“State Your Case” – Raising the Federal Minimum Wage: Part II
February 26, 2021 Business, General, Human Resources, News, Social, Technology, Uncategorized 1 comment

“State Your Case” – Raising the Federal Minimum Wage: Part II

Samantha Badr

 

Welcome to Part II of “State Your Case”. In Part I, the potential benefits of raising the federal minimum wage were discussed. Now that we’ve heard the prosecution, it’s time for the defense to cross-examine the “potential benefits”. Make sure to click on this post and leave a comment to share your testimonies!

As mentioned in Part I, raising the federal minimum wage could increase employee retention and reduce turnover. However, it might be more difficult to retain employees if half of their co-workers are let go or replaced. If the government rules that businesses must pay more per worker, it could force businesses to let go of workers, or avoid hiring people altogether. The unemployment rate could increase – resulting in employees competing for fewer jobs.

A 2019 report by the Congressional Budget Office estimates that raising the minimum wage to $15 an hour by 2025 would result in the loss of approximately 1.3 million jobs. Although employees would enjoy a pay increase, businesses will have to foot the bill. Companies might be forced to outsource and move their facilities to countries with lower labor costs. Since robots can perform simple service tasks and even tasks in food preparation, health care, etc. – the demand for service-industry jobs will also plummet. Reduced employee turnover could be from employees fearing to lose their jobs in a scarce job market, rather than increased employee retention.

Another potential benefit that was previously discussed was economic growth. Even if that was the reality, an increase in federal wages could raise the cost of living in some areas. Landlords could raise rent knowing that employees will have more money to spend on housing, creating inflation. Additionally, the cost of goods and services could increase. A 2015 Purdue University study found that raising the federal minimum wage would result in higher prices for goods and/or reductions in product size – claiming that fast-food restaurants could have hamburgers that are much smaller. Another study by NBC News found that the price of a cup of coffee went up by 10-20% in California after a minimum wage increase. How could we possibly survive if our morning fuel suddenly doubled in price?

Economic growth might not be the case. Raising wages has the potential to put more money in the hands of consumers but what if their hands are still empty? The Federal Reserve Bank of Cleveland found that even if low-income workers see increases in wages, their hours and employment decline. The higher prices are, the smaller the demand for goods and the workers producing them. If people don’t have the money to spend on consumer goods – our economy, and our people, simply cannot flourish.

The defense rests.

Now that the prosecution and defense have presented their cases – what does the jury think? President Biden’s relief package might not happen tomorrow or next week, but many have speculated that it is likely to pass. Whether we agree with an increase in the federal minimum wage or not – the government wheels will keep on turning. As for the HR professionals of the world, it’s our job to make sure the pros always outweigh the cons.

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“State Your Case” – Raising the Federal Minimum Wage: Part I
February 12, 2021 Business, General, Human Resources, News, Social, Technology, Uncategorized 1 comment

“State Your Case” – Raising the Federal Minimum Wage: Part I

Samantha Badr

 

Another week – another new blog! Since we’re all in the mood for something different, I wanted to introduce a new mini-series I like to call, “State Your Case”.  In this series I will research controversial topics and state the case for each side of the argument.

In the beginning of February, President Joe Biden introduced his $1.9 trillion relief package in hopes of helping the economy recover from the pandemic. If approved, part of this package can include raising the federal minimum wage to $15 an hour, as opposed to the $7.25 rate established in July of 2009.

To understand the federal minimum wage is to understand the Fair Labor Standards Act (FSLA). According to the U.S. Department of Labor, the FSLA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Although the federal minimum wage is set at $7.25, some states can still pay their employees less, with certain exceptions. In Georgia, for example, the current state minimum wage is $5.15. Essentially, if a Georgian business owner has less than $40,000 in sales annually, or five employees or less – they can pay their employees $5.15 hourly. Otherwise, under FSLA, employers must pay a minimum of $7.25.

Currently, states can determine their minimum wage and if they want to pay the federal minimum rate or higher. For reference, I have computed the average minimum wage by states per region, based on Department of Labor statistics. For the Northeast region the average rate is $10.99. In the Southeast, the going average is $7.62, while the Southwest has an average of $9.28. As for the Western region, the average minimum wage rate is $9.80, and for the Midwest, the average is $8.42. With cost of living in mind, what benefits could arise from a $15.00 an hour federal minimum wage across the map?

