That’s exactly what the Qualified Business Income Deduction (QBI deduction)—sometimes called the 20% pass-through deduction—was designed to do.

Introduced under the Tax Cuts and Jobs Act of 2017, this deduction allows eligible business owners to deduct up to 20% of their qualified business income. For many entrepreneurs, that could mean keeping more of your hard-earned profits, reinvesting in your company, or simply reducing the stress of tax season.

Here’s the catch: the rules are complex. The IRS doesn’t make it simple to figure out who qualifies, how much you can deduct, or how payroll and employee management affect your eligibility. Many small businesses unknowingly miss out—leaving thousands of dollars on the table.

That’s where EinsteinHR comes in. As a PEO broker, we connect small businesses with the right Professional Employer Organizations (PEOs) to handle payroll, HR, compliance, and employee benefits. A properly structured payroll system isn’t just about staying compliant—it can directly impact whether you qualify for the QBI deduction and how much you save.

This complete guide will cover everything you need to know about the Qualified Business Income Deduction:

• What it is and how it works.

• Which businesses qualify.

• How to calculate your deduction.

• Common mistakes to avoid.

• How payroll and HR play a critical role.

• How NetPEO can help you maximize your tax savings while simplifying your business operations.

Don’t wait until tax season surprises you. Talk to a EinsteinHR advisor today to see how the right PEO can help you keep more of your profits.

What Is the Qualified Business Income Deduction?

The Qualified Business Income Deduction (QBI) is one of the biggest tax breaks available to small businesses in the United States. It’s often called the 20% pass-through deduction because it allows certain business owners to deduct 20% of their qualified business income from their personal taxable income.

The Basics

• Who it’s for: Owners of pass-through businesses such as sole proprietorships, partnerships, S corporations, and LLCs taxed as pass-through entities.

• How it works: Instead of paying taxes on your entire business income, you can deduct up to 20%—meaning you only pay taxes on 80% of it.

• Who it excludes: C corporations don’t qualify because they already pay corporate income taxes.

Example: How Much Can You Save?

Let’s say your business earns $100,000 in qualified business income. With the QBI deduction, you may be able to deduct $20,000. If you’re in the 24% tax bracket, that’s a tax savings of nearly $4,800.

For many business owners, this deduction can be the difference between hiring a new employee, investing in marketing, or simply boosting your take-home pay.

Why It Matters for Small Businesses

Large corporations often benefit from specialized tax structures and teams of accountants. The QBI deduction helps level the playing field, giving small businesses a powerful way to reduce their taxable income.

Confused about whether your business qualifies? Contact EinsteinHR today. Our PEO partners help manage payroll and HR compliance so you don’t miss out on deductions.

How the QBI Deduction Works

The deduction sounds simple, but the details can get complicated quickly—especially if your income is above certain thresholds.

Step 1: Calculate Qualified Business Income (QBI)

QBI includes the net profit from your business operations. It excludes:

• Capital gains or losses

• Dividends

• Interest not related to business activities

• W-2 wages you earn as an employee

Step 2: Apply the 20% Deduction

If your taxable income is below the IRS threshold, you can usually take the full 20% deduction without additional limits.

• For 2024 tax year:

  • Single filers: $191,950

  • Joint filers: $383,900

Step 3: Income Above the Threshold

If your taxable income is above these limits, things get more complex. Your deduction may be limited based on:

• The amount of W-2 wages your business pays.

• The value of qualified property your business owns.

• Whether your business is a Specified Service Trade or Business (SSTB).

Step 4: W-2 Wage and Property Tests

If you’re above the threshold, your deduction is limited to the lesser of:

• 20% of your QBI, or

• The greater of:

  • 50% of your W-2 wages, or

  • 25% of your W-2 wages + 2.5% of qualified property.

Example of Limitations

Imagine your business earns $300,000 in QBI and pays $50,000 in W-2 wages. If your income exceeds the threshold, your deduction may be capped by the wage rule. Without sufficient wages or property, you could lose part—or all—of your deduction.

This is why payroll matters. EinsteinHR helps ensure your payroll is structured correctly so you can claim the maximum deduction.

What Counts as Qualified Business Income?

Not every dollar you earn qualifies for the QBI deduction. Knowing the difference is essential.

Income That Qualifies

• Net profit from your business operations

• Rental real estate income (if structured properly)

• Certain royalties and licensing fees

Income That Does NOT Qualify

• Capital gains or losses

• Dividends

• Interest not related to business activity

• W-2 wages earned as an employee

Specified Service Trades or Businesses (SSTBs)

Certain industries face additional restrictions if their income exceeds the threshold:

• Law

• Accounting

• Consulting

• Financial services

• Healthcare

If your business is considered an SSTB and your taxable income exceeds the phase-out range, your deduction could be reduced—or eliminated.

Not sure if your income qualifies? Talk to EinsteinHR today. Our partners help small businesses like yours stay compliant while maximizing tax savings.

QBI Deduction for Different Business Structures

The rules can vary depending on how your business is structured.

Sole Proprietorships

• Easiest structure.

• Income passes directly to your personal tax return.

