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Families First Coronavirus Response Act – Questions and Answers

As part of sweeping legislation—the Families First Coronavirus Response Act (FFCRA)—signed into law by President Trump on March 18, 2020, two laws were enacted that provide workers with paid leave for reasons related to the coronavirus (COVID-19) pandemic.

As required by this legislation, the U.S. Department of Labor (DOL) will be issuing implementing regulations. Additionally, as warranted, the DOL will continue to provide compliance assistance to employers and employees on their responsibilities and rights under the FFCRA.

The DOL issued the following questions and answers (Q&As) as part of these efforts.

  • “Paid sick leave” means paid leave under the Emergency Paid Sick Leave Act.
  • “Expanded family and medical leave” means paid leave under the Emergency Family and Medical Leave Expansion Act.          

Questions and Answers

1. What is the effective date of the FFCRA, which includes the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act?

The FFCRA’s paid leave provisions are effective on April 1, 2020, and apply to leave taken between April 1, 2020, and Dec. 31, 2020.

2. As an employer, how do I know if my business is under the 500-employee threshold and therefore must provide paid sick leave or expanded family and medical leave?

An employer has fewer than 500 employees if, at the time an employee’s leave is to be taken, the employer employs fewer than 500 full-time and part-time employees within the United States (including any state, the District of Columbia, or any territory or possession of the United States). In making this determination, employers should include:

  • Employees on leave;
  • Temporary employees who are jointly employed by the employer and another employer (regardless of whether the jointly-employed employees are maintained on only one employer’s payroll); and
  • Day laborers supplied by a temporary agency (regardless of whether the employer is the temporary agency or the client firm if there is a continuing employment relationship).

Workers who are independent contractors under the Fair Labor Standards Act (FLSA), rather than employees, are not considered employees for purposes of the 500-employee threshold.

Typically, a corporation (including its separate establishments or divisions) is considered to be a single employer, and its employees must each be counted towards the 500-employee threshold. Where a corporation has an ownership interest in another corporation, the two corporations are separate employers unless they are joint employers under the FLSA with respect to certain employees. If two entities are found to be joint employers, all of their common employees must be counted in determining whether paid sick leave must be provided under the Emergency Paid Sick Leave Act, and expanded family and medical leave must be provided under the Emergency Family and Medical Leave Expansion Act.

In general, two or more entities are separate employers unless they meet the integrated employer test under the Family and Medical Leave Act (FMLA). If two entities are an integrated employer under the FMLA, then employees of all entities making up the integrated employer will be counted in determining employer coverage for purposes of expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act.

3. If I am a private sector employer and have 500 or more employees, do the Acts apply to me?

No. Private sector employers are only required to comply with the Acts if they have fewer than 500 employees.

Federal employees are eligible to take paid sick leave under the Emergency Paid Sick Leave Act. However, only some federal employees are eligible to take expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act. An employee’s eligibility will depend on whether they are covered under Title I or Title II of the FMLA. The DOL encourages federal employees to discuss questions about their eligibility for expanded family and medical leave with their employers or with the Office of Personnel Management. Additional FAQs regarding public sector employers will be forthcoming.

4. If providing child care-related paid sick leave and expanded family and medical leave at my business with fewer than 50 employees would jeopardize the viability of my business as an ongoing concern, how do I take advantage of the small business exemption?

To elect this small business exemption, you should document why your business with fewer than 50 employees meets the criteria set forth by the DOL, which will be addressed in more detail in forthcoming regulations. You should not send any materials to the DOL when seeking a small business exemption for paid sick leave and expanded family and medical leave.

5. How do I count hours worked by a part-time employee for purposes of paid sick leave or expanded family and medical leave?

A part-time employee is entitled to leave for his or her average number of work hours in a two-week period. Therefore, you calculate hours of leave based on the number of hours the employee is normally scheduled to work. If the normal hours scheduled are unknown, or if the part-time employee’s schedule varies, you may use a six-month average to calculate the average daily hours. Such a part-time employee may take paid sick leave for this number of hours per day for up to a two-week period, and may take expanded family and medical leave for the same number of hours per day up to ten weeks after that.

