Employee Relations

Stirring the Pot: Lessons in Workplace Retaliation from Chipotle

Workplace retaliation remains a significant concern in today’s professional landscape, often hindering employees from exercising their rights without fear of retribution. Recently, Chipotle Mexican Grill agreed to a $2.9 million settlement to resolve allegations of workplace retaliation involving shift changes and sick time regulations in its Seattle locations. This case serves as a crucial example of why HR professionals must stay vigilant and proactive in preventing and addressing workplace retaliation.

Understanding Retaliation in the Workplace

When engaging in the workplace, employees have certain expectations. They anticipate fair treatment, proper compensation, and an overall productive experience as they contribute to the team. However, not every employee enjoys this kind of positive environment. Whether it’s due to poor management or systemic issues, some employees encounter unfair treatment at work. In such cases, these employees may need to exercise their rights to ensure they are treated fairly. Unfortunately, this can expose them to the risk of workplace retaliation.

Forms of Workplace Retaliation

Workplace retaliation can manifest in various ways. Here are some common examples:

  • Demotion or Unwanted Transfers: A sudden reduction in job rank or responsibilities or being moved to a different role or location without consent.
  • Schedule Changes/Reduction in Hours: Unwanted adjustments to work schedules or reduced hours.
  • Hostile Work Environment: Creating an intimidating or uncomfortable workplace.
  • Reducing or Withholding Pay: Unjust pay cuts or delays.
  • Heightened Surveillance: Excessive monitoring of an employee’s work activities.

Despite workplace retaliation being illegal, HR managers must be prepared to address any allegations that may arise. Although tackling these situations can be challenging, addressing them professionally and in compliance with the law benefits the HR team and the company.

Case Study – Chipotle’s Settlement

A notable example of workplace retaliation involves Chipotle Mexican Grill, which recently settled allegations of violating shift changes and sick time regulations. In this case, Chipotle faced accusations of:

  • Retaliation against Employees for Exercising Rights: This included retaliating against an employee for calling out sick, and also retaliation toward an employee who declined to work shifts changed with less than 14 days’ notice.
  • Violating Seattle’s Secure Scheduling Ordinance: Employers are required to publish work schedules at least 14 days ahead of time and must honor employees’ rights to refuse any additional hours that weren’t part of the original schedule.
  • Retaliating Against an Employee for Having a Second Job: An employee requested not to be scheduled at specific times due to a second job, leading to alleged retaliation.

These accusations culminated in Chipotle agreeing to a settlement of $2.9 million, distributed among 1,853 employees in Seattle. Additionally, Chipotle will pay $7,300 to the City of Seattle.

It is worth noting that instances of retaliation may not always indicate that the entire company is malicious. Sometimes, it can be a few leaders making poor decisions. Nonetheless, even one instance of retaliation can damage the company’s reputation and require significant remediation efforts.

Key Practices to Prevent Retaliation

To create a fair workplace environment and prevent retaliation, HR professionals should consider implementing the following key practices:

Clear Policies and Training

  • Establish company policies on retaliation, ensuring they are clear, well-communicated, and understood by all employees. Offer regular training to management on fair practices and compliance with labor laws.

Confidential Reporting Mechanisms

  • Implement confidential systems that allow employees to report workplace issues or retaliation without fear of retribution. These mechanisms should be easily accessible and trusted.

Prompt Investigation and Action

  • Develop a structured process for investigating claims of retaliation and take prompt action to address any violations. Swift responses send a message that retaliation will not be tolerated.

Secure Scheduling and Fair Compensation

  • Adopt scheduling practices that respect employees’ work-life balance and comply with state and federal laws. Ensure fair compensation for additional hours or shift changes.

Open Communication and Employee Involvement

  • Encourage open communication among HR, management, and employees. Involve staff in policy development and decision-making processes to foster a sense of inclusion and trust.

By implementing these practices, HR professionals can create a workplace that not only avoids retaliation but also promotes a positive and supportive culture, where employees feel valued and respected.

Committing to a Culture of Safety

The Chipotle case underscores the importance of HR professionals taking proactive measures to prevent retaliation and ensure compliance with labor regulations. By implementing the strategies discussed, HR can effectively prevent retaliation and create a safer workplace. This not only benefits employees but also contributes to a healthier, more productive workplace for all.

