By Dan Darabaris

In an effort to address pay equity, lawmakers are taking action. Many state and local jurisdictions are passing pay transparency laws to try and close the pay gaps based on race and gender. The latest such law was just signed by Illinois’ Governor Pritzker. Broadly, these laws require employers to disclose compensation and pay range information. 

The scope of the laws, however, vary by jurisdiction. Some laws go beyond pay disclosure and include job description and record keeping requirements. Others prohibit employers from asking about salary history. To whom the law applies also varies.

For example, in New York, employers with at least four employees must disclose the compensation or range of compensation in any advertisement for a job, promotion, or transfer opportunity. Additionally, they must also disclose the job description, if there is one. Plus, employers must keep records that show the job description and compensation range history for each job opportunity. This applies to both in-person and remote jobs if the person performing the remote job reports to someone in New York state. 

New York City has its own pay transparency law, that requires covered employers in the city to list the minimum and maximum salaries or hourly wages, which were determined in good faith at the time of the job posting, for all advertised job, promotion, and job transfer opportunities if the positions can or will be performed – at least in part – within the city. The city council recently introduced a bill that would expand the law even further to also include a job description and description of non-wage compensation, such as bonuses, benefits, stocks, bonds, options, and equity ownership.

California’s pay transparency law applies to employers with 15 or more employees. They must post a pay scale in an open job advertisement. If the positions could ever be filled in California, either remotely or in person, the pay transparency law applies. 

Jurisdictions with Pay Transparency Laws

With enactments on the rise, businesses need to be aware of any pay transparency laws in their state or city so they can ensure compliance and avoid penalties and investigations. Below is a list of jurisdictions with such laws (as of 9-1-23).

States:

California

Colorado

Connecticut

Illinois

Maryland

Nevada

New York

Rhode Island

Washington

Cities:

New York City, NY

Jersey City, New Jersey

Ithaca, NY

Westchester County, NY

Cincinnati, OH

Toledo, OH

How Pay Transparency Laws Benefit Employers

When I broach this topic with my clients, many raise concerns that the compensation disclosure requirements may place them at a recruiting disadvantage. This may be true, but the laws also come with some benefits:

• Knowing what your competitors are paying can help you be more competitive when it comes to compensation
• Including pay information may help you attract more qualified applicants
• Applicants may view you as more transparent, increasing interest in your company
• Disclosing pay up front may streamline your application process by weeding out disinterested applicants

Wondering how evolving pay transparency laws impact your business and how to stay compliant? Our team of HR consultants can help. Schedule your free consultation.

By Nicole Martin

How satisfied are your employees with their jobs? If you don’t know, you’re in danger of losing them.

The key to retaining top talent is making sure they are happy. You might be thinking to yourself, “Well, they haven’t complained . . .” Don’t be lulled into a false sense of security. Just because your workers haven’t come to you with concerns or don’t appear disgruntled doesn’t mean that they like their jobs. Their staying quiet could actually be a red flag, as they might not feel comfortable enough, or care enough, to approach you. 

Because silence doesn’t equal approval, and the estimated cost of employee turnover is 33% of employee annualized salary, it’s important that management know how to monitor employee satisfaction.  As the talent management leader at Monarch HR Consulting, I routinely help organizations devise employee satisfaction measurement strategies. Below are a few of the tools I like to use.

Tools for Monitoring Employee Satisfaction 

Human Observation

This may sound simple, but human observation can be a powerful way to monitor satisfaction. Is your talent enthusiastic when they come into the workplace? Do they appear to be motivated to do their tasks? Do they engage with other team members? Are they meeting deadlines? Are they producing quality work? Do they ask for more challenging assignments? How often are they absent? The answers to these questions will give you insight into whether your talent are content in their roles.

Surveys

A well-organized anonymous survey, whether it’s a longer annual survey or a short pulse questionnaire, can help you gauge employee satisfaction. The questions should focus on culture, benefits, career development, job satisfaction, communication, teamwork, engagement, and performance. Make sure the questions are easy to understand and answer.

Employee Net Promoter Score (eNPS)

The eNPS helps management determine how employees feel about the company based on one single question: “On a scale of 0-10, how likely are you to recommend this company’s products and services to others?” A 9 or 10 indicates the employee is a promoter. 7 or 8 indicates that they are passive, meaning they don’t feel strongly one way or the other. 0 to 6 refers to detractors, i.e., those who are not happy with their job and are likely to jump ship.