If this calculation cannot be made because the employee has not been employed for at least six months, use the number of hours that you and your employee agreed that the employee would work upon hiring. If there is no such agreement, you may calculate the appropriate number of hours of leave based on the average hours per day the employee was scheduled to work over the entire term of his or her employment.

6. When calculating pay due to employees, must overtime hours be included?

Yes. The Emergency Family and Medical Leave Expansion Act requires you to pay an employee for hours the employee would have been normally scheduled to work even if that is more than 40 hours in a week.

However, the Emergency Paid Sick Leave Act requires that paid sick leave be paid only up to 80 hours over a two-week period. For example, an employee who is scheduled to work 50 hours a week may take 50 hours of paid sick leave in the first week and 30 hours of paid sick leave in the second week. In any event, the total number of hours paid under the Emergency Paid Sick Leave Act is capped at 80.

If the employee’s schedule varies from week to week, please see the answer to Question 5, because the calculation of hours for a full-time employee with a varying schedule is the same as that for a part-time employee.

Please keep in mind the daily and aggregate caps placed on any pay for paid sick leave and expanded family and medical leave as described in the answer to Question 7.

Please note that pay does not need to include a premium for overtime hours under either the Emergency Paid Sick Leave Act or the Emergency Family and Medical Leave Expansion Act.

7. As an employee, how much will I be paid while taking paid sick leave or expanded family and medical leave under the FFCRA?

It depends on your normal schedule as well as why you are taking leave.

If you are taking paid sick leave because you are unable to work or telework due to a need for leave because you: (1) are subject to a federal, state or local quarantine or isolation order related to COVID-19; (2) have been advised by a health care provider to self-quarantine due to concerns related to COVID-19; or (3) are experiencing symptoms of COVID-19 and are seeking medical diagnosis, you will receive for each applicable hour the greater of:

  • Your regular rate of pay;
  • The federal minimum wage in effect under the FLSA; or
  • The applicable state or local minimum wage.

In these circumstances, you are entitled to a maximum of $511 per day, or $5,110 total, over the entire paid sick leave period.

If you are taking paid sick leave because you are: (1) caring for an individual who is subject to a federal, state or local quarantine or isolation order related to COVID-19 or an individual who has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; (2) caring for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons; or (3) experiencing any other substantially similar condition that may arise, as specified by the Secretary of Health and Human Services (HHS), you are entitled to compensation at two-thirds of the greater of the amounts above. Under these circumstances, you are subject to a maximum of $200 per day, or $2,000 over the entire two week period.

If you are taking expanded family and medical leave, you may take paid sick leave for the first 10 days of that leave period, or you may substitute any accrued vacation leave, personal leave, or medical or sick leave you have under your employer’s policy. For the following 10 weeks, you will be paid for your leave at an amount no less than two-thirds of your regular rate of pay for the hours you would be normally scheduled to work. The regular rate of pay used to calculate this amount must be at or above the federal minimum wage, or the applicable state or local minimum wage. However, you will not receive more than $200 per day or $12,000 for the 12 weeks that include both paid sick leave and expanded family and medical leave when you are on leave to care for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons.

To calculate the number of hours for which you are entitled to paid leave, please see the answers to Questions 5-6 that are provided in this guidance.

8. What is my regular rate of pay for purposes of the FFCRA?

For purposes of the FFCRA, the regular rate of pay used to calculate your paid leave is the average of your regular rate over a period of up to six months prior to the date on which you take leave.[1] If you have not worked for your current employer for six months, the regular rate used to calculate your paid leave is the average of your regular rate of pay for each week you have worked for your current employer.

If you are paid with commissions, tips or piece rates, these wages will be incorporated into the above calculation.

You can also calculate this amount for each employee by adding all compensation that is part of the regular rate over the above period and divide that sum by all hours actually worked in the same period.

9. May I take 80 hours of paid sick leave for my self-quarantine and then another amount of paid sick leave for another reason provided under the Emergency Paid Sick Leave Act?

No. You may take up to two weeks—or 10 days—(80 hours for a full-time employee or, for a part-time employee, the number of hours equal to the average number of hours that the employee works over a typical two-week period) of paid sick leave for any combination of qualifying reasons. However, the total number of hours for which you receive paid sick leave is capped at 80 hours under the Emergency Paid Sick Leave Act.