• Eligible for QBI, but you need to watch income thresholds.

Partnerships

• Each partner claims their share of QBI on their personal return.

• Deduction depends on the partnership agreement and reported income.

S Corporations

• Income passes through to shareholders.

• Owners must pay themselves a “reasonable salary” as W-2 wages.

• Payroll reporting is crucial for maximizing QBI.

LLCs

• Flexible structure.

• Can be taxed as a sole proprietorship, partnership, or S-corp.

• QBI eligibility depends on chosen tax treatment.

Real Estate Investors

• Rental income may qualify if you meet IRS safe harbor rules.

• Requires detailed record-keeping and active management.

Choosing the right structure and managing payroll correctly can make or break your QBI deduction. EinsteinHR helps businesses structure payroll and HR systems to optimize eligibility.

The Role of Payroll, W-2 Wages, and NetPEO

Here’s the part many business owners overlook: your payroll reporting directly affects your QBI deduction.

• If your income is above the IRS threshold, your deduction depends on W-2 wages.

• Misclassified employees, contractor-heavy workforces, or sloppy payroll systems can reduce your deduction.

This is where a PEO comes in. A Professional Employer Organization acts as a co-employer, handling payroll, HR compliance, and employee benefits. By using a PEO:

• Your payroll is processed correctly.

• W-2 reporting is accurate.

• Compliance risks are minimized.

• Your QBI deduction eligibility is protected.

EinsteinHR helps you choose the best PEO for your business—so you get payroll and HR support that maximizes your tax savings.

Common Mistakes Businesses Make with QBI

Many businesses miss out on the QBI deduction because of avoidable errors:

1. Misclassifying workers – treating employees as contractors to cut payroll costs.

2. Poor payroll records – incorrect or late W-2 reporting.

3. Ignoring phase-out rules – not planning for income thresholds.

4. Failing to consult experts – assuming QBI applies without checking eligibility.

Avoid these mistakes. EinsteinHR ensures your payroll and HR records align with IRS standards so you don’t lose deductions.

How EinsteinHR Helps Maximize QBI Deduction

EinsteinHR isn’t a PEO—we’re a PEO broker. That means we evaluate your business needs and connect you with the best-fit PEO partner.

Here’s how that helps you with QBI:

• Ensures accurate payroll reporting to meet IRS wage tests.

• Provides compliance support to avoid costly mistakes.

• Helps structure benefits and HR systems in ways that support long-term growth.

• Gives you access to cost-effective employee benefits that attract top talent.

Think of EinsteinHR as your tax-saving ally. By matching you with the right PEO, we help you stay compliant, reduce administrative burdens, and keep more of your profits.

Schedule your free consultation today with EinsteinHR. Let’s maximize your QBI deduction and simplify your HR operations.

FAQs on the Qualified Business Income Deduction

1. Do I qualify if I have no employees?

Yes, but if your income is above the threshold, lack of W-2 wages may limit your deduction.

2. Can rental income qualify?

Yes, if you meet IRS safe harbor rules for real estate.

3. Can I claim QBI if I use a PEO?

Yes. In fact, using a PEO can improve your payroll compliance, which helps protect your deduction.

4. Is the QBI deduction permanent?

No. As of now, the deduction is set to expire after 2025 unless Congress extends it.

5. Does QBI affect state taxes?

It applies only to federal income taxes, but some states may offer similar deductions.

Secure Your QBI Deduction With EinsteinHR

The Qualified Business Income Deduction is one of the most powerful tax-saving tools available to small business owners. But it’s also one of the most misunderstood.

Getting it right requires:

• Correct business structure.

• Accurate payroll and W-2 reporting.

• Careful planning if your income is above the IRS thresholds.

Too many small businesses miss out simply because they don’t have the right systems in place. That’s where EinsteinHR makes the difference.

By connecting you with the right PEO partner, EinsteinHR ensures your payroll is accurate, your HR systems are compliant, and your QBI deduction is maximized.

Don’t leave thousands of dollars on the table. Schedule a free consultation with EinsteinHR today and see how much you can save.

The post Qualified Business Income Deduction: The Complete Guide for Small Businesses and How NetPEO Can Help appeared first on EinsteinHR.

Human Resources recently posted an interview with Ng on its website just ahead of the upcoming Employee Healthcare Interactive conference to be held in Singapore on October 10th.  

Ng believes that because employee health and wellbeing are so important, HR professionals are in a unique position to help workers take care of themselves. 

“While HR may take on the role of a guardian angel in providing employees with well-covered medical benefits insurance, regular health screening, and wellness programmes,” Ng told Human Resources online.  “The responsibility still falls on employees to be willing, take ownership and take actions to improve their health both physically and mentally.” 

Ng believes that being healthy can help make workers happier overall, especially when wellness activities are fun and cater to worker interests so that they are more likely to participate. At PetroChina, the company schedules regular lunch talks to create awareness and to help promote mental wellbeing. The company also issues corporate passes to help strengthen family bonding and holds team-building activities to promote cooperation among team members.