Employee Satisfaction Index (ESI)

The ESI is a great tool for measuring the contentment of talent. It is a survey that asks a series of questions with answers ranking on a scale, usually between 1 and 10. You use a formula to calculate the ESI percentage. Below is a common baseline:

• 80-100: Very high satisfaction
• 70-79: High satisfaction
• 60-69: Acceptable satisfaction
• 50-60: Low satisfaction
• 0-50: Very low satisfaction 

Regular Meetings

Although not anonymous, a one-on-one meeting can provide valuable feedback and data – if you ask the right questions. This gives talent the opportunity to raise any issues and concerns, as well as management the ability to tap into how the employee feels about their performance, career development goals, workload, obstacles, tasks, job expectations, and more.

Suggestion Boxes

Many employees have something to say, but don’t want management to know it is they who are saying it. A suggestion box allows your workforce to anonymously share their thoughts and opinions in a safe setting.

By Kimberly Kafafian

Did you know there is a systematic way to analyze your employee compensation packages? If not, now is the time to invest in developing a formal pay structure; the right pay structure can make all the difference in the success of your company. A methodically devised pay structure considers more than compensation; it reflects a strategic approach to talent acquisition, motivation and retention – all of which impact success and long-term viability. 

I spent the first 15-years of my HR career designing and calibrating pay structures so they remained market sensitive – meaning that as the marketplace ebbs and flows, so does the cost of labor. In designing a pay framework that aligns with industry standards, job roles, and individual contributions, organizations are better positioned to attract and retain top talent, foster a culture of fairness and transparency, and enhance employee engagement and morale, which in turn boosts productivity, and growth. 

Key Steps for Designing a Pay Structure

Understand Your Goals and Values

The very first step is to identify your overall compensation policy. Do you want to lead or meet the market in terms of compensation? If you want to be a leader who attracts and retains the very best talent to drive the optimal results, you will need to offer a more competitive compensation package. Your answer sets the strategy for your pay structure.

Conduct a Job Analysis

Next, analyze every job role in your organization, noting:

• Responsibilities
• Relation, and importance, to other roles
• Necessary qualifications
• Skills needed to perform the job

Create Job Groups

Now review the culled job role data and group roles into related families, i.e., administrative, technical, creative, management, executive, etc..

Rank Job Roles

After you have created the groups, rank the jobs within each group. You can use a more informal hierarchy approach based on the value/worth of the role compared to other roles in the group, or, you can use a point factor approach that allocates points for the skills, effort, and working conditions for each role.

Do Your Research

To run a successful organization, you need to offer a competitive pay structure if you want to attract and motivate your workers. Research the salaries your competitors are paying for similar job roles. You can purchase salary data and utilize market surveys, as well as gather info from the U.S. Bureau of Labor Statistics.

Create Pay Grades and Salary Ranges. 

Now you are ready to design the actual pay structure. Using the salary data you gathered, create pay grades and salary ranges for each job role. Pay grade refers to the level of compensation for workers in a certain position or similar jobs, while salary range reflects the minimum and maximum pay for an employee. Keep in mind that the typical salary range is 30% to 40%. 

By following the above steps, you will have designed compensation numbers that are more in line with your goals and the competition. While designing a pay structure is an in-depth process, the long and short-term benefits are well worth the investment. Note that your pay structure should be fluid, so regularly review it to make sure it’s still aligned with market trends and employee expectations. 

As HR specialists with a pulse on the market, we can help you effectively design a pay structure to help you attract and retain the talent you need to succeed. Schedule a free consultation.

By Kimberly Kafafian

It’s usually not a matter of if, but rather when, you’ll receive a workplace complaint. In fact, over the last six months, my company has seen a significant uptick in requests to conduct workplace investigations. These investigations are typically prompted by an employee’s concern over the behaviors of others, such as harassment or discrimination. Investigations are also launched by a company due to a violation of company policies or laws, or other action that could affect workplace safety and security. As an unbiased third-party, a trained Monarch employee will review the complaint, and collect evidence and facts to determine if any actions are necessary, including termination. 

While conducting the investigation, we may interview employees and ask them to provide us with documentation such as emails, texts, or statements. We may also review records, logs, surveillance videos, etc. While our scope may be broad, we do not have free rein. Employees have rights, and we must adhere to them as we investigate.

Rights Employees Have During an HR Investigation

A workplace investigation is just that, an investigation. It is not a legal proceeding, so the right to due process does not apply. Although as part of their employment, employees are expected to cooperate with investigations, provide any documents or information requested, and be honest, they do have the following rights:

The Right to Decline to Answer Questions

Employees cannot be compelled to provide answers to questions. They may refuse to answer at any time. But invoking the right to not answer can have consequences. If the employee signed an employment contract that requires them to cooperate and answer questions, the employer can terminate the employee for not cooperating. Additionally, if the investigation is related to a criminal act, the employer can contact law enforcement who may continue the investigation themselves.