For starters, increasing the federal minimum wage can increase employee retention and decrease turnover. If employees can cover the cost of living, morale increases – in turn, increasing productivity. It’s common knowledge that employees want to be compensated fairly, so if their wages increase, they are more likely to show up to work. Industries with high turnover rates will benefit the most from the increase in minimum wage.

Another benefit of a federal minimum wage increase is economic growth. An increase in income can lead to consumers spending more money, thus increasing demand and business revenue. The Economic Policy Institute claims that if minimum wage increases from $7.25 to $10.10, it could supply the economy with $22.1 billion and create about 85,000 new jobs.

With more money pumped into our economy, the need for government dependence decreases. According to a Congressional Budget Office report in 2014, increasing the minimum wage to $10.10 could lift 900,000 people out of poverty. If lower income workers earned more money, their eligibility for government benefits, decreases. The government can also reduce their spending on assistance programs by the millions, if the minimum wage increases.

Aside from employer and government benefits, increasing the federal minimum wage can also benefit the employees themselves. If wages increase, workers have more time and money to invest in their education. Working teens are less likely to finish high school or seek higher education if they have to work to help support their families. An increase in their pay can give more students the opportunity to attend college. Further, an educated workforce increases innovation – which is another benefit to employers.

Increasing the federal minimum wage simply won’t happen overnight – but if it’s approved, it could potentially benefit the economy and the general population. Are we for it, or against it? Stay tuned for next week, where potential disadvantages will be discussed. As my jury, it will be up to you to decide after both cases have been presented.

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All You Need to Know About WFH
February 1, 2021 Business, General, Human Resources, News, Social, Technology, Uncategorized 1 comment

All You Need to Know About WFH

Samantha Badr

 

Welcome back to another blog! In this installment of all things HR, I will be talking about the biggest drama of 2021 – working from home (WFH) versus working in the office.

In a time where it seems that everyone is WFH, it’s hard to picture life prior to the pandemic. According to the U.S. Bureau of Labor Statistics, in 2018, only 14% of employees worked from home five days a week. Two short years later, that number tripled. These days employees are able to work a full shift in their pajamas, but how long can this luxury last?

An employee survey conducted by leadership and communications consultancy, The Grossman Group, showed that 48% of employees working from home say they’d like to keep it that way. The consensus among family and friends is that WFH was the only positive of last year, further verifying these survey results. If staying at home wasn’t incentive enough, employees can save between $2,500 and $4,000 on travel expenses if they WFH. However, WFH is not for everyone. For some employees, it makes their job a bit harder. Collaborative projects leave employees relying heavily on technology to keep in touch with their co-workers. While some find that they can work better at home, it’s a distraction for others. If employees are too “laissez-faire” during the workday – it can leave them scrambling to finish their tasks at night, eliminating the barrier between work and home life.

Though the long-term effects of WFH are unknown, some employers are choosing to look on the bright side. In an interview with CNBC, CEO Mark Zuckerberg said that Facebook expects “up to half of their 48,000 employees to work remotely within five to ten years”. Facebook conducted an employee survey and found that many workers indicated an interest in WFH, and Zuckerberg saw the potential benefits of letting employees shift away from their offices. Even if employers are undecided on WFH, shifting to remote work can cut down on real estate costs. A typical employer can save about $11,000 a year for every person who works remotely even half of the time, according to Global Workplace Analytics. If companies can save money by downsizing their offices, they might begin to encourage employees to WFH.

Still, some employers do not agree with keeping WFH permanent. They fear that collaboration between employees suffers without face-to-face communication. Since WFH became a reality, company culture has shifted, and many companies had to find new ways to retain their employees. Another reason some employers do not back WFH is a lack of trust in their staff to complete tasks without supervision. A manager at a customer service agency might find that supervising their employees during the workday ensures they answer more phone calls.

The “Working from Home versus Working in the Office” debate has sparked discussions among employers and employees across the board. I recently had a conversation with two people that had differing opinions on WFH. I interviewed an HR professional, who said that the employees at her organization wanted to WFH, while their employer disagreed. The employees voiced their opinion to their manager, ensuring higher productivity and a safer environment if they WFH for the time being. However, their employer continues to mandate that they come into the office, even when corporate employees remain at home – leaving the rest of the staff very dissatisfied with management.

