• Every business is exposed to potential claims and lawsuits, which can be very costly to defend against and may result in significant financial damage.
• EPL insurance protects companies from employment-related claims and covers the legal costs derived from them.
• At EmPower HR, we provide risk management and compliance services to keep your business safe and help you get the right EPLI coverage. Reach out to get started!

No business is exempt from suffering legal claims or lawsuits. Equal pay claims and lawsuits alleging workplace discrimination and harassment are on the rise, so keeping your business protected is vital. That’s where Employment Practices Liability Insurance (EPLI) comes in.

Whether you have a large or small business, having EPL insurance can help you handle costly defense costs and avoid financial damage.

In this article, we’ll dive into the main aspects of EPLI so you can learn why it’s important, its main components, and how to reduce risks and be proactive.

Let’s get started!

Understanding Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance, known as EPL insurance or EPLI, is a type of insurance coverage that protects employers from employment-related claims and lawsuits. The most common allegations against employers include:

• Wrongful termination
• Discrimination
• Sexual harassment
• Defamation

EPL insurance covers the costs of legal defense, settlements, and judgments incurred by companies as a result of a claim, despite the outcome.

According to the U.S. Equal Employment Opportunity Commission (EEOC), discrimination or harassment lawsuits have increased up to 50% from 2022 to 2023.

The industries that received a higher number of lawsuits were hospitality, health care, and retail, SHRM reports.

EPLI vs Employer’s Liability Insurance vs Workers’ Compensation: What’s the Difference?

It might be confusing to understand the differences among EPLI, Employer’s Liability Insurance, and Workers’ Compensation.

But these are the basics you need to know: While EPLI focuses on claims related to employment practices, Employer’s Liability Insurance and Workers’ Comp protect businesses in the event of workplace injuries or employee illness.

In the case of a health issue or job-related injury, Workers’ Compensation provides coverage for medical expenses, rehabilitation services, and lost wages. Employer’s Liability Insurance, on the other hand, pays for legal expenses when an employee sues their employer for their workplace injury.

While business owners are required by law to provide Workers’ Compensation in most states, EPLI is optional — though it’s a smart business decision to have it.

Why Every Business Needs EPLI

Every business, regardless of its size, is exposed to potential claims and lawsuits. In fact, U.S companies have at least a 10.5% chance of having an employment charge filed against them, according to Hiscox research.

Employee claims can occur at any stage of the employment cycle, from hiring to termination. For example:

• A job candidate that has been asked illegal questions regarding religion, citizenship, or marital status during the hiring process presents a claim alleging discrimination and unequal treatment.
• Workers who have been misclassified as contractors instead of employees and have unpaid wages and overtime present a lawsuit.
• An employee who has been denied a promotion after filing a complaint presents retaliation charges.

Without adequate business insurance, these kinds of employment-related claims can be very costly to defend against and may result in significant financial damage if found liable, especially for small businesses.

“The average cost for a small business to defend and settle a claim is $160,000.”

— Hiscox

With EPL insurance, companies can benefit from:

• Being protected against lawsuits
• Preventing financial losses
• Gaining access to legal resources and expert advice
• Implementing risk management strategies

Having EPLI coverage provides peace of mind for business owners and executives, knowing that they have financial protection in place in case of employment-related lawsuits. That way, they can focus on running and growing their business without the constant fear of litigation hanging over their heads.

Key Components of EPLI

EPLI’s coverage can vary across insurance providers and might be different based on your company size and specific state regulations.

Here’s what most EPL insurance policies include:

• Coverage for employment-related claims: EPLI provides coverage for various claims made by employees alleging wrongful employment practices, including but not limited to discrimination, harassment, wrongful termination, retaliation, defamation, and failure to promote.
• Legal defense costs: EPLI covers the costs of defending against employment-related lawsuits, including attorney fees, court costs, and other legal expenses. This coverage applies whether the claim goes to trial or is settled out of court.
• Settlements and judgments: EPLI policies typically cover settlements and judgments arising from covered claims. This includes payments to employees for damages, back pay, front pay, and other compensatory relief ordered by a court or agreed upon in a settlement.
• Third-party coverage: Some EPLI policies also provide coverage for claims brought by third parties, such as customers, clients, vendors, or business partners, alleging employment-related misconduct by employees of the insured business.
• Policy limits and deductibles: Like other insurance policies, EPLI typically has coverage limits, which represent the maximum amount the insurer will pay for covered claims during the policy period. Policies may also include deductibles, requiring the insured business to pay a certain amount out of pocket before the insurance coverage kicks in.
• Exclusions: EPLI policies often contain specific exclusions, detailing situations or circumstances for which coverage is not provided. Common exclusions may include claims arising from intentional misconduct, criminal acts, bodily injury or property damage, and certain types of contractual disputes.

Risk Management Strategies

While EPL insurance protects businesses in the event of an employment-related claim, there’s a more proactive approach that companies should take: implementing risk management strategies.

Being able to manage risks and be prepared reduces the likelihood of employment-related claims and keeps your business safe from financial losses.

