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5 Strategies to Retain Your Top Employees in 2020

CorpStrat Retain Employees

Did you know that retaining your employees is more cost effective than hiring? The time and money it takes to train a new employee costs your company far more than retaining your employees. Overall, having a high employee turnover can disrupt productivity and morale, as well as your company’s bottom line.

For those looking for ways to re-engage and retain their top employees, here’s a list of 5 strategies your HR department can incorporate in 2020.

1.    Find out why people are leaving and fix it.

If your company has seen an increase in the number of employees leaving, it is important that you find the underlying cause. Finding the root cause—whether it’s about the treatment of employees or the lack of a competitive salary—and fixing the issue can make the difference in employee retention.

Information obtained from exit interviews and honest conversations with current employees can be helpful in pinpointing what the problem is and how you can solve it. In addition, being proactive and conducting engagement surveys can reveal early warning signs to help you get ahead of the problem.

2.    Give positive feedback.

The simple act of positive feedback boosts employee confidence. Encouraging the efforts of your top employees and positively reinforcing their work improves morale and builds trust. Solidifying this trust is especially important when negative and constructive feedback becomes necessary.

Establishing a program where hard work is recognized and rewarded—or even using an employee recognition software—can foster a positive feedback culture where employees feel valued for their wins and ultimately stay.

3.    Communicate your organization’s shared vision.

Communicating the company’s short- and long-term goals can make your top employees feel engaged and valued. Knowing the bigger picture helps them align their goals with the company’s, cultivating their sense of purpose and sense of loyalty to the company.

In order to start this process, you must set aside a time for a company meeting where you lay out the organization’s goals, such as where the company is going and how the company aims to get there.

4.    Conduct a compensation analysis.

Although pay isn’t as big of a priority anymore,  it is still important to offer competitive salaries. Since salaries are a reflection of how valued an employee is, a fair compensation package, with a competitive salary and benefits package, is crucial in lowering employee turnover and increasing retention rates.

The first step is to conduct an annual compensation analysis, in comparison to your competitors, to see how much you should be compensating your employees. By offering a competitive package, your top employees won’t be enticed to leave your company for another.

5.    Offer opportunities for learning and continuous education.

According to LinkedIn, 94% of employees said they would stay at a company longer if it invested in helping them learn. As such, providing opportunities through which your top employees can grow and learn new skills can help with retaining them.

Access to workshops and certifications on relevant and useful topics are two ways your current employees can improve on and learn new skills. These will naturally engage current employees, making them feel like they can continuously grow with your company.

With these 5 strategies, you and your company will be able to retain your top employees for 2020. But for a smarter, long-term retention strategy, reach out to CorpStrat and learn how we help companies likes yours attract, reward, and retain your most important asset – your people.

The Secret Behind Disneyland

Life Insurance Policy

Want to know the secret of how Walt Disney started Disneyland? After being turned down by his bank for a basic business loan, Disney turned to life insurance to finance his dream of opening a theme park. The proceeds from his life insurance policy were used to open Disneyland, “The Happiest Place on Earth.”

But how did this work? His life insurance policy basically accumulated cash value and he was able to withdraw this money as a policy loan. This accumulated value was tax-free and was used by Disney to create a tax-free income.

So, what exactly was this asset Disney used?

In today’s term, this asset is called the Indexed Universal Life Insurance (IUL). An IUL is a type of cash value life insurance policy that has both death benefits and an accumulation element. Rather than placing investments in the market where it could be lost, investments in an IUL are put into a strategy that mirrors an index like the S&P 500, allowing the participant to realize most of the gains in the market. These gains are then locked in to protect against potential losses.

Basically, this allows for people to invest in the market without taking losses, which makes IULs appealing to professionals and business owners. Another benefit is that it allows cash value within the policy to grow tax-free. Since IULs are funded with post-tax dollars, clients can withdraw money tax-free and, essentially, have a tax-free income at a future date.

