How Employers Are Shifting Strategies as Recruitment and Retention Struggles Continue

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Workplace dynamics have significantly changed in the last few years. Employers have been forced to respond to increasing worker demands for workplace flexibility, well-being initiatives and inclusive cultures. In addition, workers are becoming more vocal about management styles they are no longer willing to tolerate. This has resulted in many employers continuing to struggle to attract and retain talent. To address these struggles, many organizations have started altering their approach to workforce attraction and retention.

This article discusses current recruitment and retention trends and provides several strategies employers are using to help address and overcome such struggles.

Recruitment and Retention Struggles Continue

Employers continue to grapple with recruitment and retention struggles due in large part to changing employee preferences. According to a recent study by Willis Towers Watson, 83% of employers reported difficulty attracting employees, while 74% reported difficulty retaining employees. These are the highest figures in the past 12 years. Many organizations are still dealing with the lingering impact of the COVID-19 pandemic, which reshaped workers’ expectations, including where and when they work. This has forced many organizations to adapt their recruitment strategies.

Moreover, the tight labor market increased competition among employers for key talent, pressuring organizations to offer attractive compensation and benefits packages. Despite these efforts, nearly 75% of employers are experiencing talent shortages and difficulty hiring, according to a 2023 survey by global workforce solutions company ManpowerGroup. As these trends persist, employers’ recruitment and retention struggles continue. This is forcing employers to develop new and innovative approaches to address these challenges.

Employees Are More Selective in Where They’re Willing to Work

Workplace environments and management approaches are impacting where employees choose to work, according to a recent survey by online employment solution company Monster. The survey results revealed that certain employment practices and behaviors create anxious or negative feelings among employees, which employees consider red flags. The survey also found that the biggest employee concern is being micromanaged by supervisors and managers. Other red flags included:

  • Excessive meetings
  • Inflexible work hours
  • Team bonding exercises or out-of-office events
  • Mandatory assignments during the interview process
  • Inability to negotiate benefits

Awareness of these concerns can allow employers to evaluate whether any red flags are present in their organizations and make necessary changes to improve their recruitment and retention efforts.

Strategies to Address Recruitment and Retention Struggles

Due to these ongoing struggles, many employers are responding with multiple strategies as well as focusing on emotional intelligence in their attraction and retention efforts. This is leading many organizations to shift to taking a holistic approach to attracting and retaining workers by focusing on customizable benefits, positive work environments and meaningful work assignments and duties.

Employers can consider the following strategies as they respond to their ongoing recruitment and retention struggles:

  • Prioritize onboarding. Employees who go through a structured onboarding are 58% more likely to remain with the organization after three years, according to a study by the Wynhurst Group. By including onboarding in an organization’s overall engagement and retention strategy, employers can better communicate their values, foster a positive relationship and communicate expectations to set employees up for success. Onboarding is also an opportunity to educate employees on the full range of available benefits, ensuring that employees are aware of all the benefits available to them.
  • Create meaningful connections. Making sure employees have meaningful workplace connections can help employees feel supported and valued. It also tends to increase workers’ loyalty and commitment to an organization. Employers can do this when new employees join the organization by assigning mentors, scheduling regular check-ins and organizing team-building activities.
  • Utilize employee engagement surveys. Employee feedback can be a valuable resource for employers to understand their workforce. Surveys can uncover underlying issues, such as decreased productivity or high turnover rates, and create actionable change that drives progress within an organization. Employers who effectively utilize employee surveys may see many benefits, such as increased employee engagement, job satisfaction and retention.
  • Train managers and supervisors. Managers can significantly impact employee engagement, job satisfaction and productivity, and retention. When managers lack important interpersonal skills or emotional intelligence, they can contribute to high rates of turnover. Organizations can train managers to have strong interpersonal skills (e.g., connection, honesty, respect and communication) so they can better recognize and respond to employee needs.
  • Improve workplace culture. Toxic workplace culture is the top reason employees quit their jobs, according to a recent survey by employment website FlexJobs. When employees feel overworked and underappreciated, they’re more likely to look for new opportunities. Employers can create a positive and healthy workplace culture by promoting mental health and well-being and fostering open and transparent communication.

Takeaway

Employers who successfully address the reasons employees choose not to accept job offers or quit their jobs will likely experience less time to fill open roles and reduced employee turnover rates. This can help organizations reduce hiring costs, improve employee morale, and give a competitive advantage over similar organizations that are unable to address their ongoing recruitment and retention challenges.

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The Industry Impact of Medicare Drug Price Negotiations

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

The Biden administration recently unveiled the first 10 prescription drugs subject to Medicare price negotiations. The Medicare Drug Price Negotiation Program—part of the Inflation Reduction Act (IRA)—is the Biden administration’s latest effort to combat rising health care costs. According to a Kaiser Family Foundation survey, more than 60% of the 65 million people on Medicare take prescription medication, and 25% take at least four prescriptions. Medicare drug price negotiation aims to lower out-of-pocket costs for millions of seniors and offer savings for taxpayers.

The first round of Medicare Part D drug negotiations will begin this year, with the new prices becoming effective in 2026. Over the next four years, Medicare plans to negotiate prices for up to 60 Part D and Part B drugs—and up to an additional 20 drugs every year after that. This article outlines the potential impacts of the Medicare Drug Price Negotiation Program on the health care industry.

