EWA

Attract and Retain Employees with Earned Wage Access (EWA)

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Sponsored by: ADP

Employers are looking for new ways to stand out in terms of employee perks and benefits. One solution: earned wage access (EWA). This is a powerful tool when it comes to meeting today’s employee needs. It’s also got proven advantages when it comes to attracting talent and landing great hires right now.

As a problem solver, EWA covers a lot of ground at a time when anything less than a true game-changer won’t work. Combine a 3.5% unemployment rate, more than half a million jobs added in July 2022, the continuing Great Realignment, and troubling inflation, and you’ve got a perfect storm facing employers. Talent strategy right now is a double-edged sword. You can’t just recruit, and you can’t just retain. You need to do both to stay competitive as an organization. That means successfully addressing employee as well as recruitment pain points.

Employees Coming Up Short

From a workforce perspective, financial anxieties are weighing heavier than ever for countless employees. A recent PwC financial wellness survey of more than 3,000 employees across several industries found that just 42% felt their compensation was keeping up with the rising cost of living expenses in 2022 — down from 52% in 2021. Further, 56% of all employees are stressed about their finances.

What that means in practical terms is that for most, access to pay can make a key difference. Research by ADP  on earned wage access benefits in today’s world of work found that 69% of employees are likely to request their wages early at least once within the next year. Requesting wages early is prevalent for a clear majority of Gen Z and Millennial employees. But, this is also true for nearly half of older employees as well:

  • Gen Z (18-24) 74%
  • Millennials (25-44) 86%
  • Baby Boomers (45-64) 48%

Here’s the question: What happens if an organization doesn’t have a system in place to grant such a request? In terms of well-being, it will add to the financial stress already affecting employees — and that can have all sorts of consequences. The PwC study’s respondents said financial stress took a severe to major toll on their mental health (34%), sleep (33%), self-esteem (30%), physical health (23%), and relationships at home (21%). Additionally, 18% said financial stress interfered with their ability to be productive at work. 15% said it directly affected their ability to go to work at all.

Employee Stress = Organizational Stress

It’s not hard to connect the dots between financial stress and organizational stress. An organization that lacks a policy and/or system for early wage access could be conducting a not-so-subtle form of self-sabotage even in terms of operational success. In terms of employer reputation, it’s even clearer. Employees want to work for an organization that clearly cares about their well-being — including their financial well-being.

The PwC survey found that 76% of financially stressed employees are likely to look elsewhere for an employer who cares, versus 38% who aren’t financially stressed. To put it bluntly, financially stressed employees are twice as likely to search for a better employer. By inference, then, if you’ve got a skittish, stressed-out workforce and no means to ease their financial stress, you’re twice as likely to lose talent to someone who has the means in place. And what about landing new hires in the first place? ADP research found that over 90% of employers (all with more than 1,000 employees) who offer EWA find that it improves their employees’ sense of financial security and helps with both talent attraction and retention.

EWA as a Solution: Best Practices

Earned wage access is both a digital innovation and a well-being booster — and its time has come. It fits into the framework of modern employee expectations in a range of ways. It pragmatically demonstrates that the employer values employee needs, and it solves a very human conundrum with a practical digital tool. Additionally, it breaks the mold of traditional talent management for a more innovative, flexible approach. But like any innovation, there are strategies that will leverage its full potential and strategies that won’t.

Here are four important best practices when it comes to incorporating EWA into your organization:

  1. Consider EWA from a business standpoint: A well-designed, modern EWA program offers an inarguable business advantage. Recent ADP research on earned wage access benefits surveyed 500 companies with more than 150 employees and found that 95% believe that employee financial wellness impacts their company. Suppose EWA is provided as a system that offers a simple, self-driven, well-documented means to access pay early. In that case, it can offset a myriad of problems, from employee-manager friction to accounting snafus to attrition.
  1. Integrate EWA into existing compensation and payroll processes: Rather than a bolt-on solution that’s isolated in terms of data, record-keeping, and information systems, EWA should be interconnected with the processes already in place. Ad-hoc doesn’t have to mean anarchy. EWA is best when it keeps pay administration both simple and cost-effective. Offering employees flexibility and choice that doesn’t complicate the process. Employees should be able to access their wages without disrupting the integrity of the payroll cycle.
  1. Provide employees and managers with the features that count: For employees, that could mean easy enrollment, a straightforward, anytime, mobile-friendly platform, fast access to pay, clear visibility into pay balances, and electronic pay.
  1. Don’t be shy about informing your workforce: Companies that offer EWA are staying on the leading edge of digital transformation. They’re also demonstrating an evolved approach to compensation. But competitive pay doesn’t just mean the highest salary in a given role in a given industry. It means a flexible, responsive compensation program that eases minds. As far as retention, that’s going to have a big impact:  93% of employers believe that offering EWA helps boost employee retention. But unless you broadcast the policy, employees and new hires won’t know it. Given all the pressures we’re under, it’s not a time to be quiet about modernizing your employee perks.

