On March 11, 2021, the U.S. Department of Labor (DOL) announced a proposal to rescind the independent contractor final rule. The DOL’s Independent Contractor rule was published on Jan. 7, 2021 and is scheduled to become effective on May 7, 2021. The DOL’s position is that adopting the rule would significantly weaken worker protections under the Fair Labor Standards Act (FLSA).
Although the final rule’s effective date has technically not yet been canceled, this proposal signals the DOL’s intention to roll back the worker classification test established by the rule at the end of President Donald Trump’s administration.
As a result, employers should continue to monitor DOL communications on this topic for updates regarding worker classification obligations.
Importance of Worker Classification
Whether a worker is covered by a particular law or is entitled to receive a particular benefit often depends on whether the worker is an employee or an independent contractor. In general, employment laws, labor laws and related tax laws do not apply to independent contractors.
Misclassifying employees has become an increasing concern for governments, courts and regulatory agencies. Employers that misclassify employees can be liable for expensive fines and litigation if a worker should have been classified as an employee and did not receive a benefit or protection he or she was entitled to receive by law.
However, classifying workers as either employees or independent contractors is not always a simple or straightforward task. There is no single standard or test that applies to every situation where an employer will need to determine whether a worker is an employee who is protected by a particular law. As a result, courts and enforcement agencies have to rely on a variety of case law and regulatory guidance that change depending on the issue that brings the worker classification issue into question.
Commonly used tests for worker classification include:
The Common Law Agency Test: The common law agency test assumes that, unless there is a definition for “employee,” “employer” and “scope of employment,” these terms are best understood in the context of the common law principles of agency. These principles, addressed by courts over time, focus on whether the employer has the right to control the work and how it is done. This test is generally used for purposes of worker classification under the Copyright Act, Employee Retirement Income Security Act (ERISA) and National Labor Relations Act (NLRA).
The Economic Realities Test: The economic realities test requires a thorough analysis of the relationship between the parties, and evaluates the level of financial dependency that the worker has on an employer. Generally, under the economic realities test, the more an individual depends on an employer, the more likely it is that the individual should be categorized as an employee. The courts have favored this test when the term “employee” is used in a very broad sense—for example, in issues related to the Fair Labor Standards Act (FLSA) and the FMLA.
The Hybrid Test: As the name suggests, the hybrid test combines elements of the common law agency and the economic realities tests. Though some lower courts have used this test to deal with issues related to Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA) and the ADA, the Supreme Court has criticized this approach and is leaning more toward using the common law test for similar issues.
The IRS Test: The IRS has also developed its own test regarding whether an employment relationship exists between a worker and an employer, for purposes of determining tax liability of employers and individuals. The IRS test is sometimes referred to as the control test, and it expands and classifies factors from the common law test into three categories—a sphere of behavioral control, a sphere of financial control and factors that determine the type of relationship that exists between parties.
Regardless of which test is used and the context of the particular situation, employers should remember that employment relationships are dynamic. Changes that occur over time in the relationship between the company and a worker may impact how workers should be classified. For this reason, employers should evaluate whether their independent contractors are adequately classified on a regular basis.
The DOL’s Independent Contractor Rule
The 2021 Final Rule
The DOL’s independent contractor classification final rule on Jan. 7, 2021. As published, the final rule was scheduled to become effective March 8, 2021.
This rule reaffirmed the use of the economic realities test for FLSA compliance. In issuing the rule, the DOL intended to provide a clear articulation of the economic realities test and its component factors, which it expected to lead to increased precision and predictability in the economic reality test’s application.
The factors used in the economic reality test are:
The nature and degree of control over the work;
The worker’s opportunity for profit or loss based on initiative and/or investment;
The amount of skill required for the work;
The degree of permanence of the working relationship between the worker and the potential employer; and
Whether the work is part of an integrated unit of production.
While the traditional approach of this test gives similar importance to all five factors, the DOL rule favored the use of the first two factors—also called the “core factors”—as determinative or controlling in the outcome. The rule also considered the remaining three factors as additional guidance. However, the final rule also stated that actual practice, rather than contractual or theoretical agreements, is more relevant during the worker classification process.
Commentators on this rule have suggested that giving greater weight to the core factors would likely result in more workers being classified as independent contractors rather than employees. Of particular importance is the impact some expect this rule will have on the gig economy and their access to employee benefits and protections.
The Regulatory Freeze
Shortly after his inauguration, President Joe Biden issued a regulatory freeze on this and other regulations adopted during the last few weeks of the Trump administration.