Overview of Medicare Drug Price Negotiations

Under the IRA, the Medicare Drug Price Negotiation Program allows the federal government to negotiate directly with drug manufacturers to improve access to some of the costliest brand-name drugs. Many Medicare Part D enrollees depend on medications to treat life-threatening conditions, such as diabetes and heart failure, but may not be able to access them due to costs.

The following Medicare Part D drugs will be the first ones subject to these negotiations:

  • Eliquis, for preventing and treating blood clots
  • Jardiance, for treating diabetes and heart failure
  • Xarelto, for preventing and treating blood clots; risk reduction for patients with coronary or peripheral artery disease
  • Januvia, for treating diabetes
  • Farxiga, for treating diabetes, heart failure and chronic kidney disease
  • Entresto, for treating heart failure
  • Enbrel, for treating rheumatoid arthritis, psoriasis and psoriatic arthritis
  • Imbruvica, for treating blood cancers
  • Stelara, for treating psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis
  • Fiasp/Novolog, for treating diabetes

These 10 drugs are among the highest costs in total spending in Medicare Part D. In fact, Medicare enrollees taking these drugs paid a collective $3.4 billion in out-of-pocket costs in 2022 to obtain them. However, according to the Centers for Medicare and Medicaid Services’ (CMS) guidelines, if a biosimilar enters the market and finds substantial buyers, the agency will cancel or adjourn negotiations for the corresponding name-brand drug listed for negotiations. For example, two biosimilar versions of Stelara are set to launch in 2025. If they are successful, the CMS will no longer be able to negotiate a lower price for Stelara.

Pharmaceutical companies have until Oct. 2, 2023, to present data on these drugs to the CMS. The CMS will then make initial price offers in February 2024, which will start the negotiation process. Negotiations are scheduled to end in August 2024, with the new prices becoming effective in January 2026. However, several pharmaceutical companies have filed lawsuits to stop the Medicare Drug Price Negotiation Program. Some of these lawsuits argue that the IRA’s price negotiation process violates the U.S. Constitution by allowing the federal government to impose its preferred price unilaterally. According to legal experts, it’s unclear whether these lawsuits will be successful since Medicare is a voluntary program for drug companies. However, these lawsuits could delay the timing of Medicare drug negotiations.

Impact of Medicare Drug Price Negotiations

Medicare has been setting prices for services as well as physician and hospital payments but has not been allowed to be involved in pricing prescription drugs, which Medicare started covering in 2006. Therefore, allowing Medicare to negotiate drug prices could have a significant impact on the health care industry. While the first 10 drugs subject to price negotiations are used by only 9 million Medicare beneficiaries, the CMS plans to negotiate prices for 50 drugs by 2029. These 10 drugs include some of the most expensive for Medicare, costing a combined $50 billion in 2022; however, the impact of Medicare drug price negotiations may be slow at first but grow with time.

Short-term Impacts of Medicare Drug Price Negotiations

The initial impact of the Medicare Drug Price Negotiation Program may have muted financial impacts on manufacturers and the federal government, at least for the first round of negotiations, according to analysts. This is largely due to factors that impact the revenue and profits of the 10 drugs scheduled for negotiation. For example, many of these drugs currently face competition from other branded medications or patent expirations, which will allow generic alternatives to hit the market. Additionally, some of these drugs do not contribute significantly to pharmaceutical companies’ businesses, so any decline in drug sales may have little impact on a company’s overall business and profitability.

Moreover, Medicare Part D plans (prescription drug plans) and pharmacy benefits managers have already negotiated rebates for the first 10 drugs set for negotiation. Further, many of these drugs come with manufacturer discounts, decreasing their prices well below the list price. As a result, the negotiated prices for these first 10 drugs may not be significant or reduce what the federal government currently pays for them.

Long-term Impacts of Medicare Drug Price Negotiations

While the commercial impact of negotiations may be limited for the initial list of drugs, this could change in future rounds of negotiations. In 2028 and beyond, Medicare drug price negotiations will begin to target Medicare Part B drugs, which cover more specialized medications that are administered by health care providers rather than pharmacies. Many of these drugs offer fewer rebates than the ones currently listed for negotiation. Additionally, some of these drugs are biologics, which will likely have a more significant impact on drug companies because they are much more expensive and have a greater impact on the earnings and growth of these companies.

Pharmaceutical companies claim that the drug price negotiations will curb the development of new drugs. As a result, Medicare drug price negotiations may result in pharmaceutical companies altering their drug development strategies over time. However, according to the Congressional Budget Office’s estimates, only a few drugs would not be developed each year because of Medicare drug price negotiations.

Impact on Individuals

Due to the high costs of these prescriptions, many Americans are forced to choose between paying for vital medications or buying food and other necessities. While some individuals may save money on their prescriptions because of price negotiations, the Medicare Drug Price Negotiation Program aims to lower overall Medicare costs. By doing this, the Medicare program and taxpayers could see significant savings. Moreover, starting in 2025, the IRA will deliver further relief to Medicare beneficiaries by limiting their drug spending to $2,000.

