How Can an Employer Incentivize Social Responsibility?

How Can an Employer Incentivize Social Responsibility?

At an all-company meeting last week, Facebook CEO Mark Zuckerberg announced that the company was retooling its employee bonus system to reflect a new set of priorities, focused on addressing the controversies surrounding the social media giant concerning the proliferation of hate speech and misinformation on its platform. In addition to traditional metrics like user growth and product quality, Facebook will reward employees this year based on their success at promoting the social good including combating fake accounts, protecting users’ safety, and making progress on other social issues affected by Facebook and the internet in general.

The decision to reward employees for doing social good reflects a challenge that many companies, particularly large corporations with major public profiles, are facing today. Investors, politicians, the media, and consumers are paying more attention than ever before to the social, environmental, and ethical consequences of what businesses do. And Facebook is not alone in this desire, for example, Chevron recently announced that it would tie executive compensation to reductions in the energy corporation’s greenhouse gas emissions. This dynamic, in turn, puts more pressure on corporate leaders to deliver sustainability and social responsibility as well as growth.

For Facebook, awarding bonuses to employees for meeting social responsibility goals will inevitably test the company’s ability to live up to two truisms: “actions speak louder than words,” and “what gets measured gets done.” To the first point, companies can articulate all the values they want, but at the end of the quarter or fiscal year, what matters is whether the organization actually lived up to those values in its day-to-day business practices. We’ve seen companies attempt to project an image of social responsibility, only to get called out for not really reflecting that image in their work. The impact of Facebook’s new policy will take time to fully materialize, but when it pays out bonuses for 2019, investors and reporters will be curious to see whether they have really rewarded the kind of choices they say they intend to, and whether those rewards reflect a real change.

As to the second point, Facebook has set itself an ambitious goal of identifying quantifiable metrics by which to determine progress against its goals of social good. Facebook has acknowledged that there is no easy or obvious formula for doing this, but they are looking at targets like number of fake accounts shut down daily or improvements to safety and security as possible metrics. Being a data-driven company, Facebook will likely get more granular and detailed about how it defines success, especially with both the media and governments paying closer and closer attention.

Here are four things that any company considering a similar change should be ready to do to make it more likely that an incentive program like this will be successful:

Read more

More US Companies Encouraging Employees to Vote This Year

More US Companies Encouraging Employees to Vote This Year

Anyone in the US who has recently had a work meeting derailed by their coworkers talking politics knows that the elections coming up on November 6 are attracting far more attention and interest than midterm elections normally do. The political environment in the US remains highly charged and polarized, while these elections are seen as having particularly high stakes. Poll watchers are expecting voter turnout to be high, partly helped along by a growing number of employers giving their workers paid time off to vote on Election Day. Beyond that, Washington Post columnist Jena McGregor reports, they are actively encouraging their employees to go out and vote:

At Cava, the Washington D.C.-based chain of Mediterranean fast-casual restaurants, its 1,600 workers will get two hours of paid time off to vote on Election Day this year if they request it in advance, a nationwide perk for its workers. For the first time, Tyson Foods, the meat company, has launched a company-wide voter registration initiative, with many of its plants participating in an effort to register employees and offer details about early voting, absentee ballots and voting locations. Levi Strauss & Co. has named volunteer “voting captains” in each of its offices and distribution centers to hold registration drives and educate workers; it’s also giving employees, including retail workers, paid time off to vote.

Organizations that give their employees time off on Election Day, whether they make it a holiday or simply let staff take a few hours off to vote, do so for a variety of reasons. At some companies, this decision stems from a culture of social responsibility; at others, it may be part of an effort to improve their public image. Though few companies take public positions in favor of a particular candidate or party, still others may be hoping that their employees vote a certain way. It could also help boost employee engagement and perceptions of the organization; a recent study by O.C. Tanner found that US workers who get time off to vote have more positive things to say about their employers than those who don’t, HR Dive reported last week:

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

Corporate America Is Moving in the Wrong Direction on Sexual Harassment Transparency

Corporate America Is Moving in the Wrong Direction on Sexual Harassment Transparency

Since last year, the #MeToo movement has blown a hole in the shroud of secrecy that has long surrounded the scourge of sexual harassment at companies of all forms, sizes, and industries, both in the US and around the world. Yet just as the public consciousness of this issue is growing, more sexual harassment complaints are being handled behind closed doors than in the past. The US Equal Employment Opportunity Commission and equivalent state agencies received 41 percent fewer complaints in 2017 than they did in 1997, Bloomberg’s Jeff Green points out—not because fewer employees are getting harassed, but rather because companies have become much more likely to handle these matters internally:

Ninety-five percent of companies now have an in-house complaint process, the Society for Human Resource Management said in a January report. Eighty-two percent have an investigation protocol in place. …

At the company level, HR departments don’t always know the extent of their own problems. The same SHRM report found a wide disconnect between what HR sees and what employees are saying. Three out of four non-manager employees who experienced harassment said they did not report it. At the same time, 57 percent of human resource professionals said that unreported sexual harassment occurs “to a small extent.”

Read more

SurveyMonkey Offers Contract Workers Benefits on Par with Employees

SurveyMonkey Offers Contract Workers Benefits on Par with Employees

The San Mateo, California-based online polling company SurveyMonkey announced last week that it has been offering the independent contractors it employs a suite of “gold standard” medical, dental, and vision benefits, identical to those of its regular full-time employees, since January, Phil Albinus reports at Employee Benefit News:

Under the medical plan, 80% of claim costs are paid by its insurance carrier and the third-party employer pays 85% of employee premium and 50% of dependent premium. Contract and third-party employees are entitled to 80 hours of vacation and 40 hours of paid sick leave per year, including seven paid holidays, 12 weeks of paid parental leave per year and 12 weeks of paid medical leave per year. These workers can also receive a monthly subsidy of up to $260 for public transit expenses.

The divide between employees and contractors in Silicon Valley is vast: Whereas Facebook, for instance, reported a median employee salary of over $240,000 in its latest proxy filing with the Securities and Exchange Commission, that number does not include the army of contractors and subcontractors who provide security, custodial, catering, and other facilities management services for the social media giant. These contingent workers don’t enjoy anything resembling the plush benefits packages Facebook offers its full-time employees, and the impact of this inequality in the high-cost San Francisco Bay Area has drawn growing criticism toward the tech sector (Facebook is by no means unique in this regard).

In our age of HR as PR, benefits inequality has become an increasingly popular subject of scrutiny on the part of investors, the public, and the press. Starbucks expanded parental leave benefits for its hourly store employees earlier this year after activist investors began asking pointed questions about the disparity in leave benefits between hourly and salaried employees and whether this difference put the company at risk for claims of discrimination. Interestingly, in the case of SurveyMonkey, the impetus to equalize benefits for contractors came not from investors or the press, but rather from employees:

Read more