Compared to IRA or a 401(k), IULs are more flexible. There is no limit on how much money can be added annually, as long as the added cash doesn’t create a Modified Endowment Contract (MEC), which is taxable. There are also no restrictions on when the money can be taken out, unlike the IRA.

As a life insurance policy, IULs provide financial security to the family in the event of death of disability. In an event of the policyholder’s death, the death benefits are received tax-free in a lump sum by the beneficiary.

IULs are perfect for those who want to experience the gains of the market without facing the losses. They are perfect comprehensive and flexible wealth building options that can be tailored to each person’s financial plan.

Want to know more about IULs and other life insurance policies? Contact CorpStrat to learn more about how our 21st Century strategies can revolutionize your life and business.

21st Century HR Strategies

21st HR Strategies

Back in the 20th century, there was a clear difference between work and life. What you did to earn income and what interested you weren’t always associated together.

But, today, life is pushing back! Recently, there has been an increased focus on happiness at work among employees. They may change jobs often and encounter unexpected twists and turns, but personal satisfaction within a job is just as important as the job’s salary for today’s employees.

And with the rise of mobile technology, work is no longer confined to the office. New technologies and software allow employees to be “on” anytime, anywhere. But even though technology has offered great advantages, it has allowed work to infiltrate employees’ lives, keeping them connected to work 24/7.

In addition, employees today are more diverse than ever. They are no longer easily defined by generational categories like “Millennial,” “Gen X,” or “Boomer.” Instead, employees want to be recognized as the unique individuals that they are. They want faster recognition and direct compensation for their efforts. And they want to be a part of something bigger besides just “having a job” and “making money.”

In light of this “blended life,” employees are looking to achieve harmony, which is the experience of a work-life relationship that supports their life goals. When this work-life relationship is “in harmony,” employees become empowered in their personal relationships, as well as in their financial and career goals. In order to aid employees in their quest for harmony, employers must adopt an “employee-first” mentality and proactively provide solutions based on their needs.

Here are 5 ways employers can meet employees where they are:

1. Offer a breadth of employee benefit options.

The definition of “employee benefits” has expanded beyond “health insurance”. Today’s employers have to offer flexibility, custom tailored and diverse offerings. By offering a wide range, employers can help alleviate the anxiety that comes with the integration of work-life and home-life.

2. Deliver digital and tailored solutions.

With the rise of mobile technology, companies must embrace HR technology to adapt and disseminate their information. Doing so will help an increasingly diverse workforce find the assurance and security it’s looking for.

3. Provide access to the right information.

When employees have access to the right information on their terms, it ensures they can get the info they need to meet their objectives. This places additional demands on the HR team, who must engage vendors to deliver timely and clear information regarding benefits, policies, and payroll, compliance and workplace procedures.

4. Focus on creating an engaging company culture.

Time and dollars spent on creating culture will be returned exponentially. So, companies that engage their teams, create synergistic opportunities beyond the softball team, and support employee engagement will thrive in retaining and attracting talent.

5. Tie compensation to performance.

When compensation is tied to performance, employees will best be able to recognize their role in the growth and success of their organization. This will enable them to discover the immense value of their workplace and benefits. As a result, their appreciation will enhance their loyalty and commitment to the company.

Companies that embrace this new way of thinking and utilize HR technology to bring employee engagement into the 21st century will thrive in a challenging and changing business world. Contact CorpStrat to learn how our “21st Century” strategies can revolutionize your business.

2020 Updated Employment Laws for California Employers

2020 Updated Employment Laws2020 is here, which means that along with a fresh start comes an onslaught of new laws. To help guide your business in the new year, here is a guide to important California employment laws that will be going into effect this year.


AB 5: Independent Contractor ABC Test

AB 5 codifies the “ABC” test from the Supreme Court of California case, Dynamex Operations West, Inc. vs. The Superior Court of Los Angeles. The test classifies workers as either employees or independent contractors under the California Wage Orders. As of January 1, 2020, a worker must meet all three requirements put out in the ABC test in order to be categorized as an independent contractor.