Employee Wellbeing Unpacked: Trends and Insights from the 2024 Wellbeing and Voluntary Benefits Survey

A recent survey conducted by Buck, a Gallagher company, sheds light on U.S. employees’ perceptions of their well-being and examines the strategic role that voluntary benefits play in enhancing employee wellness while also serving as a tool for companies to attract and retain top talent. Here’s a breakdown of the key findings from the 2024 Wellbeing and Voluntary Benefits Survey:

Overall Wellbeing

There’s a notable improvement in employee wellbeing, with almost half of the survey respondents reporting improvements in their physical wellbeing and work/life balance. However, there remains a significant demand for additional resources to support wellbeing in all areas, as nearly 20% of those surveyed have experienced a decline in their physical, mental, and financial health.

Financial Wellbeing

Even without the presence of a recession, inflation and rising interest rates have led to increased household expenses. Despite two-thirds of employees considering themselves to be in a financially stable position, overall financial wellbeing scored the lowest among all aspects of wellbeing. Alarmingly, 58% of employees are living paycheck-to-paycheck, and 55% feel their financial situation has stagnated or worsened over the past year.

Role of Voluntary Benefits

The perceived value of benefits provided by employers is on the rise, with 75% of employees now seeing higher value in employer-sponsored benefits compared to purchasing similar services independently—a significant increase from 61% in 2022. Moreover, 77% of employees view voluntary benefits as a crucial element of a comprehensive benefits package, up from 68% in the previous survey. Employees are increasingly recognizing the significance of voluntary benefits in their wellbeing initiatives, with 86% acknowledging their importance and 74% identifying direct cost savings resulting from these programs.

These findings underscore the critical role that comprehensive wellbeing strategies and voluntary benefits play in supporting employee wellbeing, highlighting the need for ongoing efforts to address the multifaceted aspects of employee wellness in today’s ever-changing economic landscape.

Access the full report here.

HR’s 2024 Challenge: New Survey Spotlights Workplace Stress

An image of a stressed woman representing workplace stress.

PwC’s Global Workforce Hopes and Fears Survey 2024 unfurls a tapestry of insights, painting a vivid picture of a workforce at the cusp of significant change and increasing workplace stress. As the global corporate landscape continues to evolve rapidly, the survey serves as both a beacon and a challenge for HR leaders: embrace the transformation or risk being left behind amid growing concerns about workplace stress and its impacts.

Intriguing Findings for HR Leaders:

  • The Challenge of Change Fatigue: More than half of employees reported feeling swamped by the sheer volume of changes at work. This isn’t just about adjusting the sails; it’s about ensuring that the crew understands and believes in the direction of the journey. This confusion can seriously deflate engagement and zap productivity.
  • The Burden of Increased Workloads: Nearly 50% of the workforce reports they’re shouldering more now than ever before. This is not just a statistic; it’s a cry for help. As workloads balloon, so do stress levels, pushing employees perilously close to the edge of burnout.
  • The Anxiety of Job Security: While there’s a sparkle of optimism about the future, shadows of job security concerns loom large, with ongoing changes stirring up deep-seated anxieties about the stability of their roles.

Dynamic Strategies for HR Leaders:

  • Supercharge Communication and Engagement: Dive deep into the power of words and transparency. Employees will feel more positive about their future at the company when changes are communicated effectively. It’s time for HR to channel its inner broadcaster, turning strategic changes into compelling narratives that captivate and motivate the team.
  • Champion Upskilling and Reskilling: With 40% of the workforce eyeing the horizon—where generative AI and other techs redefine roles—it’s imperative to keep everyone not just afloat but adept at navigating these new waters. Position continuous learning as the linchpin in your strategy to keep talent relevant and razor-sharp.
  • Elevate Employee Well-being and Reduce Workplace Stress: When half your workforce feels overburdened, it’s clear: the well-being wagon needs more than just a tune-up. Initiatives that promote a healthier work-life blend aren’t just perks; they’re must-haves to energize and sustain your team.

