Trending Now

Building a Resilient Supply Chain with Advanced Predictive…

New Articles

Does Your Recruiting And Culture Meet The New Candidate’s High Expectations?

recruiting
Archives, Commentary, Global Trade Daily

Does Your Recruiting And Culture Meet The New Candidate’s High Expectations?

Leave a comment

“The Great Resignation” in 2021 created a talent shortage and prompted company leaders to re-evaluate their perspective on hiring and culture. Amid job candidates’ shifting demands and higher expectations, some businesses are learning they’ll need to adapt their recruiting strategies to hire the right workers in 2022.

But while most leaders understand that a positive work culture is critical to successful recruitment and retention, too few know how to build and sustain the human-centric workplaces employees look for from employers today, says Kathleen Quinn Votaw, the author of DARE to CARE IN THE WORKPLACE: A Guide to the New Way We Work.

“The pace of change and challenge over the past few years will continue to define us in 2022, as will the fluctuations of the job market,” says Quinn Votaw, CEO of TalenTrust, a strategic recruiting and human capital consulting firm. “This shared experience of COVID-19 has taught us that what propels growth today is putting employees first and creating cultures around well-being and resilience.

“Employees will refuse to work in any culture that lacks humanity. Far from our history of top-down management practices, we’ve learned that kind, empathetic leaders attract and retain the best talent and achieve the highest levels of success. As we wade into another year of unknowns, 2022 gives us a once-in-a-lifetime chance to rethink work.”

Quinn Votaw offers these tips for leaders to consider for their recruiting and retention strategies in 2022:

Know what job candidates want and deliver. “People choose you because you’ve created a powerful candidate or employee experience,” Quinn Votaw  says. “It’s time to untie your culture from the past and focus on what people want from employers today.” She says the employer’s brand and being authentic to it will become more crucial in attracting candidates. “LinkedIn research shows that 75% of job seekers check out your brand and reputation before they apply,” she says.  “People want specifics about how you’re handling change and how flexible your policies are.” Further, the offering of remote work, she says, will show those companies are serious about diversity, equity, and inclusion, and new tech tools will help businesses leverage each stage of recruitment.

Build a sense of community in your culture. Employees today experience their companies in different ways: some onsite, some from home, and others in hybrid situations. It can be a dramatic work-life evolution, and Quinn Votaw says leaders and employees alike can find themselves confused and uncomfortable. “A successful forward path begins with being purposeful about what employees experience working for you,” she says. “Recognize that even small changes to your policies can make a big impact on employees’ day-to-day experience. View every individual holistically; work and personal lives should not be seen as ‘either-or.’ Build a community where everyone feels safe being themselves. Appreciate, celebrate and support your employees as the valuable assets they are.”

Practice hands-off management, hands-on feelings. Quinn Votaw says today’s more demanding candidate desires empathetic leadership that doesn’t micromanage and disrespect them. “Fewer employees will put up with the poor management practices of the past,” she says. “The most effective managers recognize that when they lead with humanity first, they empower others to be more authentic, kind, and attuned to feelings. Coach them rather than boss them. And in the interview process, let candidates know in detail what you’re doing to lead virtually as well as in the office. Overall, leaders need to dare to care for their people.”

“Over the past two years we’ve realized that we all fail or thrive together,” Quinn Votaw says. “In this pivotal moment, we have the opportunity to rethink our recruiting and workplaces and break the status quo that has kept us from reaching our full potential.”

________________________________________________________________

Kathleen Quinn Votaw (www.talentrust.com) is the CEO of TalenTrust, a strategic recruiting and human capital consulting firm. She is the author of DARE to CARE IN THE WORKPLACE: A Guide to the New Way We Work. Regarded as a key disruptor in her industry, Quinn Votaw has helped thousands of companies across multiple industries develop purpose-based, inclusive communities that inspire employees to come to work. Her company has been recognized in the Inc. 5000. Kathleen also speaks nationally on recruitment, culture and leading with empathy in the workplace.

supply chain
Archives, Commentary, Global Trade Daily, Special Reports

How to Make Supply Chain Employees Feel More Invested in Their Work

Leave a comment

Supply chain operations typically involve a lot of long hours and repetitive work. That can make it difficult for employees to feel invested in their jobs, leading to errors, lower productivity and burnout.

If supply chains want to optimize their operations, they can’t overlook employee investment. Here are eight ways that management can encourage their employees to invest more in their work.

1. Help Workers Reach Their Own Goals

One of the best ways to get workers invested in the company is to invest in them first. Management should start by helping employees define and pursue their personal professional goals. This will show that the company cares about their development and is willing to put effort into it, encouraging reciprocation.

This process starts with talking with individual employees to help quantify their specific goals. Studies show that those with defined goals are ten times more likely to succeed than those without them. After that, management can create progress charts to monitor growth, encouraging hard work from employees and pushing them to their full potential.

