Money – Page 3 – mardihumphreys.com

The Catch

Here in the technology space there is a lot of murmuring around unlimited Paid Time Off (PTO) as an employment benefit. As of October 1, 2023, 43.16% of job listings in the technology sector offered unlimited PTO. Is it the answer to better work-life integration and increased job satisfaction?

Employers

Productivity: You want to enhance employee well-being, but unlimited PTO inherently carries the risk of abuse. A sudden surge in leave requests can halt delivery on a contract. Traditional PTO policies provide structure for you to manage workloads effectively. With unlimited PTO, how do you both anticipate and mitigate potential gaps in staffing? How does this unpredictability affect project timelines?

Policy: The absence of a clear legal framework can lead to potential disputes with your workforce. The United States does not legally require paid time off for workers, so it is a business expense for companies that offer PTO to employees. Unlimited PTO must have an expiration date so you can budget. Many states expect businesses to pay out earned time off when an employee leaves the organization. In August, CBS News reported that American companies are carrying about $224 billion in liability for employees’ unused PTO. If employees are not earning PTO, then companies do not have to pay them for what they do not use. How will you address employees’ expectations of getting paid for unused unlimited PTO?

Employees

Panic: How do you know how much time off is too much? Last March, Forbes found that employees with unlimited PTO only take 10 days off annually. Why? Fear, too much work to do, and pressure from their managers because of the timing. When employers do not have rules around PTO, every request is a negotiation and instead of a contractual term of employment, time off becomes a moral issue. Can the company afford to pay you to not work? If your manager thinks you take too much time off, does that negatively impact your next promotion?

Peers: You may feel compelled to match your teams’ work habits. But accumulating significant amounts of unused time off can lead to burnout. Do your coworkers grumble about filling in for you? Will you be labeled a slacker if you take extended time off?

Both

Expectations: The goal is to balance the employer’s need for productivity and the employee’s desire for flexibility. Establish transparent guidelines outlining expectations for both individual contributors and managers. Clearly communicate that taking time off is not only acceptable but also encouraged for maintaining healthy boundaries.

Check-In: Schedule regular check-ins to assess workloads, stress levels, and job satisfaction. Encourage open communication between teams and managers to address concerns and prevent burnout.

Train: Equip managers and individual contributors to effectively navigate the challenges of unlimited PTO policies. Help supervisors acquire skills to manage workloads, plan for time-off coverage, and create an environment that values both productivity and employee well-being. Clearly communicate unlimited PTO policies to your workforce.

Adjust: Conduct periodic reviews of the unlimited PTO policy to assess its impact on productivity and employee satisfaction. Employers need to be willing to continuously improve the policy based on employee feedback and changing organizational needs.

While unlimited PTO seems like a perfect solution to work-life integration, it comes with its own set of challenges. Striking the right balance between flexibility and productivity requires thoughtful implementation, clear communication, and a commitment from both employers and employees to make it work.

Does your organization offer unlimited PTO? Please share your experience using it in the comments.

Reimagine Compensation

The United States Internal Revenue Service defines full-time employment in terms of hours. Their standard is an average of 30 hours per week or 130 hours per month. You can sit at a desk for those hours and wait for the email notification to ding, but is that productive? If you secure a new customer over a lunch hour, do you have to work another 39 hours that week?

Tradition

Rooted in the labor movements of the 19th and early 20th centuries, the 40-hour work week was established to protect workers from exploitation, ensure work-life balance, and promote economic stability. Technology, remote and hybrid work arrangements, and a shift in how we measure productivity, makes this rigid structure unsuitable for a wide range of jobs and industries.

Transformation

Employees are increasingly prioritizing autonomy while employers are increasingly recognizing the value of results over hours logged. The result is transforming the way employees are compensated. Instead of being paid solely for the number of hours worked, employees can be compensated based on their skills, the networks they bring to the organization, and the outcomes they deliver. For example, freelancers, gig workers, and project-based contractors are compensated for completing tasks, the quality of their output, delivering specific results, and the impact on the organization’s success, rather than for a set number of hours worked. This approach aligns more closely with the idea that the value an employee provides to the organization is not solely a function of their time, but the quality and impact of their work. We talked a couple of months ago about how being busy is not a reflection of productivity. With the aid of technology, it is now easier to track and assess work progress and results, no matter where, when, or how an employee chooses to work. Key performance indicators (KPIs), project milestones, and deliverables are more significant in assessing an employee’s productivity rather than the mere number of hours spent at a desk.

