Early in my career I hired someone who came to us from local government where compensation information was publicly available. Right after she started, a coworker asked about her compensation, which she shared. Since she was paid more than her longer tenured peer, it created quite the fuss. At that point, sharing compensation at work was taboo. Now, there’s a push to open those conversations so employees can assure compensation equity. Since 2020, nine states, including Maryland, Colorado, Nevada, Connecticut, California, Rhode Island, Washington, Illinois, and New York have passed pay transparency laws. An additional 15 states, including Michigan, have pay transparency laws pending. What does this mean for Michigan based employers? If you don’t have a defined compensation system with grades and ranges and well-organized data, now is the time to develop one. Whether you intend to share compensation information or not, you will want to ensure that you are compensating employees equally for similar work. Whether or not the State of Michigan enacts the transparency laws that were introduced this spring, having your compensation house in order is good business. Not certain how to improve your compensation system? We can help!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Meet Kevin Brozovich, energetic entrepreneur, people-focused team-builder and HR practitioner-turned consultant. For almost 10 years, Kevin was Founder and Chief People Officer of HRM Innovations, a Kalamazoo-based Human Resources consulting firm many would consider the top in the region. After pulling his hair out making daily decisions about running the business (does it matter where the coffee comes from?), Kevin joined forces with the Rose Street Advisors team so he could solely focus on what he loves most: working with clients.

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Let’s start this blog with some honesty. We can usually make a blog topic interesting or at least a little bit fun. This one is the exception. I’ve procrastinated writing about this because, frankly, it’s a bit underwhelming. With that, HR professionals need to know that this is changing and can’t be ignored. Here’s what you need to know: THERE IS A NEW I-9 FORM! The good news is that it is now a one-page document with the list of acceptable documents on the back (unless you use a translator or are getting rehired, that’s a separate page). The new form, including instructions, is available here and you should start using it. You can use the old form until October 31^st, 2023. After Halloween passes, you will be required to use the new one. One impact is that you can only conduct I-9 verifications electronically if you are a registered and active E-Verify user. If you’ve found a way to make this announcement fun for your team, be sure to let us know. Pictural proof would be even better. Have an HR question? Let us know, we can help!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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In today's fast-paced world, the role of Human Resources (HR) professionals is evolving, thanks to the integration of Artificial Intelligence (AI) technology. AI is revolutionizing various industries, and HR is no exception. HR professionals are now leveraging AI to streamline processes, improve decision-making, and enhance overall efficiency in managing the workforce. Let's explore some exciting AI uses that are transforming the HR landscape and empowering professionals for a brighter future.

Recruitment and Talent Acquisition:

Recruiting top talent is one of the most critical tasks for HR professionals. AI-powered tools can significantly improve the recruitment process by automating repetitive tasks like candidate sourcing, resume screening, and interview scheduling. AI algorithms can analyze candidate data and assess potential hires based on specific criteria, helping HR professionals identify the best-fit candidates more efficiently and reducing the time-to-hire significantly.

Employee Onboarding and Training:

AI-based onboarding platforms offer personalized training modules for new hires, ensuring a smooth transition into the company culture. These platforms can adapt to individual learning styles and pace, enhancing the effectiveness of training programs. Furthermore, AI can monitor employees' progress and identify areas for improvement, enabling HR professionals to tailor ongoing training initiatives to meet specific needs.

Employee Engagement and Satisfaction:

AI-driven sentiment analysis tools allow HR professionals to gauge employee satisfaction and engagement levels. These tools can analyze feedback from various sources like surveys, emails, and social media to identify trends and concerns in real-time. Armed with these insights, HR professionals can implement targeted strategies to boost employee morale and productivity.

Performance Management and Predictive Analytics:

Traditional performance evaluations often suffer from biases and inaccuracies. AI-driven performance management tools offer a data-driven approach to employee assessments. By analyzing employee data, such as productivity, feedback, and project outcomes, HR professionals can make fairer evaluations and identify high-potential employees for future leadership roles.

