McDonald’s announced last week that it was expanding its education benefits program for employees to both increase the value of the benefit and widen the pool of employees who are eligible for it, USA Today reported on Thursday:
Previously, employees had to be on the job for nine months before having a shot at tuition assistance, but that’s been dropped to 90 days. Plus, the weekly shift minimum was 20 hours and now is 15 hours. The changes will make close to 400,000 U.S. employees eligible, the company said. Now, staffers can get as much as $2,500 a year from the Archways to Opportunity program for a trade school, a community college or a four-year university — up from $700. For managers, the figure jumps from $1,050 per year to $3,000.
Some employees’ family members will also now be eligible for assistance. The changes, which McDonald’s attributed to a tight labor market and the savings it accrued from the recent cut in the corporate tax rate, are funded by a $150 million commitment the fast-food giant is making to the program over the coming five years. Since launching in 2015, the company says, Archways to Opportunity has distributed over $21 million in assistance to around 24,000 people.
The program, which is open to employees of both McDonald’s franchises and company-owned restaurants, is offered in partnership with the online education company Cengage Learning. Amanda Eisenberg goes into more detail about how the expanded program will work at Employee Benefit News:
The high cost and limited availability of child care is one of the major burdens facing working families today, particularly in the US, but also in the UK and other countries: Parents are spending a sizable chunk of their incomes on child care, making career decisions based on these costs, and sacrificing earnings by pursuing flexible schedules or part-time work in order to make more time to spend with their children.
Unable to afford full-time child care, many mothers (and it’s almost always mothers) are forced to work part-time or drop out of the workforce entirely to take care of their children, especially when they have more than one. Because responsibility for child care still falls predominantly on women, this factor contributes heavily to the gender pay gap.
In the US, a historically tight labor market is driving employers to reckon with this problem, now that they are feeling it more acutely than ever, Jennifer Levitz reports at the Wall Street Journal. Levitz hears from employers around the country that are increasingly concerned about retaining female employees amid a dearth of child care options and have begun to look for ways to expand these options for their employees, including lobbying state governments for legislative solutions. Some coworking spaces have also experimented with child care programs as a benefit for their members.
The gold standard of child care benefits are on-site facilities, such as Patagonia famously offers at its Ventura, California headquarters and its Reno, Nevada distribution center. While these services are expensive to implement, Patagonia maintains that this investment nearly pays for itself between tax incentives, better retention, and lower turnover. From an employee perspective, on-site daycare is the family benefit most preferred by employees all over the globe, according to our research at CEB, now Gartner. This is particularly true in the US, where employees are twice as likely as in other markets to say they would prefer on-site daycare over a 5 percent increase in pay.
The US is growing more ethnically and racially diverse. By 2040, non-white people are expected to make up a majority of the population. The best organizations are getting ahead of this trend by creating a workplace environment that supports diversity. These efforts are leading to better results for employees and the organization: Companies in the top quartile for racial and ethnic diversity have 35 percent higher financial returns than the national industry average, according to our research at CEB, now Gartner.
To increase racial and ethnic diversity throughout the organization and leadership team—and to realize the benefits of a diverse workforce—organizations must attract diverse employees and remove barriers to their career advancement. Taking these five steps can help you meet both of these goals:
- Highlight organizational stability in job postings. When considering new employment opportunities, racially and ethnically diverse candidates are 1.2 times as likely as other candidates to list organizational stability (i.e., the relative continuity of the organization over time, particularly as it relates to long-term roles) as a key factor in a new job search.
- Train managers for success. Racially and ethnically diverse candidates are 40 percent more likely than other candidates to consider switching jobs if the prospective organization promises more skilled direct managers and colleagues.
- Offer financial wellness benefits. Student debt reimbursement programs and family-related benefits, such as emergency or onsite daycare and parental leave, are among racially and ethnically diverse employees’ top benefits preferences.
- Create specific initiatives for all levels in the organization. Most senior leadership teams do not reflect the diversity seen at the frontline and lower management levels of the organization. Identify specific initiatives to strengthen the pipeline of diverse talent at each stage in the employee development cycle.
- Encourage networked management. Time spent coaching does not always translate to better performance outcomes. Our research shows that connecting employees with relevant formal and informal learning opportunities is the most effective way to improve their performance through coaching.
CEB Diversity and Inclusion Leadership Council members can access a range of additional resources to learn more about attracting and retaining diverse talent.
IBM has joined the list of tech companies overhauling their parental leave policies to court working mothers in the US. The company’s VP of Employee Benefits, Barbara Brickmeier, announced on Wednesday that the company had updated its parental leave policy, applying retroactively to IBM babies born or adopted after November 2016: New mothers will now have up to 20 weeks of paid leave, rather than 14, and leave for new fathers, partners, and adoptive parents has been doubled from six to 12 weeks.
Parents can take this time off at any time during the first year after the birth or adoption, and IBM will also reimburse up to $20,000 of employees’ adoption of surrogacy expenses. Brickmeier also highlights some other changes the tech giant has made to support parents, especially mothers, in its workforce:
As medical diagnosis has improved, our society has recognized the potential of special needs services for children. Our Special Care for Children Assistance Plan reimburses employees $50,000 towards applicable services for each child with mental, physical or developmental disabilities.