When talking about promoting health awareness, Ng often coined the phrase, ‘Healthy is the new happiness!’ “Being healthy can make a person happy,” Ng said, “but happiness may also lead to better health.”

The post HR Professionals Can Help Workers Gain Better Levels Of Health appeared first on EinsteinHR.

Personnel Today reports that a recent series of studies conducted by University College in London found that most teachers work between 47 and 49 hours per week on average with some working 59 – 65 hours. To change this, the UCL is asserting “radical action” would be required to reduce those hours.

The study was gathered from four surveys with input from primary and secondary teachers conducted from 1992 and 2017 and found that nearly one-fourth of those surveyed were working more than 59 hours per week. An estimated 40% indicated that they usually worked in the evenings after school while 10% worked over their weekend. Seven percent of those surveyed also said that they worked at night to be able to manage their current workload.

Lead researcher, Professor John Jerrim told Personnel Today that this has long been the case for those within the teaching profession and is at least partially responsible for teachers reporting feeling high levels of job-related stress and ultimately leading to poor rates of teacher retention.

UCL researchers recently released a statement saying;

“Policymakers might therefore be better off focusing on other, better evidenced approaches to improving retention, such as increasing teacher pay, improving school leadership and improving working conditions,“

The Department of Education has said that it is making every effort to reduce the number of hours teachers are being asked to work. The agency has also said that over the next three years it will push to improve working conditions and to increase the starting salaries for primary and secondary school teachers.

The post Teachers Working Far Too Many Hours According To New Report appeared first on EinsteinHR.

In an article appearing on the Human Resources Online website, columnist Aditi Sharma Kalra covered the event that was held at Aloft Kuala Lumpur Sentral. During Chuah’s presentation, she offered her company’s perspective on the importance of keeping the human element in HR. She also urged the audience that it was essential to not only hear what is spoken but to also pay attention to things that are unspoken.

Even though her company, Jewel Paymentech, utilizes a software package that helps HR and management teams to have better one-on-one communications with workers, the human element between workers, HR and management must include real communication between people.

“Tech cannot convey emotions – we cannot tell how a person is feeling, or what tone they are using in a certain word,” Chuah said, “ and more importantly, we are not aware of the impact of our words on the other person until it’s too late.”

Chuah encouraged managers to have regular one-on-ones with workers monthly and to encourage feedback that goes both ways. This way they can enhance work experience for their employees and management teams.

She encouraged HR teams and management staff to approach human resource interactions with workers on a case-by-case basis. Chuah stressed the importance of treating every worker as an individual with unique needs. She also suggested that the approach to technology should be one of a growth mindset rather than a reactive one.

The post Keeping The Human Element In HR appeared first on EinsteinHR.

In a recent survey conducted by Accountemps and reported by Robert Half, while the US is currently at almost full employment, 96% of senior managers believe that their team members are experiencing worker burnout, while 91% of workers said that they are feeling at least the beginning of burnout.

The main reason for burnout cited by managers in order were career stagnation, constant interruptions, toxic culture, and dated technology as contributing factors.

The workers themselves, on the other hand, tended to see it a little differently citing career stagnation, unmanageable workloads, a toxic culture and dated technology as all contributing to why they were feeling burned out in their current position and within their organizations.

Accountemps senior executive director Michael Steinitz recently suggested in a press release that managers can help the situation by identifying those responsibilities that can either be reassigned or put on hold as a way to alleviate worker stress and feelings of burnout. If necessary, Steinitz suggests bringing in temporary work professionals to help assist with completing projects and day-to-day tasks. “Companies that don’t take steps to prevent employee burnout could drive top performers away and find themselves in a bigger pinch,” Steinitz said.

To ignore the problem of burnout can mean higher rates of absenteeism, increased healthcare costs and lowered productivity. The problem has gotten serious enough that the World Health Organization (WTO) has declared worker burnout as an official “occupational phenomenon.”

The post Burnout Rates Above 90% According To New Survey appeared first on EinsteinHR.

In a recent study conducted by employer health management firm, Welltok, Millennial workers are willing to walk away from a job because of stress. Most workers (73%) participating in the study also feel that it is the employer’s responsibility to help them manage their stress so that they can do their jobs.

According to Welltok’s co-founder, Scott Rotermund, “Self and health are synonymous and non-negotiable for Millennials. Their health is an extension of who they are and transcends both work and personal life – taking care of their body, being mindful and financially stable,” Rotermund explained. “As a result, robust wellbeing offerings are a key component of benefit packages that today’s organizations are touting to recruit and retain Millennials.”

While employers have made some efforts toward catering to worker needs and expectations, more than 60% of workers say they are being pointed toward resources which they consider irrelevant or even outdated.

An estimated 85% of workers who participated in the Welltock survey also indicated that they would be more likely to participate in employer health management programs if those offerings improved or increased.

The post Millennials Feel Comfortable Walking From Jobs That Are Too Stressful appeared first on EinsteinHR.

Personnel Today’s Rolly Walker writes that according to a YouGov poll conducted recently, 80% of employees were disappointed in their managers. According to the findings of the survey, 55% of participants said they parted ways with the company that they worked for because of poor management practices.