Workplace Diversity and Inclusion:

AI can play a pivotal role in promoting diversity and inclusion in the workplace. Algorithms can help HR professionals identify and rectify potential biases in job descriptions, recruitment processes, and performance evaluations. Additionally, AI can support HR professionals in creating more inclusive employee resource groups and fostering a culture of acceptance and understanding.

Conclusion:

As AI continues to advance, the role of HR professionals is becoming more strategic and transformative. By integrating AI into their operations, HR professionals can focus less on repetitive administrative tasks and more on building stronger relationships with employees and shaping a positive work environment. Embracing AI in HR practices enables professionals to make data-driven decisions, nurture employee potential, and drive organizational success. However, it is essential to strike a balance between technology and the human touch to ensure that the core essence of HR—caring for employees' well-being and growth—remains intact. As we move towards an AI-powered future, HR professionals will undoubtedly play a pivotal role in shaping a thriving and inclusive workforce.

Does this blog sound different from my normal posts? It should, I didn’t write it. I asked ChatGPT to write a 350-word blog on AI uses for HR professionals and this is what it produced. Some aspects of this are great ideas that I’m certain we’ll hear more about in the future, but others are frankly quite scary.

We’ll be diving deeper into the impacts of AI in the workplace at the Rose Street Seminar in September. In the meantime, we’d love to hear your thoughts on AI. Are you using it at work? If so, how? What has been the result?

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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Creating a Respectful and Open World for Natural Hair

The CROWN Act was recently passed by the State of Michigan. The Act prohibits discrimination based on “natural and protective hairstyles”, particularly those associated with race by updating the Elliott-Larsen Civil Rights Act to include this category. The intent is to end discriminatory practices in employment, housing, education, and places of accommodation based on hairstyle. This would be a good time to review your handbook and dress code policies. Your EEO policy should include a reference to hairstyle discrimination. And, if you have them, hairstyle specifications should be limited to those necessary to meet safety or sanitation requirements. If a professionalism standard is described, it must not limit the ability to wear those hairstyles typically associated with race. Have questions or need help updating your policies? The Human Resources Consultants at Rose Street in Kalamazoo are ready to help you!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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The Three R's: Recognition, Rewards, and Retention