Transition

In a traditional office setting, it’s easier to monitor and manage employee performance, but in the age of remote work, new methods and tools are required to maintain accountability. Here are some basics.

Trust and Flexibility: While accountability is essential, micromanaging erodes trust and hinders productivity. A results-oriented approach, where employees are given the autonomy to manage their own work, can be highly effective.
Clear Expectations: Work together to define realistic goals, deadlines, and deliverables. Then evaluate employees based on objective performance metrics like goal achievement, quality of work, and impact on the organization.
Technology and Tools: Time-tracking software, project management platforms, and communication tools are invaluable for keeping remote workers on track. Frequent check-ins, whether through video calls, phone conversations, or written updates, can help maintain both connection and accountability. These interactions allow employees to discuss progress and challenges, and receive feedback and guidance.

The demise of the 40-hour work week is not the end of structured work but a transformation that better aligns with the demands and opportunities of the modern workplace. As remote and hybrid work arrangements become more prevalent, a new model of compensation and productivity measurement emphasizing flexibility, autonomy, and results ultimately benefits both employees and employers.

If you are not paid for your time, then by what measure do you get paid? Please share in the comments.

Let’s Confer

Your inbox is overflowing with tempting invitations to register for conferences. Your training budget is tight to non-existent, so why should you spend money to attend a conference? Maybe you shouldn’t. What benefits would you receive? What criteria should you use to evaluate whether or not to attend a conference?

Benefits

Knowledge Sharing: The world of work is constantly evolving, and it’s crucial to keep up with the latest trends and tools in your industry. Conferences are a hub of knowledge. They offer opportunities to learn from experts through keynotes, participate in hands-on workshops with your peers, and gain insights into cutting-edge technologies from vendor demonstrations. Conferences provide a platform for you to both expand and share your knowledge.

Networking: Every industry thrives on connections and collaborations. Conferences intentionally bring together professionals, thought leaders, and peers to give you time and space to interact. Meeting like-minded individuals can lead to valuable partnerships, job opportunities, and mentoring relationships. Engaging with professionals who share your interests can provide fresh perspectives and inspire new ideas.

Advancement: Investing in a conference should be a strategic career move. Many employers view participation in conferences as a sign of commitment to professional development and growth. They can be an opportunity to present your work, which can enhance your reputation within your industry. Exposure to a wide range of concepts and specialists can open doors to new career paths and opportunities.

Inspiration: Hearing success stories, attending keynote presentations, and participating in brainstorming sessions can rekindle your passion for your work and remind you of the bigger picture. Conferences can help you stay motivated and engaged.

Criteria

Relevance: Before committing to a conference, ask yourself how it aligns with your goals. Is the event focused on a relevant topic you want to learn more about? Does the conference’s content match your professional development objectives?

Quality: Check out the schedule of speakers and breakout sessions. Are subject matter experts presenting? Look for sessions that promise valuable insights, practical knowledge, and interaction. A well-curated lineup can make a significant difference in your conference experience.

Location: Map the conference’s location. Is it in a city with convenient transportation options? Can you easily attend without disrupting your work and personal life? Sometimes, local conferences can be just as valuable as international ones.

Cost: Evaluate the cost of attendance, including registration fees, travel, accommodation, and meals. Compare this cost to the potential value you expect to gain from the conference. Remember that the benefits, such as networking opportunities, knowledge acquisition, and career advancement, can often outweigh the financial investment.

Reviews: Are survey results or testimonials from past attendees available from a source other than the promoter of the conference? Research the conference’s social media platforms for comments on past events. This feedback can provide valuable insights into quality and whether this conference aligns with your expectations.

Support: Discuss the conference opportunity with your employer. Some companies have budgets for upskilling. Ask your manager if attending this conference qualifies for continuing education dollars. Highlight the potential benefits to your company, such as the knowledge you’ll bring back to share and new partnership opportunities for the organization.

Investing your money in attending conferences is a strategic move that can propel your career forward. Attending the right conferences can be a transformative experience that equips you with tools, connections, and insights to thrive in the constantly evolving workforce.

What conferences did you attend this year? Were they a good investment? Please share your favorites in the comments.