This freeze imposed a delay for the enforcement or effective date of agency rules and guidance to allow government officials sufficient time to determine whether these rules and guidance align with the policies of the Biden administration. This type of regulatory freeze is not uncommon when there is a change of political party affiliation at the highest levels of government.
The Delay and Proposal to Rescind
As a result of the regulatory freeze, on March 4, 2021, the DOL delayed the final rule’s effective date from March 8 to May 7, 2021.
A week later, on March 11, 2021, the DOL announced a proposal to rescind the DOL’s independent contractor rule. With the proposal, the DOL stated its opinion that implementing the rule would significantly weaken worker protections under the FLSA. Specifically, the DOL found that using this modified version of the economic reality test would narrow or minimize the importance of factors historically relevant in a comprehensive approach to evaluating whether an employment relationship exists.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Office Building Employers Information for COVID-19
Office building employers, owners and managers can take proactive measures to create a safe and healthy workplace for employees, clients and other guests. This article shares COVID-19 guidance from the Centers for Disease Control and Prevention (CDC) on COVID-19 Employer Information for Office Buildings.
How Office Building EmployersCanProtect Employees
Employers should consider the following steps to protect their employees and other building visitors, while slowing the spread of COVID-19:
Check the building for hazards associated with prolonged facility shutdown, ensure ventilation systems operate properly and increase air circulation as much as possible.
Identify where and how workers might be exposed to COVID-19 at work.
Develop hazard controls using the hierarchy of controls. Consider using a combination of engineering and administrative controls, explained further below.
Engineering Controls
Engineering controls isolate people from hazards. Consider the following example controls:
Modify seats, furniture and workstations.
Use methods to physically separate employees in the building, including work areas and common areas.
Improve building ventilation based on local environmental conditions (e.g., temperature and humidity).
Administrative Controls
Administrative controls change the way people work. Consider the following example controls:
Encourage employees who have symptoms of COVID-19 to notify their supervisor and stay home.
Stagger shifts, start times and break times to reduce the number of employees in common areas.
Post signs in parking areas and entrances that ask guests and visitors to wear cloth face coverings.
Post instructions and reminders at entrances and in other strategic places about hand hygiene, COVID-19 symptoms, and cough and sneeze etiquette.
Clean and disinfect high-touch surfaces.
Educate Employees
Employers should consider the following steps to educate employees and supervisors about how to protect themselves at work:
Develop communication and training that is easy to understand, in preferred languages spoken or read by the employees, and includes accurate and timely information. Suggested topics include signs and symptoms of infection, staying home when ill, social distancing, cloth face coverings, hand hygiene practices, and identifying and minimizing potential routes of transmission at work, at home and in the community.
Provide information and training on what actions employees should take when they are not feeling well (e.g., workplace leave policies, and local and state health department information).
Remind employees and clients that the CDC recommends wearing cloth face coverings in public settings where other social distancing measures are hard to maintain. However, wearing a cloth face covering does not replace the need to practice social distancing.
The CDC has posters available for employers to download and print, some of which are translated into different languages.
Develop Special Considerations for Elevators and Escalators
Employers should implement special considerations if their building has elevators or escalators. Consider the following proactive measures:
Encourage occupants to take stairs when possible, especially when elevator lobbies are crowded or when only going a few flights.
Designate certain stairwells or sides of stairwells as “up” and “down” to better promote social distancing.
Use floor markings in elevator lobbies and near escalator entrances to reinforce social distancing. Place decals inside the elevator to identify where passengers should stand if needed.
Use stanchions in lobbies to mark pathways to help people travel in one direction and stay 6 feet apart.
Consider limiting the number of people in an elevator and leaving steps empty between passengers on escalators.
Post signs reminding occupants to minimize surface touching. They should use an object (such as a pen cap) or their knuckle to push elevator buttons.
Consider adding supplemental air ventilation or local air treatment devices infrequently used elevator cars.
For More Information
Read the CDC’s Interim Guidance for Businesses and Employers for additional recommendations for creating new sick leave policies, and cleaning and developing employee communications to help protect employees and other building guests.
Contact us today for more COVID-19 guidance and resources to protect employees.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our clients know how much we value and appreciate their business.
Since March 2020, the Federal Motor Carrier Safety Administration (FMCSA) has provided emergency exemptions and waivers for regulations to support COVID-19 emergency relief efforts. The FMCSA has provided waivers and exemptions for hours-of-service rules, pre-employment drug testing, driving skills tests, and renewals for commercial driver’s licenses (CDLs), commercial learners’ permits (CLPs), and medical certifications. Read below to see the FMCSA Record Compliance After COVID-19.
