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A WorldatWork Collection of Covid-19 Articles & Resources ESPONSE , ESILIENCE & ECOVERY VOL. 1 Business Not As Usual page 22 Pay Equity and Pandemics page 36 Moving to a Telework-Only Model page 50

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  • A WorldatWork Collection of Covid-19 Articles & Resources

    ESPONSE, ESILIENCE & ECOVERY VOL. 1

    Business Not As Usual page 22

    Pay Equity and Pandemics page 36

    Moving to a Telework-Only Model page 50

  • Global Headquarters14040 N. Northsight Blvd. Scottsdale, AZ 85260 USA

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    WorldatWork is the leading nonprofit professional association in compensation and total rewards. We serve those who design and deliver total rewards programs to cultivate engaged, effective workforces that power thriving organizations. We accomplish this through education and certification; idea exchange; knowledge creation; information sharing; research; advocacy; and affiliation and networking. Founded in the United States in 1955, today WorldatWork serves total rewards professionals throughout the world working in organizations of all sizes and structures.

    WorldatWork Society of Certified Professionals®, the Certified Compensation Professional® (CCP®), Certified Benefits Professional® (CBP®), Global Remuneration Professional (GRP®), Work-Life Certified Professional® (WLCP®), Certified Sales Compensation Professional (CSCP)®,Certified Executive Compensation Professional (CECP)® and Advanced Certified Compensation Professional (ACCP)™ are registered trademarks of WorldatWork.

    WorldatWork neither endorses any of the products, services or companies referenced in this publication nor attests to their quality. The views expressed in this publication are those of the authors and should not be ascribed to the officers, members or other sponsors of WorldatWork or its staff. Nothing herein is to be construed as an attempt to aid or hinder the adoption of any pending legislation, regulation or interpretive rule, or as legal, accounting, actuarial or other such professional advice.

    Copyright © 2019 WorldatWork. All rights reserved. WorldatWork and Workspan: Registered Trademark® Marca Registrada. Printed in U.S.A. No portion of this publication may be reproduced in any form without express written permission from WorldatWork.

    WorldatWork Association BoardLead Director

    Sara R. McAuley, CCP, WLCP McAuley Consulting Group

    Secretary/TreasurerJeff Chambers, WLCP Campbell and James

    DirectorsScott Cawood, Ed.D., CCP, CBP, GRP, CSCP, WLCP

    WorldatWork

    Mary Lynn Fayoumi HR Source

    Alan Gardner Verizon Communications (retired)

    Nathalie Parent, CCP, CBP, GRP, CSCP, CECP, CHRP

    Shift Technology

    Stacey Petrey, Ed.D., CCP Bausch Health Companies

    J. Ritchie, CCP Microsoft Corp. (retired)

    WorldatWork Society BoardLead Director

    Brit Wittman, CCP, CECP Applied Materials Inc.

    SecretarySusan Brown, GRP

    Siemens Corp.

    MembersDr. Mark Bussin, Ph.D., CCP, GRP

    21st Century Pay Solutions Group

    Scott Cawood, Ed.D., CCP, CBP, GRP, CSCP, WLCP WorldatWork

    Kumar Kymal The Bank of New York Mellon Corp.

    Karen Macke Nationwide Insurance

    Steve Pennacchio, CPA, J.D. Pfizer Inc.

    J. Ritchie, CCP Microsoft Corp. (retired)

    Guillermo Villa HBO Latin America

    EditorialPublisher

    WorldatWork

    Editor-in-ChiefDan Cafaro

    Managing EditorStephanie N. Rotondo

    Contributing EditorsBrett Christie Jim Fickess

    Brittany Smith

    Editorial AssistantLinda Larson

    Contributing WritersMark Athitakis Jane Larson Tom Starner

    Contact [email protected]

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    Kris Sotelo

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    [email protected]

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    Dawn Jeffers 480-304-6784

    [email protected]

    Advertising InformationVisit our website at worldatwork.org.

    Workspan LeadershipWorldatWork President and CEO

    Scott Cawood, Ed.D., CCP, CBP, GRP, CSCP, WLCP

    WorldatWork General CounselGeorge Pisaruk

    A WorldatWork Collection of Covid-19 Articles & Resources

    ESPONSE, ESILIENCE & ECOVERY VOL. 1

  • FROM THE EDITOR

    5Workplace Bellwethers and First Responders

    LETTER FROM LEADERSHIP

    6Reimagining the World at WorkBy Scott Cawood, WorldatWork (March 20, 2020)

    Section 1 RISK ASSESSMENT AND PREPAREDNESS

    10A 10-Step Approach for Employers to Respond to CrisisMarch 4, 2020

    12Pandemic Planning & Response ChecklistMarch 26, 2020

    Section 2 TOTAL REWARDS

    18Turbulent Times: Purpose, Certainty and SustainabilityMarch 9, 2020

    22Business Not as Usual: Time to Re-Evaluate Your Comp and Benefits PoliciesMarch 12, 2020

    48Focusing on Caregiving BenefitsApril 22, 2020

    Section 4 TELEWORK

    50Many Employers Move to a Telework-Only ModelMarch 25, 2020

    53Engaging a Remote Workforce: What You Need to KnowMarch 31, 2020

    54Are Businesses Ready for a Transformed World at Work?April 1, 2020

    56How to Be a Successful and Persuasive Communicator While Working RemotelyApril 8, 2020

    58Remote Work, Talent Sharing Can Expand Beyond COVID-19April 24, 2020

    table of contents

    26How the Coronavirus Is Forcing Organizations to Better Prepare for the FutureMarch 16, 2020

    28Broadening Support for EmployeesMarch 20, 2020

    30Practical Measures to Take for Organizational StabilityApril 6, 2020

    36Pay Equity and PandemicsApril 9, 2020

    38Insights on the Best Rewards and Benefits Actions to Take During a PandemicApril 16, 2020

    Section 3 BENEFITS

    45Employee Health and Well-BeingApril 15, 2020

    46Navigating Through Benefits DecisionsApril 22, 2020

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  • Section 5 SALES COMP

    62COVID-19: Should You Protect Sellers’ Pay?March 18, 2020

    64COVID-19: Sales Departments Seek to Protect Sellers’ Incentive PayApril 2, 2020

    66COVID-19 Shakeup: Organizations Adjusting Sales StrategyApril 21, 2020

    Section 6 EXEC COMP

    69How COVID-19 Could Impact Exec Pay PracticesMarch 24, 2020

    70Proxy Advisors Issue Updated Guidelines Related to COVID-19 FalloutApril 17, 2020

    72Many Companies Still Moving Forward with Director Pay Plans April 23, 2020

    91Canada Tweaking Workers’ Compensation System in Response to COVID-19April 27, 2020

    Section 9 WORLDATWORK RESEARCH

    94Organizations Mitigating Impact to the Workforce Due to COVID-19

    98EXTERNAL RESOURCES

    table of contents

    Section 7 EMPLOYMENT LAW

    74IRS to Provide Temporary Relief for HDHPs Covering COVID-19 Health ServicesMarch 18, 2020

    75U.S. Government Provides Exception for Remote I-9 Document ReviewMarch 20, 2020

    76Fit for Duty: ADA, FMLA and Discrimination Disputes in a COVID-19 WorldMarch 25, 2020

    80What Employers Need to Know About the COVID-19 Federal Paid Leave ActsApril 1, 2020

    Section 8 INTERNATIONAL

    86Multinational Employers and the Coronavirus Outbreak: What to DoFebruary 7, 2020

    90UK Suspends Pay Data Reporting Amid COVID-19 ConcernsApril 14, 2020

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  • from the editor

    May 11, 2020 — With the force of a lightning bolt, the novel coronavirus has struck our everyday work world hard, fast and furiously. It has shut down the routine of many business operations and has tested the very fabric of commerce and enterprise as we know it. Consequently, it has forced organi-zations into a corner that demands rapid responses, as the landscape continually changes, to a devastating global crisis.

    When WorldatWork began its coverage of how employers were responding “in real time” to the COVID-19 situation, it became apparent rather quickly that these extraordinary times would call for extraordinary measures.

    Furloughs and layoffs may have been inevitable, but so too have been the overt acts of human kindness, generosity and compassion. While an unanticipated shock to the system has rocked our equilibrium, it also has humbled us. For every dire bottom-line decision to cut costs and mitigate losses, we have observed role models of good corporate citizenry, combined with a workforce determined to withstand chaos — and even find harmony and positivity through the struggle.