Here is a breakdown of AB 5 and the ABC Test.

Minimum Wage and Minimum Salary Increased

Since January 1, 2020, the California state minimum wage has increased to $12/hr for employers with 25 or fewer employees and $13/hr for employers with 26 or more.

In conjunction with the increased state minimum wage, the minimum salary permitted in California will increase to $49,920 annually for employers with 25 or fewer employees and $54,080 annually for employers with 26 or more.

In addition, cities within California have their respective minimum wage increases; for example, Los Angeles, Pasadena, and Malibu have increased their minimum wage to $14.25.


California Consumer Privacy Act

As of January 1, 2020, the California Consumer Privacy Act of 2018 (“CCPA”) has officially gone into effect. The CCPA aims to give California consumers increased transparency and control over how businesses use and share their personal information. The law affects a wide range of businesses as it applies to all business entities in California and those collecting consumers’ personal information.

Businesses subject to the CCPA must at minimum:

  • Provide notice to consumers (on data collection practices) at or before data collection.
  • Create procedures to respond to requests from consumers (to opt-out, know, and delete).
  • Respond to requests from consumers within specific timeframes.
  • Verify the identity of consumers who make requests.
  • Not sell personal information of consumers under the age of 16 without explicit consent.

Businesses that do not comply with the proposed regulations in the upcoming new year will face civil damages that could total up to $1 million.

Discrimination and Harassment

SB 188: Discrimination Based on Protected Hairstyles

SB 188, also known as the Creating a Respectful and Open Workplace for Natural Hair (CROWN) Act, prohibits discrimination based on race-based hairstyles. Effective as of January 1, 2020, the bill enforces that an employer may not withhold or terminate employment or promotion based on a job applicant’s or employee’s hairstyle. Protected hairstyles include braids, dreadlocks, and twists.

Learn more about SB 188.

AB 9: Statute of Limitations for FEHA Claims Extended

AB 9, effective since January 1, 2020, extended the deadline for a person alleging unlawful discrimination, harassment, or retaliation in violation of the California Fair Employment and Housing Act (FEHA) to file a verified complaint with the California Department of Fair Employment and Housing (DFEH) from one year to three years from the date of the occurrence.

SB 788: Extended Deadline for Sexual Harassment Prevention Training

The deadline for employers with five or more employees to provide sexual harassment prevention training has been extended from January 1, 2020 to January 1, 2021.

Learn why you should start sexual harassment prevention training now.

Arbitration Agreements and Separation/Settlement Agreements

AB 51: Mandatory Arbitration Agreements Banned

Under AB 51, California employers are prohibited from requiring employees and applicants to sign arbitration agreements as a condition of employment, continued employment, or the receipt of any employment-related benefits. This law applies to contracts for employment entered into, modified, or extended on or after January 1, 2020.

It also states that employers may not retaliate against an employee or applicant who refuses to sign an arbitration agreement.

AB 749: No More “No Rehire” Provisions in Employee Settlements

“No Rehire” provisions will no longer be allowed in employment settlement agreements. Under AB 749, a settlement agreement may not restrict or prohibit a settling party from getting rehired with the employer or its parents, subsidiaries, affiliates, divisions, and contractors.

This new law applies to the “aggrieved party,” or those have filed a claim in court or through the employer’s internal complaint process. For employees who have engaged in sexual harassment or assault, the law will not apply and the “no rehire” provision can be included.

Leave, Accommodation, and Workplace Safety

SB 142: Additional Accommodations for Lactation

Effective since January 1, 2020, employers are required to provide more lactation accommodations. In addition, providing access to a sink with running water and refrigerator, the lactation room or location must:

  • Be close to the employee’s work area
  • Be shielded from view and free from intrusion; and
  • Have certain features, including electricity and resources necessary to operate a breast pump.

They must also create and enforce a lactation accommodation policy and make it available to all employees. It must be included in the employee handbook as well as any other materials employers distribute to new employees upon hiring. Whenever an employee makes an inquiry or requests about parental leave, the employer must inform the employee about this policy.

