ReimagineHR: D&I Success Stories from HSBC and Volvo

ReimagineHR: D&I Success Stories from HSBC and Volvo

In a panel discussion at Gartner’s ReimagineHR event in London last week, Birgit Neu, Global Head of Diversity & Inclusion at HSBC, and Eric Way, Director of Diversity & Inclusion at Volvo Group, sat down with attendees to share their experiences evolving their organizations’ D&I strategies over time. Although Birgit and Eric come from different organizations with different D&I journeys, common themes emerged from their stories that offer some insight into how to run a successful D&I program. A key point both panelists raised was that D&I must be “red-threaded”—that is, consistently part of the entire employee experience, both on an individual level and in interactions with colleagues.

Birgit was HSBC’s first global Head of Diversity & Inclusion, which meant that her strategic direction was defined by the organization’s need to understand what work was already being done in the space of D&I at the organization. Her first tasks were to build that understanding and use it to create a central theme for how the organization would approach their D&I mission in a unified way going forward. Being closely aligned with the talent analytics function, she said, helped her and her team to assess the experience of the bank’s employees and identify opportunities for improvement.

One example she gave was about parents and caregivers: Many organizations assess the number of parents in the organization by how many individuals have identified dependents in the HR information system. At HSBC, however, Birgit and the talent analytics team were able to determine that when asked directly, many more individuals identified themselves as parents than the system indicated. This gave the company an opportunity to reconsider the experiences of the parents in its workforce and think about wellness communications in a different way. HSBC went back to employees to see if there was a difference between parents and caregivers, as they had previously lumped these groups together. They found that asking people these questions separately gave them a clearer picture of their employees’ needs and challenges, and have been able to work with the benefits team to ensure that communications are relevant and timely to each group’s needs.

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Fewer and Fewer US Workers are Moving for New Jobs

Fewer and Fewer US Workers are Moving for New Jobs

The number of people in the US who relocated for a new job last year declined to 3.5 million from 3.8 million in 2015, the Wall Street Journal‘s Rachel Feintzeig and Lauren Weber reported on Sunday, citing census data. Even as the US population has grown, the number of relocations has been on a downward trend overall since the government began tracking this data in 1999. A new analysis from Challenger, Gray & Christmas looks back even further and concludes that the percentage of job seekers willing to move for new jobs has fallen dramatically since the late 1980s: Between 1986 (when Challenger began collecting data) and 1990, the average annual relocation rate was 35.2 percent, compared to just 11.3 percent on average between 2007 and 2017.

Various factors can discourage candidates from taking jobs that require them to move, experts tell Feintzeig and Weber at the Journal. One major variable is housing costs: If candidates can’t afford to live in the high-cost cities where jobs are abundant, they won’t take those jobs. The high rents and other costs of living in powerhouse cities like New York, San Francisco, Boston, and Los Angeles can make it difficult for Americans from less expensive parts of the country to move there, even for comparatively lucrative work. When real estate values are low, on the other hand, candidates may be reluctant to move if they own a home they can’t sell; this is why, when General Electric moved its headquarters from Fairfield, Connecticut to downtown Boston in 2016, the company offered to buy relocating employees’ houses if they were unable to sell them.

Beyond housing considerations, workers may be unwilling to move because they don’t want to disrupt the lives of their spouses or children. Dual-income families may hesitate to relocate when one partner gets a job offer in another city, if that means the other partner will have to quit a good job in their current location. Such a move often means temporarily losing household income earned by the second partner and might also depress their future earnings.