One of the areas which participants felt needed the most improvement was that of follow-up meetings after annual evaluations and that those yearly or semi-annual assessments were inadequate for their continued professional growth.

To meet the continually changing landscape and demands of the modern work environment, organizations and management teams are utilizing more conventional forms of feedback between managers and workers. One-on-Ones provide an opportunity to build rapport between managers and workers. It sets a positive tone and allows both parties to be honest. Many workers who participated in the poll felt that check-ins would also be a perfect opportunity to discuss health and overall well-being with their managers.

Walker suggests that managers set objectives, give feedback, discuss projects and milestones, and on whether goals and areas of improvement are being met by having direct and meaningful conversations. An overwhelming number of employees agree (84%) that such check-ins are needed and 30% of participants went as far as to say that more frequent one-on-ones as being “very important.”

The figure was even higher among both Generation Z workers who were entering the job market (40%) and workers aged 45-54% felt that getting regular feedback was crucial on the job and helped them meet goals and grow professionally.

The post Could Follow-Up Meetings Help With Employee Retention? appeared first on EinsteinHR.

For several years the opioid crisis has been taking its toll across the entire country. Perhaps the people of Kentucky know this reality better than any other state. Kentuckians have seen what opioids can do to families, communities, and companies.

According to an article appearing on the Insider Louisville website, a recent survey conducted by the Opioid Use Harm Prevention at the National Safety Council found that 75% of businesses participating in the study reported seeing the effects of the nation’s opioid crisis.

Kentucky employers have about 106,000 open jobs at this time. Some state experts estimate that addiction to opioids keeps approximately 135,000 Kentucky residents from getting to work on a daily basis. That can cost Kentucky businesses $32,000 annually, with more than $13,000 attributed to lost employee time.

Beth Davisson, executive director of the Workforce Center for Kentucky’s Chamber of Commerce, refers to the current opioid crisis in the state as the “human capital crisis of our time,” and advises, “We really need all hands on deck.”

How the Opioid Crisis is Affecting Businesses

While there has been a decrease in the number of deaths linked to opioids in recent years, employers see the toll that addiction has taken on their businesses. Most companies say that they are unprepared to deal with the problem.

Some of how opioids affect the bottom line for business is:

• Compromised workplace safety and on the job accidents due to opioids

• Difficulty in finding qualified job candidates that can pass drug screenings

• Higher healthcare costs which are being passed to businesses and their employees.

• An aging workforce that is more likely to be prescribed opioid medications after surgery or to deal with chronic pain.

• Higher rates of employee absenteeism by both those with an addiction and the loved ones dealing with the crisis. This can result in increased productivity and absenteeism.

Dealing with the Crisis

The good news is that employers are finding ways to help mitigate some of the effects of the opioid crisis on their workers and their businesses. By taking educating employees on the dangers of opioids, and by taking an individualized approach within their HR departments, they can make it more likely for workers with a problem to come forward.

Rachael Cooper, senior program manager for the Opioid Use Harm Prevention at the National Safety Council, told the paper that, “If employees think they’re going to get fired, they’re not going to come forward.”

She suggests offering workers an amnesty day where workers can come forward and tell HR managers that they have a problem and need help. Employers and HR managers can then connect those workers with both internal and external resources and counseling to get them the help that they need.

The post The Opioid Crisis And HR appeared first on EinsteinHR.

In today’s job market where companies are searching for top talent, the number one reason why workers don’t get promoted from within is that they lack leadership potential.  Of those participating in a recent survey of business leaders in Singapore, 53% said that the ability to take the initiative and lead others in the workplace is crucial. Also cited by them were a lack of experience at 45% and lack of soft skills at 39%.

Managing Director for Robert Half in Singapore, Matthiew Imbert-Bouchard told Human Resources Online that because failing to be promoted can be a big demotivator; it’s important for business leaders to offer solutions to keep their confidence and enthusiasm up. “Involving team members in new projects and offering additional responsibilities are both solid examples of how to keep staff engaged and motivated, especially after having been denied a promotion,” Imbert-Bouchard said. 

Other ways that workers are being offered a chance to keep at it and try to advance their careers is by offering them further training to improve their skills is by shadowing team leads or managers. Some managers instead find that by calling for those workers’ input when assessing challenging situations that face their team or organization, delegating more responsibilities their way, or giving them a project to oversee are all good ways to help.

The post Leadership Potential May Be The Reason You’re Getting Passed Over appeared first on EinsteinHR.

According to an article by Samantha Chang appearing on the Human Resources Online website, getting back to a potential employer as soon as possible is important. Of those department and HR managers participating in a survey recently conducted in Hong Kong, 40% said that they expected an answer from a potential new hire in one to two weeks.

An informal survey taken at the Human Resources Online site where the article appeared, 78% indicated that one week is the most acceptable amount of time that an employer should have to wait to get an answer when a job offer is extended.

Elaine Lam, associate director of Robert Half Hong Kong, believes that in the current job market where employers are scrambling to fill vacant positions with talented workers if a potential new hire takes too long, it can lead to frustration for both workers and employers.