    Consider this curated collection of articles and resources as you might a time capsule. Every article and data point is timestamped to remind you of the unfolding of events, how employers acted and reacted to the head-spinning stresses of a global pandemic and societal lockdown.

    Response, Resilience & Recovery, the first of three volumes, is a unique publication in its transparency of a rapidly evolving work environment. We often consider daily news headlines and breaking stories to have a characteristically short shelf life. In this case, we learn that the short, unwritten history of how

    Workplace Bellwethers and First Responders

    we conduct business post-COVID-19 is bound to contain many lessons in the form of questions.

    • How did my employer respond to the crisis?

    • How did our competitors respond? • Have we changed? Have we innovated? Have we improved?

    • Are we ready for this new world at work? Are we resilient enough to lead the recovery?

    When you examine the different phases of business disruption due to the COVID-19 crisis, it is important to know:

    • Where your company is in the phases of response, resilience and recovery.

    • What the company is doing to success-fully navigate those phases.

    • What you think the company could be doing better to boost the personal resil-ience of employees, and its business resilience, or that of other organizations.

    As you consider the lengths some employers go to protect their work-force, it is always wise to recognize and emulate the workplace bellwethers and first responders, be they a source of inspiration or a source of wisdom. May you find your organization’s North Star through a few of the circumstantial employment practices and necessary pivots in the pages to follow.

    Dan Cafaro, Editor-in-Chief, WorldatWork

    The short, unwritten history of how we conduct business post-COVID-19 is bound to contain many lessons in the form of questions.

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  • letter from leadership

    If the Fourth Industrial Revolution has increased the speed and changed the way we work, COVID-19 undoubtedly has pushed many companies to play catch up and be ready sooner rather than later.

    In the last couple of months, thousands of employers worldwide have rushed to implement or complete their remote-ready efforts as millions of employees have transi-tioned from offices to their homes. Whether your team was partially remote, or your company did a complete switch to home office, leading your business and your people during these times will test most of what we know about leadership.

    If there is a silver lining in this otherwise disruptive work pandemic, it would be that the current environment will force changes that could ultimately elevate the employee experience around the globe.

    Here are three important focus areas to help you lead in a COVID-19 world:

    1. People first: Focus on business continuity but make your people’s well-being the priority. Your business for the next three months is really all about people, not profits

    and margins. Your employees will need your leadership during this unprecedented time which will alter what we have traditionally focused on as “success.” Without question, everyone is anxious about their health, families and jobs. But equally compelling is our need to adapt and manage new realities, such as kids attending school remotely while parents work from home. Isolation on top of anxiety can take a massive swipe at a person’s well-being. If not already, there will soon come a time where you will have to decide to protect your people or protect your profits. People need to know you care, especially now. How can you best protect them in their livelihood, but also in day-to-day

    Reimagining the World at WorkBy Scott Cawood, WorldatWork (March 20, 2020)

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  • letter from leadership

    living with needed supplies or adapting schedules? All of these “life” issues just got pushed to the very top of their priority list and the last thing they need is to contend with an employer who is too fixated on business as usual. Your people’s ability to refocus and rapidly adapt to the current world at work is linked to your ability to respond and not just react. Encourage connection by having your teams hold virtual gatherings, reach out to one another, continue building relationships, schedule virtual lunches and happy hours and create a digital support system that will reinforce the idea that we are all in this together.

    2. Operate in smaller networks: You may be operating in a hierarchical type of organization where directives and deci-sions cascade down from the C-suite. Over time, this type of structure will become less dominant due to the speed and agility needed in the Fourth Industrial Revolution. However, COVID-19 just dropped a hyper-accelerator into your work-force, sending millions scrambling to even access their work, much less be successful at it. It is time to decrease control-and-command management and empower smaller teams’ broader decision-making so that you can respond faster to the rapid-changing environ-ment. Use the power of small teams that can assemble and distribute capabilities and diverse perspectives to quickly make good decisions and produce quality work. The closer these networks are to the consumer of your products and services, the better. This organization struc-tural shift already has taken place in many workplaces, but COVID-19 will force us to adopt it at a wider scale and in many more organizations throughout the world.

    3. Stop just sharing information: The world has a lot of information flying in every direction, but we need actual communication where people listen, share, interpret and then take action. Most people need less information and, instead, much more human connection. This can come in the form of frequent and transparent communication. The ability to build trust will greatly be influenced by the ability to keep our companies and employees updated on what is happening, but also what the meaning is behind it.

    There are plenty of online resources in terms of health, official measures and recommendations, but your people need to know they are in good hands during this pandemic. They need to see good decision-making and confidence, but not over-confidence that looks more like denial.

    People want access to current and vital information that enables them to make the right choices for their family and their work. Communication will need to remain transparent and authentic to be effective. With an overload of information being shared by the media, government and friends and family, rumors can travel fast and become the guiding principle for teams. Maintaining constant and focused dialogue that allows two-way interaction plays a crucial role.

    Whether you use email, an internal communication system, or a cloud-based platform, making it a priority to keep your teams updated will be critical. Stick to the facts, but don’t jump on the panic bus as we have a lot to do as a society and as leaders if we are to help resolve this crisis.

    Additionally, I cannot say it enough to myself, but we have to keep in mind to remain calm. Maintaining an optimistic approach grounded in reality will help us make the best decisions to successfully lead our organizations through the next few months of uncertainty.

    Scott Cawood, Ed.D, CCP, CBP, GRP, CSCP, WLCP is the president and CEO of WorldatWork.

    If there is a silver lining in this otherwise disruptive work pandemic, it would be that the current environment will force changes that could ultimately elevate the employee experience around the globe.

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  • Risk Assessment and Preparedness

    1SECTION

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  • Risk Assessment and Preparedness

    To learn more about managing the human and business risks of coronavirus, listen to this HR.com webcast discussion with WorldatWork content director, regulatory, Deirdre Macbeth.

    The coronavirus has grown from an outbreak, which has since been fairly well contained in China, to a pandemic that is affecting the United States and 70-plus nations.

    As of Wednesday, there have been more than 91,000 confirmed cases worldwide and the death toll has surpassed 3,000. In the U.S., there’s been at least nine deaths and more than 100 confirmed cases.

    Some large companies such as Amazon, Apple, Google and Salesforce have instituted travel restrictions and other companies, like Facebook, have cancelled events out of precaution. While it’s best to remain calm in health situations such as these, it’s also important for employers and total rewards professionals to respond promptly and authoritatively so as to limit the spread of the disease while also maxi-mizing work output.

    “We all need to focus our efforts on stopping the spread of the coronavirus while also finding ways to generate work,” said Scott Cawood, president and CEO of WorldatWork. “Employers must do everything possible to keep their workplaces, workers, and customers safe while we navigate the next few weeks.”

    10 Action Steps for Employers to Take TodayWorldatWork provided a roadmap for multinational employers in early February at the beginning stages of the coronavirus outbreak. WorldatWork’s white paper, “Business Continuity Planning for Illness Outbreak or Epidemic,” emphasizes that employers should identify the key positions and functions essential to sustain busi-ness continuity and develop plans to enable these functions and personnel to continue working, possibly through remote operations.

    In addition to these resources, WorldatWork has developed a list of 10 priorities total rewards profes-sionals should have during this time to best situate their organization during this time:

    1 Implement disease prevention measures in the workplace as recom-mended by public health authorities such as refraining from standard touch greetings (i.e., handshakes), providing ready access to soap/water and alco-hol-based rubs, supplying anti-bacterial wipes to clean workplace surfaces and using touch-free disposable recepta-cles if feasible.

    2 Provide proactive and regular communications to the workforce regarding proper hygiene, disease prevention measures and pandemic

    A 10-Step Approach for Employers to Respond to CrisisBy Brett Christie, WorldatWork (March 4, 2020)

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    http://media.hr.com/webinarslibrary/MP3/HRCOMInoculatingYourHRPolicy03112020.mp3https://www.npr.org/2020/03/03/811728989/coronavirus-cancellations-and-travel-bans-google-is-latesthttps://www.worldatwork.org/workspan/articles/multinational-employers-and-the-coronavirus-outbreak-what-to-dohttps://www.worldatwork.org/workspan/articles/multinational-employers-and-the-coronavirus-outbreak-what-to-dohttps://www.worldatwork.org/docs/white-papers/wp-businesscontinuity-illness-outbreak-j10357-fnl.pdfhttps://www.worldatwork.org/docs/white-papers/wp-businesscontinuity-illness-outbreak-j10357-fnl.pdfhttps://www.worldatwork.org/docs/white-papers/wp-businesscontinuity-illness-outbreak-j10357-fnl.pdf

  • preparedness practices as recommended by public health authorities.