In addition, we continue to adapt our popular family-friendly programs, which include:
- Our 2015 milk delivery program for nursing moms who travel on business has been expanded to international travel;
- Childcare center and after-school center discounts across the U.S.;
- Expanding expectant mother parking to IBM locations across 50 states;
- Investing in child care centers with guaranteed priority status for IBM families through our Global Work/Life Fund;
- A range of maternity and mindfulness services;
IBM already scored high on indices of working-mother-friendly employee benefits and corporate environments, and is both following and driving forward an industrywide benefits war to attract and retain working mothers to help fill their talent gaps. It has also developed, in partnership with iRelaunch, a re-entry program for mid-career women who have taken extended career breaks, such as to care for a child or elderly parent.
The US workforce includes roughly 9.8 million veterans, roughly 32 percent of whom served in the armed forces after 2001. These veterans and their spouses have become a focal point for progressive employers seeking to hire from a diverse and often highly qualified pool of talent that is often underutilized. Thanks in part to these efforts, as well as the work of many organizations dedicated to connecting vets with job opportunities, the number of unemployed veterans in the US has declined substantially over the past four years.
Organizations that make veteran hiring a priority do so not only out of respect for their service and sacrifice, but also because they recognize the value veterans can bring to their organization as employees. Our analysis at CEB, now Gartner, finds that veterans are slightly more productive than non-veterans and have lower turnover, by 2-3 percentage points. In fact, the average veteran employee contributes an additional $7,500 to an organization’s overall performance.
Yet despite the extra value veterans have to offer, many employers still shy away from hiring them due to misconceptions about their characteristics, abilities, and needs. At CEB’s ReimagineHR event in Washington, DC, on Thursday, Chris Ford, founder & CEO of the National Association of Veteran-Serving Organizations (NAVSO), led a panel discussion on strategies for recruiting and retaining veterans with Mark Erwin, Special Assistant to the Secretary at the US Department of Veterans Affairs, Ret. Major General Paulette Risher, Chief Programs Officer at Still Serving Veterans, and Dan Goldenberg, executive director of the Call of Duty Endowment. The panelists shared a number of important and in some cases surprising facts about veterans in the American workforce:
1) Veterans Can Be Hard to Find and Don’t Always Self-Identify
The first thing an organization needs to do if it wants to hire veterans is find them. Veterans can come into the hiring process through three different pipelines: While some may come straight out of the military, Erwin explained that fully half of the 250,000 veterans who transition to civilian life each year use their Post-9/11 GI Bill benefits to attend college, and so will be found through campus recruiting. Countless others, meanwhile, are already in the workforce, but they are not always easy to spot.
As more and more companies recognize the need to keep women in the workforce after they become mothers, the most progressive employers have introduced a range of new benefits to cater specifically to the needs of working parents. Quartz’s Jenny Anderson takes a look at the latest report from Working Mother highlighting the 100 US companies with the best benefits for moms and showing the lengths they are going to in order to retain them:
Cutting-edge companies on this front, including Deloitte, IBM, McKinsey, UBS, and Unilever, have delved into the most painful tradeoffs inherent to hard work: kids in need, household management, and family illness. The response includes help for parents whose kids have autism (88% of Working Mother’s top 100 companies offer this type of support), college coaching for teens (63% of the top 100 offer it), letting new moms phase back into work gradually with full pay (70% offer this), and even homework hotlines, which one-quarter of Working Mother’s top 100 offer. …
Working Mother, which has compiled the list for 32 years, picks its best companies based on 400 questions about a range of factors, including leave policies, workforce representation, benefits, childcare, advancement programs, and flexibility policies. … The most competitive companies go deeper, though, focusing on employees’ needs after parental leave, and how to help them stay. More companies are now willing to say, “‘I will pay more, have less in my bottom line, but I will keep employees,’” says [Subha Barry, senior vice president & managing director of Working Mother Media].
Retention is indeed the name of the game here, as the absence of family-friendly policies is a significant driver of attrition among working mothers.
The 2017 Nonprofit Employment Practices Survey, published recently by Nonprofit HR, shows how the nonprofit sector is being affected by the tight market for talent in the US and the growth of social enterprise organizations as a competitor in that market. Overall, the survey finds, the nonprofit hiring market is robust, with half of the 420 US and Canadian nonprofits it surveyed saying they planned to add staff in 2017. That figure declined by seven percentage points from 2016, however, whereas corporate hiring expanded, which the report attributes “at least in part to the growth of social enterprise and purpose-driven business.” In other words, the candidates who would normally seek out jobs at nonprofits are being attracted instead to socially conscientious for-profit businesses.
As the millennial generation has grown up to become the largest segment of today’s workforce, this generation’s values and interests are significantly influencing the way employers engage candidates and employees. Millennials do have a particularly strong interest in making a difference in the world, with a recent survey finding that 75 percent of US workers between the ages of 18 and 34 expect their employer to take positions on social issues affecting the country. Yet even though millennials may be driving the trend of a purpose-driven workforce, these interests are not unique to them.
Despite facing increasingly stiff competition, most nonprofits are not taking steps to improve their recruiting, talent management, and culture practices, the Nonprofit HR survey shows. 64 percent of organizations said they had no formal recruitment strategy, while the number that said they did has been declining over the past two years. Additionally, 70 percent have no dedicated recruiting budget, 69 percent have not engaged in an employment branding process, 81 percent have no formal retention strategy, and 52 percent do not have a diversity and inclusion strategy.