”When it comes to filling vacant roles, time is usually of the essence which means hiring managers are inclined to move forward with another candidate if their preferred applicant takes too long to decide,” Lam said.

The top reason cited for workers waiting so long to respond to potential employers who offer them a job is that nearly 30% of workers today are receiving multiple offers of employment. Weighing the pros and cons of each offer carefully can take time. An estimated 26% of those participating in the Hong Kong survey said that offers with non-competitive salaries gave them a reason to hesitate before accepting a job offer, while 20% said counteroffers from their current employer played a role.

The post How Long Is Too Long To Respond To A Job Offer? appeared first on EinsteinHR.

Mike Luery of KCRA Channel 3 reports that the bill known as the Crown Act became law in California on Wednesday, July 3rd. The law bans discrimination on the job and in schools over hairstyles.

Senate Bill 188 was introduced by Democratic Senator Holly Mitchell of Los Angeles. Mitchell, an African American woman who wears her hair in locks, said that she has personally witnessed discrimination over hairstyles – particularly those worn by black men and women.

During a press conference when Governor Newsom signed the bill into law, Mitchell explained the importance of the bill.

“Every Supreme Court case is going back to the ’80s when black women were trying to wear their hair braided to work in the banking industry or the airline industry, we’ve lost. Employers have won,” Mitchell said.”That’s why this bill is so critical.”

Akilah Hatchett-Fall who owns and operates the Sacred Crowns Salon in Sacramento recounts that she has heard horror stories from her clients about how they can’t get a job or be promoted from within unless they make their hair fall in line with what employers feel is more acceptable. Some women who come to Hatchett-Fall’s salon say they have felt as if they needed to take their braids off.

While the new law does make it illegal to discriminate against workers for their natural hair choices, employers may still require workers to secure their hair for hygiene and safety reasons.

Those who wish to dye their hair an unnatural color, however, are not protected under the new law.

The post Hairstyle Anti-Discrimination Law Passed In California appeared first on EinsteinHR.

According to an article appearing on the HR Dive website, a Union Pacific Railroad (UP) employee was fired after he appeared in a co-worker’s video which was posted to Facebook. The worker, who was supposed to be on FMLA leave, was shown on a fishing trip. A California district court said that in the case, Dunger v. Union Pacific Railroad, the company, was entirely justified in terminating the employee.

Previously, the worker had taken other FMLA leave days for medical reasons. When questioned about the video in which he says, “I’m not out here,” the employee tried to claim he didn’t recall whether it was him. He later admitted that it was. The worker was fired for dishonesty and for violating the company’s FMLA policy.

The U.S. Department of Labor’s Wage and Hour Division encourages that employers and managers be trained on FMLA leave. Industry experts say that a leading driver of employment law violations. In a recent case in Massachusetts, an employee was accused of abusing FMLA leave found in favor of the worker. The jury ordered the employer to pay some $2 million to the fired employee because they had failed to investigate the circumstances in good faith and presumed wrongdoing.

It is far too easy for employers to become cynical. Jeff Nowak, attorney, and shareholder at Littler Mendelson P.C., suggests implementing call-in procedures and communicating with employees and managers before, during, and after FMLA leave. He also suggests showing concern by checking in on employees who are on FMLA leave to see how things are doing is a good way to help prevent abuses.

The post Be Wary Of FMLA Fraud appeared first on EinsteinHR.

No one likes performance reviews. Managers and HR professionals mostly don’t like doing them, and employees tend to be nervous, defensive, and on edge about receiving them. Performance reviews, however, do have an important purpose. Reviews are crucial tools to help create a successful organization and to help workers manage and improve their skillsets on the job.

In an article by Srinivas Krishnamurti, Product Leader at Culture Amp which appeared on the HR Dive website, one way to improve the overall performance review process is to keep it separate from conversations about worker development.

Managers want to see their workers succeed to see that teams and organizations succeed in today’s highly competitive marketplace. During the performance review cycle, the focus on helping workers improve and learn shifts in favor of meeting a set of pre-determined milestones and compliance requirements as well as managing the expectations of the employees that they are reviewing.

Conversely, workers can experience a great deal of anxiety and defensiveness when it comes to their on-the-job performance over the previous period to justify a promotion, bonus, or potential salary increase or keeping their job. Krishnamurti believes that neither managers nor employees being reviewed are likely to be in the proper frame of mind to discuss development goals and opportunities during the annual review.

Unlike performance reviews, development discussions shouldn’t happen just once a year. Scheduling development discussions ideally should be happening once every quarter. This gives employees a chance to acquire or pick up new skill sets through direct experiences and opportunities as well as having conversations with their direct report or managers about their personal challenges or changes that need to be made. Conversations during development sessions should be structured with topics specific to each worker.

When it does come time for annual performance reviews, both workers and managers can go back over developmental conversations and goals in a way that is far less stressful and more productive.

The post Separating Performance Reviews And Development Reviews May Help Improve Performance appeared first on EinsteinHR.

