The Great Resignation Vs. The Great Reshuffle
Groundswell CEO Jake Wood hosted a LinkedIn Audio conversation with The Muse founder Kathryn Minshew talking about the latest in The Great Resignation. The Muse is a market-leading online job portal that compiles detailed profiles of companies looking for top talent. With over 68 million people who use the site every single month, it has long been the go-to location for talent seeking a meaningful relationship with their employers. Below you’ll find a transcript of their conversation.
Hi Kathryn, it is so nice to have you here. Can you tell us more about The Muse?
Thank you Jake, very excited with our discussion. Well, I have been kind of at the intersection of values based work, changing generational trends. And I just ask these questions, do you find work you love as a business? How do you attract people who are actually going to be happy in the jobs and the culture that you have? I’ve been in this space for a little over 10 years, which is just wild. I feel like it’s been a fascinating last couple of years.
At The Muse we are aiming to help individuals find a career that matches their unique preferences, values and priorities.
We have 68 million people who use the site every single month, a lot of Gen Z and Millennial candidates in particular, but we’re not limited by age. So people are searching for jobs based on certain benefits, like paid parental leave or tuition reimbursement. They can also look for jobs and companies that have a female founder, veteran founded, black founded— a lot of different leadership attributes. We’re constantly asking individuals, what are they looking for? We have hundreds of companies we work with, from Apple, to Goldman Sachs to Enterprise rent-a-car, and a bunch of small businesses as well. We are also asking these companies what are they offering? What do they think that they need to do to attract employees? It’s a marketplace, and I just love this space. I love seeing it evolve, particularly in the last six to eight months, as we’ve been dealing with The Great Resignation.
Everyone is talking about The Great Resignation, and some people have no idea what that means. On the most fundamental level, people are expressing their dissatisfaction with their jobs. Many people are quitting their employment and not returning to the labor force. I believe there is a lot lurking beneath the surface. And you’re starting to see some of this come to light, as well as how certain leaders are beginning to reframe it. Some refer to it as The Great Migration, while others refer to it as The Great Reshuffle. What is going on, in your opinion?
Well, I prefer the term, The Great Reshuffle or The Great Rethink, because it’s not just that people are quitting, but people are re-evaluating their priorities. They are using this opportunity to make career moves, some for better salary, some for a career that treats them better, or a job that is more aligned with their values, purpose, and mission. To put it in context, you mentioned the scope of the changes, and I think that it’s just helpful to note the number of people quitting is higher than we have ever seen since this data has been recorded.
There were millions of people in November who quit, and there were more job openings than at any point in history.
So it’s really interesting that we’re seeing workers have more power. I have to say that this trend has been going on for a long time, even from the early days of The Muse back in 2019 and early 2020. Right before the pandemic, I saw that. The internet just makes it a lot easier to understand what else is out there. It does that in opinions in the media, in every field, but it definitely does that in careers where people have unprecedented access to all the other jobs that they might be able to get, all the other companies that they could be working for. Candidates are getting more choosy in where they work.
Do you mean that this has been going on for a long time, even before COVID? Is it a slow-boiling trend exacerbated by COVID, but it will still be the eventual outcome?
Yes, 100%. For example, the products that we use like Netflix, it personalizes its recommendations which is a big advancement in technology over the last several years. I showed people that you should be able to get something curated for you, personalized for your preference.
The workplace on the other hand has in a lot of cases remained one size fits all— and that is changing.
I totally agree that COVID is a huge accelerant, and we’re moving faster in the direction of workers voting with their feet, and expressing preferences. But I don’t think the trend is anything new and none of the data I’m seeing indicates that it’s going anywhere.
What, in your perspective, was the main driving force? Is it the move to remote work, or the decision point people are facing as some companies demand a return to the office? Is it more of an inward introspection, driven by, to put it frankly, this brush with mortality that came with COVID? What was the trigger of this unexpected surge?
I think it’s a fool’s errand to try and pinpoint the one thing because we have seen so many of these trends, but I love that you brought up. I don’t think people are looking at this enough, the fact that we had this collective brush with death. It’s very common in a lot of movies, you’ll see a main character who is almost in a car accident, or they narrowly escaped death in some way, it reminds me of them of their mortality. And they wake up and they say, “Oh, my gosh, I’m not living life in accordance with my values, I need to make a change.”
This is so common, and yet, I think we’ve not experienced, at least in the last, several decades, as sort of society-wide reckoning with how fragile life is, what matters beyond the day to day rat race.
I really think that the shift to remote has been huge. There have been a lot of structural and societal changes that were brought all at once. But I do think that one of the biggest themes is this fact, this reckoning with people’s individual values with how they find meaning in life, and that often comes out of tragedy. But I think it’s created a sense where they want to live a life that is more aligned with what matters to them, and so they’re looking to work and workplace as a big piece of that.