However, the impact of drug price negotiations on individuals not receiving Medicare is currently unclear. Some experts believe that by reducing how much drug companies can charge Medicare beneficiaries, they will increase prices for privately insured individuals. Others believe that Medicare drug price negotiations may enable private health plans to negotiate for lower drug prices for the medications they cover. Additionally, Medicare drug price negotiations could incentivize pharmaceutical companies to lower listed gross prices for medications, which could lower out-of-pocket payments for privately insured individuals.

Employer Takeaway

Medicare drug price negotiations allow the federal government to negotiate prices for a limited number of drugs to lower out-of-pocket costs for millions of seniors and offer savings for taxpayers. While the drugs scheduled for negotiation are among the most expensive, it will likely be some time before the impact of these negotiations is seen. Even if the negotiated prices do not result in large savings for the federal government and taxpayers, Medicare beneficiaries may still experience some savings. The ultimate savings will likely depend on how successfully the federal government negotiates prices.

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Tailoring Benefits for a Multigenerational Workforce During 2024 Open Enrollment

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Open enrollment is an opportunity for employers to educate their workforce about attractive benefits offerings that can help boost employee retention, satisfaction and engagement. However, with four or five generations in the workforce, finding a benefits plan that satisfies everyone can be challenging. A 2022 report by analytics and advisory company Gallup found that employees are postponing retirement, with over two-thirds (76%) of U.S. adults aged 65 to 69 still working. Additionally, Generation Z accounts for a growing percentage of the workforce. These generations and those in between have vastly different needs. This article provides guidance for how employers can balance the needs of an age-diverse workforce when developing competitive benefits offerings.

How Age Impacts Desired Benefits

Generations aren’t homogenous, and there may be variations between individual employee needs and desires within a generation. However, age often impacts the benefits that employees most desire. Here’s a traditional breakdown of the preferred benefits for each generation:

  • The Silent Generation (1928-1945) generally wants traditional core benefits, retirement benefits and formal employee recognition programs.
  • Baby boomers (1946-1964) typically value caregiving benefits, workplace flexibility, comprehensive health care plans, retirement benefits and ongoing training opportunities.
  • Generation X (1965-1980) often wants remote work opportunities, flexible scheduling and caregiving benefits.
  • Millennials (1981-1996) generally prioritize flexible scheduling, remote work opportunities, student loan repayment programs and ongoing training opportunities.
  • Generation Z (1997-2012) typically wants flexible scheduling, remote work opportunities and comprehensive employee assistance program benefits.

Navigating Differences in Desired Benefits in Preparation for Open Enrollment

Creating a benefits plan that satisfies every generation in the workforce may seem daunting. However, employers should remember that they don’t have to meet the exact desires of every generation. Rather, a successful multigenerational benefits plan will contain something of value for everyone. Therefore, choosing benefits for a multigenerational plan may be similar to what employers are already doing. The following steps can help employers create benefits plans that meet their budget and their employees’ needs:

  • Determine the primary goal (e.g., reducing costs or improving employee attraction and retention).
  • Survey employees about their benefits preferences.
  • Decide on a budget.
  • Select benefits that align budget requirements with employee desires.
  • Communicate the offerings.

Considerations for Educating a Multigenerational Workforce About Open Enrollment

Employers should remember that there are understandable differences in the way different generations view open enrollment. Older generations with more experience selecting benefits are often more confident and prepared to make educated benefits decisions than younger generations who are new to the workforce. Thus, employers should present information about open enrollment and benefits plans in a way that’s accessible to all generations. This may include the following:

  • Create a multichannel approach. Unsurprisingly, different generations prefer to obtain information from varying sources. For example, baby boomers are generally more likely to want information via a pamphlet or brochure than younger generations. For this reason, open enrollment and benefits information should be provided to employees via numerous channels (e.g., emails, webinars, pamphlets and in-person conversations).
  • Find ways to connect virtually. These days, an organization’s workforce can be widely dispersed across geographic locations. Depending on an employee’s age, they may also be making benefits decisions with their parents, a partner or a spouse. Therefore, employers must find ways to connect with employees virtually about open enrollment. This may include creating videos, sending emails and providing access to interactive virtual tools.
  • Target communications. A survey by software company Jellyvision found that 35% of employees only want to learn about benefits that impact them personally. This means that helping employees connect with the benefits they want and need may include targeting benefits communications to employees based on demographics and benefits preferences. For example, employers should consider providing Medicare information and guidance to older generations of workers. Meanwhile, younger generations of workers might prefer to be directed toward employee assistance programs and student loan repayment benefits.
  • Make information accessible. It’s important to remember that workforces aren’t just age-diverse. Employees’ families today may look different than the “typical” family did decades ago. Employers should be inclusive in their messaging to ensure employees from all types of households (e.g., single-parent families and LGBTQI+ relationships) feel there are benefits for their families.

Conclusion

Benefits offerings are a primary factor that impacts employees’ decisions to stay at their current jobs or search for new positions. Employers who tailor benefits to the needs of their employees and successfully communicate open enrollment information across all generations in the workforce may experience improved employee retention and engagement.

