May 2025 TogetHR Times
Do you offer too many benefits to your employees?
By John Wright
While a comprehensive benefits package can attract and retain top talent, there's a tipping point where an abundance of options can backfire. Recognizing the signs of an overly generous benefits program is crucial for maintaining employee satisfaction and organizational efficiency.
Signs Your Organization Might Be Offering Too Many Employee Benefits:
Overwhelmed Employees: A vast array of benefits can leave employees bewildered and unsure of where to focus. This can result in suboptimal choices, underutilization of valuable benefits, or even complete disengagement with the benefits program due to the perceived complexity.
Low Benefit Utilization: If a significant portion of your benefits offerings have dismal utilization rates, it's a red flag. This indicates that employees either don't value those benefits, are unaware of them, or find the process of accessing them too cumbersome.
Administrative Burden: Managing a multitude of benefits options can strain your HR department. The administrative overhead involved in tracking eligibility, enrollment, and utilization for numerous benefits can lead to errors, inefficiencies, and increased costs.
High Costs: Providing a wide range of benefits isn't cheap. If your benefits costs are spiraling out of control without a corresponding increase in employee satisfaction or retention, it's time to reassess.
Lack of Focus: An overabundance of benefits can dilute the impact of your core offerings. Employees may overlook essential benefits like health insurance or retirement savings if they're distracted by a plethora of less valuable perks.
Communication Challenges: Effectively communicating the details of numerous benefits to employees is a daunting task. Employees may remain unaware of their options or misunderstand how to utilize them, leading to frustration and underutilization.
Summary Table: Signs of Excessive Employee Benefits
Regular Evaluation is Key. To avoid the pitfalls of offering too many employee benefits, it's crucial to regularly review and evaluate your benefits package.
Gather employee feedback:
Surveys: Distribute anonymous surveys to gauge employee satisfaction with current benefits, identify gaps in coverage, and discover desired perks.
Focus Groups: Conduct small group discussions to facilitate open conversations about benefits, allowing employees to share their experiences, concerns, and suggestions.
Suggestion Box: Implement a physical or digital suggestion box where employees can anonymously submit ideas for new benefits or improvements to existing ones.
One-on-One Meetings: Schedule individual meetings with employees to discuss their benefits needs and preferences in a confidential setting.
Pulse Surveys: Conduct brief, frequent surveys to track employee sentiment and identify emerging trends in benefits preferences.
Employee Resource Groups: Leverage ERGs to gather feedback from specific employee demographics and tailor benefits offerings accordingly.
Exit Interviews: Include questions about benefits in exit interviews to understand why employees leave and identify areas for improvement.
Stay Interviews: Conduct stay interviews with current employees to proactively address their benefits needs and improve retention.
Benefits Communication: Regularly communicate with employees about available benefits, their value, and how to utilize them effectively.
Feedback Analysis: Analyze employee feedback to identify patterns, trends, and areas for improvement in benefits offerings.
To effectively analyze utilization data, you can employ several strategies:
Regular Surveys and Feedback: Gather employee input on their awareness and usage of existing benefits. This will help identify underutilized benefits and areas for improvement.
Track Usage Metrics: Monitor the frequency with which employees engage with different benefits. This data can reveal popular benefits and those that are not being used effectively.
Identify Cost Drivers: Analyze the cost of each benefit (including the amount of time necessary to administer benefits) and compare it to its utilization rate. This will help you identify benefits that are expensive but not widely used.
Benchmark Against Industry Standards: Compare your company's benefit utilization rates to those of similar organizations in your industry. This can provide insights into areas where your company may be lagging.
Segment Your Workforce: Analyze benefit utilization data by different employee demographics (e.g., age, gender, job role). This can help you tailor your benefits package to meet the specific needs of different employee groups.
Communicate Effectively: Ensure employees are aware of the available benefits and how to access them. Clear and regular communication can increase benefit utilization rates.
By aligning your benefits offerings with employee needs and organizational goals, you can create a benefits program that truly supports your workforce without overwhelming them or straining your resources. Remember, a well-structured, focused benefits package can be far more effective than an overly generous one.
