More retirement savers are making hardship withdrawals | Criminal record significant barrier to employment | Building relationship is key to effective leadership
Retirement plan administrators, including Fidelity and Vanguard, have observed an increase in hardship withdrawals amid the rising cost of living and Bank of America reports that in the first three months of 2023 that the number of people taking hardship withdrawals rose 33% from the same period a year earlier. Experts worry these numbers could increase as the Secure 2.0 Act, which was passed by Congress last year, expands the list of circumstances in which the 10% penalty on money withdrawn if the owner is 59½ or younger is waived. Full Story: The New York Times (5/29)
73% of U.S. workers are also home caregivers The need for caregivers is increasing. So is the demand on family members who have to step in. This has a large impact on employers and employees. Is it affecting your company? Attend a caregiving webinar hosted by Tricia Sandiego, Senior Advisor for the AARP Caregiving & Health team to learn more. Register Now.
ADVERTISEMENT:
Recruiting & Retention
Criminal record significant barrier to employment One in two Americans with old convictions experience problems finding and sustaining employment, and $23,000 is the average annual earnings for those with felony convictions, according to the 2023 National Survey of People with Records from the Alliance for Safety and Justice. Reintegration and stability for those with criminal records is "nearly impossible," says Jay Jordan, CEO of the Alliance of Safety and Justice. Full Story: CBS News (5/26)
Discover the benefits of age diversity. Older workers have the creativity to take on new challenges. Join thousands of companies that made the pledge to hire experienced workers. Sign pledge today.
Superstar employees deserve a unique approach in relation to compensation, recognition and flexibility due to the value they deliver for employers, writes RainmakerThinking CEO Bruce Tulgan. Don't be the employer who sticks too rigidly to HR policies to make exceptions for exceptional employees, Tulgan warns. Full Story: Training magazine (5/26)
Benefits & Compensation
What vesting schedules mean for your 401(k) While most companies that offer 401(k) plans to employees also make matching contributions to their retirement savings, many also require workers to wait a specified period of time before the funds are fully vested, in some cases as long as six years. However, the share of plans that offer immediate full vesting of the company match has risen to more than 44%, according to the Plan Sponsor Council of America. Full Story: CNBC (5/26)
We often use sarcasm in the workplace as a source of humor, but it can also be detrimental to communication when it becomes passive-aggressive, cynical or defensive, however it can be effective when team members trust one another, writes John Millen. "A room full of writers for a TV sitcom can fire sarcastic missiles endlessly without an issue, but a business meeting where trust is lacking is a different story," Millen notes. Full Story: John Millen blog (5/26)
SmartBreak: Question of the Day
The Scripps National Spelling Bee starts May 30. So, what's a g-u-e-r-d-o-n, guerdon? Check your answer here.
I’m a fan of second-chance programs, initiatives designed to help people who were incarcerated find employment and put their lives back together. I’ve written about John Hunter and Tyrone Gladney, two former felons who found success in college and entrepreneurship. I have respect for their work and determination. But one reason I respect these men is because they own their mistakes. They don’t blame a system, their upbringing or other people for putting them in jail. They both admitted to me that they made choices that earned them their sentences. And then they worked very hard to change their lives and build careers. And it was hard work. Hunter had to leave the town where he grew up and divorce himself from friendships he had for years. Gladney struggled with unreliable employees he hired in the early days of his business. He wanted to give other former felons the opportunity to work, but their shoddy work ethic cost him thousands in damage claims. Choices have consequences and rebuilding one’s life after incarceration comes with deep cost, as we see in today’s Recruitment & Retention story. People profiled in the story talk about the struggles they’ve had in finding employment and restoring their lives. It’s a battle, for sure. But people have been successful in this battle. I’ve seen it. I know more of those stories than just the two linked here. People I know who have changed their lives after serving time have detailed for me the hoops they jumped through to get records expunged, talk HR directors into giving them a chance and having to settle for one job while they work toward getting one they really want. They accepted the challenges as part of the cost of true freedom. I do believe it’s time we review some laws and policies to see if they are fair and effective. I believe that employers can find excellent talent among those who were previously incarcerated. But I also believe that the road to success may be bumpier and longer for some of these individuals. It may have some potholes and detours. That should be expected. I urge those in this process -- workers and employers -- to be patient and persist. The outcome is worth it. Are you hiring people who were once in jail or prison? Do you know successful second-chance programs? Let me know! And if you enjoy this brief, tell others so they can benefit also.
Sharing SmartBrief on Workforce with your network keeps the quality of content high and these newsletters free.