    3 Advise employees on how they can leverage the benefits of their health plan including virtual health-care visit options; determine the need to communicate any information on long-term strategy of retirement benefit plans considering potential short-term market volatility.

    4 Provide guidance to employees about work-at-home expectations when well and expectations for the use of paid leave when not able to work; determine how pay will be handled for absences of non-exempt personnel who are not able to perform work from home.

    5 Review variable incentive plans that are impacted by the inability to conduct business in affected regions and communi-cate to employees how this will be managed.

    6 Evaluate any potential impact to short-term incentive plans if there is a business disruption and determine strategy for managing any adjustments.

    7 Modify or provide flexibility with paid leave policies consistent with public health guidance and determine how to handle any waivers to the policies if needed (i.e., if your organization has a waiting period to use paid leave benefits or does not permit a negative paid leave balance).

    8 Review short-term and long-term staffing capabilities and determine “essential services” for the workforce in the event of higher workplace absences.

    9 Partner with HR to develop or review organizational contingency/business continuity plans and emergency management policy and ensure managers have proper training on these plans.

    10 Partner with HR to determine whether any international travel plans should be modified and confirm benefits available to those who are abroad.

    “It’s important for total rewards profes-sionals to provide practical and rational guidance to make a positive impact when preparing for contingency events,” said Alicia Scott-Wears, content director at WorldatWork. “These tips provide a broad view and are a good place for them to start.”

    A Situation that Demands FlexibilityThe U.S. is the only industrialized nation that does not require employers to provide any kind of paid sick leave. Although some states and municipalities require certain levels of paid sick leave, most U.S. employees have no access to the benefit. According to a 2012 study published in the American Journal of Public Health, a lack of workplace paid sick days contributed to an additional five million cases of influenza-like illness during the H1N1 pandemic of 2009.

    Thus, it’s incumbent upon employers to find ways to be especially flexible and agile in these circumstances.

    “Organizations should consider unique or new working options so employees can continue to work when possible. This can be from home or from a different location which still enables them to contribute,” Cawood said. “Workers who are exposed to the public or have no options for remote work should be afforded as much flexibility as possible while also taking all precautions neces-sary to reduce risk.”

    Brett Christie is the managing editor of Workspan Daily.

    risk assessment and preparedness

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    https://ajph.aphapublications.org/doi/10.2105/AJPH.2011.300307https://ajph.aphapublications.org/doi/10.2105/AJPH.2011.300307https://ajph.aphapublications.org/doi/10.2105/AJPH.2011.300307

  • This article will focus on concrete and cost-effective preparedness and business-continuity measures to mitigate the impact of pandemic illness whenever it strikes, whether it’s coronavirus (COVID-19) or another strain of virus.

    Readers of Workspan will be particularly interested in the total rewards, benefits and compensation issues inherent in pandemic preparedness and responses, such as: • Paid-time-off or sick-pay programs may need liberalization to encourage self-quarantine of employees who believe they have been exposed to disease.

    • The costs of providing health, disability and life-in-surance coverage could increase dramatically as the result of a pandemic.

    • Keeping critical operations functioning may warrant use of “hazardous-duty” pay or increased flexibility in the use of bonuses or other special incentives.Preparedness goes far beyond total compensation. The

    following approach demands ongoing involvement of the preparedness team and other key players throughout the organization. Through this process, the organization’s existing emergency-preparedness and response plans should become better understood and tested.

    STEP 1 Develop CommitmentDeveloping a clear, fact-based understanding of pandemic influenza and its potential consequences is the first step toward devising and implementing a solid business prepared-ness and response plan.

    Total rewards, HR and risk-management professionals need to educate themselves on the most critical issues at hand and should take that knowledge to executive management to establish a corporate-wide commitment and necessary resource allocation.

    To convince executive management of the need to act, the presenter must be able to: • Describe the issues and risks of the situation.

    • Be ready to highlight corporate vulner-abilities and the potential impact of a pandemic on the company.

    • Suggest specific means of addressing the risks.

    • Invite representatives from other departments to be part of a pandem-ic-preparedness and response team, and provide reasons why they should participate on this taskforce.

    STEP 2 Form the Preparedness Planning and Response TeamOnce the executive-management team has agreed to the need for a prepared-ness and response plan, it’s time to assemble the team and designate the chairperson. He or she should have broad corporate decision-making authority and credibility, as well as the resources needed to implement the plan.

    Every part of the organization should be represented on the preparedness team, although some team members will be less involved than others. The team should include representatives from total rewards, human resources, risk management, safety and security,

    Pandemic Planning & Response Checklist(March 26, 2020)

    risk assessment and preparedness

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  • risk assessment and preparedness

    facilities, information technology, operations, sales, finance, legal and corporate communications. If the company employs a medical director or other health-care professional, he or she also should be included.

    STEP 3 Educate the Team and Establish a Broad StrategyAt the first team meeting, the chairperson should give a comprehensive presentation about pandemic illness, focusing on the current strain of flu or virus. Although the plan will certainly evolve over time, the leader should be prepared to present an initial action plan, with analytical assignments for each member of the team. Set aside time for questions and answers, as well as for discussion of the impact of a pandemic on the industry and company.

    Each team member should leave the first meeting with the assignment of evaluating the potential impact of a pandemic on his or her own department. In a follow-up meeting, discuss the findings and initial recommendations.

    STEP 4 Assess the Risks and Develop a PlanGroup members’ thoughts on risk assessment and prepared-ness/response strategy should be incorporated into a planning matrix that lists various analytic tasks and preparedness steps and assigns responsibility for their completion. Following are some of the issues that team members should address. • Assess impact on demand for company’s goods and services. The assignment of one or more team members for this aspect of analysis will depend on the size of the company and nature of the business. A representative of sales and marketing should be included.

    • Project financial impact. The corporate finance department should be represented on the team so that it is fully informed about possible consequences of a pandemic for business

    operations. Based on that information, the finance department will be better able to develop financial projections based on different scenarios. This will allow the company to communicate more quickly and effectively with finan-cial markets in the event of a crisis.

    • Identify key employees and positions for which backup is needed. Each team member should be charged with identifying key individuals or positions that are critical to business continuity in his or her area of operations. Cross-training opportunities and backup personnel should be identified. In some organizations, critical staffing requirements may dictate use of hazard pay as an incentive to keep employees on the job.

    • Analyze travel impact. The team’s representatives from human resources, sales, operations and corporate travel need to consider the impact that international border closures and curtailment of airline operations would have on the business. They also should begin working to identify other ways in which to continue operations if travel becomes dangerous or impossible.

    Even before a pandemic begins, the company may want to prepare and distribute travel health kits for those

    Even before a pandemic begins, the company may want to prepare and distribute travel health kits for those going to locations where the risk of illness is perceived to be high. Such kits should contain masks, hand sanitizers, surgical gloves and other personal protective equipment.

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  • going to locations where the risk of illness is perceived to be high. Such kits should contain masks, hand sanitizers, surgical gloves and other personal protective equipment. In addition, some companies will want to include a course of Tamiflu or another antiviral drug that can be used prophylactically (in the event of suspected exposure) or for immediate commencement of treatment if symptoms begin and influenza is suspected.

    Traveling employees should also be given any travel advisory information published by the World Health Organization (WHO) or the U.S. Centers for Disease Control (CDC). • Evaluate impact on expatriates. Team members also should evaluate whether and at what point expatriate employees and their families should return to their home countries. In some cases, it may be desirable to evacuate family members before the employees. Any expatriates who are deemed to be critical to the company’s operations in a given area should be identified, and those willing to stay during a pandemic should be appropriately compensated. In certain areas (especially where health care is poor or other resources difficult to get), it might be wise to prepare one or more safe houses, stocked with food, water and other necessities adequate to last several months.