Bad Reputation

When you think of Sales, does it conjure up a vision of a used car lot and an overexcited man in an ugly plaid jacket? No? Just me? Okay. As a profession, Sales has a bad reputation. Sales people are stereotypically portrayed as fast talking deceivers.

But, everyone in the workforce is a salesperson even if the word Sales is not in your job title. People associate you with your organization. You have the power to help and hurt your employer. If you enjoy working for your organization, then you will speak highly of it to others. If you don’t, you won’t, and people notice both. For example, let’s say you are a hygienist for a family-owned small dental practice. The next time your friend from the gym has a toothache, will they call your office because you speak so highly of it? Or will they avoid it because you complain?

For this conversation, let’s pretend you are the hygienist mentioned above. You like your job well enough to speak favorably about it and you are not in a sales role. Your success not only depends on your performance, but also on a steady stream of patients. How can you help the business grow even though you are not responsible for attracting patients?

Relationships

Sales skills are communication and caring skills. In our hygienist scenario, you do not have sales goals to meet. This gives you the luxury of being able to take as much time as you want getting to know people and when they need dental services, they will call you. So, when you have face time with friends and family, listen intently and actively. Put your phone upside down on the table and look them in the eye. Do not interrupt their story. When they pause for your response, wait a second to indicate you really heard them, then ask an insightful follow up question to prove it. Great questions lead to great answers. Even just a, “Say more, please,” demonstrates your interest and empathy. When people feel listened to, they feel understood and validated. When they feel understood and validated, they like you. When they like you, they trust you and business moves at the speed of trust.

Experience

When it’s your turn to talk about yourself, it’s natural to talk about your work. In our hygienist example, you may have an anecdote about a one-year-old child’s first trip to the dentist and how you made them feel so at ease they did not want to leave. Then ask your friend what is going on at their workplace. This prompts them to share a success story too. The positive conversation makes you both want to have future interaction, so be sure to follow up. Strive to make people feel comfortable and respected. Show you care about them as a person. Take opportunities to tell stories of how people feel safe with you and how your organization makes their lives both better and easier.

Honesty

Being honest is integral to building relationships and establishing it takes time. Think about a potential client. If you were in their shoes, how would you want to get to know your product or service? What would make you feel respected during the customer journey? In our hygienist example, if you are having coffee with a friend and they mention they are embarrassed by their coffee-stained teeth, do you have a story about a happy customer who had whitening done? Can you suggest an over-the-counter solution they can try first? You aren’t selling your services, you are solving their problem. Steering someone away from your service actually makes it more attractive. You are proving that you value their relationship more than their money.

How do you feel about attracting people to your organization? Please share in the comments.

Site Inspection

Last week, we looked at some ways employers can begin to solve the working remotely challenge. This week, let’s discuss your role. As an employee, you have a few questions to contemplate. Does your organization consider working remotely a privilege or a right? Are you willing to take a pay cut to work remotely? What message are you sending to your managers? Is it clear, kind, and collaborative?

Both employers and employees require communication, empathy, and flexibility to effectively negotiate. This week, let’s think about what constructive steps employees can take to help build a bridge across the working remotely gap.

Communication

Build your case for working remotely. You can include why it is best for you, but put more emphasis on why it benefits both your manager and your organization. For example, working remotely reduces your commute time. This is good for you because it saves you money. It’s good for your manager and your organization because you can spend that time working instead of commuting.
Provide data that supports your case for remote work. Pull up your Atta Baby file. Do you have any documentation of your increased productivity, successful project outcomes, and positive feedback from colleagues and/or clients from March 2020 to the present?
After gathering your evidence, schedule a meeting with your manager. Clearly and calmly present your case. Give brief illustrations of how remote work has positively impacted your work quality, efficiency, and overall well-being. Then actively listen to your manager’s perspective. Understand their reasons for wanting you in the office full-time. This can help you find common ground and empathize with their concerns.

Empathy

If your manager has specific doubts about you working remotely, address them directly. For example, if they’re worried about collaboration, share how you plan to stay connected with colleagues and contribute to team projects while off site.
Highlight how you’ll maintain accountability and meet your metrics. Describe to your manager how you’ll be available, responsive, and productive. For example, someone who emails you with a simple request on a Wednesday at 8:00am can expect a reply from you within thirty minutes.
Be receptive to your manager’s feedback and open to adjusting your proposal based on their input.