Here’s how businesses can effectively address risk exposure:

• Develop comprehensive policies and procedures. Keep your business compliant with federal, state, and local laws. These policies should cover areas such as equal employment opportunity, anti-discrimination, harassment prevention, and more.
• Provide regular training and education. Educate employees and managers on their rights and responsibilities related to company policies and employment laws. Focus on preventing discrimination and harassment, as well as handling complaints and conflicts effectively.
• Maintain detailed records of employment-related decisions, actions, and communications. Document performance evaluations, disciplinary actions, complaints, and investigations. Consistent and well-documented policies and actions can help defend against allegations of discrimination, harassment, or wrongful termination.
• Foster open and transparent communication between management and employees. Encourage employees to report concerns or complaints promptly through accessible and confidential channels. Respond promptly and appropriately to all complaints and take them seriously, conducting thorough and impartial investigations as needed.
• Ensure that employment practices are fair, consistent, and applied uniformly across all employees. Avoid favoritism or disparate treatment based on protected characteristics such as race, gender, age, religion, disability, or sexual orientation.

EmPower HR: We’ve Got Your Blind Spots Covered

Keeping your business compliant and safe is one of the biggest challenges for every company, especially if you have a small HR team.

By partnering with a PEO, you can delegate the heavy lifting to experienced compliance professionals who will make sure you are always up-to-date with the latest regulations and requirements.

At EmPower HR, we provide risk management & compliance services to help you navigate every legal aspect of your business, from creating company policies and employee handbooks to filing taxes accordingly.

Employment Practices Liability Insurance Final Key Points

Every business is exposed to potential claims and lawsuits that can harm your finances and reputation. Hiring EPL insurance can be a wise decision to keep your company covered and minimize the impact of employment-related claims.

Likewise, implementing risk management strategies is a proactive approach that allows you to identify situations that might cause damage to your company and take preventive measures.

Not sure which is the right EPLI coverage for your business? At EmPower HR we help you find the right option for your business and implement risk management strategies to stay one step ahead of potential issues.

Contact us to learn how we can help your business stay safe and compliant!

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These established values create more meaning for a company, potentially attracting new talent that aligns with the same vision. According to a Glassdoor study, 77% of respondents said they would consider a company’s culture before applying to a new job.

In rapid growth, it’s essential to not lose sight of company culture efforts. Make sure this infrastructure is built prior to growth plans to ensure everyone understands the company’s mission. Below are tips on how to maintain culture in a growing company. 

Why Is Maintaining Company Culture So Important?

It takes time to establish the infrastructure to shape company culture. This becomes difficult to maintain during periods of growth when leadership and HR are tied up in onboarding and training sessions. Without the proper introduction of the company values, the established culture efforts can get lost in information overload for new employees. If the time isn’t taken to introduce and establish those beliefs, the information will not be retained and practiced.

HR Tip: Introduce your company culture in the onboarding process. This is a good way to set the tone right off the bat so employees know what to expect and see how their values align with the company and its growth culture. 

Four Ways Companies Can Maintain Company Culture During Rapid Growth

To offer the best company culture, you need to practice what you preach. Figure out what your company culture should look like as you grow. What’s your ideal work environment? Have you made an effort to get your team on board with your vision? Don’t let your company vision exist only in your mind, be sure to encourage everyone to get involved in the company trajectory. (Sharing is caring – and the key to your business’ success.) 

If your company’s infrastructure does not align with day-to-day practices, the culture is not going to be understood or enforced. To set clear standards and consistency, here are four ways to establish company culture:

1. Have A Solid Mission Statement

If you haven’t already, identify the key beliefs that represent your organization. Using these ideas to create a solid mission statement lets everyone know what your company stands for. A defined mission, vision and set of values are crucial in laying the foundation for company culture. This gets every employee on the same page while also attracting new talent that aligns with your mission and goals. 

Yes, the work that gets produced is important, but what truly draws employees to a company is the culture. According to a Glassdoor study, 89% of adults felt an employer needed to have a clear mission and purpose. If compiling your values into one statement isn’t your strong suit, we’re here to help. We have established mission statements for various clients that make an impact, especially when it comes to company culture growth. 

2. Create Open Communication With Your Employees

Growth culture is reliant on its people. To understand your company, the people working for you are your best resource. Employees can provide feedback that is essential to listen to for making improvements. As times are changing, companies need to adapt to new needs and understand what employees are looking for to continue to evolve. 

Crafting your company culture is not a one-and-done assignment. It’s something that needs constant attention to stay up to date and remain effective. Losing sight of cultural efforts will lead to outdated offerings or a lack of communication of your business’ standards. 

Lean on your team for feedback. Creating open communication will help you identify areas of improvement you may not have noticed on your own. Keep in mind that listening to your team members is only the first step – the real work is following through and making an effort to improve. 

Offering opportunities for learning creates an environment that feels safe for constant feedback and better results. If leadership only focuses on the final product, questions along the way are ignored and never answered. This leads to confusion and disconnects employees within the organization. Prioritizing learning and growth will empower employees to feel more engaged and committed to the work. 

3. Lead With A Growth Mindset

Define your culture by leading with a growth mindset. In a fast-paced environment, people tend to keep their heads down and focus only on the results. However, without paying attention to your growing culture, your employees might get left in the dark. Leading with a growth mindset (as opposed to a performance culture) will allow you to coach employees to learn every step along the way. Instead of strictly looking at numbers, a growth culture focuses on constructive feedback, personal responsibility and organizational culture.

Focusing on sales numbers is a great way to accomplish short term goals, but to drive company culture growth, company leaders need to look at the big picture. Instead of just looking at sales goals and performance, keeping a pulse on your company culture will help your company accommodate new clients and achieve better employee and client satisfaction. 