Here at Groundswell, we have firsthand knowledge. We’re venture-backed, we’ve got funding, we can contribute equity, we have an amazing product with big commercial prospects, but it’s difficult to attract talent right now because it’s a war. Do you believe people are changing their priorities because they can afford to do so right now?
Yes you’re completely right. We are seeing cases where candidates are getting multiple competing offers. Salaries are obviously on the rise, a lot of companies are rethinking their benefits package. You can’t underestimate the importance of a great mission— a strong company culture. For anyone who is hiring right now, there are a lot of messages in the market right now about what candidates want.
I have a lot of data about what candidates say that they’re looking for. But what’s really interesting is, there’s not one single path, or one single rubric that every candidate is measuring a company. The opportunity and challenge of the era we’re in is the candidates have very specific individual priority lists, and they are measuring up your company or your opportunity against those lists. The reason I think that this is an opportunity is that, let’s say that you can’t provide the perks of Google, but you can really invest in learning and growth and professional development opportunities.
Whatever it is, if you can get clear about what you can offer, and you can make those promises to the market and back them up. You’ll find candidates who want what you’re offering, and you just have to be really clear about what you’re offering.
It has to be genuine, authentic, because there is a lot of punishment right now in the marketplace for companies that miss promise.
In an excerpt from Entrepreneur Magazine, a reporter was discussing a conversation he was having with a consultant. And then he says, “Companies will no longer be able to impose a one-size-fits-all approach if they wish to compete. Instead, they’ll need to tailor their interactions with their employees, just as they did with their consumers.” He’s arguing that the future of employee management will be similar to what’s happened in customer service over the last two decades. Many of these customer care activities take a one-to-one approach to customer support rather than the one-to-many strategy that was previously the only scalable way to do it. How do you feel about that? Do you agree or disagree? Is it going to have to be one-on-one? And is that scalable for companies wishing to do this at the enterprise level?
Yeah, I love that quote. I think that it’s undeniable that this is the direction we’re moving in. The path that we’re on, is it going to be fully one to one, everyone chooses their own adventure? Probably not— or at least not for a long time. But, when you look at the experience right now, it’s very uncustomary sized. I think it’s very clear that people are seeking more personal solutions, they want to be heard on their deepest needs. It doesn’t mean every single whim, but on the most core priorities of an individual, they are looking for those to be met by their workplace, and if not met, they might leave.
I like the customer service example, but I actually think B2B marketing is really interesting. No company right now, just blast every potential customer with the exact same message, the exact same. I’m not a B2B marketer, but B2B marketing folks have a lot of software, there’s data, there’s strategy. There’s an entire system for saying, different people are at different points in the process, they have different needs, so they create customized flows. The thing is, it probably feels really hard. This idea that businesses are going to create a bit more of a customized flow. But you need to do it, because it’s important to your businesses, so people will figure it out. We figured it out in B2B marketing, we figured it out in customer service, and I think unfortunately HR often gets the short end of the stick.
Everyone talks about the importance of people, but a lot of companies aren’t really set up with the employee experience as a key priority. I think that The Great Resignation is forcing that to change.
Businesses will have to figure out how to do so. Is that a viable strategy for scaling a business? On the other hand, can you afford not to?
It’s really easy for this conversation, to hang out in the extremes. Companies that treat their people like garbage are completely blind to their wants and needs. Then on the other end, companies that are just bending over backwards, contorting themselves into shapes, trying to deal with the every request of a very demanding workforce. I think that obviously, I don’t want to live in either of those extremes, I’m guessing nobody wants to.
We live in America, don’t we live in the world of extreme dialogue?
Yes that is true. Some of it starts with some basic principles. I’ve been familiar enough with you as a CEO and as a leader to know that some of these are very organic to the style that you lead. In running The Muse, every single employee who works at the Muse chose to come here, and they could have gone somewhere else. That doesn’t mean that I have to give them everything they want, obviously I can’t. But it does mean that when leadership teams approach employee relations and talent with this idea, that your people are good, and they have other options, it’s basically mutual respect.
A lot of the tools that we give companies are sort of under the hood, and the advice we give them as well, is how to listen to your people and understand. What is making your happy people happiest? What is making disgruntled or frustrated or less engaged people less happy or making them leave? It’s not about the feeling that you have to fix everything immediately. We live in an imperfect world, and that’s not a very realistic task. But it is about saying, “How do I identify the biggest things that are standing in the way of employee satisfaction and genuinely commit with real resources to working on those?” I think it’s becoming more important for employers to say, “How do I make sure that before people come here, they have a rough sense of what they’re getting?”