Adjudication Guidelines: Why Companies Using Pre-Employment Screening Need Them
By Alison T. Bruns
In today’s competitive job market, companies are increasingly turning to pre-employment screening as a critical part of the hiring process. Whether it’s criminal background checks, employment verification, drug testing, or education confirmation, pre-employment screening helps employers make informed decisions, reduce liability, and promote a safe and productive work environment. However, without a clear, standardized process for interpreting and acting on the results of those screenings, employers risk inconsistency, bias, and legal trouble. That’s where adjudication guidelines come in.
Adjudication guidelines are internal policies and procedures that organizations use to evaluate pre-employment background check results consistently and fairly. These guidelines outline how different types of background findings—especially criminal history—should be assessed in light of the job role, the company’s values, and applicable laws. In short, they help companies decide when a red flag is truly a dealbreaker, and when it’s not.
The Role of Adjudication in Hiring
"Adjudication" in the hiring context refers to the review and decision-making process after a background check is completed. It involves determining whether a candidate’s screening results disqualify them from employment based on pre-established criteria. The process helps filter out individuals who may pose a risk, while also protecting candidates from arbitrary or unfair rejection.
There are typically two phases in adjudication:
Pre-Adverse Action: If a potentially disqualifying result appears on a background check (e.g., a criminal conviction), the employer must notify the candidate of the issue, give them a copy of the report, and allow them time to dispute or explain the findings.
Adverse Action: If, after the candidate’s response or lack thereof, the employer decides not to proceed with hiring, a formal notification of adverse action is sent.
Adjudication guidelines play a critical role during both phases. They ensure hiring managers and HR professionals apply criteria uniformly, reducing the risk of subjective or biased decisions.
Why Adjudication Guidelines Matter
1. Consistency and Fairness
Without adjudication guidelines, hiring decisions can vary significantly depending on who’s reviewing the background check. One manager might see a misdemeanor from ten years ago as irrelevant, while another might view it as disqualifying. Guidelines promote uniformity, ensuring that similar findings result in similar decisions regardless of the applicant, position, or hiring manager.
This consistency also supports diversity and inclusion by reducing the impact of unconscious bias. For example, studies have shown that criminal background checks can disproportionately affect certain demographic groups. A structured adjudication process helps ensure these individuals are not automatically or unfairly excluded from employment opportunities.
2. Legal Compliance
Federal, state, and local laws place limitations on how employers can use background information in hiring decisions. For instance:
The Fair Credit Reporting Act (FCRA) requires employers to follow a specific process if they intend to take adverse action based on a background report.
The Equal Employment Opportunity Commission (EEOC) advises employers to conduct an “individualized assessment” before disqualifying a candidate based on criminal history.
Many jurisdictions have “ban-the-box” laws that restrict when and how employers can inquire about or use criminal records.
Adjudication guidelines help companies stay compliant with these complex legal requirements. They provide a documented, defensible process for evaluating candidates and reduce the risk of lawsuits or regulatory penalties.
3. Improved Risk Management
Certain industries—such as healthcare, finance, transportation, or childcare—require a higher degree of vigilance when it comes to background screening. Adjudication guidelines help employers in these sectors protect their business, employees, and customers by identifying which offenses or discrepancies are truly disqualifying.
For example, a candidate applying for a role that requires handling sensitive financial information might be disqualified for a recent conviction related to fraud, while that same offense might be considered less relevant for a manual labor position with no financial responsibility. Guidelines provide clarity and protect companies from negligent hiring claims by showing they had a reasonable and consistent process in place.
4. Efficiency in Hiring
Recruiting teams and hiring managers are often juggling multiple responsibilities. Having adjudication guidelines simplifies the decision-making process and reduces the back-and-forth associated with unclear or subjective screening outcomes. When criteria are already set, it’s easier to train teams, streamline workflows, and make faster decisions—all without sacrificing quality or compliance.
Elements of a Strong Adjudication Policy
If your organization uses pre-employment screening, a strong adjudication policy should include:
Role-Specific Criteria: Tailor the guidelines based on the nature and sensitivity of the role (e.g., driving history for drivers, credit checks for financial roles).
Time-Based Considerations: Recognize how long ago an offense occurred and whether there’s evidence of rehabilitation.
Severity and Relevance: Assess whether the offense is directly relevant to the job responsibilities and whether it indicates a potential risk.
Dispute Process: Outline how applicants can contest the accuracy of their background report or provide context for certain findings.
Documentation and Recordkeeping: Ensure every adjudication decision is documented to show consistent application of the policy.