Charting the Future

The insights from PwC’s 2024 survey spell it out loud and clear for HR: this is a pivotal moment. Addressing the red flags of change fatigue, mounting workplace stress, and job security fears is not just necessary; it’s foundational to thrive in this era of transformation. By weaving together robust strategies focused on impactful communication, proactive learning, and unwavering support for well-being, HR leaders can forge a workforce that’s not only ready but eager to excel in the dynamic world of tomorrow. Engage, educate, and empower—this is how we turn potential into performance.

Retention Is Not Just a Trending Buzzword in HR, Here’s Why

Shot of two businesspeople shaking hands during a meeting in an office.

Given all the tech layoffs and the Great Resignation that have been dominating headlines recently, we have been hearing a lot about employee retention. However, “Retention” is not a new concept, even though it may be a trending buzzword in the human resource industry. In fact, a good employee retention program has been a cornerstone strategy for not only retaining employees but also attracting them for decades. Why? Employee retention is a serious issue that many organizations have faced or will face.

There are many reasons employee retention is key to a healthy business. One of the main reasons that makes sense from an economic standpoint is that employee turnover is costly. It is more efficient keeping a quality employee than trying to recruit and then training another replacement to perform at the same level. Not only that, but unexpected employee turnover can severely disrupt overall performance within your organization. Furthermore, on-going employee turnover is time-consuming, can affect the morale of the company, lead to bad performances, and decrease your ability to attract new talent. In addition, there are record shortages of skilled employees and it is increasingly difficult to attract them, especially if your business has a reported high turnover rate.

Coming up with a good employee retention program is a key strategy for retaining the employees you want to keep on board, and it all starts with the basic constructs of transparency and fairness. Transparency, often an overlooked construct, leaves lasting impressions on your employees and potential hires. Fairness along with transparency with your employees and potential hires builds trust within your organization. For example, fair compensation, employee/employer trust, job security, opportunities for growth, and the ability to use special skills have been reported as top factors in job satisfaction by employees. Another key factor in a good employee retention program is engagement. Engaging your employees helps further build enthusiasm as well as helps motivate them to be productive. Finding different ways to engage employees can be time consuming but the payoff is worth it. Organizations that focus on employee retention see increased productivity, improved employee morale, improved quality of work, and reduced turnover, which makes it worth their time and financial investment.

In a nutshell, a good employee retention program involves strategizing on how to keep employees motivated and focused so that they are productive and beneficial to the organization. By prioritizing employee retention, organizations are retaining their talented and motivated employees. Ultimately, while many buzzwords come and go, retention will remain a top priority for HR leaders and will probably be “trending” for years to come.

Increasing Employee Retention

Close-up image of business people giving high five after finishing work on big project

As a Human Resources manager, you know that employee retention is one of the most important aspects of having a reliable and seasoned workforce. After the so-called “Great Resignation” over the last two years, retention is of the utmost importance to maintaining your company’s positive corporate culture, and more importantly increasing productivity.

When employees leave, it can cost the company monetarily in terms of both lost productivity, time-intensive hiring processes, and ever-growing training costs. In addition to damaging morale, it can be difficult to find qualified replacements for top performers at a moment’s notice. Here are a few key strategies from successful HR professionals to increase employee retention:

Keep it fun and positive! 
Employees are more likely to stay with a company if they enjoy their work and feel valued by their employer. A positive work environment is one where employees feel respected, appreciated, and supported. It’s also a place where employees feel like they can contribute to the company’s success and make a difference.

Make it worthwhile. 
Employees need to be paid fairly for their work, and they also need to have access to benefits that are important to them. This could include health insurance, retirement plans, paid time off, and tuition reimbursement.

Make them driven. 
Employees want to feel like they are growing and developing in their careers. By providing opportunities for growth and development, you can help employees stay engaged and motivated. This could include offering training programs, tuition reimbursement, or mentoring programs.

Reward effort. 
When employees do a good job, it’s important to let them know. Recognition and rewards can be as simple as a thank-you note or a public shoutout. They can also be more formal, such as a bonus or a promotion.

Listen to them. 
Employees want to feel like their voices are heard. By taking the time to listen to employee feedback, you can learn what’s important to them and make changes to improve the work environment.

Create team members. 
Employees are more likely to stay with a company if they have a good relationship with their manager and other employees. By taking the time to get to know your employees and build relationships with them, you can create a more positive and supportive work environment.