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Understanding the EEOC’s New Guidance on Accommodating Visual Disabilities Under the ADA

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

On July 26, 2023, the U.S. Equal Employment Opportunity Commission (EEOC) issued new guidance explaining how the Americans with Disabilities Act (ADA) applies to job applicants and employees with visual disabilities. The EEOC originally issued guidance on how ADA discrimination requirements apply to individuals with visual disabilities on May 7, 2014. The new guidance revises and amends the EEOC’s original document. It addresses reasonable accommodations, safety concerns, workplace harassment and discrimination issues arising from the use of artificial intelligence.

In 2022, the Centers for Disease Control and Prevention found that approximately 18.4% of all U.S. adults are blind or have “some” or “a lot” of difficulty seeing, even with corrective lenses. Unfortunately, many of these individuals struggle to find employment. Data from the most recent U.S. Census Bureau’s American Community Survey indicate that only 46.2% of people with visual disabilities were employed in 2019, compared to 78.6% of people without disabilities. These statistics show that there are still significant barriers to employment for people with visual disabilities.

Employers who successfully accommodate job applicants and employees with visual disabilities can gain access to a talented group of workers. They may also experience benefits such as improved productivity and decreased absenteeism from individuals with visual disabilities, decreased workers’ compensation costs and improved workplace diversity. Additionally, compliance with EEOC guidance is required under federal law and can reduce the risk of costly discrimination lawsuits.

This article provides a general overview of the EEOC’s new guidance and highlights key strategies for employers to respond to accommodation requests.

Understanding the New EEOC Guidance

In question-and-answer format, the new guidance provides information on the following topics:

  • When employers may ask individuals about their vision
  • How employers should treat voluntary disclosures about visual disabilities
  • What types of reasonable accommodations individuals with visual disabilities may need
  • How employers should handle safety concerns relating to individuals with visual disabilities
  • How employers can ensure that no employee is harassed due to a visual disability or any other disability
  • How the use of artificial intelligence and algorithms in employment decisions can impact individuals with visual disabilities

Additionally, the EEOC guidance states that individuals with vision impairment, including limited or low vision, may be entitled to accommodation if they are or have a record of being substantially limited in their vision or another major life activity. Accommodation must be based on the needs of the individual requesting them and determined through an interactive process. Examples of reasonable accommodations provided in the recent EEOC guidance include:

  • Assistive technology, such as text-to-speech software
  • Accessible materials (e.g., Braille or large print)
  • Modification of employer policies or procedures, such as allowing guide dogs in the work area
  • Ambient adjustments (e.g., brighter office lights)
  • Sighted assistance or services, like a qualified reader

Considerations for Employers to Accommodate Individuals With Visual Disabilities

According to the EEOC, employers should provide reasonable modifications for employees with visual disabilities (e.g., flexible scheduling, human or technological readers, or audio alarms) if it doesn’t cause undue hardship for the business. This duty is required under the ADA. Successfully accommodating job applicants and employees with visual disabilities may include the following:

  • Understanding when an accommodation request is being made—Requests for accommodation may be made verbally or in writing. To make a request, individuals do not have to mention the ADA or use the term “reasonable accommodation.” For example, an employee may make an accommodation request simply by telling their manager they’re having trouble reading due to a degenerative eye condition. If employers become aware of an individual’s need for an accommodation or believe that a medical condition is causing a performance or conduct problem, they may ask the employee how to solve the problem and if the employee needs a reasonable accommodation. This can reduce misunderstandings and the risk of potential litigation if accommodation requests are ignored.
  • Determining appropriate accommodations through an interactive process—Once a reasonable accommodation is requested, the employer and the individual should discuss the individual’s needs and identify the appropriate reasonable accommodation. These discussions allow employers to find the best solutions for an impacted employee’s individual needs and show the worker they’re valued. When deciding which accommodation to implement, employers can consider the affected employee’s preference but are not required to do so. Employers can refer to the examples of reasonable accommodations provided in the recent EEOC guidance.
  • Determining if accommodation is reasonable—When an individual requests workplace accommodation, employers must determine if they can provide accommodation without undue hardship. Such decisions should be made on a case-by-case basis, taking into consideration the cost of the accommodations, the financial resources of the employer and the impact the accommodations will have on the organization.
  • Asking for medical documentation when appropriate—Employers may request documentation to establish that an individual has an ADA disability that requires reasonable accommodation in the workplace if the disability isn’t obvious. Alternatively, employers can discuss the disability with the employee requesting accommodation.
  • Communicating openly with affected individuals—An individual’s needs for accommodation may change over time. While some accommodations may be permanent, others may only be necessary for weeks or months. Employers should keep communication open with individuals who have reasonable accommodations to ensure they’re able to be as productive as possible and the employer follows all legal requirements.

Conclusion

Individuals with visual disabilities can contribute to a talented and diverse workforce. Employers who successfully accommodate such individuals may experience improved retention and productivity from valued employees. Employers can use the recent EEOC guidance to create a safe and accommodating environment that complies with federal regulations for individuals with visual disabilities.

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Your Business Risks in an Economic Downturn

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Without a thorough evaluation of its business model, any manufacturer can be severely threatened by an economic downturn. While devising creative solutions to keep your business running despite unfavorable economic conditions, keep in mind that changes to your business can result in changes to your liability exposure.

Facing Your Supply Chain

It’s no secret that the financial security of your business hinges on that of your partners, vendors and suppliers and that in tough times, everyone is looking for a way to cut costs.

