEOs’ paychecks reduced to $1 per year and divided the compensation among the current employees, it would result in only a $0.55 increase per hour for an employee working 40 hours per week. So what can they do? Consider that in San Francisco, the minimum wage increased to $12.25, and will increase to $15 by 2018. Coincidentally, it had been noted that Chipotle raised its menu prices in the city by 10%. Such a move sends the message that customers have to share in the responsibility of lifting minimum wages. In short, if you can afford an $11 burrito, then you can probably pay for the same burrito with the cost increased by $1. Time will tell if this will work.

Could you adopt this approach if your organization is affected by minimum wage increases? Would you consider adopting this approach proactively? Have you prepared other solutions to address the minimum wage issue? Write to Astronology. We’d love to hear your input!

Save Your Employees from the Dark Side: Human Resource Lessons from Star Wars

Through George Lucas’ storytelling, filmgoers have come to know Darth Vader as the epitome of evil. But as viewers learn from the early 2000 Star Wars prequel trilogy, underneath that intimidating exterior beats the heart of a man whose turn to the dark side was largely a result of his frustration with his former employer.

What if the Jedi had an effective human resource program? Perhaps we would have seen Anakin chatting with Yoda over intergalactic eggnog at the Jedi holiday party, rather than Darth Vader bowing to the evil emperor in Revenge of the Sith.

So where did the Jedi’s HR program go wrong? At first glance, there doesn’t appear to be a problem. After all, the Jedi offer an excellent training program for new employees, surely making them one of the galaxy’s employers of choice. Where else can you learn how to wield your very own lightsaber and do Jedi Mind Tricks? They don’t offer that type of training even at Microsoft.

Concerned for employees’ futures, wise companies are.

In Revenge of the Sith, we see that Anakin, now a Jedi Knight, has become one of the Jedi’s “star employees.” However, even though Jedi Knight is a highly respectable title, Anakin is unhappy regarding his entry level status. He desperately wants to be promoted to Jedi Master believing that this new title would bring him the respect that he feels he deserves. What Anakin doesn’t seem to understand is that each Jedi Master has years of solid experience and knowledge of The Force under his or her belt. As a result of this disconnect, Anakin becomes increasingly frustrated and considers another job offer.

“A Career Progression program could have helped in this situation,” explains Michael Maciekowich, National Director, Astron Solutions. “Building career paths lets employees know that they are moving forward within an organization, giving them a sense of direction. Anakin would have realized that the Jedi cared about his career growth, and that the promotion to Jedi Master was an attainable goal, had there been a clear career progression program in place.”

Communicate you must.

As the story unfolds, we see that there is also a serious lack of communication between Anakin and the Jedi’s upper management, the Jedi Council. In fact, Anakin reveals to his wife that he feels lost and doesn’t believe that the Jedi Council trusts him.

“The Council could have considered a First Impression Survey, which is given to employees within their first few months of employment. This is a crucial time to provide integration into the organizational culture, encourage open communication, and let new employees know that you value their feedback,” says Jennifer C. Loftus, MBA, SPHR, PHRca, GPHR, SHRM-SCP, CCP, CBP, GRP National Director, Astron Solutions.

Offer great benefits, you should.

One major reason why Anakin eventually turns to the Dark Side is because he believes that they offer better “benefits” (and we don’t mean a good dental plan). The confused, young Jedi is concerned that he is going to lose someone close to him due to medical reasons, and believes that his new position will offer him the “ultimate” in healthcare insurance. As he quickly learns, however, his new employer wasn’t exactly truthful about the health coverage.

Perhaps the Jedi weren’t clearly communicating their own benefit plan to Anakin. Increased communication and attention to employee feedback could have helped in this situation as well.

“When choosing from the vast array of benefit offerings, it is important for HR professionals to analyze their employees' needs. The Jedi Council should have asked their employees what standard and voluntary benefits would be of most value to them and work to make those benefits available,” explains Loftus. It may be too late for Anakin / Darth Vader, but it’s not too late to save your own employees from the Dark Side. Remember, you don’t need The Force to make your team happy, just solid HR programs.