During this time, employers that helped with national emergency efforts and used these waivers or exemptions for their drivers may not have kept up with the documentation necessary for their drivers’ files. It is important for employers to understand that, if they used any of these exemptions or waivers, it should be documented in their drivers’ files, and any paperwork or license updates should be completed as soon as possible.
Exemptions vs. Waivers
Under FMCSA emergency declarations, various exemptions and waivers can be issued. Each one has its own requirements. In general, an exemption is temporary regulatory relief from one or more of the Federal Motor Carrier Safety Regulations (FMCSRs) given to a person or class of persons who are subject to the regulations, or who intend to engage in an activity that would make them subject to the regulations. An exemption provides the person or class of persons with relief from the regulations for up to two years, but it may be renewed.
A waiver is temporary regulatory relief from one or more of the FMCSRs given to a person who is subject to the regulations or who intends to engage in an activity that would be subject to the regulations. A waiver can provide relief for up to three months, but it can continue to be extended.
The waivers under the emergency declaration by the FMCSA during COVID-19 provide relief from specific regulations or provide states with the option to permit waivers for their drivers, both of which are stated in the waiver.
Regulations Affected by Exemptions or Waivers
Parts 390-399 of the FMCSRs are the regulations that are often exempted or waived. Among these regulations are rules relating to hours of service, vehicle maintenance and inspections, and general driver qualifications. Unless otherwise noted, the following regulations are not exempted by emergency declarations:
Controlled substance and alcohol use and testing
CDL requirements
Minimum levels of financial responsibility
Hazardous materials
The FMCSA will send out a notice for exemptions or waivers to inform the public of the details concerning the exemption or waiver, what type of relief is provided and what regulations still must be followed by drivers.
FMCSA Record Compliance After COVID-19Exemption Documentation
Motor carriers who used or continue to use the exemptions should document that they are using them. One of the regulations affected by the COVID-19 exemptions is the driver qualification file requirements. Documentation for driver qualification files, such as new hire documentation or documents that need regular updating, likely has not been completed by employers. This documentation can include, but is not limited to:
New hire driver applications
Initial and yearly motor vehicle record (MVR) checks
Road testing documents
Requests for safety performance history
Medical examiner certificates
All of these documents are required for new hires, and certain documents need to be updated annually. MVRs are updated annually, and medical examiner certificates must be updated every two years (unless noted otherwise by the physician).
Employers should review their drivers’ files to determine which documents are missing for drivers who were providing direct assistance during the emergency declaration. Once the missing documents are determined, the employer should update the files with the required forms and note the date the files were brought up to compliance. The forms should also explain that the reason for the delay was because the driver used the emergency declaration exemptions. The employer should also provide evidence to prove the driver qualified for the exemption in the file.
Waiver Documentation
Some waivers that have been issued by the FMCSA have included stipulations that drivers must meet for the waivers to apply, while other waivers have not included stipulations. Some examples of waivers with stipulations are for renewals of CDLs or CLPs for drivers whose licenses expired after a certain date. States are permitted, but not required, to extend the validity of CDLs or CLPs due for renewals on or after March 1, 2020. The FMCSA determined it was best to grant the waivers, as many CDL and CLP drivers were unable to renew their licenses or medical certifications due to state licensing agencies reducing their hours of operation or closing their offices.
If a waiver with stipulations for its use was implemented, the employer should document those stipulations in the driver’s file. The recordkeeping must show that the driver qualified for the waiver. For example, if a driver did not renew their CDL, but the state permitted it and the driver was within the parameters of the waiver to do so, then the employer should document that in the driver’s file. Drivers should have their licenses renewed and update any documentation required by the FMCSRs that has been waived. If a driver was able to at any point update any information necessary, they should have done so regardless of the waiver.
Employers should document all pertinent information in their drivers’ files. All conversations with doctors or facilities that provide the services the driver was unable to obtain should be documented to show good faith efforts made by the driver and employer.
Reason for Documenting
Providing as much information for using the waiver or exemption as possible is a best practice for a motor carrier. This information will be of significant use when a Department of Transportation (DOT) audit occurs. By providing this information in drivers’ files, the DOT auditor will understand the reason for the exemption or waivr use and see that the employer made a good faith effort in trying to stay compliant.