According to an article appearing on the Human Resources Online website, a recent survey conducted by Kaspersky Labs found that approximately 37% of workers participating in the survey accidentally found out colleagues’ salaries, bonuses, and other confidential information. Approximately 7000 employees from several countries participated in the survey.

Kaspersky also found that less than half of those surveyed (43%) checked or changed their data preferences to limit access rights for documents that are shared on the job. Periodic checking, according to the digital security software developer, is especially important whenever a coworker changes departments or leaves the company. When that happens, access to the shared files and directories, according to Kaspersky, should be revoked immediately.

Another prevalent problem, according to the survey, is that of digital clutter. Kaspersky describes this problem as the uncontrolled proliferation and sharing of work files and documents and keeping them without the necessary precautions. The survey found that only 29% of those surveyed knew exactly what is shared in these documents or who had access to these shared resources. The prevailing attitude among employees surveyed is that the responsibility for the security of these documents and their handling was the responsibility of someone else.

The survey suggests that workers across organizations need to be educated about security and protection of sensitive data as well as how to recognize and not fall prey to phishing emails. Working with IT Managers and data security firms, businesses will be better able to keep sensitive and shared data safe and secure.

The post Study Finds Salary Information More Accessible Than Expected appeared first on EinsteinHR.

In an article at Staffing Industry.com recent reports that the 2019 Emerging Workforce Study released today conducted by Spherion Staffing LLC found that 42% of companies surveyed have noticed an increase in the number of complaints increased after #MeToo. The complaints concern not only sexual harassment but also issues of equal pay and being passed over for career advancement.

Spherion interviewed some 731 human resource professionals across a wide range of U.S. based companies and industries. Also participating in the survey were 2,115 workers of both genders. The results of the survey focused on age, gender, region, income, race, and ethnicity.

Such movements have become a powerful force to contend with in the workplace and are constantly on the minds of workers and managers alike. Of those workers surveyed, more than half said that they would stand up to their employer if they witnessed or perceived unethical or illegal behavior and would participate in a walkout. Some 66% of the millennial workers who participated in the survey said that they would stage a walkout if they saw illegal or unethical behavior on the job in order to make their point.

When asked, some Millennials indicated that they have already engaged in protests on the job. Some 41% of Millennials interviewed said that they had already participated in protests against previous or current employers.

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Robert Hicks, in a recent article for Personnel Today, believes that because HR’s function is so vital today to running a successful business that they should be involved in steering the organization. Here are some suggestions on how HR teams can become more involved at the C-suite level for their organizations.

• To gain a seat at the table, HR needs to earn its place to be there. Talk to other board-level decision makers and find out what their concerns and needs are. Once the determination is made, make it a priority to helping them solve these issues.

• Get comfortable with being uncomfortable by asking for feedback. If something isn’t right, you want to know how to make their experience better to help them solve problems and make their jobs easier.

• An integral part of being in a position of leadership is to know the business and share any insights with others on the team.

• Prioritize on objectives for the business and do what you can to make it happen. This may mean being in on client meetings and in other aspects of the company that is not strictly HR related.

Being agile in other areas of the company can help make HR a more valuable part of the organization and earn HR teams a place at the boardroom table when it comes to a decision making process.

The post HR At The Big Table appeared first on EinsteinHR.

Human resource professionals are on the frontlines of screening and interviewing potential candidates for their organization. According to a recent article appearing on the HR Technologist website, the hiring process, as well as the onboarding process, can play a crucial role in whether that employee is a positive or negative experience. Many workers judge their overall experience starting with their first interview.

A study conducted just last year by Jobvite found that almost one third or 30% of new hires left the job they were hired for within 90 days. Some 43% said that they left their positions because their daily job tasks did not fit the job description that they were given when they were hired. According to the study, 88% of those who participated said that company culture was very important, and 32% said that company culture actually drove them away.

Setting Expectations Early

It becomes the job of HR professionals to explain the company and the duties of each new hire in the earliest stages to increase the chances of that employee staying with the organization longer. A 2015 study conducted by LinkedIn found that by the time a potential employee makes it to the first interview, the majority (83%) found that a negative interview experience made potential employees change their minds about accepting a job offer. In 2017, Glassdoor found that 81% of job seekers said that praising potential job seekers during the interview process was very important and not receiving acknowledgment was instrumental for them in deciding whether or not to accept a job offer. This is most prevalent among millennial applicants.

Onboarding for Success

Once a job offer is made and accepted, HR can help new hires succeed by setting them up to succeed within the company. When workers receive adequate onboarding where both HR and department managers also participate, studies found that those workers were 3.4 times more likely to consider their experience a positive one. Such engagement during the earlier stages helps workers to become more energized on the job. For those workers with a positive view of their onboarding process, studies found that it was 2.3 times more likely for that worker to view their new role as better than they expected.

The post Setting Employee Expectations Starts From The First Interview appeared first on EinsteinHR.

Priya Sunit recently reported on the Human Resources Online website that a study was conducted by malware and antivirus software firm, Kaspersky Labs from December of 2018 to January of this year. The study surveyed 7,000 adult workers from 14 countries which included the United States, the UK, France, Spain, Germany, Italy, Brazil, China, Mexico, Japan, South Africa, Russia, Malaysia and Turkey that found that through a simple search, employees were able to access files where they should not have had access.

