Future of Sourcing - Wage https://futureofsourcing.com/tags/wage en Attracting and Retaining Talent in the Face of Low Unemployment https://futureofsourcing.com/attracting-and-retaining-talent-in-the-face-of-low-unemployment <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Talent_Retention_624x325.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/Talent_Retention_624x325.jpg" title="Attracting and Retaining Talent in the Face of Low Unemployment" class="colorbox" rel="gallery-node-1454-a8aoA45M-ig"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Talent_Retention_624x325.jpg?itok=xSdz_5ja" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>The U.S. Department of Labor reports that employers outperformed forecasts in April by introducing over 260,000 new jobs. This growth, coupled with near-record unemployment is a double-edged sword for American organizations. Though it&rsquo;s a positive sign for the economy as a whole, low unemployment and a wealth of job openings leave business leaders in a tough position. The fight for attracting top talent is increasingly crowded and competitive. What&rsquo;s more, candidates have come to expect more in the way of compensation and additional value adds.&nbsp;</div> <div>&nbsp;</div> <div>Employers have to challenge themselves and devise a new approach to recruiting, hiring and empowering their teams. To successfully secure and hold on to <a href="https://futureofsourcing.com/all-things-talent" target="_blank">top talent</a>, they&rsquo;ll need to successfully position themselves as a unique employer, capable of providing an exceptional experience and set of incentives. &nbsp;</div> <div>&nbsp;</div> <div><strong>Increasing Wages...Or Finding Unusual Alternatives</strong></div> <div>&nbsp;</div> <div>The simplest reaction to the higher demand would be to raise wages. On a yearly basis, wages and salaries have risen <a href="https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/2019-salary-budgets-inch-upward.aspx" target="_blank">3.1 percent</a>, an anomaly in the last decade. Companies are racing to find and maintain talent by offering the best earnings in their industry. This is obviously not an option for every employer. Small and mid-sized organizations can&rsquo;t offer the same compensation packages as household names. And they shouldn&rsquo;t try to do so. More and more, today&rsquo;s professionals value authenticity in their employers. It&rsquo;s possible they&rsquo;ll appreciate a company that&rsquo;s transparent about what it&rsquo;s incapable of providing. These companies should instead emphasize what sets them apart &ndash; what their more well-heeled competitors cannot provide. Some of these incentives might include exciting project work, opportunities for advancement, the chance to take part in socially responsible initiatives, etc.</div> <div>&nbsp;</div> <div><strong>Casting a Wider Net</strong></div> <div>&nbsp;</div> <div>In 2017, the <a href="http://www.mrinetwork.com/media/304094/2017hiringsentimentstudy.pdf" target="_blank">MRINetwork Recruiter Sentiment Study</a> found that recruiters and hiring managers were both beginning to embrace candidates with non-traditional degrees. Nearly half of surveyed employers suggested they saw no difference between online degrees and traditional four-year education. &nbsp;Unemployment has only gone down and job openings have only gone up since that time. For procurement, this could mean looking for talent in outside business units, developing talent pipelines within universities or building programs to hire military veterans. Redefining requirements does not have to mean lowering expectations. The sooner organizations learn this, the sooner they can answer the evolving talent question.&nbsp;</div> <div>&nbsp;</div> <div><strong>Promoting Flexibility</strong></div> <div>&nbsp;</div> <div>A different avenue is to engage individuals who may have dropped out of the labor market with opportunities like <a href="https://futureofsourcing.com/job-burnout" target="_blank">flexible work arrangements</a> or career resource services. Flexibility has rapidly jumped up the list of worker demands. Providing flexible opportunities &ndash; the chance to work remotely, design schedules or develop unique roles, for example &ndash; will undoubtedly help employers stand out in the hunt for leading talent. Organizations will also need to develop a more flexible approach to the way they organize and engage with their internal teams. A blended workforce with a mix of contingent and full-time resources could provide procurement teams with the support they need to address busy periods without seeing their payrolls balloon out of control.</div> <div>&nbsp;</div> <div>In summary, this high demand for labor is continuing to force employers to decide on how to balance needs with function as job seekers take advantage of a tight labor market. Workers are now passively and actively searching for better job opportunities even if they are currently employed, leading to volatile labor workforces. This instability has been a reason for the higher turnover rates that employers have recently seen. As employers adapt to the current market to recruit, retain and engage their employees, they must consider how the market will change and explore potential options to stay ahead of the competition.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/talent-retention" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Retention</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/future-of-work" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Work</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/contingent-workforce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Contingent Workforce</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-acquisition" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Acquisition</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/wage" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Wage</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Attracting and Retaining Talent in the Face of Low Unemployment - Future of Sourcing" addthis:url="https://futureofsourcing.com/attracting-and-retaining-talent-in-the-face-of-low-unemployment"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 29 May 2019 20:30:07 +0000 Michael Vu 1454 at https://futureofsourcing.com https://futureofsourcing.com/attracting-and-retaining-talent-in-the-face-of-low-unemployment#comments Changes to Salaried Employees in New York and California https://futureofsourcing.com/changes-to-salaried-employees-in-new-york-and-california <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Changes_to_wages_624x325.