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Poll: Elder Care Obligations Putting Strain on Young American Adults

Poll: Elder Care Obligations Putting Strain on Young American Adults

One third of Americans under 40 have spent time caring for an older relative or friend, while another third expect to do so in the next few years, a new poll from the Associated Press-NORC Center for Public Affairs Research finds. Furthermore, the burden of caregiving appears to be causing these younger adults more stress than their older peers:

These younger caregivers, age 18‑39, differ from caregivers age 40 and older in several ways. Younger caregivers spend fewer hours providing care compared to caregivers age 40 and older, who are more than twice as likely to spend 10 or more hours a week providing unpaid care (26 percent vs. 63 percent). Although they spend less time providing care, younger caregivers are more likely to report being at least moderately stressed by caregiving (80 percent) than are caregivers age 40 and older (67 percent). While caregivers age 40 and older are disproportionately female compared to the overall population (59 percent female vs. 41 percent male), this is not true of younger caregivers, who are just as likely to be male (48 percent female vs. 52 percent male).

Most caregivers say they are getting the support they need in their elder care obligations, with young adults saying they mostly rely on family for this support and often use social media to solicit the help they need. Younger prospective caregivers, not surprisingly, are more likely than their over-40 counterparts to say they feel unprepared to take on the role, but most say they expect to share these responsibilities with someone else.

The AP-NORC survey also found that most young American adults have little confidence that government safety-net programs will be there for them in their old age: only around 10 percent expect Social Security, Medicare or Medicaid to provide benefits at that time comparable to or better than they offer today. Younger Americans are also unsure of whether they will be financially prepared to their own elder care needs in retirement, with only 16 percent saying they were very confident that they would have the resources to meet those needs.

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Should Family Leave Apply to Chosen Family?

Should Family Leave Apply to Chosen Family?

While federal law in the US does not require organizations to provide their employees with paid family or medical leave, American companies are facing more pressure than ever to do so, from state governments, the labor market, activist investors, and the court of public opinion. All of the 20 largest US employers now offer some kind of paid parental leave benefit to employees who welcome a child into their families, while companies that employ large numbers of hourly workers are offering these employees paid parental and sick leave for the first time.

Of course, family leave encompasses more than maternity or paternity leave: New state family leave laws also obligate employers to grant paid time off when an employee or a member of their family experiences a serious health condition, while sick leave mandates and policies often allow employees to use that leave to care for a sick child or family member. Letting parents take paid sick leave to care for a sick child is not uncommon, but in recent years, progressive employers like Deloitte, Facebook, and Microsoft—to name just a few—have begun adopting more expansive caregiving leave policies. These companies recognize that the aging of the US population is putting many mid-career professionals, especially women, in the position of helping take care of their elderly parents and other relatives. The business case for caregiving leave is persuasive, as such policies help retain valuable talent and avoid losses due to turnover or reduced productivity.

Now that family care leave has entered the American mainstream, however, a new question has arisen: Who counts as family for the purposes of these policies? Some states and localities’ sick leave mandates entitle workers to apply their leave to caring for loved ones to whom they are not related by blood or marriage, the Associated Press’s Jennifer Peltz reports. That’s the case in the states of Arizona and Rhode Island, as well as the big cities of Chicago, Los Angeles, New York, and soon, Austin and St. Paul.

The concern among some skeptical employers and their advocates, however, is that the more-flexible family designation will encourage the abuse of sick time. But there’s a simple solution to that problem, Brookings Institution senior fellow Richard V. Reeves tells Peltz, which is to sidestep the question of defining “family” or “family equivalent” altogether and simply let workers use their sick leave to care for themselves or another person, whoever that may be. After all, this doesn’t increase the amount of leave to which employees are entitled.

New Union Agreement Gives Some of Volkswagen’s German Employees Extra Time Off

New Union Agreement Gives Some of Volkswagen’s German Employees Extra Time Off

A new union deal in Germany covering some 120,000 Volkswagen workers will give some of them the option of swapping some of their pay for additional time off, CNN Money reports:

Volkswagen said the workers will get a 4.3% pay rise starting in May, and from 2019 an extra 2.3% bonus and more pension benefits. Night shift workers, and those caring for children and elderly relatives, can swap the new bonus for six extra days off. If they do, they’ll be entitled to about 45 paid days off each year, including public holidays.