Be Flexible. 
Many employees appreciate the ability to work from home or have flexible hours. This can help them to balance their work and personal lives, which can lead to increased job satisfaction and retention.

Be inclusive. 
Employees who feel like they are part of a welcoming and inclusive workplace are more likely to be happy and productive. By creating a culture of inclusion and diversity, you can attract and retain the best talent from all backgrounds.

By following these strategies, HR managers can help to improve employee retention and create a more productive and successful workforce. By taking the time to implement these effective retention strategies, HR managers can help to create a more productive and successful workforce.

Amazon’s $35M Fine: A Cautionary Tale of Employee Surveillance and the Quest for Balance

Ever since the pandemic gave way to a rise in remote and hybrid work models, a new issue has arisen. How can employers ensure employees meet productivity levels when they are not in the office? The need to confirm that employees remain efficient while working offsite has led to an upsurge in employee monitoring software. With an overall interest in employee tracking software having jumped up 122% since 2022, it’s clear that leaders are hoping to receive some benefit from the many surveillance options available. While employee monitoring offers benefits such as measuring productivity levels, identifying performance issues, and enhancing security, there are ways that companies can take it too far.

Challenges of Excessing Monitoring

One needs to look no further than Amazon for an example of how excessive monitoring can backfire on the company. A 2023 study reveals that 41% of Amazon employees feel pressured to work faster while 52% feel burned out. Of those who worked at Amazon for over three years, 60% declared they were feeling burnt out. These extreme levels of surveillance coupled with a push for productivity can actively harm employee mental health and lead to a high-pressure environment, which isn’t sustainable for employee well-being.

Financial Repercussions

Companies can also face financial repercussions for extreme monitoring, which Amazon recently experienced as well. According to the Commission Nationale Informatique & Libertés (CNIL), the French data protection agency, Amazon’s French warehouse was using an “excessively intrusive system” to keep track of employees’ productivity levels and breaks. The CNIL described how this level of monitoring is dangerous, explaining how employees would potentially have to “justify each break or interruption.” Amazon was fined €32 million (approximately $35 million) and either must face the costs or use extra resources to appeal the decision.

Impact on Employee Well-Being

While Amazon’s conditions are more extreme than one would expect from a workplace that offers remote or hybrid work options, the lessons remain in how surveillance affects employee well-being. In a 2023 survey from the American Psychological Association, monitored employees were more likely to report experiencing “negative psychological outcomes” than those who were not monitored. Furthermore, 28% of monitored employees reported experiencing negative effects on their mental health while at work, and 56% felt stressed out at work. This isn’t to say that employers should never monitor employees, as companies have a right to know how their business is running. Instead, to foster a healthy work culture, employers must ensure that their employee monitoring practices are ethical.

Principles of Ethical Monitoring

Practicing ethical monitoring starts with transparency. In a survey from Gartner, only 30% of employees were comfortable with having their employers monitor their emails. However, when employers explained their reasoning, the number went up to 50%. Without an explanation, employees can assume there is no healthy level of trust in the workplace. Employers must also be mindful of how surveillance affects their employees’ privacy. If employers can fully disclose how and where surveillance data is stored and for how long, employees can feel more comfortable about being monitored while working from home. Above all else, employers must remember that employees are people. Someone who is usually a high-performing employee will not always be at their maximum productivity levels, especially as life can be unpredictable. If concerned about productivity levels, employers can always encourage employees to be open about their situation, and then they can work together to find a solution that will benefit everyone.

While employers can reap many tracking benefits from employee surveillance tools, they must remain aware of how these tools can affect employees. If employers monitor their workers in a way that they feel there is a lack of trust and privacy, then both employee well-being and the company’s overall workplace culture could be on the line. Companies have a right to track performance metrics, and ethical surveillance practices can allow that to exist alongside employee wellness. 

The Reality of Unlimited PTO: A Double-Edged Sword for HR

An image of an aircraft and purple straw hat representing a worker utilizing unlimited PTO.

Imagine having the freedom to take as much time off as you want without worrying about accruing vacation days. Sounds like a dream, right? Welcome to the world of unlimited paid time off (PTO). However, as HR professionals, it’s crucial to understand both the advantages and hidden pitfalls associated with this trending policy.