This access could allow them to edit, delete or damage, share or even use personal information of colleagues when going to work for a competitor or worse, to release the information online. Such information leaves workers and organizations open to cyber attack and can be sold on the dark web.

The survey found that many workers have disturbing attitudes when it comes to accessing and storing such sensitive information.

• 80% of workers participating in the study said that they do not feel responsible for ensuring emails, documents, and other files.

• 72% of the workers surveyed said that they regularly stored documents which contain personal information or sensitive data at work.

• 37% of the participants indicated that they have had access to the salaries, bonuses, and other personal data while at work.

The study also indicated that 33% of the study’s participants admitted to having access to files at a previous workplace. For workers who leave the job on a wrong note, such access could prove to be problematic.

By working together, HR professionals and IT departments can help to ensure better security of sensitive data, even as more and more of it becomes digitized. Such security precautions can be accomplished by stressing to all employees the importance of data security and their responsibility in ensuring it at every level.

HR departments should have information such as personal data of employees and other sensitive data in a safe folder that has highly restricted access. Workers should be encouraged to make backups of confidential and personal information and keep it in a secure place. Companies are also encouraged to consult with a cybersecurity firm to help determine best practices for their own organizations.

The post Take Care When Digitizing Employee Data appeared first on EinsteinHR.

Conversely, HR Dive reports that graduating students who have degrees in non-STEM fields like communications, however, are a bit more anxious about their future employment prospects.

According to a study conducted by talent acquisition company Yello, Generation Z workers who are entering the workforce are unlike their Millennial counterparts; their experience with employment recruiters has the largest impact on whether or not to accept a position.

The study also indicated that almost half or 46% of Gen Z workers surveyed have applied for a position via mobile devices as compared to Millennials at 38%. This new group of young workers is looking to integrate technology and face to face communications in the workplace. This has caused some concern for managers as to whether their expectations will make them more difficult to manage.

Gen Z graduates are keenly aware that they are in demand in today’s employment environment. Some feel that once they graduate, what they don’t know already, they will learn on the job. Dell Technologies recently released a study indicating that companies and organizations need to strengthen their soft skills in order to attract and retain these workers who are entering the workforce.

Three-quarters of Gen Z workers responding to the Dell survey had the expectation that they should be promoted after one year in the first position that they are hired for. Young women from this demographic seem to be most confident about their skills being in demand and the needs of employers to improve diversity in the workforce.

The post Non-STEM Graduates More Concerned About The Future appeared first on EinsteinHR.

According to a recent article appearing on the HR Dive website, approximately half of workers surveyed by research firm, Sitel, indicated that they believe their employers penalize them for not having the right skills. One-third of those participating in the study felt that if they asked their employer for training it would make them appear incompetent. One third also believe that their employer doesn’t offer training to help them advance in their careers or even understand skills gaps because managers downplay the importance of training and development in the workplace.

In line with this belief is an earlier article by Rita O’Donnell also appearing on HR Dive that less than 30% of companies offer training for their workers to help them meet changes in the marketplace and organizations that they work for.

This runs counter to Sitel’s findings which indicated 88% of those workers surveyed believe that it is important that employers have formal training programs in place. An estimated 95% of the study participants believe that employee experience also affects the experience of their organization’s customers. HR professionals can play a vital role by interacting with work teams to determine what training is most needed for each area of the organization. They can also help by encouraging workers to teach each other while on the job.

The post Employees Not Asking For Training To Avoid Looking Incompetent appeared first on EinsteinHR.

According to an article appearing on the HR Dive website, Deloitte issued a report indicating standard performance reviews that focus on past performance rather than how workers can achieve goals and make improvements are failing them.

The report issued by Deloitte, entitled “Performance Management Solutions: Market Primer” indicated that companies which utilized technology into their workflows showed 5.5 times more ability to develop leadership in workers and 4.3 times higher in terms of change in the agility of their employees.

The key, according to the report emailed to HR Dive, is to focus on worker goal management from multiple sources. According to the data provided by Deloitte, companies which focuses on future worker improvements performed financially 92 times better than organizations still utilizing the standard performance review system.

While technology is probably not the end-all-be-all to every organization or situation in the workplace, technology can help increase productivity goals as well as give workers and potential new-hires more immediate feedback.

This immediate feedback would potentially mean more frequent reviews of workers, both management and the employees themselves. Both managers and workers have found that this gives all parties more timely and effective feedback, which is more efficient and relevant than what a regular annual standard performance review provides.

The post Standard Performance Reviews Actually Hurt Workers Improvement Chances appeared first on EinsteinHR.

According to an article by Valerie Bolden-Barrett appearing on the HR Dive website last week, research has shown that managers or supervisors who demonstrate good, ethical leadership can diffuse stressful or even harmful situations in the workplace.  Such managers tend to engage workers by discussing work-related worries and problems with them and direct them to react positively in negative situations.