People will opt into all sorts of work environments willingly, but they want to do it with their eyes wide open. They want to say, “Yes, this problem matters to me so much.” The thing about the Marine Corps, people know what they’re getting there. Of course, there’s always surprises, I don’t mean it like that. But broadly speaking, there is a sense, and please correct me if I’m wrong, but I think there’s a pretty clear sense that this is what you’re signing up for. I think that most leaders, if they were pretty transparent about what you’re signing up for by joining our company, would find that their people are actually happier than you know.
The worst thing is when people feel like they have been misled in the hiring process.
That is a brilliant point. You’re completely correct; one of my favorite recruiting ads was run by the Marine Corps before I joined, I believe in the 1980s. It’s an old poster featuring a drill instructor glowering at a recruit with an evil look, and the poster’s title is “We didn’t promise you a rose garden.” They were quite clear about what you should expect, but I believe you’re correct. I believe that all too frequently, CEOs recruit for resumes or pedigree rather than for the type of individual they want to join the team. It’s a marketplace for how companies treat their employees rather than the types of jobs they’re promoting. Is that accurate?
Yes it’s definitely one of the things that we’re focused on. We’ve seen this again, and again, some people want work environments that are one way, some people want them differently. My favorite metaphor is dating, right? Because there’s no such thing as the best people to marry in your city. I don’t think there’s such a thing as the best companies to work for. Best for who it really is, on what you want, what your values are, what sort of work environment you’re seeking out. Some people want a lot of stability, consistency, low velocity of change, and things are very predictable.
Discussions take place over long periods of time, with tons of input from all across the organization, and then a decision is made and rarely changed. Other people drive them insane, they want fast change experiments. I think when you have people who are frustrated, frankly, sometimes there is a real problem in the workplace and that is something that is very, very important to keep in the conversation. But sometimes there’s a real mismatch between the type of work environment someone is looking for, and the type of work environment that they’ve found.
That’s why companies are putting a lot more of their work environment, their values, their culture out there. It’s scary for companies to be more honest, because every HR leader I know is working with folks at their company but should only say the good things. I’m not necessarily saying that companies need to wave every bit of dirty laundry out there. Let’s say that you are a traditional company that hasn’t been trying to become more innovative, but is also dealing with a kind of slower moving legacy culture.
We found that it’s actually much more effective to tell a lot of people,”Hey, our leadership is committed to becoming more innovative, we are doing these things. We also are, you know, dealing with some of these legacy systems, but we’re all working together to move in this direction that is going to yield,” If that’s the truth, that’s going to yield a much more likely match with someone who knows that that’s what they’re signing up for, and is excited about it than trying to say like, “We’re just as innovative as all these, you know, startups, and you can come here to and kind of move really fast on the latest technology”.
If that’s not true people are going to be really disengaged, which is awful, for everyone. It’s bad for the candidate, and it’s really bad for the employer, too.
“I don’t believe in good cultures and terrible cultures,” I used to say. In terms of business culture, I believe in both strong and weak cultures. There’s a great difference between good and bad, and strong and weak; one is by design, the other is unintentional. It’s been carefully constructed to achieve specific results. I believe what I’m hearing from you is that the same is true for workplaces, correct? There aren’t always good and poor work settings, but there are those that are better than others for certain people. However, the best work environments were created with certain goals in mind. Is that what you’re saying?
I think it’s a complicated issue, because you do have certain elements of sort of toxicity in companies, especially when you get into cultures that are not equitable by design. There are companies that have a culture that’s hard charging. If it could be made more equitable, the hard charging, this wouldn’t be everyone’s cup of tea, and that might be fine. For some people, it’s a kind of preference. “Yes, I want that ”, “No, I don’t”; is then layered in with a culture that is not inclusive or diverse, a culture that has issues with structural sexism or racism. Then you have both a preference, the hard charging-ness intersecting with something that is truly toxic.
I think that’s another challenge is there are some places that just have major issues. And often if I talk to an HR leader, who’s at a company, they say, “We don’t treat our employees well, and management doesn’t want to change”, “What can I do to help attract people?” There are companies that have historically not been good at equity that are making real strides now. I think it’s really hard for jobseekers to get a sense of what you’re like, but we’re in such a time of change that business leaders have relegated talent and work experience and company culture to their HR department, so that’s their job. They’re starting to wake up and say, “This has to be everyone on the executive team’s job otherwise, we are going to be in big trouble.”
Before, I was asked by a partner at a big VC firm, “Are you going to build a remote company or an in-person first company?” You are the expert on the future of work. What are your thoughts?
I will tell you what I’m seeing in the data, and then I’ll tell you how I think about it personally. So in the data, I’ll say that, when we pulled job seekers, at the very end of last year, about the most important criteria that they were considering, when looking for a new job, work life balance was number one above everything else. It is way far ahead of compensation, or anything else. Now, that doesn’t necessarily mean remote. But I think it does mean flexibility and work life balance.