The Financial Freedom

From a financial standpoint, unlimited PTO is a win for companies. Traditionally, businesses carry hefty liabilities for unused vacation days, costing the U.S. between $224 billion and $318 billion annually. By switching to unlimited PTO, companies can wipe these obligations off their books, saving billions. This cost-saving measure is particularly enticing to corporate balance sheets, explaining its rising popularity, especially in the tech sector.

The Employee Conundrum

Here’s where it gets interesting. Despite its enticing name, research shows that employees on unlimited PTO plans sometimes take fewer days off compared to those with traditional plans. A 2018 study by Namely found that employees with unlimited PTO took an average of 13 days off per year, compared to 15 days for those with traditional PTO. In 2022, Namely repeated the survey and discovered that while workers with unlimited PTO took slightly more days off annually, overall, they’ve been taking fewer vacation days than they did before the pandemic.

The Hidden Pressures

Unlimited PTO can create a culture of guilt and hesitation. Employees worry about taking “too much” time off, fearing it might reflect poorly on their work ethic. This leads to “vacation deprivation.” Moreover, some employees resort to “hush vacations,” where they work remotely without informing their employers, to avoid using their PTO. This highlights a lack of trust and support within the workplace.

The Inequity and Administrative Burden

Unlimited PTO policies can also breed inequity. Diligent employees might take less time off, while others may exploit the system, creating resentment and imbalanced workloads. Additionally, the lack of a structured policy places a heavy administrative burden on managers, who must navigate leave requests without clear guidelines. This inconsistency can lead to feelings of unfairness and dissatisfaction among staff.

Creating a Supportive Culture

For HR professionals, the magic lies in fostering a supportive culture that genuinely encourages time off. It’s crucial to create an environment where taking vacation is normalized and endorsed by leadership. This means setting clear expectations, using technology to monitor vacation use, and ensuring executive buy-in to model and promote healthy work-life balance.

The Bottom Line

Unlimited PTO offers financial perks to companies but can be detrimental to employee well-being and organizational culture if not handled with care. HR professionals must balance these policies with genuine support and clear guidelines to ensure employees can fully enjoy their time off. By addressing hidden pressures and fostering a culture that values rest and recuperation, HR can transform the promise of unlimited PTO into a reality that benefits both the organization and its employees.

So, while unlimited PTO might sound like a golden ticket, it’s up to HR professionals to turn that potential into a truly rewarding experience for everyone.

Comprehensive Employee Well-being: A Strategic Imperative

Colleagues promoting employee well-being in the workplace.

In today’s evolving workplace landscape, ensuring employee well-being is more critical than ever. From prenatal care to corporate wellness programs and financial health, HR professionals must adopt a holistic approach to support their workforce. Recent developments and research underline the importance of these initiatives, offering valuable insights for HR leaders.

Paid Leave for Prenatal Care

New York’s landmark legislation mandating up to 20 hours of paid leave for prenatal care marks a significant step towards prioritizing women’s health in the workplace. This policy, effective January 2025, applies to all employers and ensures pregnant employees can attend prenatal appointments without financial concerns. Such progressive policies not only support the health of employees but also set a precedent for other states, highlighting the growing recognition of the need for comprehensive employee benefits.

The Economic Benefits of Corporate Wellness Programs

Corporate wellness programs are proving to be a sound investment for companies, with 95% reporting a positive return on investment (ROI) from these initiatives (Source 2). Research shows that comprehensive wellness programs, particularly those supported by C-suite leaders, yield the highest returns. Organizations with robust wellness initiatives see improved employee participation, increased productivity, reduced healthcare costs, and lower turnover rates. For HR professionals, integrating holistic wellness programs is essential for fostering a healthy and engaged workforce.

Addressing Financial Well-being in the Workplace

Financial stress significantly impacts employee productivity and engagement, with 57% of employees identifying finances as their primary stressor (Source 3). Employers can mitigate this by offering financial well-being benefits, such as financial education, earned wage access (EWA), and support for financial planning. These initiatives help employees manage their finances more effectively, reducing stress and enhancing overall well-being. Prioritizing financial wellness is a strategic move for HR professionals to ensure a motivated and productive workforce.