As workers strive toward their individual goals, they’ll become more invested in their day-to-day work. The company as a whole will benefit as a result.

2. Provide Paths for Upward Mobility

Another crucial factor for employee investment is career advancement opportunities. Just 29% of surveyed employees say they’re satisfied with their workplace’s opportunities for career advancement. If workers don’t have anything more to reach for, there’s not much reason for them to invest heavily in their performance.

By contrast, if there are plenty of paths for upward mobility, employees will have the motivation to work harder. Supply chain organizations can promote from within rather than finding outside hires for upper-level positions. That way, workers will know that they can work their way up, encouraging them to invest in the business.

3. Enable Lateral Movement

In that same vein, supply chain organizations should also enable lateral movement. In addition to being able to move upward, workers should be able to change areas or departments. This will help keep satisfied, productive employees if they decide they want a career change or to apply new skills.

Some workers may start to feel burned out in their current role but have skills and interests that apply to another. Letting them change jobs to work in another department could help them find work within the company that compels them. When employees can find the role that fits them the best, they’ll invest more in their job.

4. Reward Investment

Some strategies to help supply chain employees feel more invested are remarkably straightforward. By rewarding those who invest more heavily in their work, employers can motivate employees to do so. Management should establish a system for rewarding hard work, such as productivity bonuses or an employee of the month scheme.

Monetary incentives are particularly powerful, but they’re not necessary if they’re outside a company’s budget. In one survey, 37% of workers said that more personal recognition would drive them to produce better work more often. Recognizing professional and personal achievements, especially in front of others, can provide the encouragement employees need to feel invested.

5. Be Charitable

Another way to help employees feel more invested is to create a company spirit that they want to invest in. If employees can see how their work contributes to a cause they care about, they’ll be more willing to put more into it. Supply chain businesses can foster this by donating to charities or helping local organizations provide community services.

It’s important to ensure these efforts go beyond one-time actions. They should be ongoing, in-depth initiatives so workers know they’re contributing to meaningful change, not just a publicity stunt. For example, some organizations donate profits to education departments, as well as partner with education organizations. This broader but still unified scope helps make a more substantial impact.

6. Be Sustainable

Another way that companies can help employees contribute to things they care about is through sustainability. Since transportation is responsible for almost a third of all greenhouse gas emissions, supply chains often have considerable carbon footprints. Embracing sustainability initiatives can help make up for this and encourage more investment from employees.

Investing in electric vehicles or renewable energy infrastructure can help supply chain companies become more sustainable. As these efforts grow, workers will see that their efforts within the company contribute to a greener future. Publishing sustainability goals and achievements will help raise awareness and drive further investment from employees.

If possible, try to tie these directly to workers’ achievements. That way, employees will have more concrete encouragement that their actions lead to more eco-friendliness.

7. Organize Team Building Events

Even if companies follow other steps, employees will struggle to feel invested if they feel distant from their coworkers. Businesses can fix that issue by planning regular social events to help build a more communal spirit. When employees feel closer to their coworkers, they’ll feel more engaged at work, driving more investment.

These activities don’t have to look like traditional corporate team-building exercises. They can be as simple as an after-hours party where management provides food, drinks and activities. The more casual and less work-related these feel, the better, as that will help develop closer, friendlier relationships.

8. Listen to Employees

Finally, supply chain organizations should seek employees’ advice on what would help them feel more invested. If management doesn’t take the time to listen to workers’ feedback, the employees will feel undervalued and won’t put in as much effort. Employees may also have good insider advice for the company, so regular surveys can fuel ongoing improvements.

Workers should have an accessible, always available means of giving feedback. While 64% of HR leaders think such a tool is essential, only 20% have one in place. Creating an HR chatbot or comment box is a simple fix that will help employees feel valued.

It’s important to follow up on these comments, too. Asking for feedback won’t lead to any meaningful change if management doesn’t also act on it.

An Invested Workforce Will Drive Success

When supply chain workers feel more invested, they’ll give more to the company. They’ll be more productive, produce higher-quality work and foster more positive workplace relationships. In an industry that can easily become dull and disenchanting, those benefits are impossible to ignore.

These eight steps can help any supply chain business motivate and encourage its employees. They’ll invest more heavily in their work as a result.

engagement roambee
Archives, Commentary, Global Trade Daily

8 Effective Strategies for Increasing Engagement Among Supply Chain Employees

Leave a comment

Even in heavily automated fields, employees are the lifeblood of any company. Many supply chain optimization strategies focus on new technologies and workflows, but any effective measure must also consider the workforce.

One of the most important factors to address is employee engagement. Without an engaged workforce, no supply chain will operate at its full potential.

Why Is Engagement Important?

Engagement, the degree to which employees feel motivated, interested and passionate, is hard to quantify but essential to success. Studies show that highly engaged teams are 21% more profitable, exhibit 59% less turnover and 41% less absence.