Last week we cohosted a Leadership Oasis event with our friends at Bronson’s Helpnet. We brought in a group of panelists to discuss employee recognition, rewards, and their impact on retaining employees. Our panelists included experts from the total rewards group at Bronson as well as two manufacturing CEO’s whose organizations excel at recognizing their employees. We learned a lot and had some laughs along the way. Some of the key takeaways from the discussion included: ⁃ Know what motivates your employees and customize your rewards to match. Different employee generations and personalities want recognition in different ways. Make certain that you cover the recognition needs of all employees. ⁃ Engage all employees in the process of providing recognition. Leaders can’t cover every employee all the time. Building a culture of recognition for all employees is critical to ensuring that everyone receives the recognition that they need. ⁃ Leaders need to value the act of recognizing their employees. A question was asked about how you manage leaders who don’t always support employee recognition activities. One answer was very direct. Leaders who don’t recognize employees don’t have a place in our company. Yes, it’s that important. ⁃ Not all recognition efforts are a success. We asked about one that failed. Our panelists shared that some have been more impactful than others, but all their efforts had connected with some employees. Some more than others. ⁃ What recognition made a big impact for minimal investment? A handwritten note sent to the employee’s home address thanking them for their work. Not only does it recognize the employee, it engages the family as well. ⁃ Doing employee recognition takes time. There’s no way around this one. Genuine recognition takes time to do well. Make the time. Do you have some types of recognition that you’ve found to be particularly effective? We’d love to have you share them with us! Have an HR question? Our talented HR team is ready to help.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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On Friday, March 24th, almost exactly 10 years after Michigan passed their right to work laws, the State repealed them. What does that mean for HR and business leaders? First off, it is important to understand what the Right to Work laws do. Michigan’s Right to Work law made the payment of union dues voluntary for employees of unionized companies. Under the law, even if most employees vote to unionize, some may choose not to support or join the union. Those employees could choose not to pay union dues even though they benefit from the terms of the bargaining agreement negotiated by the union. The result of employees choosing not to pay dues was a weakened negotiating position and decreased revenue from union dues. The repeal of the Right to Work legislation now means that all members of a bargaining unit in a unionized company will be required to pay union dues. This provides more resources to the unions. The impact on businesses is that this could make unions stronger and, when coupled with the willingness of the NLRB to support unionization activities, could make it easier to unionize additional organizations. If you want your organization to stay union free, we recommend that you focus on creating a positive work environment, paying competitive wages, and treating employees well. That’s the winning recipe for building a great culture and keeping employees engaged. Need help creating the ideal work environment? Give us a call. The HR team at Rose Street would love to help you.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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On March 8^th, the Michigan Senate passed an amendment to the Elliott Larsen Civil Rights Act. Elliott Larsen, passed in 1977, provides protection from discrimination based on religion, race, color, national origin, age, sex, height, weight, familial or marital status. Previously passed by the House, the new amendment adds LGBTQ rights to that list. If you’re wondering, “wasn’t this already included?” The answer is yes, sort of. Last summer, the Michigan Supreme Court determined that the definition of “sex” in the law included protections for LGBTQ individuals. This amendment codifies that decision into law and would make it more difficult for a future court to overturn that decision. What’s next? The governor has already said that she will sign the bill so it will be going into effect shortly. As an employer, you should check your handbook and antidiscrimination policies to ensure that they include protections for LGBTQ folks. They should already be there. If not, now’s the time to make an update. Have questions? Give us a call, we’re happy to help.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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Shortly after I started my career in HR I met with an employee who was in the progressive discipline process for attendance issues. In the meeting, we were trying to help her get to the root of the problem when she confided in me that her attendance issues were the result of an abusive relationship with her boyfriend. Being new to HR, I wasn’t sure what to do. I connected her with a local domestic violence shelter and offered a personal leave for her to get the assistance that she needed. It wasn’t enough. She was murdered not long after our meeting. I always wished I could have done more in that situation and have worked to have better success with employees suffering from abuse since then. HR professionals are often in a unique position to identify employees who need help and to guide them to the appropriate resources. Here are some signs that an employee is being abused: • Unusual or frequent absences • Unexplained bruises or injuries • Significant changes in work performance • Noticeable fatigue If you notice these signs, ask the employee if they need help. They may or may not share details of their situation with you, but you can still provide them with contact information for an Employee Assistance Program (EAP), a local shelter like the YWCA, or mental health services. Do not try to function as their therapist unless you are qualified and authorized to do that work. If you believe that they are in immediate danger, report the situation to the police and take steps to protect them and your other employees in the workplace. Finally, identifying abuse can require attention to subtle changes in an employee’s performance and demeanor. Be on the lookout for the signs. You might just save a life.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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Michigan Earned Sick Time & Minimum Wage Acts (published 1.27.23)

HOLD YOUR HORSES!

Just one week ago, the blog below was published stating that businesses should prepare for the likely implementation of the original ballot initiative language relating to the Michigan Earned Sick Time and Michigan Minimum Wage Increase.
Well, hold your horses! Yesterday, the Michigan Appeals Court overturned the initial decision reimplementing these two acts effective February 19th.
What happens now? Nothing for the moment. There will likely be a ‘homestretch’ appeal to the Michigan Supreme Court, but until then, there will not be any change to the Paid Medical Leave Act or Michigan’s Improved Workforce Opportunity Wage Act of 2018 as enacted. Employers in compliance with the 2018 Acts do not need to make any changes.
Is this the finish line? Stay tuned! We’ll keep you posted on the latest.

Michigan Earned Sick Time Act Update (published 1.17.23)

Chances are you’ve heard about the Michigan Earned Sick Time Act and are thinking, “isn’t this already in effect?” Well, yes and no. Let’s start with a short history lesson to bring us up to where we are today.