    • Evaluate effects of high employee-absence rates. If a pandemic develops, it could spread around the world within a few weeks, and up to 35 percent of the workforce could be ill at its height. An additional 10 percent or so of workers could be absent because of general panic or the need to care for family members, including children at home because of school closures.

    Team members from each area of the company must evaluate the consequences of high absentee rates and determine what measures can be taken to continue opera-tions in spite of that. Possible responses include increased telecom- muting and introduction of flexible work hours (to

    maximize social distancing). If some business locations are harder hit than others, some operations may need to be temporarily transferred from one location to another. Systems redun-dancies and employee cross-training will be important.

    • Prepare facilities. The spread of disease in the workplace can be reduced through education of employees about disease transmission and personal The preparedness team should look to facilities management to evaluate the purchase and deployment of materials such as hand sanitizers, disinfecting sprays, surgical gloves and masks. The HR department should create an education program that, in part, informs employees about proper hand washing, cough and sneeze etiquette and similar hygiene matters. Human resources should develop plans for the isolation and quick removal from the workplace of any employees who become ill at work with flu-like symptoms.

    • Review legal. Following are some of the issues that legal counsel should address:

    ― Legal counsel should review its standard contracts to determine whether force majeure (i.e., “Act of God”) provisions are broad enough to address the inability of either the

    risk assessment and preparedness

    Pandemics often occur in waves, and in past pandemics (particularly the Spanish Flu of 1918), the second wave of illness was much more lethal than the first. The first wave can last between three weeks and three months, and the second can occur three to 12 months later.

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  • risk assessment and preparedness

    company or its suppliers to perform due to widespread illness. It may be desirable to revise those provisions in new and/or existing contracts. ― Legal counsel should consider the requirements of appli-cable labor law in all jurisdictions where the company does For example, health and safety rules may mandate special training, equipment and procedures during an outbreak of illness. Federal and state rules about family and medical leaves of absence, the treatment of disabled employees and similar issues also must be addressed. ― The privacy and security requirements of the Health Insurance Portability and Accountability Act (HIPAA) govern the release of individuals’ protected health information (PHI) under many circumstances, although PHI may be released if required by public health Legal counsel should work with total rewards, HR and benefits personnel to ensure compliance with these federal rules, as well as similar state rules, which may be more stringent.

    • Review business continuation. The team’s risk-management representative will want to review any business-continuity insurance contracts to evaluate which, if any, consequences of a pandemic might result in covered claims.

    • Examine preparedness of outsourcing and other services. If the company outsources fabrication, human resources, information technology or other services to third parties, the preparedness team should investigate the ability of the outsourcing providers to deliver on their promises in the event of a pandemic. Outsourcing contracts should be carefully reviewed to determine whether penalties for non- performance are adequate to the risk.

    • Assess supply lines and just-in-time inventory. If a pandemic occurs, transportation services could be curtailed signifi-cantly for a time, and the company’s suppliers may be unable to fulfill their contractual responsibilities. The team should work to identify supply-line vulnerabilities and determine whether any modification of a just-in-time approach to necessary product components or other essential goods is needed. Alternative suppliers also should be identified where possible; however, they too, may be unable to step in if a pandemic occurs.

    • Prepare ongoing information. One team member (plus a designated backup) should be assigned to keep the group up-to-date on international, national and local developments if (and as) a pandemic develops. This individual should check

    sources such as the WHO and the CDC websites every day for information on the spread of coronavirus or other potential sources of a pandemic.

    • Prepare communications plan. A communication plan that is honest, timely and accurate is essential to preparedness, as is the designation of an official spokesperson for the company. The various audiences to which the information should target include the company’s employees, its managers and supervisors, and its customers.

    • Educate employees on how to protect themselves and their families. Be clear on what they should do if they become ill, the importance of keeping emer-gency contact information up-to-date, and the employer’s chain of command and preparedness plans.

    • Provide clear guidance to managers and supervisors regarding the compa-ny’s business-continuity plans. Be clear on what they should do if they or their employees become ill and similar administrative issues.

    • Inform customers about the company’s preparedness and response efforts. Keep them informed as the pandemic develops. For example, if operations are curtailed or if the delivery of goods or services is delayed because of illness, honest and timely informa-tion will help maximize cooperation among the parties.

    • Evaluate employee benefits plans, leave programs and health-care resources. Another team role of the total rewards and HR departments is evaluating the company’s health, life insurance and disability plans, as well as its workers’ compensation program, to determine the potential impact of

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  • a pandemic on plan costs. In addition, review sick leave and disability programs to determine whether temporary changes are necessary so that employees will not suffer financial devastation in the event of illness.

    • Review health care and public health resources available near each worksite to enable HR to direct anyone who becomes ill at work to caregivers. Some employers may want to develop telephone lines staffed with nurses to answer questions from employees who are ill. An employer’s existing employee-assistance plan provider may be a good source of information and counseling regarding mental-health issues such as panic, depression and grief during and after a pandemic crisis.As previously discussed, it also may be desirable to provide

    financial markets with accurate information about the compa-ny’s preparedness and response if a pandemic occurs. In addition, if the company has a high profile within the commu-nity, its public relations reps may want to inform local media of the preparedness plan’s existence and basic outline.

    STEP 5 Test Plan (Scenario Testing)Once the risk analysis is complete and a preparedness plan is in place, test the plan using carefully devised scenarios with differing assumptions regarding severity, rapidity of spread and other key factors. The scenario-testing process will increase awareness of the emergency-planning process throughout the organization, resulting in greater knowledge and credibility of the plan and its goals. Scenario-testing exercises intend to identify vulnerabilities and help the team refine the plan.

    STEP 6 Monitor Illness and Implement the Plan if a Pandemic BeginsIf a pandemic does develop, the employer should immediately begin to monitor illness rates in its facilities. Although the illness likely will spread quickly, there may be opportunities throughout a pandemic to move work around among facilities to take advantage of locations suffering a less severe impact. At this point, deployment of the previously discussed hygiene products will be important, as well as reminders to employees about how to protect and care for themselves and their fami-lies. The company also should implement social-distancing measures such as telecommuting and discouragement of face-to-face meetings.

    STEP 7 Be Prepared for Recurring Waves of IllnessPandemics often occur in waves, and in past pandemics (particularly the Spanish Flu of 1918), the second wave of illness was much more lethal than the first. The first wave can last between three weeks and three months, and the second can occur three to 12 months later. Therefore, it is important that your team refresh the preparedness plan periodi-cally to reflect changing circumstances. The team also should continue its moni-toring efforts for some time after the illness seems to have abated.

    Serious ConsequencesIt is impossible to know whether an influenza pandemic is imminent. However, even if the risk of a pandemic occurring in any given year is small, the potential consequences are so serious that business leaders are well-advised to prepare their organizations. The steps suggested above need not be expensive if they are well devised and organized, and if team members are fully committed and involved. Many planning tools and consulting services are available to help with the preparedness project.

    Go to the WorldatWork Pandemic Planning and Response page for addi-tional information.

    Note: This updated article originally appeared as “Preparing for a Pandemic: The Total Rewards Angle” by Connie Harden, JD (Workspan, July 2006).

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    https://www.worldatwork.org/resources/topics/flu-pandemic-planning-responsehttps://www.worldatwork.org/resources/topics/flu-pandemic-planning-response

  • SECTION

    Total Rewards

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  • Total Rewards

    “Purpose-driven companies that offer employees a sense of certainty have an edge over those that don’t.”

    That was true when we wrote it in June 2018, and it becomes more real in turbulent times — such as during global market fluctuations and broadscale public-health issues.

    Today, we find ourselves in one of the most disruptive periods in modern history, with companies (and their leaders) being tested to make decisions and act in ways that remain aligned with their purpose, while also creating greater certainty for employees, despite the external challenges.

    In countries where COVID-19 (coronavirus) cases are increasing, business leaders seek to learn practices from loca-tions that have experience with the operational, human and financial implications of the crisis (e.g., Wuhan/Hubei Province, Italy). Anecdotally and through surveys, we are observing a wide range of reactions from leadership teams to the situation.

    Many companies are making decisions that remain highly aligned with their purpose and values and are increasing (or at least stabilizing) certainty for employees, as well as other key stakeholders such as consumers and investors. This differs from the companies that are making decisions with less atten-tion to purpose and values and/or are potentially increasing levels of uncertainty for these groups.