Final Thoughts
In an era of increased focus on transparency, fairness, and compliance, adjudication guidelines are more than just a best practice—they’re essential. They provide structure, reduce legal and reputational risks, and demonstrate a commitment to equitable hiring practices.
For companies investing in pre-employment screening, implementing adjudication guidelines should be a natural next step. When done thoughtfully, these policies can help employers balance safety and risk management with second-chance hiring and inclusivity—resulting in better decisions, better hires, and a better workplace for everyone.
Understanding Payroll Taxes in the United States
By Dan Rodriguez
Payroll taxes in the United States are a critical component of the country’s revenue system, funding essential programs such as Social Security, Medicare, unemployment insurance, and more. These taxes are shared responsibilities between employers and employees and are calculated based on wages and salaries paid to workers. Understanding the types, purposes, and implications of payroll taxes helps both workers and business owners manage their finances and compliance responsibilities effectively.
1. Federal Insurance Contributions Act (FICA) Taxes
FICA taxes are perhaps the most well-known type of payroll tax in the U.S. They are used to fund two major federal programs: Social Security and Medicare.
Social Security Tax: This tax is used to fund retirement benefits, survivor benefits, and disability insurance. As of 2024, the Social Security tax rate is 6.2% for employees, matched by an equal 6.2% from employers, for a total of 12.4%. However, this tax only applies to wages up to a certain annual limit, known as the wage base limit, which is $168,600 for 2024. Earnings above this threshold are not subject to Social Security tax.
Medicare Tax: Medicare provides health insurance to individuals aged 65 and older, as well as certain disabled individuals. The Medicare tax rate is 1.45% for both employees and employers, totaling 2.9%. Unlike Social Security, there is no wage cap on Medicare taxes. Additionally, high earners are subject to an Additional Medicare Tax of 0.9% on wages exceeding $200,000 for individuals or $250,000 for married couples filing jointly. Employers do not match this additional tax; it is paid solely by the employee.
2. Federal Unemployment Tax Act (FUTA)
The FUTA tax is paid only by employers and is used to fund federal unemployment insurance programs, which provide temporary financial assistance to workers who lose their jobs through no fault of their own.
The standard FUTA tax rate is 6.0% on the first $7,000 of each employee’s wages annually. However, employers typically receive a credit of up to 5.4% if they pay state unemployment taxes, reducing the effective FUTA rate to 0.6% in most cases.
3. State Unemployment Taxes (SUTA)
Each state operates its own unemployment insurance program and levies its own unemployment tax, often referred to as SUTA or SUI (State Unemployment Insurance). Rates and wage bases vary widely by state and are generally based on an employer’s experience rating — meaning businesses with higher turnover or more unemployment claims may face higher tax rates.
SUTA taxes are usually employer-paid, but a few states, such as New Jersey, Pennsylvania, and Alaska, also require employees to contribute a small portion toward state unemployment insurance.
4. Self-Employment Tax
Individuals who are self-employed, such as freelancers, independent contractors, and small business owners, are responsible for paying both the employer and employee portions of FICA taxes themselves. This combined tax, known as the self-employment tax, amounts to 15.3% — 12.4% for Social Security and 2.9% for Medicare.
High-earning self-employed individuals are also subject to the Additional Medicare Tax of 0.9%. Fortunately, the IRS allows self-employed individuals to deduct the employer-equivalent portion (7.65%) of the self-employment tax when calculating their adjusted gross income.
5. Local Payroll Taxes
Some municipalities impose their own payroll taxes to fund city-level services and infrastructure. These local taxes vary significantly in rate, structure, and applicability.
For example, New York City imposes a Metropolitan Commuter Transportation Mobility Tax (MCTMT) on certain employers and self-employed individuals within the metropolitan commuter district. In Philadelphia, there is a wage tax levied on both residents and non-residents who work within the city.
Employers operating in these areas must be aware of and compliant with these additional local tax obligations.
6. Other Withholdings (Non-Tax Deductions)
While not technically "taxes," payroll often includes other mandatory withholdings that function similarly to payroll taxes. These include:
Garnishments: Court-ordered deductions from wages for debts such as child support, alimony, or unpaid loans.
State Disability Insurance (SDI): In states like California and New York, employees contribute to disability insurance through payroll deductions.
These withholdings are not universal but can significantly impact an employee’s take-home pay and an employer’s payroll processing responsibilities.