In another interview, the employees had the opposite viewpoint. They wanted to return to the office, but their boss wants them to WFH. This person had a job that required they have access to hundreds of classified documents. Unfortunately, these documents are in an archive in the main office. The employees are then forced to commute an hour just to obtain the documents they need. When they voiced their concerns to their employer, she stressed that their safety was her number one priority. Even though the staff is made up of only ten employees that have separate offices, their employer still didn’t budge.

Employers should be encouraged to let their employees find where they work best, whether it’s at the office or at home. Surveys say that employee satisfaction has increased or stayed the same since the pandemic started, so should employees have the choice to WFH? Even when offices fully re-open, a lot of employees might start asking to WFH or have partial remote work. If employers start mandating workers to come to the office, employees who are at high risk of contracting the virus may reach out to lawyers to fight their case. Regardless of the outcome – will organizations thrive, or suffer in the long run? Only time can tell.

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Our New “Normal”: COVID-19 Vaccinations in the Workplace
January 25, 2021 Business, General, Human Resources, News, Social, Technology, Uncategorized 1 comment

Our New “Normal”: COVID-19 Vaccinations in the Workplace

Samantha Badr

 

While some can’t get their hands on the COVID-19 vaccine soon enough, others are dreading it. To some it’s a magic potion that will bring us back to pre-COVID times, but to others, it’s poison. Everyone has their reason for wanting or not wanting the vaccine, creating a heated debate in many workplaces.

A new rule implemented Dec.16,2020 by the Equal Employment Opportunity Commission (EEOC), however, leaves little room for discussion. The EEOC rule maintains that employers can encourage or even require COVID-19 vaccinations. That said, any new policy must comply with workplace laws, such as Title VII of the Civil Rights Act of 1964 or the Americans with Disabilities Act (ADA).

I spoke with a few different people for their opinion and as you may have guessed – workplace, age, and gender all seem to have varying influences on peoples’ views on the COVID-19 vaccine. Perhaps more concerning is that employers themselves – including those in the health care industry – don’t have clear guidelines on how to proceed. Much like the beginning of the pandemic when many questions did not have answers, employers are scrambling to figure out whether or not they should mandate vaccinations moving forward, as the world tries to shift into slowly re-opening businesses again.

The COVID-19 vaccine comes with a laundry list of both pros and cons. For starters, peace of mind. In the healthcare field, where many hospitals were promoting a 95 percent success rate of both the Pfizer and Moderna vaccines, a doctor who got the vaccine might feel better knowing he or she is less likely to catch the virus or bring it home to his or her family after a long shift of managing countless patients. A nurse that I spoke with said many hospitals are encouraging staff members to get vaccinated since they’re working with high-risk patients on a daily basis. She told me that her hospital did not necessarily require the vaccine, but they were encouraged to receive both doses.

A waiter that I spoke to said the restaurant industry appeared to be leaving the decision up to workers. Servers and hostesses are at greater risk of contracting the virus than kitchen workers, since they are the ones dealing with customers. While business owners want to open and make their living, they also need to protect the health and safety of their staff and customers. Requiring vaccinations for their employees would greatly ensure they are, in fact, in good health. Not only that, if restaurants mandated vaccinations for employees, indoor dining could resume sooner. A massive amount of sales come from indoor dining, which was banned in New York as of mid-January. If restaurant workers were vaccinated and indoor dining was given the green light, many businesses crippled by the pandemic could potentially have their livelihoods back.

While some corporate companies have made working from home “the new normal,” many employees are desperate to head back into the office. My friend’s dad, for example, thrived on his daily routine working downtown at the office. That’s the way it was for the better part of three decades. When everything shut down in March 2020, water cooler talk, lunch outings and post-work gym sessions were no longer options. Adjusting to a new schedule all from home and the lack of social interaction caused a severe depression for him. Daily, face-to-face communication in offices boost employee morale and increase productivity across the board. People are simply tired of being confined in their home and I don’t blame them. If offices reopened only for those who were vaccinated, those who wanted to return might have more of an incentive to get the vaccines.

One of the most widely reported cons to the COVID-19 vaccine seems to be the fact that there is still a 5 percent chance that COVID-19 can be contracted. Getting vaccinated doesn’t eliminate the face mask requirement. People would still have to practice social distancing. Everyone would still bear the risk of the virus every day. Not mandating the COVID-19 vaccine could potentially pose a huge liability for employers. As many HR professionals know, employers are required to provide a safe work environment under the Occupational Safety and Health Act (OSHA). If employees get very sick, they can possibly sue their employer for violating OSHA laws. Another con of the vaccine is that it is extremely new and absolutely no long-term research has been done. Many people are holding off on getting the vaccine because there are still so many unanswered questions about the long-term effects.