    Workforce-related actions that compa-nies have taken in previous periods of uncertainty (e.g., Y2K; after the Sept. 11 terrorist attacks; earthquakes/tsunamis/hurricanes/fires; epidemics/pandemics) have spoken volumes to the various stakeholders — not only during the respective crisis, but also long afterward. Decisions made in turbulent times send enduring signals to employees (through the Employee Value Proposition), consumers (through brand integrity) and investors (through leadership credibility and financial align-ment). Through their actions and words, companies also send signals about their long-term commitments to their broader communities and to corporate social responsibility, all of which are being absorbed by the stakeholders, as well.

    These signals are being conveyed against a backdrop of the basic economic reality that companies face stemming from a period of intense market volatility, uncertainty and social disruption. Companies often are forced into contingency arrangements, such as reducing staff, furloughing employees, decreasing merit budgets, cutting bonuses, lowering defined-contribution plan matches and discontinuing other benefits. Such decisions generally are believed to lessen risks and protect the short-term financial interests of their owners/shareholders, while creating greater long-term stability for both the organization and its employees.

    Turbulent Times: Purpose, Certainty and SustainabilityBy JOHN M. BREMEN AND AMY DEVYLDER LEVANAT (March 9, 2020)

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    https://www.worldatwork.org/workspan/articles/purpose-certainty-and-modernized-total-rewards-in-an-era-of-disruption

  • Differentiated PracticesIn this context, companies that make and communicate decisions in ways that align with their purposes and values — and in ways that increase employees’ certainty and sense of performance sustainability — often weather storms more successfully than those that do not. Following are several prac-tices we are observing among employers that understand this.

    Lead with Action and an Employee-Centered Approach to Health and Well-BeingHR policies can help companies mitigate the effects of infec-tious disease and prevent unnecessary concern and harm to employees, while at the same time conveying a sense of dignity and a message that “employees matter.” Data analysis suggests that dignity and engagement are highly linked in the U.S., for example, with 87% of employees who report high levels of workplace dignity in Willis Towers Watson’s recent 2019/2020 Global Benefits Attitude Survey (GBAS) saying they are highly engaged, versus 5% of employees who report low levels of dignity.

    Whether it’s giving permission and/or encouraging workers or visitors who are sick to stay home or clarifying/temporarily bolstering paid time off and sick-leave policies, companies can help reduce the spread of the illness to others. Among 158 employers representing 1.5 million employees that responded to Willis Towers Watson’s COVID-19 Survey (fielded Feb. 19-Feb. 26, 2020):

    • 89% have increased access to hand sanitizers for employees in China.

    • 83% have communicated directly about virus prevention. • Many respondents have provided advice on everything from seeking medical care to reducing transmission by shielding sneezes and coughs, from washing hands often to consid-ering elbow-bumps instead of handshakes.

    • 70% have disinfected worksites. • 61% have established travel restriction and/or quarantine procedures, with many also providing additional guidance and rationale for limiting travel and in-person meetings.

    • 22% have evacuated personnel or their families.

    A separate Willis Towers Watson Pulse Survey of employers in China in February 2020 revealed that the top early practices of companies were highly employee-centric — to provide medical masks, disinfection products and other daily protective equipment for employees (92%) and set up an emergency team for the outbreak (73%) — actions directly related to health and well-being.

    Connect Well-Being, Productivity and Security with Practical Decisions for Alternative Work ArrangementsNearly two-thirds (59%) of employers either already have increased the flex-ibility for remote work or plan to do so, according to the Willis Towers Watson COVID-19 Survey (COVID-19 Survey). Where possible, leading companies are providing guidance on remote work that can be performed by knowledge workers who are either well or might be contagious but feel well enough to do their jobs.

    Service and manufacturing workers typically don’t have the option to work from home, but employers can issue clear guidance about work rules if they are too sick to work or if they are furloughed as a result of such an epidemic. Creating a sense of psychological safety that allows employees to make decisions that are right for them, whether they are ill and/or concerned about becoming ill, is a char-acteristic of purpose-driven employers. This ensures employees not only maintain a healthy and physically safe workplace, it also minimizes presenteeism (when employees show up for work in body but not mind or spirit).

    Among companies with operations in Wuhan/Hubei Province, more than half reported that 75% or more of their workforce was eligible to work remotely during the epidemic (a significant jump from pre-COVID-19 eligibility). Other regions are following suit as the virus spreads.

    For employees working remotely, leading employers provide direct support through access to needed technology. They also offer immediate training for managers and guidance on best practices and rules/expectations when working remotely (including frequency of check-ins and visibility) and other aspects of communication, collaboration and the work environment.

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  • Increase Certainty by Reinforcing Business Continuity Plans and ProceduresMost companies have business continuity plans to protect critical processes, operations and functions (the COVID-19 Survey reported 70% of employers have these plans in place). Where appropriate, leading companies communicate these plans to managers and employees — this helps align with both purpose and certainty.

    Business continuity plans generally include aspects related to communication; human resources and staffing; equipment; technology; supply chain; accessibility to key business assets; redundancies; contractual obligation reviews; and potential financial losses. During critical-crisis junctures and after the recovery phase, leading companies also review and update processes with key learnings, often soliciting feedback from managers and employees at an appropriate time.

    Underscore Purpose and Values by Identifying the Support Employees Need to Execute Plans During the CrisisOther reported practices by the Pulse survey participants in China included support to employees such as:

    • Providing lunch to avoid crowded places (27%) • Free psychological counseling (22%) • Additional insurance subsidies for impacted or at-risk employees (22%).

    Additionally, the COVID-19 Survey (conducted several weeks after the Pulse survey) reported 50% of organizations increased access to counseling in China, indicating such access grew during the crisis. Many organizations also reported offering special allowances for home-office technology or connectivity during the crisis, and/or other forms of special allowance for facilities workers who must remain on-site. Other employers set up hotlines for employees or managers who

    have questions or concerns, or need other forms of support.

    These efforts entail costs, but generally their return on investment — in the form of employee well-being, engagement and productivity, and commitment to purpose and value — is high. These actions also help create more certainty for employees during unpredictable times.

    In the Context of Purpose and Certainty, Make Tough Total Rewards DecisionsIt is realistic to expect some negative consequences for companies and employees during any crisis, including this one. At the same time, it is unreal-istic to expect that most companies will be able to operate without changes to their cost structure. While no one can predict how long the COVID-19 crisis will last and what the financial implications may be, many companies already are pursuing short-term staffing reductions, adjusting merit budgets and bonus pools, and pulling back on certain less critical benefits.

    As is the case in any crisis, the most effective companies work to make such decisions in a manner that is consistent with their purpose and values (e.g., reducing bonus funding to protect salary, delaying merit increases to reduce the number of layoffs) and communicating them as such. Highly effective companies also are focused on the pay and benefits elements that are most important in the current envi-ronment to create needed certainty for employees (e.g., health benefits, salary continuation, other resources).

    The COVID-19 Survey reports that 78% of employers operating in Wuhan/Hubei Province are paying furloughed workers in full during the crisis, and 22% are paying a portion of the usual wages.

    total rewards

    Leaders today are evaluated based on the extent to which they demonstrate a sincere interest in employee well-being.

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  • For those operating in other parts of China, 91% are paying furloughed workers in full and 9% are allowing workers to use sick days or other paid time off. In terms of benefits, 90% in Wuhan/Hubei Province and 97% in other parts of China are continuing benefits for furloughed workers.

    Looking Through Investors’ EyesToday, investors watch company decision making through multiple lenses, with impact and ESG investing estimated to be $20 trillion to $30 trillion of assets under management, according to various estimates (MarketWatch places the number in the U.S. alone at approximately $12 trillion).

    The Conference Board’s 2018 Global Leadership Forecast showed that purpose-driven companies outperform the market by 42%. Additionally, the Edelman Earned Brand Study reported that nearly two-thirds (64%) of consumers around the world are belief-driven buyers, choosing their brands based on position on social issues.

    Employees have noticed, too. Willis Towers Watson’s Global Workforce Study and Talent Management Report found that companies that follow a set of practices relating to employee engagement and the employee experience are 93% more likely to report significantly outperforming their industry peers financially (those with high engagement levels achieve average one-year EBITDA growth of 16.9%, versus those with low engagement of 4.5%).