Volkswagen Group — which also owns the Audi and Porsche brands — employs about 286,000 workers in Germany and 350,000 in other countries. German workers are taking advantage of low unemployment and strong economic growth to flex their muscles at the negotiating table.

The deal between Volkswagen and the IG Metall labor union comes after the first strikes the company had seen since 2004, Reuters adds, and represents a compromise between the union’s demands for a 6 percent raise and the company’s initial offer of 3.5 percent initially and a further 2 percent over 30 months. It also includes a significant boost in the amount of money Volkswagen contributes to employees’ pensions, from 27 euros a month to 90, and then to 98 euros starting in 2020. In exchange for these concessions, Volkswagen secured the right to ask five to ten percent of the workers covered in the agreement to temporarily increase their working hours from 35 to 40 a week.

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Cisco Expands Global Parental Leave Policy to Make It More Inclusive

Cisco Expands Global Parental Leave Policy to Make It More Inclusive

Cisco updated its parental leave policy this month to make it both more generous and inclusive. The new policy, which went into effect November 1, eliminates the terms “maternity” and “paternity” leave and instead defines parents by the gender-neutral terms “main and supporting caregiver,” Amanda Eisenberg reports at Employee Benefit News. For US employees, “main caregivers” are now allowed 13 weeks of consecutive leave after adding a child to their family, while “supporting caregivers” are allowed four weeks. Both parents are also allowed to take paid time off for appointments, and new grandparents are now also entitled to three days of paid leave:

“We’re finding new and better ways to support our employees so they can be the best at home and at work,” says Shari Slate, vice president of inclusion and collaboration at Cisco. “The goal is that everyone feels respected and supported fairly and consistently.” The expanded caregiver leave benefit has been rolled out to 37,000 U.S. employees, while more than 33,000 additional employees globally will receive the benefit in fiscal year 2019.

Cisco’s new leave policy also includes additional time off for emergencies. The company says it recognizes that unexpected situations may arise and employees need time to give it their undivided attention. The emergency time off request, which can be for incidents like a tree falling through an employee’s roof or a family member falling ill, is approved by a manager at his or her discretion.

Cisco’s adoption of a gender-neutral policy reflects a growing demand for paid leave that applies to both mothers and fathers, as well as a realization that such policies are beneficial to families and help combat stigmas against mothers in the workplace. It also gets ahead of possible legal or regulatory changes, as the Equal Employment Opportunity Commission has been challenging parental leave policies that it sees as discriminatory for distinguishing between mothers and fathers.

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Washington State Enacts Paid Family Leave Mandate

Washington State Enacts Paid Family Leave Mandate

Washington State has joined the handful of US states that have enacted laws requiring organizations to provide minimum paid family and medical leave benefits for their employees, the Seattle Times reports, after Governor Jay Inslee signed a bipartisan bill into law on Wednesday:

The measure offers eligible workers 12 weeks paid time off for the birth or adoption of a child or for the serious medical condition of the worker or the worker’s family member beginning in 2020, or 16 weeks for a combination of both. An additional two weeks may be used if there is a serious health condition with a pregnancy. …

Under the new law, both employers and employees pay into the system, and weekly benefits are calculated based on a percentage of the employee’s wages and the state’s weekly average wage — which is now $1,082 — though the weekly amount paid out would be capped at $1,000 a week. Workers who earn less than the state average would get 90 percent of their income. Employees must work at least 820 hours before qualifying for the benefit.

Self-employed individuals who elect coverage pay only the employee share of the premiums, and employers with 50 or fewer employees are exempt from paying the employer share. Companies that already offer such programs can opt out, as long as they are at least equivalent to the state program.

Washington’s legislature first passed a family leave mandate a decade ago, but failed to devise a plan to pay for it until this year. The state also passed a paid sick leave law last year. Other states with family leave mandates include California, New Jersey, New York, and Rhode Island, as well as Washington, DC—though New York’s law will not take effect until next year, while the District’s mandate comes into force in 2020.

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