Remember, managers are the #influencers of the organization. How you set the tone will determine how your employees will follow. If you take the time to mentor your employees, they will feel more supported and confident on the job. With hands-on instruction, continuous learning and collaboration, employees will find more meaning and purpose in their projects. Leading with this mindset will drive your company’s success. 

4. Maintain Culture By Outsourcing HR

With ever-growing to-do lists, it’s easy to kick culture to the bottom of the list. As people get busy, especially in rapid growth, company culture might not be the focus of leadership’s day-to-day. Outsourcing HR allows you to have an expert third party take over your HR needs so you can save time on HR and focus on your company culture growth.

HR professionals can help managers stop answering onboarding questions (wait where’s my I-9?) and focus on the growth trajectory. Outsourced HR allows you to get the HR services you need without adding extra overhead to your company. 

Outsourcing HR will allow an expert to dedicate their time to establishing and improving your processes so you can focus on your culture. Instead of having other people neglect this crucial element, an outsourced expert will ensure everything stays on track. While enforcing the company’s mission, they will be able to identify any misalignments within the organization and handle potential conflicts. 

Am I Going To Lose Culture By Outsourcing HR?

Leading a company is something to take pride in, which makes it tough to give up control of certain areas of your business. (We understand, company leaders.) Your business is extremely important to you, but there’s no reason to bite off more than you can chew. Leading a growing company culture is a lot of work. Allowing outsourced HR assistance will free up your time and ensure your HR needs are being taken care of effectively. 

It’s a common misconception that outsourcing your HR will lead to your company losing culture. Many companies prefer to have an internal HR team and may fear that letting someone that doesn’t know about your company could hurt company culture. In reality, outsourced HR is an extension of your team. Our president, Scott Carter, discusses how outsourcing HR can benefit your business.

At EmPower HR, we believe in authentic connections. We take the time to understand you and your business to make sure we are aligned with your mission and to make sure we’re implementing the proper initiatives. With this in mind, we will make sure your culture is built around your same vision. You won’t lose your culture by outsourcing HR, your company will be primed to grow. 

Layoffs

When layoffs are necessary, engaging HR early on in the process is key. By involving HR from the beginning, you can ensure that the layoffs are conducted fairly and in accordance with company policy.

• Work with HR to create a clear plan for who will be laid off and how the process will work. Your management team is a key component in this process, and HR can provide support and guide any managers who may be struggling to cope with the layoff process. They can provide coaching and support to ensure the conversations go as smoothly as possible. 
• A strong communication plan is important to helping layoffs go according to plan. This communication plan should include a general announcement and individual meetings with affected employees. Engaging HR in the layoff process can help ensure that the layoffs are conducted with sensitivity and compassion.

Pay Cuts

In any organization, the Human Resources department is responsible for a great deal, from ensuring compliance with employment laws to managing employee benefits. However, one of the most important functions of HR is setting and administering payroll. One of the most difficult decisions that companies may need to make is reducing employee salaries to stay within their budget, and HR is key to making this happen. 

There are several factors that HR will need to consider when overseeing pay cuts: 

• First, they will need to determine which employees will be impacted by the cuts. Not only will they be able to help you decide which employees will be impacted, but they will also be able to assist with retraining or redeployment plans. 
• Second, they will need to calculate the new salary amounts for each affected employee.
• Finally, they will need to communicate the pay cuts to employees in a way that is respectful and professional while minimizing the impact on morale. 

By engaging HR early in the process, organizations can ensure that pay cuts are handled smoothly and efficiently.

Fringe Benefits

When it comes to reducing employee fringe benefits, it is important to engage HR from the outset. This will help to ensure that any changes are made fairly and transparently. 

• First, HR should be involved in any decision-making about which benefits to reduce or eliminate. They will be able to provide valuable insights into the impact of different changes.
• Second, HR should communicate any changes to employees clearly and concisely, which will help minimize confusion and maximize understanding. 
• Finally, HR should provide support to employees who are impacted by the changes. This may include assisting the employees in finding new benefits programs or offering advice on adjusting to the new situation. 

By working closely with HR, companies can ensure that changes to employee fringe benefits are made in a fair and supportive way.

No business owner wants to think about the possibility of financial hardship, but it’s important to be prepared for anything. Optimizing your HR team during these times is key to ensuring you can weather a tough economic climate. Your HR team can support reviewing HR-related operating expenses and see where you can cut back. This may involve making some tough choices, but these steps can help your business survive and thrive during tough economic conditions.

To stay competitive, employers must offer modern HR benefits that include a mix of financial and non-financial elements. By providing modern HR benefits, employers can show employees that they value their well-being and are committed to supporting their long-term success.

Have a comprehensive benefits package

A complete benefits package can include a variety of perks and incentives beyond traditional health insurance and retirement savings plans. For example, some employers offer employee assistance programs (EAPs), which provide confidential counseling and referral services for employees dealing with personal or work-related problems. Other expected benefits include flexible spending accounts (FSAs), which allow employees to set aside pre-tax dollars to cover healthcare expenses. Employers can attract and retain top talent by offering a modern HR  benefits package while helping employees stay healthy, happy, and productive.