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/Changes_to_wages_624x325.jpg" title="Changes to Salaried Employees in New York and California" class="colorbox" rel="gallery-node-1336-a8aoA45M-ig"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Changes_to_wages_624x325.jpg?itok=8CUE_qgq" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>In 2017, the Department of Labor (DOL) scrapped U.S.-wide plans to increase the salary threshold for exempt employees following challenges from multiple states. The DOL has continued to postpone these plans, however, the states of California and New York have elected to raise their own exempt salary threshold for 2019, which means that some of your workers may be eligible for overtime pay.&nbsp;</div> <div>&nbsp;</div> <div>The changes, which go into effect on December 31, 2018, in New York and on January 1, 2019, in California, are as follows:&nbsp;</div> <div>&nbsp;</div> <div>New York:&nbsp;</div> <ul> <li>In New York state, increase the salary exempt threshold from $40,560 to $43,264&nbsp;</li> <li>In Nassau, Suffolk and Westchester counties, increase the salary exempt threshold from $42,900 to $46,800&nbsp;</li> <li>In New York City, increase the salary exempt threshold from $50,700 to 58,500&nbsp;</li> </ul> <div>California: &nbsp;</div> <ul> <li>Increase the salary exempt threshold from $45,760 to $49,920&nbsp;</li> <li>Increase the IT exemption from $90,790.07 to $94,603.25 (or $45.41 hourly rate)&nbsp;</li> </ul> <div><strong>Who will the changes impact?&nbsp;</strong></div> <div>&nbsp;</div> <div>If you have workers in these states that are currently overtime exempt and you pay salaries less than the amounts above, these changes apply to you. As a next step, you&rsquo;ll need to restructure your compensation plan or start paying overtime. We know that for many roles, including recruitment, it&rsquo;s common to pay a worker a low base rate and then incentivize sales behavior through commissions. While it&rsquo;s still possible to pay workers through commission after the increases are implemented, you may need to consider increasing workers&rsquo; salaries to avoid paying overtime.&nbsp;</div> <div> &nbsp;</div> <div>Below are some changes that you may want to consider for your salaried employees:&nbsp;</div> <ul> <li>Overtime exempt (Option 1) &ndash; Increase workers&rsquo; salaries to the amounts above and pay commissions and bonuses on top. You are allowed to reduce workers&rsquo; commissions and bonus structures, however, we strongly suggest that any issuing of new contracts with new changes has the correct language and is updated as required. &nbsp;</li> <li>Overtime exempt (Option 2) &ndash; If your workers are paid through a mix of both salary and commissions, you may be able to establish a program for a guaranteed draw against commissions. In this way, the draw on commissions would generally count towards the minimum salary threshold. For more information about how to accomplish this, please visit the commissions <a href="https://labor.ny.gov/legal/counsel/pdf/payment-of-commissions-frequently-asked-questions.pdf" target="_blank">FAQ page on the New York State DOL website</a>.&nbsp;</li> <li>Pay Overtime &ndash; You can maintain workers at their current salaries and convert to an hourly rate. Workers will be required to submit timesheets and receive overtime as required in the state of employmentYou&rsquo;ll want to consider building your figures correctly to take into account public holidays, PTO and holiday pay, and how this flows through to the rate.&nbsp;</li> </ul> <div><strong>Points to Remember&nbsp;</strong></div> <ul> <li>A worker can only have 10 percent of their &ldquo;base salary&rdquo; be commissions. This 10 percent cannot be withheld if the worker doesn&rsquo;t meet targets and will have to be paid regardless.&nbsp;</li> <li>There is <a href="https://www.dol.gov/whd/overtime/fs17f_outsidesales.pdf" target="_blank">no salary threshold</a>  for outside sales employees. These are employees with primary duties of making sales and who are customarily and regularly engaged away from the place of business. If your business development and sales staff do not work from a central location they may be exempt from the upcoming changes.&nbsp;</li> <li>It is advised that you have a strong plan of action and work with your compliance/legal team to prepare for the changes. &nbsp;</li> <li>You are legally allowed to change your workers&rsquo; pay structure, but make sure you clearly communicate these changes and how they will be affected. You&rsquo;ll also need to make sure that any changes issued are 100 percent compliant with the new law. &nbsp;</li> <li>If you don&rsquo;t comply by the stipulated date you could face penalties, fines and legal action from the state and federal governments. &nbsp;</li> <li>It is important to note that although the DOL issued a notice of proposed rulemaking stipulating that they will likely increase the federal rate sometime in 2019, as of November 2018 it has not gone into effect.&nbsp;</li> </ul> <div><strong> Potential Exposure for Overtime that You Could Face&nbsp;</strong></div> <div>&nbsp;</div> <div>New York: Any hours over 40 per week would be time and a half.</div> <div>California: Any hours over eight per day are at time and a half and any hours over 12 per day are double time. If a worker is working more than six consecutive days, the seventh consecutive day is to be paid at double time.</div> <div>&nbsp;</div> <div>In short, there are some key changes that all employers in New York and California need to be aware of in 2019. It is vital that changes to the salary exempt thresholds are adhered to ensure business aren&rsquo;t hit by potentially sizeable state fines.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/human-resources-hr" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Human Resources (HR)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/wage" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Wage</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cost" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cost</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/salaries" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Salaries</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/commissions" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Commissions</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Changes to Salaried Employees in New York and California - Future of Sourcing" addthis:url="https://futureofsourcing.com/changes-to-salaried-employees-in-new-york-and-california"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/north-america" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">North America</a></div></div></div> Tue, 18 Dec 2018 19:08:26 +0000 Melanie Pol 1336 at https://futureofsourcing.com https://futureofsourcing.com/changes-to-salaried-employees-in-new-york-and-california#comments