Flexibility

Suggest compromises that address both your needs and your manager’s misgivings. How about a hybrid schedule where you’re in the office for certain days or specific team meetings?
Suggest a trial period for this arrangement and ways to both evaluate its effectiveness and make adjustments as needed.
If the conflict remains unresolved, consider involving Human Resources to mediate. They can provide guidance on the interpretation of your organization’s policies.
If you and your manager come to an agreement, document the details in writing to avoid any misunderstandings later.
If you do not reach an agreement, that gives you valuable data. It shows you what your employer expects. It also reveals the conditions under which you are willing to work. You can use this information to make decisions regarding your future with this organization.

The goal is to find a solution that benefits both you and your employer, and meets the needs of your team and your organization. Effective communication and a willingness to compromise are essential for reaching a resolution that everyone can support.

How is working remotely affecting your work life integration? Please share in the comments.

Finance is Personal

For most of us, money is not fun. You usually have to work to get it, spend some of it on things you’d rather not, and managing it can be confusing. But if you don’t manage it, then it will manage you. So, let’s simplify by putting personal finance into the 5Ws and an H framework. Who, what, when, where, why, and how should you manage your money?

Who: Everyone

What: Personal finance means controlling your income, expenses, savings, investments, and debt by making informed decisions to meet both your short-term and long-term financial goals.

When: Now

Where: There are numerous options for where to put your money to make it work for you. Traditional brick-and-mortar banks and credit unions are good for everyday transactions. High-yield savings accounts at online banks are good for longer-term savings. For investments there are apps, brokers, wealth managers, and plenty of others willing to help you. Here are some options to consider.

Why: Managing your personal finances gives you peace of mind, helps you reach financial independence and allows you to achieve your goals. Having an emergency fund and long-term savings gives you confidence to take career risks. For example, taking a job at start up or opening your own business. You have a lot of freedom when you aren’t dependent on others for monetary support. You have flexibility to choose where and how you want to live, work, volunteer, and play. Whether it’s saving for retirement, buying a house, or paying for education, managing your finances is crucial to reaching your life goals.

How:

Build a realistic budget based on your monthly income and expenses that covers all your essential needs like housing, utilities, groceries, transportation, loans, credit card balances, and emergency fund
Pay off debt particularly high-interest credit cards and loans. Make more than the minimum payment if you can. Avoid accumulating more debt unless it’s absolutely necessary. Being debt free helps you maintain a good credit score and gives you access to financial opportunities like investing
Grow your money by setting up automatic transfers to your savings account each month. Your long-term goal is to save at least 20% of your income. Eventually you can use your savings to make a big purchase like a dream vacation, a car, or whatever you want
Make your money work for you by investing it wisely. If you are a patient person, a financial advisor or wealth manager can help you choose a portfolio of stocks, bonds, and mutual funds. If retirement is many years away for you, these are good ways to grow your nest egg. A financial advisor should also be able to help you understand your responsibilities for taxes, insurance, and retirement planning

When you have control over your finances, you are empowered to handle unexpected expenses, cope with economic downturns, and secure your future.

What do you do to manage your personal finances? Please share in the comments.

Spending the Summer

How is it Independence Day already? If you’re going to take a summer vacation, the season is half over. Yes, travel is pricey, but there are ways to mitigate the expense. Here are a few strategies to stretch your hard-earned money.

Plan for Spontaneity

If you don’t have your heart set on a certain destination, then start with your budget. Your vacation has categories like transportation, accommodations, food, and entertainment. Assign dollars to these categories, but keep in mind that the price things cost changes every day.
Prices follow demand. If you can vacation at an off-peak time and place, (e.g., Tuesday – Thursday in Columbus instead of Friday – Sunday in Orlando) then travel and lodging will be cheaper.
Use a travel app (Travelzoo, Skyscanner, Hopper, etc.) to research discounts. Enable notifications so you are alerted when the price of flights and hotels goes down. Check your loyalty programs. Do you have points to use?
If you choose to fly, check your airline’s baggage policy before packing your suitcase. Can you fit everything in a carry-on? If so, you can avoid excessive baggage fees.
What is going on at your destination? Is there a fair or festival? Is there a ballpark offering a discount day? Is there a coupon for a museum tour? Does a local restaurant offer a kids-eat-free-with-adult-purchase option? If you can plan your itinerary around deals on entertainment and eating, then you can save a lot of money.