How much of that is driven by the fact that if they’re looking for work right now, it’s because they’re leaving a job that doesn’t allow for that kind of flexibility? Was that a foregone conclusion because they were job seekers at the time?
We’ve surveyed The Muse’s users over time, the number of people who want flexibility is going way up. But again, it doesn’t necessarily mean that a lot of people don’t want to go back into the office consistently. In fact, 24% of our users prefer to return full time to the office.
I think that flexibility marker means that people want to have the ability to have some flexibility when needed. Workers want to be treated with respect by their employers.
Companies that are going to prioritize offices first should work with their team to figure out a policy that lets people have a bit of flexibility. The biggest chunk of our users 41% said that they prefer to go back to work part time in the office, part time remote, while 34% prefer to remain totally remote, and 24% prefer to return full time to the office. The thing that’s so interesting is, when you really dig under the surface, no company is going to be able to make everyone happy. Because back to the office, they don’t want an empty office that they can use whenever they want to go back with their team and experience the full on office experience, which a lot of people miss when working remotely.
If everyone else is in the office, they want to be on a team that is distributed first. Going back to the very first question you asked me, this is why I think The Great Reshuffle or The Great Rethink is such a better term for what we’re experiencing than The Great Resignation. Because right now, a lot of people are staying put in their jobs because they like the work, they like the manager.
And at the end of the day, most companies at least, aren’t fully decided how they’re going to navigate, remote, in person, or hybrid work set-up. We’re still in this pandemic, and there’s still a lot up in the air. Some companies have come back, and some have said they’re going to be fully remote. There’s no answer that makes everyone happy. I think leaders are going to have to think about what they believe is the right answer for their business.
What does the future hold for a 23-year-old fresh out of college? Going into a remote-only company for their first job? How does that person advance in their career?
A lot of early career employees have been put at a big disadvantage. I used to spend a pretty good amount of time, every single week, just walking around The Muse’s office, I would purposefully hang out, in the kitchen, near the Bevi machine. I would put myself in situations almost every single day, and certainly for a good amount of time, every week, where I would just be available to chat with folks. My goal was to see that new SDR sales development rep who had just joined, or talk to the account manager who had just closed a big deal and congratulate them, or ask that engineer what problem they were working on.
I wanted to create a lot of these small, informal opportunities to build connections. “Leadership’s a contact sport,” it’s a contact sport that requires those collisions. I really love that phrase. I think that it has been really hard in a virtual world. We use a tool called doughnuts at The Muse, where two people every two weeks are matched for coffee. So I get matched for these coffees with folks all over the business. I love that, but it doesn’t quite replace the in-person interaction. For the people that I work with closely, like our leadership team, I get a lot of time with them, I know them, they know me, and I’m missing them in person. But at the end of the day, I feel like our relationship is pretty deep with mostly virtual contact, and then we see each other in person every now and then.
I think it’s much harder to do that when people have weak ties in the organization or multiple levels or departments apart. There’s the flexibility, which a lot of people are focusing on virtual work. I do think we’ll see some sort of backlash among a segment of folks, there are people who like their remote all the way and they know what works for them. We have not settled on what we’re going to do post pandemic, it will likely be a hybrid approach, but I do think that some of that human connection is needed.
When you really bring people together and let them develop personal relationships outside of direct reporting structures, I think that it’s really important.
Kathryn, what are the two or three things that a company should be doing right now, if you could summarize? How do leaders take advantage of this disruptive moment for others and turn it to their benefit?
Start the process of listening to your people now. Listening to your current employees, listening to folks who are leaving. Making sure you’re doing really thoughtful exit interviews. I recommend anonymous forums, which allow people sometimes to share things with less fear of blowback, but also small group conversations.
I think it’s really important to put your employee stories as genuine, authentic truths about your company work experience as part of the recruiting process.
At The Muse, I encourage all of our recruiting processes, where we send candidates a lot of information. Obviously, there’s the job profile, but we’ll also give them a lot of time to ask questions. We encourage the entire interview team to be very transparent. We equip people with the results of our latest poll survey. We also use a tool called Culture Amp to understand how people are experiencing different things at The Muse. I never want someone to show up at The Muse and feel really surprised about what they found. I want them to have their eyes wide open when making a decision.
Companies can get really clear on their work environment, their culture, what they offer if they do this. It also includes accepting that some people will move on, but if they were an employee with good standing, make sure they know that if the next opportunity is not what they thought it would be, you’d welcome them back. In the past I was against rehiring past employees or what I call boomerang back. But you know, if they were great employees, it can actually be really valuable to have people come back who realized that the grass is not always greener elsewhere.