Despite those benefits, many companies fail to engage their employees. As of January 2021, just 39% of U.S. workers reported being engaged at work. While that figure has risen over time, it still indicates that most employees don’t feel motivated in their workplaces.

In a field like supply chain operations, where efficiency is crucial, businesses can’t afford to overlook this data. Employers must keep supply chain workers engaged, and here are eight strategies to do so.

1. Invest in Employees’ Careers

One of the most important steps to take is to emphasize career development. Surveys show that 94% of employees will stay at their company longer if their employer invested in their career. By contrast, if workers feel like they have no opportunities for advancement in their workplace, they’ll become dissatisfied, eventually leaving.

One solution is to provide opportunities for upward mobility within the company, promoting from within. Another is to offer career development classes or training, equipping workers with new skills. Whatever path a company takes, it should emphasize and promote these opportunities.

2. Listen to Employee Feedback

Another effective strategy for increasing engagement is to listen to what employees have to say. Workers will quickly become disinterested and disillusioned if they feel that management doesn’t care about their opinions. Asking for feedback can help assuage those feelings, but it’s important to go a step further, too.

Businesses must respond to employee feedback, not just request it. If common threads emerge between workers’ suggestions or complaints, there’s likely an underlying issue that needs addressing. Management should take all feedback seriously, thanking employees for it first, then investigating it further. If meaningful change comes from this feedback, companies should highlight it.

3. Create Volunteer Opportunities

Engagement often stems from workers’ respect for the company or a feeling like they’re making a difference in their role. One way to lean into that is to coordinate volunteer opportunities for employees to give back to their communities. In a 2017 survey, 74% of employees and workers said that volunteerism improves their sense of purpose.

Management should look for opportunities to partner with local charities or organize volunteer initiatives. It’s also important to encourage participation, partly to involve more workers and partly to show enthusiasm for the project. Hosting projects like this at least once a year can help employees feel they’re part of something bigger, improving morale.

4. Host Social Events

Volunteer opportunities aren’t the only events outside of work that can boost employee engagement. Social events like parties, potlucks and trips can give workers a chance to grow closer to one another and their leaders. As employees build closer, healthier social relationships within the workplace, work will begin to feel more cooperative and engaging.

Listen to employees to gauge what types of outings and events would interest them the most. Hosting various social events throughout the year can help appeal to different workers, ensuring no one feels left out. In nearly all settings, providing food can be effective, so find people-pleasing recipes to bring.

5. Recognize Commendable Performance

One of the primary goals of boosting engagement is to get employees to perform to their full potential. If companies don’t recognize and reward exceptional performance, they can’t expect workers to strive for these goals. Conversely, if management shows their appreciation for commendable work, more workers will feel motivated to perform better.

In some circumstances, simply highlighting a job well done to other employees is enough to motivate workers. Offering tangible rewards for meeting certain performance goals may be even more effective, as it gives something concrete for employees to work toward. These rewards could be cash bonuses, extra paid time off, gift cards or anything else that workers would want.

6. Pay Attention to Worker Health

Another effective employee engagement strategy is to emphasize worker health. Employees will have an easier time engaging with their work if they feel their company cares about their wellbeing. In supply chain operations, this should include measures to prevent injury, but sponsored workout classes or fitness goals are also good ideas.

Considering one in five American adults experience a mental health issue each year, this strategy should include mental health. Businesses should emphasize the importance of looking after emotional wellness and offer related solutions. Counseling services, support groups and other measures can help assure workers their company cares about them.

7. Remove Inefficiencies and Complexity

Some factors affecting employee engagement aren’t as immediately apparent. One impactful yet relatively easy-to-fix obstacle is inefficient or overly complicated workflows. If employees have a hard time understanding what they’re supposed to do or face multiple obstacles doing it, it will be hard to remain engaged.

The solution to this issue involves two main areas of focus: training and workflow adjustments. More comprehensive, involved training can help workers understand their tasks better, removing mental roadblocks to engagement. Removing unnecessary complexity or inefficiencies in a workflow will then help employees focus on value-adding work, maintaining engagement.

8. Lead by Example

Finally, it’s important for supply chain management to embody the company spirit in their own work. Workers won’t likely exhibit much engagement if the leaders they see don’t appear motivated or passionate about their work either. By the same token, if company leaders are enthusiastic, positive and driven, it will inspire others to be the same.

Studies show that 50% of all workers have left a job at some point because of a bad manager. What constitutes a “bad” leader may vary between people, but leaders saying one thing and doing another certainly won’t help. Anyone in a leadership position in supply chains must lead by example.

Engaged Employees Are Productive Employees

Supply chains become far more efficient with engaged employees. If logistics companies can follow one or more of these eight strategies, they can engage their workforce on a deeper level. They can then maximize their human potential, mitigating workforce issues that plague the industry.

employees
Archives, Commentary, Global Trade Daily, Special Reports

Sidestep The Great Resignation: Keep Workers By Helping Their Communities

Leave a comment

From a business perspective, the turbulent year of 2021 will be remembered for “The Great Resignation,” when record numbers of employees left their jobs.