Contributing to your employees’ retirement saving plans

Employers that contribute to or sponsor their employees’ retirement plans offer matching contributions up to a certain percentage to help with their employees’ retirement goals. This contribution is an attractive way for employees to save for their retirement, knowing that they have the additional financial resources from their company to reach their goals faster. These types of plans can provide peace of mind, reduce stress, and ultimately allow your employees to be happier and more satisfied at work. Offering this benefit will show your employees that you are committed to their long-term success in 2022 and beyond.

Tuition reimbursement

Tuition reimbursement is a big incentive and a great retention tool for companies in 2022 and beyond. This modern HR benefit comes with many perks for both the employee and the company.  First, it helps to attract and retain talent. Employees allowed to further their education are more likely to stay with the company and may be more likely to be promoted. Second, it helps to ensure that employees have the skills and knowledge they need to be successful in their roles. They will be better equipped to contribute to the company by increasing their knowledge and skills. In addition, it can help improve employee morale and motivation, which are important for productivity. From a bottom line perspective, businesses save money in the long run by reducing turnover and training costs while also having a tax-deductible expense. It is clear that tuition reimbursement is a modern and valuable benefit for companies to offer.

Paid parental and elderly care leave

 In today’s economy, more and more families are finding themselves in the position of having to juggle work and family responsibilities. Companies can help employees balance their work and family responsibilities by offering paid parental or elder care leave. This type of leave allows employees to take time off from work to care for a young child or elderly parent without losing their income. Paid parental or elder care leave can also help reduce absenteeism and turnover and improve morale and productivity while also being a valuable tool for promoting gender equality in the workplace. Businesses that provide paid parental or elder care leave commit to supporting their employees and families for today and in the future.

With remote work here to stay – it’s estimated that 25% of all professional jobs in North America will be remote by the end of 2022 – organizations are beginning to see that they quickly need to adapt. But how can businesses create a corporate culture without ever seeing their employees in person?

We’re pulling back the curtain and revealing the #1 secret to creating a successful remote work culture. Check out our top tips on why work culture is important, benefits of a solid culture and how to build a strong culture with a remote team.

What is Remote Work Culture?

It isn’t something that we think about. When done right, being part of a culture feels natural and gives a sense of belonging. (For example, liking Jay-Z situates you in hip-hop culture.) A work culture refers to a company’s values, goals, and mission that define the organization. 

Remote work culture is an unconditional feeling of connection co-workers experience when they’re bonded by similar priorities, interests, and attitudes.

A great work culture doesn’t just happen overnight. It takes time to acknowledge and thoughtfully build one. If you haven’t been paying attention to your company’s culture, chances are it isn’t where it needs to be. With remote work on the rise, it’s time to consider creating a remote work culture and introduce the best practices to implement it.

The Importance Of Work Culture

Company culture can make or break a job experience. One study found that 78% of executives said that culture is among the top five things that make their company valuable. Being part of a work “culture” is about being part of more than just the end product. Employees want to feel that their work is valuable and that they’re part of a larger company mission. 

The overall feeling of the workplace – workplace attitudes, beliefs and acceptable behaviors – create an atmosphere in your business that can make employees run away or stay for years. (Good workplace vibes, please!) For example, a company that makes an effort to be more inclusive can make employees with diverse characteristics feel more comfortable in the workplace – and more willing to stay. 

The best leaders don’t just focus on the work itself. They put in the effort to build strong workplace cultures, regardless of location.

So don’t let culture efforts take a back seat. While event planning and social hours are great bonuses, true work culture encompasses the environment through leadership, values, policies, and goals. Creating a positive work culture will:

• Increase productivity
• Make your employees feel more included and willing to share ideas
• Boost employee retention
• Encourage employees to be happier
• Inspire employees to work hard to grow the company
• Drive your business’ success

The #1 Secret to a Motivating Remote Work Culture

So, what’s the main secret to a successful remote work culture? The answer is trust. In a remote work environment, you have to trust your people, because it’s simply impossible to oversee everything from afar. But that trust goes both ways. 

Employers need to trust their employees will get the work done without constant supervision. Many managers are used to a traditional-style of management. They watch sales goals and like to see employees actively working at their desk. Without the ability to see employees’ daily “desk time,” it’s easy to perceive that employees are doing less work. (We completely understand, desk-hovering managers.) But, studies show that remote work productivity was stable or increased when working remotely from home. It’s ok to take a mental leap of faith in your employees. 

But there’s more to building employee trust than just expecting productivity. Business owners and managers can build trust by showing that they value their employees’ ideas, foster skill development, and praise employees for a job well done. Supporting your employees creates a remote work culture that primes your company for future success.

Showing trust and appreciation for your team creates mutual respect in the workplace. Employees will trust the company and its leaders – resulting in increased motivation and productivity. Workers are more likely to enjoy work when their needs and values are consistent with their employers. And that’s why trust is the secret ingredient to a motivating remote work culture.