    This doesn’t mean companies are off the hook for delivering financial results — to the contrary, they’re even more on the hook during disruptive moments. But now multiple constituen-cies are watching to see how and why companies are making decisions, in addition to what those decisions are. Constituents are asking questions around the extent to which the decisions:

    • Are aligned with purpose and values • Help foster a culture of dignity and engagement • Continue to support goals around ESG, brand reputation, corporate social responsibility, and other related factors

    Leaders today are evaluated based on the extent to which they demonstrate a sincere interest in employee well-being, and their ability to calm workforce concerns rather than increase them. This is true in the particular context of leaders’ knowledge that engagement and productivity were already at risk due to high employee stress levels prior to the crisis.

    Data from the “2019/2020 Willis Towers Watson Global Benefits Attitude Survey (GBAS)” suggest that 28% of U.S. employees already reported suffering from severe stress,

    anxiety or depression in the past two years. And a study by the Global Wellness Institute found that the emotional well-being of the world’s workers is declining, with about 40% of workers suffering from excessive stress and 25% actively disengaged at work.

    As such, leaders have an opportunity to be actively visible in their communication to employees, to ensure awareness of — and transparency in — company decisions, to strengthen trust through their commit-ment to employee health and well-being, and to provide a sense of comfort and stability where possible. Communication is a critical part of effective leadership during times of uncertainty.

    A Defining Moment for EmployersThis is not the first global crisis or moment of intense market volatility that most organizations have faced in recent years. However, the nature of the uncer-tainty is different. It involves health and well-being rather than climate, technology or other issues — making the challenges feel both far more personal and far less predictable, with very different types of potential outcomes.

    While there are clear short-term economic implications, many experts believe the fundamentals of the global economy will restore confidence in the near- to mid-term. As such, we submit that we are experiencing a moment when companies and their leaders — through the decisions they make today and their ability to respond tomorrow — will define who they are, and what matters to their people, their consumers, and their investors.

    John M. Bremen is managing director, human capital and benefits, and global head of thought leadership and innovation at Willis Towers Watson.

    Amy DeVylder Levanat is senior director, human capital and benefits, at Willis Towers Watson.

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    https://www.marketwatch.com/story/heres-what-you-need-to-know-about-the-12-trillion-dollar-esg-investment-world-2019-12-18https://www.conference-board.org/globalleadershipforecast/https://www.edelman.com/earned-brandhttps://www.willistowerswatson.com/en-US/Insights/2020/02/global-benefits-attitudes-survey-reporthttps://www.willistowerswatson.com/en-US/Insights/2020/02/global-benefits-attitudes-survey-reporthttps://www.globalwellnessinstitute.org/global-wellness-institute-releases-report-and-survey-on-the-future-of-wellness-at-work/https://www.globalwellnessinstitute.org/global-wellness-institute-releases-report-and-survey-on-the-future-of-wellness-at-work/

  • When the world seems to be spinning off its axis, it’s reas-suring to have workplace experts and strategists who can help make sense of the world at work under dire circumstances.

    While employers are scrambling to address myriad issues — such as, business disruptions and extended employee absences — because of the coronavirus pandemic, the first order of business is to keep your employees safe and calm, and to re-evaluate your compensation and benefits policies and practices.

    WorldatWork Content Director Deirdre Macbeth, Esq., this week took part in the HR.com webcast, “Inoculating Your HR Policy,” moderated by Workspan columnist Charles Epstein, president of Backbone Inc., and the co-host and producer of the WorldatWork podcast, Work in Progress.

    The following Q&A is between Epstein and Macbeth.

    What are some key compensation practices for employers to consider as part of their business continuity planning for the coronavirus?One of the most imminent compensation issues facing employers right now is how they’re going to pay their exempt

    and non-exempt employees in the event of workplace absences. Many employers are still unsure at this stage what they’re going to do, but as the coronavirus situation rapidly evolves, employers need to start planning so that they know what to do when reality actually hits the workplace.

    If there’s any unionized workforce, employers will need to look at any appli-cable collective bargaining agreements in place and determine if any changes need to be made so they can work proactively with their union to negotiate and implement any of those changes.

    For others that are not unionized, employers need to think about two key situations. The first situation is 1) when an employee is diagnosed with the coro-navirus; or 2) when a family member is diagnosed with the coronavirus.

    Business Not as Usual: Time to Re-Evaluate Your Comp and Benefits Policies(March 12, 2020)

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    https://www.worldatwork.org/workspan/articles/business-not-as-usual-time-to-re-evaluate-your-comp-and-benefits-policieshttps://www.worldatwork.org/workspan/articles/business-not-as-usual-time-to-re-evaluate-your-comp-and-benefits-policieshttps://podcasts.apple.com/us/podcast/worldatworks-work-in-progress/id1459149715

  • Most employers have leave policies in effect that treat the situation as a personal or family illness. Employers then need to look at: 1) the leave laws that apply; and 2) allowing their employees to use any available paid leave time to cover the absence. Also, if the illness is due to the employee’s own illness, there might be short-term disability benefits that apply for that individual. Employers should be working now with their vendors to confirm that the coronavirus is actually covered under their short-term disability policy. The assump-tion is “yes, it should be covered,” but it’s prudent to confirm that item now. Exempt and non-exempt employees should be treated the same under applicable leave policies, so it’s a simpler situation for employers.

    The more complicated scenario is the second situation when you have an employee who is willing and able to come to work but due to circumstances beyond their control, they’re not able to come to the workplace. It could be something like a public transportation issue, or an employer workplace or worksite is closed, or the employer has implemented a remote working environment. In that situation, exempt employees, if they’re able to perform work remotely and work part of the work week at least, under applicable wage and hours laws, they usually receive their regular pay.

    Non-exempt employees, however, typically would not be entitled to receive pay unless they perform work for the week. So, that is the decision point for employers. They need to start thinking about:

    • What compensation, if any, will they provide to their non-exempt workforce?

    • Will they make them use available paid leave time? • Is there partial or full pay that they could implement for this group?

    There’s a lot of creative ways employers can look at it. They could come up with a special emergency leave pay that would only apply for this situation or some other type of temporary paid leave benefit if there’s a concern about just continuing their regular pay. Employers can also act on an incremental basis. This is an evolving situation and employers aren’t really going to know the long-term impact yet of coronavirus to the workplace. So, if they want to make decisions on a weekly basis

    and allow an emergency leave benefit to apply, week by week, that should be fine as well.

    The key here is for employers to start thinking and planning for it, and to be cognizant of the public relations impact for their decision to pay or to not pay their workforce.

    How should employers adjust their paid/unpaid leave policies to help reduce the spread of coronavirus?First, employers need to look at their policies and determine if any changes need to be made to make sure that they’re consistent with the guidance provided by public health authorities. The most important thing right now is that if employees are feeling ill that they stay at home and they don’t subject others in the workplace to further risk and potential spread of the virus.

    Second, employers need to make sure that there are no penalties that apply if an employee wants to stay at home because they’re feeling ill. For example, if there’s an attendance infraction that typically applies, then the employer should consider waiving that provision on a temporary basis.

    Also, employers need to think about making sure that there’s flexibility in their leave policies. If applicable leave laws don’t apply, or the employee is not yet eligible for leave laws or even the employer’s own policy for leave, the employer can still just provide a special unpaid leave or an unpaid family leave. Or, create a separate special health policy or pandemic policy that addresses the situation so that they allow people

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  • to be absent from work if they are feeling ill or if a family member is ill.

    Employers should also remove any restrictions on the use of paid leave benefits. For example, there are a lot of employers that might have a waiting period before you can use your paid leave time, or they prohibit a negative balance of PTO or vaca-tion hours. Employers can look at ways they can temporarily waive these restrictions so that employees are not concerned about income continuation. That is, they don’t try to come into the workplace when they’re sick because they want to make sure that their income continues. Any efforts to ensure that employees are staying home and taken care of while ill should be taken.

    What kind of issues might arise for employer-sponsored health and welfare plans with the coronavirus? How can employers work to proactively address these issues?Thanks to recent action by the federal government, testing for the coronavirus has now been deemed an essential benefit under the Affordable Care Act and covered by both private health insurance and Medicare and Medicaid. There may be some copays or deductibles that might still apply but many states are in the process of either requesting or requiring their insurers to waive these cost-sharing provi-sions. In either situation it’s still great that the coverage is in fact provided now.

