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.

For more workplace resources, contact RISQ Consulting today.

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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.

For more workplace resources, contact RISQ Consulting today.

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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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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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U.S. Adds Over 500,000 Jobs in January

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 U.S. Bureau of Labor Statistics (BLS) found in its January jobs report that the United States added an astonishing 517,000 nonfarm jobs in January, indicating that the labor market is not cooling down. January’s added jobs were above December’s gain of 260,000 and the Dow Jones estimate of 187,000 jobs to be added this month. They were also higher than 2022’s average monthly gain of 401,000—a year that had strong job growth—and the largest increase since July 2022. The largest gains were in leisure and hospitality, professional and business services, and health care.

The unemployment rate fell from 3.5% in December to 3.4% in January. This is the lowest rate since May 1969. Experts expected the unemployment rate to increase to 3.6% in January. The labor force participation rate edged up from 62.3% in December to 62.4% in January, the highest rate since March 2022. However, the current labor force participation rate is still well below pre-pandemic levels of 63.4%. A larger labor supply helps ease a tight labor market and puts downward pressure on wages since there’s less competition among employers for candidates.

Despite January’s stronger-than-expected jobs report, wage growth came in as expected at 0.3%. January’s report also revealed that wage growth moderated on an annual basis. Wage growth has now slowed to 4.4% after reaching its peak of 5.9% in March 2022.

In January, individuals worked, on average, 34.7 hours a week, up from 34.4 in December. This is the most since March 2022, signaling that the demand for workers will likely persist for the foreseeable future.

Employer Takeaways

January’s surprising jobs report comes as the Federal Reserve (Fed) continues to increase interest rates in an attempt to fight inflation, cool the labor market and ease pressure on wages. The Fed has raised its benchmark interest rate eight times since March 2022. This month’s report indicates that the job market is currently stronger and more resilient than expected; however, economists think that January’s job gains may be influenced by seasonal factors and the early year job and wage environment.

January’s numbers cast doubt on concerns that the U.S. economy is in a recession or approaching one. While this month’s jobs report indicates that the labor market is stronger than previously believed, wage growth is slowing, potentially easing pressure on employers to increase wages to attract talent. However, since the labor market is still not cooling down, employers’ struggles to attract and retain workers will likely continue for the foreseeable future. As such, employers should continue to monitor employment trends to stay competitive in today’s evolving market.

Contact RISQ Consulting for more resources.

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4 Attraction and Retention Trends to Monitor in 2023

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 labor market was a roller coaster in 2022 and will undoubtedly continue to evolve this year. It remains to be seen how the employment market will level out. Still, it’s a safe bet that employers will be challenged as they compete for top talent. Labor metrics indicate that even though the market has slightly improved from last year, it’s still a tight labor market as numbers remain historically high. While most employers project an increase in salaries in 2023, many will look beyond pay alone to help attract and retain more employees.

While some companies have been taking monetary actions (e.g., compensation and benefits packages) to address attraction and retention challenges, many organizations also are looking at ways to optimize their offerings and enhance employee experience. As they compete for talent, many may take a total rewards approach to fulfill employees’ workplace desires. This article explores four attraction and retention trends to watch in 2023.

1. Redesigned Flexibility

Remote work exploded at the height of the pandemic as most organizations shifted to this flexible work model out of necessity. Nearly three years later, it’s still at the forefront. Along with remote working arrangements, employers are offering hybrid options, flexible scheduling or even four-day workweeks.

Employees want the flexibility to work when and where they want. Employers have an opportunity to deliver on those desires and win over more workers. It comes down to offering the flexibility they need in their work and personal lives. On the other hand, many employers are striving to bring employees back to the workplace based on business priorities, so it’s essential to balance those organizational goals with employee desires for workplace efforts to be successful and well-received. While workplace flexibility is not feasible for every industry, organization and role, employers can evaluate their own situations and consider ways to develop flexible arrangements. The goal is to focus on output and productivity rather than time spent online or in the workplace.

2. Mental Health Support

Between the pandemic, inflation and job duties, more employees feel burnt out or are battling mental health challenges. As such, organizations are expected to take more responsibility for workers’ mental health and help employees on a personal level.

More employers will be considering how to take a proactive approach to employee mental well-being and resilience. A survey from the employee wellness platform Gympass revealed that nearly half of employees (48%) say their well-being declined in 2022. In addition, 28% say they are miserable at work. Health experts predict that employees’ mental health will continue to decline amid economic uncertainty, which means the demand for mental health care will increase in 2023.