10. If I am home with my child because his or her school or place of care is closed, or child care provider is unavailable, do I get paid sick leave, expanded family and medical leave, or both—how do they interact?

You may be eligible for both types of leave, but only for a total of 12 weeks of paid leave. You may take both paid sick leave and expanded family and medical leave to care for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons. The Emergency Paid Sick Leave Act provides for an initial two weeks of paid leave. This period, thus, covers the first 10 workdays of expanded family and medical leave, which are otherwise unpaid under the Emergency and Family Medical Leave Expansion Act unless you elect to use existing vacation, personal, or medical or sick leave under your employer’s policy. After the first 10 workdays have elapsed, you will receive two-thirds of your regular rate of pay for the hours you would have been scheduled to work in the subsequent 10 weeks under the Emergency and Family Medical Leave Expansion Act.

Please note that you can only receive the additional 10 weeks of expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act for leave to care for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons.

11. Can my employer deny me paid sick leave if my employer gave me paid leave for a reason identified in the Emergency Paid Sick Leave Act prior to the Act going into effect?

No. The Emergency Paid Sick Leave Act imposes a new leave requirement on employers that is effective beginning on April 1, 2020.

12. Is all leave under the FMLA now paid leave?

No. The only type of family and medical leave that is paid leave is expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act when such leave exceeds 10 days. This only includes leave taken because the employee must care for a child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons.

13. Are the paid sick leave and expanded family and medical leave requirements retroactive?

No.

14. How do I know whether I have “been employed for at least 30 calendar days by the employer” for purposes of expanded family and medical leave?

You are considered to have been employed by your employer for at least 30 calendar days if your employer had you on its payroll for the 30 calendar days immediately prior to the day your leave would begin. For example, if you want to take leave on April 1, 2020, you would need to have been on your employer’s payroll as of March 2, 2020. If you have been working for a company as a temporary employee, and the company subsequently hires you on a full-time basis, you may count any days you previously worked as a temporary employee toward this 30-day eligibility period.

If you are a federal employee, the state or local minimum wage would be used to calculate the wages owed to you only if the federal agency that employs you has broad authority to set your compensation and has decided to use the state or local minimum wage.

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Small Business Trends: Adapting Insights from Megatrends for 2025

