Quick Hits - February 12, 2020 - American Society of Employers - ASE Staff

Quick Hits - February 12, 2020

Quick HitsJudge approves EEOC to close Component 2 reporting:  EEO-1 Component 2 was ruled closed Monday. Judge Chutkan ordered the EEO-1 Component 2 pay data reporting portal closed. The closing of the portal signals the end of the required collection of pay data for 2017 and 2018 from eligible employers.  Currently EEOC is waiting for publication of the 30-day notice for the renewal of Component 1-Demographic information.  The tool is unlikely to open until mid to late March – more likely after April 1.   ASE will report when the Component 1 reporting is open.

Is there a leadership crunch?  According to a new Korn Ferry study, there is.  Nearly 70% of HR professionals aren’t confident that their organization currently has the right people to guide the company into the future, according to a new Korn Ferry survey. Worse, only 14% of them say they are confident that their organization has identified the right people internally as high-potential talent. Korn Ferry surveyed more than 1,000 talent-acquisition professionals globally in late 2019. Finding talent has been a major concern for several years as the pain from the Great Recession has faded. An earlier Korn Ferry study said that by 2030, there will be a global human talent shortage of more than 85 million people, or roughly equivalent to the population of Germany. Of those surveyed, 82% said their firms are placing greater emphasis on finding future leaders than they were five years ago.   However, nearly half, or 45%, say their organization doesn’t have any program in place. Two-thirds of respondents said they are not looking deep enough into the organization to identify those with potential. Only 10% say their programs include evaluating entry-level recruits on their potential for future leadership.  Source:  Korn Ferry 2/4/20

Social media may not be very effective recruiting tool: Social media recruiting is the least effective strategy for recruiting top talent, according to a new survey of 505 HR employees in the U.S. Clutch surveyed HR employees to better understand companies' recruiting strategies, mistakes, and plans for 2020. 24% of employees said that social media is the least effective recruiting strategy, ahead of passive recruiting (17%), and university career fairs (13%).  Kaitlyn Holbein is the CEO and founder of The Employer Brand Shop. She says that social media recruiting can be effective but only if it is targeted and well-tracked. "Many companies' careers social strategy is simply to post job opportunities," Holbein said. "However, what candidates really need is to be nurtured over time. A career decision is a big move, so many candidates need to be slowly primed using social."   Companies can target the most relevant audience with paid social media campaigns that nurture them to apply. Companies should also track if social media influenced a candidate's decision to apply, even if it wasn't their last stop before filling out an application.   Source: Clutch.com 2/4/20

Illinois harassment training requirements: The Illinois Department of Human Rights (IDHR) has issued guidance on the sexual harassment training that employers must provide by December 31, 2020, and annually thereafter. Signed into law by Governor J.B. Pritzker on August 9, 2019, Senate Bill 75 strengthens protections for employees, responsibilities for employers, and accountability for abusers—at workplaces across the state, with increased attention to hotels, casinos, and state government. In addition to the general training requirements, the new law mandates that restaurants and bars establish and disseminate a written policy on sexual harassment prevention and provide "supplemental" sexual harassment prevention training.  The IDHR was charged with developing a model sexual harassment prevention training program for use by employers. However, employers are free to develop their own sexual harassment prevention training program that equals or exceeds the minimum standards for sexual harassment prevention training outlined in Section 2-109(B) and/or Section 2-110(C) of the Illinois Human Rights Act.   The department has unveiled a new Frequently Asked Questions webpage on sexual harassment prevention training. The IDHR said that its model sexual harassment prevention training will be available in February 2020.   Source:  CCH 2/7/20

Negotiating salary with Generation Z will be tough: Younger generations tend to take a bolder approach to pay negotiations than their older colleagues, although many Gen Z workers get uncomfortable when asked about salary expectations, a new survey revealed.  Almost 60% percent of Gen Z workers and the same amount of Millennial workers have used a potential job offer to negotiate a higher salary with a current employer, according to the Randstad 2020 U.S. Compensation Insights survey.  Just 48% of Gen X workers and about 30% of Baby Boomers said they’ve done the same. Randstad surveyed more than 1,200 workers. What's more: More than half — 55% — of Gen Zers and Millennials have lied, telling a prospective employer they have another offer when they don't, to aid negotiations. About 40% of Gen Xers have done this, and one-quarter of Baby Boomers. But the survey also found 71% of Gen Z workers say they’re uncomfortable when a potential employer inquires about their salary expectations in a job interview. Half of Gen Z and Millennial workers have ghosted an employer for a better paying job somewhere else. Just 35% of Gen Xers and about one-fifth of Baby Boomers admitted to this. Source: Bizwomen 1/31/20

Employers still have ACA obligations: Under the ACA’s Employer Mandate, Applicable Large Employers (ALEs) (organizations with 50 or more full-time employees and full-time equivalent employees) are required to offer Minimum Essential Coverage (MEC) to at least 95% of their full-time workforce (and their dependents) whereby such coverage meets Minimum Value (MV) and is Affordable for the employee or be subject to Internal Revenue Code (IRC) Section 4980H penalties.   The IRS has stated that they will continue to issue Letter 226J penalty notices to employers identified as having failed to comply with the ACA’s Employer Mandate for the 2017 tax year through mid-May. Following the issuance of said letters, the agency will begin to issue Letter 226J penalty notices for the 2018 tax year. Already, the agency has begun issuing penalties to employers identified as having failed to file their annual ACA information for the 2018 tax year. Non-filing penalties are issued via Letter 5005A. Employers, who have not filed yet for 2018, that haven’t received a non-filing Letter 5005A penalty notice should be on the lookout for Letter 5699, which is usually issued beforehand and basically states that the IRS has identified that the organization in question has not filed their annual ACA reporting information.  These penalty notices are not to be confused with the late filing penalties currently being issued through Letter 972CG.  Source: The ACA Times 1/20/20

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