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How To Build A Strong Culture With A Remote Team

Ok, so how do companies create a better work culture that’s built on trust? Too often, company culture is linked to ping pong tables, casual Fridays, group outings, and other in-person activities. But a remote team culture means that businesses need to ditch the in-office quirks that define their personality. (Sorry, ping pong tables.)  Here are just a few steps you can take to bond with your teammates virtually:

Virtual Team Building

When working remotely, it’s easy for employees to get stuck interacting with the people on their direct team. You can change that with virtual team building events! You’ll want to right-size these for your company. Virtual events can be company-wide or done in small groups made up of varying team members. Some ideas you can try are:

• Online trivia or quizzes. Find common themed trivia games to split into sign-up sheets. Popular franchises with big fan followings include Marvel, Harry Potter, The Office, Disney, and more. This allows groups to learn more about their coworkers and bond over a shared interest. 
• Virtual escape room. Some escape rooms offer online hosts to walk through the game in real life as you and your peers discuss and direct them virtually, making it feel like you’re all there working together. 
• Cooking or cocktail making class. When offering a form of demonstration or learning opportunity, send employees a kit in the mail for them to follow along and feel included. 
• Create your own game. Let’s get creative. If you and your employees have tried every game in the book, why not make your own? Come up with a fun strategy that will engage your team and make the questions unique to them or your industry. 

When offering virtual team bonding, aim to offer these within working hours. Everyone deserves a break in the workday to take the time to connect with their coworkers. If you choose to schedule an event after hours, make it optional in order to promote work-life balance.

Adapt Rituals Remotely

If your company has traditions and in-office rituals, try adapting them to be remote work culture friendly. Just because people aren’t in person, doesn’t mean celebrations have to stop. (C’mon party people, let’s keep it going!) From celebrating birthdays to work anniversaries or company milestones – hop on a video call to get together. There’s also the option to mail cards, care packages, or gift cards to celebrate your employees. Remind employees they’re important to your company goals.

Update Your Company Mission Statement

Employees want to be able to trust in a company’s mission and vision. Mission statements help employees see the meaning of their work by clearly showing how their job benefits a larger goal. Recognize that talented employees want to personally grow their skills and use them to drive a company purpose that they believe in. 

Are your employees aware of your business goals and where you see your company in 5 years? If you haven’t updated your mission statement and shared your vision, now is the time to let employees know. Sharing your vision will make your employees want to go the extra mile – once they see they’re part of something big. (Dream big, employers.) 

Want to know more? We’ve laid out the steps on how to build a strong culture with a remote team in detail in another blog.

How To Keep Your Remote Team Motivated

Take the extra step to tell your team they’re appreciated and doing a good job. Your employees should view you as a coach – someone who wants to help them succeed. Here are some tips to help you focus on your employees’ output and boost your bottom line. 

Offer Incentive Programs

It’s time for a hard look in the mirror. Ask yourself, does your company offer ways to recognize employees virtually? Nowadays great companies have ways for remote employees to acknowledge peers for their great work. 

When hopping on a last minute task or going the extra mile to help a coworker out, employees can send shout outs or points to each other for easing the process. Third-party companies are available online to handle this for you or you can monitor this internally through an instant messaging system. Organizations consistently recognized as “great places to work” are ones that frequently recognize outstanding work. 

Send Regular Updates

It’s the starting point for effective communication – make an effort to keep your team in the loop. During any company change, big or small, be sure to let your employees know. Policy changes, virtual event opportunities, bringing on new clients, and especially adding new team members, all require company-wide communication. Keeping your team informed ensures remote workers are aware of changes happening so they are never blindsided or left out of the conversation. 

A great initiative would be to schedule one-on-one calls – daily, weekly or biweekly. And don’t just ask for productivity updates. (Did you see the game last night?) Regular check-ins help keep employees motivated and engaged.

1. Communication is a priority

Whether you use video conferencing, chat apps, or even good old-fashioned phone calls, regular check-ins with your team members will help everyone feel like they’re part of the same workplace culture when working remotely. Ensure employees feel comfortable sharing their thoughts and ideas, even if they are not face-to-face. Encourage regular check-ins and allow for plenty of time for questions and discussion. Holding regular office hours as well for employees to virtually ‘drop in’ is also encouraged, as it allows employees to not feel as formal when wanting to stop by for a chat.

2. Create opportunities for connections

Although employees may not be able to interact with each other physically, there are still ways to create opportunities for connection as a remote team. Regular social events, team-building exercises, an online book club, and even virtual coffee breaks can help coworkers feel like they are part of a community. Great tools for remote work and creating connections are conferencing platforms like Zoom or Google Hangouts. Team members can get to know each other better and feel more connected by sharing personal stories, playing games, or simply chatting casually about non-work-related topics. Has anyone seen Inventing Anna?! Wow, what a scandal!

3. Make sure everyone feels included

With a remote team, it’s essential to go out of your way to ensure that everyone feels included and heard. This means being conscious of time zone differences when setting up meetings, as no one wants a video call at 9 pm. Also, ensure you connect with employees who may not be as engaged or mentally checked out. If you feel someone on your team is pulling away, set up a 1-1 and see how you can support and share their missed contributions and voice during team meetings. 

4. Promote employee autonomy

As a remote team, encourage employees to take ownership of their work and make decisions that impact their job satisfaction. This will help to foster a sense of ownership and responsibility among employees and promote engagement and motivation. Encourage your employees to choose their hours, work from various locations and take breaks when needed. Of course, not everyone may have this flexibility given their personal situation, but encouraging everyone to work in a way that prioritizes them and their work is a win-win for everyone. 

5. Don’t forget to show your appreciation for your team’s hard work

A little recognition can go a long way in making everyone feel valued and appreciated, which helps build a strong culture. From a shoutout in a company meeting to a team appreciation lunch, taking the time to say thank you is so key. In remote work, not everyone has the opportunity to pass one another in at the shall say “great job,” so intentionality is the key ingredient to ensuring you are showing your team a little extra love. 