This blog post was originally published by UKG – inspiring every organization to become a great place to work through HR, pay, workforce management, and culture technology built for all. If you had a crystal ball, you would be able to predict next year’s small business trends and know exactly how they would impact your company. But we live in the real world ― and for that, there is Megatrends.  What are Megatrends? Every year, UKG experts research and analyze the state of the global workplace and collaborate with leaders and HR practitioners at organizations of all sizes to determine which trends will likely impact organizations and employees in the year ahead. As a result of this year’s efforts, UKG has identified three Megatrends set to shape workplaces in 2025.  In this blog post, we’ll take a closer look at each Megatrend and apply its insight to how it will affect small businesses this year ― and how you can make the most of it for your business. 1. The Escalating Global Labor Deficit: Reimagining Talent Acquisition Organizations in multiple countries are reporting issues around finding sufficient talent ― and this deficit is projected to increase dramatically over the next decade. Reasons for this include changing demographics, skills gaps, shifting labor force participation rates, and evolving employee expectations. Meeting this challenge will require a multi-layered talent acquisition strategy to address the current talent shortage while preparing for what lies ahead. Small business trend: How can small businesses meet this challenge? Small businesses will need to adopt innovative and flexible approaches to talent acquisition. This could include leveraging remote work to access a broader talent pool, investing in training and development to upskill existing employees, and creating a stronger brand to attract top talent. Additionally, small businesses might benefit from partnerships with local educational institutions to create pipelines for future talent.  HR and payroll technology that includes recruiting and onboarding tools and automated processes can make it easy for you to attract, hire, and retain the best people for your business ― even when talent is scarce.   85.2 million jobs could go unfilled by 2030 based on today’s global talent deficit.  Source: Korn Ferry 2. The Amplified Employee Experience Imperative: Unleashing Engagement Employee engagement has always been a consistent measure of success for organizations of all sizes. However, with current low unemployment rates and increasing talent shortages, its significance has grown, as engaged employees are less likely to leave their jobs. As a result, business leaders are placing a higher priority on engagement, especially since it has shown little improvement over the past decade. To stand out as a preferred employer in a competitive market, organizations need to refocus on creating a people-centric culture and offering an employee experience that builds trust, engagement, and retention. Small business trend: How can this trend be interpreted for the needs and resources of a small business? For small businesses, enhancing the employee experience can be achieved through personalized approaches that larger organizations might struggle to implement. This could include fostering a close-knit, supportive work environment, offering flexible work arrangements, and recognizing and rewarding employee contributions. Small businesses can also focus on delivering clearer communication and providing opportunities for professional growth and development, which can significantly boost engagement and retention.  One way to make engagement a more holistic and consistent part of your small business is to implement an HR and payroll solution that prioritizes culture building and can help you identify areas of opportunity to incorporate feedback, recognition, and development into everyday processes for a stronger company culture. 53% of employees are considering new opportunities.  Source: Great Place To Work® 3. The Human-AI Advantage: Unlocking Productivity There is no question that accelerating innovation and automation technologies, including Generative artificial intelligence (AI), are transforming work today. Artificial intelligence has been shown to enhance and improve employee productivity and performance. Many organizations are seeing the benefits of AI, but AI tools still rely on quality data and human participation that requires a connection between the two. To operationalize and optimize AI tools, organizations need to invest in their people through skills enhancement and digital enablement while ensuring a foundation of quality data. Small business trend: How can a small business apply AI tools for their businesses, given lower headcounts and potentially fewer resources? Small businesses can start by identifying specific areas where AI can have the most significant impact, such as automating repetitive tasks, enhancing customer service, or improving data analysis. Investing in user-friendly AI tools that don’t require extensive technical expertise can also help. In addition, small businesses should focus on training employees to work effectively with AI and ensuring that they have access to high-quality data, and collaborate with technology vendors to tailor solutions to their specific needs.  56% of executives see AI as a job creator in their organizations. Source: Mercer Conclusion The Megatrends influencing the workplace today emphasize discovering fresh and innovative ways to rethink talent acquisition, boost engagement, and enhance productivity. It’s essential to expand talent pools, transform the employee experience, and leverage AI to drive meaningful and lasting changes in the workplace for more satisfied, engaged employees and improved business outcomes.  Considered through a lens of small business trends, this translates into actions such as adopting flexible and innovative strategies to attract and retain talent, creating a supportive and engaging work environment, and using AI to enhance productivity and performance. By doing so, small businesses can not only navigate the challenges of the future but also thrive in an increasingly competitive environment.  