Go Further Together

Can you vacation with family or friends? If you travel in a group then you can divide the costs. For example, if you drive, you can carpool and take turns paying for gas. If you stay in a hotel, you may be able to negotiate a group rate. Or, check out websites like Airbnb or VRBO for alternatives. What about renting a house? When you have a kitchen you can all chip in to buy groceries. You can either take turns cooking or you can make meals together instead of eating out every day. When you do eat out, look for locally-owned restaurants to support. Restaurants catering to tourists often charge more for the same meal options. Choosing local serves multiple purposes. You get to experience both the culture and cuisine of your destination and you’ll save money. You will save even more money if you can either walk or take public transportation to get to the eatery. Research the available options while planning your trip.

Short and Sweet

If you don’t have the time, money, or patience to deal with the chaos going on in the travel industry right now, then at least take a break with a staycation. If you are into camping, some state parks have no-fee options. Or take a day and do something you don’t usually do like go to your local art museum, or take a hike at a nearby Metropark, go to a movie theater and attend the first showing of the day, relax with a book at your neighborhood pool, stay all day at an amusement park including the closing fireworks show. You can have a good time and stay within your budget.

What you are doing to get away this summer? Please share in the comments.

Self-worth

We talked last week about getting laid off from your job, but we did not talk about its negative impact on your budget. You know it’s important to maintain an emergency fund (three to six months worth of expenses), and the best time to do that is before you need it. But why is it so hard to save up your money?

Status

Society trains you to attach your self-worth to your income. It’s one way to evaluate success or failure. Have you heard the motto, “He who dies with the most toys wins”? People are competitive. In the workplace, the person who has the most money has the most power. You carry that mindset into relationships outside of work. You gravitate toward people with similar socioeconomic backgrounds. If you feel your income is lower than your friends, then you’re embarrassed to discuss it. But talking about finances can create community because people have knowledge to share. For example, if you both have car loans, what is their interest rate? Is it lower than what you’re paying? That conversation may not only save you money, but also build a stronger relationship. Comparing yourself to others is useless. There will almost always be someone in your life who makes more money than you. You decide how much status, comfort, and peace of mind is enough for you.

Humans are Judgy

Discussing money openly is still generally considered impolite. Seventy percent of Americans think money conversations should be kept private. Other people aren’t the only ones judging you based on your income. You also judge you. If your income is tied to your sense of identity, then revealing it feels like exposing something deeply personal. It’s especially painful if your income does not match your goals. Society places a lot of value on financial success. You may feel looked down on if you know your income is less than your coworkers. That is one of the reasons the culture of the American workforce traditionally gives for the strong privacy policy around finances.

Paradigm Shift

The pandemic made the workforce rethink what making a living looks like. For example, is there more to life than working under the terms and conditions someone else sets? Or why do you care about society’s opinion when they aren’t living your life? If tightening your budget will enable you to live the way you want, then try these ideas.

Determine essential expenses (housing, utilities, groceries) and cut back on non-essential expenses (eating out/food delivery, entertainment, subscription services)
Review your health, (medical, dental, eye) car, life, and any other insurance policies. Make sure you have adequate coverage, don’t have more than you need, and you aren’t paying more than necessary
Pay off your credit cards ASAP. Look for a card with a lower interest rate. When you find one, contact your bank and ask them to match it
Work an additional flexible-schedule job (dog walker, food delivery driver, consultant) to supplement your income until you get your finances where you want them

Saving your money is hard because it’s not about money. It’s about how you feel about money. How do you prioritize how much is enough? Please share in the comments.

Happy Endings

With Mother’s Day and Father’s Day coming up, you may be celebrating your parents over the next few weeks. Maybe you will get together and relive memories of their past as you grew up. Are you also thinking about their future and how it may impact yours?

Once your parents retire Social Security and Medicare will help with living expenses, but it’s likely they will outlive those funds. You need to know if they have savings and safeguards in place to protect the money they worked so hard for. Here are some things to consider.