6. Celebrate diversity

Remote teams are often more diverse than traditional workplace teams, so it’s important to celebrate and embrace this diversity. As a remote team, create a slack or chat channel to encourage employees to share their favorite foods, movies, and holidays in a personal way. To help build a team culture, each employee can pick a month to share and celebrate a holiday that is important to them. They can share stories and traditions and invite others to learn and participate as well.

Employee benefits packages can come in many forms, shapes, and sizes; along the way, they can get complicated (trust us, we know!). With new options and vendors becoming available on the market every other day, it’s important to ensure that you do a check-in on your employee benefits package. A competitive employee benefits package has its perks and is a great avenue to help employees reduce the cost of taking care of themselves and their families. Reviewing your employee benefits package is key to ensuring it’s comprehensive and, most importantly, that the packages are competitive with what other businesses are providing as part of their total compensation package for employees. Companies are now going the extra mile to include more creative benefits, which serve as differentiators and give a competitive advantage, therefore attracting and retaining bright minds.

 So, what are some great ways to ensure your company employee benefits packages stay competitive?

1. Have well-defined organizational goals

You might be wondering what do organizational goals have to do with employee benefit packages. Well, my friend, it has everything to do with it. Without clear goals to align your benefits to, you will be shooting in the dark to know if what you want to change will help you achieve the correct end result. For example, if you are looking to hire more executive talent as a key organizational goal, you need to know if the employee benefits package you have or want to change will appeal to that talent market. Without this in place, you’ll likely be running around in circles and wouldn’t even be close to being competitive. Having clear goals makes it easier to assess if your package is competitive enough and where you may need to make more changes.

2. Listen to what your employees ask for

Your employee benefits package wouldn’t be very competitive if you build them within a vacuum. It is key that if you are going to have a competitive employee benefits package, you design them with an understanding of your employee’s needs and areas of coverage that matter most to them. A great way to uncover this is to conduct a benefits needs assessment. This will serve as an eye-opener to what your employees really want without any guesswork. Trust us –  you don’t want to be spending a large amount on a plan employees’ don’t utilize or find helpful for their healthcare needs. The needs assessment can be in the form of surveys, questionnaires, and focus groups, and the feedback should be applied to any changes you are considering.

3. Don’t rush the development stage

At the development stage of making your employee benefits package more competitive, you need to assess the pieces of information, including goals, costs, and package offerings, and analyze how they would fit into your organizational budget and processes. Employee benefits packages are not cheap; they can sometimes be up to 40% of the total compensation package for employees. Knowing that this area can vary in cost, you want to ensure you are striking a balance between being creative and competitive but being in line with the budget for that cost center. One thing you dont want is that the cost runs too high, resulting in the benefits package being reduced or stripped back after the first year. This will definitely leave a bad taste in your staff’s mouth.

4. Market your benefits to your employees

Beyond someone’s first day and in a case of emergency or medical need, many employees don’t always remember what is in their employee benefits packages. The value of the benefits offered needs to be reinforced and communicated in detail in an HR folder or company intranet so that employees know the perks they’re entitled to. They also need to have a good understanding of how their benefits work. For example, is there an online portal for reimbursements, or do they need to be mailed in? Also, by marketing your employees’ benefits package, you are demonstrating that you are listening to your employees and considering their needs in  the benefits offered.

5. Always seek ways to improve by evaluating consistently

If you want your employee benefits to be competitive, this is not an area of your business where you want to ‘set it and forget it.’ At least on an annualized basis, you want to review your benefits package, analyze usage rates and compare it to new offerings in the market. Bake this review and analysis process into your annual employee lifecycle calendar to ensure you never forget and make any changes within the renewal period.

Here are 5 simple but effective ways to help your employees’ mental health:

1. Detect signs of burnout fast

As managers, we usually react to signs of burnout amongst our employees versus being aware of the red flags and being proactive with solutions.  Burnout can show in several ways, but most common in your employees are disengagement, increased absenteeism, decreased productivity, and even isolation. The best practice is to be proactive to try and prevent stress from getting to the level of burnout. The best way to do this for your employees’ mental health is to implement resources such as counseling, allowing flexible working hours, creating “working time” in employees’ calendars, and encouraging them to utilize their PTO and vacation time to unplug.

2. Connect and Collaborate

Since the pandemic, remote and hybrid work is now a norm, which has its benefits but can be challenging when trying to keep your employees engaged as a team. Creating opportunities for connection and collaboration is critical to helping your employees’ mental health. A few ways you can do this is to begin setting up your meetings in collaborative ways. From having structured agenda to leaving room at the end of the meetings to discuss innovative or out-of-the-box ideas, this can be just the avenue employees need to feel supported and heard. Also, let’s not forget the important role managers play in employees’ mental health. Setting up one-on-ones to connect on giving positive feedback and support on how to improve, can help reduce anxiety and support employees’ mental health.

 3. Make mental health training a part of your organization

Many employees may be facing various elements of stress and mental health concerns in their personal life, and us as managers may not always know what it is. These stressors can cause disruptions at work by increasing absenteeism, and a company support system must be in place to help employees’ mental health whenever possible. Employee Assistance Programs offering counseling and resources can be a great support and avenue for employees. In addition, HR must also look to implementing mental health programs to build mental resilience in the employees’ professional and personal lives. Including training that serves as a preventive measure would encourage real collaboration and foster a feeling of safety.