Employers can offer benefits, perks and wellness programs that account for mental well-being. To address burnout and other well-being challenges, many employers will offer or expand their employee assistance programs, behavioral health anti-stigma campaigns and training for recognizing employee and peer behavioral health issues. Employers are poised to offer the education and support that today’s workers need and are looking for.

3. Learning and Development Opportunities

Learning and developing efforts have been on the rise in recent years. Not only are workers looking for professional growth opportunities at an employer, but many organizations are upskilling or reskilling workers, as it’s often less expensive to reskill a current employee than hire a new one. On the flip side, employees who receive learning and development opportunities are more likely to stay with the company and grow into different roles. Therefore, learning and development initiatives prove to be a win-win situation for employers and employees.

As employers go head-to-head in the competitive race for talent in 2023, upskilling their current workforces could be a solution to finding workers for their in-demand roles. Upskilling is when employers provide employees the opportunity to learn new skills to better their current work performance while also prepping them for the projected needs of the company. When upskilling employees, employers are investing not only in workers but also in the company’s longevity and development. Furthermore, organizations are prioritizing internal mobility to address skills gaps and strengthen employee retention.

4. Increased Focus on Belonging

Belonging is a critical component of company culture. At work, belonging is the experience of employees being wholly accepted and included by those around them. While belonging doesn’t necessarily come with a price tag, employers can invest efforts and resources into ensuring their workplaces are inclusive, collaborative and connected. Employees are looking for a work environment that’s authentic and accepting. A focus on belonging can play a crucial role in improving workplace culture and, in turn, improving employee attraction and retention.

Many workplace factors can impact employees’ sense of belonging, including (but not limited to) company culture, benefits offerings, communication methods, learning and development resources and mental health support. Any day-to-day interactions among co-workers and managers or companywide initiatives may impact workplace culture and the overall employee experience. When an organization develops a solid and positive employer brand as an inclusive and supportive workplace, it may easily attract new talent eager to join and contribute to the company culture. Employers can elevate employee experiences by creating workplaces where employees feel they belong and can be their authentic selves.

Summary

Employers can get ahead of the game in 2023 by monitoring the trends shaping the ever-evolving labor market and driving current and prospective employees’ needs and wants. While attraction and retention challenges are likely to continue this year, these trends demonstrate ways employers can elevate and strengthen their talent strategies to win and keep more workers.

Reach out to RISQ Consulting for more guidance on these topics and other employee attraction and retention trends.

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Expanding the Talent Pool With University and College Recruitment Strategies

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.

 

A common misstep in attracting or recruiting talent is setting narrow restrictions on who to interview or where talent is sourced. Often, highly talented job candidates are overlooked due to inexperience. Employers have an opportunity to expand their recruiting reach by pursuing entry-level candidates at universities, colleges and trade schools, but it comes down to hiring for skills or the right fit—rather than experience—and offering training and career development on the job. This kind of strategy is considered a core recruitment function for many organizations.

As new generations enter the workforce and everyday job skills change, savvy employers can secure candidates who have the potential to grow in a new career. This article explores the opportunity for recruiting and hiring employees from universities, colleges and trade schools and ways to build a sustainable recruitment strategy.

Types of Institutions and Skills

Understanding the various learning institutions employers partner with and their differences is essential to determine which will be more beneficial for employers to recruit from. A university generally refers to a larger higher education institution that offers both undergraduate and graduate programs. They often have an emphasis on conducting research.

On the other hand, a college is often smaller and usually refers to community colleges, technical schools and liberal arts colleges. They typically only focus on undergraduate studies. A trade or vocational school offers programs that can be completed within one or two years and focus on a career-intensive curriculum with hands-on experience.

Just as there are various learning institutions, there are different skill sets employers may want to seek out depending on their industry or organization. In some cases, many may desire workers with an undergraduate degree or master’s degree; other companies may be interested in trade talent or specialized skills.

The Opportunity and Benefits

The opportunity to build a continual talent pipeline is there and will remain. The U.S. Bureau of Labor Statistics reported the following about graduates (ages 20 to 29) in 2021:

  • 3 million earned a bachelor’s degree.
  • 371,000 completed an associate degree.

Keep in mind that these statistics don’t include other age ranges, many of whom could be graduates—and great potential employees.