Never rely on the insurance coverage of your business partners to protect your assets or protect against third-party liability claims. In the event of financial insolvency, a business’s upstream partner organizations could eventually be held liable for claims filed against it. However, healthy, well-insured partner organizations are no substitute for comprehensive liability coverage for your business.

Ultimately, in order to protect your company it may be a smart long-term investment to expand your coverage limits. While many businesses may opt to cut costs by lowering their coverage, dropping coverage could result in paying out of pocket for an expensive claim caused by suppliers’ shortcomings. If you are involved in outsourcing or are considering this option to mitigate costs, first talk to RISQ Consulting about covering the associated risks.

Verify Contracts

In a turbulent economic climate, it is more important than ever to have thorough, seamless contracts. They should clearly outline the obligation of each party and discuss dispute resolution policies so that if something goes wrong, you avoid a messy and expensive disagreement.

It is never a good business decision to sign a contract hastily, but especially in difficult economic times be sure to look into all the risks and legal ramifications. Small companies who partner with larger companies are often strong-armed into making decisions with which they are not completely comfortable.

When you experiment with new products or services, you will inevitably face a learning curve, which puts you at a larger risk of facing product liability claims.

Making Changes

In many cases, change is the best way of reacting to an economic crisis. It allows you to explore and exploit new customer bases and offer additional products or services. While expanding in either of these ways can revolutionize your business and keep you afloat in tough times, it could also expose you to additional liability.

When you experiment with new products or services, you will inevitably face a learning curve, which puts you at a larger risk of facing product liability claims. You may want to consider purchasing additional lines of coverage to protect yourself, as your surplus lines insurance policy may only cover claims arising from one particular product.

By the same token, shifting or expanding your client base may put you at risk of unexpected class action lawsuits. The same product or service may evoke disparate reactions in different sectors of the market. This is another instance in which it is important to be covered for potential liabilities resulting from a change in your business. Contact RISQ Consulting today to be sure your plan for escaping an economic downturn unscathed does not backfire.

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Hiring Trends Are Pushing Employers to Focus on the Employee Experience

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Employers have been forced to navigate and respond to several challenges over the last few years, including the COVID-19 pandemic, a tight labor market, rising health care costs, inflation and a potential recession. These challenges have pushed many organizations and their employees to their limits. According to a recent survey from management consulting firm McKinsey, more than half of business leaders say their organizations are not prepared for future economic and geopolitical challenges.

Workforce changes are now impacting employers in 2023. Organizations are posting fewer job openings, extending fewer offers and prioritizing best-quality hires. As a result, employers are shifting from prioritizing growth to focusing on hiring key talent. However, many organizations have failed to find effective ways to support employees’ long-term health, well-being and growth, potentially undermining their efforts to attract and retain top talent. This article explores how current hiring trends are forcing employers to redefine the employee experience in order to improve hiring outcomes and attraction and retention.

Current Hiring Trends

A recent study from enterprise management cloud company Workday found a 10% decline in open roles in the first quarter of 2023 and a 4% decline in job offers compared to the same time last year, even though the number of applicants has remained relatively the same. This is the first time since 2020 that requisition growth has declined. This trend is especially pronounced among tech and media organizations, where job seekers are expected to compete with approximately 27 candidates for each opening. This number marks a 248% increase from the first quarter of 2022.

These statistics likely indicate the end of the growth era as employers shift their attention to efficiency over growth. Economic and market factors are pushing organizations to increasingly prioritize hiring the right candidates for each new position and internal productivity, leading to fewer open positions and job offers. As a result, ensuring a positive employee experience is becoming more important to help employers improve employee engagement, productivity and retention.

Strategies to Improve Employee Experience

As employers shift from growth to efficiency, a positive employee experience is essential to improve hiring outcomes, attraction and retention efforts and productivity. Understanding the current workplace dynamics and employee experience, including any challenges and opportunities, can help employers establish strategies to improve employee experience.

Focusing on Employee Engagement

The following are aspects employers can emphasize as they focus on employee engagement:

  • Employee health and well-being—As employers increasingly prioritize efficiency over growth, employees will likely feel pressure to be more productive. This can increase the risk of employee burnout, especially since many employees are already under significant pressure to perform. Therefore, employers will need to find ways to improve employee efficiency without increasing burnout risk. Supporting workers’ health and well-being can help reduce this risk.
  • Hybrid work—While the majority of employees feel productive in a hybrid environment, many employers find that hybrid or remote work makes it difficult to trust that employees are remaining productive outside of the office. Employers are more likely to improve the employee experience by focusing on outcomes rather than hours worked. Defining clear goals and objectives, as well as ways to effectively measure them, can enable employers to better prioritize employee work and cultivate an environment of trust, even in hybrid or remote environments. This can help reduce the risk of employee burnout and foster employee autonomy.
  • Growth and recognition—With a heightened emphasis on existing employees rather than new hires for growth and innovation, employees must provide talented workers and high performers with recognition and ample growth opportunities. Providing internal mobility opportunities can boost employee engagement and retention. It can also increase workforce productivity and efficiency by ensuring employees are in the right positions for their skill sets. Employers can further ensure this by mapping skills and capabilities across their organizations.
  • Organizational strategy—As internal and external pressures shift, creating clear strategic goals can help employees prioritize their work in accordance with high-value initiatives. This can allow employees to stay focused and improve engagement by utilizing their skills and providing a sense of purpose.