4. Recognize changes needed for a post-pandemic office

If you are looking to have your employees return to the office full time, you need to recognize that after two years, this is going to be a shift for some employees and their mental health. To help with this, you’ll need to accommodate your employees in the return-to-office plans to ensure the shift does not negatively impact the employees’ mental health. Ways to help this is increasing communication to update new office practices, schedules, and resources as it will help reduce anxieties about returning to the office while improving wellbeing and creating more collaboration at work.

5. Managers need to be a good example

Managers know the importance of employee mental health and how workplace performance heavily depends on this but what they don’t remember is that this goes both ways. If you expect your employees to use their existing EAPs, emphasize that this includes every position, level, or title in the company. Managers must take their mental health seriously, as leaders aren’t superhuman with special abilities. In extreme cases, all employees can experience stress, anxiety, burnout, and depression. Encouraging teams to harness the benefits of mental health awareness and training is beneficial for everyone.

So, what are the costs associated with a new hire? Let’s take a look:

Compensation & Taxes

As we probably are aware, wages are one of the highest costs of hiring. However, in the United States, this is not the only area to calculate when it comes to the compensation of your new hire. Depending on the state your employee will be living, various taxes must be included as part of the cost of hire. 

Let’s break this down and use the example of your new US Project Manager you have hired, Nadia, for this overview.

1. Federal Insurance Contributions Act Tax (FICA)

FICA tax is a payroll contribution from both employees and employers. It aims to finance Medicare (national health insurance) and social security (retirement). The FICA tax has two portions. Medicare is 1.45% and Retirement is 6.2%. The payment of FICA taxes also qualifies the employee for disability and life insurance benefits, as long as they meet the criteria.

 How does this impact you as Nadia’s employer?

As Nadia’s employer, you decided to pay Nadia a salary of $70,000 USD for her role as a Project Manager. With that annual salary, her  FICA taxes are 7.65% of her salary, therefore the FICA tax you would have to pay would be a total of $5,355.

2. State Unemployment Tax Act (SUTA)

SUTA refers to taxes placed in a state’s unemployment fund to pay benefits to employees who no longer work for their employers. It’s a big offense to neglect paying unemployment tax, and the consequences are fines, penalty fees, and even criminal charges to the employer in extreme cases. The tax rate differs in each state, coupled with how long the employer has been in the labor market.

How does this impact you as Nadia’s employer?

Nadia lives in a state where the state unemployment tax is 2.7%. With FICA, you are taxed on the first $9,500 of wages you pay to Nadia as an employee. That means, to have Nadia as an employee, you will need to pay $257 (2.7% x 9,500) to the government as part of her expenses.

Federal Unemployment tax (FUTA)

FUTA is a payroll tax of 6% employers must pay on employee wages for the first $7,000 in taxable wages. This tax falls solely on the employer as employees are not required to pay. Payments are due quarterly, and there’s eligibility for up to 5.4% in tax credits if the state unemployment tax is paid in full and on time.

How does this impact you as Nadia’s employer?

The standard FUTA rate is 6% on the first $7,000 of taxable wages per employee. What this means is that the maximum you would have to pay for Nadia would be $420 ($7,000 * 6%). Once Nadia makes $7,000 in gross wages for the year, your payment obligation is complete.

Workers’ Compensation

When an employee suffers a work-related injury or illness, they’re entitled to workers’ compensation benefits. Workers’ compensation is generally tax-free at both the state and federal levels. However, if Social Security Disability Insurance benefits (SSDI) come in, workers’ compensation might be taxed when some benefits have been evened out and balanced. In most states, if an employee receives benefits through workers’ compensation and Social Security Disability Insurance and it amounts to over 80% of average earnings before disability, SSDI benefits will be offset. This offset could be subject to taxes if earnings for the year are high enough.

How does this impact you as Nadia’s employer?

Workers’ compensation costs vary by the role that the employee is occupying as well as the state they work in. For example, Nadia is a Project Manager that works in Michigan. For her role as a Project Manager, the average cost of workers compensation is $0.11 per $100 of wages. Therefore, Nadia’s workers’ compensation total would be $77 annually (70,000 *0.11) /100).

Benefits & Insurance

If you offer health insurance to your employees, it sure won’t come for free as this comes under benefits. Even if you don’t provide benefits depending on the kind of worker hired and the agreement shared, you might still run into insurance costs. Here’s a breakdown of what you’ll need to cover on average as part of your benefits package to cover Nadia as a single-member individual.

• Medical insurance  – $9,000 / year
• Dental coverage – $289 / year, this is with a 20% contribution from the employee
• Vision – $60 / year, this is with a 20% contribution from the employee
• Life Insurance (optional) – $101 ($.12/$1,000 of Salary (1x Salary Benefit Design Assumed))
• Short-term disability (optional)  – This can be an additional coverage Nadia would like to have and therefore would pay for it out of pocket
• Long-term disability insurance (optional) – $210 ($0.30 per $100 up to $10,000 month benefit)
• Optional 401k matching contribution (optional)  – Should consider as additional employees are hired in the US.