But when it comes to the worldwide problem of talent shortages across many industries, perhaps employers haven’t seen anything yet. New Year’s resolutions of retaining top employees or finding the right talents when recruiting may be even more difficult to achieve, if you believe surveys such as one conducted in the fall of ‘21 by LumApps in collaboration with CMSWire. Seventy-one percent of U.S. participants in the poll say the pandemic made them rethink what they want out of their career, and 63% have considered a new career in the past year.

All that data fuels concerns among many employers that the talent shortage will continue to be a major problem in 2022. Everest Group’s 2022 Key Issues Study shows companies’ No. 1 constraint now is “finding enough talent to run the business.”

This talent crunch, along with the trend for many companies to move from 100% remote work to a hybrid model or back to a fully in-person model, is causing business leaders to reconsider what keeps their teams happy and productive. Many are asking: How can we keep employees invested in and passionate about our brand in this new hybrid environment?

One key to keeping the best employees on board may lie in how well companies give them the opportunity to put their own skills and interests into action in making a difference in the world. In the LumApps/CMS poll regarding “The Great Reflection” among workers, among the reasons cited are heightened demands for flexibility and inclusivity in the workplace, more career growth and companies that walk the talk about corporate social responsibility. Indeed, employees’ special gifts and passions for social issue involvement contribute towards helping their company’s overall impact efforts and also to employees’ fulfillment: 76% in the LumApps/CMS poll are looking for corporate social responsibility and 73% want to choose employers with a reputation for supporting diversity, equity and inclusion.

Just as businesses have unique abilities and resources to solve problems for their communities, their employees have their own set of talents that can add a rich dimension to the company’s social-impact profile. Unleashing those talents can be as simple and informal as assigning appropriate roles to your employees for a volunteer project. If there’s a photographer on the team, for example, have them take photos at the event. Have a group that loves to haul things in their pickup trucks? Put them in charge of collecting the cans from your office locations for your food drive.

Over time, of course, you can become more intentional and strategic about how you use your employees’ skills. We do an employee survey or focus group with our client teams to identify employee interests such as public speaking, strategic planning, committee leadership, budget planning, and more. Effectively leveraging these skills and interests helps extend our client’s impact footprint in the community, even with limited formal staff resources.

Employees, especially the younger workforce, are looking for a deeper meaning in their work and to feel as though they are contributing to something impactful. Millennials are especially vigilant about researching and weighing the values and cultures of companies they want to work for. Gen Z is following suit, looking for authentic commitments from their employer to take action to solve the world’s problems.

This is worth the effort: recent statistics on corporate social responsibility show that 95% of employees believe businesses should benefit all stakeholders, including the communities in which they operate, and 70% say they wouldn’t work for a company without a strong purpose.

Employers are understanding that social impact is a critical component to an effective business strategy. In today’s connected and interdependent world, employees increasingly demand that businesses and their suppliers take part in creating solutions to the world’s most pressing problems. It’s time to fire up those special talents and passions to build engagement and loyalty.

_______________________________________________________________________

Maggie Z. Miller and Hannah Nokes are ForbesBooks co-authors of Magnify Your Impact: Powering Profit with Purpose (www.magnify-impact.com). They also are co-founders of Magnify Impact, a company that helps business leaders create effective social impact strategies. Miller has developed social impact solutions with hundreds of company leaders globally. Previously, she founded an international nonprofit organization to provide microcredit loans for thousands of women in Peru. Nokes has led corporate social responsibility for global corporations and founded an impact collaborative of companies in Austin, Texas.

employees
Archives, Global Trade Daily, Special Reports

Why Are Good Employees Leaving Your Company? 5 Tips To Keep Them.

Leave a comment

The job quitting isn’t stopping: a record 4.3 million workers left their jobs in August – a milestone that followed the April landmark of 4 million Americans exiting their companies.

Some people are leaving their jobs because the COVID-19 pandemic caused them to reconsider how much their companies value them. In that context, whether it’s a matter of pay, work demands, work-from-home flexibility, or overall culture, it’s important that businesses seeking stability and growth know how they can retain their best employees, says Michele Bailey (www.michelebailey.com), ForbesBooks author of The Currency of Gratitude: Turning Small Gestures into Powerful Business Results.

“With over 10 million employment vacancies, some people are leaving because they are confident they can find a better job, a better fit in line with the new perspective the pandemic has given them,” Bailey says. “So at this point, a good number of jilted employers should be asking themselves, ‘Why are talented people leaving my company? What can I do to change that, regain stability and grow?’

“The answer is often looking back in the mirror at them, and in how they treat people more as laborers than rare gems who are special – people who can make the workplace special. It’s fixable, but it’s all about putting your employees first.”