In conclusion, there are always advantages and disadvantages to any new policy. COVID-19 is not a situation to take lightly, as proven in the mess that was 2020. I know that everyone can agree that they want life to resume to normal as quickly as possible, but at what cost to the employees and employers? Even if an organization mandates a vaccine, there are always going to be exceptions, such as religious and disability reasons. Employers are still bearing the cost of being creative in ensuring a safe workplace. That could mean moving staff around to places with less human contact or carrying the financial burden of requiring un-vaccinated staff to be consistently tested. On the plus side, the more vaccinations, the more businesses can reopen.

Although it seems most employers are still navigating how to handle the COVID-19 vaccine, making the right choice is crucial because COVID-19 has a way of being non-discriminatory – and that is the worst con of all.

 

For more information I have attached an article from the CDC that sheds some light on the science behind both COVID vaccines: https://www.cdc.gov/vaccines/covid-19/index.html

Also attached is an article from the EEOC that can provide insight on COVID-19 vaccinations in regards to EEO laws: https://www.eeoc.gov/wysk/what-you-should-know-about-covid-19-and-ada-rehabilitation-act-and-other-eeo-laws

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COVID-19: A Blessing or a Curse for HR?
January 15, 2021 Business, General, Human Resources, News, Social, Technology, Uncategorized 1 comment

Meet my blogger – Samantha Badr, a former student, and aspiring HR professional.  Samantha will be writing about hot HR topics for LJS HR Services.  Listen up – she’s got stuff to say!

COVID-19: A Blessing or a Curse for HR?

Samantha Badr

 

Raise your hand if you were personally victimized by 2020. I think everyone can agree that COVID-19 shook us to our core and changed the way we live, forever. Backtracking to January of 2020, I was excited for the new year and all the goals I had set. For reference, I was an adorable 27-year-old who had just obtained a Master of Science in Human Resources from Villanova University. I received my Bachelor’s in Business Administration from Pace University, where I was lucky enough to be taught by the one and only, Lisa Stamatelos.

I thought that I had polished my resume just right to appeal to companies as I was applying for jobs. Then COVID-19 became our reality. The whole world was at a standstill. Millions of jobs at stake, and many more shifting into a “new normal”. I kept applying and luckily, I landed two job interviews. Both were with Health Insurance companies. Both jobs dealt with compliance, and I would mostly be working over the phone. I thought that it was a good opportunity to build my resume, so I was excited about the interviews. In the first interview, I met with one of the founders of the company. He asked me generic interview questions and was impressed by my degree in HR. Unfortunately, he informed me that I was “overqualified” for this position because it was entry-level and I didn’t have the “background” he was looking for. I didn’t take it personally and I tried to stay motivated for my second interview.

For the second job, I met with the company’s recruiter. The same standard questions applied. She asked about my resume and former experience, and how I thought my 10-year background in the hospitality industry would benefit from a role in compliance/customer service. I left the interview confident that I would land the job. Unfortunately, it seemed that I did not have the “corporate experience” she was looking for. I felt stuck. When I graduated from Pace, it was preferred that all HR professionals have the extra knowledge/education to stand out in the job market. By 2020, it was preferred that entry-level applicants have all these years of corporate experience.

I recently had an interesting conversation with an HR professional who had the complete opposite background that I did. She has been working in payroll for about 15 years at a very successful corporation. With COVID-19 restrictions, she found herself picking up the slack for the employees laid off or employees that were out of the office because they had symptoms of the virus. She tried to apply for different HR jobs within the company but was denied because she didn’t have the education necessary for these positions. The employees in higher positions with Master’s degrees were underqualified in her opinion, and it left her very dissatisfied with her job. On paper, we both appear very different, but both have a common goal; looking for HR positions during a pandemic, but being lost in the mix of all these requirements.