Importance of Holistic HR Practices

Understanding and implementing these interconnected elements of employee well-being is crucial for HR professionals. The integration of paid prenatal leave, comprehensive wellness programs, and financial well-being benefits can significantly enhance employee satisfaction and retention. By addressing these areas, HR professionals can create a supportive and productive work environment that meets the diverse needs of their workforce. This holistic approach to employee well-being not only improves individual outcomes but also drives organizational success.

Beyond the Paycheck: How to Build a Workforce That Stays

Executives shaking hands in the meeting at office

In today’s competitive landscape, retaining top talent is as critical as attracting it. This infographic distills five key strategies for enhancing employee retention, ensuring your organization not only attracts but also maintains a high-performing and committed workforce.

Sources: Great Place To WorkKeep FinancialNestor UpHarvard Business ReviewSaint Mary’s University of MinnesotaCultureMonkey

The Four-Day Work Week: Embracing Change for a Better Work-Life Balance

Young businessman and woman walking in the city

In recent years, the concept of a four-day work week has gained traction as a means to enhance work-life balance and employee well-being. As companies recognize the benefits, an increasing number are transitioning to this alternative work arrangement. With companies like Bolt, Qwick, Microsoft, and Amazon leading the way, the four-day work week is revolutionizing how we approach work.

Historical Perspectives and Modern Adaptations

The concept of reducing work hours has a historical foundation. In the 1920s, Henry Ford discovered that productivity plateaued after 40 hours of work per week. This realization prompted him to adopt the 40-hour workweek, subsequently popularized by the Fair Labor Standards Act (FLSA) in 1938. While the FLSA does not define full or part-time employment, it established the 40-hour workweek as a standard. However, in the current era, companies are reevaluating this standard and experimenting with innovative approaches like the four-day work week to foster better work-life balance and maximize employee potential.

Increased Productivity and Collaboration

Bolt Financial’s successful experiment with the four-day work week exemplifies the positive impact on productivity. After testing the concept for three months in 2021, Bolt made the change permanent from January 1st, 2022. The company’s founder noted that the focus on collaborative work during the four working days ensured that meetings did not encroach on valuable Friday time. By optimizing collaboration and minimizing distractions, the company witnessed a boost in productivity, leading to better outcomes and employee satisfaction.

Improved Work-Life Integration: The Qwick Example

Qwick, an innovative staffing platform, recognizes the importance of work-life integration and has implemented a four-day work week. The company’s decision reflects their commitment to creating a supportive and fulfilling work environment. Qwick’s CEO emphasizes that the team is the foundation of their mission, and by offering a four-day work week, they aim to align their workplace practices with their overall vision. This change allows employees to enjoy extended weekends, providing time for personal pursuits, family commitments, and self-care, resulting in improved work-life integration and overall well-being.

Employee Well-being and Engagement

A shorter work week significantly impacts employee well-being, leading to higher job satisfaction and increased engagement. In 2019, Microsoft Japan conducted a four-day work week experiment, witnessing a remarkable 40% increase in productivity and greater employee satisfaction. When employees have more time to rest, rejuvenate, and pursue personal interests, they bring renewed energy and focus to their work. Furthermore, a compressed work schedule demonstrates an employer’s commitment to employee welfare, nurturing loyalty, motivation, and a sense of belonging within the organization.

Environmental Sustainability

The benefits of a four-day work week extend beyond personal well-being and productivity. By reducing the number of commuting days, companies can contribute to a significant reduction in carbon emissions and alleviate traffic congestion. Fewer work days also mean reduced energy consumption in office spaces, leading to cost savings and a smaller ecological footprint. Embracing the four-day work week aligns with sustainable practices, demonstrating corporate responsibility and a commitment to environmental stewardship.

The shift towards a four-day work week represents a transformative approach to work, prioritizing employee well-being and fostering a healthier work-life balance. The success stories of companies like Bolt, Qwick, Microsoft, and Amazon, coupled with historical context, highlight the benefits of this paradigm shift. As more organizations embrace change, we can envision a future where employees are happier, more engaged, and empowered to lead fulfilling lives both inside and outside of the workplace.