Featured Resources
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Modernizing Philanthropy in the Workplace: Why Investing in HR Technology Is Critical
When asked about the biggest challenges facing human resources professionals in 2022, HR exec Carla Yudhishthu noted something that’s a relatively new concept in human resources management: the importance of connecting employees to a bigger purpose at work. That “soft” HR skill, along with recruitment, retention and employee engagement, is separate from what used to be considered the core of HR work — managing the office, tracking employee data, and managing employee benefits and education. It is, however, becoming a larger and more important part of human resources, especially as people return to the office after a lengthy, enforced office timeout.
In fact, that side of HR — what Yudhishthu refers to as the “art of HR” — has taken on increasing importance, but the need for the operational side of things hasn’t diminished. If your company is still relying on HR workers to essentially do data entry and management, it’s time to look at how modern HR technology supports your entire workforce while freeing your HR department to focus on the things that really motivate and engage your employees.
What Motivates Your Workforce? (It’s Not What You Think It Is)
Common wisdom suggests that employees are motivated by better pay, higher benefits and workplace recognition and rewards. While all of those elements are important, recent research has found that the most engaged employees share some common experiences and attitudes.
1. They work for companies that provide a smooth employee experience
The easier it is for someone to do their work, the more likely they are to be satisfied with their job. Businesses with engaged employees provide them with the tools they need, not only to do their jobs, but to manage their lives in balance with their work. That includes HR software that puts the information they need at their fingertips, both figuratively and literally.
Modern HR technology features apps that allow employees to access and track their own data, so they can see at a glance how many vacation days they have, how much sick time they’ve earned, and more. They also make it easy and intuitive for workers to submit requests for time off or schedule changes, and to see the progress of their request without having to visit the HR office.
By removing friction from basic functions, good HR technology improves the employee experience and increases employee satisfaction. At the same time, it reduces the amount of time your HR department has to spend on routine tasks that can be automated.
2. They find purpose in their work
A recent McKinsey study found that 70% of the employees they surveyed want work that is meaningful — that fulfills a purpose. The top recommendation from that study was for corporations to identify and consider their impact on the world around them, and work to align their corporate social responsibility (CSR) policies with the values that are important to their employees. People who work for companies that empower them to make changes in the world around them are more likely to stay in their jobs and to recommend their company to others.
HR software that helps manage and track CSR and giving can provide a visual reminder of individual and company purpose.
3. Their jobs offer meaningful benefits
While the traditional work benefits — health insurance, paid time off and other typical work perks — are still an important draw, employees also want perks that recognize them as whole people. This includes corporate giving programs of all types, from workplace volunteer opportunities to donation match programs. Employees who work for companies that empower and support them in giving back to the community feel a stronger sense of loyalty to their employer.
HR technology allows employees to manage their own work-life balance, as well as discover and access benefits provided by the company. The combination leads to more job satisfaction, more transparent company culture and improved well-being across the company.
4. They have some flexibility and autonomy in their work
Autonomy and flexibility give workers a sense of control and ownership over their contributions to the company and its purpose. Over the past few years of working from home, many employees have found that they’re more productive and engaged when they’re allowed to make some decisions about when, where and how to approach their work.
At the same time, it’s important to maintain good communication and set clear expectations. A structured HR interface, along with clear company-wide messaging, can provide a framework that allows employees to make decisions that fit with the overall goals and needs of the entire company.
5. They want to work for a company that shares their values
One of the most effective ways for a business to align their values with their people is through creating a corporate culture that values transparency, social responsibility and participation. A workplace giving portal does more than provide an easy way for employees to participate in charitable giving. It can also provide a wealth of data to help the HR department:
Track trends in giving
Evaluate the effectiveness of the company’s corporate giving strategies
Demonstrate the company’s commitment to its values
Empower employees to support the causes important to them
Give leadership the information it needs to see if the current programs align with employee values
The Bottom Line
The right HR technology provides the tools, information and structure your company needs to attract, motivate and retain top talent in your field. Not only does it empower your workforce and provide them with transparency, it also frees up your HR professionals to use their creativity and knowledge to improve the workplace.
For more tips on building strong leadership and employees, check out our blog.
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Building Stellar Workplace Leaders: 7 Tips To Be a Good Manager
The best companies have one thing in common: good leadership. Leadership can make or break a company. All leaders aren’t managers. There are, for example, informal leaders who may have no official title or claim to direct others. So while all leaders aren’t managers, in the most exceptional companies, all managers are leaders.
The traditional view of management is confined to the basic functions of planning, organizing, directing, staffing and controlling. That may fit neatly into the comfort zone for some people, but it doesn’t fit the way businesses operate today. As the competitive environment changes and the old work rules are discarded, the role of manager is becoming a lot more flexible.
When you’re managing people in a rapidly changing and fluid world, you need more skills than ever. It’s no longer sufficient, if it ever was, to simply be the smartest person in the room. As mentioned, the best managers are great leaders. This means they have both the hard and the soft skills to get the best from their people.