Fraud

Since older adults have had more time on the planet to save up their money, they are logical targets for fraud and not just by strangers. When talking to your parents listen for stories of any new friends coming into their lives and how they spend time together. For example, when they go out to lunch, does your parent always pay the check? Here are some other things to watch for. Also talk about the latest cybersecurity scams. Criminals are employing the latest capabilities of AI to do scary things like enhance family emergency schemes.

Finances

Always a touchy subject, but the economy is perpetually uncertain. Everyone wants to ensure they have all the resources they need to live the rest of their lives the way they want to. Here are a few questions to ask.

Do they have savings (e.g., IRAs, pensions, etc.) in place?
Do they have outstanding debts?
Do they have the necessary documents (like these ) filed?
Not to be morbid, but have they thought about funeral arrangements? Do they want their remains to be buried or cremated? Are they organ donors? If they haven’t thought about it yet, encourage them to document their preferences so you can carry out their wishes after they are gone.

Fulfillment

Mostly, you want to know that if you die before they do they have a plan for living out the rest of their lives in safety and comfort. Here are some questions to ponder together.

Is the interior of the house okay? Accessories like grab bars in the shower, a chairlift for the stairs, and adequate lighting throughout the house will help prevent falls.
Do they have any chronic conditions? Are the names and contact information for their healthcare providers written down somewhere that you can access if necessary?
Do they have a community? Social engagement is important for mental and emotional health no matter how old you are. Do they volunteer with their church? Does their city have a senior center?
Do they feel safe driving? Are they open to public transportation, ride-sharing, or a nonprofit’s transportation program?
When they eventually need help aging in place, should you live together? If so, who is financially responsible for what expenses? How much physical help will they need before it’s beyond your capabilities? Should you get advice from an eldercare attorney to prepare yourselves for what the future may bring?
If they ultimately need an assisted living community, how do you find a trustworthy one? Here’s some information on where to begin.

The future and money are both emotional conversation topics. If you approach them with empathy, respect, and active listening, they will be more productive. Be aware this is not a one and done. You will revisit these issues as long as you are blessed to still be on the same planet as your parents.

What resources do you recommend for aging in place? Please share in the comments.

The Big Reveal

When you ask for a raise and you’ve talked about how you have increased your responsibilities and your plans to either save the company money or bring in more revenue, that’s when your manager asks, “How much money do you need?” What if you’re a crew member at a fast food restaurant and your reply is, “How about $25 an hour?” Neither question seems helpful. Your manager should know (and be willing to disclose) the budget range for your position. Salary is not determined by how much the employee needs. It is based on how much the company is willing to pay an employee to get a job done on time, under budget, and with excellence. Does this seem weird to anyone else? No? Just me? K. Moving on.

One of the best ways to find out how to solve a challenge is to ask someone who has been through it. However, we’re trained early in our careers to not talk with our coworkers about compensation. Why?

Employers cannot forbid their employees to tell each other how much money they make. In fact, it’s a right protected by the National Labor Relations Act. Yet, we know we’re not supposed to and some employees have gotten fired for doing so. Authenticity at work means being open about who you are, your values, beliefs, and experiences. Your compensation is one of your experiences. Some state legislatures agree and have passed pay transparency laws to aid in reducing pay discrimination. This new authenticity has ramifications for both the employee and the employer.

For the Employee

Pay transparency laws require companies to disclose salary information to job seekers. These laws are supposed to make it easier for potential employees to negotiate salaries and feel confident they will receive fair compensation for their work. The fast food employee in our scenario above should get online, find the restaurant’s job postings, look for their job description, and see what pay range is offered. Then they will know how much of a raise to ask for. They should also look at other similar fast food restaurants’ job postings. Are they offering the same pay range?

For the Employer

Pay transparency laws should help you reduce turnover and avoid costly discrimination lawsuits. While adjusting to the new rules, be aware there may be hidden compliance costs. For example, you may need to invest in new systems or processes to collect and disclose salary information. This could increase your administrative costs. You may also need to raise your current employees’ salaries to prevent them from quitting. To do this at a sustainable pace, you can tie raises to job performance and give reviews twice a year. Before posting an open position, check to see what pay range your competitors are offering.

Negotiating terms of employment is where the foundation of trust gets built between an employer and employee. Pay transparency laws should produce a more competitive job market, better informed decisions, improved employee morale, and a more positive work environment for everyone.

How do you feel about pay transparency? Please share in the comments.