Leveraging Technology

As employers increasingly focus on employee experience to further organizational growth and innovation, leveraging new technology, such as artificial intelligence (AI) and machine learning (ML), can help create additional growth opportunities. Incorporating AI and ML technologies can help organizations run more efficiently by automating and streamlining manual, error-prone tasks, allowing employees to attend to high-value work. Employers that offer technology and other tools to support their workforce can help improve the employee experience by increasing job satisfaction. This can also help organizations to grow efficiently and economically. However, employers should familiarize themselves with the functionality and limitations of AI and ML technologies. Being aware of the limitations can allow organizations to evaluate and determine how best to use these technologies.

Employer Takeaway

As organizations adjust to the end of growth-based hiring, prioritizing workplace efficiency and employee experience is essential. Employers can do this by supporting employee health, well-being and productivity and leveraging technology. By considering employee needs, employers can focus on areas of improvement and increase workforce engagement.

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How Employers Fail to Upskill and Retain Key Talent

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

The current labor market presents challenges for employers looking to attract and retain talented employees. Despite recent highly publicized layoffs, especially in the tech sector, the unemployment rate has remained relatively low. This makes replacing talent challenging. Losing talent is also expensive, making retention critical for the success of every employer. This article highlights essential ways employers fail to upskill and retain talent and provides guidance for how they can improve retention efforts.

The Consequences of Failing to Retain Talent

High rates of employee turnover can damage morale, decrease productivity and harm customer relationships. It can also result in skills shortages. According to management consulting firm McKinsey & Company, most (87%) employers currently have skills gaps or expect to have them within the next few years. Replacing talented workers can be time-consuming and expensive, which can negatively impact an employer’s bottom line.

How Employers Fail to Upskill and Retain Talent

Unfortunately, retention remains a struggle for many organizations. A recent study by LinkedIn found that 61% of American employees were considering leaving their jobs in 2023. This number was even higher among younger generations of workers, with 72% of Generation Z workers and 66% of Millennials considering leaving their jobs in 2023. Employers can reduce employee turnover and boost job loyalty and satisfaction by understanding and addressing common factors that drive employees to quit. Common reasons employees leave their jobs include the following:

  • Lack of employee engagement—Employers often fall into the trap of believing that paying their employees well is the only factor that impacts an employee’s decision to stay at their current organization. While financial compensation is important, research shows that engagement also plays a crucial role in retention. According to analytics and advisory company Gallup, employees who are engaged and have enhanced well-being are 59% less likely to look for a job at a different organization within the next 12 months. Despite the importance of engagement, Gallup found that just one-third of employees are engaged at their jobs, causing decreased job satisfaction, performance and retention.
  • Absence of growth and learning opportunities—Upskilling and reskilling employees can increase employee engagement and decrease skills gaps. It’s also crucial for retaining employees, especially younger generations of workers who often prioritize career development over higher-paying positions. Growth opportunities are similarly important. In fact, the lack of growth opportunities is one of the biggest reasons employees leave their jobs. According to the online recruitment site Zippia, 76% of employees are looking for opportunities to expand their careers, and 45% would stay at their organizations longer if their employer invested in their learning and development. Despite this, over half (59%) of surveyed employees reported no formal workplace training.
  • Lack of managerial support—According to Gallup, managers account for 70% of the variance in employee engagement across business units. Managers significantly impact employee engagement, retention, job satisfaction and productivity. When managers prioritize productivity over people or lack vital interpersonal skills, such as communication and authenticity, they can contribute to high turnover rates.
  • Poor company culture—A 2022 survey by the employment website FlexJobs found that toxic company culture was the number one reason people quit their jobs. These impressions are often made as early as onboarding, where a negative experience can set the tone for an employee’s overall experience at an organization. Lack of a healthy work-life balance was also high on the list of reasons employees quit, identified by 49% of surveyed workers. When employees feel overworked and underappreciated, they’re more likely to look for jobs outside of their organization; this is especially true of employees in mentally unhealthy workplaces or toxic environments.

Strategies for Upskilling and Retaining Talent

Employees want to work for organizations that prioritize them as people and invest in their development. Employers should consider the following strategies for upskilling and retaining talent:

  • Focus on skills-based hiring and hiring the right employee the first time.
  • Create a positive, efficient onboarding process.
  • Hire managers with strong interpersonal skills (e.g., connection, honesty, respect and communication).
  • Recognize employees for their accomplishments.
  • Encourage employee participation in important business decisions.
  • Ask for employee feedback (e.g., surveys, in-person meetings).
  • Create career ladders for transparency about career progression.
  • Provide dedicated time for employee upskilling (e.g., block out time on employees’ calendars or provide optional training during lunch breaks).
  • Encourage mentorship relationships.
  • Offer customized training programs and tools.
  • Prioritize internal mobility over outside hires.
  • Treat employees as people (e.g., promote flexibility, autonomy and work-life balance).
  • Provide generous benefits and paid time off.
  • Focus on creating a positive company culture that promotes mental health and employee well-being.

Conclusion

Employers who address common reasons employees quit their jobs may experience reduced rates of turnover. This can reduce hiring costs, boost employee morale and provide a competitive advantage over similar organizations that fail to retain talented workers successfully.