Much has been written about leadership styles. But perhaps more important than any particular style are the things that great managers do every day.
What Does Good Management Look Like in Practice?
If you want to know how to be a good manager, follow these seven essential tips every day:
Manage Up
New paradigms for leadership largely turn the top-down model on its head. Good managers aren’t simply following instructions received from on high. When you cultivate good relationships with your own managers, you’ll better understand the pressures and motivations behind their decisions. When the relationship is good, managers can even offer respectful feedback. In turn, your managers can learn how to best advocate for your success.
Invest in the Next-Generation Leaders
As a manager in the current environment, you don’t have time to micromanage. You must manage to meet goals and objectives. This allows others to learn valuable skills and flex their problem-solving and leadership muscle. More importantly, you have the responsibility of creating new leaders. As a strong manager, you can rely on the people around you because you have taught them well and delegated tasks to them.
Favor Innovation Over Rinse-and-Repeat
A few decades ago, managers were focused on efficiency and productivity. This meant processes that were reliable and repeatable. Make no mistake, businesses still need a high level of efficiency. However, the companies with the most sustainable business models for the future are those that take risks. They aren’t afraid to try something new. It’s not strictly about technology. Rather, it’s about empowering people to discover the possibilities. If you aren’t innovating, you can be assured that some scrappy new startup is finding a way to do what you do, only better.
Manage From the Inside Out
You can’t manage from outside the team. The best managers aren’t afraid to get their hands dirty. This isn’t simply an improved version of managing by walking around. It’s managing by getting involved. Managers who master this skill have the opportunity to identify strengths and weaknesses in their team and to better understand their pain points. In order to do it most effectively, however, you must walk a fine line between being a team player and taking over. As a manager, it’s your job to provide the “what,” for example, the deliverables. To the extent possible, avoid telling people “how” to do their jobs.
Share Knowledge
The rapidly changing business environment means that yesterday’s education and skills quickly become obsolete. You don’t have to be an expert in every new technology or management philosophy that crops up. But you do need to understand the extent of change. When you are busy with job responsibilities and home life, it can seem impossible. Fortunately, you never need to step into a bookstore, library or classroom to learn something new. Take time out of your busy schedule to read, take an online course, follow a blog, or have lunch with a colleague in your industry or another. Then share the information you collect and teach others what you know.
Encourage Team Problem-Solving
Encourage problem-solving among your employees. It removes the pressure from you to always be the fixer. Further, it builds a critical skill that will make your company more profitable in the long run. Solicit ideas, ask for input and encourage team members to share. This has the additional benefit of helping employees think more holistically about where the business is headed and what the future challenges might be. Remember that if your team isn’t making any mistakes, they may be playing it too safe.
Pursue the Greater Good
Good managers are selfless. Certainly, they want what is best for their employees, customers, partners and the company. But the concept of the greater good extends even further. Good managers understand that their actions have consequences for the community and the world. They work to ensure that they do no harm.
What Are the Benefits of Strong Management?
When a company has strong managers, it benefits in many ways.
Attracts and Retains Better Talent
Word gets around when a company is well managed. Managers that invest in their professional growth mentor others around them and have no trouble attracting good employee candidates, while also being able to retain current employees.
Sustains Growth Into the Future
Employees are more engaged with good management. They’re better able to ensure that the company is positioned for long-term growth and able to outperform the competition.
Builds Credibility for the Brand
A strong managerial base provides stability for the company. It fortifies the values and builds products and services that promote the brand and enhance the company’s reputation.
Becomes a Better Corporate Citizen
Managers create an environment where all employees think beyond the walls of the company toward the partnerships they have created, the customers they serve and the broader business community. Corporate giving programs, for example, are one of the ways to practice good corporate citizenship.
One way to include charitable giving as a corporate value is with a charitable giving program. You can match employee contributions or support employee volunteer efforts. Groundswell automates charitable giving and makes it an easily administered part of your employee benefits package.
Good Management Means Change
Management has evolved. The requirements for how to be a good manager have less to do with control and more to do with how well managers can inspire others to perform at the highest levels. These managers are adept at handling a diversity of ideas, opinions and approaches to getting the work done. They freely share their knowledge and help others to be the best version of themselves. These are the managers that will sustain the best companies in the future.
If you’re interested in a corporate giving program that will capture the hearts of your employees, Groundswell is the way to go. We make corporate giving easy. Find out how you can get a leg up on the Talent War. Contact us for more information.
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Why Are Employee Benefits So Important? Here’s What You Should Know
No one disputes the importance of employee benefits. Employee benefits matter because they demonstrate how much the company cares about and appreciates its employees. Benefits support an employee’s health and well-being, their loved ones and even their financial literacy.