Employers must explain the specific waiver the driver used and show how the driver qualified to use that waiver. This information should stay in drivers’ files for as long as the documentation is required to be stored. Employers should refer to the FMCSA regulations for requirements on retention for specific documents.
It is important for employers to be proactive when it comes to FMCSA documentation compliance. If employers are not keeping accurate and complete records, this could lead to significant issues during a DOT audit. By documenting now, employers will be prepared when a DOT audit occurs.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Commercial insurance carrier CNA was hit by a “sophisticated cyber-attack” that caused major havoc for certain systems, including email. Out of an abundance of caution, they contained the attack by proactively disconnecting their systems leveraging a methodical and carefully organized process. CNA is one of the biggest insurance companies in the U.S., with over 6,000 employees.
GDI Insurance Agency had a $250k+ premium account that most likely would have gone to them, but due to the system outage/failure they couldn’t get final pricing to us and lost the opportunity. Having happened leading into 4/1 (the start of a new quarter was the WORST timing for an insurance company). It’s murphy’s law, what can go wrong will (and when it does it’ll be at the worst possible time). If this happened with our agency, think of the losses they experience with other agencies as well.
CNA Insurance has been working around the clock for a week on the incident, and have just restored their enterprise email system, which is now safe. Adding additional security measures in place to protect their systems.
“The security of our data and that of our insureds’ and other stakeholders is of the utmost importance to us. Should we determine that this incident impacted our insureds’ or policyholders’ data, we’ll notify those parties directly,” the company said.
How CNA Dealt With A Sophisticated Cyber-Attack
“Out of an abundance of caution, we contained the attack we sustained by proactively disconnecting our systems from our network. We are now in the restoration stage and are bringing back our systems leveraging a methodical and carefully organized process. As highlighted here and as an example of this ongoing process, we have restored email access and you can communicate with CNA employees safely and in the normal course of business.”
10 Cyber Security Resolutions to Reduce Your Data Exposures
Sophisticated cyber-attack, threats and trends can change year over year as technology continues to advance at alarming speeds. As such, it’s critical for organizations to reassess their data protection practices at the start of each new year and make achievable cybersecurity resolutions to help protect themselves from costly breaches. The following are resolutions your company can implement to ensure you don’t become the victim of a sophisticated cyber-attack:
Provide security training—Employees are your first line of defense when it comes to cyber threats. Even the most robust and expensive data protection solutions can be compromised should an employee click a malicious link or download fraudulent software. As such, it’s critical for organizations to thoroughly train personnel on common cyber threats and how to respond.
Employees should understand the dangers of visiting harmful websites, leaving their devices unattended and oversharing personal information on social media. Your employees should also know your cybersecurity policies and know how to report suspicious activity.
Install strong antivirus software and keep it updated—Outside of training your employees on the dangers of poor cybersecurity practices, strong antivirus software is one of the best ways to protect your data. Organizations should conduct thorough research to choose software that’s best for their needs. Once installed, antivirus programs should be kept up to date.
Instill safe web browsing practices—Deceptive and malicious websites can easily infect your network, often leading to more serious cyber attacks. To protect your organization, employees should be trained on proper web usage and instructed to only interact with secured websites.
For further protection, companies should consider blocking known threats and potentially malicious webpages outright.
Create strong password policies—Ongoing password management can help prevent unauthorized attackers from compromising your organization’s password-protected information. Effective password management protects the integrity, availability and confidentiality of an organization’s passwords.
Above all, you’ll want to create a password policy that specifies all of the organization’s requirements related to password management. This policy should require employees to change their password on a regular basis, avoid using the same password for multiple accounts and use special characters in their password.
Use multi-factor authentication—While complex passwords can help deter cybercriminals, they can still be cracked. To further prevent cybercriminals from gaining access to employee accounts, multi-factor authentication is key. Multi-factor authentication adds a layer of security that allows companies to protect against compromised credentials.
Through this method, users must confirm their identity by providing extra information (e.g., a phone number, unique security code) when attempting to access corporate applications, networks and servers.
Get vulnerability assessments—The best way to evaluate your company’s data exposures is through a vulnerability assessment. Using a system of simulated attacks and stress tests, vulnerability assessments can help you uncover entry points into your system.
Following these tests, security experts compile their findings and provide recommendations for improving network and data safety.
Patch systems regularly and keep them updated—A common way cybercriminals gain entry into your system is by exploiting software vulnerabilities. To prevent this, it’s critical that you update applications, operating systems, security software and firmware on a regular basis.
Back up your data—In the event that your system is compromised, it’s important to keep backup files. Failing to do so can result in the loss of critical business or proprietary data.