Service fees

Here, we’re talking about the cost of working with a professional employer organization (PEO). A PEO works as an external human resources solution for mainly small and midsized businesses to support their back-office operations. Depending on the services they provide as well as your size, the costs can vary, but it is a cost-effective alternative to in-house human resources support. For PEO services on average, you could be paying $400/ month. 

When expanding your business into the United States, the costs of hiring can rack up quickly. Whether as a big organization or a small start-up, you need to ensure you’re hiring at the right time and the right way. Questions such as budget, systems for the onboarding process, and the cost of hiring are questions that should be a part of the planning and strategy stage of your expansion. To help you with this, it is key you have the right human resources partners to help you prepare and make this as easy and seamless as possible.

So, what keeps employees happy? What can you do to keep your workers happier and more productive? We’ve listed our best advice to help jumpstart a happier workplace. To keep employees happy, check out our 4 actionable steps you can take today.

The Importance of Employee Happiness

While the idea of leading an upbeat team sounds great, is it really necessary? As long as employees are doing their job, its fine…right? 

Well, unfortunately no. Here’s why employee happiness should be a top priority for your business – not an afterthought. 

• A happy workplace retains employees. Obviously, unhappy staff are more likely to quit, so if retention is something you care about (and it really should be, given the cost of replacing staff!) you should start paying attention to employee happiness.
• Happy employees are more productive. About 12% more productive, actually. Boost workplace morale and bump up your bottom line. 
• Happy employees provide better customer service. Job satisfaction creates a positive feedback loop— that sense of satisfaction makes employees willing to go above and beyond for your clients. Happiness is contagious and your clients will enjoy interacting with your employees that have a positive attitude. 

Clearly, having happy employees isn’t a bonus; it’s a necessity for every successful workplace. Productivity, motivation and retention all depend on it.

How to Keep Employees Happy in 4 Steps

1. Set the Standard

Company leaders are the #influencers of an organization. As a leader, your words and actions carry massive weight — and your employees are easily influenced by your example. You create the office mindset! Taking time for positive conversation with your employees = a happy workplace. 

But why is it important to lead a positive work culture? 1 in 3 employees left a job because they didn’t feel their employer cared about them as a person. As the boss, don’t underestimate the importance of walking into the office with a smile, saying good morning to your employees and making them feel important. 

2. Level Up Your Benefits Package and Add Little Perks

When employees feel their company takes care of them, they’re more likely to feel satisfied and be productive. But when benefits like dental and optical are expected, how can you go above and beyond without breaking the bank?

Discounts on a gym membership or matching an employee donation to a charity are low-cost ways to let your employees know you care. 83% of Millennials would be more loyal to a company that helps them contribute to social and environmental issues. So, establishing an employee matching gift program can be an easy win. (Make my employees happier and more loyal without extra overhead? Sign me up!) 

It’s the extra benefits and little perks that show your employees you’re there for them. Some cool perks include:

• Matching charitable contributions
• Team-building charitable activities
• Discounts to fitness centers or free gym memberships
• Offering in-office delicious, healthy snacks
• Hosting monthly, quarterly or yearly in-house training opportunities
• Free books. Employees can also join or form book clubs with their colleagues and make it a team building exercise. (Double win!)

The secret to finding the right perks is to get to know your employees and find out how you best support them. When your employees feel you are truly listening to them, they will be much happier and put in the extra effort. 

3. Revamp Your Workplace Culture

A positive work culture encourages employee friendships, improves personal well-being, and ultimately benefits your bottom line. (No really, it does.) The first step to creating a happy workplace is to open up company communication and improve transparency. 

Having regular meetings such as daily team stand-ups, bi-weekly status reports and quarterly activity reviews will ensure that your employees on the front lines are engaged in your company. It’s important that your employees are engaged in your company projects and that their thoughts and views are heard and appreciated. It’s a no brainer: making sure all employees are on the same page will increase motivation and productivity.

4. Create a Successful Work-Life Balance

It can be hard maintaining a social life, spending time with family, traveling the world, reaching fitness goals and excelling at work. Your employees want their job to be a fulfilling part of their life — but you need to be mindful that work isn’t the biggest slice of that pie. (And don’t mention pie if they’re really trying to reach their fitness goals!) Juggling these to-dos is easier with a healthy work-life balance. 

Overworking your employee can—and likely will—lead to burnout and high turnover. When an employee feels satisfied in their role, they’re more motivated to succeed. But spoiler alert: rebalancing your employee’s work/ life ratio isn’t always easy. Try these tips:

Implement a flexible schedule

Offer flexible working options like allowing workers to work remotely a few days a week. Encourage managers to measure progress in productivity—instead of time spent in the office. Employees shouldn’t be locked to their computer screens the whole work day. Allow your employees to: 

• Take time to run daytime errands
• Use their full lunch breaks
• Drop-off kids at school without using PTO
• Turn in-office days into remote days when needed
• Choose their hours, (not everyone works best with a 9-5pm schedule—and we want their best!)

Set work boundaries

It’s important to respect your employees’ time after work. Don’t schedule meetings or calls outside working hours. To maintain a highly productive and happy workplace, make sure you have clear boundaries set up between your employees and your clients.

Encourage your employees to take time off

PTO is critical to your employees’ well-being but workers might feel guilty requesting days off if it’s not the norm. (If you’re all-work-no-play, your employees will be too!) As an employer, you have the power to encourage them to take the PTO they’ve earned and enjoy time to refresh.

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