Bailey says in terms of retaining top employees, companies and their leaders should think about these points:

Know the cost of replacing good employees. One report shows that it costs 33% of a worker’s annual salary to hire a replacement if that worker leaves. “Clearly, retention and development of existing employees make the most sense if they are the right fit,” Bailey says.

Encourage professional development. Bailey says forward-thinking, growth-oriented companies hire talented people with the capability of taking on bigger responsibilities. “Professional development provides the opportunity for steps up in their career path,” Bailey says. “Employees who do not see a clear path are at risk of leaving.”

Build culture by acknowledging the whole person. “Work-life balance” has gotten a lot of attention during the pandemic, but Bailey says good leadership ensures that balance is in place by going the extra mile to know employees and to listen to their concerns, whether personal or professional. “The reality is that all of us bring our personal selves to work and our work selves home with us,” she says. “When something is going well or poorly in either space, it tends to seep into our attitudes and behavior in the other. When you address the overall wellness of your people as part of your business mandate, you have people well-aligned and rowing in the same direction.”

Create an army of brand ambassadors by empowering your employees. Employees who feel their voices are heard at work are nearly five times (4.6) more likely to feel empowered to perform their best at work. Employees who use their strengths every day are six times more likely to be engaged at work, 8 percent more productive, and 15 percent less likely to leave their jobs. “Many businesses tout themselves as collaborative workplaces with great cultures; however, worker frustration suggests that the reality is otherwise,” Bailey says. “A good culture is a place where they’re freed to flourish, energized, and proud to represent the brand to clients.”

Reward and recognize. “Showing gratitude to your workforce is imperative to having a successful business,” Bailey says. “Eventually people want you to show them the money – and you must if you truly value them – but frequent shows of gratitude in any form should be consistent and timely.”

“We can hold onto our talent and keep our people engaged,” Bailey says, “by creating an environment where employees become emotionally connected through gratitude to company leadership, to each other, and to the company’s purpose.”

__________________________________________________________________

Michele Bailey (www.michelebailey.com) is the ForbesBooks author of The Currency Of Gratitude: Turning Small Gestures Into Powerful Business Results. She also is founder/CEO of The Blazing Group, a brand and culture agency born of her strategy-first approach to business and desire to enhance employee wellness in pursuit of business goals. She is also the founder of My Big Idea®, a mentoring program designed to propel individuals toward their personal and professional goals. Bailey has been recognized for contributions to women and entrepreneurship with honors such as the Bank of Montreal Expansion & Growth in Small Business Award and the Women’s Business Enterprise Leader Award in 2020. Bailey is a popular speaker and is also the author of a previous book, It’s NOT All About You, It’s About the Company You Keep.

worker
Archives, Global Shippers 101, News

Key Considerations in the New World of Work

Leave a comment

Employers around the world are all familiar with how COVID-19 has changed—and continues to change—the face of work. With so many employees working in a full-time capacity from home, the jury is still out on the extent to which this trend will continue once the crisis has been brought under control.

What we do know is that increasing numbers of employees who are in the position to take advantage of greater flexibility about where to work are weighing their options.

There are different terms to describe that flexibility – “work from anywhere” (WFA), or “work from home” (WFH) are the two most common. Another, related trend is also on the rise: “delocation,” or the movement out of high-cost, urban centers into less crowded or less expensive suburbs. Whatever we call it, however, it continues to present multiple challenges that HR and global mobility professionals must grapple with.

Cross-border remote work was taking hold long before the pandemic. Estonia launched an e-residency program to entice location-independent workers as far back as 2014. Since then, several other countries have introduced their own versions of visa programs that essentially permit stays of varying lengths, as long as individuals are employed by foreign entities and meet certain criteria, such as minimum income levels and proof of insurance.

What is new since COVID-19 is the sheer volume of remote workers in locations other than that of their employing entity. In addition, some employees may be seeking to work remotely in global destinations that are not yet offering remote worker visas, with geographic considerations, lifestyle choices and travel restrictions perhaps more top of mind than what the immigration requirements are that they must meet.

While every company will have a unique approach to addressing a changing remote work landscape, there are some essential things that both employers and employees need to consider.

Compensation

Whether companies adjust employees’ compensation by location will depend on multiple factors. Glassdoor provided an interesting discussion on the impact on pay when employees opt to move to a new location on their own volition. “A highly debated issue facing employers today is whether pay should be adjusted for their fully remote workers choosing to move to new cites. Opinion on this topic runs the gamut, from those who advocate for fully adjusting pay based on local cost of living to those who argue for a flat pay structure for remote workers—essentially arguing that geography is no longer an influential or determinative factor in setting pay in our newly remote-friendly world.” However, the article goes on to say, “The reality of how pay will adjust as millions of workers go remote is complex. Every worker is different, and it’s not possible to predict a single or uniform base pay adjustment that will be appropriate for all workers across varying situations and locales.”