Although health care benefits top the list of the most desired, there are other perks that companies can offer that employees really want. Why are employee benefits important? They increasingly reflect changing employee priorities and the things that are most important in their lives.
According to Deloitte, salary is less important to Gen Z than to other generations. However, researchers found that just 20% of Gen Z would work for a company that did not share their values. That may be a tall order for many companies. But it doesn’t have to be so complicated.
Benefits That Actually Matter
Gen Z and millennials are looking for companies that go beyond the absolute minimum. That doesn’t mean beer-and-pizza Fridays, however. So what does it mean? For companies that want to attract the best and brightest, it means you may need to look at benefits through an entirely different lens.
Companies aren’t limited to a small selection of benefits. In addition to the ubiquitous health insurance, there are several categories of perks that will enhance your benefits package. Most of all, it’s about making responsible choices that keep in mind the communities you serve.
5 Advantages of a Great Employee Benefits Package
But first, what are the advantages of a great employee benefits package? We know that benefits matter to employees. Benefits flow to the company as well. For example, you will be better positioned to:
1. Attract and Retain Top Talent
When you value your employees, it shows in how you treat them. It’s not simply about the number of benefits, but the values that these benefits reflect.
2. Support Holistic Wellness
Employees that are mentally, physically and financially sound are better able to perform at top levels. They bring their whole selves to work each day.
3. Increase Productivity
When employees are treated well, they want to be more productive in their roles. They find ways to do more with less and they put in more time during the day.
4. Boost Engagement and Morale
Of course, employees want to be paid a fair wage. But they also want recognition and appreciation. A good benefits package signals that they are respected and that what matters to them matters to the company.
5. Improve Your Image
Good corporate citizenry along with happy employees is a combination that is unbeatable when it comes to building brand equity. Further, research says that when you treat people well, it’s reflected in how they treat customers.
Different Types of Employee Benefits
When you want to enhance your benefits package, there are many options. The benefits described below are not mandatory. Some, however, are considered standard and without them it would be difficult to attract the best employees.
Here are some of the most popular categories of benefits:
Health Care
In addition to routine medical care, health care benefits may also include dental, vision and hospitalization. Many companies offer accounts that allow employees to put aside money for health care expenses that are not covered elsewhere. These include flexible spending accounts (FSA), health savings accounts (HSA) and health reimbursement accounts (HSA). The main differences between them are who contributes — employees, employers or both — and whether or not the funds roll over from year to year.
Wellness
A subset of health care, wellness benefits include everything from on-site workout facilities and yoga classes to gym memberships and smoking cessation clinics. In addition, there are paid fitness apps and other wellness tools available online.
Work-Life
Work-life is a broad category that may overlap with some of the other groupings listed here. This benefit includes the types of perks that make it easier for working people to take paid time off to enjoy sufficient rest or tend to personal responsibilities. They include such things as vacation days, maternity and paternity leave, time off for caregiver responsibilities and, in more recent years, flexible scheduling and work-from-home opportunities.
Paid Sick Leave
While there isn’t a sick leave policy for short-term illnesses on a federal level, some states — California and New York are two — mandate paid leave for employees. Employees who lack sick leave are more likely to go to work, a major factor in the spread of infectious diseases like COVID-19, according to public health officials.
Another benefit that has become increasingly popular are “mental health days.” This may be included as part of sick days or may be separate.
Financial Wellness
According to a recent study, employees spend 25% of their workweek dealing with financial issues. These types of benefits have also experienced a surge in popularity. Bank of America reported that in 2021, 46% of employers included some form of financial wellness benefit in their employee offerings. The types of programs are wide and varied and may include retirement planning, insurance, investing, financial literacy, budgeting and tax planning.
Retirement Plans
For most Gen Zers and millennials, the defined benefit retirement plan does not exist. Of course, employers don’t have to be involved. But when employees don’t plan properly it contributes significantly to stress levels. Employers can help with 401K plans even if they don’t offer matching contributions. In addition to the aforementioned, there are planning tools, workshops and education. They can also support retirement transitions, for example, with flexible scheduling or reduced hours.
Professional Development
Well-trained employees are able to contribute to the company in significant ways. In addition to learning new skills, they are versed in recent trends and emerging opportunities in the industry.
Training is easier than ever before with the latest publications and options for online learning and podcasts right at your fingertips. Employers can offer tuition reimbursement, company-sponsored workshops and classes, and time off to pursue continuing education classes at a university or trade school.
Commuter Stipends
Companies who care about the environment may offer an incentive to employees to take public transportation, carpool, ride bikes or walk to work. This incentive can reduce the cost of a bus ticket or provide a little extra padding in the budget each month.