In 2018, a petition drive was headed to successfully get both a minimum wage proposal and a provision for earned sick time on the ballot for the fall election. The legislature at that time decided to adopt the ballot proposals, making the ballot initiatives unnecessary. The initiatives were dropped and the Michigan Earned Sick Time Act and the minimum wage standard were adopted. Then, during the lame duck session after the election, the legislature significantly changed the acts by passing the Paid Medical Leave Act and Michigan’s Improved Workforce Opportunity Wage Act of 2018. Several groups filed a lawsuit challenging the constitutionality of those Acts arguing that the legislature usurped the rights of the people to implement a ballot initiative. The court agreed, struck down the two new acts and said that the ballot initiatives, as written, would go into effect on February 19, 2023.

What does this decision mean? If unchanged, the original ballot initiative language of the Michigan Earned Sick Time Act and Michigan Minimum Wage Increase Initiative increase will go into effect. Since the Michigan Attorney General has voiced support of the Court of Claims Judge Shapiro’s decision to reinstate the original ballot initiative language, the chance for legislative intervention under the Whitmer administration is highly doubtful. This case now rests with the three judge panel at the Michigan Court of Appeals. Attorneys have requested a decision by February 1^st so that employers have time to react, but there is no guarantee that the court will respond by then.

What should employers be doing?

Our advice is review your policies to see if they are in compliance with the new requirements. Most larger organizations will find that they already are. If not, you should prepare a plan to implement policies bringing your organization into compliance with the original provisions of the Michigan Earned Sick Time Act and the revised minimum wage. You can then wait until at least February 1^st before implementing those changes to your policy to be effective February 19^th.

Here's what is required by the Michigan Earned Sick Time Act:

• Employees accrue one hour of paid sick time for every 30 hours worked.

• Organizations with more than 10 employees: Must provide the opportunity to earn at least 72 hours of paid sick leave annually.

• Organizations with fewer than 10 employees: Must provide the opportunity to earn at least 72 of hours of sick leave.

40 hours of it must be paid, the remaining 32 hours can be unpaid.

• Employers can limit employees from using paid sick time until after their 90^th day of employment.

• Employers do not have to pay out unused paid leave balances upon the termination of employment.

Here's how the Michigan minimum wage would change:

• The new rate would be $13.03 per hour, up from the current $10.10 per hour.

• The rate for tipped workers would increase from $3.84 per hour to 90% of the full minimum wage, equaling $11.73 per hour.

While nothing is certain, the questions asked by the appeals court would suggest that they will uphold the decision of Judge Shapiro. We won’t know the outcome until at least February 1^stand there may be an appeal to the Michigan Supreme Court following that. Our recommendation is to prepare for the changes now, but not to implement them, unless you want to, until there is a formal decision.

We’ll keep you posted on the latest decisions as they occur.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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The end of the year is traditionally the time to plan for compensation adjustments. This year, with the competitive job market and inflation at 7.7%*, there is a whole new level of angst as employers try to determine how much to adjust wages for 2023. The Society for Human Resources Management (SHRM) predicts a 2023 compensation budget increase of 4.6%. While notably higher than the recent year average, this is still significantly less than the cost of inflation for the second year in a row. That means employees will continue to feel the pinch until inflation slows down. The danger is if employees take advantage of the tight job market to increase their income by moving to a new organization. Worse, A SHRM survey of what increases HR professionals think employees want in 2023 came in at 8-10%. Market compensation rates have also been impacted by the opportunity to work remotely. This means that a professional position based out of California, can be performed in Michigan where the cost of living is significantly cheaper. While this may be a cost savings for California based organizations, it increases competition and wage rates for our local talent pool. What does that mean for us? Make certain that you are competitive by looking at the market compensation rates by position to see where you stand. Every year, some positions command higher increases than others. Using good quality data to assess the market is critical to determining appropriate compensation levels. Also, that 4.6% average compensation budget will go further if you focus on the high value and least competitive positions in your workforce versus using a blanket increase approach. Not all is doom and gloom. Remember that compensation is an employee satisfier, not a motivator. If you have a great culture, value your employees, and reasonably compensate them, they are likely to stay in a role where they feel that they belong, even if they could earn a few more bucks down the road. 2022 has been another tough year for leaders. Here’s wishing each of you a restful holiday season. We look forward to seeing each of you back and recharged in 2023. Happy Holidays! *US CPI all items 12 months ending 10/22

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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