A key point of the article is that pay, for a very basic reason, will almost certainly adjust for many workers who go fully remote and locate to new cities: In labor markets, compensation varies by geography for complex reasons related to supply, demand and productivity — not just the cost of living.

Other critical elements come into play, too, such as local labor laws and whether compensation adjustments would even be permissible for foreign nationals, depending on their immigration status.

But are employees willing to accept pay cuts? A Fast survey of 600 U.S. adults found 66% willing to take a pay cut for the flexibility of working remotely. To what degree they would accept a reduction varied, however:

-14% would accept a one-to-four percent cut

-29% would take a five-to-14 % cut

-17% would take a 15%-to-24% reduction, and

-7% would take a 25% or more cut.

That said, one-third (34%) would not accept less pay for flexible remote work.

Benefits

With a growing number of employees working from home, employer policies have been shifting with regards to the type of home-office expenses the company might cover. While most companies traditionally reimburse fully or partially the usual “hard” costs (e.g., a laptop), some employers have expanded their policy to cover the “softer” costs of equipment that make the workspace more comfortable and productive.

A Mercer survey on the topic of COVID policies found that employers reimburse or provide the following remote support: laptop (56.3%), mobile phone (37%), ergonomic office equipment (23.1%), printer (21.3%), internet (17.5%), nonergonomic office equipment (16.1%), and utilities (5.2%). However, 29.5% of respondents provide no such support.

And then there is the question of travel to office locations, both in the short and longer-term. How often might employees be required to be onsite? If they have voluntarily opted to move within a close enough distance to commute in a few days a week, will there be any reimbursement incentives up to certain distances? What if the remote policy is revised once the virus risk is brought under control – but employees have opted to move to locations that are deemed to be beyond the standard definition of a reasonable commute? For those who voluntarily requested and were approved for a WFA arrangement, what will the guidelines be around cross-border business travel and potentially required testing expenses?

The Mercer research also looked at whether participants have reviewed benefit plans for risks or limitation in coverage and such employer obligations as occupational health. Respondents stated:

-Yes, we have already reviewed and made adjustments (12.5%)

-Yes, the review is in progress (29.4%)

-No, but we will review in the near term (25.7%)

-No, we do not intend to review (23.4%)

Events of the last year have turned a spotlight on just how critical it is to offer a comprehensive global medical plan to traveling employees and those on a global assignment. Verifying the policy covers an employee who elects to change locations is important to ensure continuing coverage.

Compliance

When it comes to both organizational and individual tax considerations, every situation is unique, and should be informed by the guidance of qualified professionals. But generally speaking, we know that cross-border remote work can cause both employers and employees additional tax headaches, whether those borders are global or regional.

Craig Anderson, CPA, SCRP, SGMS, Vice President of AECC Mobility and current Chair of the Worldwide ERC Tax Forum, has written extensively on the U.S. perspective. “Generally speaking, taxpayers pay income tax to the state in which they work, which is defined as their ‘tax home.’ Although they will owe tax on the earnings to their work state, the home (residence) state will also require filing a tax return and they may possibly pay state taxes there as well.

In the U.S., employers generally need to withhold state taxes for the state in which the employee works. Some states have reciprocal agreements with neighboring states which allow the withholding of taxes based on the employee’s home state tax schedule. Doing so relieves the employer and employee of withholding obligations and remitting income tax on wages earned in the nonresident work state.

Unless you live in one of the nine U.S. states with no income tax, you will always file a resident return that claims all the income you earned, regardless of where you earned it, unless reciprocity exists. This can result in situations in which the employee is subject to tax obligations in both resident and non-resident states. Most often these situations are remediated by a credit on their resident state tax return for the work state’s withholding paid. Unfortunately, such credits are not consistent from state to state and may not provide complete relief from double taxation.”

What does this mean? In the U.S., more Americans may find themselves in the position of filing two tax returns or even paying additional taxes, because the pandemic has them working across state lines. Complicating things, even more, are those workers who leave the home in a neighboring state and go isolate with parents or relatives in yet a different, third state. With each new state comes greater complexity.

Anderson also shares that “this increase in tax liability may also apply to business travelers. If you live in one state, but your employer sends you to assignments in ten other states during the course of the year, you may owe income tax in several of those states. It will all depend upon the threshold rules in each of the states that you travel to for work.”

A corporate entity is subject to the corporate tax regime in a country in which it is legally established. Complications arise when employees are either unaware of or make false assumptions about their eligibility to work in certain locations without fully understanding the nuances of those requirements. Some may have unexpectedly or unavoidably worked abroad for more than 183 days (the threshold used by most countries to determine if someone should be considered a resident for tax purposes) because of travel restrictions, while other expatriate assignees may have opted to return to their home location.