Charitable Giving and Volunteerism
This is a benefit that appeals directly to employees who are looking for companies that are good corporate citizens. The benefits include, for example, matching all or a portion of charitable donations and providing time off for volunteering. Some companies sponsor a school, a local nonprofit or other charitable organization and may offer employees the opportunity to volunteer — or even manage a project — with pay.
Offer Benefits That Engage and Retain
Companies are becoming increasingly creative in the benefits they offer. The above list is not all-inclusive. However, these benefits are among the top contenders when it comes to engaging and retaining your workforce.
Why consider a charitable giving program? It allows you to be a good corporate citizen while at the same time giving employees something that’s important to them. Not everyone is interested in yoga classes or budgeting apps. But most employees have a favorite charity and the desire to do their part.
If you’re interested in a charitable giving program as part of your benefits package, contact Groundswell today. Benefits don’t have to be complicated or expensive. Employees appreciate companies that value the things that are most important to them.
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Donation Match Programs for Charitable Giving: How It Works and How To Set One Up
Donation matching is a form of corporate giving that effectively doubles employees’ contributions to causes that matter to them. The premise is simple: When an employee makes a financial donation to a charity, the company contributes a matching amount, effectively doubling the donation amount.
What Are the Benefits of Donation Matching?
The benefit of match programs for nonprofits and charities is obvious — they get double the donations for the amount of fundraising work they do. But there are also benefits for the employees and for the company.
For corporations, donation matching is an effective, efficient way of engaging in corporate philanthropy. The company can establish guidelines for the type of organizations it will support but otherwise allow their giving to be led by employees. This type of employee-centered giving:
Engages workers
Makes them feel more empowered
Improves employee morale
Increases employee loyalty and “team spirit”
In addition, there are benefits for the wider community, as noted in a recent research paper on corporate giving: Because employees are often closer to the community, they have a deeper view of organizations that are doing the most effective and beneficial work within that community.
Finally, donation matching is an easy, structured way for a corporation to engage in corporate social responsibility (CSR). Match programs allow companies to build relationships with local organizations that are important to their employees, reaping the goodwill benefit that goes along with supporting good works in the community.
How Traditional Donation Match Programs Work
While there are slight variations, most traditional donation matching programs follow these basic steps:
The employee makes a donation to an eligible organization (more on that later).
They fill out a form, either on paper or electronically, that includes the details of their donation and requests that the company match their donation.
The company reviews the request.
If the request is approved, the company sends a check for a matching amount.
As you can see, this involves a lot of work — and control — on the part of the employer and their HR office. It also creates a number of barriers to giving:
Employees can only donate to organizations chosen by the employer.
They must fill out forms and submit them. Each year, as much as $7 billion in matching donation funds go unused, largely because employees forget to ask for the match.
Charities must wait for the second part of the donation, which also effectively doubles their bookkeeping burden.
Finally, some employees choose not to submit their donations for a match because they don’t want to reveal the causes they support to their employers.
Groundswell Has Reimagined Donation Matching
Groundswell has totally reimagined the way that donation matching programs work. In the Groundswell model, employees have complete control over their own giving and the causes they support. Plus, the charitable organization gets the full amount of the donation all at once, and the HR department is freed up to focus on supporting staff in other important ways.
Here’s how donation matching works the Groundswell way:
Groundswell creates a Donor Advised Fund for each employee.
The company can include tax-free contributions to the employee’s DAF as part of their total compensation package.
The employee can allocate a portion of their pay to their DAF, with rules-based matching opportunities for the company.
Employees distribute the funds in their DAF to the causes that matter to them, when and how they see fit.
Charities receive the funds when and how the employee decides to make donations.
Employees can track their funds, make investments, and access all the tools they need to receive the most benefit from their philanthropy.
That’s it. By removing the friction from the process, Groundswell empowers employees to give more to the causes they truly care about in a way that provides maximum benefit for themselves, their employers and the causes they support.
How To Start a Donation Matching Program
These are the key steps for starting a donation matching program at your company.
Identify your purpose and set reasonable goals. This step is often overlooked but is vital to creating a program that aligns with your company’s overall CSR strategy.
Set a budget for your corporate giving.
Define the guidelines for your program.
Establish the process for submitting, approving and distributing matching gifts.
Publicize the program to employees, charities and the community.
Typical Donation Match Guidelines
A traditional donation match program requires a lot of groundwork in advance of deploying. Groundswell simplifies the entire process, and our team will be there to help you establish sensible rules for eligibility and donation funding.
Managing It All
Managing a matching gift program can be time-consuming for the HR office, but there are ways to make it easier and more transparent for both HR and the employees. Our mobile-first app puts all the information and tools for donor-advised giving into the hands of each employee, allowing them to manage and track the benefits of their giving. Reach out to our team to learn how Groundswell can help you build and deploy an effective, engaging donation match program for your company.