Educational institutions have been providing employers with high-quality talent for a long time. Still, there are reasons to amp up those efforts and explore additional ways to throw a wider net for entry-level candidates.

Consider the following benefits of targeting and hiring candidates via universities, colleges and trade schools or from different sectors or even roles:

  • Continuous supply of candidates—Universities and colleges offer talent continually; multiple groups of students graduate in a given year. As such, employers can connect with new graduates several times throughout the year.
  • Fresh, transferrable skills—It can be beneficial to hire someone with solid communication, leadership, teamwork and problem-solving skills instead of focusing on years of industry experience. This is because employers can offer learning and development opportunities to help such employees learn about the industry, department or role. For example, some liberal arts colleges may focus heavily on writing and thinking skills, which apply to many positions and may not necessarily be able to be taught in the workplace.
  • Increased innovation—A candidate outside your sector won’t have industry fatigue and is positioned to bring fresh ideas to the workplace. Employees new to an industry tend to be more adaptable and open to new ways of working. This fresh perspective can push organizations out of their comfort zones and help them consider innovative or competitive approaches. Universities and colleges generally stay up to date, so students are poised to bring in the freshest ideas and forward-thinking perspectives.
  • Improved employer branding—Organizations can build a renewed perception of their employer brand by building their brand within university and college settings. Campus recruitment is a great way to reach a wider audience for the organization’s brand.
  • Diverse talent pool—Hiring candidates from various universities and schools can help an organization expand its candidate reach and find potential employees of varying backgrounds.

While experience and industry knowledge have their places in recruitment and hiring, it can be beneficial for organizations to hire talent from outside their industry or consider candidates with the right skills but not enough experience yet.

University and College Recruitment Strategies

Employers looking to expand their recruiting reach should review the following considerations to sustainably engage candidates in a learning environment:

  • Attend in-person events. Especially before the pandemic, many university recruiting strategies relied on visiting select campuses to recruit entry-level candidates. This is still a successful strategy for employers to engage and connect with candidates on campus. Most universities and colleges hold in-person career fairs.
  • Actively recruit virtually. An organization hiring remote or hybrid workers can leverage online platforms to engage with candidates and bolster their company’s brand. But it takes more than simply establishing online accounts; employers should be proactive and promote that they are open to hiring outside candidates since they offer learning and training opportunities. Additionally, online portals (e.g., Handshake) can help employers connect with students where they are and start personalized recruiting conversations.
  • Participate in virtual recruiting efforts. Many universities have integrated virtual learning, and using that same approach for entry-level recruiting is effective. Virtual recruiting is an efficient way to broaden and diversify the recruitment reach for college students. Virtual career fairs will likely be hosted by colleges, trade associations or other organizations. Alternatively, a virtual event or webinar may be focused on a particular industry, profession, experience or geographic area, which can help recruit mid-level and senior positions or other nonuniversity candidates.
  • Build relationships with stakeholders. For a partnership to succeed or be impactful, employers must develop long-term relationships with institutional stakeholders, such as career centers and professors. Employers may find through a quick phone call or email that career centers, for example, will be very receptive to learning more about an employer’s opportunities and establishing a relationship.
  • Establish an internship or apprenticeship program. Such programs can be a strategic way to get talent in the door early and provide candidates with real-life experience. Ultimately, employers will also know if candidates have the necessary skills and if they are a good match for the company culture. Candidates may also be more likely to select a full-time employer they’ve already worked for in a less permanent capacity. An internship or apprenticeship program allows an organization to show off its workplace culture and career opportunities to rising top talent.
  • Offer learning and development opportunities. Regardless of industry or age, today’s workers want career growth opportunities. Learning and development opportunities can help employees become better at their jobs and overcome performance gaps due to a lack of access to knowledge or skills. Remember that training only fills a gap, whereas professional development focuses on long-term employee and company growth.

Recruiting from higher education institutions relies on establishing effective relationships with educational institutions and identifying and engaging with suitable candidates that can bring value to the workplace and grow in a career there. Recruitment can be a mutually beneficial opportunity for both employers and universities.

Summary

Suppose employers are having a hard time finding qualified candidates. In that case, they could consider expanding their recruitment reach by pursuing entry-level workers from universities and other types of higher education institutions. New energy and fresh perspectives from recent and soon-to-be graduates can help organizations innovate and develop a strong workplace culture.

Contact RISQ Consulting today for more information and help finding ideal candidates for your company.

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