Many countries reacted to the unique circumstances brought on by the pandemic by relaxing or amending current rules, though as the disruption caused by COVID-19 continued, many did not or will not extend the relief. In certain cases, the employer may face potential double taxation, penalties, and interest.

When an employee performs services abroad, even for a short period, local employment laws such as working time rules, overtime and leave entitlements, or termination rights may apply. Employers risk failing to withhold the correct income tax and social charges, and although Totalization Agreements between countries can mitigate this risk, they are not universal. If the employee works in a jurisdiction where she or he does not have the right to work, both the employee and/or the employer may face penalties, fines or expulsion from the country due to violating local immigration rules and regulations.

From an immigration perspective, it’s also important to note that individuals who are on work visas for a particular destination may have restrictions that require them to perform the work at addresses specified to the issuing government and may not be able to work remotely in their host location without approval.

Practical Steps

The way we work is clearly changing, and employers are looking at a variety of ways to attract and retain the best talent while optimizing employee satisfaction and engagement. The reality is, however, for many of the reasons outlined, WFA or broad-based remote work policies won’t work for every organization, individual, or location. The company culture, for example, might favor having the majority of employees in close physical proximity, particularly if the enterprise is small. Leadership might also prefer to implement consistent approaches to work; having employees scattered in different locations might be counter to that philosophy. In addition, specific industry restrictions and regulations, plus the nature of the majority of the many of the roles within the organization may make remote work impossible.

Even if it is feasible, employers must carefully consider to what extent they want to fully implement a flexible strategy. They need to fully understand what it will mean for compensation, tax, immigration, payroll and benefit tracking and administration, and exactly what is required to remain compliant while implementing consistent standards and rules. Further, if compensation and benefits are to be adjusted, where possible, the changes must be fair—as well as transparent through open communication. Another consideration is employee morale: What will the impact be on the entire organization if the workforce is not happy with compensation adjustments or the blend of onsite and remote arrangements?

To make the best decision, sufficient research must be done upfront. In addition to working closely with tax and legal teams, companies could consider asking for employee feedback, surveying other company policies, or reviewing existing policies to identify what changes might be necessary. Management should have the opportunity to review the data, the rationale, and the proposals. Full compliance, management buy-in and open, transparent communication will be crucial to a delocation or WFA talent strategy’s success.

_______________________________________________________________________

Kristin White is Sterling Lexicon’s Senior Manager, Content and Campaign Strategy, where she brings more than 25 years of experience in global workforce mobility, marketing, editorial planning and communications to her role. Before joining Sterling Lexicon, she worked for many years at Worldwide ERC® in collaboration with cross-departmental teams and industry stakeholders to develop in-person and virtual event program, website article and print publication content, including Mobility magazine.

change
Archives, Commentary, Executive Education, Global Trade Daily

How To Measure The Effectiveness Of Changes In The Office

Leave a comment

In order to solve problems at work, you often have to make policy changes. Unfortunately, a policy change doesn’t always work out how you hoped it would.

Below are some suggestions for measuring the effectiveness of a policy change and what to do once you’ve determined whether it’s working or not.

Ask Two Simple Questions

There are two, simple questions you should ask yourself when trying to determine whether or not a policy change is effective.

The first question is, “Are we still noticing the problem?” At some point, someone saw there was a problem with the way work was being done. There was either a bottleneck in someone’s workflow, mistakes were frequently being made, or something else was happening that caused problems. Eventually, someone noticed, brought up the problem, and worked on a solution.

The question is, are you still seeing that problem or has it gone away? It’s possible that the problem has been reduced, but isn’t totally gone yet. That may require some simple tweaking instead of a complete policy overhaul. But either way, you should be able to get a quick idea for how effective the policy change was by simply looking at the task that inspired the change in the first place.

The second question is, “Has our solution caused other problems?” Just because you solved one problem doesn’t mean you didn’t accidentally create another problem. What problems are people having with the policy? How hard are those problems to deal with? Are they bigger or smaller than the problems you were trying to solve?

Digging through your work processes and talking to involved team members about these topics will help you figure out if the solution is better or worse than the cure.

Take Advantage Of Employee Surveys And Interviews

One-on-one interviews and employee surveys are good ways to encourage your employees to tell you what is slowing them down at work and what parts of their workflows need help. Be sure to emphasize that the company is looking for problems to fix in order to make everyone’s life at work easier.

Otherwise, they may be afraid to speak up in case they look like they’re complaining.

Approach the questions in such a way to get them to talk about the new policy. Ask them what is working, what isn’t working, and what problems they’re still seeing.

Take this feedback into consideration when you’re trying to determine whether you should keep, alter, or remove a policy.

Ask Managers About What Problems They’re Seeing

Managers generally have a higher-level view of what’s going on with their team. Be sure to lean on them for information that you’d otherwise miss if you focused on talking to people who may not always understand what their coworkers are doing.

Managers are probably best able to answer your questions about who’s affected positively by a given policy, who’s affected negatively, and what they think could be done to solve any other problems that have popped up.