The Top 7 Benefits of Payroll Automation Software for Small Businesses

This blog post was originally published by UKG – inspiring every organization to become a great place to work through HR, pay, workforce management, and culture technology built for all. For small business owners, keeping your “payroll machine” running smoothly is a top priority. Payroll is the lifeblood of your employee satisfaction and trust, financial stability, and overall business health. But managing payroll can be a time-consuming and error-prone process, especially as your company grows. Manually calculating wages, withholding taxes, generating reports, and keeping ahead of ever-changing regulations can quickly become overwhelming. This is where payroll automation software comes in — a powerful tool designed to streamline the process and free you to focus on what matters most: running and growing your business. The Power of Automation Manual payroll tasks are not only slow and labor-intensive but also prone to mistakes. A single miscalculation in tax withholdings or overtime pay can lead to very unhappy employees, large IRS penalties, and a heavy financial burden for your business. Payroll automation software eliminates these issues by streamlining the entire process, from data entry and calculations to tax filing and generating reports. This not only saves your payroll team a lot of time but also minimizes the risk of errors that can lead to costly penalties and employee dissatisfaction. Let’s dig deeper into the productivity and time-saving benefits of automated payroll software and see exactly how it simplifies the payroll process: Automated data entry Payroll automation software offers seamless data integration with existing timekeeping systems and employee self-service portals. This eliminates the need for manual data entry of hours worked, deductions, and benefits elections, saving you countless hours each pay period. Imagine the time your payroll team will save by not having to manually enter hours from paper timesheets or track down missing information from employees. Streamlined calculations and withholdings Payroll software handles all the complex calculations for wages, taxes, deductions, and overtime pay. You can set up automatic deductions for benefits, garnishments, and retirement contributions, ensuring everything is accounted for accurately. No more spending hours poring over spreadsheets or relying on error-prone manual calculations. Automated tax filing and payments At last — no more scrambling to meet tax deadlines or manually filing forms! Automated payroll software can handle federal, state, and local tax calculations, deductions, and deposits, ensuring timely payments and compliance with tax regulations. This eliminates the stress of manual tax filing and ensures you’re never late on a tax payment. Effortless report generation Need to analyze payroll trends or generate reports for budgeting purposes? Automated payroll software provides instant access to detailed reports on payroll expenses, employee earnings, and tax liabilities. This allows you to make data-driven decisions and gain valuable insights into your labor costs. You can easily identify areas for cost savings, track employee benefits use, and forecast future payroll expenses. By automating these tasks, you can reclaim hours previously spent on manual payroll processing. This frees up time to allow you to focus on more strategic initiatives, such as culture-building, employee development, and business growth. Imagine the benefits of investing that saved time into creating a great place to work for all and innovating new and better ways to manage all your business functions! However, the benefits of payroll automation software go beyond simply saving time. By automating tasks, you’ll also see a substantial reduction in labor costs associated with manual payroll processing. Hiring and training dedicated payroll staff Payroll processing requires dedicated staff with specialized knowledge. Payroll software eliminates the need for additional payroll personnel, allowing you to allocate those resources to add value elsewhere within your business. You can also free up your budget for other business needs or invest in additional staff for core business functions. Reduced errors and penalties Even a small error in payroll calculations can result in penalties from the IRS or state tax agencies. Automated payroll software minimizes the risk of errors, significantly reducing the likelihood of incurring costly fines and penalties. This can translate to meaningful cost savings for your business. Improved compliance Noncompliance with tax regulations and complex payroll laws can result in hefty fines and penalties. Payroll automation software ensures your business stays current with the latest regulations, reducing the risk of noncompliance and associated fees. You’ll have peace of mind knowing you’re always adhering to all legal requirements. All these cost savings can be reinvested back into your business, allowing you to focus on growth and development. For example, you can invest in employee learning and development, expand your product line, or offer more competitive benefits to attract and retain top talent. By automating payroll, you’re not just saving money — you’re investing in the future of your business. Payroll Automation Software: Accuracy You Can Count On An automated payroll system ensures that your employees are paid accurately and on time, every time. It’s designed to handle all complex calculations, including taxes, deductions, and overtime pay, to reduce the risk of human error that can lead to missed payments or incorrect paychecks. This improves employee morale and trust in your company’s commitment to fair compensation. When your people know they’ll be paid accurately and on time, it builds a sense of security and loyalty within your workforce. Finding the Right Payroll System for Your Small Business Choosing the right payroll system for your small business is critical for efficiency and growth. So where should you start? Begin by assessing your needs based on your business size, employee types, and desired features. Research established vendors, compare features and pricing, explore system support options, and request demos so you can get a sense of how the system works and how intuitive it will be for your users. Once you’ve narrowed down your list of vendors, start building your case for change to present to leadership. Highlight the solutions’ time-saving benefits, accuracy improvements, and cost justification, and prioritize a smooth implementation for success and business growth. 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The 4 Benefits of AI for Small HR Teams