Empathy as an Organizational Benefit

With more employees than ever living paycheck to paycheck, earned wage access enables your employees to avoid the friction (and stress) around having to ask a manager for an advance on pay or take out a high-interest loan to tackle an unexpected financial burden. It also takes managers out of the hot seat by providing a built-in, integrated process.   

No question: digital innovations are pushing the envelope on how we work, evolving traditional structures like workspace and compensation into more people-centric approaches and offering new solutions to a range of challenges. But rising to the occasion and leveraging these new tools is up to the organization. A digital EWA platform offers a means to address a very human need. It’s a clear example of empathetic people management — and it could be the competitive edge in terms of talent.

To learn more about EWA, ADP is hosting a webinar on “Offering Earned Wage Access: Strategic & Compliance Considerations”, Thursday, September 8, 2022, 2p Eastern. Register Here!

Hybrid

How the Era of Hybrid Work Impacts Employee Travel, Spending, and the Workplace Experience

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Sponsored by: SAP Concur

The next chapter of the future of work – hybrid work—is underway as businesses return to the physical office in some capacity while honoring employee flexibility to work from home. Hybrid work is new territory, and there’s more to consider than desk assignments. 

With employees working from different locations on any given day, there’s a need to reconsider the processes and policies that govern day-to-day work. Especially when it comes to employee spending. 

Here’s what is important to know about employee spend – through travel and expenses – in the era of hybrid work, and how it impacts the workplace experience.

Work From Anywhere Business Trips

Business travel took new shapes during the pandemic. While many organizations paused formal travel programs, some employees took personal trips with a business component. For example, the “work from vacation home” trend. Workers took advantage of remote work settings by taking trips with long stays. All they needed was Wi-Fi and a charging station, and they could work from Hawaii for a month. 

The flexibility to mix work and personal trips is likely to stick and become an expected aspect of workplace benefits. A recent SAP Concur survey of 1,000 U.S. business travelers found that nearly half of business travelers perceive “bleisure” travel – taking personal time off while on a business trip – as a standard workplace benefit. 

The hybrid workplace is likely to travel as well. Business travelers say that common workspaces during a business trip have included a café or coffee shop (70%), lobby (64%), waiting room (57%), and poolside (31%). Employees are now used to working from the couch or their bed. It makes sense that they’re more accustomed to non-traditional workspaces during business trips as well. Now, they’ll appreciate the flexibility to choose alternative lodging accommodations or casual business meeting spaces. 

As a side note, more than a third of business travelers (39%) have reported working from a restroom. But we’re not anticipating the start of porcelain cafes. 

Bumps in Hybrid Spend Processes

The hybrid work environment calls for adapted spend management processes. Not only are employees spending on new expense categories, like home office equipment, but the associated processes used to manage spending have typically relied on workers being in the office. Now, they’re conducting business from waiting rooms or restrooms, and without proper infrastructures, errors are likely to occur. 

An SAP Concur survey of 100 U.S. finance managers and 1,000 U.S. business travelers found that nearly all finance managers (98%) have seen an increase in non-compliant expenses during the past year. Though most (53%) believe those expenses stem from unclear policies, employees admit to being a bit more mischievous. Nearly two-thirds of business travelers admit to intentionally trying to get reimbursed for personal expenses. In fact, nearly all (89%) have submitted at least one travel expense in the past year that might have violated their company’s travel policies. On average, $3,397 of questionable expenses.

What could be motivating employees to skirt policies? In the past year, 86% of business travelers have reported that their company has been delayed in reimbursing their business expenses at least once. Nearly all agree this impacts their personal finances. Many people have been challenged by rising costs from inflation. As a result, late expense reimbursements that create added stress for workers are an issue.  

The Digital Office

One aspect of work provides consistency: the digital office. No matter where employees are, they’re plugged into digital infrastructures that enable them to do their best work. Travel and expense management solutions should fit within this framework and enable workers to make purchases, on the go, simply. 