Failure to comply and provide a lactation room will be deemed a violation of California’s rest period laws. The employer will need to pay a premium of one hour of pay per day for each day that violation occurred.

AB 83: Paid Family Leave Extended

On July 1, 2020, Paid Family Leave (PFL) benefits that individuals can receive from California’s State Disability Insurance program will be increased from six to eight weeks.

Contact CorpStrat for any assistance you may need in ensuring full compliance with these new laws in 2020.

Top 5 HR Resolutions for 2020

HR Resolutions

With a new decade here, it is time to start thinking about how your workforce can become more effective and efficient in the years to come. 2020 is bringing new changes to the human resources industry so your HR department must be prepared to respond and adapt.

To prepare for 2020, here are 5 resolutions your HR department can set in order to attract and retain your workforce.

1. Align employee goals with team and organization goals.

When goals align within your organization, employees feel more motivated and engaged. It is crucial to show how employee contributions build towards team and organization success. When employees see the link between their contributions and the bigger picture, they are driven by the idea of everyone working together towards the same goal.

One way for goal alignment is to encourage leadership to share its goals and direction of the company. By better communicating their goals and expectations, executives can make sure everyone is on the same page. Another way to show employees how their work is helping the organization is to set milestones, whether they be monthly or quarterly.

2. Adopt a more flexible workplace model.

Similar to last year’s Top 5 Resolutions for HR in the New Year, adopting a flexible workplace model is still just as important for 2020. Remote work is no longer considered a luxury and has become more of an expectation. Companies that offer remote work experience actually saw a 25% lower turnover rate as well as a boost in overall productivity. Furthermore, in the face of increasing globalization, offering remote work has become the perfect way to access a wider pool of talent across the world.

In order to support remote work, it is important that your organization provide the technology and resources employees need to be successful when working remote. Providing a virtual office space, like Slack, and video chat software, such as Zoom or Skype, can help with productivity for those working remotely.

3. Leverage people analytics for decision-making.

In 2020, it will be increasingly important for HR to leverage data analytics to make decisions. With data, HR can make better people-related decisions related to recruiting and retaining, as well as test the effectiveness of HR policies and different interventions. A Deloitte study has shown that 71% of executives believed people analytics to be “very important” or “important” to their business.

With an increasing number of people analytics tools appearing in the market, businesses will have access to a wide range of metrics to help them understand, at a far deeper level, what drives results. HR should leverage these tools and analyze data regarding recruitment, performance, and employee mobility to optimize their operations.

4. Focus on providing employees with continuing education.

Providing employees with the opportunity to further develop their skills and knowledge in their field can help increase engagement, retention, productivity, and efficiency. According to LinkedIn, 94% of employees said they would stay at a company longer if it invested in helping them learn.

HR must prioritize training objectives based on topics relevant to the department or team first. Relevant and useful topics will naturally engage and motivate employees whereas irrelevant topics will disengage them. Once a foundation of continuing education is set, HR should launch programs teaching employees new useful skills that they can leverage to take both themselves and the organization further.

5. Reevaluate the recruiting strategy

As more people shift towards a more project-based career, HR must reevaluate and redefine their recruiting strategy to make sure it is attracting all types of workers. The contingent workforce—which includes both remote workers and on-site, non-employee workers—now accounts for 41.5% of the U.S. workforce.

Some ways to refresh the recruiting strategy can involve offering referral bonuses, showcasing employee video testimonials, writing job descriptions that clearly outline expectations, and branching out beyond the usual recruiting platforms. Once interest is piqued, HR must have a concrete plan on how they plan to engage with these workers. Some ways to attract and retain talent is to offer a comprehensive employee benefits package as well as flexibility for remote work—as discussed above.

To learn how your HR department can attract, reward, and retain employees in 2020, reach out to CorpStrat for more information on how we design and manage employee benefits at competitive rates.