This blog post was originally published by UKG – inspiring every organization to become a great place to work through HR, pay, workforce management, and culture technology built for all. Artificial intelligence (AI) is everywhere today, and for many of us, it can all seem a bit overwhelming — especially when it comes to leveraging it for your business and reaping the benefits of AI in HR. But once you’ve got all the facts, it’s easy to see how AI can make day-to-day work for you and your HR team more efficient and impactful than ever.  Let’s start with the basics. Simply put, AI is the use of computers to do things that have traditionally required human intelligence. Its algorithms classify, analyze and form predictions from data, then learn from the new data created to improve over time. You use AI every day in devices like smart thermostats, speakers and security cameras. You use AI every day in devices like smart thermostats, speakers, facial recognition, and security cameras. This type of technology has been leveraged in the workplace for decades. Examples of workplace AI include scheduling recommendations based on a variety of requirements, notifications for possible errors from your payroll solution, and recommendations on how to interpret reports. Generative artificial intelligence, or GenAI, is a subset of AI with algorithms that can be used to create new content, such as text, images, video or code. Maybe you’ve experimented with various GenAI chatbots to see what they can do. But as much fun as it is to see how you might look as a superhero, AI and GenAI tools have many valuable business applications that are revolutionizing the ways we work today. If your organization uses a human capital management (HCM) platform, you’ve probably already seen AI in the form of automated administrative tasks, personalized learning or virtual assistants. But what does all the recent buzz about AI and GenAI mean for HR teams — especially those in smaller to mid-sized businesses?  To separate fact from fiction, here are four common misconceptions and the actual benefits of AI for HR to show how it can transform the way your HR team manages your organization’s people and can meet its business challenges.  Misconception: The benefits of AI for HR only apply to large enterprise and/or high-tech organizations. Actual benefit: AI makes work easier and more efficient for all organizations and HR teams.   It’s not surprising that many people think AI isn’t for smaller organizations because sophisticated technology can seem overly complicated and out of reach. But the truth is, AI simplifies work for HR teams of all sizes by automating repetitive tasks while helping them make better data-driven decisions and focus on more strategic business initiatives.  Most HCM technology solutions that manage HR, payroll, talent and time include AI that streamlines such tasks as recruiting and hiring, onboarding, performance management, compliance, and benefits administration. If you have received recommendations on how to create things like schedules or received notifications of possible errors, these tools are powered by AI. More recently, GenAI capabilities have been added to these solutions to guide employees, people managers and HR leaders with conversational insights, actions and answers to questions that can help their organizations become great places to work for all. These GenAI “sidekicks” provide meaningful, personalized information in the moment and recommend next steps so users always stay ahead.  Misconception: AI will replace human workers.    Actual benefit: AI enhances human capabilities such as creativity and reasoning.   Although AI makes day-to-day work processes easier and more efficient, as an HR professional, you’ve likely heard employees express fear about losing their jobs “to a machine.”  The reality is that, rather than replacing us, AI can be used to enhance the emotional intelligence that makes us human. After all, businesses are created and run by people, for people, so human emotions such as feeling empowered and connected, having empathy for others and taking pride in a job well done are always going to play a major role in business success — and something AI can’t remotely replicate.  Additionally, AI could help smooth that path forward and help provide guidance on how to continue to foster the growth of your people and the company. To help your people, AI can be used to help you create flexible scheduling options to accommodate an employee’s personal obligations, spot concerning trends to address burnout, and streamline collaboration and reporting for more purposeful work. By allowing AI to give you a bird’s eye view and provide you with recommendations on how to move forward based on the data and proven practices, you’ll be able to leverage AI to make improvements you may not have otherwise seen.  Misconception: AI is expensive and time-consuming to execute. Actual benefit: The long-term ROI of implementing AI outweighs short-term disruptions.    Implementing AI for your small to medium-sized business may seem daunting, but resisting this technology could end up costing you more than you might realize in terms of lagging productivity and market competitiveness.  The organizational efficiencies gained through AI can greatly offset the cost of implementation. And while it may take a while to get everyone up to speed on the new technology, making that time investment will greatly boost business growth and productivity in the long run.  For HR teams specifically, AI tools can help enhance the entire HR lifecycle, from helping you create compelling job listings to attract top talent to giving you recommendations on how to retain your people as they continue to grow with your company. AI can also help your team become more knowledgeable and efficient, resulting in better decision-making and improved business outcomes. Misconception: Using AI is risky for HR. Actual benefit: AI’s full potential can be safely leveraged with the right data security and privacy safeguards. As with any new technology, accuracy and data privacy and security are going to be top-of-mind issues for any organization deploying AI tools — and for HR teams, that will mean prioritizing the safety of sensitive employee and company information. This

Can a Small Business be a Great Place to Work?