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Cyber Liability – Zero Trust Security Explained

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Traditional cybersecurity protocols can’t keep up with the rapidly evolving modern workplace environment. The complexity of hybrid work, the rising number of fully remote employees and the dramatic increase in the use of cloud-based systems make traditional perimeter security ineffectual. A new security model is needed to keep the corporate network safe. This model is “zero trust.”

Zero trust is adapted to the modern workplace. It embraces mobility and protects people, networks, applications and devices, regardless of their location. Review the following guidance to learn why zero trust is important, how it works and how it can benefit your organization.

What Is Zero Trust?

Traditional network security trusts the identity and intentions of users within an organization’s structure. This puts the organization at risk from malicious internal actors and rogue credentials by allowing unauthorized and uncompromised access to the organization. The phrase “trust, but verify” is often used to describe traditional network security approaches.

The zero-trust approach removes the concept of trust from within an organization’s structure. With zero trust, a data breach is assumed with every access request. Every access request must be authenticated and authorized as if it originated from an open network. The concept “never trust, always verify” is emblematic of the zero-trust approach.

What Are the Benefits of Zero Trust?

The zero-trust approach is one of the most effective ways for organizations to control their network, applications, and data.

This is especially important today, as companies expand their infrastructure to include cloud-based applications and servers. The growing usage of locally hosted machines, VM and Software-as-a-Service products, and a dramatically increasing number of remote employees have made it difficult for organizations to secure their systems and data.

Implementing a zero-trust approach benefits companies in a wide range of ways, including:

  • Minimizing your organization’s attack surface—By granting the lowest level of access possible for users and devices to perform their essential functions, organizations can minimize the affected area within their organization should a breach occur.
  • Improving audit and compliance visibility— The first step to implementing zero trust is for an organization to know what devices exist and which credentials are on each device. In this way, devices are constantly kept in an audit-ready state.
  • Reducing risk, complexity and costs—All access requests are vetted prior to allowing access to any company assets or accounts. This dramatically increases real-time visibility within the organization and helps prevent costly data breaches.
  • Providing Layer 7 threat prevention— Layer 7 refers to the application level of the Open Systems Interconnect model. This layer identifies communicating parties, supports end-user processes and applications, and consults privacy and user authentication. By establishing who can access the different levels of your organization at any given time the zero-trust approach stops unauthorized users or applications from accessing your organization’s crucial data and prevents the unwanted exfiltration of sensitive information.
  • Simplifying granular user-access control—  Zero trust requires an organization to define which users may access certain aspects of an organization. As a rule, each user is granted the least privilege possible to perform their necessary functions.
  • Preventing lateral movement—Segmenting the network by identity, groups and function allows organizations to contain breaches and minimize the damage from a hacker who was allowed to move freely within the organization’s perimeter.

How Does Zero Trust Work?

By combining a wide range of preventative techniques, including identity verification, behavioral analysis, microsegmentation, endpoint security, and least privilege controls, implementing a zero-trust approach can significantly reduce an organization’s risk of becoming a data breach victim.

Zero trust relies on three essential principles:

  • Verify explicitly. Every user request must be authenticated and authorized using all available data points. This step is designed to ensure the person or application requesting access is who they say they are.
  • Use least privileged access. Users should be given the least amount of access necessary to perform their authorized functions. Just-in-time (JIT) and just-enough access (JEA), risk-based adaptive policies and data protection can all help secure data and user productivity.
  • Assume breach. Use end-to-end encryption to prevent data from flowing to undesired endpoints. Use analytics to drive threat detection, improve visibility and enhance defenses.

How Can I Implement Zero Trust?

Zero trust is relatively simple to deploy. Adopting the principles of zero trust doesn’t require any costly products. Use the following principles to employ zero trust at your organization:

  • Define the attack surface. To adopt a zero-trust framework, your organization’s critical data, assets, applications and services must be identified. This critical information forms a “protect surface,” which is unique to every organization.
  • Create a directory of assets. Determine where the sensitive information lives and who needs access to it. Know how many accounts there are and where they connect. Consider removing old accounts and enforcing mandatory password rotation.
  • Adopt preventative measures. Give users the least amount of access necessary to do their work. Use multifactor authentication to verify accounts. Establish micro-perimeters to act as border control within the system and prevent unauthorized lateral movement.
  • Monitor continuously. Inspect, analyze and log all data. Escalate and store logs with anomalous activity or suspicious traffic. Have a clear plan of action for how to handle anomalous activity.

For additional risk management guidance and insurance solutions, contact us today.

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Reviewing Preemployment Drug Testing Policies to Comply With Marijuana Laws

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

There’s currently a patchwork of marijuana-related laws throughout the United States. While marijuana, including medical marijuana, remains illegal under federal laws, many states have legalized medical and/or recreational marijuana, decriminalized the drug or enacted workplace protections for its usage. As more states legalize marijuana and expand workplace protections regarding its usage, ensuring compliance with federal, state and local laws remains a challenge for employers.

Moreover, attitudes throughout the United States surrounding marijuana use have shifted, causing some employers to change their drug testing policies. Many organizations have altered their marijuana testing policies in recent years. Five years ago, many employers would likely have terminated an employee for testing positive for marijuana; today, state and local laws, as well as other considerations, are forcing organizations to proceed with more caution. As a result, many employers are reevaluating their preemployment marijuana drug testing policies.