The Right to Refuse to Sign Something

Employees do not have to sign anything during a workplace investigation, even if they are asked to do so by their employer or the investigator. For example, the investigator may ask the employee to sign a document acknowledging their participation in the investigation and/or that they agree to cooperate. While the employer can ask them to do so, it cannot compel them to. They are free to refuse.

The Right to Privacy

Employers must respect an employee’s right to privacy. They cannot record phone calls or interviews in violation of state wiretapping laws or search through a cell phone without consent. Typically, some privacy rights are waived by signing an employee contract or handbook, which frequently provide employers access to review work emails, monitor computer usage, and search belongings brought onto the workplace. 

It is important to note that being a part of an investigation is a protected activity. When I conduct an investigation, I always review the following with the person I am speaking with: 

• Retaliation for making a report of misconduct or harassment is forbidden by the company.
• You must immediately advise either me or your human resources department of any perceived retaliation or of further incidents of misconduct or harassment.
• I need to inform you that all types of retaliation are forbidden, including: demoting, transferring, or dismissing you or any employee involved in this investigation.

Conducting a workplace investigation is best left to the professionals who understand the types of actions that can and cannot be taken. If you violate an employee’s rights, you open the organization up to a lawsuit. 

Need assistance with an investigation? Our HR team can help. Call to schedule a consultation.

By Dan Darabaris

As a small business owner, you’re probably used to wearing many hats and juggling various responsibilities – manager, sales, bookkeeper, etc. If you’re handling HR activities as well, you may want to rethink your strategy of doing it all on your own. While it may seem like an unnecessary expense for a small business, having a human resources professional on your team helps to foster growth, ensure compliance, and nurture a positive work environment that can help you attract and retain the right employees to boost productivity and profits. If you are concerned about the cost, hiring a full-time HR pro may not be necessary for a small business. You can outsource all of your HR needs or simply retain a professional on an as-needed project basis. 

Why Small Businesses Need HR Help and How It Can Contribute to Long-Term Success

Talent Acquisition and Retention

Attracting and retaining the right workforce is critical for any business, regardless of its size. HR professionals have the skills to develop recruitment strategies, conduct interviews, and assess candidates to find the right fit for your company’s needs. Plus, they can create comprehensive onboarding processes to bolster employee engagement and satisfaction, increasing the likelihood of retaining those workers long term.

Compliance with Employment Laws

Are you knowledgeable on all the compliance requirements your business must adhere to? Navigating employment laws can be daunting, especially for small business owners who probably don’t have an HR or legal background. HR professionals stay up to date on the ever-evolving labor laws, ensuring that your business remains compliant in areas such as hiring, payroll, employment contracts, workplace safety, fair compensation, and even filing requirements. Having them on your team can minimize costly fines and potential legal actions.

Employee Training, Development, and Performance Management

Investing in the growth and development of your employees is essential for building a successful business. HR professionals can design training programs, devise career development offerings, provide guidance on career advancement opportunities, and oversee performance reviews. By having an HR pro help foster a culture of continuous learning, you can improve employee productivity, engagement, and overall performance.

Employee Relations and Conflict Resolution

No matter how happy your workplace may be, conflicts and disputes may arise. HR professionals are trained to objectively mediate conflicts, address grievances, conduct investigation, and promote effective communication among employees. A neutral HR professional can help you maintain a positive work environment and prevent potential disruptions that could impact your business’s bottom line.

Policy Development and Implementation

Having clear policies and procedures in place is important for ensuring consistency and fairness. HR professionals can develop employee handbooks that outline guidelines for expected behavior, attendance, vacation time, leave policies, personal internet use, performance assessments, consequences for violating policies, and more. They also play a key role in implementing such policies and ensuring that they are effectively communicated to all of your employees.

Benefits Administration and Employee Well-Being

Happy and healthy employees are vital to a business’s success. HR professionals can design and administer employee benefits packages, such as health insurance, retirement plans, and wellness programs. They can also develop well-being initiatives that focus on work-life balance and mental health. 

Although a small business may have limited resources, investing in HR support yields valuable short and long term benefits. By outsourcing HR functions, business owners can spend more time on building their business, trust they are compliant with employment laws, and create a more positive work environment to drive overall organizational success.

The right level of HR engagement is YOUR choice to make.

From on-demand to year-long support, Monarch helps manage your people, reduce your administrative workload, and free up time so you can focus on business success.

Call or email us to arrange a complimentary consult.