Can a Small Business be a Great Place to Work? This blog post was originally published by UKG – inspiring every organization to become a great place to work through HR, pay, workforce management, and culture technology built for all. With seemingly endless modern job perks on the rise, HR professionals at small businesses may be wondering how they can compete with larger organizations to attract and retain the best talent. For an already resource-strapped company, it can be overwhelming to think about spending more time and money to win the war for talent against those with big budgets and dedicated teams focused on culture and engagement. But it’s critical not to get lost in the noise here. Instead, when competition for talent is high, smaller organizations need to ask a simple question as they wade through all the perks and initiatives their larger counterparts engage in — is that what really matters to people? We can all agree that free food and office yoga classes are nice incentives, but research from Great Place to Work® shows that employee retention is less about the perks and more about creating a company culture of care. It’s about trust, leadership, human connection, wellness, and belonging, diversity, equity, and inclusion. So with that in mind, what should small businesses rally around to create stand-out cultures? Let’s take a look.  What’s easier for small businesses? Because small businesses are, well, small, it’s easier for them to build and foster trust — the defining component of a great workplace. Whether it’s more transparency or less corporate hierarchy, small businesses can use this advantage to find and keep the talent they need to thrive. After all, a great workplace is one where employees trust the people they work for, have pride in what they do, and enjoy the people they work with. And if size doesn’t dictate great culture, then yes, a small business can be a great place to work with the right mix of core values. As we get into some more specific examples of how HR pros at small businesses can use the advantages they have to build an employer brand and invest in company culture, take a look at the diagram below to see the five core elements of building trust with employees and where in the organization employees look for those elements: What can small businesses do to create great workplaces? There’s no single blueprint or one-size-fits-all approach to building a great place to work. There are, however, some common areas you should investigate as starting points. Looking into the following areas may help you map the key points in an employee’s journey with your company and reinforce cultural values like trust, respect, purpose, and community. Start day one off strong with a thoughtful onboarding process Employees want to feel connected to the organization, and as a small business, it’s easier to make that personal from the beginning. A positive first impression is imperative to an employee’s wellbeing, and people often form that impression before they even join your organization. Completing redundant tasks and leaving new hires wondering what steps to take next will negatively impact their overall experience. By connecting your recruiting and core HR processes, you can ensure new hires trust that their success is top of mind for their manager. Looking for a specific idea? Try building out individualized 90-day action plans as part of your onboarding experience. Prioritize career development Have you heard of an internal talent marketplace? It’s a more efficient, technology-driven employee management and retention system. It leads to better retention through tracking the skillsets of employees and helping them to further develop and build upon those skills, and it works with them to build a career path within the organization. To do this, there needs to be a commitment to support fair and consistent performance and succession strategies that identify, nurture, and develop top talent. Small businesses often have flat structures, which allows employees more visibility and connection. These broader learning opportunities ultimately keep everyone invested in the company’s culture, and both internal and external job seekers will view your organization as one that prioritizes career development. Focus on all aspects of wellbeing Great Place to Work surveyed over 14,000 people from 37 countries to better understand trends in the average worker’s day-to-day experiences of wellbeing in their workplace, and found that while employee experience is influenced by many factors, there are a few key areas HR needs to focus on to promote positive employee wellbeing: ·         Mental and emotional wellbeing: The first step in promoting mental health at work is to talk about it. Over the last two years, mental health has come to the forefront for many of us as we experienced the pandemic, the challenges of navigating remote work, and social unrest. This is an issue that affects all people, at all levels in an organization. Mental wellness check-ins, providing resources, and offering formal programs are becoming priorities for many organizations moving forward. ·         Sense of purpose: Aligning an individual’s role with the organization’s values correlates to a higher sense of purpose, which has been linked to higher resilience and more favorable views of employers. We’ll talk a little bit more about purpose later. ·         Personal support and meaningful connections: When employees are given proper resources and workplace flexibility, they’re more likely to have a positive sense of wellbeing. Supportive social relationships within a team are also important, as an environment of equity and inclusion is necessary to create psychological safety and teamwork. ·         Financial wellbeing: Many people spend a significant amount of time worrying about their personal finances at work. It’s important that employees earn enough to feel financially stable, and that your workplace promotes equal pay practices, but what more can be done? Offering programs that give employees access to their pay before pay day, for instance, has been linked to improvements in productivity and reduced absenteeism.   Celebrate your people’s achievements to foster a sense of purpose Nearly 50 percent

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