Understand phishing threats and how to respond—In broad terms, phishing is a method cybercriminals use to gather personal information. In these scams, phishers send an email or direct users to fraudulent websites, asking victims to provide sensitive information.
These emails and websites are designed to look legitimate and trick individuals into providing credit card numbers, account numbers, passwords, usernames or other sensitive information.
Phishing is becoming more sophisticated by the day, and it’s more important than ever to understand the different types of attacks, how to identify them and preventive measures you can implement to keep your organization safe.
As such, it’s critical to train employees on common phishing scams and other cybersecurity concerns. Provide real-world examples during training to help them better understand what to look for.
Create an incident response plan—Most organizations have some form of data protection in place. While these protections are critical for minimizing the damages caused by a breach, they don’t provide clear action steps following an attack.
That’s where cyber incident response plans can help. While cybersecurity programs help secure an organization’s digital assets, cyber incident response plans provide clear steps for companies to follow when a cyber event occurs. Response plans allow organizations to notify impacted customers and partners quickly and efficiently, limiting financial and reputational damages.
For additional cyber risk management guidance and insurance solutions, contact us today.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
In the event that a fire occurs at your commercial property, having measures in place to slow the spread of the flames and minimize potential damages is crucial. That’s where fire doors can help. These doors are specifically designed to withstand the extreme heat of a fire for a period of time, temporarily blocking flames from traveling from one area of a building to another.
Considering that time is of the essence when it comes to keeping a fire under control, these doors can make all the difference in allowing additional building occupants to safely escape the premises and preventing property damage. Yet, National Fire Protection Association (NFPA) standards—namely, NFPA 80—emphasize that fire doors must be routinely inspected and adequately maintained in order to be effective.
Review the following guidance to learn more about how fire doors work and best practices for keeping these doors fully operational.
How Fire Doors Work
A fire door consists of multiple components—including the door, door frame, hinges, handle and additional hardware. Collectively, these parts are designed to withstand fire exposures for a set period of time, slowing the spread of flames and smoke throughout different sections of the affected property.
These doors can vary in size, materials and layout (e.g., a swinging, sliding, hinged or rolling door). These doors are typically utilized within the wall openings and stairwells of buildings. Installing fire doors in wall openings can help keep flames from spreading to additional areas on the same floor of a property. Implementing these doors in stairwells can deter a fire from traveling between different stories of a property and potentially allow additional building occupants to safely escape via the stairs. Fire doors can also provide firefighters with better access to the property overall, bolstering fire suppression efforts.
Each fire door is designed to meet the standards of its resistance rating, which represents how long the door can actually withstand fire exposures before eventually succumbing to the heat and smoke. This rating is determined through various testing procedures, and applies not only to the door, but also to its collective parts. Fire door resistance ratings can range from 20 minutes to three hours. For example, if the door can withstand fire exposures for one hour, then it will be rated as a one-hour fire door.
Fire doors are also considered in the process of establishing a property’s fire divisions. While some buildings only consist of a single fire division, a property may contain multiple fire divisions if there are measures in place to limit a fire from reaching different areas of the building. With this in mind, properties with approved fire divisions by way of fire doors in place may benefit from reduced commercial insurance rates, seeing as there is a lower risk of a fire spreading across the entirety of the building.
On the other hand, properties that remove or don’t incorporate fire doors and thus lack multiple fire divisions may encounter higher commercial insurance rates, since a fire is increasingly likely to affect the entire building and result in more severe damages.
Maintaining Fire Doors
While fire doors can certainly offer numerous advantages to a property, it’s important to note that these doors must be properly maintained to remain effective. In particular, some fire doors need to stay fully closed in order to work. Otherwise, flames and smoke will easily travel through any openings, defeating the purpose of the doors altogether.
However, fire doors that are equipped with fusible links—which are heat-activated devices designed to ensure that such doors adequately close in the presence of a fire—do not need to stay shut at all times. In these circumstances, the doors can be kept open as long as there are no obstructions (e.g., a door wedge) in the way that could potentially prevent them from closing when necessary. Keep in mind that most rolling fire doors are equipped with fusible links.
In addition to keeping fire doors closed or unobstructed, NFPA 80 also outlines the following installation, inspection and maintenance requirements:
Ensure all fire doors at your property contain a fire label and resistance rating from Underwriter Laboratories or Warnock Hersey—both of which are trusted safety certification organizations.