    A secondary issue is the time period for coverage on the health insurance plan for employees who are not actively working, and their ability to continue making insurance premium payments when they’re on a leave of absence. Employers should be proactive and look at their plan docu-ment or their certificate of coverage depending if they’re a self-funded or a fully insured plan and look at the time period that applies for coverage when an employee is no longer actively working and then start conversations with the insurers

    if they want to talk about extending or waiving that period and what actions they would need to take to put those changes into effect.

    For the premium payments, when an employee is on a leave of absence, it’s their obligation to continue making payments of their portion of the insur-ance premium. Typically, employers pay a portion of it and employees pay a portion as well. And while they’re actively working, their portion is deducted through payroll deductions. When they go on a leave of absence, if they continue to receive pay (for example, if they’re using PTO or vacation or sick leave), the employer can still use the payroll deduction to receive their insurance premiums. But when they transition to an unpaid status, that’s when it becomes more complicated and employees could run into an issue where they’re not able financially to continue providing their portion of the premium payments.

    Many employers have existing policies and practices in place that address this situation, but they need to review these and think about what they’re going to do if an employee is not able to continue their portion of the premium payment. The employer has the option to advance the payment with subsequent repayment from the employee when they return to work. But this is a very individual

    total rewards

    Employers need to make sure that there are no penalties that apply if an employee wants to stay at home because they’re feeling ill. For example, if there’s an attendance infraction that typically applies, then the employer should consider waiving that provision on a temporary basis.

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  • situation to each employer, and they need to decide the action they’re going to take or if they’re just going to allow the coverage to lapse at that point.

    What actions should employers be taking now with their variable pay incentive plans and their short-term incentive plans?I’m sure these plans are low priority for a lot of employers right now and I can completely understand with the barrage of other actions needed to be prepared for the coronavirus. But this is a key item that employers should not let sit on the back burner. They should be proactive and get ahead of the curve and start looking at their sales incentive plans and their short-term incentive plans and determine if there’s going to be any impact to these plans during the year, especially now where we’re getting near the end of the first quarter.

    A lot of financial and performance metrics are included in these types of plans, so employers can look at whether or not, based on the current state, or projected future state, of the business, these objectives and metrics are going to be met, or whether they should start thinking about a contingency plan to put in place to make adjustments to these plans. Naturally, employees are going to be very keenly focused and thinking about impacts to their total compensation if there is a busi-ness disruption due to the coronavirus. So, while a contingency plan is likely fine for a short-term incentive plan for most employees, where the employer can implement changes later in the year if certain metrics are not met, other professionals like sales professionals might need more immediate changes to their plan. Especially where their metrics are driven more on a quarterly or even monthly basis for the quotas and other metrics that they must satisfy, there might need to be more imminent action from employers to make adjustments to their sales compensation plans now.

    What kind of wellness benefits or initiatives should employers implement to prepare their workplace for the coronavirus?Right now, employers should really be promoting the use of telehealth services. Many insurance companies have been touting this for years. Over the past five years it’s become increasingly popular. So, to make employees aware of this and take full advantage of it, let them receive initial treatment from the doctor from the comfort of their homes so that they’re not

    coming into the workplace. It just helps reduce the spread of the virus.

    Also, employers should be looking at ways to regularly promote communi-cation on good hygiene, and disease prevention measures in the workplace. However, this doesn’t have to be like a draconian “doom and gloom” e-mail distribution. A lot of employees’ eyes just glaze over when they see those lists of things they should be doing. Think of ways to make it more engaging and creative:

    • Do a lunch and learn. • Make a trivia contest out of it. • Have groups compete against each other in the workplace.

    Come up with creative measures to make sure employees are still getting this very helpful information but do it in a much more interesting format.

    Also, employers should be using a touch-free work environment for those that are still operating in the workplace. No handshakes, no fist bumps, but maybe you can come up with a different way for greeting each other, such as a fun wave or an elbow bump. There are ways to be creative and still have an engaging environment.

    The whole point is you don’t want to incite panic. We’re just getting back to basics and making sure everyone is using good health and hygiene practices. You want to keep a very calm, safe and reassuring environment for everyone in the workplace.

    Special thanks to Assistant Editor Brittany Smith for transcribing the HR.com webcast.

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  • As businesses continue to react and adapt to the curveball being thrown at them in the form of COVID-19, there are practical lessons to be learned that should prove benefi-cial in the future.

    Whether it’s an organization’s nonexistent leave policy, or their lack of work flexibility, the novel coronavirus is shining a bright light on any vulnerabilities an organization might have. While this can be difficult to sift through, it will force organi-zations to reexamine what policies and practices they have in place and whether they should adjust.

    One thing has become clear during what has now been declared a “national emergency” by President Trump: If your organization isn’t technologically equipped to operate with a mostly-remote staff, it’s at a severe disadvantage — now and in the future.

    “Organizations, if they haven’t already, will need to have a much more centralized way to collaborate on work together because those digital needs will become so much more important,” said Laura Butler, senior vice president of people and culture at Workfront.

    In the interim, Butler said she believes organizations that have been forced into having the majority or all of their employees work remotely can leverage this as a new way to evaluate employees while also learning how to better connect the remote workforce going forward.

    “This has the potential to have more organizations hiring people in different locations and seeing that they’re still productive,” Butler said. “If we harness this opportunity, that’s what could happen. There’s also tremendous potential in putting everyone on an equal playing field in terms of getting work done and collaborating and also driving the account-ability of work.”

    Another factor that plays into handling a crisis like the coro-navirus is instilling a strong culture. Organizations that already have one in place can take these situations in stride. Part of

    that strong culture includes a willingness to allow remote work, paid leave options and an overall community that supports employees in tough times.

    “It’s important that you’re checking in with people as human beings and understand what’s going on in their life, particularly in such a stressful event,” Butler said. “We are going to have to create new ways of establishing that sense of community and doing that online. Not everyone has the tools or the skills to manage that effectively virtually. We’re even looking at some of the things on LinkedIn Learning that are helping with virtual learning, such as best tips for working remotely effectively and a lot of those are culture items.”

    Ultimately, Butler said she feels the situation will accelerate the future of work and, as a result, it will likely open up the possibility of a more global work-force for organizations that might have been reluctant to have one based on productivity concerns.

    How the Coronavirus Is Forcing Organizations to Better Prepare for the Future

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    https://www.cnbc.com/2020/03/13/trump-will-hold-a-press-conference-at-3-pm-et-to-discuss-coronavirus-response.html

  • “It’s forcing people to get competent in how to manage virtual people quickly and sometimes that’s a barrier,” Butler said. “This is going to force them to develop that competency and challenge the status quo.”

    Google (from) HomeA week ago, Google sent a memo to staff recommending that employees in Washington work from home. It has now expanded that request to all of its nearly 100,000 workers in North America, reports CNN. Google has also said it is developing a fund to provide sick leave pay to non-full time employees who currently don’t have the benefit and are affected by coronavirus.

    Amazon Won’t Dock for AbsencesAmazon is relaxing its attendance policy for warehouse workers and other employees due to the continued spread of the coronavirus, reports CNBC. Annie Palmer writes that the company informed employees that it will not count any unpaid time off should they need to take it during the month of March. Amazon made the change to ensure there are no repercussions for needing to stay home due to illness.

    Microsoft Not Powering DownMicrosoft has committed to paying normal hourly wages to non-employees providing services to Microsoft workers, such

    as bus drivers and cafeteria workers, even if they spend less time on the clock because of coronavirus, writes Jordan Novet of CNBC. The reason for this decision, CNBC reported, is that many full-time Microsoft employees will be working remotely during the next few weeks, thus it will likely result in less hours for hourly employees.

    The Chinese ResponseGiven that China was the starting point for coronavirus, businesses there are in the recovery phase. Harvard Business Review has provided a list of 12 lessons for leaders elsewhere to extract from how Chinese organizations handled the outbreak so they can apply it to their business.

    Brett Christie is the managing editor of Workspan Daily.

