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Exploring new ways to look at employee turnover

HR professionals have echoed time and time again that one of the most costly ventures for companies when it comes to personnel are the costs associated with employee turnover. Statistically speaking, employee turnover can cost anywhere from one month’s pay to several year’s pay depending on the level and rank of the vacated position. Because turnover is so costly, companies need to pay attention to it. One of the best ways to minimize this expense is to pay employee’s more. The more satisfied employees are with their pay, work environment and company culture, the more likely they are to stay with the organization. This dilemma isn’t always easy for companies, though. For instance, it probably doesn’t seem like the organization has much to lose if they lose an employee who is no longer engaged with their work, is angry or out-of-touch with the company and its goals and priorities. But, if the company loses and motivated, hard-working employee, it’s certainly a loss. ...

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401(k) Leak and How to Prevent It

You may not know what we mean when we say "401(k) leak," but you've probably seen it happen. A leak is any permanent removal of account balances. The problem inherent in them is obvious: if balances are not eventually replaced, then participants may face retirement with shortages on their accounts. One of the most common and most unmanageable forms of leakage results from changing jobs or permanently separating from their employer. At that juncture many participants opt to cash out their plan rather than transitioning it to an IRA or simply just leaving it with their former employer's plan. Less common are financial hardship withdrawals, which are limited by the criteria necessary to gain permission for them. But the fact that these withdrawals are sanctioned by the plan's terms makes them the most difficult to prevent. However, if these are the only types of leaks permitted under your plan's terms, you may find that the overall number of leaks decreases sharply. The final type of leak, are those due to ...

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Starbucks expands employee benefits to include free transportation to work

Starbucks has entered into an agreement with the transportation company Lyft to now offer employees free transportation to and from work on a daily basis. According to Lyft, it will begin to provide more Starbucks employee benefits to baristas in the months to come. This benefit is the latest in a list of unique, employee-centric benefits that the coffee company offers to its employees. Forbes recently reported that more individuals are leaning toward jobs at Starbucks to take advantage of the unique employee benefits that they can count on. One major benefit is education. Employees can obtain associates, bachelors and master’s degrees through Arizona State University’s online program. Benefits differ for Starbucks employees at different levels in the organization. Baristas are not necessarily eligible for all of the same benefits as other full-time salaried employees. Lyft is a transportation ride-sharing company that’s based out of San Francisco. The company oversees what they ca ...

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Defining an at-will employee

Employment relationships can be similar to marriage relationships. Essentially, the end of an employment relationship can bear similar qualities to a divorce arrangement. In a “no-fault” divorce, one spouse can end a marriage for any reason they choose. The label says it all. In many states, individuals can end a marriage rather quickly if there are no custody or financial disputes that need to be settled. At-will employment arrangements are very similar. “At will” employment essentially means that an employer can fire someone at any time for any reason. In the same light, an employee has the right to leave a job whenever they chose and for whatever reason they choose. In most cases, professionalism and courtesy govern the way these situations are handled. So given that both the employer and the employee have the right to terminate the relationship whenever they want to if they so choose, why are there some many lawsuits and court cases? Lawsuits against employees typically ...

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Employee or contractor? DOL says most are employees

Many employers are faced with questions when it comes to the classification of employees versus contractors. Having each type of workers has unique advantages and disadvantages both for the individual and the organization. While organizations might often try to classify some workers as contractors, the Department of Labor recently released an interpretation that would make many of those who are classified as contractors misclassified workers who should be considered employees. The department released the interpretation after receiving numerous complaints for individual workers who felt that they were misclassified. The conclusion is that under the Fair Labor Standards Act (FLSA), most workers should be classified as employees. Misclassification has tax implications for organizations. As for employees, it’s vitally important that they are properly classified for wage protections, appropriate overtime compensation and unemployment insurance coverage. According to the DOL, the “Economic reali ...

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