This article outlines considerations for employers when reviewing their preemployment drug testing policies. Due to the complex nature of marijuana-related laws, employers are encouraged to consult with local legal counsel regarding any questions or concerns.

Increased Protections for Marijuana Usage

In addition to states that are either legalizing or decriminalizing marijuana use, an increasing number are adopting workplace protections for employee marijuana use. While the protections vary, these laws may require employers to treat marijuana usage like other medications. As a result, employers may need to accommodate employee marijuana usage or be prevented from taking adverse action based solely on a positive drug test.

Importantly, state laws vary on when a positive marijuana drug test can be used to discipline or as the basis to refuse to hire an individual. The laws can limit or determine what actions an employer can take before adversely impacting the employment of an individual who has tested positive for marijuana. For example, New York City and Philadelphia prohibit preemployment drug testing for marijuana. Additionally, Nevada bans employers from taking an adverse employment action based on a positive preemployment marijuana test result. Therefore, it’s vital that employers familiarize themselves with all applicable state and local marijuana laws as well as drug testing requirements. Additionally, they should review their workplace drug policies and procedures to ensure they comply with any state and local legal requirements.

Marijuana Testing Issues

Marijuana presents certain challenges for employers in terms of drug tests, as it can often produce inaccurate or unreliable results. Currently, most drug tests can only show the presence of tetrahydrocannabinol, or THC—a psychoactive compound found in marijuana—in a person’s system at the time of testing; however, they are not able to accurately determine the level of an individual’s impairment or intoxication. For instance, marijuana can stay in urine samples for up to a month or longer and in hair samples for a year. Additionally, individuals metabolize cannabinoids differently, and drug tests cannot capture or process these differences, leading to unreliable test results. Further, cannabinoid components, including legal substances such as CBD, can produce false positive results, making it difficult for employers to be confident in test results.

To address these issues, some employers rely on objective indicators and observations in addition to positive drug test results. This can include the following:

  • Unusual behavior
  • Dizziness
  • Strong odors
  • Dilated eyes
  • Impaired speech
  • Blank or confused facial expressions

Saliva tests have been shown to be more accurate at detecting marijuana usage within 24 hours. As a result, employers are increasingly relying on these tests. Even the U.S. Department of Transportation has recently changed its drug testing requirements to use saliva tests to detect marijuana.

Workplace Safety Concerns

Even in states that have legalized or decriminalized marijuana usage, there are certain exemptions regarding workplace protections for marijuana usage. These typically include carve-outs for safety-sensitive positions or jobs involving driving or piloting vehicles. However, in many cases, preemployment drug tests may not be a reliable indicator of potential future workplace safety issues. Instead, employers are implementing reasonable suspicion and post-accident drug testing policies to address workplace safety issues. Organizations can also develop separate workplace policies for safety-sensitive positions. Under these policies, job positions are treated differently based on whether their requirements and duties involve legitimate safety concerns, such as operating heavy machinery. This can be an effective way for employers to protect employees and customers as well as reduce potential legal risks.

Strategies for Preemployment Marijuana Testing Policies

While more accurate testing measures can provide employers with results they can confidently rely on, many employers may hesitate before taking adverse employment action against an applicant in response to a positive test result due to ever-changing marijuana regulations. Because of the legal complexities and potential future compliance obligations surrounding the drug, there is no one-size-fits-all approach to preemployment marijuana testing. Instead, employers should consider which option best serves their organization and specific business needs.

The best practices for employers that conduct drug testing for marijuana will depend heavily on the applicable state laws; nonetheless, the following is general guidance for employers when reviewing and implementing preemployment marijuana testing policies:

  • Apply state and local policies and practices to preemployment testing.
  • Adopt policies and practices that comply with the most restrictive laws for any states and localities where an employer operates.
  • Employ an “as-needed” approach to required preemployment marijuana testing based on business necessity.
  • Eliminate preemployment marijuana testing in states and localities where there is no legal testing requirement.

Employers operating in multiple states should review their policies to ensure they comply with all applicable state and local requirements. Some organizations that operate in multiple states may decide to implement a universal policy that applies to all employees regardless of location or adopt state-specific policies depending on where employees work. If employers decide to forgo preemployment testing altogether, they should determine whether doing so may expose their organizations to legal risks, such as claims of negligent hiring.

Additionally, accommodating employee marijuana usage does not mean employers must tolerate unsafe work environments or individuals working under its influence. Most state laws, even those permitting medical and/or recreational marijuana usage, do not permit individuals to use marijuana while at work or during work hours.

Summary

The expanding network of marijuana laws in the United States is forcing many employers to reevaluate their workplace policies, including preemployment drug testing. Rescinding a job offer due to a positive marijuana result could expose an organization to legal risks and liabilities, including civil fines, lost wages, compensatory damages and attorneys’ fees. This is a rapidly changing area of law, so it’s critical that employers regularly review their workplace policies to ensure they comply with the most current marijuana and drug testing laws. Employers should monitor state and local laws for further developments.

For more workplace resources related to medical or recreational marijuana use, contact RISQ Consulting today.

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