A recent study conducted by San Diego State University’s management professor, Dr. Gabi Eissa in coordination with University of Wisconsin management professor, Dr. Rebecca Wyland showed that, “managers who demonstrate ethical leadership through two-way communication, positive reinforcement and emotional support not only mitigate this type of employee behavior but also helps alleviate stress in the work environment.”

The Dive reports that conflict management is one of the most desirable soft skills for managers. This is followed by communications skills, stress management, customer service, emotional intelligence, and other people-oriented qualities.

Ethical managers, according to the study, can help when workers home-life situations spill over into their work-lives and cause what the professors deemed as ‘hindrance stress.’ Hindrance stress can cause workers to view the demands of their work as a hindrance to their own goals and can deplete their ability to exercise self-control, causing them to lash out at others. Well-trained managers who demonstrate the soft skill of conflict management and demonstrate ethical qualities can help workers make positive changes for themselves and others within the workplace.

HR Dive warns that human resource professionals should be careful that managers are not spending most of their time resolving conflicts.  They can help managers do their jobs better by providing them the tools that they need to encourage a culture of both learning and cooperation at work.

The post Supervisors Possessing Conflict Management Skills Can Help Mitigate Office Stress appeared first on EinsteinHR.

HR Dive’s Riia O’Donnell reported that two years ago, PwC launched a mobile accessible, digital app which employees can access anonymously and get results in 15 minutes. The app can then refer the worker to resources both within the company itself or those which are external in order to improve their skills.

According to Rod Adams, PwC’s lead recruiter, “We believe workers need to move from awareness to intelligence at their own pace and when they’re ready to learn,” he said in the interview.

PwC launched a limited pilot program within the company asking workers if they would be interested in receiving training and becoming a resource for their teams within the organization. No experience was necessary in order to participate. The offer was successful with more than 3,500 PwC employees volunteering. The company selected 1,100 from a diverse pool of workers who showed interest in the training to be a part of the initial launch of what Adams and his team dubbed “The Accelerator Academy”.

The workers participating in the Accelerator Academy were trained for a period of one month with the first two weeks being a program of total immersion followed by two weeks of 10 hours of work. Adams was pleased to see that the Accelerator Academy boasted a 95% completion rate for the initial launch of the program. This promising approach to upskilling PwC’s workforce has been so successful that the company expects to reinitiate it again later this spring.

The post PwC Uses App To Help Upskill Company appeared first on EinsteinHR.

According to an article appearing on the Personnel Today website, this equates to approximately 5 million UK workers performing more than 2 billion hours of work that they weren’t paid. Of those underpaid workers, TUC found that teachers and educational professionals were most likely to work without compensation by working on average an extra 12.1 hours per week.

While most people are happy to work a little overtime without compensation to get the job done on occasion, TUC general secretary Frances O’Grady said that it’s “not acceptable” for employers to expect employees to work extra hours for free. O’Grady feels that far too many employers are taking advantage. The findings have led to TUC leadership proposing new rights for workers and holding employers who break the current UK working time rules to be held accountable before a tribunal.

“Bosses who do steal people’s time should face consequences,” O’Grady said.

The TUC study found that in the UK men worked just under a billion hours of unpaid overtime while in comparison, women in Britain worked 0.9 billion. Also, one in four public workers was likely to work unpaid overtime while one in six workers in the private sector worked overtime without compensation.

The post Over 2 Billion Hours Of Unpaid Overtime Reported In The UK appeared first on EinsteinHR.

Earlier this week, SHRM hosted its Society for Human Resource Management Employment Law & Legislative Conference in Alexandria, Virginia. One of the speakers at the event, Lauraine Bifulco, President of Vantaggio HR said that there is an erroneous notion in the workplace which allows those who have been approved for and who carry a medical marijuana identification card (MMID), to be under its influence even while on the job.

“This is wrong,” Bifulco said during her presentation. Employers are not legally required to accommodate workers who do use marijuana, even for medical purposes. Further, there are legal considerations for those businesses that do allow it.

Currently, 13 states have passed legislation which prohibits employers from discriminating against workers who have an MMID card – even if a company has a strict drug-free policy in place. Federal law still says that marijuana use is illegal, regardless of what state statues may have been passed. Because of the prohibition at the federal level, the ADA or Americans with Disabilities Act does not include any mention of legalized cannabis use.

When asked whether an employer can fire a worker who has an MMID card, Bifulco, said, “Maybe.”

For the consideration of those organizations that are currently dealing with the issue, Bifulco cited some statistics at the beginning of her presentation:

• There are now 1.2 million authorized users of cannabis or marijuana in the United States.
• In the workplace, researchers have indicated that employees who used marijuana had an absenteeism rate of 75% higher than those who did not use the substance.
• Employees who used cannabis were responsible for 55% more industrial accidents and had 85% more injuries on the job than those workers who tested negative for the use of the substance.

While cannabis use has become widely more accepted within our society, employers and HR professionals are still have many things to consider which surrounds the issue of marijuana use by workers.

The post Human Resource Professionals Try To Decide How To Handle Medical Marijuana In The Workplace appeared first on EinsteinHR.