Learn how to support and adapt to the future of travel and expense management in our eBook.

Meeting the Needs

Meeting the Needs of a Changing Workforce

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Graduation season is here, and many recent or soon-to-be graduates are about to enter the workforce. In fact, it is estimated that companies plan to hire 26 percent more new graduates from the class of 2022 compared to the year before. Meeting the needs of this new workforce is key to successful talent acquisition and retention. 

The world is different than it was three graduation seasons ago. Businesses have needed to adjust the way they approach the hiring process to build strong teams. For these organizations to attract and retain the top talent within the job market, a different mindset and approach are required.

The future of work is now, and it is reliant upon driving change through technology, different ways of working, fresh perspectives, and diverse voices.

The Demand for Flexibility

Flexibility is an unwavering demand of the new generation of workers. In a world that relishes instant communication and expects full transparency, job candidates are more aware of the vast number of organizations that meet their employees where they are. So what does this mean for companies that are looking to hire and retain candidates who are overwhelmed with options? It means that flexibility is a must – not a “nice to have.”

Flexibility means allowing employees to build a schedule that best fits their needs. Many organizations are adapting accordingly as they recognize this level of flexibility is something they must offer their current and future employees. In fact, 81 percent of executives are changing their workplace policies to offer greater flexibility. This is a standard expectation of our new normal. A failure to keep up with these demands means limiting your talent pool and losing even the most loyal of employees.

Flexibility also means empowering employees to choose where they work. Organizations that promote a “work from anywhere” mindset prove that they truly foster an environment of flexibility and a consistent employee experience regardless of where one is seated. Companies have quickly acknowledged that the “work from anywhere” mindset vastly widens their potential candidate pool. These organizations can focus on recruiting candidates with different skillsets or backgrounds that can positively impact the business.

The companies that will win in the top talent competition are those that realize it is not where one works, but rather it is the breadth and quality of the work produced that is critical in allowing their organization to scale to the next level.

Defining Your Purpose and Aligning With Candidates

As Gen Z gains more stake in the workforce, purpose-driven practices will continue to take hold at the forefront and become the foundation of business. This shift has been bubbling under the surface for a few years, but now it sits firmly at the core of candidate requirements.

Organizations that choose to look intrinsically and identify the true purpose behind their work will find that like-minded talent turns their way. Purpose comes in many forms and can be realized in a variety of ways. There is no doubt that the new generation of candidates will not work for a company that does not have a defined and pursued purpose in place. The questions that all organizations must ask themselves are: What is the purpose of what you do? Who will you positively impact? How can you build a workplace that drives this purpose every single day?

The Impact of Technology

The Insurance industry exists largely to serve and support individuals, families, and organizations across the globe in times of need. This institution is comprised of companies that face challenges of how to bring a fresh and modern approach to help drive their purposes. Due to the length of its establishment, it would not come as a surprise if many candidates, particularly new graduates, saw the insurance industry as old school and have not considered it for their future careers. However, the reality is that there is a multitude of career advancement opportunities as technology such as software-as-a-solution, artificial intelligence, and machine learning continue to mature and become a staple within the industry. Insurance is a perfect fit for the new generation of workers who are inherently creative problem-solvers and who also wish to deepen their technology skillsets.

The companies that truly live out their defined purpose and offer the skills and training programs that employees desire will be the ones that gain the talent pool’s attention and thus deliver the innovative solutions that will be disruptive within their industry.

Cultivating Diverse Talent is the Path Forward

The changing workforce is shedding a bright light on the notable differences in how the varying generations approach their line of work. However, one similarity all generations in the workforce share is that employees only feel satisfied within their careers when they are comfortable enough to show up as their true selves and follow and express their passions and beliefs. Organizations that allow individuals and groups to be heard and empowered will win the competition for great talent. Without a doubt, upholding diversity, equity, and inclusion (DE&I) practices are at the forefront of these efforts.

Companies that promote their DE&I efforts create a culture where employees feel respected, connected, and proud. These organizations that choose to take a stance are more favorable to the new generation of candidates, many of whom will not work for companies that do not have DE&I programs in place. For organizations with customer-facing roles, an increased level of pride from employees leads to an increased level of engagement. Therefore, allowing them to better serve their customers and build stronger relationships with critical stakeholders.

Diversity Fosters Innovation

Organizations with diverse leaders and employees innovate at a faster rate. Diverse thinking and perspectives fuel creative ideas. It also fuels development cycles for new solutions, allowing companies to gain and sustain a competitive advantage by getting to market faster and focusing on the long-term value for their customers. This will in turn drive better business outcomes. 

