Google Will Require Full Benefits for its Contractor Workforce by 2022

Google Will Require Full Benefits for its Contractor Workforce by 2022

Google revealed on Tuesday that it was phasing in a policy that will require its outside suppliers to provide health insurance, paid parental leave benefits, and a $15 minimum wage to employees working for the tech giant on a temporary or contract basis. The announcement was made in an internal memo issued to all employees and shared with the Hill:

Google will now require that the outside companies employing the workers provide them with comprehensive health care, a minimum wage of $15 per hour, 12 weeks of parental leave and a minimum of eight days of sick leave.

Google is beginning the efforts in the U.S., where there are not specific regulations around paid parental leave or comprehensive health care. Other countries in which the company operates have specific legislation around paid parental leave and other benefits. The company said it made sense to start in the U.S. because Google is setting a standard.

Google is giving the “suppliers” — companies that employ the temporary workers and contractors — until January to institute the minimum wage requirements. A Google spokesperson said it will give suppliers until 2022 to institute comprehensive health care benefits.

Google has faced increasing pressure from its “TVC” (temporary, vendor, and contractor) workers, as well as an activist community of its full-time employees, to improve the conditions under which TVCs work for the company. A day before the memo was issued, the Guardian reported on a letter signed by more than 900 Google workers calling for significant changes in the way the company deals with its contingent workforce. The letter originated from TVCs working on the global “personality team” responsible for crafting the voice for Google Assistant, most of whom had their contracts abruptly and unexpectedly shortened in early March:

Read more

Microsoft Will Require US Suppliers to Provide Parental Leave

Microsoft Will Require US Suppliers to Provide Parental Leave

Over the coming year, Microsoft will implement a policy requiring its suppliers in the US to provide their employees a minimum of 12 weeks paid parental leave, paid at up to $1,000 per week, Dev Stahlkopf, Corporate Vice President and General Counsel at Microsoft, announced in a blog post on Thursday:

This change applies to all parents employed by our suppliers who take time off for the birth or adoption of a child. The new policy applies to suppliers with more than 50 employees and covers supplier employees who perform substantial work for Microsoft. This minimum threshold applies to all of our suppliers across the U.S. and is not intended to supplant a state law that is more generous. Many of our suppliers already offer strong benefits packages to their employees, and suppliers are of course welcome to offer more expansive leave benefits to their employees.

Our new supplier parental leave requirement is informed by important work on paid parental leave done in states, including Washington. In 2017, Washington state passed family leave legislation, including paid parental leave. This new law will take effect in 2020. As we looked at this legislation, however, we realized that while it will benefit the employees of our suppliers in Washington state, it will leave thousands of valued contributors outside of Washington behind. So, we made a decision to apply Washington’s parental leave requirement more broadly, and not to wait until 2020 to begin implementation.

Like other major US tech companies, Microsoft relies on an undisclosed number of workers employed by third-party contractors; this so-called “shadow workforce” of contract laborers, who typically do not enjoy the same generous benefit packages as those directly employed by these companies, has been the subject of growing scrutiny and recent labor disputes, as GeekWire’s Nat Levy points out. Microsoft has faced controversy over its contingent workforce in the past, most notably in a high-profile lawsuit by “permatemps” in the 1990s. The company began putting standards on labor conditions at its US suppliers in 2015, when it began requiring that those with 50 or more employees grant a minimum of 15 days of annual paid time off to eligible employees.

Microsoft’s latest move intersection of several broad trends shaping the benefits space in the US today.

Read more

Some Tech Companies See Value in Benefits Equality for Contractors

Some Tech Companies See Value in Benefits Equality for Contractors

The online polling company SurveyMonkey made headlines earlier this year when it revealed that it had begun offering “gold standard” medical, dental, and vision benefits, identical to those of its regular full-time employees, to its independent contractor workforce in January. The company was inspired to do so by its employees, many of whom pointed out in a benefits survey that while their benefits were excellent, they thought it unfair that they were unavailable to the company’s janitorial and catering staff.

Last week, Fast Company’s Eillie Anzilotti took a closer look at SurveyMonkey’s decision to equalize benefits, considering the change in the context of growing awareness of the impact this form of inequality has on the army of contractors who manage facilities for Silicon Valley tech companies and many other white-collar firms in the US. SurveyMonkey is committed to making benefits equality work, primarily as a statement of its values, Chief People Officer Becky Cantieri told Fast Company:

“We have expectations for ourselves that we use our platform to contribute positively to the industry,” Cantieri says. The prevailing independent contractor model in Silicon Valley leads to “two groups working literally side by side, who have a very similar impact on the day to day experience of working at the company, but are treated very differently,” she adds. It’s still an unusual arrangement in the tech world, so SurveyMonkey has been slow to scale it to its other offices outside of San Mateo, as they want to ensure they’ve ironed out the kinks, but they intend to do so going forward: This open enrollment season, they will bring expanded benefits to contract workers at the Portland office.

She also checks in with Managed by Q, a platform for part-time janitorial, maintenance, and clerical workers, whose founder Dan Teran decided in 2014 to classify workers on the platform as employees, not contractors, and offer them benefits including health insurance, paid leave, a 401(k) plan, and even equity. “Even though it may seem like a higher cost up front, we believed that the overall value of doing so would be higher than us just saying it’s not worth investing in our employees,” Maria Dunn, Managed by Q’s director of people, tells Anzilotti. The extra costs imposed by Teran’s decision isn’t hobbling the startup’s growth: Managed by Q has raised over $76 million so far and is turning a profit. It recently announced that it was acquiring the office space planning and project management service NVS, broadening its portfolio of services and potentially gaining new clients.

Read more

Is Benefits Equality the New Frontier in HR as PR?

Is Benefits Equality the New Frontier in HR as PR?

Over the past two years, we’ve seen a growing number of organizations leverage their HR strategies as a means of enhancing their employer and consumer brands simultaneously. The idea behind this “HR-as-PR” strategy is to make the organization more attractive to candidates—a growing concern in a tight labor market—while also cultivating a reputation among increasingly values-focused millennial customers as a progressive or socially conscious company.

Viewed through this lens, Rent the Runway CEO and co-founder Jennifer Y. Hyman’s recent op-ed at the New York Times illustrates the emergence of a new theme in HR as PR: ensuring that different classes of employees enjoy equal access to benefits like parental leave:

Like so many companies before us, my company, Rent the Runway, had two tiers of workers. Our salaried employees — who typically came from relatively privileged, educated backgrounds — were given generous parental leave, paid sick leave and the flexibility to work from home, or even abroad. Our hourly employees, working in Rent the Runway’s warehouse, on the customer service team and in our retail stores, had to face life events like caring for a newborn, grieving after the death of a family member or taking care of a critically ill loved one without this same level of benefits.

I had inadvertently created classes of employees — and by doing so, had done my part to contribute to America’s inequality problem. …

Read more