Only allow a competent, qualified contractor to install fire doors or make modifications to existing fire doors at your property. Modifying a fire door with the wrong components or hardware could result in the door becoming ineffective and losing its resistance rating. Also, be sure to consult the contractor about the possibility of equipping your fire doors with fusible links.
Regularly inspect fire doors for potential damages (e.g., large gaps, broken seals, loose hinges or missing screws). Further, make sure that each door can connect firmly to its latch without getting stuck on the frame before fully closing. Schedule repairs when necessary.
Have a certified professional conduct a visual inspection and—in the case of rolling doors—a drop test (a test that confirms the door works as it should and completely closes) on your property’s fire doors at least once every year. Based on the results, schedule repairs and make door replacements as needed.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our clients know how much we value and appreciate their business.
Attracting and retaining talent is often a top priority for HR departments. Given the effect the COVID-19 pandemic has had on the job market, one might imagine this task is easier than ever. Unfortunately, that’s far from the truth. There are many attraction and retention challenges amid COVID-19.
While there may be more candidates than usual, attracting quality talent and retaining top performers still remains a struggle, worsened by COVID-19 and its effects on the workplace.
This article shares some tips for attracting and retaining workers amid the COVID-19 pandemic.
Expand Hiring Pools
The COVID-19 pandemic has demonstrated how quickly teams can adapt, with some workplaces shifting entirely to telework. After months of remote-working success, many workplaces have said they will allow telework permanently even after the pandemic subsides. That’s because of the numerous advantages of remote work.
For one, these individuals won’t take up office space, saving room for others who need it. Additionally, this flexibility allows recruiters to expand hiring pools to anywhere with an internet connection. This can be a great benefit for employers that haven’t had luck finding quality talent near them.
Adapt the Workplace Layout
Amid the COVID-19 pandemic, many workers are concerned about their health and well-being while at work. By addressing these concerns, employers can bring peace of mind to employees and, in turn, attract workers who may have held reservations about their safety.
Employers can do this by adapting their workplaces to focus on worker health. This includes mandating social distancing, moving desks around, holding virtual meetings exclusively, allowing flex scheduling and offering telecommuting. At the end of the day, workplaces that demonstrate concern for employees will be the ones where individuals actually want to work. Conversely, if employees are forced to choose between their safety and their jobs, employers shouldn’t expect good retention.
Provide Meaningful Benefits
The pandemic has affected everyone in significant, yet unique, ways. While all employees may be struggling in some way, their situations aren’t the same. Employers can help lift up their workers by offering meaningful employee benefits.
Robust health care offerings may seem like an obvious one-size-fits-all solution, but sometimes voluntary benefits are actually what employees need. These include caregiving assistance, financial counseling, increased paid time off and other nontraditional perks. There are many low-cost options available and, better yet, employees can choose their benefits a la carte to meet their individual needs.
Support Well-being
Employees are going through a lot right now, and many are suffering from poor mental health. This includes feeling depressed, lonely, anxious or any other negative emotion—feelings that may be compounded if employees are working in isolation. And the fact that employees are holding onto negative feelings isn’t terribly surprising, given the devastating impacts of COVID-19.
Now is the time for employers to show employees and potential recruits that they’re willing to invest in their well-being. Potential options include comprehensive employee assistance programs, one-on-one counseling, therapy sessions and stress-reducing activities. Solutions don’t need to break the bank, either. Something as small as a weekly outdoor activity, virtual chitchat meeting or group excursion could be enough to lift employees out of their funk.
Look Internally for Talent
If an employer is struggling to fill an important role with an outside candidate, it could be that they’re looking in the wrong place. Many organizations are now focusing on upskilling current employees and retraining them for more important positions. This can be significant for a few reasons.
Firstly, outside candidates would need to be trained anyway, so upskilling a current employee wouldn’t be any more burdensome. Since they’re already familiar with the workplace and its operations, it may even be easier.
Secondly, many recruiting teams are expecting big slashes to their budgets in the wake of the COVID-19 pandemic. As such, shuffling around current employees could help save the bottom line.
Thirdly, promoting employees from within the organization shows that an employer is willing to invest in their career growth. This sentiment can go a long way in retaining top talent.
Attraction and Retention Challenges Conclusion
There are many creative ways employers can attract and retain quality workers. Amid the COVID-19 pandemic, even small gestures can go a long way to distinguish an organization from others in its industry.
Reach out today to learn more about these and other workplace strategies.
California’s Leader in Insurance and Risk Management
As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
We use cookies to optimize our website and our service.
Functional cookies
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