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    “[The novel coronavirus] is forcing people to get competent in how to manage virtual people quickly and sometimes that’s a barrier. This is going to force them to develop that competency and challenge the status quo.” – Laura Butler, senior VP of people and culture, Workfront

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    https://www.cnn.com/2020/03/10/tech/google-work-from-home-coronavirus/index.htmlhttps://www.cnbc.com/2020/03/09/amazon-adjusts-attendance-policy-for-warehouse-workers-amid-coronavirus-outbreak.htmlhttps://www.cnbc.com/2020/03/05/microsoft-will-pay-hourly-workers-regularly-as-it-faces-coronavirus.html?__source=sharebar|email&par=sharebarhttps://www.cnbc.com/2020/03/05/microsoft-will-pay-hourly-workers-regularly-as-it-faces-coronavirus.html?__source=sharebar|email&par=sharebarhttps://hbr.org/2020/03/how-chinese-companies-have-responded-to-coronavirushttps://hbr.org/2020/03/how-chinese-companies-have-responded-to-coronavirus

  • Amid growing concern over the impact of COVID-19, large employers are implementing a series of broad-reaching policies to support employees and their families as the virus spreads.

    This is according to a survey of 95 large employers by Business Group on Health, which found that employers are championing initiatives that include ensuring employees are paid during the pandemic, adding more flexibility to their health benefit plans, and expanding working from home options.

    “The fact that large employers are going above and beyond in this difficult time to support their employees and fami-lies is commendable and not surprising,” said Steve Boddy, content director at WorldatWork. “I would expect participation numbers to continue rise as we journey down this unprece-dented path. Even with the additional forthcoming aid from the federal government, additional benefits provided by employers like pay continuation, workplace flexibility with work-from-home options, and better access to telemedicine, EAPs and enhanced Rx programs go a long way as we work through this fluid situation.”

    The “Large Employer Response to Coronavirus (COVID-19) Survey, Part II,” found that employees are continuing to receive pay through leave and pay continuation programs.

    For employees who have been exposed to the virus or are exhibiting cold/flu symptoms and can’t work from home:

    • Three-quarters of employers (75%) are providing access to existing paid sick leave or PTO programs.

    • In addition to standard leave programs, one-third of employers (34%) are continuing to pay affected employees unable to work, and another 25% are considering doing so if the situation continues to escalate.

    • Nearly a quarter (22%) are adding emergency paid leave or additional sick leave, while another 27% will do so as needed.

    For employees who are not typically eligible for paid leave:

    • Almost one in four employers (23%) will continue to pay employees not eligible for leave if they are quarantined.

    • 16% of employers will do so for employees who are ineligible for leave and are symptomatic while 14% will pay employees who are caring for a symp-tomatic family member.

    “Employers have increased support for employees and their families during these challenging times,” said Brian Marcotte, president and CEO of Business Group on Health. “Many are implementing pay continuation polices and additional paid time off in the form of emergency leave or addi-tional leave, especially for employees who are in roles not conducive to working from home.”

    On top of waiving or reducing costs for needed testing for COVID-19:

    • Over two-thirds of respondents (68%) are actively encouraging employees to use telemedicine during the COVID-19 crisis.

    • Over nine in ten respondents (93%) are encouraging employees to utilize EAPs during the crisis.

    • For U.S. health plans:

    Broadening Support for Employees

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    https://www.businessgrouphealth.org/resources/large-employer-response-to-coronavirus-part-iihttps://www.businessgrouphealth.org/resources/large-employer-response-to-coronavirus-part-ii

  • ― Over two-thirds of respondents (69%) either have or will reduce or waive early prescription fill limits to allow patients with chronic conditions to maintain a 30-day supply of medication on hand, if warranted. ― Over one-third of respondents (35%) either have or will reduce or waive out-of-pocket cost for mail-order prescription drugs.

    • For benefit policies outside the U.S.: • 21% of respondents are either in the process or have completed successful negotiation waiver of coronavirus related exclusions from medical and life insurance policies.

    Employers assisting with childcare needs, expanding work at home policies:

    • Nearly all employers either have or will implement work at home policies for employees with possible expo-sure to the virus.

    • Slightly fewer (91%) respondents have or will adopt work at home policies for employees with a cold or flu-like symptoms.

    “Employers that have been hesitant to adopt work-at-home policies in the past are finding that this flexibility is delivering immediate value in supporting business continuity plans,” said

    Marta Turba, vice president of content management at WorldatWork. “Employers are focused on workforce protection, and health and well-being is being prior-itized in every way over productivity.”

    Brett Christie is the managing editor of Workspan Daily.

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    “Employers that have been hesitant to adopt work-at-home policies in the past are finding that flexibility is delivering immediate value in supporting business continuity plans. Employers are focused on workforce protection, and health and well-being is being prioritized in every way over productivity.”– Marta Turba, VP of content management, WorldatWork

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  • For the week ending March 21, 2020, the U.S. Labor Department reported a total of 3.28 million new unemployment insurance filings. For the week prior, that number was 211,000.

    The jobless claims for the week ending March 28 – published Thursday, April 2 – set a record for the second week, with jobless claims doubling to a total of 6.6 million U.S. workers filing new unemployment benefits.

    How companies react right now can set them apart as leaders focused not only on the health of their organizations, but also as examples of stewards for their employees through the coming turbulence.

    As much of the world grinds to a halt, we have all been witness to heroic levels of dedication from what have been dubbed the “front-line workers” during this crisis: health-care professionals, grocery and warehouse professionals, and delivery and transportation providers.

    We have also seen much of the hospitality, service and manu-facturing industries slow, prompting innovative approaches by leaders to maintain revenue streams, engage communities and take care of employees.

    IMMEDIATE RESPONSESADP, Facebook, and Workday sent their entire workforce to work from home and granted all employees one-time imme-diate bonus payments ranging from $1,000 at ADP and Facebook to a full two weeks of pay per employee at Workday to assist with any unforeseen COVID19-related expenses.

    Tech giants Google, Microsoft, Salesforce and Twitter all made commit-ments to their hourly and campus support staff personnel that they would continue to be paid during the on-site shutdown, regardless of whether they were physically present to work due to site closures or any COVID19-related issues preventing on-site, in-person work. Twitter will also reimburse workers for expenses related to setting up their home office.

    Amazon, which depends heavily on front-line workers in warehouses, delivery personnel, and data center staff, has increased hourly rates by $2 per hour. Whole Foods, a subsidiary of Amazon, did the same for all its hourly workers.

    But it isn’t enough.On March 30, Amazon and Instacart

    workers went on strike to demand addi-tional pay and hazard pay to compensate their heightened risk exposure, and the incredible demand placed on this essen-tial workforce during this time.

    Practical Measures to Take for Organizational Stability

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    https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/jobless-claims-soar-covid19-coronavirus-unemployment.aspxhttps://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/jobless-claims-soar-covid19-coronavirus-unemployment.aspxhttps://www.shrm.org/ResourcesAndTools/hr-topics/talent-acquisition/Pages/Jobless-Claims-April-2-COVID19-Coronavirus-Unemployment.aspxhttps://www.shrm.org/ResourcesAndTools/hr-topics/talent-acquisition/Pages/Jobless-Claims-April-2-COVID19-Coronavirus-Unemployment.aspxhttps://www.marketwatch.com/story/guid/c7385d11-9543-465f-ba91-c9b86e11972e?siteid=rss&utm_campaign=Feed%3A%20marketwatch%2Fmarketpulse%20%28MarketWatch.com%20-%20MarketPulse%29&utm_medium=feed&utm_source=feedburnerhttps://www.cnbc.com/2020/03/20/facebook-coronavirus-moves-could-help-restore-its-reputation.htmlhttps://www.cnbc.com/2020/03/20/facebook-coronavirus-moves-could-help-restore-its-reputation.htmlhttps://www.businessinsider.com/google-facebook-twitter-pay-hourly-workers-offices-remote-2020-3https://blog-aboutamazon-com.cdn.ampproject.org/c/s/blog.aboutamazon.com/operations/amazon-opening-100000-new-roles?_amp=truehttps://www.cnn.com/2020/03/30/tech/instacart-amazon-worker-strikes/index.htmlhttps://www.cnn.com/2020/03/30/tech/instacart-amazon-worker-strikes/index.html

  • “Workers across the service industry are suffering. And yet they are indispensable during this critical time,” said Veena Dubal, a labor law expert and associate professor at the University of California, Hastings College of the Law. “The fact that these strikes are happening simultan