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.

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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:

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SurveyMonkey Enters the Employee Engagement Market

SurveyMonkey Enters the Employee Engagement Market

The online survey development SurveyMonkey has launched a new tool for employers called SurveyMonkey Engage, which (you guessed it) surveys employees about their engagement, job satisfaction, future plans, and other talent dynamics. Phil Albinus reports at Employee Benefit News that the platform collects anonymous survey responses, analyzes them, and displays them in a dashboard for HR directors and senior executives to review:

The first Engage poll, called a “core survey,” is 15 questions plus a few questions that require comments, which the company says takes only five minutes to complete. Employees have two weeks to fill out the survey before the polling is closed.

After the first survey, Engage begins a monthly follow-up survey of three to five questions to create what it calls a “check in.” This “conversational cadence” allows SurveyMonkey to poll employees for their opinions on their employer’s workplace, connection with their job, work matters and more. Every six months, employees take another core survey that resembles the first survey to “establish the baseline of employee engagement.” The company just released a new question bank to add additional questions to the check-in surveys if they desire.

SurveyMonkey is only the latest polling company to get in the engagement survey game: Gallup, for example, has been offering employee engagement services for years. With business leaders more focused than ever on capturing the value of talent analytics, these third-party services are likely to proliferate further in the coming years.

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