Recently, our organization held a Diversity Summit to reflect on and discuss the future goals of DE&I in the workplace. It was a transformational three days, and the Summit is the type of event every organization should host more of. The group’s time together was filled with impactful moments that were educational, inspiring, and motivating to our employees. Both on a professional and personal level. 

DE&I initiatives should be incorporated into every part of the business and is not merely a three-day event. Leaders need to make a conscious effort to inspire employees and drive company culture by “walking the walk.” Candidates are not impressed by companies with executive-level and corporate “buy-in”. They are drawn to companies with true executive-level and corporate “believe-in”. An organization’s DE&I stance must stem top-down, and it cannot just be a focus within the HR part of the organization, or it will fall flat.

Every employee at every level within a corporate environment owns the company culture. Every candidate in the talent pool has a vested interest in being a part of an open culture that promotes belonging. 

A Few Final Thoughts

A company’s most valuable asset is its people. 

Companies must regularly reevaluate their hiring and internal processes. These processes are only successful when companies foster programs that empower their employees both professionally and personally and allow them to pursue their passion and purpose.

The companies that do this are the ones that will attract and retain candidates of the highest caliber.

Fair

6 Ways Employee Recognition can be Established in a Fair Climate

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Sponsored by: Cristaux International

Kids are known for complaining when things aren’t fair. Although professional adults may not be as obvious as children, they do the same thing. Perhaps people worry about fairness because it is crucial to happiness. Any organization can find great success and growth by developing a fair recognition climate, but where does one start?

Fairness incorporates objectivity and human emotions. It’s a tricky balance to hack, but the tips below are meant to help leaders set up fair and effective recognition programs. With a clear strategy and positive culture, a company can grow from the inside out.

Why is Fairness Important to Recognition? 

Fairness helps cut bias and gives employee recognition credibility. By practicing fairness, more team members are inspired to take part in programs and opportunities. This buy-in is essential for including all employees and growing your whole team. Whether developing in-person or remote employee recognition, it’s important to make it accessible and encouraging for everyone. 

A fair recognition climate is a determining factor in establishing and strengthening corporate wellness in your company. It has many benefits considered by itself and from an overall corporate perspective.

 

Fair Recognition Programs

Overall benefits of corporate wellness (©Cristaux.com)

 

6 Ways to Establish a Fair Recognition Climate

There are countless ways to build a fair recognition climate. It largely depends on resourcefulness, planning, and inclusivity. When creating new initiatives, consider the team’s goals and the company’s capabilities. With creativity and collaboration, any organization can develop recognition programs within its means. Fairness is essential to effective recognition. It’s important to use the following tips and to see what works best for your team.

1. Use Employee Data

Choosing award recipients is often the most difficult part of recognition programs. To show fairness, use employee data and talent analytics to guide the decision-making process. Additionally, consider developing programs that are entirely objective. For instance, a years-of-service program celebrates employee anniversaries. This recognition is ideal because it can be achieved by all employees and allows leaders to remain objective.

It’s important to keep track of different data sets including employee start dates, reviews, and quotas. Different information can inspire diverse programs like sales recognition and customer service awards.

2. Allow Everyone to Achieve

Recognition must be a level playing field. From veteran staff members to new employees, everyone must be able to be recognized for a program to be fair. Imagine that an organization is putting together an annual awards program for its employees. Some staff members may not qualify for a specific category, so they must be considered for other awards. For example, new hires can be recognized as emerging leaders. Managers can be honored within their departments.

3. Recognize Consistently

Making recognition a routine for one’s company helps develop positive traditions. Consistency is key to building fair recognition. By sticking to a schedule, everyone shares the same expectations. Also, regularity encourages more people to achieve. Team members learn the routines, see others being celebrated, want that for themselves, and work harder.

Therefore, employee-of-the-month programs are so popular. They capture the importance of consistency and create a structure for employee recognition.

4. Show Appreciation

While recognition honors achievements, appreciation is often unprompted by behavior or actions. Instead, it may look like a catered lunch for a holiday. Small moments like these include staff members who may be struggling to go above and beyond. Also, it shows unconditional support and helps foster a culture of gratitude. Taking time to give genuine thanks goes a long way.

5. Celebrate Diverse Accomplishments

Supporting diversity in the workplace is crucial for growing modern businesses. This way, team members have many ways to succeed within their organization. For instance, consider honoring different departments or soft skills like teamwork and time management.