Conclusion
Payroll taxes in the United States are multifaceted and play a fundamental role in supporting essential public programs and social safety nets. They include federal taxes like FICA and FUTA, state-level unemployment taxes, local taxes, and specialized levies depending on jurisdiction. For employees, these taxes reduce take-home pay, while for employers, they represent a significant cost of doing business. For self-employed individuals, the tax burden is even greater due to the dual responsibility for both sides of FICA.
Navigating payroll taxes requires diligence and understanding, whether you're an individual worker or a business owner. Staying informed about current rates, thresholds, and regulations ensures compliance, avoids penalties, and helps support the broader economic system that these taxes sustain.
Understanding Managers’ HR Responsibilities A Guide to Effective Leadership
by Joan Klopfer
Managers play a pivotal role in the success of any organization, with a significant portion of their responsibilities intertwined with human resources (HR) functions. While dedicated HR departments establish policies and provide guidance, managers are the ones who implement these principles daily, ensuring a positive and productive work environment. Understanding and embracing HR responsibilities not only enhances management effectiveness but also contributes to the overall success of the organization.
Recruitment and Hiring
Managers are integral to the recruitment and hiring process, which extends beyond merely filling vacancies. Their involvement includes crafting or refining job descriptions to attract suitable candidates, conducting interviews to assess skills and cultural fit, collaborating with HR on background checks and offer letters, and ensuring a seamless onboarding process for new hires. Effective hiring practices reduce turnover, enhance team performance, and bolster workplace morale.
Employee Training and Development
Ensuring employees receive the necessary training to excel in their roles is a critical managerial responsibility. Managers identify skill gaps within their teams, provide on-the-job training and mentorship, encourage participation in professional development opportunities such as workshops and certifications, and offer constructive feedback to facilitate continuous improvement. Investing in employee development not only boosts productivity but also prepares individuals for future leadership roles.
Performance Management
Performance management is an ongoing process that involves setting clear expectations and goals, providing regular feedback, conducting formal evaluations in collaboration with HR, recognizing and rewarding high performance, and addressing issues promptly and constructively. A robust performance management strategy keeps employees engaged and accountable, ensuring alignment with organizational objectives.
Handling Employee Relations
As the first point of contact for employee concerns and workplace conflicts, managers play a crucial role in maintaining a healthy work environment. They foster open communication and trust within their teams, address conflicts promptly and fairly, document interactions related to disputes or disciplinary actions, and consult with HR on complex issues to ensure compliance with company policies and employment laws. Effective management of employee relations prevents minor issues from escalating and promotes a harmonious workplace.
Compliance with Employment Laws and Company Policies
Managers must be well-versed in labor laws, workplace regulations, and company policies to ensure compliance. This includes enforcing workplace safety guidelines, upholding anti-discrimination and harassment policies, managing work schedules in accordance with labor laws, and maintaining accurate employee records. Non-compliance can lead to legal issues, financial penalties, and reputational damage. Regular training and collaboration with HR are essential to stay updated on legal requirements.
Employee Engagement and Retention
Managers significantly influence employee engagement and retention by building strong relationships, recognizing and appreciating contributions, promoting work-life balance, providing career growth opportunities, and cultivating a positive team culture. Engaged employees are more likely to remain with the organization and contribute to its success.
Managing Leaves and Accommodations
Handling employee requests for leave, including sick leave, vacation, and family leave, is a key managerial responsibility. Managers approve time-off requests while ensuring operational coverage, understand leave policies such as the Family and Medical Leave Act (FMLA), and work with HR to ensure compliance with state and federal laws. Proper management of leave requests balances employee needs with business continuity.
Disciplinary Actions and Terminations
Addressing employee misconduct or poor performance is an unavoidable aspect of management. Managers should follow a consistent and fair approach to discipline, document all actions, collaborate with HR to ensure compliance with policies and legal protections, and conduct terminations professionally. A structured approach to discipline safeguards the organization from potential legal issues and maintains a fair workplace.
Conclusion
Managers are essential to the successful implementation of HR initiatives. By effectively managing recruitment, training, performance, employee relations, compliance, engagement, and disciplinary actions, managers create a productive and legally compliant workplace. Partnering with HR ensures that managers have the necessary resources and guidance to navigate complex HR challenges, leading to a thriving and motivated workforce.