When You Get Your Results, Take Action

Once you’ve analyzed everyone’s feedback and you’ve looked at the related KPIs and whether they have improved or declined, it’s time to act. Acting might mean scrapping the policy entirely, optimizing it to make it better solve the problem, or it may mean enhancing an already successful policy to make it even better.

_____________________________________________________________

Katie Casaday is a marketing content writer at eFileCabinet where she specializes in computer software and document management topics. She graduated from Utah State University with a BA in Global Communication. She has experience writing about B2B technology companies and besides enjoying writing, she loves nature and taking hikes with her companion, a Border Collie named Margo.

strategy executive
Archives, Global Trade Daily, Special Reports

Latest Bayer-Monsanto Trial Reminds Us that Culture and Strategy Must Stay in Sync

Leave a comment

What does culture have to do with the latest challenges at Bayer and Monsanto?

Since culture goes hand in hand with strategy, quite a lot.

But this fact — that strategy and culture are interrelated — has gotten lost in the current zeitgeist where culture is viewed as the last piece an organization puts in place, something you can just create or layer on.  An afterthought of sorts to innovation, product development, sales, marketing, teamwork, and strategy.

From the minute an organization comes to be, if not sooner, culture is there. It’s the basis on which founders and leaders express their purpose, their vision, and mission. It shapes the way decisions are made about what to produce and sell, to whom, and how.  Workplace habits and standards, behavioral consistency — even rituals and language — all flow from culture, not vice versa.

In other words, culture is a starting point for all of these things and more, beginning above all with an organization’s strategic agenda. Culture defines the who and the why behind strategy.

As companies grow and evolve, they tend to lose sight of the fact that culture and strategy go hand in hand, and forget that culture was initially embedded in everything they did. Culture gets reduced to a statement hanging on a poster in the office kitchen, conference room or front lobby. The connection between culture, strategy, decision-making, and behavior gets lost. The two are no longer in sync. That puts the company’s strategic agenda and intentions at risk.

This might seem disappointing yet harmless. Not so. Because a disconnect between culture and strategy and everything that flows from them can result in exactly the sort of conflicts and miscues we’re seeing with a range of organizations, large and small. Corporate strategy gets muddled and culture gets confused. The organization gets shackled in decision making, risk management and problem-solving. This has been a challenge with Bayer and Monsanto, as well as for GE, P&G, Boeing, a host of big retail companies, and across the healthcare sector.

As explained in my new book Strategic Teams and Development: The FieldBook for People Making Strategy Happen, culture should inform and help determine every decision leaders take and every action taken throughout the organization at every level, across borders, from executive group and staff directives to day-to-day choices and behavior within teams.

How can you make sure culture and strategy continue working hand in hand, and that culture doesn’t devolve into a string of empty buzzwords staring up from a culture deck that teams and individuals glance at without following through on?

The following four questions will help you assess whether and how your organization’s everyday thought and behavior is aligning with its culture — and make sure you’re not heading down the slippery slope of letting actions and decisions drift away from their cultural drivers:

1. Does the decision we are about to make reflect our values and culture around caring for our customers and their needs in a way that treats them as the assets that they are?

2. Will this decision contribute to our profit and sustenance in a way that remains true to our culture and to the purpose, vision and mission it has led us to shape?

3. Does this decision help us maintain our competitive advantage and differentiate us meaningfully in a way that aligns with our culture and values?

4. Is this decision in line with the ethics and values of service and integrity our culture embodies and is this meaningful stewardship for our full range of stakeholders?

To be a good corporate steward you have to have your eyes wide open for the needs of all types of stakeholders: customers, employees, investors, partners, and suppliers.

These questions intersect with one another in multiple places, forming a complex lattice. Decisions that impact competitive advantage or corporate stewardship will have implications for profit and sustenance. All choices will ultimately impact customers and the way your business meets their needs. There may be conflicts between one category and another, too.

Most companies check in on how they’re doing with culture every year or two at most. But given culture’s crucial foundational importance to strategy and all that flows and is expressed from it, much more attention is needed.

These four questions should be asked regularly and rigorously at all levels of operations and decision-making. They should form the basis for decision-making protocols and policies about everything from risk management and safety standards to financial management and personnel matters.

And if the answer to any of them is “no” it’s time to stop and rethink before taking action.

_____________________________________________________________________

Daniel Wolf is President and Co-founder of Dewar Sloan, a consulting group focused on  strategy direction, integration and execution. For more than 25 years Dewar Sloan has served hundreds of corporate, healthcare, technology and nonprofit organizations. Author of Strategic Teams and Development: The FieldBook for People Making Strategy Happen and Prepared and Resolved: The Strategic Agenda for Growth, Performance and Change, Dan has held management and governance roles at Fortune 500 companies, SME ventures and in private equity ventures. He lives in Traverse City, Michigan.