Consider recognizing personal milestones in addition to professional ones. By doing this, leaders show appreciation for the complex individuals they work with. Examples of what to celebrate include completed education outside of work and growing one’s family.

6. Recognize in Different Ways

Some employees prefer public recognition, while others opt for something more private. Get to know your team by talking with them or sharing a survey for them to complete. Consider asking how they would like to be recognized and what gifts they would like to receive. This way you can be more effective by personalizing your recognition efforts for each person. 

Fairness Makes Recognition Fruitful

The best recognition programs are fair, enjoyable, and inspiring. However, they look different for each unique organization. Like Rome, recognition programs are not built in a day. Take your time to develop what works best for you and your people and see the benefits pour in.

Skilling

Why Skilling Investments Directly Correlate to an Organization’s Bottom Line

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Sponsored by: Cornerstone

Learning is the most important thing we do at work. 

I know that’s a bold statement. I’m sure you’re already trying to think of things you do at work that are more important than learning. But the truth is that learning is the foundation of how we grow and perform. 

Think about the learning opportunities at your organization. Are there company-sponsored places you can go to learn? Or do you simply rely on Google and YouTube? 

The reality is that many organizations rely on employees to find their own learning and development opportunities. So, what’s the problem with this? 

The problem is that this lack of prioritization for development opportunities at work won’t get us through the current talent and skilling shortages many industries are facing or help us grow into the future of work. 

These aren’t problems that will go away on their own, either. In fact, the current skilling and talent shortages are keeping business leaders up at night. According to a recently published Cornerstone People Research Lab survey, 48% of all employers placed skills and talent shortages within their top three concerns over the next three years. 

This urgency from business leaders is further evidenced in PwC’s Annual Global CEO Survey, where 74% of CEOs reported being concerned about the availability of key skills. 

Cornerstone’s survey also found that while ‘laggard’ and ‘average’ organizations show a consistent employer-employee confidence gap in skills development, high-performance organizations are ahead of the game. 

Let’s explore how high-performance organizations approach skills development and why it works.  

High-Performance Organizations as a Model for Success

High-performance organizations put their money where their mouth is. For example, when asked when they would prioritize skills investments for their company, 72% of respondents reported that prioritization was expected to occur within the next year or had already begun. Meanwhile, 68% of lagging organizations plan to invest in skills development within three to five years. 

According to our research, high-performance organizations aren’t just investing in one or two learning and skill development areas either. Nearly all high-performance organizations are prioritizing learning and development technology, learning content, formal education or university learning, mentoring and coaching programs, and on-the-job skills training.  

Meanwhile, only 34% of lagging organizations prioritize formal education, and 52% invest in mentoring and coaching programs. There’s more than a 30-point gap between high-performance organizations and laggards. 

High-performance organizations are also increasingly adopting an internal talent marketplace mindset. They are using skills data and skills development programs to promote internal mobility. Ninety-seven percent of high-performance organizations agreed that the role of talent development is to improve employee growth. Employees also agree – 82% of employees at high-performance organizations reported feeling that their company had insight into the gaps between current skills and those needed in the future. 

Developing internal talent is the number one way high-performance organizations plan to fill skills gaps. Meanwhile, lagging organizations plan to hire externally to fill those gaps over the next three years. 

Up-Leveling Your Skilling Strategy 

So, where do you start in up-leveling your skilling strategy? 

First, take inventory of the skills currently available in your organization. Then, predict what skills are most important to the future success of your organization. Once you understand what skills gaps exist, you can chart a plan to help close them. 

To do this, AI-based skills assessment and pathing technology can help identify those gaps between existing and future skills and make intelligent job and career recommendations based on skills.  

Once you connect skills development to career growth, employees can more easily chart their desired career path by seeing an integrated view of the skills needed and how it translates to internal mobility. 

This kind of growth investment isn’t just good for your people – it’s good for business. According to a 2021 Gallup survey in partnership with Amazon, skills training is one of the top perks younger workers look for in a new job. Further, 61% of respondents also said that upskilling opportunities are important for staying at their job.  Seventy-one percent agreed that job training and development increased their job satisfaction. More satisfaction leads to better retention. Better retention means better success and outcomes for a business.

The takeaway is simple. When organizations adopt an internal skills marketplace and an internal-first hiring mindset, employees stay engaged and happy, and your business increases its chances of successfully navigating the future.