Harvard Business Review published “21 HR Jobs of the Future” (linked below) in August of 2020 about HR making a comeback during these trying times. Many new roles are being developed within the HR department and that gives me hope for a better future. Out of the 21 jobs, a couple really resonated with me. Meister and Brown discussed roles such as Director of Wellbeing and how it “could provide strategic management over wellness and design services and practices to nurture the emotional, physical, mental, and spiritual health of all employees”.  This is extremely important as mental health issues are on the rise because people aren’t leaving their houses or able to have face-to-face communication on a daily basis. Meister and Brown also mentioned roles like a Strategic HR Business Continuity Director and how it would “lead the HR response team and work with the CEO, CFO, CIO, and the Facilities Director to propose how to create a safe workplace – for both onsite and remote workers”.  COVID-19 vaccines are now being administered and it is beneficial for HR professionals to work with management leaders to ensure safety for its employees across the board.

Although 2020 was a year for learning, 2021 is the year for growth. For all HR professionals in the workforce, have hope that new systems are being put in place to protect your mental and physical health for now and in the future. For the HR applicants, it is our time to stay motivated and keep applying because new jobs are being developed. Moreover, it is refreshing to hear that HR is being recognized for the work it does in every organization. Even with the growth of technology in 2020, companies are aware that they cannot survive without their employees and that their health should be a priority this upcoming year.

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Networking No-No’s
September 23, 2018 Business, General, Human Resources, News, Social, Technology, Uncategorized Comments Off on Networking No-No’s

Networking No-No’s

Lisa Stamatelos

 

I recently attended an HR meeting at an organization I have been a member of for a number of years.  There is always a good, relevant topic and I have never left without learning something valuable. There are old faces that I have gotten to know over the years and always some new members.  After the meeting a few of the newer members introduced themselves to me, we chatted briefly and exchanged business cards.  Within a few hours of returning to my office, I received “the hard sell” emails.  “Lisa, it was great meeting you.  Let’s get together so I can find out more about your business and ways I can help blah, blah, blah.” I politely responded thanking them for their emails stating I was set for now (with whatever their service is)  and looked forward to seeing them at future meetings.  That should have ended it.  But noooooooo, follow up emails were even more aggressive.  Unreal.  Later in the day, I heard from a colleague, who I suggested attend, that she too had received hard-sell emails.  She asked for my advice on how she should respond.  She took the ignore them route.  Folks, this is not the way to network and build your business. Get to know people.  Chat with them at meetings.  Connect and Social Media.  Maybe send an interesting article relating to the topic from the meeting we attended.  Establish yourself as a subject matter expert.  Build trust.  I do not usually jump in and do business with someone I just met. I believe most people feel the same.

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Resume Objective – No Thanks
June 12, 2018 Business, General, Human Resources, News, Social, Technology, Uncategorized Comments Off on Resume Objective – No Thanks

Resume Objective – No Thanks

Lisa Stamatelos

 

Received this today:

“I am looking for a long-term job that I could grow with that has great compensation and benefits. With my experience and ambition, I believe I’d be a great candidate for the positions I apply for. ”

Let’s put aside the lower case “i” in the word “I’d.” WTH in this objective statement tells me anything about why I should hire you? What sets you apart from a gazillion other applicants? SMH. I know there are HR folks who like an objective statement, I think it is a total waste of resume space.

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A “B” is an “F” in the Real World
May 28, 2018 Business, General, Human Resources, News, Social, Technology, Uncategorized Comments Off on A “B” is an “F” in the Real World

A “B” is an “F” in the Real World

Lisa Stamatelos

 

I recently had a discussion with a client about Interns transitioning from college to their first job. She shared with me the shock that is often experienced when the newly hired receive some critical feedback on their first work projects.  She gave the example of an Excel worksheet.  In college turning in a spreadsheet that is 85% correct will get a “B.”  On the job it gets an “F.”  After graduation, it is important to remember that now it is expected that you know things.  You are no longer in the learning phase.  That is not to say that employers expect you to start on the first day knowing everything about the job.  However, it is expected that you have the skill set that commensurates with your degree. Attention to detail is key. Check and recheck your work prior to sending it off to your boss.

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New to an Office or Company? Here’s What Not to Do When You’re the New Kid on the Block.
June 24, 2013 Business, General, Human Resources, News, Social, Technology, Uncategorized No comments yet

New to an Office or Company? Here’s What Not to Do When You’re the New Kid on the Block.

 

Yorktown Heights Human Resources Expert Lisa J. Stamatelos’ Advice for Navigating a New Office – By Ben Brody

Read Full Article Here…

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